Budget retreat, day 2: staffing needs, $166 million general obligation bond capacity, fiber bond and Fire Station 53 top goals
February 23, 2024, 8:15 a.m. · Fox Hollow Golf Club, 1400 North 200 East
On the second day of the annual budget workshop, staff told the council the city has 293 full-time-equivalent employees for about 48,000 residents and expects to need 468 in 20 years plus 110,000 more square feet of space; the police chief said a typical ratio would mean 76 officers rather than 54. Finance reported bonding capacity of $166 million in general-purpose GO bonds and $318 million in utility GO bonds, about $200 million in budget requests, and that a $5 monthly transportation utility fee would raise about $700,000. FY2025 goals: bond for citywide fiber, prepare a GO bond for Fire Station 53, downtown revitalization, general plan update, facilities master plan, fitness center design, a public works facility and water reuse. The mayor raised TOD parking problems, floating a parking service district.
From the approved minutes.
Decisions at a glance
Agenda, item by item
Item 1 · Budget
Taxes and utility fee comparison; 5-10-20 year resource outlook
Discussed
Bunker said American Fork ranks 5th highest in county property taxes paid but 5th lowest in utility rates, 6th lowest combined. Population projected at 55,000 by 2028. Police: 54 officers versus 76 at 1.3 per 1,000; needs evidence storage and parking. Fire Chief Aaron Brems said Station 53 is needed within 1-3 years to cover the south end, with a 3-year design-build timeline. Public works has bought homes east of its yard to expand. IT Director George Schade said the network operations center sits in a basement that depends on sewage pumps and must move. The cemetery has about 9 years of lot sales left; the city has 252 acres of parks.
- Staff: 293 FTE now; 323, 360, 468 projected
- Police: 54 officers; 76 at 1.3/1,000
- Space need: 110,000 sq ft
Item 2 · Budget
Debt capacity and FY2025 budget outlook
Discussed
Finance Director Anna Montoya said the city could issue up to $166 million in general-purpose GO bonds, $318 million in utility GO bonds, $16 million in water revenue bonds and $59 million in sales tax revenue bonds. The general fund reserve is at the 35% maximum. About $200 million in requests were received. Fire Station 53 would need a voter-approved GO bond.
- GO (general) capacity: $166M
- GO (utility) capacity: $318M
- Water revenue bond capacity: $16M
- Sales tax revenue bond capacity: $59M
- Budget requests: about $200M
Item 3 · Taxes and fees
General fund revenue work plan: property tax versus transportation utility fee
Discussed
Montoya said residents prefer small regular property tax increases; pending legislation could require ballot votes for rate changes and would allow a transportation utility fee with a study. A $5 monthly road fee would raise about $700,000. Carroll asked for a discussion of road fees versus property tax.
- $5/month transportation utility fee: about $700,000/year
Item 4 · Other
FY2025 strategic goals
Discussed
Goals: fiber (finish mid-level design, bond, possible referendum, needs about a 40% take rate), Fire Station 53 design and GO bond strategy, downtown revitalization, general plan update, facilities master plan, fitness center design, public works facility, water reuse. Taylor proposed a customer service initiative. Frost said TOD townhomes rented by the room bring four or five cars each and suggested a parking service district.
What residents said
TOD parking from room rentals