Orem council backs dedicating property tax to a public safety fund, weighs short-term rental occupancy limits and reviews $28 million capital plan

Decisions at a glance

Agenda, item by item

1. Budget

   Public Safety Special Revenue Fund

   Discussed

   Finance Director Brandon Nelson proposed moving police and fire budgets out of the General Fund into a dedicated fund and dedicating about $6.5 million of the city's $8.1 million in property tax revenue to it, to be formalized by resolution with the tentative budget on May 12. Police Chief BJ Robinson and Fire Chief Marc Sanderson supported it. Nelson said the Tax Commission indicated reversing the decision would be harder, that the city could still use Truth in Taxation for a separate general operations levy, and that the change is separate from any tax increase. Mayor McCandless directed staff to include it in the tentative budget.

   • Budget$6.50 million Property tax dedicated to proposed Public Safety Special Revenue Fund (of $8.1 million total). Paid from Property tax

2. City code

   Short-term rental occupancy and parking rules

   Discussed

   Deputy City Attorney Jacob Summers compared occupancy approaches (numerical cap, bedroom count, square footage ratio, hybrid) and warned that allowing higher occupancy than for other residential uses could raise Fair Housing Act and ADA risks; he recommended requiring an accessory apartment permit before a rental license. Mayor McCandless preferred owner-occupied rentals and a bedroom-based calculation and asked for specialized hearings on occupancy and parking. Council Members Millett and Muhlestein favored a firm eight-person cap, with Millett opposing tandem parking; Mecham favored square footage or two per bedroom; Lambson supported two per room with a maximum; Gale favored two per bedroom and cautioned about the cost of accessory unit permits for owners of older homes; Killpack leaned toward bedrooms plus an overall cap. The police chief said family relationships are nearly impossible to enforce at the door. The council agreed to hold another work session on geofencing and the 183-day residency requirement, then a public hearing before the draft goes to the Planning Commission.

3. Roads and utilities

   Fiscal 2027 capital improvement projects

   Discussed

   City Engineer Taggart Bowen presented a CIP budget of nearly $28 million: about $5 million general, $5.2 million water, $8.5 million sewer, $3.6 million storm water and $5.3 million streets. Upcoming utility work includes a $70 million bond for the first phase of a $250 million water reclamation facility upgrade and two new wells at about $5 million each. Park items include a $925,000 Lakeside playground, a $500,000 pump track at Community Park, an $85,000 pet memorial bridge at Canyon View Park, a $500,000 cemetery master plan phase, $100,000 for design to expand the police training facility and range, and a $100,000 audio-visual upgrade of Council Chambers.

   • Budget$28.0 million FY2027 capital improvement program. Paid from General CIP, water, sewer, storm water and street funds
   • Bond$70.0 million First phase of $250 million water reclamation facility upgrade. Paid from Utility rates
   • Contract$925,000 Lakeside playground replacement. Paid from CIP
   • Contract$100,000 Design for police training facility and range expansion. Paid from CIP

4. Budget

   CARE tax deliberations and Artist/Writer in Residence

   Discussed

   Council liaisons described the CARE commission's rubric scoring and the scarcity of funds. Library and Recreation Director Bryce Merrill described new staff-led programs: Library Hall facility grants, an honorarium program of $250 to $750 for performers, and a beta Artist/Writer in Residence. Council Members Millett and Muhlestein objected to using CARE money for non-resident artists, saying a $30,000 residency was disproportionate and that approved sidewalk and utility box art should come first; Mecham, Gale and Lambson valued outside talent. City Manager Bybee proposed a framework giving preference to Orem residents and entities partnering with local schools or UVU, and bringing major grant recipients such as SCERA to work sessions.

   • Budget$30,000 Proposed Artist/Writer in Residence program. Paid from CARE tax

5. Budget

   Fleet and streets budget

   Discussed

   Fleet Manager Thayne Carter presented a $3.4 million vehicle replacement request, about $1.5 million in the General Fund (including $410,000 in leases and a $160,000 annual payment on a new fire pumper) and about $2 million in enterprise funds. Public Works Director Chris Tschirki said the city has 50 million square feet of asphalt worth about $400 million to rebuild, 75% of it local streets 50 to 60 years old, degrading about 3% a year; reconstruction costs about $8 per square foot versus $2 for mill and overlay. The proposed transportation utility fee would raise about $4 million a year: $3.2 million for overlays, $400,000 for concrete (3,100 feet of hazardous sidewalk and 400 missing ADA ramps) and $400,000 administration. Asphalt has risen from $50 to $72 a ton.

   • Budget$3.40 million FY2027 vehicle replacement. Paid from General Fund and enterprise funds
   • Fee$4.00 million Projected annual transportation utility fee revenue. Paid from Proposed transportation utility fee

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What residents said

Short-term rental occupancy and parkingRoad maintenance fundingCARE tax residency preference