Council adopts fiscal 2022 budget with no tax rate increase, hires investment adviser for city's $66 million in reserves
June 22, 2021, 7:00 p.m. · American Fork City Hall, 31 N. Church St.
The American Fork City Council adopted the fiscal 2022 budget and accepted the county's certified property tax rate, budgeting $583,638 in property tax for bond payments; no one spoke at the budget hearings. It hired Moreton Asset Management to invest part of roughly $66 million the city keeps in the state treasurer's pool, and asked residents to cut lawn watering by a third amid drought. The council also accepted a $150,000 state grant for Boat Harbor improvements and approved this year's PARC tax grants.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| Notice of acceptance, Rockwell Ranch Block 1 Phase 1 public improvements, 1100 West 350 South | Approved · 5-0 |
| Ratification of payments June 2-15, 2021, and purchases over $25,000 | Approved · 5-0 |
| Water conservation measures resolution | Approved · 5-0 |
| Fiscal 2020-21 PARC tax disbursements | Approved · 5-0 |
| Investment advisory contract with Moreton Asset Management | Approved · 5-0 |
| Economic development services agreement with American Fork Chamber of Commerce | Approved · 5-0 |
| Fiscal 2020-21 budget amendments | Approved · 5-0 |
| Fiscal 2021-22 budget adopted | Approved · 5-0 |
| Certified tax rate for fiscal 2022 | Approved · 5-0 |
| Revised fund balance policy | Approved · 5-0 |
| $150,000 Utah Outdoor Recreation Grant for Boat Harbor improvements | Approved · 5-0 |
| Utah Lake Commission MOUs for life jacket loaner station and lakeside camera | Approved · 4-0 |
Agenda, item by item
Item Consent 4 · Subdivision
Notice of acceptance, Rockwell Ranch Block 1 Phase 1 public improvements, 1100 West 350 South
Approved · 5-0
Issued notice of acceptance for public improvements.
Item Consent 5 · Budget
Ratification of payments June 2-15, 2021, and purchases over $25,000
Approved · 5-0
Routine consent ratification; itemized list not in minutes.
Item Action 1 · Roads and utilities
Water conservation measures resolution
Approved · 5-0
Adopted Resolution 2021-06-21R asking residents to cut pressurized irrigation use by a third by limiting run time per zone on allowed watering days (the '15/30' message), with extra watering allowed for new lawns and trees. Mayor Frost said residents had already saved 270 million gallons over last year and the city had received 40 calls over a weekend about overwatering; councilmembers said residents were confused whether the 33% cut was in addition to earlier requests and called for public education and enforcement.
- Resolution 2021-06-21R
- Drought year; city and large water users committed to cut back
Item Action 2 · Parks
Fiscal 2020-21 PARC tax disbursements
Approved · 5-0
Adopted Ordinance 2021-06-29 approving the PARC Tax Advisory Board's grant recommendations and authorizing the city administrator to sign disbursement contracts. Councilmember Shelton proposed splitting the choir funding $20,000 to the Timpanogos Chorale and $10,000 to the Timpanogos Arts Foundation's singers, after TAF's choir went unfunded; the rest of the council stuck with the board's recommendation, and Shelton voted yes.
- GrantAmount not given
- Ordinance 2021-06-29
- PARC Tax Board chair: Brian Thompson
Item Action 3 · Contract
Investment advisory contract with Moreton Asset Management
Approved · 5-0
Hired Moreton Asset Management LLC as the city's certified investment advisor under the new investment policy. Finance Officer Anna Montoya said six firms on the Utah Money Management Council's approved list were solicited, two responded and were interviewed. Most city cash, about $66 million, sits in the state PTIF pool and about $4 million in the general bank account; the city plans to move about half the PTIF balance into a laddered portfolio of individual bonds in phases. Councilmember Shelton asked for quarterly reports to the council.
- ContractAmount not given to Moreton Asset Management LLC
- Firm representative: Jason Williams; firm manages over $2 billion mostly for Utah governments
- Fee rates in packet; not stated in minutes
Item Action 4 · Contract
Economic development services agreement with American Fork Chamber of Commerce
Approved · 5-0
Renewed the city's contract with the Chamber of Commerce for economic development services for July 2021-June 2022, with minor changes, subject to the chamber board's approval. Councilmember Shelton asked the chamber to act as a liaison to local businesses on downtown design standards and a planned downtown business alliance.
- ContractAmount not given to American Fork Chamber of Commerce
- Contract amount not stated in minutes
Item Action 5 · Budget
Fiscal 2020-21 budget amendments
Approved · 5-0
Adopted Resolution 2021-06-22R amending the budget for the year ending June 30, 2021. No one spoke at the public hearing. Staff said a temporary part-time secondary water enforcement position is in the FY2022 budget.
- Resolution 2021-06-22R
Item Action 6 · Budget
Fiscal 2021-22 budget adopted
Approved · 5-0
Adopted Resolution 2021-06-23R, the city budget for July 1, 2021-June 30, 2022, a process that began in February. No one spoke at the public hearing. Total budget not stated in minutes.
- Resolution 2021-06-23R
Item Action 7 · Taxes and fees
Certified tax rate for fiscal 2022
Approved · 5-0
Adopted Resolution 2021-06-24R accepting the Utah County Auditor's certified tax rate for general operations and tort liability (no property tax increase) and setting debt service (interest and sinking fund) property tax revenue at $583,638.
- Budget$583,638
- Resolution 2021-06-24R
Item Action 8 · Budget
Revised fund balance policy
Approved · 5-0
Adopted Resolution 2021-06-25R matching the state's new maximum general fund balance and listing uses for excess reserves: transfer to capital projects (including roads), one-time spending and prepaying debt. Councilmember Shelton wanted excess money to go only to capital projects, given low interest rates and a backlog of capital needs; the others preferred flexibility, and the policy passed as written.
- Resolution 2021-06-25R
Item Action 9 · Parks
$150,000 Utah Outdoor Recreation Grant for Boat Harbor improvements
Approved · 5-0
Accepted a $150,000 grant from the state Office of Outdoor Recreation toward the American Fork Boat Harbor master plan; funds must be spent by May 2023. Mayor Frost said about $300,000 is available so far, perhaps enough to resurface the parking lot, and the city hopes to match it with county and Utah Lake Commission grants. Councilmember Shelton urged a wetland delineation study alongside the neighboring Kester property.
- Grant$150,000 to Utah Office of Outdoor Recreation
- Deadline to spend: May 2023
- About $300,000 available in total per Mayor Frost
Item Action 10 · Parks
Utah Lake Commission MOUs for life jacket loaner station and lakeside camera
Approved · 4-0
Approved agreements for a Utah Lake Commission life jacket loaner station and a lakeside camera at the Boat Harbor; the commission owns and maintains the camera and the city provides internet. Councilmember Shelton asked for indemnity language and warning signs. Councilmember Carroll recused; the minutes do not say why.
- Mayor Frost chairs the Utah Lake Commission
What residents said
Overgrown flood ditch along Pacific Drive, 100 West to 300 WestFaulty retaining wall and sewer line encroaching on farmland next to TOD development on 200 SouthSinkholes on 200 South
No one spoke at the hearings on the fiscal 2021 budget amendments or the fiscal 2022 budget. Richard Mecham asked who must maintain the overgrown flood ditch along Pacific Drive from 100 West to 300 West and other untended areas. Tyree Lamph, a 200 South landowner next to TOD-area development, said a contractor ran a sewer line 15 feet into his field, spilled dirt and gravel into his wheat, and built a retaining wall that a geotechnical report he paid for says will fail within a year; he said neither the city nor the contractor responded and asked the city to pull permits, and noted sinkholes on 200 South. Councilmember Shelton asked staff for a report.