Orem council leans against property tax increase as it reviews pandemic-hit 2020-21 budget
April 28, 2020 · Held electronically (56 North State Street, Orem)
In a single electronic work session, the council reviewed a 2020-21 budget with a general fund deficit of about $1.45 million, and the mayor and all five members who spoke said they did not want a property tax rate increase this year. The council also favored a $3.95 convenience fee for utility bills paid by card over $500 and discussed how to use $411,983 in federal COVID-19 CDBG funds. No formal votes were taken.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
| Item | Result |
|---|---|
| Fiscal 2020-21 budget review: operations, capital projects, fleet and IT | Discussed |
| Annual sewer report and water rates | Discussed |
| Credit card fee reduction plan | Discussed |
| CDBG COVID-19 funding | Discussed |
| State purchase of Boy Scout building for transitional facility | Discussed |
| COVID-19 operations update | Discussed |
Agenda, item by item
Item Budget discussion · Budget
Fiscal 2020-21 budget review: operations, capital projects, fleet and IT
Discussed
Finance Manager Brandon Nelson estimated a general fund deficit of about $1.45 million after pandemic revisions, and listed general fund expansion requests of about $67,700 and other-fund requests of about $447,500. City Engineer Sam Kelly presented capital projects totaling $16,853,000 across funds. Staff said a Volkswagen grant would reimburse part of the cost of five fleet vehicles, including the Senior Center bus. IT asked for $10,000 more for maintenance and rotation of water smart-meter network equipment. Mayor Brunst and Council Members Sumner, Spencer, Peterson and Lambson said they did not want a mill rate increase this year; Council Member Debby Lauret said she opposed an increase unless tied to police and fire. Council Member Tom Macdonald had left the meeting earlier. City Manager Jamie Davidson said state law requires a tentative budget at the first May meeting.
- Budget$16.9 million
- GrantAmount not given to Volkswagen settlement grant
Item Work session · Roads and utilities
Annual sewer report and water rates
Discussed
Water Division Manager Neal Winterton presented the wastewater planning annual report, saying monitoring and pipe lining have limited discharge violations to Powell Slough. He said utility rates will not rise for 2020-21. A water tank planned at Community Park would cost $10 million to $13 million, to be financed over time. Council Member David Spencer raised concern for low-income seniors paying higher water rates; City Manager Jamie Davidson said any relief for one group shifts costs to others.
- BudgetAmount not given
Item Work session · Taxes and fees
Credit card fee reduction plan
Discussed
An innovation team reported that card fees have grown faster than transactions. It recommended a $500 per-transaction cap on card utility payments with a $3.95 convenience fee per transaction, with ACH payments avoiding the fee, starting October 1, 2020. Staff said most residential bills are under $500. Council members were generally favorable; Council Member David Spencer suggested a different fee for large commercial accounts.
- Fee$4
Item Work session · Other
CDBG COVID-19 funding
Discussed
Staff said Orem's allocation is $411,983, restricted to pandemic response and not to offset revenue shortfalls. Possible Orem-only uses include public services, rent and mortgage assistance, and police and fire overtime and protective equipment. Council members generally preferred Orem-only projects; Council Member Debby Lauret cited a reported 25 percent rise in domestic violence and mental health issues.
- Grant$411,983 to U.S. Department of Housing and Urban Development
Item Communications · Public safety
State purchase of Boy Scout building for transitional facility
Discussed
City Manager Jamie Davidson said the state bought the Boy Scout facility in Orem and plans to renovate it as a 96-bed correctional transitional facility. Deputy City Attorney Steve Earl said the state is not subject to local zoning and the city has little ability to oppose it.
Item Communications · Public safety
COVID-19 operations update
Discussed
Davidson said that with the state moving to the orange risk level on May 1, staff would keep staggered shifts, masks in city buildings and appointment-only services; three employees had tested positive and were asymptomatic. He said team sport seasons would likely be canceled under the state order.