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HomeMy WebLinkAbout04/01/2025 - Formal Meeting - Meeting MaterialsSALT LAKE CITY COUNCIL AGENDA FORMAL MEETING   April 1, 2025 Tuesday 7:00 PM Council meetings are held in a hybrid meeting format. Hybrid meetings allow people to join online or in person at the City & County Building. Learn more at tinyurl.com/SLCCouncilMeetings.  Council Chambers 451 South State Street, Room 315 Salt Lake City, UT 84111 SLCCouncil.com   CITY COUNCIL MEMBERS: Chris Wharton, Chair District 3 Alejandro Puy, Vice Chair District 2 Victoria Petro District 1 Eva Lopez Chavez District 4 Darin Mano District 5 Dan Dugan District 6 Sarah Young District 7   Generated: 09:23:29 Please note: Dates not identified in the FYI - Project Timeline are either not applicable or not yet determined. WELCOME AND PUBLIC MEETING RULES   A.OPENING CEREMONY: 1.Council Member Sarah Young will conduct the formal meeting. 2.Pledge of Allegiance. 3.Welcome and Public Meeting Rules. 4.The Council will approve the work session meeting minutes of December 10, 2024 and January 21, 2025, as well as the formal meeting minutes of January 21, 2025 and February 4, 2025. 5.The Council will consider adopting a joint ceremonial resolution with Mayor Mendenhall recognizing April 2, 2025 as Start by Believing Day in Salt Lake City. B.PUBLIC HEARINGS:   1. Resolution: Creation of a Public Infrastructure District The Council will accept public comment and consider adopting a resolution that would create the Convention Center Public Infrastructure District and define the general process and role of the City in establishing the Proposed District. The proposal would assist with financing the redevelopment of the Delta Center, the development of SEG's entertainment district, and the redevelopment of the Salt Palace. The public hearing allows for public input on whether the requested service is needed, whether the service should be provided by the City, County, or the Proposed District, and all other matters relating to the Proposed District. State law provides the City with a strict and short timeframe within which to take action on the Proposed District. The Council intends to take formal action on April 8th. Petitioner: John Larson, representing Jazz Arena Investors, LLC.    FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, April 1, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - Tuesday, April 1, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, April 8, 2025 Staff Recommendation - Refer to motion sheet(s).   C.POTENTIAL ACTION ITEMS: NONE.   D.COMMENTS: 1.Questions to the Mayor from the City Council. 2.Comments to the City Council. (This is a one-hour time slot for the public to comment on any City business not scheduled for a public hearing. Each person will have two minutes to talk. General comment registration closes at 7:30 p.m.)   E.NEW BUSINESS: NONE.   F.UNFINISHED BUSINESS: 1. Ordinance: The Central Business Improvement Area (CBIA-25) The Council will consider adopting an ordinance to re-establish the Salt Lake City Central Improvement Assessment Area (CBIA-25), creating two assessments: one for downtown economic promotion and another for holiday lighting on certain streets. The ordinance would accept Board of Equalization recommendations, establish the effective date of the CBIA-25, confirm the equalized assessment list, and impose an assessment on specific properties within the Area.    FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, July 2, 2024; Tuesday, November 12, 2024; Tuesday, February 4, 2025; and Tuesday, April 1, 2025 Set Public Hearing Date - Tuesday, July 9, 2024 Hold hearing to accept public comment - Tuesday, September 3, 2024 at 7 p.m. TENTATIVE Council Action - Tuesday, November 12, 2024 and Tuesday, April 1, 2025 Staff Recommendation - Refer to motion sheet(s).   2. Resolution: Confirmation of Ranked Choice Voting for 2025 Municipal Election and Interlocal Agreement The City Council will consider adopting a resolution authorizing the City to enter into an Interlocal Agreement with Salt Lake County Election’s Division to support the 2025 Municipal Election. In addition, the City Council may confirm their determination to participate in the Alternative Voting Methods Pilot Project, more commonly referred to as Ranked Choice Voting (RCV) without a Primary election. Under ranked choice voting, voters rank the candidates in order of preference. Election equipment counts the preference numbers for each ballot. If none of the candidates receive more than 50% of the overall vote after the first round, the candidate with the least number of votes is eliminated. The voters who had selected the eliminated candidate as their first choice would then have their votes counted for their second-choice candidate. This process of elimination continues until a candidate crosses the 50% threshold and is declared the winner. For more information on this item visit https://tinyurl.com/RankedChoiceSLC.    FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, March 25, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - Tuesday, April 1, 2025 Staff Recommendation - Refer to motion sheet(s).     G.CONSENT:   1. Ordinance: Mixed-Use (MU) Zoning Consolidation Zoning Text and Map Amendment The Council will set the date of Tuesday, May 6, 2025 at 7 p.m. to accept public comment and consider adopting an ordinance that would amend the City's zoning ordinance and zoning map by consolidating up to 27 existing commercial, form-based, and mixed-use zoning districts into six new mixed-use (MU) districts. The proposal aims to simplify zoning regulations, improve clarity of language, and incorporate missing design standards. The new mixed-use districts will be similar to the current districts but will have changes to setbacks, building height, lot coverage, and permitted land uses. Other sections of Title 21A may also be amended as part of this petition. Petition No.: PLNPCM2024-00707. For more information visit https://tinyurl.com/SLCMixedUse.    FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, February 4, 2025 and Tuesday, April 8, 2025 Set Public Hearing Date - Tuesday, April 1, 2025 Hold hearing to accept public comment - Tuesday, May 6, 2025 at 7 p.m. TENTATIVE Council Action - TBD Staff Recommendation - Set date.   2. Ordinance: Budget Amendment No.5 for Fiscal Year 2024-25 The Council will set the date of Tuesday, April 15, 2025 at 7 p.m. to accept public comment and consider an ordinance amending the final budget of Salt Lake City, including the employment staffing document for Fiscal Year 2024-25 Budget. Budget amendments happen several times each year to reflect adjustments to the City’s budgets, including proposed project additions and modifications. The proposed amendment includes funding to cover remaining costs for the 400 South Bridge Reconstruction project, funds to repair homes in the Community Land Trust, additional funding for the Hive Pass program because of increased usage, and funding to expand the scope of a public restroom study. For more information visit tinyurl.com/SLCFY25.    FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, April 1, 2025 Set Public Hearing Date - Tuesday, April 1, 2025 Hold hearing to accept public comment - Tuesday, April 15, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, May 6, 2025 Staff Recommendation - Set date.   H.ADJOURNMENT:     CERTIFICATE OF POSTING On or before 10:30 a.m. on Friday, March 28, 2025, the undersigned, duly appointed City Recorder, does hereby certify that the above notice and agenda was (1) posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701, and (2) a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. KEITH REYNOLDS SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda, including but not limited to adoption, rejection, amendment, addition of conditions and variations of options discussed. The City & County Building is an accessible facility. People with disabilities may make requests for reasonable accommodation, which may include alternate formats, interpreters, and other auxiliary aids and services. Please make requests at least two business days in advance. To make a request, please contact the City Council Office at council.comments@slc.gov, 801-535-7600, or relay service 711. JOINT RESOLUTION RECOGNIZING APRIL 2, 2025, AS START BY BELIEVING DAY IN SALT LAKE CITY WHEREAS,Salt Lake City shares a critical concern for victims of sexual violence and intimate partner violence and a desire to support their needs for justice and healing; and WHEREAS, sexual assault, rape, child sexual abuse, and domestic violence are of epidemic proportions. One in three Utah women experience sexual assault and/or domestic violence in their lifetimes, and one in seven Utah children experience child sexual abuse; and WHEREAS,current estimates suggest that a significant amount of sexual assaults are not reported to law enforcement, with a small number reported resulting in the conviction and incarceration of the perpetrator; and WHEREAS,research documents that victims are far more likely to disclose their sexual assault to a friend or family member, and when these loved ones respond with doubt, shame, or blame, victims suffer additional negative effects on their physical and psychological well-being; and WHEREAS,the Start by Believing public awareness campaign, a program of End Violence Against Women International, is designed to improve the responses of friends, family members, and community professionals to help victims access supportive resources and engage with the criminal justice system; and NOW, THEREFORE BE IT RESOLVED, that the Salt Lake City Council and Mayor of Salt Lake City officially designate April 2, 2025, along with the first Wednesday of April each year as Start by Believing Day. Adopted this 1st day of April 2025. Erin Mendenhall Chris Wharton, Chair Salt Lake City Mayor Salt Lake City Council Member, District Three Alejandro Puy, Vice Chair Victoria Petro Salt Lake City Council Member, District Two Salt Lake City Council Member, District One Eva Lopez Chavez Darin Mano Salt Lake City Council Member, District Four Salt Lake City Council Member, District Five Dan Dugan Sarah Young Salt Lake City Council Member, District Six Salt Lake City Council Member, District Seven RESOLUTION NO. OF 2025 (Creating the Downtown Revitalization Public Infrastructure District and Authorizing and Approving the Governing Document and the form of the Interlocal Agreement) WHEREAS, during the 2025 general legislative session, the Utah legislature passed the Housing and Transit Reinvestment Zone amendments, which, among other things, provides for the creation of a convention center public infrastructure district in a capital city for the purposes of financing any improvements that serve the County-owned convention center (commonly known as the Salt Palace), privately owned improvements if the improvements are allowed use of funds under Section 63N-3-1403 (Capital City Revitalization Zone), and a convention center revitalization project as defined in Section 63N-3-602 (Housing and Transit Reinvestment Zone); and WHEREAS, the Housing and Transit Reinvestment Zone amendments provide for an expedited timeline for the City to act once it receives a petition to create a convention center public infrastructure district in a capital city including providing the City a limited timeframe to propose modifications to the petition and associated documents; and WHEREAS, on March 17, 2025, the City received a petition filed by John Larson on behalf of Jazz Arena Investors, LLC, requesting adoption by resolution approving the creation of a convention center public infrastructure district in a capital city (District) pursuant to the Public Infrastructure District Act, Title 17D, Chapter 4 and relevant portions of the Limited Purpose Local Government Entities - Special Districts, Title 17B (collectively, the PID Act), within the City for the purpose of financing certain Improvements, as more specifically defined in the Governing Document attached as Exhibit A; and WHEREAS, the petition proposes that the District boundaries are Block 79 in downtown Salt Lake City, more commonly known as the Delta Center and as described and depicted on the map attached as Exhibit B; and WHEREAS, the petition proposes that the District is necessary for the purpose of financing the construction of certain Improvements, as defined in the Governing Document; and WHEREAS, the petition provides that the District’s Trustees shall be appointed consistent with the PID Act, and as more specifically set forth in the Governing Document; and WHEREAS, the PID Act provides that the District and City shall enter into an Interlocal Agreement pledging certain City funds to the District, including the .5% sales and use tax authorized under the Section 59-12-402.5 and 63N-3-1403 (Capital City Revitalization Zone) and Section 59-12- 2220 (County Option Sales and Use Tax), the form of the Interlocal Agreement is attached as Exhibit C; and WHEREAS, pursuant to the terms of the PID Act, the City may create a public infrastructure district by adopting a resolution of the City Council and with consent of 100% of all surface property owners proposed to be included in the district (the Property Owners); and WHEREAS, the petition, containing the consent of the single Property Owner, has been certified by the City Recorder pursuant to the PID Act; and WHEREAS, the City, prior to consideration of this Resolution, held a public hearing after 6:00 p.m. to receive input from the public regarding the creation of the District and the Property Owner waived the 60-day protest period pursuant to Section 17D-4-201 of the PID Act; and WHEREAS, the hearing on the Petition was held at the City Hall because there is no reasonable place to hold a public hearing within the District’s boundaries, and the hearing at the City Hall was held as close to the applicable area as reasonably possible; and WHEREAS, the City properly published notice of the public hearing in compliance with Section 17B-1-211(1) of the Act; and WHEREAS, the Property Owner did not submit a withdrawal of consent to the creation of the District before the public hearing on the Petition; and WHEREAS, it is necessary to authorize the creation of the District under and in compliance with state law and to authorize other actions in connection therewith; and WHEREAS, the governance of the District shall be in accordance with the PID Act and the terms of the Governing Document; and NOW, THEREFORE, be it resolved by the City Council of Salt Lake City, Utah, as follows: 1. The District is hereby created as a separate entity from the City in accordance with the Governing Document and the PID Act. The boundaries of the District shall be as set forth in the Governing Document. 2. The District is authorized to provide services relating to the financing of Improvements within and without the District boundaries, as set forth in the Governing Document. 3. The creation of the District is in the best interest of the City, and the organization of the District pursuant to the PID Act is hereby approved. 4. The Governing Document in the form attached hereto as Exhibit A is hereby authorized and approved and the District shall be governed by the terms thereof and applicable law. 5. The Interlocal Agreement in the form attached hereto as Exhibit C is hereby authorized and approved, subject to any modifications recommended by the City Attorney’s Office. The effective date of the Interlocal Agreement shall be the date that the agreement is executed by both parties. 6. The Mayor and City Attorney are authorized to make any corrections, deletions, or additions to take any actions required by law to formalize the District. Passed by the City Council of Salt Lake City, Utah on , 2025. Salt Lake City Council Chris Wharton, Council Chair Attest: Keith Reynolds, City Recorder Approved as to form: Mark Kittrell, City Attorney EXHIBIT A [Governing Document] EXHIBIT B EXHIBIT C [Form of Interlocal Agreement] GOVERNING DOCUMENT FOR DOWNTOWN REVITALIZATION PUBLIC INFRASTRUCTURE DISTRICT SALT LAKE CITY, UTAH Prepared by Gilmore & Bell, P.C. 15 West South Temple, Suite 1400 Salt Lake City, Utah 84101 [DATE], 2025 TABLE OF CONTENTS I. INTRODUCTION...............................................................................................................1 A. Purpose and Intent...................................................................................................1 B. Need for the District................................................................................................1 C. Objective of the Governing Document....................................................................1 II. DEFINITIONS ....................................................................................................................2 III. BOUNDARIES....................................................................................................................5 IV. LIMITATION OF CITY .....................................................................................................5 V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES .......5 A. Powers of the District and Governing Document Amendment...............................5 1. Improvements ..............................................................................................5 2. Vesting .........................................................................................................5 3. Construction Standards Limitation ..............................................................5 4. Procurement.................................................................................................6 5. Reserved ......................................................................................................6 6. Annexation and Withdrawal........................................................................6 7. Overlap Limitation.......................................................................................6 8. Reserved ......................................................................................................6 9. No Debt Issuance Limitation .......................................................................6 10. Bankruptcy Limitation .................................................................................6 11. Governing Document Amendment Requirement ........................................7 B. Preliminary Estimate of Improvements...................................................................7 VI. THE BOARD OF TRUSTEES ............................................................................................7 A. Board Composition................................................Error! Bookmark not defined. B. Vacancy...................................................................................................................8 C. Compensation..........................................................................................................8 D. Voting. ....................................................................................................................8 E. Conflicts of Interest.................................................................................................8 F. Not a Resident..........................................................................................................8 G. No Liability of City or County................................................................................8 VII. RESERVED .........................................................................................................................8 VIII. FINANCIAL PLAN ............................................................................................................8 A. General.....................................................................................................................8 B. Applicable Debt Requirements................................................................................8 C. Maximum Debt Mill Levy.......................................................................................9 D. Debt Imposition Term..............................................................................................9 E. Maximum Administrative Mill Levy.......................................................................9 F. Debt Repayment Sources.........................................................................................9 G. Debt Instrument Disclosure Requirement.............................................................10 H. Security for Debt....................................................................................................10 4932-8939-7795, v. 5 I. District’s Operating Costs......................................................................................10 IX. ANNUAL REPORT ..........................................................................................................11 A. General...................................................................................................................11 B. Reporting of Significant Events.............................................................................11 X. DISSOLUTION .................................................................................................................12 XI. DISCLOSURE TO PURCHASERS..................................................................................12 XII. CAPITAL PLEDGE AGREEMENT ................................................................................12 LIST OF EXHIBITS EXHIBIT A Legal Descriptions EXHIBIT B The Act EXHIBIT C Initial District and Annexation Area Boundary Map EXHIBIT D Capital Pledge Agreement between the District and Salt Lake City I. INTRODUCTION A. Purpose and Intent. The District is a convention center public infrastructure district in a capital city, and as such is (a) is a body corporate and politic with perpetual succession; (b) is a quasi-municipal corporation; (c) is a political subdivision of the state; and (d) is separate and distinct from, and independent of, the City and any other public entity or political subdivision of the state, and, except as may otherwise be provided for by State law, this Governing Document, and the Participation Agreement, its activities are subject to review by the City only insofar as they may deviate in a material matter from the requirements of the Governing Document. It is intended that the primary purpose of the District will be to finance the Improvements in accordance with the Act and the Participation Agreement. The District shall be entitled to the full powers of the Act to fulfill the limited purposes as generally described in this Governing Document. References to the Participation Agreement herein shall not be construed as a limitation on the powers of the District other than as a limitation on the use of the Revitalization Sales Taxes (as defined therein) to those uses described in the Participation Agreement. B. Need for the District. There are currently no other governmental entities, including the City, located in the immediate vicinity of the District that consider it desirable, feasible, or practical to undertake the financing of the Improvements needed for the Project. Formation of the District is therefore necessary for the Improvements required for the Project to be provided in the most economic manner possible. C. Objective of the Governing Document. The objective of this Governing Document is to authorize the District to provide for the financing of the Improvements from the proceeds of Debt to be issued by the District. All Debt is expected to be repaid by Pledged Revenues, provided however, that this Governing Document shall not be interpreted to expand or allow any use of Pledged Revenues to finance any Improvements in a manner not permitted by the Act or the Participation Agreement, as applicable. This Governing Document is intended to establish a limited purpose for the District and explicit financial constraints that are not to be violated. The primary purpose is to provide for the financing of the Improvements There are no divisions of the District. It is the intent of the District to dissolve upon payment or defeasance of all Debt incurred or upon a determination that adequate provision has been made for the payment of all Debt. The District may also be dissolved if the District has no Debt and the Board determines that the District is not needed to finance the Improvements. The District shall be authorized to finance the Improvements that can be funded from Debt to be repaid from Pledged Revenues. It is the intent of this Governing Document to assure to the extent possible that no taxable property bear an economic burden that is greater than that associated with the Maximum Debt Mill Levy in amount and that no taxable property bear an 4932-8939-7795, v. 5 economic burden that is greater than that associated with the Maximum Debt Mill Levy Imposition Term in duration. II. DEFINITIONS In this Governing Document, the following terms shall have the meanings indicated below, unless the context hereof clearly requires otherwise: Act: means the applicable portions of the District Act, the CCRZ Act, the Capital City Revitalization Zone Act, and the Assessment Act as of May 7, 2025, provided however, that any obvious errors or technical corrections after this date that do not affect the business terms of this Governing Document shall be acceptable. A copy of the Act will be attached as Exhibit B once the Act is published. Annexation Area Boundaries: means the boundaries of the area described in the Annexation Area Boundary Map and as particularly described in Exhibit A-2 which may be annexed or withdrawn from or into the District upon the meeting of certain requirements, including the written consent of the related property owners or lessees of such property, as applicable. Annexation Area Boundary Map: means the map attached hereto as Exhibit C, describing the property approved for potential annexation to the District. Assessment: means (i) the levy of an assessment secured by a lien on property within the District to pay for the costs of Improvements benefitting such property or (ii) an assessment by the District levied on private property within such District in accordance with the C- Pace Act, each as may be levied pursuant to the Assessment Act. Assessment Act: means collectively, (i) Title 11, Chapter 42, Utah Code as may be amended from time to time and (ii) the C-PACE Act. Board: means the board of trustees of the District. Bond, Bonds, or Debt: means bonds or other obligations, including loans of any property owner, for the payment of which the District has promised to pledge and collect Pledged Revenues. Capital City Revitalization Zone Act: means Title 63N, Chapter 14 of Utah Code, as may be amended from time to time. City: means Salt Lake City Corporation, a Utah municipal corporation. City Code: means the City Code of Salt Lake City. City Council: means the Salt Lake City Council. CCRZ Act: means those provisions of Title 63N, Chapter 3, Part 6 that relate to a Convention Center Reinvestment Zone in a Capital City. 4932-8939-7795, v. 5 Convention Center Reinvestment Zone in a Capital City: means the same as defined and described in the CCRZ Act. County: means Salt Lake County, Utah. C-PACE Act: means Title 11, Chapter 42a of the Utah Code, as amended from time to time. C-PACE Bonds: means bonds, loans, notes, or other structures and obligations of the District issued pursuant to the C-PACE Act, including refunding C-PACE Bonds. C-PACE Assessments: means assessments levied under the C-PACE Act. District: means the Downtown Revitalization Public Infrastructure District. District Act: means the Special District Act and the PID Act. District Area: means the property within the Initial District Boundary Map and the Annexation Area Boundary Map. End User: means any owner, or tenant of any owner, of any taxable improvement within the District, who is intended to become burdened by the imposition of ad valorem property taxes subject to the Maximum Debt Mill Levy or an Assessment. By way of illustration, a resident homeowner, renter, commercial property owner, or commercial tenant is an End User. The business entity that constructs homes or commercial structures is not an End User. Fees: means any legal fee imposed by the District. Financial Plan: means the Financial Plan described in Section VIII which describes (i) the potential means whereby the Improvements may be financed; (ii) how the Debt is expected to be incurred; and (iii) the estimated operating revenue derived from property taxes for the first budget year. General Obligation Debt: means a Debt that is directly payable from and secured by ad valorem property taxes that are levied by the District and does not include Limited Tax Debt. Governing Document: means this Governing Document for the District approved by the City Council. Governing Document Amendment: means an amendment to the Governing Document approved by the City Council in accordance with the City’s ordinances and the applicable state law and approved by the Board in accordance with applicable state law. Improvements: means any part or all of the public or private improvements authorized to be planned, designed, acquired, constructed, installed, relocated, redeveloped and financed by a convention center public infrastructure district in a capital city as generally described 4932-8939-7795, v. 5 in the Act, and includes Public Infrastructure and Improvements as defined under the PID Act. Initial District Boundaries: means the boundaries of the area described in the Initial District Boundary Map and as particularly described in Exhibit A-1. Initial District Boundary Map: means the map attached hereto as Exhibit C, describing the District’s initial boundaries. Limited Tax Debt: means a debt that is directly payable from and secured by ad valorem property taxes that are levied by the District which may not exceed the Maximum Debt Mill Levy. Maximum Debt Mill Levy: means the maximum mill levy the District is permitted to impose for payment of Debt as set forth in Section VIII.C below. Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of a mill levy for any given series of bonds as set forth in Section VIII.D below. Maximum Administrative Mill Levy: means the maximum mill levy the District is permitted to impose for reasonable and actual administrative costs incurred by the District as set forth in Section VIII.E below. Participation Agreement: means the Participation, Tax Sharing and Reimbursement Agreement between the City and SEG Real Estate LLC and Smith Entertainment Group, LLC as may be amended from time to time pursuant to its terms and conditions. Petitioner: means Jazz Arena Investors LLC, a Utah limited liability company. PID Act: means Title 17D, Chapter 4 of the Utah Code, as amended from time to time and any successor statute thereto. Pledge Agreement: means any agreement or statutory requirement under the CCRZ Act pledging all or any portion of revenues to the District, and including but not limited to the Interlocal Capital Pledge Agreement attached hereto. Pledged Revenues: means all revenues legally available to the District (including via a Pledge Agreement, Mill Levy, and Assessments) and pledged in whole or in part to the repayment of Debt. Project: means the development or property in and around the District Area as permitted under the Act and including in any related approved Convention Center Reinvestment Zone in a Capital City (and the related county-owned convention center). Special District Act: means Title 17B of the Utah Code, as amended from time to time. State: means the State of Utah. 4932-8939-7795, v. 5 Taxable Property: means real or personal property within the District Area subject to ad valorem taxes imposed by the District. Trustee: means a member of the Board. Utah Code: means the Utah Code Annotated 1953, as amended. III. BOUNDARIES The area of the Initial District Boundaries includes approximately 10 acres and the total area proposed to be included in the Annexation Area Boundaries is approximately 46 acres. A legal description of the Initial District Boundaries and the Annexation Area Boundaries is attached hereto as Exhibit A. A map of the Initial District Boundaries and Annexation Area Boundaries is attached hereto as Exhibit C. It is anticipated that the District’s boundaries may change from time to time as it undergoes annexations and withdrawals pursuant to Section 17D-4-201, Utah Code, subject to Article V below. IV. LIMITATION OF CITY Approval of this Governing Document by the City does not imply approval of the development of a specific area within the District, nor does it imply approval of the development contemplated in the District Area, unless the same is separately approved by the City. V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES A. Powers of the District and Governing Document Amendment. The District shall have the power and authority to finance and provide the Improvements within and without the boundaries of the District as such power and authority is described in the Act, the Participation Agreement and other applicable statutes, common law, and the Constitution, subject to any limitations set forth herein. 1. Improvements. The purpose of the District is to plan for, design, acquire, construct, install, relocate, redevelop, and finance the Improvements. The District shall be authorized, but not obligated, to own, operate and maintain Improvements not otherwise required to be dedicated to the City or other public entity. 2. Vesting. The District shall be vested in the Act in effect as of May 7, 2025, provided however, that any obvious errors or technical corrections after this date that do not affect the business terms of this Governing Document shall be acceptable. Should the District and the City agree that future modifications to the Act should apply to the District, the District and City may execute an amendment to the Governing Document and any Pledge Agreement expressly adopting such modifications. 3. Construction Standards Limitation Any Improvements financed by the District must follow all applicable ordinances, laws, rules, and regulations, including obtaining any zoning, planning, design specifications and approval; obtaining the City’s approval of civil engineering plans and any applicable permits for construction and installation of Improvements as 4932-8939-7795, v. 5 required prior to performing such work. Improvements shall be subject to only the ordinary and generally applicable inspection and approval procedures of the City and other governmental entities having proper authority. 4. Procurement. The District shall be subject to the procurement requirements of the PID Act. Notwithstanding this requirement, the District may acquire completed or partially completed Improvements for fair market value, as determined by an engineer selected by the District. 5. Reserved. 6. Annexation and Withdrawal. (a) The District shall not include within its boundaries any property outside the Initial District Area without the adoption of a resolution by the City approving the annexation. Such area outside of the Initial District Area may only be annexed upon the District obtaining consent of all property owners or lessors, as applicable, within the area proposed to be annexed and the passage of a resolution of the City and the Board approving such annexation. (b) The District shall not withdraw property from the District Area without the adoption of a resolution by the City approving the withdrawal. Such area may only be withdrawn upon the District obtaining consent of all property owners or lessors, as applicable, within the area proposed to be withdrawn and the passage of a resolution of the City and the Board approving such annexation. (c) Any annexation or withdrawal shall be in accordance with the requirements of the PID Act. (d) Upon the completion of any annexation or withdrawal, the District shall provide the City a description of the revised District Boundaries. (e) Annexation or withdrawal of any area in accordance with V.A.6(a) and (b) shall not constitute an amendment of this Governing Document. 7. Overlap Limitation. The District shall not consent to the organization of any other public infrastructure district organized under the PID Act within the District Area which will overlap the boundaries of the District unless the aggregate mill levy for payment of Debt of such proposed districts will not at any time exceed the Maximum Debt Mill Levy of the District. 8. Reserved. 9. No Debt Issuance Limitation. So long as Debt is issued in accordance with the provisions of this Governing Document, the Participation Agreement, and the Act, there is no limit to the amount of Debt that may be issued by the District. 10. Bankruptcy Limitation. All of the limitations contained in the Governing Document, including, but not limited to, those pertaining to the Pledged Revenues, the Assessments, Maximum Debt Mill Levy, Maximum Debt Mill Levy Imposition Term and the Fees 4932-8939-7795, v. 5 have been established under the authority of the City to approve a Governing Document with conditions pursuant to Section 17D-4-201(5), Utah Code. It is expressly intended that such limitations: (a) Shall not be subject to set-aside for any reason or by any court of competent jurisdiction, absent a Governing Document Amendment; and (b) Are, together with all other requirements of Utah law, included in the “political or governmental powers” reserved to the State under the U.S. Bankruptcy Code (11 U.S.C.) Section 903, and are also included in the “regulatory or electoral approval necessary under applicable nonbankruptcy law” as required for confirmation of a Chapter 9 Bankruptcy Plan under Bankruptcy Code Section 943(b)(6). 11. Governing Document Amendment Requirement. (a) This Governing Document has been designed with sufficient flexibility to enable the District to provide funding for Improvements under evolving circumstances without the need for numerous amendments. (b) Subject to the limitations and exceptions contained herein, this Governing Document may be amended by passage of resolutions of the City Council and the Board approving such amendment. B. Preliminary Estimate of Improvements. The District shall have authority to provide funding for the planning, design, acquisition, construction, installation, relocation, redevelopment, maintenance, and financing of the Improvements within and without the boundaries of the District. An estimate of the costs of the Improvements which may be planned for, designed, acquired, constructed, installed, relocated, redeveloped, maintained, or financed was prepared based upon the currently anticipated Improvements and Pledged Revenues. However, this estimate is not a limitation on the Improvements ultimately financed by Pledged Revenues over time in accordance with the Act and the Participation Agreement. All of the Improvements will be designed in such a way as to assure that the Improvements standards will be compatible with those of the City and/or any other applicable public entity. All construction cost estimates are and will be based on the assumption that construction conforms to applicable local, State or Federal requirements. VI. THE BOARD OF TRUSTEES A. Board Composition. The Board shall be composed of five Trustees who shall be appointed as set forth in the PID Act. Trustees 1, 2, and 3 shall be representatives of the Petitioner selected by the Petitioner, Trustee 4 shall be a representative of the City selected by the mayor of the City (unless withdrawn in accordance with the Act), and Trustee 5 shall be a representative of the County selected by the Mayor of the County (unless withdrawn in accordance with the Act). Trustee terms shall be staggered with initial terms as follows: Trustees 1, 3 and 5 shall serve an initial term of six (6) years; Trustees 2 and 5 shall serve an initial term of four (4) years. Appointed 4932-8939-7795, v. 5 Trustees shall be required to conform with the requirements of the Act. The Board shall be self- perpetuating and the Board seats shall continue to be filled by representatives of the Petitioner selected by the Petitioner, City selected by the City Mayor, or the County selected by the County Mayor, as applicable. In the event the City or County elects to permanently abdicate the board seat in writing, such seats shall be selected by the Petitioner. B. Vacancy. Any vacancy on the Board shall be filled pursuant to the Act. C. Compensation. Unless otherwise permitted by the PID Act, only Trustees who are residents of the District may be compensated for services as Trustee. Such compensation shall be in accordance with the Act. D. Voting. Unless otherwise prohibited by Utah Code, all votes of the board shall be by majority vote of Trustees that are present constituting a quorum. E. Conflicts of Interest. Trustees shall disclose all conflicts of interest. Any Trustee who discloses such conflicts in accordance with 17D-4-202 and 67-16-9, Utah Code, shall be entitled to vote on such matters. F. Not a Resident. Trustees that are not residents within the District must be an officer or agent of Petitioner, City, or County, respective to the Board position they are serving and be a registered voter at the individual’s primary residence. G. No Liability of City or County. Actions by the Appointed Trustees from the City or County shall not be construed so as to create any responsibility or liability on the part of the City or County in the event of default by the District. VII. RESERVED VIII. FINANCIAL PLAN A. General. The District shall be authorized to provide funding for the design, acquisition, construction, installation, relocation, and/or redevelopment of the Improvements from all or any portion of its Pledged Revenues and by and through the proceeds of Debt to be issued by the District (but only in accordance with the Act and the Participation Agreement). The parties acknowledge the supervisory authority of the mayor of the County in the CCRZ Act over the convention center portions of the Project. The Financial Plan for the District shall be to issue such Debt as the District can finance from Pledged Revenues. The total Debt shall be permitted to be issued on a schedule and in such year or years as the District determines and phased to serve the Project as it occurs. The District may also rely upon various other revenue sources authorized by law. These will include the power to assess Fees, penalties, or charges, including as provided in Section 17D-4-304, Utah Code, as amended from time to time. B. Applicable Debt Requirements. 4932-8939-7795, v. 5 Debt, when issued, will comply with all relevant requirements of this Governing Document, the Participation Agreement, State law, and Federal law as then applicable to the issuance of public securities. H. Maximum Debt Mill Levy. (a) The “Maximum Debt Mill Levy” shall be the maximum mill levy the District is permitted to impose upon the taxable property within the District for payment of Limited Tax Debt shall be 0.015 per dollar of taxable value of taxable property in the District; provided that such levy shall be subject to adjustment as provided in Section 17D-4-301(8), Utah Code. (b) Such Maximum Debt Mill Levy may only be amended pursuant to a Governing Document Amendment and as provided in Section 17D-4-202, Utah Code. I. Debt Imposition Term. Each Bond issued by the District shall mature within Thirty-One (31) years from the date of issuance of such Bond. Bonds issued by the District shall not be secured by the fee- simple property Petitioner is leasing from the City’s Community Reinvestment Agency. In addition, absent written consent of the City, no mill levy may be imposed for the repayment of Debt after a period exceeding Forty (40) years from the first date of imposition of the mill levy for any Debt (the “Maximum Debt Mill Levy Imposition Term”). J. Maximum Administrative Mill Levy. The “Maximum Administrative Mill Levy” shall be the maximum mill levy the District is permitted to impose upon the taxable property within the District shall be 0.0005 per dollar of taxable value of taxable property in the District; provided that such levy shall be subject to adjustment as provided in Section 17D-4-301(8), Utah Code. Such Maximum Administrative Mill Levy may be imposed by the District but only for the purposes allowed in the Act. K. Debt Repayment Sources. (a) The District may impose a mill levy on taxable property within its boundaries as a source of revenue for repayment of debt service. The District may also rely upon Assessments and other various other revenue sources authorized by law. At the District’s discretion, these shall include other Pledged Revenues, penalties, or charges, including as provided in Section 17D-4-304, Utah Code, as amended from time to time. Except as described in Section VIII.C(a), the debt service mill levy in the District shall not exceed the Maximum Debt Mill Levy or, the Maximum Debt Mill Levy Imposition Term, except for repayment of General Obligation Debt. (b) Any Assessments shall be repayable in accordance with the provisions of the Assessment Act. (c) The District shall not be permitted to charge an End User the costs of any portion of the Improvements for which such End User has already paid or is presently 4932-8939-7795, v. 5 obligated to pay through any combination of mill levy, Assessment, property taxes, or impact fees. This provision shall not prohibit the division of costs between mill levies, Assessments, property taxes, or impact fees, but is intended to prevent double taxation of End Users for the costs of Improvements. (d) On an annual basis, any Pledged Revenue that are not necessary to meet all obligations with respect to the District’s outstanding Debt, including mandatory prepayments, the cost to issue and repay Bonds including principal, interest, and redemption premium, and an excess revenues reserve up to the lesser of $50 million for each series of Bonds or two times the aggregate annual debt service for each respective series of Bonds (in addition to any Bond funded reserve and/or any non-Bond funded surplus fund if the City approved such surplus fund and amount), the District shall reimburse any relevant taxing entities their proportional share of the sales and use tax increment and property tax increment. B. Debt Instrument Disclosure Requirement. In the text of each Bond and any other instrument representing and constituting Debt, the District shall set forth a statement in substantially the following form: By acceptance of this instrument, the owner of this Bond agrees and consents to all of the limitations in respect of the payment of the principal of and interest on this Bond contained herein, in the resolution of the District authorizing the issuance of this Bond and in the Governing Document for creation of the District. Similar language describing the limitations in respect of the payment of the principal of and interest on Debt set forth in this Governing Document shall be included in any document used for the offering of the Debt for sale to persons, including, but not limited to, a developer of property. C. Security for Debt. Approval of this Governing Document shall not be construed as a guarantee by the City of payment of any of the District’s obligations; nor shall anything in the Governing Document be construed so as to create any responsibility or liability on the part of the City in the event of default by the District in the payment of any such obligation. Additionally, nothing in this Governing Document shall be construed to create any responsibility or liability on the part of the City in the event of a default by SEG Real Estate, LLC and Smith Entertainment Group, LLC under the Participation Agreement if such default were to cause the District to default in the payment of any such obligations. D. District’s Operating Costs. As permitted under the Act, the cost of acquiring land, engineering services, legal services, and administrative services, together with the estimated costs of the District’s organization and initial operations, will be eligible for reimbursement from Debt proceeds. 4932-8939-7795, v. 5 In addition to the capital costs of the Improvements, the District will require operating funds for administration and to finance the planning and cause the Improvements to be constructed. The first year’s operating budget is anticipated to be derived from Petitioner contributions and ultimately Pledged Revenues. IX. ANNUAL REPORT A. General. The District shall be responsible for submitting an annual report to the City Mayor’s Office no later than 210 days following the end of the District’s fiscal year. Additionally, no later than 60 days after the closing of any Bonds issued by the District, the District shall provide a written report to the City detailing the bond issuance, including the amount of the Bonds, terms, interest rate, and security. B. Reporting of Significant Events. The annual report shall include information as to any of the following: 1. Proposed boundary changes made to the District’s boundary as of last day of the prior fiscal year; 2. List of current interlocal agreements, if changed (to be delivered to the City upon request); 3. Names and terms of Board members and officers; 4. District office contact information, if changed; 5. Rules and regulations of the District regarding bidding, conflict of interest, contracting, and other governance matters, if changed 6. A summary of any litigation which involves the District or the Improvements as of the last day of the prior fiscal year, if any; 7. General status of the District’s construction of the Improvements and listing all facilities and improvements constructed by the District; 8. A table summarizing total debt authorized and total debt issued by the District broken down by source of funds servicing the debt; 9. Financial statements of the District for the most recent completed fiscal year (such statements shall be audited if required by bond documents or statute); and 10. Notice of any uncured events of default by the District, which continue beyond a ninety (90) day period, under any Debt instrument. 4932-8939-7795, v. 5 1. Current year budget including a general description of the Improvements anticipated to be constructed in such year; and 2. Any inability of the District to pay its obligations as they come due, in accordance with the terms of such obligations, which continue beyond a ninety (90) day period. X. DISSOLUTION Upon an independent determination of the Board that the purposes for which such District was created have been accomplished or are no longer needed to construct the Improvements, the District shall file petitions for dissolution, pursuant to the applicable State statutes. In no event shall a dissolution occur until such District has provided for the payment or discharge of all of their outstanding indebtedness and other financial obligations as required pursuant to State statutes and disbursal of any assets of such District. XI. DISCLOSURE TO PURCHASERS Within thirty (30) days of the Office of the Lieutenant Governor of the State of Utah issuing a certificate of creation, the Board shall record a notice with the Recorder of the County. Such notice shall (a) contain a description of the boundaries of the District, (b) state that a copy of this Governing Document is on file at the office of the City, (c) state that the District may finance and repay Improvements through the levy of a property tax, assessments or any other Pledged Revenue; (d) state the Maximum Debt Mill Levy of the District; and (e) if applicable, state that the debt may convert to general obligation debt and outlining the provisions relating to conversion. Such notice shall further be filed with the City. XII. CAPITAL PLEDGE AGREEMENT The form of the Capital Pledge Agreement, relating to the pledge of certain sales and use taxes from the City to the District, is attached hereto as Exhibit D. The District shall approve the Capital Pledge Agreement in the form attached as Exhibit D at its first Board meeting after its creation. The City Council shall approve the Capital Pledge Agreement, subject to any mutually agreeable edits recommended by the City Attorney’s Office, in the form attached as Exhibit D at the City Council meeting approving the Governing Document. EXHIBIT A-1 Legal Description of the Initial District Boundaries All of Block 79, Plat "A", Salt Lake City Survey, according to the official plat thereof on file and of record in the Salt Lake County Recorder's Office. 2 4932-8939-7795, v. 5 EXHIBIT A-2 Legal Description of the Annexation Area Boundaries All of Block 68, Plat "A", Salt Lake City Survey. That portion of 100 South Street between Block 68 and Block 77, Plat “A”, Salt Lake City Survey. All of Block 77, Plat "A", Salt Lake City Survey. That portion of 200 West Street between Block 77 and Block 78, Plat “A”, Salt Lake City Survey. All of Block 78, Plat "A", Salt Lake City Survey. That portion of 300 West Street between Block 78 and Block 79, Plat “A”, Salt Lake City Survey All of Block 79, Plat "A", Salt Lake City Survey. That portion of Deseret Avenue within Block 79, Plat “A”, Salt Lake City Survey. 3 4932-8939-7795, v. 5 EXHIBIT B [Published copy of the Act to be attached after the Governing Document’s adoption by City Council] 4 4932-8939-7795, v. 5 EXHIBIT C Initial District and Annexation Area Boundary Map Initial District 5 4932-8939-7795, v. 5 Annexation Area EXHIBIT D Capital Pledge Agreement Item F1 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 MOTION SHEET CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Austin Kimmel Public Policy Analyst DATE:April 1, 2025 RE: ORDINANCE: ASSESSMENT ORDINANCE FOR THE SALT LAKE CITY CENTRAL BUSINESS IMPROVEMENT ASSESSMENT AREA - 25 (CBIA-25) MOTION 1 – ADOPT ORDINANCE I move that the Council accept and adopt the findings and recommendations of the Board of Equalization for the Central Business Improvement Assessment Area (CBIA-25). I further move that the Council adopt an ordinance confirming the equalized assessment list, levying the assessment, and related matters. MOTION 2 – NOT ADOPT I move that the Council not adopt the ordinance, and proceed to the next agenda item. CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Austin Kimmel Public Policy Analyst DATE:April 1, 2025 RE: ORDINANCE: ASSESSMENT ORDINANCE FOR THE SALT LAKE CITY CENTRAL BUSINESS IMPROVEMENT ASSESSMENT AREA - 25 (CBIA-25) ISSUE AT-A-GLANCE The City Council will consider adopting an ordinance at its April 1 formal meeting to authorize the Salt Lake City Central Improvement Assessment Area (CBIA). Two special assessments would be reestablished if adopted: one for downtown economic promotion and another for holiday lighting on certain streets. The consideration of this ordinance is the last step by the City Council in establishing the CBIA-25 special assessment area, which the administration anticipates starting May 19, 2025. The assessment is projected to raise $5,991,192 over the area's three-year life. The ordinance would do two primary things: 1. Accept the recommendations of the Board of Equalization for 21 of the overall parcels in the assessment district based on the reasons outlined below for protest or adjustment. 2. Confirm the equalized assessment list and levy an assessment for the Central Business Improvement Assessment Area (CBIA-25). Goal of the briefing: To learn about the final steps in reestablishing two special assessment districts for downtown economic promotion activities and special holiday lighting for specific properties, and review the recommendations from the Board of Equalization. POLICY QUESTIONS 1. The Council may wish to inquire about communication strategies that the Department of Economic Development or the Downtown Alliance plans to implement to keep property owners informed about the services and benefits they can expect to receive from the CBIA-25 assessment. 2. The Council may wish to have a conversation about the current nonworking holiday lights and request the administration find ways to repair the lighting infrastructure. Item Schedule: 1st Briefing: July 2, 2024 Council Action: July 9, 2024 Public Hearing: Sept. 3, 2024 2nd Briefing and Council Action: Nov. 12, 2024 3rd Briefing: Feb. 4, 2025 4th Briefing and Final Adoption Vote: April 1, 2025 Page | 2 BOARD OF EQUALIZATION RECOMMENDATIONS A Board of Equalization (BOE) held two rounds of hearings to consider objections and arguments from property owners protesting proposed assessments to be levied or relating to the amount of benefit or cost of the proposed assessment. The Council appointed the BOE in November 2024, consisting of representatives from the City Council Office, the Treasurer’s Office, and the Engineer’s Office. The BOE’s role is to consider all facts and arguments presented at the hearings and provide recommendations to the City Council. The BOE met on Jan. 7, 8, and 9 and on Feb. 18, 19, and 20 for this purpose. During the six meetings, the BOE heard from 11 property owners regarding 21 parcels. A detailed chart of specific property owner concerns and the BOE recommendations for each argument can be found below. In summary, the BOE proposes: 1.Remove holiday lighting assessment for three parcels with nonworking lights, 2.Remove the assessments for six parcels with residential, which were misidentified as hotels/commercial properties, 3.Reduce the assessments for eight parcels that successfully disputed valuations with the Salt Lake County Assessor, and 4.Reduce the assessment by a one-third reduction for four parcels owned by a single entity to reflect their location outside the Downtown Ambassador’s service area. The anticipated revenue of $5,991,192 is $196,467 less than the initially projected amount of $6,187,659, after taking into account the recommended adjustments from the Board of Equalization. The administration notes it is confident that the budget will be sufficient to deliver the services promised by the special assessment area. However, if additional funding is required over the three-year period, other available funds may be used to meet budgetary needs. This could include any surplus remaining in existing accounts, reserves withheld, and/or reduced contractor fees. Summary of BOE Recommendations Property Address Concerns BOE Recommendation 250 and 260 E. South Temple St. The property owner was incorrectly assessed a holiday lighting fee when no holiday lighting exists. The property owner also expressed concern that the properties do not benefit from the Central Business District's economic promotion and believes the assessment does little to address other concerns in the area. The Board recommends this property not be assessed for holiday lighting. The Board also recommends upholding the base assessment as appropriate. 42 E. Exchange Pl.The property owner appeared to contest the linear footage listed on the holiday lighting notice he received. Upon further investigation, the Board determined that this parcel does not receive holiday lighting. Therefore, the Board recommends that this property not be assessed for holiday lighting. 10 W. 300 S.The property owner successfully appealed with Salt Lake County regarding the property value as determined by the County Assessor’s Office. The property owner requested that the BOE adjust the estimated CBIA assessment to reflect the updated value. The Board recommends updating the CBIA assessment amount to reflect the successful valuation appeal. Page | 3 330, 334, and 335 S. West Temple St., and 48 W. Market St. The property owner expressed support for the special assessment area but requested that the assessment amount be adjusted. The owner explained that there is a vacancy at their property and feels the assessment is too large to pass down to current tenants, which may make it more difficult to keep tenants or attract new ones. The property owner also requested that the three parcels be billed as one assessment instead of separately. The Board discussed that the Statute governing special assessment areas only enables them to adjust assessment amounts based on benefits received or proof of lack thereof and does not make provisions for hardship. Therefore, the Board recommends upholding the base assessment as appropriate. The Board learned that the owner may combine assessment charges for the three parcels, yet the amount would not change. The Board suggested that City staff contact the property owner to explain this. 151 S. State St.The property owner appeared to explain that the property is residential with no commercial space. They requested that the property not be included in the assessment area. The Board found a minor discrepancy showing an overlap of hotel properties and apartment/condo properties listed under the same property type on the Salt Lake County Assessor database. The Board recommends not including this property in the assessment area and removing two additional residential parcels. 735 and 751 W. 300 S, and 760 W. 400 S. The property owner claims there is a lack of benefit to their property due to the location of the property being at the very western edge of the CBIA-25 district. The property owner requests the boundary line be redrawn to exclude these properties. They also request a reduction in the overall assessment cost. Additionally, the property owner incorrectly received a holiday lighting assessment, while the property does not receive holiday lighting. The Board first clarified that they have no authority to redraw the boundary map and suggested that the property owner contact his Council representative to discuss this matter further. The Board recommends that the Council review this particular area of the map when it considers adopting a notice of intention to designate the CBIA in 2027 to potentially consider expanding services to this area. The Board believes that while the properties are on the edge of the assessment area, they still receive benefits. However, the Board confirmed that the parcels are not included in the Downtown Ambassador’s program service area map. Therefore, the Board recommends reducing the assessment amount by 1/3, proportionate to the Ambassador program’s share of the SAA budget, to reflect this lack of benefit. Page | 4 The Board recommends the holiday assessments be removed from the three parcels. 234, 268, and 280 S. 400 W. The property owner appeared to request that the holiday lighting assessment be removed, as the properties do not receive holiday lighting. The Board recommends the holiday assessments be removed from the three parcels. 247 and 266 W. 100 S. The property owner appeared to request that the holiday lighting assessment be removed, as the properties do not receive holiday lighting. The property owner expressed issues with litter, biowaste, and graffiti and hoped the CBIA-25 could help provide services to address these issues. The Board recommends the holiday assessments be removed from the two parcels. The Board suggested City staff connect the property owner to the Ambassador program staff and the Downtown Alliance to request services for this area. 328 and 338 S. State St. The property owner appeared to appeal the holiday assessment due to nonworking holiday lighting. Following confirmation that the holiday lighting is damaged, the Board recommends removing these parcels from the holiday lighting assessment. Further, the Board recommends removing 342 S. State St. since this property has the same issues. 175 E. 400 S.The property owner successfully appealed with Salt Lake County regarding the property value as determined by the County Assessor’s Office. The property owner requested that the BOE adjust the estimated CBIA assessment to reflect the updated value. The Board recommends updating the CBIA assessment amount to reflect the successful valuation appeal. 50 S. Main St., 51 S. Main St., and 65 S. Regent St. The property owner successfully appealed with Salt Lake County regarding the property value as determined by the County Assessor’s Office. The property owner requested that the BOE adjust the estimated CBIA assessment to reflect the updated value. The Board recommends updating the CBIA assessment amount to reflect the successful valuation appeal. ADDITIONAL & BACKGROUND INFORMATION 1. History Salt Lake City established the Central Business Improvement Area (CBIA) in 1991 to fund economic promotional activities in the downtown area. The current base assessment boundaries were most recently updated in 2022 (see below for more information about the CBIA-25 boundaries). Additionally, a separate assessment within the CBIA is designated for holiday lighting along specific properties, although not all properties within the CBIA are required to pay this holiday lighting assessment. The CBIA covers over 2,500 businesses and is assessed exclusively to commercial properties, with residential properties being exempt from these fees. Page | 6 To carry out economic promotion activities, the CBIA contracts with the Downtown Alliance to manage programs, including the Downtown Street Ambassador Program (in partnership with Salt Lake City and Visit Salt Lake), the Downtown Farmers Market, and an advertising program featuring over 730 banners and four kiosks on Main Street. 1. CBIA-25 Boundaries A. The boundaries of the base CBIA-25 assessment area are: a) North Temple from State Street to the east right-of-way line of Interstate 15 (includes parcels on both sides of the street), b) East right-of-way line of I-15 from North Temple to 400 South, c) 400 South from the east right-of-way line of I-15 to 300 East (includes parcels on both sides of the street), d) 300 East from 400 South to South Temple (includes parcels on both sides of the street), e) South Temple from 300 East Street to State Street (includes parcels on both sides of the street), f) State Street from South Temple to North Temple (includes parcels on both sides of the street). B. The Holiday Street Lighting Assessment applies to the following streets: a) 200 South between 300 West and 400 West, b) 200 South between West Temple and 200 West (south side only), c) Pierpont Street between West Temple and 200 West, d) West Temple Street between 400 South and 200 South, e) Main Street between 400 South and South Temple, f) Market Street between West Temple and Main Street (north side only), and g) State Street between 400 South and South Temple. Page | 6 3. Estimated Financial Summary for CBIA-25 The chart below is copied from page 5 of the Administrative Transmittal. Page | 7 2. Holiday Lighting Mapping Error At its Feb. 4 work session meeting, the Council received an update from Council and Economic Development staff regarding a software error that occurred with the special assessment area (SAA) noticing, which is required by State Code, and corrective steps to ensure transparency and compliance with state law. Please see Attachment B for the Feb. 4 Council Staff Memo. In summary, during the Board of Equalization meetings in January, mapping errors were discovered in the holiday lighting assessment, resulting in incorrect assessments of some properties for holiday lighting where holiday lighting does not exist and the failure to assess other properties that do have holiday lighting. This error did not affect the CBIA base assessment for economic promotion activities. In response to the error, in consultation with the Attorney’s Office and Board of Equalization, the Economic Development Department reissued assessment notices to the correct properties and held a new series of Board of Equalization meetings in February. Economic Development continues to work with the City’s Information Management Services (IMS) Department to prevent future mapping and notice. ATTACHMENTS A.Administrative Transmittal B.CBIA and Board of Equalization Update Staff Memo, Feb. 4 Item F2 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 MOTION SHEET CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Kira Luke Budget & Policy Analyst DATE:April 1, 2025 RE: Interlocal Agreement for 2025 Municipal General Election Services MOTION 1 – ADOPT I move that the Council approve a resolution for an election services interlocal cooperation agreement between Salt Lake City and Salt Lake County for the 2025 municipal general election. Staff note: This year, the municipal elections are being held for Council Districts One, Three, Five, and Seven. There is no primary. The Council selected ranked choice voting as the election method. MOTION 2 – NOT ADOPT I move that the Council proceed to the next agenda item. COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Nick Tarbet, Policy Analyst DATE:February 4, 2025 RE:Mixed-Use Zoning Consolidation PLNPCM2024-00707 PROJECT TIMELINE: Briefing: February 4, 2025 Set Date: February 18, 2025 Public Hearing: March 4, 2025 Potential Action: TBD ISSUE AT-A-GLANCE The Council will receive a briefing on a proposal to update the City's zoning ordinance and zoning map by consolidating up to 27 existing commercial, form-based, and mixed-use zoning districts into six new mixed-use (MU) districts. The goal of these amendments is to simplify zoning regulations, improve clarity of language, and incorporate missing design standards. The new mixed-use districts will be similar to the current districts but will have changes to setbacks, building height, lot coverage, and permitted land uses. Goal of the briefing: Review the proposal, including Policy Questions (p. 4), and information provided following the planning commission discussion. Evaluate whether additional feedback needs to be provided prior to the Council’s public hearing on March 4. OVERVIEW OF CHANGES The Planning transmittal includes many attachments that succinctly summarize and visualize the draft ordinance. Council staff included them as an attachment to this memo for quick access. Attachment A – Zoning Standards / Illustrations for the MU Zones Attachment B – Overlay Summary for CG M1 Attachment C – Parking Regulations for MU zones Attachment D – Neighborhood Level Maps of MU Zones Planning staff also developed a project page that provides extensive information on the project. It is a helpful tool for anyone looking to get a deeper understanding of the proposed zoning amendments. Additionally, they developed an interactive map showing the new MU zones' locations throughout the city. Page | 2 The Planning Commission held ten briefings on the MU consolidation project. Two public hearings were held, and a positive recommendation was ultimately forwarded to the City Council. Since this item was forwarded to the Council, some unrelated zoning petitions that impact a few of the properties identified in this zoning petition were approved. The planning staff is updating the ordinance and zoning maps to reflect those changes. Policy question #3 below provides additional background. MORE DETAILED VIEW OF KEY CHANGES According to the transmittal letter (page 3), “consolidating these zoning districts will change the regulations that apply to thousands of properties within the city (approximately 6,300 directly affected properties).” Pages 6-11 of the Transmittal Letter include a summary of each zone, Their purpose, and general zoning regulations. Below is a general outline of the key changes. See the Transmittal Letter and attachments for more in-depth information on the various zones. 1. Land Use Tables Several amendments will be made to the Land Use tables. Many of the minor amendments to the existing tables include consolidated definitions, the removal of zoning districts being consolidated into the new land use table, and the removal of some land uses. 2. Creates 6 new zoning districts and rezones properties to the new zoning districts. Attachment A is a fact sheet outlining the zoning standards for each new district, such as height, setbacks, building size, and design standards. The interactive map also shows the new MU zones' locations throughout the city. MU-2 MU-3 MU-5 Consolidated Zones o Residential Business (RB), o Small Neighborhood Business (SNB) o Neighborhood Commercial (CN) Consolidated Zones o Community Business (CB) o R-MU-35 (Residential Mixed Use - 35) Consolidated Zones o Form-Based Urban Neighborhood 2 (FB-UN2), o Corridor Commercial (CC), o Community Shopping (CS), o Form-Based Special Purpose Corridor Edge (FB- SE), o Residential Mixed Use 45 (R-MU-45) o Transit Station Area Transitional (TSA-UN-T) o Mixed Use (MU) o South State Street Corridor Overlay (SSSC) Page | 3 MU-6 MU-8 MU-11 Consolidated Zones o Form-Based Urban Neighborhood 2 (FB-UN2) o Form Based Special Purpose Corridor (FB-SE) o Sugar House Business District 2 (CSHBD-2) o Residential Office (RO) o Transit Station Area - Urban Core Transition (TSA-UC-T) o Special Purpose Transition (TSA-SP-T) o Mixed Use Employment Center Transition (TSA- MUEC-T) Consolidated Zones o Residential Mixed Use (RMU) o Transit Station Area - Mixed Use Employment Center Core (TSA-MUEC-C) o Special Purpose Core (TSA- SP-C) o Urban Neighborhood Core (TSA-UN-C) Consolidated Zones o CG (General Commercial), o FBMU-11 (Form-Based Mixed-Use 11) o TSAUC- C (Transit Station Area Urban Center Core) o CSHBD-1 (Sugar House Business District) 1.Establishes the general provisions that apply to all MU zones See Attachment A MU Building Types Cottage, Urban House, Two-Family Row House Storefront, Vertical Mixed-Use, Multi Family Residential Heights The number in the title of each district generally identifies the number of building stories allowed by that zone. (some flexibility is granted for enhanced ground floor uses) Setbacks Make consistent across the various zoning designations, Require larger buffers and setbacks when next to a low-scale single-family/two- family Landscape buffers A 10-foot landscape buffer is required when any of the MU zones abut single- family, two-family zones, and multifamily zones step-back requirements between higher-scale MU zones and zones under 35 feet in height, including MU-2 and MU-3 zones, Lots/Buildings Without Public Street Frontage Allow lots without public street frontage. Helps with deep lot configuration Open Space In addition to the basic yard setback requirement, a general standard of 10% of the lot area will be required for open space Minimum dimension of 15’ x 15’ to ensure useability Mid-block Walkways All zones are proposed to require the implementation of a mid-block walkway on a property if one has been identified in an adopted City plan. 2.Create a Transitional Overlay for M-1 and CG properties Page | 5 See Attachment B for details The zoning amendments would create a significant number of nonconforming uses.  A proposed “Transitional Overlay” would generally allow a selection of more intensive commercial and light industrial uses in these areas, allowing for reduced design standards while including buffer and landscaping requirements. (Click on the interactive map link to see the transitional overlay boundaries) POLICY QUESTIONS 1. Effective Date—In the past, when the Council adopted significant zoning amendments that impacted many different zones and properties, a delayed effective date was included so that projects that may be caught up in the amendments, could either finish under the current zoning standards or use the new ordinance. Council staff received one request for the Council to consider delayed implementation for this petition. Does the Council support including a delayed effective date for the MU zoning consolidation? 2. Drive-through concerns – a constituent reached out to the City about the impacts the proposed amendment would have on a project they are working on that includes an existing drive- through. Planning staff provided the following options to address the request for consideration: a. Modify the land use table language to allow for financial institutions to have drive- throughs in the MU11 zone. b. Allow the drive-through use at that location as approved through a development agreement o It would have to go to the Planning Commission and the City Council for approval. The Council may wish to discuss these options with Planning staff and, if either option is supported, request that staff make the change in the final ordinance. 3. Post Planning Commission updates. After the planning commission forwarded a positive recommendation, staff noted some technical and substantive changes that needed to be made to the draft ordinance. The planning staff is seeking Council direction on the following items, outlined on pages 15- 16 of the Transmittal Letter. The Council will be asked to conduct straw polls to determine if these changes are included in the final ordinance. a. Add “Contractor’s Yard/Office (Indoor)” use to the Transitional Overlay as a Conditional Use. i. Staff recommends including this use. b. Richard Street was unintentionally included as an area requiring a high activity use due to a code provision in the recently adopted MU-8 code. i. Staff recommends removing “Richard Street, from Harvard Avenue to Kelsey Avenue” as an area requiring an “Enhanced Active Ground Floor Use.” c. Delete the requirement for a 6' walkway between multiple buildings that are over 75' in façade length. Page | 6 i. Staff recommends deleting this requirement d. Add a prohibition on mature coverage counting toward the required park strip vegetation coverage of 33% in MU-8 and MU-11. i. Staff recommends applying the requirement to other high-intensity MU zones, the MU-8 and MU-11 e. Add a transition period to the MU zone adoption (see policy question #2 above) i. Staff recommends that the City Council include a transition period of 9 to 12 months where developers could still utilize the prior regulations. f. Modify the height limit for "private directional signs" from 4' to 8'. i. Staff recommends increasing the height so that private parking related signs can be at eye level. g. Include the proposed mapping changes on pages 16-20 Staff recommends including the following changes in the final draft. i. FB-UN2 Corners to MU-6 in Central 9th ii. Residential/Office (RO) Zone to MU-8 East Downtown and West Temple iii. Green Street/2100 South iv. Federal Property at 2100 S/Redwood Road PUBLIC ENGAGEMENT 1. Pages 20-23 of the Transmittal Letter outlines the public process. Starting in April 2024, the public outreach included eight walking tours in various neighborhoods around the city, open houses, various community events such as town halls, presentations to recognized community organizations, and 10 briefings before the planning commission, along with 2 public hearings. COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY25 TO:Council Members FROM: Austin Kimmel, Sylvia Richards, and Allison Rowland Budget and Policy Analysts DATE: April 1, 2025 RE: Budget Amendment Number 5 of Fiscal Year (FY) 2025 Budget Amendment Number Five includes 20 proposed amendments, including $2,855,699 in revenues and $9,109,320 in expenditures. The amendment proposes changes in six funds and moving 2.0 general fund positions from the Mayor’s Office; 1 position will be moved to Public Lands, and one will move to IMS. With the adoption of Budget Amendment #5, the available fund balance will be 20.81 percent of the FY 2025 Adopted Budget. If the item is adopted as proposed, then Fund Balance would be $37,533,578 above the 13% minimum target. Fund Balance While the increased General Fund Balance is positive for the City’s fiscal position, it’s important to note that the annual budget has used an escalating amount of one-time General Fund Balance revenues to fill the annual budget structural deficit. The chart to the right was provided by the Finance Department to show how much General Fund Balance was used in the past seven fiscal years. Note the City’s current fiscal year is FY2025 so the FY2026 column is only for discussion purposes to show the impact of the trend continuing. The Council may wish to discuss with the Administration policy goals for the use of General Fund Balance in the next annual budget such as whether reducing the reliance on one-time funding to fill the structural deficit. Tracking New Ongoing General Fund Costs for the Next Annual Budget The table of potential new ongoing General Fund costs for the FY2026 annual budget is available as Attachment 1 at the end of this document. The total new ongoing costs from Budget Amendments 1 through 5 would be $6,381,054. Note that of the total cost, $4.1 million would be needed if the Homeless Shelter Cities State Mitigation grant is not available for FY2026. Project Timeline: Consent: April 1, 2025 1st Briefing: April 1, 2025 2nd Briefing (if needed) & Public Hearing: April 15, 2025 Potential Adoption Vote: May 6, 2025 UPDATED Fund Balance Chart The Administration has provided an updated revenue chart. Based on revenue data across the first part of the fiscal year, it is proposed that revenues will be approximately $8.59 million above the FY 2025 Adopted Budget. UPDATED Fund Balance Chart The table below presents updated Fund Balance numbers and percentages based on the proposed changes included in Budget Amendment #5. As mentioned earlier, with the complete adoption of Budget Amendment #5, the available fund balance will increase to 20.81 percent of the FY 2025 Adopted Budget. If all the items are adopted as proposed, then Fund Balance would be $37,533,578 above the 13% minimum target. A summary spreadsheet outlining proposed budget changes is attached, which can be modified as determined by the Council. Impact Fee Unallocated “Available to Spend” Balances and Refund Tracking The table below is current as of February 28, 2025. Impact fees must be encumbered or spent within six years of the City receiving them. Expired impact fees must be returned to the entity who paid them with interest over the intervening six years. Type Unallocated Cash “Available to Spend” Next Refund Trigger Date $ Expiring in FY2027 Fire $750,546 More than two years away - Parks $8,807,661 More than two years away - Police $1,625,193 More than two years away - Transportation $3,682,347 More than two years away - Note: Encumbrances are an administrative function when impact fees are held under a contract PUBLIC PROCESS: Public Hearing Section A: Grants Requiring No Staff Resources A-1: 400 South Bridge Reconstruction over Jordan River – ($3,5000,000 – one-time from the County Quarter Cent Fund Balance) The Administration is requesting $3.5 million from the County quarter cent sales tax fund balance to fully fund the 400 South bridge over the Jordan river. $4 million was allocated in FY 25, bringing the total to $7.5 million. Based on structural analysis, the bridge is at risk of being further downgraded, meaning emergency vehicles and UTA buses may not be allowed on it until it is fixed. Funding it now would enable sooner construction. The remaining fund balance in that account would be approximately $2 million if this item is approved. For more background on the inspection of the bridge and other funding for the project please refer to the Administration’s transmittal. A-2: Withdrawn prior to transmittal A-3: Community Land Trust Program Funds Allocation – ($310,000 – one-time from Community Land Trust) The Administration is requesting funding from dormant program income fund dollars to repair various homes in the Community Land Trust program. In previous discussions the Council indicated a willingness to allocate funding within the program, acknowledging that the Administration was working on a more comprehensive policy for the CLT. The administration indicates they expect to transmit that in April. Policy question – the Council may wish to schedule a more in depth discussion on the Community Land Trust when that policy is received from the Administration, particularly if there are budget adjustments that could/should be made for the FY 26 budget. A-4: Hive Pass Funding for Passes and Continuing Greenbike Membership – ($135,000 – one-time from the General Fund Due to increased usage of the HIVE pass, the administration is requesting $114,000 to help keep up with demand. The budget was reduced a few years ago to align with usage, but between FY 24 and FY 25, usage increased. This will bring the total general fund amount to $464,000, which is based on projected usage. The Administration indicates it will include this increased cost in the upcoming budget year. The Administration is also requesting $8,500 to cover related GreenBike memberships for HIVE pass users. For the last seven years UTA has been paying for these memberships. However, current UTA leadership is not interested in continuing the investment. The Administration is planning to include this in the budget for the next three years. Policy question – The Council may wish to discuss whether it is interested in the City providing the GreenBike memberships, and if the Council is interested in funding this service long-term. Council may wish to ask the Administration if UTA was approached to identify additional funds. A-5: Expanding Scope of FY25 Funded Restroom Study to Include Assessment of All Public Restrooms – ($75,000 one-time from the General Fund) Note: Public Lands coordinated with CAN on Items A-5&6. The Administration is proposing to allocate $75,000 of the $500,000 set aside by the Council for “Public Hygiene Pilot program” to expand the scope of the Fairmont Park Restroom Study. $100,000 was allocated in FY 25, and the additional $75,000 will enable the study to be City-wide. Policy question – the Council may wish to ask the administration for more information about what is expected to be included in the scope and if there are any specific policy goals they wish to achieve with this study? A-6: Public Hygiene Pilot Program – ($425,000 – one-time from the General Fund) Note: Public Lands coordinated with CAN on Items A-5&6. The Administration is requesting the Council release funding for the Public Hygiene pilot program, originally allocated in FY 2025. The new amount would be $425,000. The Administration is working on releasing an RFP for proposals. The Administration’s transmittal indicates that the RFP would ask for providing “new and/or increased hygiene and outreach services for unsheltered individuals experiencing homelessness in SLC. Proposals can include mobile services or improving/expanding existing stationary facilities.” Policy question – the Council may wish to evaluate whether reducing the funding from the original $500k allocated would potentially reduce the scope of impact of this pilot project. The Council could elect to make up the funding from fund balance. A-7: Additional Funding for Construction Mitigation – ($270,000 – one-time from the General Fund) Due to high demand, the Administration is requesting $270,000 from general fund balance to add to the construction mitigation grants administered by Economic Development. When the Council increased this funding in the FY 25 budget, several Council Members expressed an interest in fully funding requests, given the increased construction activity in the City. In FY 25 the Council allocated $600,000. Economic Development anticipates $270,000 in additional funding will fully address requests for the remainder of the fiscal year. Additionally Economic Development indicates that they will make these funds available to businesses that have been awarded funds in previous rounds. This funding would allow an additional 90 small businesses to receive grants. Staff asked the Administration if the new amount of $870,000 should be included in the FY 26 budget. The Administration indicates that they expect most major street construction projects to be wrapped up by the next fiscal year. Policy question – the Council may wish to have further discussion about other anticipated construction projects that may have business impact, to inform the FY 26 budget. A-8: Animal Services Contract Increase True-Up – ($398,281 – one-time from the General Fund) The Administration is requesting additional funding for the contract with Salt Lake County for animal services. The Contract was finalized after the FY 25 budget was adopted, which is why it wasn’t included. The new contract pricing is $398,281 more than the current budget, and is due largely to inflationary increases, and does not include any service level increases. The Council may wish to ask the Administration if there is a way to adjust the timing of contract negotiations so they can be included in the timing of the annual budget process. A-9: FY25 Water Stabilization Monthly Fixed Fee (Water for $281,965); FY25 Water Stabilization Monthly Fixed Fee (Sewer for $65,495); FY25 Water Stabilization Monthly Fixed Fee (Franchise Fee Tax $72,752) for a total of $420,212 one-time funds from the General Fund The Administration is requesting $420,212 of funding from general fund balance to cover the cost of the water stabilization fee charged to the City as a water user (water, sewer, and stormwater) – calculated based on each meter, and the size of each meter. The Public Lands department was not aware of this fee proposal at the time of the FY 25 budget. Public Utilities will likely have a new rate structure in time for the FY 26 budget request, at which time Public Lands will evaluate the budget need. A-10: Storm Water Impact Fees ($36,091 one-time from the General Fund; $269,654 one-time from the General Fund and $269,654 from the CIP Fund) The Administration is requesting one-time funds to cover $305, 745 in stormwater impact fees relating to Parks/CIP projects that were not included in those original project budgets – including Sugar House Park Pavilion and several other CIP projects funded in FY 25. The Administration is evaluating how to operationalize including these fees in project budgets in the future. For background information on the City’s stormwater fee and fun, please refer to the Administration’s transmittal. A-11: Public Safety Plan – Westside Parks Security Guards – ($59,430 one-time from the General Fund) The Public Lands department is requesting $59,430 to add additional security detail in westside parks, as contemplated in the Public Safety plan proposed by the Mayor in January 2025. This funding would provide funding for services from April-June. Policy question – The Council may wish to discuss with the Administration whether funding for security services will be included in the FY 26 budget, and if so, the duration of those services. A-12: Updating Four Sections of the Impact Fees Facilities Plan – ($80,000 one-time from the CIP Fund) The Administration is requesting $80,000 from the various impact fee accounts to update all sections of the Impact Fee Facility Plan – Fire, Police, Parks and Transportation. The Council previously approved an update to the transportation in FY 24. This would enable all sections to be updated. The last comprehensive update was in 2016. Updated plans ensure that impact fees are set based on realistic/current cost estimates for improvements relating to growth, and that growth estimates are based on current data. State code governs the impact fee facility plan process, including allowable uses for impact fees. The analysis must be completed by a consultant approved in the impact fee analysis field. A-13: Mayor’s Office Transfer of 2 FTE’s to Two Departments – (Budget Neutral) The Administration is proposing to shift two FTEs out of the Mayor’s office into other City departments: -One is a Constituent Services and Office Coordinator (N19), which is currently occupied, to support the administrative functions of the Public Lands Department, in a project coordinator role. -One is a vacant Community Liaison position (E26), currently focused on language access, that would move to IMS and reclassified as a Communication Specialist I (E27). Due to the reclassification, the position would cost more annually, but for FY 25 would be absorbed by IMS. This is a budget amendment request because the dollar amounts would need to be moved from the Mayor’s office to Public Lands and IMS. Policy question – The Council may wish to ask the Administration for an update on City-wide communication strategy, including any relevant metrics. A-14: Ranked Choice Voting Education and Outreach – ($50,000 one-time from the General Fund) As discussed during the Council’s December discussion on Ranked Choice Voting, the Administration is proposing to add $50,000 in one time money from the general fund balance to support outreach efforts relating to this voting process. This is in addition to funds that are anticipated to be included in the FY 26 budget. Adding funds in this budget amendment would enable efforts to get underway immediately rather than waiting for July 1 to begin. The Council straw polled support of this approach for the 2025 election cycle. A-15: Additional Funding for City Hall Security Guards – ($700,000 ongoing from the General Fund) The Administration is proposing to add $700,000 in funding from general fund balance to account for increased security needs at the City and County building and overall Civic Campus (Washington Square, Library, Public Safety Building). This would be in addition to the $916,000 approved in FY 26, for a total of $1.616 million. The Administration indicated this likely reflects the actual ongoing need, and will plan to include it in the FY 26 budget. Section B: Grants for Existing Staff Resources (None) Section C: Grants for New Staff Resources (None) Section D: Housekeeping (write-ups from Administration’s transmittal) D-1: Engineering Reappropriation for Fencing – ($63,953 one-time from the General Fund to the CIP Fund) One-time funding was provided to Public Service's Engineering Division in FY 2024 in a late-fiscal year budget amendment for fencing adjacent to the North Temple bridge over the Jordan River, Archuleta Bridge, and Folsom Trail. This funding was to be used for temporary fencing associated with a CIP project but could not be transferred to CIP because it didn’t meet certain CIP criteria requirements. Instead of going to CIP, the budget was loaded into Engineering Operations. However, because Engineering was not fully aware of the circumstances associated with the appropriation, the funds were not encumbered and subsequently were not rolled over to the FY 2025 budget. This housekeeping initiative is to reappropriate the $63,953.04 in funds that lapsed to the Fund Balance so the invoice from Mountain States Fence can be paid. D-2: Streets Mini Planer Replacement – ($394,000 one-time from the General Fund) Earlier this year a planer used for the Roadway Preservation Program was damaged in an at-fault accident. A repair estimate was obtained by Fleet, however, it was predicted to exceed the value of the asset. After discussion with the manufacturer, leadership at Fleet and Streets determined it made fiscal sense to send the damaged planer out to an auction, with the hope of finding an interested buyer who may want it for spare parts. Given the robust demands of the Roadway Preservation Program, it is essential for the Streets Division to replace the planer, which is used in removing and replacing old asphalt. The Roadway Preservation Program is an umbrella title that includes among other sub-programs Asphalt Mill & Overlay. This would enable each asphalt team to have access to a dedicated planer, eliminating the need to rely on the availability of another team's equipment, which significantly limits productivity and operational efficiency. Replacing the planer will ensure the Streets Division can operate at full capacity. Since the City is self-insured, Streets must cover the cost of the replacement equipment. Public Services proposes using $394,000 in end-of-year savings be transferred from its division budget to the Fleet Division to cover the replacement cost. This end-of-year savings exists largely due to the mild winter that occurred this season, which resulted in lower weather-related expenses including the salt budget, equipment rentals, and fleet fuel. D-3: Fire Wildland/Hurricane Deployment Reimbursements – ($1,013,067 one-time reimbursement to the General Fund and $38,558 one-time reimbursement to the Fleet Fund) The Fire Department has been deployed several times this fiscal year to three wildland fires and two hurricanes. The department expects to receive a full reimbursement of costs to the General Fund and a portion to Fleet. The costs are itemized below: • California Wildland Park Fire (August 2024) - $195,075 • California Wildland Line Fire (September 2024) - $165,412 • Utah Task Force 1/USAR Hurricane Helene (September 2024) - $121,861 • Utah Task Force 1/USAR Hurricane Milton (October 2024) - $148,926 • California Wildland Palisades Fire (January 2024) - $420,351 Total Reimbursement - $1,051,625 Staff inquired about federal funding uncertainties and the Fire Department indicates their counterparts have promised a 75% advance on reimbursements. They will continue to monitor the situation. D-4: Cultural Core Funding – ($241,000 one-time from the General Fund) This funding is being requested to replace funding that fell to fund balance at the end of fiscal year 2024. The amount was housed in Non-Departmental and was meant to be expended in the amount of $50,000 annually to supplement the existing $250,000 annual funding level for the Cultural Core contract. The new total amount the City has committed to pay Cultural Core annually is $300,000. If the reappropriation is approved, then the funds would be encumbered through a purchase order process. In FY 2023, the City Council approved the Cultural Core Surplus Funds be added to the city’s $250,000 annual contribution. The $291,000 surplus would be divided, adding $50,000 to the city’s contribution which would then total $300,000 for five years. In the sixth year $41,000 would be added to the city’s contribution. D-5: Cultural Core Funding Move – ($250,000 – ongoing from General Fund) In Budget Amendment #3 of FY 2024, Cultural Core funding in the amount of $250,000 was moved from the Department of Economic Development to Non-Departmental. When the budget for FY 2025 was being developed, this budget was initially captured in the Economic Development Department. However, it should have been captured in the Economic Development Non Departmental Cost Center. This amendment formally corrects that discrepancy. Section E: Grants Requiring No New Staff Resources E-1: BEMS – Bureau of Emergency Medical Services – ($6,003 – Misc. Grant Fund) This amendment is to recognize the City's funding availability for an increase in an existing grant award of $6,003. In August of 2024, the Salt Lake City Fire Department was awarded $9,642 through the Bureau of Emergency Medical Services. In February of 2025 that award was increased by $6,003 which gave SLC a total award of $15,645. Original Public Hearing was held March 5, 2024. Section F: Donations (None) Section G: Consent Agenda G-1: Utah State University Wildlife Foundation – ($85,356 – Misc. Grant Fund) Utah State University has been awarded a grant by the National Fish and Wildlife Foundation as part of their pollinator program. Part of this grant has been awarded to the Trails and Natural Lands division of the Public Lands Department of Salt Lake City as a subaward. Salt Lake City will use the grant to accomplish three main objectives: 1) Species Development. 2) Seedling Production and 3) Native Seed Farm. The goal of these objectives is to supply the Utah Pollinator Habitat Program and the city’s Trails projects with seedlings which will be used to enhance and restore public lands along trails with pollinator habitat to the benefit of the urban population. The Public Hearing was held Feb. 4, 2025. G-2: Utah Department of Natural Resources/Forestry, Fire, and State Lands – ($63,255 – Misc. Grant Fund) The Utah Division of Forestry, Fire and State Lands (FFSL) has received funds from the Utah State Legislature to be administered for vegetation improvement projects on sovereign lands of Utah. The proposed uses of the funds were brought before a grant selection committee and approved. The FFSL has awarded Salt Lake City Corporation for the implementation of a Jordan River invasive species control and restoration project. The Public Hearing was held Feb. 4, 2025. G-3: State of Utah: Department of Environmental Quality Drinking Water Board – 4th Avenue Well – ($800,000 – Misc. Grant Fund) Public Utilities applied for and was awarded a planning loan through the Drinking Water Board. The loan amount is up to $800,000 for planning and design costs to address PFAS contamination in the 4th Avenue Well. In addition to awarding the loan, the State will also forgive 100% of the principal cost of the loan to pay for an engineering study to address the contamination issue. While this is a loan and not a grant, the mechanism for receiving the money is similar to a grant. Typically, when receiving a loan, the loan recipient receives all the money at once and thus can spend funds once the money is received. In this instance, the funder (lender) is requiring Salt Lake City to initially incur the expenses and then submit reimbursement requests to receive the money. The agreement for this loan is that 100% of the principal will be forgiven and there will be no expectation of repayment. Due to the unique requirements of this loan, the management of funds will follow grant approval and reimbursement processes. The Public Hearing was held Feb. 4, 2025. G-4: Salt Lake City Bike Share Expansion – ($121,236 – Misc. Grant Fund) Transportation Division received a grant from the Utah Department of Transportation for $614,790 in August of 2022. In October of 2024, UDOT increased that amount by $121,236 for a new total of $735,026. This item is to obtain approval for the additional $121,236. This grant was awarded to Salt Lake City to expand the Bike Share program in collaboration with Green Bike. The original public hearing for the grant was March 22, 2022. ATTACHMENTS Ongoing Costs to the General Fund (See chart below) ACRONYMS CAFR – Comprehensive Annual Financial Report CIP – Capital Improvement Program CDBG – Community Development Block Grant Program CLTPF – Community Land Trust Program Funds FFSL – Forestry, Fire and State Lands FOF – Funding Our Future FTE – Full time Employee / Equivalent FY – Fiscal Year GF – General Fund HUD – Housing and Urban Development IMS – Information Management Services PFAS – Per- and polyfluoroalkyl substances UDOT – Utah Department of Transportation ATTACHMENT 1 Council Request: Tracking New Ongoing Costs to the General Fund Council staff has provided the following list of potential new ongoing costs to the General Fund. Many of these are new FTE’s approved during this fiscal year’s budget amendments, noting that each new FTE increases the City’s annual budget costs if positions are added to the staffing document. Note that some items in the table below are partially or fully funded by grants. If a grant continues to be awarded to the City in future years, then there may not be a cost to the General Fund but grant funding is not guaranteed year-over-year. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #1 Item A-1 Attorney’s Office Organizational Structure Change $722,888 3 FTEs: 1 City Prosecutor 1 Senior City Attorney 1 Deputy Director of Administration City Prosecutor $178,278 for 9 months/$237,704 annually Senior City Attorney Class 39 - $157,635.74 for 8 months/$236,454 annually Deputy Director of Administration Class 40 - $186,547 for 9 months or $248,730 annually. At the time of publishing this staff report, the cost to lease office space is unknown. The cost could be more or less than the current budget under the soon-to-be terminated interlocal agreement with the District Attorney’s Office. #1 Item D-8 $171,910 1 FTE: Capital Asset Planning Financial Analyst IV position Inadvertently left out of the Mayor’s Recommended FY2025 Budget. Position would be dedicated to impact fees compliance tracking and reporting for new state requirements. Impact fees fully reimburse the General Fund for the position’s cost. $2,945,957 grant funding* 4 FTEs: 3 Officer positions 1 Sergeant position *Amount of grant funding needed in order to fully cover the ongoing costs including the new FTEs. #1 Item E-1 Homeless Shelter Cities Mitigation Grant FY25 Costs currently paid for by the Homeless Shelter Cities Mitigation Grant in FY2024 that might be shifting to the General Fund in FY2025 $662,760 For ongoing costs related to 15 existing FTEs; the grant funds a total of 23 FTEs $662,760 is needed for ongoing equipment for all 15 officers. The Administration is checking whether existing budgets could absorb some of these costs. #2 Item A-2 Enhanced Security at Justice Court $200,000 A security report identified an issue needing to be addressed immediately. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #2 Item A-3 Community Oriented Policing Svcs or COPS Hiring Grant from U.S. Dept. of Justice for 2 new Sergeants & 10 new Officers FY 24-25 $1,285,642 in FY2026 For ongoing costs related to hiring 2 new Sergeant FTEs and 10 new Officers in the Police Dept. Ongoing costs include grant salary match plus vehicles, supplies & equipment. After the 48 month grant period ends, the estimated annual cost to retain the 12 police officers is $2,071,325. #2 Item A-4 Vehicles, Equip- ment & Related Police Officer costs not covered by the Homeless Shelter Cities State Mitigation Grant FY24-25 $498,692 is ongoing For ongoing costs related to the hiring of new officers Ongoing costs include ongoing salary increases, supplies, body cameras, vehicles, and computers. #1 & #2 D-7 Prosecutor’s Office Changes since Budget Amendment #1 (-$280,279) back to General Fund Balance 1 FTE Removed City Prosecutor FTE removed Reverses a portion of budgetary impacts & actions outlined in BAM#1, Item A-1. #3 A-2 IMS – Add 1 full-time Cybersecurity Engineer and convert 1 part-time Graphic Designer into full-time using funds from the elimination of additional part-time positions. $173,484 ongoing for Cybersecurity Engineer position Adds 1 Cybersecurity Engineer Position .50 Graphic Design position was requested but NOT approved by the Council. #5 A-4: Hive Pass Funding Additional Passes and Continuing Greenbike Membership $135,000 for additional Hive passes ($114,000) and continuing Greenbike membership ($8,500) None #5 A-8: Animal Services Contract Increase True- Up $398,281 ongoing Price increase of old contract plus increase of new contract. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #5 A-15: Additional Funding for City Hall Security Guards $700,000 ongoing for City Hall Security Guards None TOTAL $7,216,054 39 total FTEs of which 16 are New FTEs Note that of the total cost, $4.1 million would be needed if the Homeless Shelter Cities State Mitigation grant is not available for FY2026