MSD presentation: pooled contracting, road costs and a $86,000 MET option for Emigration Canyon

Emigration Canyon council members pressed MSD staff on why local roads and justice‑court costs are pushing the community into a structural deficit while MSD officials said pooled contracting and bond financing let small members complete large projects faster.

At a work meeting, a presenter for the Greater Salt Lake Municipal Service District (identified in the meeting packet as Marla, general manager) described the MSD’s responsibilities, funding sources and organizational structure and said MSD was created to help unincorporated communities without a strong sales‑tax base. “We were able to get that done in a year,” the presenter said of the Emigration Canyon road project, contrasting pooled MSD contracting with the decade‑long local saving that would otherwise be required.

Why it matters: Emigration Canyon, Copperton and some other members show operating deficits on MSD reports while larger members such as Magna and Kearns run surpluses; MSD officials said timing of capital projects and bond proceeds can produce apparent cross‑subsidies. Council members repeatedly pressed whether it is fair for canyon residents to shoulder the cost of roads that are heavily used by visitors.

Councilmember (Speaker 2) said: “To think that that burden should be carried by the residents is wrong,” arguing the canyon functions as a public destination whose upkeep benefits non‑residents. MSD staff responded that the county has not accepted that argument and that the MSD’s formation was explicitly intended to spread costs across members that lack a sales‑tax base.

Funding and accounting details: MSD staff explained that the district is funded by member sales tax, class B and C road funds, fees and specific grants; although the MSD has statutory authority to assess property tax it does not do so. The presenter described the accounting platform used to separate funds by city and project so, for example, Copperton’s cemetery and Magna’s MET proceeds are tracked in distinct funds.

On local revenue options, the presenter said Rocky Mountain Power is already set up to collect a Municipal Energy Tax (MET) for newly incorporated entities and estimated that implementing the MET in Emigration Canyon would bring “about $86,000” a year. The staff advised councils they may earmark MET or other reserves for specific capital projects subject to statutory reserve limits.

Costs driving deficits: The presenter and members agreed that roads account for the largest share of local expenditures, citing collapsing storm drains, pavement stabilization projects, and other large maintenance items. Justice‑court charges were also flagged as unusually high on MSD financial lines. MSD staff suggested options such as approaching neighboring jurisdictions or the state Administrative Office of the Courts to examine caseload or service arrangements, but said MSD cannot itself create a justice court.

What’s next: Staff committed to provide clearer quarterly financial packets and to email the presentation materials to members. Council members asked for more detailed cost breakdowns and follow‑up on justice‑court and grant appeals to the county for tourism‑related support for canyon facilities.

Ending note: The work session adjourned after members agreed to correct and expand prior minutes and to schedule follow‑up items for future meetings.