HolladayDigest

• Stormwater Fee Review

  Presentation by Fred Philpot (LRB Public Finance Advisors) on the Storm Financial Sustainability Plan: Updated Scenario Analysis, including current ERU rate, coverage shortfalls, and three rate increase scenarios

• Tentative Budget Overview

  Presentation by Finance Director Christian Larsen covering all fund expenditures, revenue sources, personnel costs, and major expense changes for Fiscal Year 2026

• General Fund Revenue Sources

  Sales tax trends, property tax, franchise tax (Enbridge), building permits, and Millcreek reimbursement

• Stormwater Fund

  Presented by Jared Bunch; status of bond proceeds and fund sustainability

• Parks

  Presented by Jared Bunch; capital projects including Knudsen Park and parking lot improvements

• Public Services General Fund

  Presented by Jared Bunch; Salt Lake County contract services, snow plowing, personnel, and operations

• Capital Projects

  Paving projects, vehicle replacement, and Spring Lane/City Hall lease and utility costs

No formal decisions or resolutions were adopted at this work meeting. The meeting was deliberative in nature, focused on budget discussion and scenario analysis. Key directional conclusions included:

• The City Council acknowledged a need to act on stormwater rates, as the Storm Enterprise Fund is not currently meeting its coverage target (set at 1.5x)

• Direction was given to Fred Philpot to refine the non-residential ERU base and return with final recommendations following Council feedback

• It was noted that Spring Lane and City Hall remodel line items were intentionally excluded from the Tentative Budget pending clarity on the Federal earmark; a budget amendment would follow once clarity is obtained

• Two additional items identified as needing to be added to the Tentative Budget:

  • Central Wasatch Commission (CWC): $25,000
  • Metal banners: $30,000

• 1

  Action ItemRefine non-residential ERU base; verify all parcels are being assessed for the stormwater feeFred Philpot / City Staff

• 2

  Action ItemCommunicate any budget-related changes to Fred Philpot for modelingCity Staff (directed by Mr. Philpot)

• 3

  Action ItemPrepare Final Rate Study for stormwater fees and return with final recommendations to City CouncilFred Philpot, LRB Public Finance Advisors

• 4

  Action ItemSchedule public hearing on stormwater rate change (following final recommendations)City Staff / City Council

• 5

  Action ItemPresent UPD and UFA budget discussions at the May 15, 2025 City Council MeetingCity Staff / Gina Chamness

• 6

  Action ItemAdd CWC ($25,000) and metal banners ($30,000) to the Tentative Budget documentChristian Larsen / Finance

• 7

  Action ItemAmend budget for Spring Lane and City Hall remodel once Federal earmark clarity is obtainedCity Staff

• 8

  Action ItemIncorporate final Public Works contract amount (pending recent Salt Lake County meeting) into Tentative BudgetChristian Larsen / Jared Bunch

• Stormwater ERU Discrepancy

  The original stormwater analysis projected approximately 4,000 commercial ERUs; actual data from Rocky Mountain Power revealed only approximately 2,300 commercial ERUs, a significant variance that has affected fund revenue projections. Refinement of the ERU base was identified as a priority.

• Three Stormwater Rate Scenarios Presented

  • Scenario #1 (Baseline): No rate change; current $6.50/ERU rate. Coverage targets are not being met.
  • Scenario #2: One-time 30% upfront rate increase in 2027, bringing rate to $8.50/ERU. All targets met. Note: Salt Lake County average is $8.00/ERU.
  • Scenario #3: Annual 5% increase beginning FY2026 — $6.83 (2026) → $7.20 (2027) → $7.60 (2028) → $8.00 (2029) → $8.40 (2030), with $8.50 suggested as a target endpoint. Holladay would be approximately average among area cities.

• Mayor Dahle's Position

  Expressed support for ensuring all properties are paying their fair share of the stormwater fee, and suggested a gradual increase could run concurrently with an ERU audit without delaying implementation.

• Council Member Emily Gray's Question

  Asked whether most cities choose a gradual increase. Mr. Philpot confirmed that gradual or hybrid approaches are most common, as they are easier for residents to absorb.

• Sales Tax Trend

  A notable leveling-off of sales tax revenue has occurred in FY2024 and FY2025 following significant growth between 2021–2023. The Tentative Budget reflects a conservative sales tax projection.

• Franchise Tax (Enbridge)

  A significant falloff in revenue from this line item has occurred; budget adjusted downward to reflect a more conservative estimate.

• Personnel Costs

  A 3% COLA is included in the FY2026 budget, representing an increase of $72,559. Approximately 30% of compensation is in benefits; ~89% of expenditures are for staff and ~10% for elected officials.

• Capital Projects Highlights

  • Paving projects: $565,000 (notable increase)
  • Vehicle replacement: $120,000
  • Knudsen Park: $150,000 plus parking lot improvements (Council feedback requested; related to a parcel acquired adjacent to The Cotton Bottom — minutes end mid-sentence)

• Spring Lane / City Hall

  Tentative Budget includes lease payment of $37,500 and utilities of $35,000. Remodel costs excluded pending Federal earmark status.

• Special Elections

  Listed in budget at $75,691.

• Parks Playground Resurface

  Listed at $45,000.

• Minutes Note

  The provided document ends abruptly mid-sentence during discussion of Knudsen Park parking. The summary above reflects all available content.

Summary prepared based on available minutes. Incomplete document noted — final sections of the meeting are not captured.