CRA sets public hearing for budget amendment reflecting higher tax-increment and housing transfers

At a limited Community Reinvestment Agency meeting on May 5, the board voted to set a public hearing on May 12 to consider CRA Budget Amendment No. 3 for fiscal year 2025–26. The staff presentation said the amendment reconciles final tax-increment receipts, other unexpected revenues, and associated obligated expenses before the FY27 budget process.

Danny, the CRA staff presenter, described the amendment as a year-end true-up: "It's a function of after the agency receives its final tax increment from the county, we then are obligated to make any adjustments within our budget that we are obligated to or a function of that amount of increment we get." He said most discretionary amounts that are not allocated will roll into a transition holding account and be proposed as part of next year’s comprehensive FY27 budget.

Staff showed that higher tax increment was the largest driver of the increase in actual revenue versus the current budget and that other revenue sources—interest receipts and loan payoffs—also contributed. Staff flagged declines in program income interest and corresponding reductions in operations funding, while noting that several housing and project-area funds realized positive variances.

The presentation also explained accounting transfers included: (1) an accounting adjustment related to the Salt Lake City library, and (2) a transfer of CBD housing funds to the citywide secondary housing fund because CBD had no project applications within the CBD project area to absorb those funds. Danny said of housing funds: "The primary housing fund is a function of what the statutory obligation is for project areas that have to contribute housing funds, so that goes into primary housing. Anything over and above that that a board allocates towards housing would then go into the secondary housing fund." He emphasized that once money is placed into either housing fund "it will forever revolve within affordable housing."

The board placed the amendment on the consent agenda and approved setting the public hearing date; minutes record the motion as moved by board member Pete Thoreau and seconded by board member Young. The motion passed unanimously with one council member absent. The budget amendment and the transition holding account carryover will be presented again as part of the FY27 budget discussions.