Council previews $103 million budget, leans against property tax increase this year
June 1, 2021, 4:00 p.m. · City Administration Building, 51 E. Main St.
In a work session, the American Fork City Council reviewed a tentative fiscal 2022 budget of $103 million in spending against $74 million in revenue, drawing down reserves for water and utility projects, with 18.5 new positions mostly in public safety. Most council members agreed to put off a property tax increase for a year despite Councilmember Rob Shelton's warnings about the general fund's reliance on sales tax. Staff said 200 South construction bids could go out in August if funding is secured.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| Fiscal 2022 budget book review | Discussed |
| Fiscal 2022 strategic plan update | Discussed |
Agenda, item by item
Item 1 · Budget
Fiscal 2022 budget book review
Discussed
Finance Officer Anna Montoya presented the tentative fiscal 2022 budget: $74 million in combined revenue and $103 million in spending, with fund balances drawn down for utility and water capital projects; a $26.33 million balanced general fund; and 18.5 new positions, mostly public safety (police: three officers/detectives). The ending general fund balance is projected at $10.1 million after the state raised the cap to 35% of revenue; Councilmember Shelton wanted about $600,000 above the cap moved to roads, and staff said excess goes to the capital improvements fund after the audit. The council debated a part-time recreation position to rent fields and sell sponsorships, a Fitness Center expansion study, and a property tax increase: Mayor Frost and most members favored waiting a year, while Councilmember Shelton urged a plan, noting 65% of general fund revenue comes from sales tax. Council members discussed asking the PARC board to help cover operating costs, and staff said the city hit $3 million for roads this year.
- Budget$103.0 million
- Budget$26.3 million
- Combined revenue: $74 million; expenditures: $103 million
- General fund: $26.33 million
- Projected ending general fund balance: $10.1 million
- New positions: 18.5 FTE
Item 2 · Other
Fiscal 2022 strategic plan update
Discussed
Community Services Director Camden Bird reviewed goals from the February retreat: a property tax analysis by December; a resident survey on citywide fiber and its business models, with a fiber plan by the end of FY22; finishing 200 South design and taking bids in August once funding is secured, with construction in 2022 (if funding falls short, only the core through the TOD to about 1900 West would be built, and the city could use a special revenue bond); water conservation through metering, advanced meter infrastructure and a recycled water program; finishing Art Dye Park and moving the concrete and asphalt pile; and buying park land south of I-15 in the fall.
Item 3 · Presentation
Fraud risk assessment
Discussed
Montoya said the new audit committee and a planned fraud hotline should move the city from a moderate to a low rating on the State Auditor's fraud risk questionnaire, about 350 of 390 points.