Orem council adopts fiscal 2025-26 budget of about $177 million, with new water source fee and higher sewer rates
June 10, 2025, 3:00 p.m. · 56 North State Street, Orem
With Mayor David Young and Council Member Tom Macdonald absent and Mayor Pro Tem LaNae Millett presiding, the Orem City Council voted 5-0 to adopt the fiscal year 2025-26 budget. It includes a new water source fee, higher water reclamation base rates, a 50-cent rise in recreation daily admission, and no solid waste rate increase. The council also enacted raises for specific city officers and set enterprise fund transfers to the General Fund. Council Member Chris Killpack participated by Zoom.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
| Item | Result |
|---|---|
| Utah Valley HOME Consortium interlocal agreement renewal | Approved · 5-0 |
| Library Advisory Commission appointments | Approved · 5-0 |
| Enterprise fund transfers to the General Fund, fiscal year 2025-26 | Discussed |
| Compensation increases for specific city officers | Approved · 5-0 |
| Adoption of fiscal year 2025-26 city budget | Approved · 5-0 |
| Redevelopment Agency and Special Service Lighting District budgets, fiscal year 2025-26 | Approved · 5-0 |
Agenda, item by item
Item W1 · Presentation
Utah Risk Management Agency presentation
Discussed
Executive Director David Peterson said Orem is a 1985 founding member of the self-insured risk pool, which he said costs members about 21% less than traditional insurance, provides $15 million of cyber coverage and lets each city decide whether to settle claims and choose its counsel. He agreed to provide quarterly claims reports after Council Member Millett asked for more frequent updates.
Item W2 · Contract
Utah Valley HOME Consortium interlocal agreement renewal
Approved · 5-0
Management Analyst Heather Cox said the three-year renewal lets Orem pool with other cities to qualify for federal HUD HOME housing grants. Council Member Millett asked that down payment assistance and neighborhood revitalization be prioritized; Cox will raise it with the program administrator in Provo. The resolution was approved on the consent agenda.
Item 9 · Appointment
Library Advisory Commission appointments
Approved · 5-0
The council appointed Karina Lewis, Matthew Barton, Angela Watters and Christine Corley to the Library Advisory Commission as consent items.
Item 10.1 · Budget
Enterprise fund transfers to the General Fund, fiscal year 2025-26
Discussed
Finance Director Brandon Nelson said that to satisfy a state auditor requirement, the General Fund pays the water, sewer, stormwater and street lighting funds for utility service at city-owned properties such as parks, and the same amounts are transferred back, so utility rates and the budget are not affected. Transfers are $900,000 for water, $16,000 for water reclamation, $141,000 for stormwater and $15,000 for street lighting. No one commented at the hearing.
- Budget$1.07 million
Item 10.2 · Budget
Compensation increases for specific city officers
Approved · 5-0
Nelson said a new state law requires a separate public hearing on raises for specific executive officers, and the increases generally match the standard 3% step increase given to other staff. No one commented.
Item 10.3 · Budget
Adoption of fiscal year 2025-26 city budget
Approved · 5-0
Nelson said overall revenue rises by $17 million, with much of it going to capital projects for roads, water and the water reclamation facility. The General Fund rises $3 million from sources including sales tax and fire contracts with Lindon and Vineyard, funding police software, rifle replacement and added fire and public works staff. A new water source fee covers Jordanelle and Deer Creek water costs, water reclamation base and volume rates rise, with Lindon and Vineyard paying their share of the plant costs, recreation daily admission rises 50 cents, and solid waste rates do not rise because fund balance absorbs vendor cost increases. No one commented at the hearing.
- Budget$177.0 million
Item RDA · Budget
Redevelopment Agency and Special Service Lighting District budgets, fiscal year 2025-26
Approved · 5-0
Sitting as the Redevelopment Agency and Special Service Lighting District, the council adopted FY2025-26 budgets by resolution. For the University Place area, 90% of property tax revenue goes under an incentive agreement toward infrastructure debt, with 5% to the RDA fund and 5% to the General Fund for administration. The lighting district budget covers maintenance, holiday lighting and the LED lease, with a street lighting fee increase. No one commented.
What residents said
Utility rate changesWater source fee
No one spoke at any of the public hearings or personal appearances.