Council approves clarification to Lone Peak Public Safety District ILA; debate continues over allocation options

Highland City Council approved a first step amendment to the interlocal cooperation agreement (ILA) that governs the Lone Peak Public Safety District, clarifying how the board may recommend changes to the funding allocation formula and that any formula change does not take effect until both member city councils approve it.

City Administrator Erin Wells said the amendment was the first of a two‑step process: tonight’s vote clarified the process for recommending and approving an allocation change; the Lone Peak board will meet the next morning to consider formula alternatives, and the councils will take final action separately. Wells described three options under consideration to move from the current allocation to a taxable‑value pro‑rata formula: an immediate transition (option 1), a two‑year phased transition with partial bridging (option 2), and a hybrid that uses the district’s fund balance to smooth impacts in the near term (option 3).

Council members pressed staff on timing, budget impacts and fund‑balance availability. Staff and finance representatives reported the district had roughly $3.4 million in fund balance, with the administrative portion around $800,000; staff said planned capital needs (ambulance, vehicles) and expected operating costs were factored into calculations. Several council members said they preferred option 1 or the hybrid option 3 over a buy‑in that would shift recurring costs to Highland.

Councilmember Scott moved to approve the ILA amendments before discussion of specific formula options; the motion passed 5–0. Council directed staff and Lone Peak board representatives to continue negotiating formula details and to return with final recommendations for council consideration.