Emigration Canyon faces six‑month budget shortfall as officials weigh energy, franchise taxes and state help

Emigration Canyon’s service district recorded a large operating shortfall in the six months ending June 30, 2024, MSD staff said at a workshop, prompting officials to consider new local taxes and state funding to cover maintenance costs driven largely by non‑resident use of canyon roads.

At a June workshop presentation, an MSD presenter summarized the six‑month financials and said the canyon’s operating receipts — from sales tax, permitting fees, Class B and C road funds, grants (including ARPA and COVID relief) and interest/fines — were modest relative to operations and capital costs. Unidentified Speaker 5 told the board the six‑month collection for Emigration Canyon was roughly $325,000 and that direct public‑works and operations charges for the same period totaled nearly $1.1 million.

That mix left the district with a reported shortfall of about $904,000 for the six‑month snapshot after capital interest and bond project charges were included. Speaker 5 said the district is effectively being subsidized by unincorporated county revenues and that removing that subsidy would require legislative action or an agreement by the MSD board of trustees.

“the takeaway for me is that we are operating in a negative condition,” Robert Pinot (speaker 7) said during the meeting, noting that recreational visitors and commuters increase wear on canyon roads and therefore maintenance obligations for the local district.

Board members and staff discussed three revenue pathways to reduce the deficit: implementing a municipal energy tax (MET) on energy end users, adopting a utility franchise tax, or seeking additional state funding targeted to jurisdictions that serve a high volume of out‑of‑jurisdiction users. Participants clarified that a MET is charged to end users, while franchise taxes are levied by suppliers and typically passed through to consumers; the two taxes are separate and can be enacted via one ordinance or two separate ordinances, depending on the board’s choice.

Staff noted that Emigration Canyon had not been collecting MET revenue while other nearby municipalities (Brighton, Magna) had implemented such taxes. Participants emphasized that if they adopt a new tax, they must decide whether new revenues would flow into the MSD’s shared pool or be kept in a separate Emigration Canyon account for projects and administration; staff said MET/franchise collections can be deposited to a designated Emigration Canyon account if the district chooses.

The presentation also compared full‑year results for prior years: staff said the full 2023 year showed higher total income and a smaller shortfall (about $700,000), while 2022 included a larger overlay/public‑works year (~$1.4 million) that drove expenses up. Speakers cautioned that year‑to‑year volatility is common because large road projects occur unevenly across fiscal years.

Officials asked for additional documentation and accounting clarity. Staff agreed to distribute the live spreadsheet used in the presentation and to provide a memo that identifies where fund balances and contributions are recorded in the MSD budget and who to contact for lobbying efforts. Speaker 5 identified internal staff and named contacts (Cameron and Daniel Torres) who could help plan state outreach.

A motion to close the workshop portion was made and seconded; the board voted to adjourn the workshop and reconvene later in the evening. The MSD staff said follow‑up materials and the requested fund‑balance detail would be provided to board members the next day.

What’s next: board members requested a memo and the underlying spreadsheet, and staff signaled plans to examine tax‑implementation ordinances and potential state funding options before the next workshop meeting.