Transmittal - 8/22/2022
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
CITY COUNCIL TRANSMITTAL
__________________________________ Date Received:
Lisa Shaffer, Chief Administrative Officer
Date Sent to Council:
TO: Salt Lake City Council DATE: August 19, 2022
Dan Dugan, Chair
FROM: Mary Beth Thompson, Chief Financial Officer
SUBJECT: Budget Amendment #2
STAFF CONTACTS: John Vuyk, Budget Director (801) 535-6394
Mary Beth Thompson (801) 535-6403
Bill Wyatt, Executive Director, Department of Airports (801) 575-2408
Brian Butler, Chief Financial Officer, Department of Airports
(801) 575-2923
DOCUMENT TYPE: Budget Amendment Ordinance
RECOMMENDATION: The Administration recommends that, subsequent to a public hearing,
the City Council adopt the attached ordinance amending the FY2022-23 adopted budget.
BUDGET IMPACT: This proposed budget amendment will have no impact on the City’s
General Fund budget. No General Fund revenues or expenditures will be required to finance this
budget amendment because 100% of the capital and operating expenditures will be paid from the
various types of revenues generated at Salt Lake City International Airport (the “Airport). Such
revenues include the landing fees, terminal rentals, and other fees paid by the airlines serving the
Airport, as well as various revenues generated from sources other than the airlines. Non-airline
revenues are derived from sources such as parking, rental cars, food and beverage concessions,
news and gift concessions, cargo revenues and various types of rental income. In addition, when
the design for the capital improvements contemplated in this budget amendment is completed,
some of the proposed improvements will be funded through supplemental federal grant funding
from the Federal Aviation Administration (“FAA”).
BACKGROUND/DISCUSSION:
This budget amendment addresses capital expenditures for (1) construction of a 16-gate
expansion of the B Concourse, (2) design for utilities at the Tooele Valley Airport, (3) design for
future parallel taxiway U & V to the north of Concourse B, and (4) an operating expenditure
8/22/2022
8/22/2022
Lisa Shaffer (Aug 22, 2022 13:23 MDT)
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
regarding the non-represented employee compensation budget plan previously approved by City
Council.
1. New SLC Airport Phase IV 16-Gate Expansion.
Over the past several years, enplanements at the Airport have grown at a faster rate than
forecasted. Even with severe disruptions due to the pandemic, flights are back to nearly pre-
pandemic levels and increasing. To better accommodate this growth and realize significant cost
savings through use of the workforce already mobilized for the current phase of construction, the
Department of Airports is seeking this budget amendment to move up the construction timeline
to extend Concourse B, as well as other related facilities.
Given the unexpected increased demand, the Department of Airports consulted with the Program
Management Team (“PMT”) for the Airport Redevelopment Program, including the architecture
team HOK, regarding the preliminary design and engineering for a 16-gate expansion of
Concourse B. This expansion would completely build out Concourse B, giving the Airport 47
gates on Concourse A and 47 gates on Concourse B, for a total of 94 gates. Increasing the
number of gates allows for more flights to accommodate growth and potential new entrants to
utilize the Airport, which typically results in more competitive pricing and lower costs for the
flying public.
As the Department of Airports, the PMT, and HOK started to explore design of the facilities and
come up with cost estimates, the Department of Airports leadership met with the airlines
utilizing the Airport to verify there is current demand to expedite construction of these gates.
After meeting with all the airlines, the airlines requested a total of 22 additional gates at the
Airport, which is more than can be built at this time and even more than the proposed Phase IV
16-gate expansion of Concourse B.
Since demand for gates is greater than the financial and logistical capacity for what can be built
at this time, the Department of Airports is also designing a robust permanent hardstand on level 1
on the east end of Concourse B as part of the 16-gate expansion, which would serve growth until
a future Concourse C can be built. These hardstand positions would be utilized on a demand
basis only and would create flexibility including accommodating new airlines to the Airport
(which is also required under federal grant assurances). In addition, the Department of Airports
is undertaking obtaining cost estimates and a financial capacity analysis for design and
construction of a 700-foot central tunnel extension to the north of Concourse B, which would
facilitate building half of the tunnel to a future Concourse C and constructing a maintenance
facility and the logistical feasibility to actually place an automated people mover (“APM”) in the
central tunnel if the Department of Airports has the financial capacity to put in an APM prior to
Concourse C being constructed. While the central tunnel extension is being built, it would take
out of service two gates with jet bridges which is why it’s advantageous to do it now versus
waiting for the entire tunnel to be built to concourse C as the airlines have need for all 94 gates
based on forecasted 2027 levels. To maintain the construction schedule, the Department of
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
Airports needs to amend the construction budget of the New SLC Airport by $683 million so
procurement can happen this fall and winter of 2022.
To protect the City’s interest and be assured the airlines requesting additional gates will actually
utilize the gates (thereby allowing the City to recoup its capital expenditures), part of the
discussion with the airlines is that for an airline to have preferential use of a future gate, it will
need to sign an extended airline use agreement (lease) (“AUA”) through at least 2034. Currently,
most of the existing AUAs expire in June of 2024.
2. Design of Future Parallel Runways U & V to Utilize Federal Grant Funding.
Another capital project that was not contemplated in the Department of Airports’ original FY23
capital improvement (“CIP”) budget is the design of a future parallel taxiways U & V to the
north of Concourse B. The Airport was awarded approximately $25 million dollars in
infrastructure funding from Congress as part of the Bi-Partisan Infrastructure Law (“BIL”) in the
Spring of 2022. The total cost of the dual taxiways will be approximately $110 million, and
federal funding will pay for approximately 75% of those costs over the next five years. Based on
the size and scale of the project and the timing of needing to use federal funding, the Department
of Airports is asking for a budget amendment of $3.9 million to design the first half of the
project, which includes a road realignment as well as a tunnel for aircraft to allow for
unobstructed aircraft movement. The construction costs for the first half of the project will be
formally submitted as part of the Department of Airports’ FY24 budget request.
3. Design of Utilities to Service Tooele Valley Airport/Bureau of Land Management.
The last CIP-related budget adjustment requested is for the design of sewer and water facilities
out at the Tooele Valley Airport (“TVY”). The Department of Airports has been working closely
with the Salt Lake City Public Utilities team as well as various entities in Tooele, including the
City of Grantsville to explore options and possibilities to extend sewer and culinary water out to
TVY. Currently, there are Department of Airports’ operations offices, skydiving operations, and
the Bureau of Land Management’s fire-fighting facilities at TVY, which have limited water and
sewer resources. Design funding of $900,000 is being requested through this budget amendment
and construction can be included and occur in the Department of Airports’ FY24 budget year.
The Department of Airports recently executed a 20-year agreement where the BLM is investing
millions of dollars to build facilities at the TVY to help fight wildfires, and is committed to
securing upgraded water and sewer resources to support the BLM’s investment and fire-fighting
operations.
4. Previously Approved Non-Represented Employee Compensation Study.
Lastly, the Department of Airports is requesting an operating expense budget amendment for the
nine months of funding for the non-represented employee compensation study that was
previously approved by City Council for the entire City as part of the FY23 budget. Based on the
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
timing of the Department of Airports’ budget presentation and its required presentations of the
budget to the Airport Advisory Board and the airlines, the Department of Airports did not have
the specific information available to include this request in the Department of Airports’ FY23
budget presented to City Council. This request is to formally include the increased compensation
for certain non-represented employees that was previously identified in the study into the
Department of Airports’ FY23 budget and approved by City Council.
An ordinance and a summary spreadsheet document outlining proposed budget changes are
attached. The Administration requests this document be modified based on the decisions of the
Council.
PUBLIC PROCESS: Public Hearing
SALT LAKE CITY ORDINANCE
No. ______ of 2022
(Second amendment to the Final Budget of Salt Lake City, including
the employment staffing document, for Fiscal Year 2022-2023)
An Ordinance Amending Salt Lake City Ordinance No. 32 of 2022 which adopted the
Final Budget of Salt Lake City, Utah, for the Fiscal Year Beginning July 1, 2022, and Ending
June 30, 2023.
In June of 2022, the Salt Lake City Council adopted the final budget of Salt Lake City,
Utah, including the employment staffing document, effective for the fiscal year beginning July 1,
2022, and ending June 30, 2023, in accordance with the requirements of Section 10-6-118 of the
Utah Code.
The City’s Budget Director, acting as the City’s Budget Officer, prepared and filed with
the City Recorder proposed amendments to said duly adopted budget, including the amendments
to the employment staffing document necessary to effectuate the staffing changes specifically
stated herein, copies of which are attached hereto, for consideration by the City Council and
inspection by the public.
All conditions precedent to amend said budget, including the employment staffing
document as provided above, have been accomplished.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. Purpose. The purpose of this Ordinance is to amend the final budget of
Salt Lake City, including the employment staffing document, as approved, ratified and finalized
by Salt Lake City Ordinance No. 32 of 2022.
SECTION 2. Adoption of Amendments. The budget amendments, including any
amendments to the employment staffing document necessary to effectuate the staffing changes
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specifically stated herein, attached hereto and made a part of this Ordinance shall be, and the
same hereby are adopted and incorporated into the budget of Salt Lake City, Utah, including any
amendments to the employment staffing document described above, for the fiscal year beginning
July 1, 2022 and ending June 30, 2023, in accordance with the requirements of Section 10-6-128
of the Utah Code.
SECTION 3. Filing of copies of the Budget Amendments. The said Budget Officer is
authorized and directed to certify and file a copy of said budget amendments, including any
amendments to the employment staffing document, in the office of said Budget Officer and in
the office of the City Recorder which amendments shall be available for public inspection.
SECTION 4. Effective Date. This Ordinance shall take effect upon adoption.
Passed by the City Council of Salt Lake City, Utah, this _____ day of __________, 2022.
________________________
CHAIRPERSON
ATTEST:
______________________________
CITY RECORDER
Transmitted to the Mayor on __________________
Mayor’s Action: ____ Approved ____ Vetoed
_________________________
MAYOR
ATTEST:
_______________________________
CITY RECORDER
(SEAL)
Bill No. _________ of 2022.
Published: ___________________.
Salt Lake City Attorney’s Office
Approved As To Form
___Jaysen Oldroyd________
Jaysen Oldroyd
Initiative Number/Name Fund Revenue Amount
Expenditure
Amount Revenue Amount
Expenditure
Amount
Ongoing or One-
time FTEs
1 New SLC Airport Phaxe IV 16 Gate
Expansion Airport - 683,000,000.00 One Time -
2 Design of Future Parallel Runways U & V to
Utilize Federal Grant Funding Airport - 3,901,000.00 One Time -
3 Design of Utilities to Service Tooele Valley
Airport/ Bureau of Land Management Airport - 900,000.00 One Time -
4 Previously Approved Non-Represented
Employee Compensation Study Airport - 1,017,000.00 One Time -
Section E: Grants Requiring No New Staff Resources
-
Consent Agenda #
Total of Budget Amendment Items - 688,818,000.00 - - -
Initiative Number/Name Fund Revenue Amount
Expenditure
Amount Revenue Amount
Expenditure
Amount
Ongoing or One-
time FTEs
Total by Fund Class, Budget Amendment #7:
Airport Fund Airport - 688,818,000.00 - - -
- - -
Total of Budget Amendment Items - 688,818,000.00 - - -
Administration Proposed Council Approved
Fiscal Year 2022-23 Budget Amendment #2
Council ApprovedAdministration Proposed
Section I: Council Added Items
Section A: New Items
Section D: Housekeeping
Section F: Donations
Section G: Council Consent Agenda -- Grant Awards
Section C: Grants for New Staff Resources
Section B: Grants for Existing Staff Resources
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Fiscal Year 2022-23 Budget Amendment #2
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
FY 2022-23
Adopted Budget BA #1 Total BA #2 Total BA #3 Total BA #4 Total BA #5 Total Total Revenue
General Fund (FC 10)425,537,408 425,537,408
Curb and Gutter (FC 20)3,000 3,000
DEA Task Force Fund (FC 41)1,762,560 1,762,560
Misc Special Service Districts (FC 46)1,700,000 1,700,000
Street Lighting Enterprise (FC 48)4,302,222 4,302,222
Water Fund (FC 51)108,196,368 108,196,368
Sewer Fund (FC 52)196,630,907 196,630,907
Storm Water Fund (FC 53)13,476,733 13,476,733
Airport Fund (FC 54,55,56)302,268,600 - 302,268,600
Refuse Fund (FC 57)21,458,105 21,458,105
Golf Fund (FC 59)11,560,676 11,560,676
E-911 Fund (FC 60)3,925,000 3,925,000
Fleet Fund (FC 61)28,826,992 28,826,992
IMS Fund (FC 65)30,523,167 30,523,167
County Quarter Cent Sales Tax for
Transportation (FC 69)9,600,000 9,600,000
CDBG Operating Fund (FC 71)4,670,517 4,670,517
Miscellaneous Grants (FC 72)34,158,918 34,158,918
Other Special Revenue (FC 73)300,000 300,000
Donation Fund (FC 77)2,920,250 2,920,250
Housing Loans & Trust (FC 78)16,217,000 16,217,000
Debt Service Fund (FC 81)32,037,989 32,037,989
CIP Fund (FC 83, 84 & 86)35,460,387 35,460,387
Governmental Immunity (FC 85)3,964,523 3,964,523
Risk Fund (FC 87)54,679,000 54,679,000
Total of Budget Amendment Items 1,344,180,322 - - - - - 1,344,180,322
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Fiscal Year 2022-23 Budget Amendment #2
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
Total Expense BA #1 Total BA #2 Total BA #3 Total BA #4 Total BA #5 Total Total Expense
General Fund (FC 10)425,537,408 425,537,408
Curb and Gutter (FC 20)3,000 3,000
DEA Task Force Fund (FC 41)1,762,560 1,762,560
Misc Special Service Districts (FC 46)1,700,000 1,700,000
Street Lighting Enterprise (FC 48)5,757,825 5,757,825
Water Fund (FC 51)132,752,815 132,752,815
Sewer Fund (FC 52)255,914,580 255,914,580
Storm Water Fund (FC 53)18,699,722 18,699,722
Airport Fund (FC 54,55,56)384,681,671 688,818,000 1,073,499,671
Refuse Fund (FC 57)24,952,672 24,952,672
Golf Fund (FC 59)14,726,016 14,726,016
E-911 Fund (FC 60)3,800,385 3,800,385
Fleet Fund (FC 61)30,426,032 30,426,032
IMS Fund (FC 65)30,523,167 30,523,167
County Quarter Cent Sales Tax for
Transportation (FC 69)9,458,748 9,458,748
CDBG Operating Fund (FC 71)4,958,433 4,958,433
Miscellaneous Grants (FC 72)26,614,153 26,614,153
Other Special Revenue (FC 73)300,000 300,000
Donation Fund (FC 77)287,250 287,250
Housing Loans & Trust (FC 78)25,779,253 25,779,253
Debt Service Fund (FC 81)33,658,558 33,658,558
CIP Fund (FC 83, 84 & 86)35,460,387 35,460,387
Governmental Immunity (FC 85)3,169,767 3,169,767
Risk Fund (FC 87)54,679,000 54,679,000
- Total of Budget Amendment Items 1,525,603,402 - 688,818,000 - - - 2,214,421,402
Budget Manager
Analyst, City Council
Contingent Appropriation
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