Provo stopped earmarking a 1% utility transfer for roads in its 2026 budget

Since 2013, Provo has been transferring 1% of utility revenues from its enterprise funds to the general fund for the maintenance and construction of roads, the city's fiscal 2027 adopted budget says. ^[1]

"With these new funding sources available for roads and the current needs in the General Fund," the budget says, "it was determined to not designate the 1% transfer specifically for roads in the 2026 Budget." ^[1]

The road taxes cited

The budget says state legislation established a County Option Highway Transit Tax effective July 2019, which provides approximately $2.5 million annually for roads. ^[1]

It says a County Public Transit Tax, established by state legislation effective January 2024, provides approximately $1.1 million annually for roads. ^[1]

The budget's description of the change does not give a dollar amount for the 1% transfer or name a new use for it. ^[1]

The fiscal 2026 proposal

At a May 20, 2025 work meeting, Finance Division Director Dan Follett told the council that proposed transfers from the city's utility enterprise funds to the general fund for fiscal 2026 totaled approximately $18.1 million, according to the minutes. ^[2]

That included utility rate transfers of approximately $16.36 million, reflecting 12.5% of utility revenues, and administrative overhead transfers of around $1.71 million to cover centralized services such as legal, human resources, IT and finance, the minutes say. ^[2]

Follett described the rate transfers as a dividend for city taxpayers' investment in city-owned utility infrastructure and said the transfers help fund police, fire and parks while contributing to lower property tax rates. ^[2]