Provo council declines to add to local disaster fund amid FY24 shortfall

The Provo City Council on Tuesday reviewed fiscal 2024 carryovers and voted not to contribute additional carryover dollars to the Provo Local Government Disaster Fund this year.

Andrea Wright, the city’s budget analyst, presented the carryover list and explained how departments submit requests to move unspent operating budgets and encumbered purchase orders into FY2025. John, a city finance staff member, told the council FY24 was “a little bit of a challenging year” and said, “We were down about 2 and a half million.” He credited payroll savings and other operating reductions for producing roughly $3.2 million in savings that offset much of the shortfall.

Councilors asked how the local disaster fund works and whether participation levels would qualify the city for lower-rate state loans. John said the account is an interest-bearing state-designated pool that the city cannot access except under a declared disaster and noted Provo’s annual contributions fall below the state’s thresholds for the most favorable loan tiers.

After debate over fiscal prudence versus the long-term value of the fund, one councilor moved that the city not contribute to the disaster fund this year; the motion was seconded and carried 6–1. The chair announced, “That passes 6–1.” Councilor Whipple cast the lone no vote; other recorded yes votes included Garrett, Hamlin, Bogdan, McKay, Hoban and Christiansen.

The administration emphasized it will continue monthly revenue monitoring and return to the council if projections change. John said staff will provide the council with updated distribution numbers for early FY25 receipts and continue monthly projections to inform midyear decisions.

Next steps: the carryover list will proceed to the mayor for signature and the council will be informed if staff recommends any changes based on upcoming revenue reports.