HomeMy WebLinkAboutCouncil Provided Information - 12/2/2025CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM: Jennifer Bruno, Lehua Weaver,
DATE: December 2, 2025
RE: FY 2026 Budget Amendment #3
PROJECT TIMELINE:
ISSUE AT-A-GLANCE
Budget Amendment #3 includes three proposed amendments (grants) , including $4,139,705 in revenues. The
amendment proposes changes in one fund. No General Fund expenses are proposed in Budget Amendment No.
3; therefore, if the three grants are adopted, the available fund balance will remain 12.71 percent of the FY 2026
Adopted Budget, or $1,498,933 below the 13% minimum target.
The Administration indicates that an update on impact fees will be provided with the next budget amendment
transmittal.
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Revenue Update
The Administration provided the following revenue numbers (see below), and indicated the Sales, Use & Excise
decrease is due to natural gas revenue from Enbridge (municipal energy tax). The revenues are trending lower,
and staff will continue to monitor this revenue line item and are looking into final rates that were adopted
across the last few years.
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Fund Balance Chart
No General Fund expenses are proposed in Budget Amendment No. 3; therefore, the available fund balance will
remain at 12.71 percent of the FY26 Adopted Budget. For context, at budget adoption, fund balance was at 12.93
percent.
ADDITIONAL & BACKGROUND INFORMATION
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Section A: New Items
None
Section B: Grants for Existing Staff Resources
None
Section C: Grants for New Staff Resources
None
Section D: Housekeeping
None
Section E: Grants Requiring No New Staff Resources
E-1: COPS Technology & Equipment Grant - Subaward from Davis County ($224,000 - Misc.
Grant Fund)
The Davis County Sheriff's Department applied for and received a COPS grant in the amount of $1.5 million
from the Department of Justice. They are sub-awarding $659,000 to Salt Lake County, $165,000 to Tooele
County and $224,000 to Salt Lake City $224,000 as reimbursement for the purchase of equipment. The grant
will pay for license plate reader cameras which will be posted on traffic light poles at major intersections to and
from the city, such as Beck Street. The Public Hearing for this grant was held November 18, 2025.
E-2: Jordan River Water Trail River Restoration & Recreation Project Grant ($666,000 - Misc.
Grant Fund)
This grant helps fund the removal of hazardous vegetation from the Jordan River's riverbed, banks and canopy,
ensuring a safe, navigable waterway while improving habitat quality. The first phase, completed between 2022-
2024, focused on a full sweep of the riverbed, removing decades worth of dead and downed trees. Following
completion of this phase of the project, canoes and kayaks are now able to navigate the full length of Salt Lake
City’s portion of the river without obstacles. The current phase will address riverbanks and tree canopy
management, with the goal of reducing hazards from unstable trees and preventing organic debris from entering
the river. Public Lands is using $135,000 of operational funds as a required match. These funds will be used to
employ a contractor to do the required work. The Public Hearing for this grant was held October 21, 2025.
E-3: FY26 Homeless Shelter Cities Mitigation Grant – ($3,249,704 – Misc. Grant Fund)
The City was awarded funds from an annual formula driven grant which the state provides for homeless shelter
mitigation. The City has received this grant each year since FY 2020. The state allocates funding each year to
local governments with homeless shelters within their boundaries. The grant provides financial assistance to
help cover the expenses related to providing shelter for the unhoused. The total of this award is $3,249,704.89,
an amount determined by an allocation formula outlined in Utah State Code and will primarily cover the
ongoing personnel costs of 15 SLCPD officers, 3 SLCPD Sergeants, and 1 SLCPD Lieutenant. In addition, the
grant will cover overtime and personnel costs for winter overflow shelter response approximately 7,000 hours.
In past years, the grant provided funding for the Homeless Engagement and Response Team (HEART), as well
as subawards to the Downtown Alliance and Volunteers of America (VOA), in addition to Police staff and
equipment. This will be the first year the grant will solely fund Police personnel. The Public Hearing
for this grant was held July 8, 2025.
Section F: Donations
None
Section G: Council Consent Agenda – Grant Awards
None
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Section I: Council Added Items
None
1. Ongoing Costs to the General Fund
COPS – Community Oriented Policing Services
CAFR – Comprehensive Annual Financial Report
FTE – Full time Employee / Equivalent
FY – Fiscal Year
GF – General Fund
HEART – Homeless Engagement and Response Team
IMS – Information Management Services
VOA – Volunteers of America
Attachment 1: 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
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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
Employ
ee
(FTEs)
Notes
TOTAL $209,414
Budget Amendment #3
Overview of Budget Amendment
FINANCE DEPARTMENT
The amendment proposes changes in the grants fund only, with a total revenue increase of
$4,139,705 and a corresponding expenditure increase of $4,139,705.
Section E: Grants Requiring No New Staff Resources
E-1: COPS Technology and Equipment Program - $224,000 (Police)
E-2: Jordan River Water Trail River Restoration & Recreation Project - $666,000 (Public Lands)
E-3: Homeless Shelter Cities Mitigation - $3,249,704.89 (Police)
Budget Impact
FINANCE DEPARTMENT
No financial impact to General Fund with this Budget Amendment
Fund Balance: 12.71%
Revenue Update w/ Transmittal
Revenue Update – Through October 2025
Revenue
FY26 Annual
Budget
FY26 Amended
Budget Projection
Amended Variance
Favorable/(Unfavorable)
Property Taxes 148,580,334 148,580,334 148,580,334 -
Sales, Use & Excise Taxes 126,026,000 126,026,000 125,326,000 (700,000)
Franchise Taxes 17,220,000 17,220,000 17,220,000 -
Total Taxes 291,826,334 291,826,334 291,126,334 (700,000)
Charges For Services 6,821,820 6,821,820 5,650,105 (1,171,715)
Fines & Forfeitures 3,085,827 3,085,827 3,064,533 (21,294)
Interest Income 9,000,000 9,000,000 9,000,000 -
Interfund Service Charges 34,569,169 34,569,169 34,578,896 9,727
Intergovernmental Revenue 6,205,000 6,205,000 6,157,468 (47,532)
Licenses 21,847,694 21,847,694 21,890,354 42,660
Miscellaneous Revenue 3,838,663 3,838,663 4,098,992 260,329
Parking Meter Revenue 3,273,255 3,273,255 4,017,803 744,548
Parking Tickets 2,200,000 2,200,000 2,200,000 -
Permits 18,981,859 18,981,859 19,407,472 425,613
Property Sale Proceeds - - 23,428 23,428
Gain on Property Dispositions - - 272 272
Rental & Other Income 1,201,460 1,201,460 1,283,011 81,551
Operating Transfers In 24,780,192 24,780,192 24,780,192 -
Total W/O Special Tax 135,804,939 135,804,939 136,152,526 347,587
Sales Tax Addition 1/2%58,000,000 58,000,000 58,000,000 -
Total General Fund 485,631,273 485,631,273 485,278,860 (352,413)
FINANCE DEPARTMENT
Revenue Update
(-) Sales, Use and Excise Tax:
Decrease due to natural gas tax
Mild weather, subdued prices based on industry trends
(-) Charges For Services:
Due to reduction in Police Secondary Employment
FY26 Budget was developed during contract negotiation
Correlated to expenditures, Budget Neutral
(+) Miscellaneous Revenue:
Fire Reimbursement Palisades Fire and NM Flooding
(+) Parking Meter Revenue:
Increased due to increase to rates and hours
(+) Permits:
Increase due to building permit related activities
Questions