City Council - Regular Meeting

All righty. Good evening. Welcome to our city council meetings for Wednesday, May 13th.

If you'll bear with us tonight before we start a regular meeting, we do have to handle three other quick I don't know if they'll be so quick tonight, but three other meetings as part of our process tonight. We're going to start tonight with our community development and renewal agency um meeting. So, we're going to call that meeting to order and we're going to start with item 2.1, discussion and consideration of a resolution to amend the project area boundary of the Herman Business Center CDA Blake. All right. Thank you, CDA board members. Um, this item is the uh Herman Business Center CDA subject lo or the subject property or the location for this is the new location of Juniper Crest Road where it's currently being constructed um south of Mountain View corridor and this is uh an image of the existing CDA boundary. Um you can see the totals for the areas on the left just for information. and it was created in 2015. But we're specifically going to talk about this area in the corner that I've highlighted. Um, pay attention to the road alignment. This is the original road alignment with the right angle turn um between the square and the other weird shapes. So the the new proposal, the road's actually going to cur is constructed um with curb and gutter for most of it already and it has a curve in it now. And so what that did is it amended the uh or it bisected the boundary for the the CDA. And then you can see underneath I've I've included the the proposed lots from their um land use plan in their from their MDA from the Panorama MDA. And uh the county is having a lot of heartburn as they're reviewing the preliminary plats are split between um being within the CDA and out of it. So, um, the county's recommended to us that it's easier to

remove property than to add or or swap and essentially add and and modify. So, if you wanted to modify or add it, you'd have to go and renegotiate the interlocal agreements with every one of the taxing entities, and it'd be a a long hard process. And um, it's just easier to to take it out and then just keep the uh the blue area in there. As you can see, um this is the plat or the this will be the the document that'll be recorded if this is approved. Um it'll essentially remove 12.2 acres um out of the the CDA and um staff's recommendation is to approve this and be happy to answer any questions you may have.

What are those little bumps? Are those just rightways or entries? Those are where the road entrance will go. Okay. Any any answer any questions? Any other questions? Okay. I'll make for a motion. I'll make a motion to approve resolution number R202601 approving and adopting the amended community reinvestment project area plan for the Herman Business Center project area. Motion by Teddy. Second. Second by Matt. Tara. Yes. Matt, yes. Teddy, yes. Jared, yes.

I'll vote yes. That motion carries. Item 2.2. Discussion and consideration of a resolution of the CDR to adopt the bienial tenative budget for the fiscal years beginning July 20 July 1st, 2026 and ending July 30th, 2028 and schedule a public hearing.

Thank you. So, uh, tonight I would like to go over the, uh, city manager's, uh, tenative budget for the CDR. Uh, first for the public, I just wanted to briefly go over what exactly is a CDR. Uh, so it's a separate legal entity. Um, and it's designed to eliminate blight, create jobs, or in our case for our CDAS, foster economic development. Um, the important thing with this is, um, different taxing entities elect to participate. So what they're doing is they're giving up their increased tax revenue they would receive in an area above a base amount to uh these project areas. The ultimate goal is that they will receive more money in the long term when this economic development occurs than if nothing happens with the land. That's why they they elect to participate. Um some as we go through you'll see they have low to moderate housing requirements. We have to set aside some funds for that. Um and one other thing is there are a defined number of years with these um so they don't just go on forever. Uh so to go with our uh to start our discussion the first is our oldest the Heramman Town Center CDA. We are actually currently in the town center CDA. Um the more important thing right now in terms of commercial development it is does include uh the commons at Herman Town Center which is where the new Target and Trader Joe's will be located. Um as you can see on the chart uh we are expecting to pay more in tax increment payments um in the ne upcoming years. So as uh the board probably remembers we did enter into tax incre increment agreements with elevated which is the developer of the commons at HTC. Um and I do want to note there is a transfer in on this uh from the general fund. That is the general fund contributing um the estimated sales tax that will be paid out in that um tax increment agreement. Um and I do also want to mention because there have been there has been some discussion um at the legislative level about a concern about incre having too much fund balance or

reserves. Um the reason we're showing an increase to fund balance is um because we do we can spend up to a certain percentage in admin expenses. Uh we don't hit that cap every year. So, um that's part of why there is uh increase to fund balance and then also interest income. Um I do want to note this is really the case for um almost all of our redevelopment areas. We do have options when the fund balance gets too high. My recommendation as the finance director would be is to start paying our agreements off a little earlier. Um but once again, that would be a board decision. But there there are options for this fund balance if it gets too high. Just for the record, I'm not concerned about our fund balance ever being too high. I don't know it's ever been a problem.

I 100% agree with you. Um I wish the legislature had the same feelings. Uh next is the Herman Business Center CDA. So this is located in the southeast portion of the city. Um some of the notable commercial tenants right now as the Lee's Marketplace um and the other commercial development down there. Um just as some notes, you probably see a large increase in the miscellaneous line item where it shows 40,000. Our estimate for the current year is about 26,000. Um that is interest income. We have had uh more fund balance or reserves build up in there. Um you'll notice on the tax increment payments under the expenditures there's a quite a large decrease of 42%. Uh when the board did amend the agreement with the Sorenson Foundations, uh they did agree to pay for part of the um Slick Pond um uh capital outlay that needs to occur down there. So that's reducing their tax increment, but you can see there's a capital outlay of 680,000. So we're just shifting that. Um and part of the agreement was we would reduce their tax increment by what we spend um to work on that project. Um and then once again, this is another fund that showing fund balance increases. Um that's due to uh the tax increment we received from Salt Lake County, which isn't included in the tax increment agreement we have with the Sorenson Foundations. Um and then also interest on that. Uh the next project area is the Anthem Town Center. So that is located at the uh northeast portion of the city. Um the main anchor that most people know is WCO in that area. Um this has been a fund that has actually been in a negative fund balance. We are starting to um complete our agreements uh with the developer. So we are starting to see a positive fund balance. Um you will

notice uh there is an affordable housing component to this project. So we do have to set aside 10% of our increment uh for affordable housing projects. Um, and I did put at the bottom of the slide that 829,000 is what we are forecasted um to have in that fund uh by the end of fiscal year 28. Uh then finally, our last project area is the innovation district. That is where the Bullfrog Spas is located on 118 South. Uh when we uh prepare these projections, we are assuming there is no additional development occurring in that project area. Uh so that's why you'll see the property tax being flat. Um and then the miscellaneous is interest income which uh I've estimated will be reduced. Um and uh just as an FY and we have discussed this before in other meetings. Um the fund balance will go to a participation agreement with Herman Industrial number one if it is ever triggered. Um the agreement does specify that they have to request um payment to start on that. Uh we have our economic development departments reached out and we have not heard back. Um and this is also another one with affordable housing requirements. So that will have about 137,000 and change um at the end of fiscal year 28. Um I thought I was done. I have one more. I forgot. Uh so the next one is Haramman North. So this is where the Ottoal is located. Uh this is strictly just a uh sales tax increment uh project area. Uh we have entered um into tax incentive agreements with uh different developer or with different um businesses in uh the auto mall area to uh share in sales tax that is received. Um you will notice there's a quite a

large increase in a transfers in starting in fiscal year 27. Uh we are assuming that the first dealership will open that's under construction right now and that we will start we will start making payments in fiscal year 27. Now with that are there any questions uh for me? Seen okay thank you.

Appreciate it. Kyle I'll look for a motion. Motion to approve resolution number R206-02 adopting the tenative bianual budget for the fiscal years beginning July 1st, 2026 and ending June 30th, 2028 and request to schedule a public hearing on May 27th, 2026. Okay. Motion by Matt. A second. Second by Tara. We'll go Tara. Yes. Matt, yes. Teddy, yes. Jared, yes. No vote. Yes. That motion carries. I look for a motion to adjurnn. So moved. Second. All in favor? I.

Thank you. Okay. At this point, we'll call to order now the Herman City Fire Service Area meeting. We'll start with item 2.1, budget officer intent to state that the fiscal year 2027 tenative budget for the Herman City Fire Service Area includes a proposed property tax rate increase. Kyle, thank you, mayor. So, this is a discussion item and really it is just I intend as the budget officer for the fire service area to issue a statement with the next uh item. Okay. Yeah. Okay. So, we'll go to item 2.2.

Mayor, this is to comply with the new state law. HB, if if the residents are wondering why we're doing it this way, this is a new state law. Okay. Yes, state law did change this year. Okay. 2.2 two budget officer statement that the fiscal year 2027 tenative budget for the Herman City Fire Service Area includes a proposed property tax rate increase.

Uh so um I as the budget officer of the Herman City Fire Service Area uh do make the statement that the tenative budget that will be adopted tonight includes an increase of property tax revenue totaling 205,560 um that intends to uncover the unified fire authority member fee increase for fiscal year 2027. Okay. Thank you. Item 2.3, discussion and consideration of a resolution of the Herman City Fire Service Area to adopt the bianual tenative budget for the fiscal years beginning July 1st, 2026 and ending July 30th, 2028 and schedule a public hearing on May 27th, 2026.

Thank you. So, uh I do have the uh tenative budget up on the screen. Um, so as you can see, we are anticipating an approximately 3% increase in property tax uh for the fire service area. However, we will not know the final numbers until early June. This is just an estimate uh based off of um information from the building department and prior trends. Um you will notice we do have some miscellaneous revenue coming in. Um that is a payment we received from the unified fire service area. Uh one when we left uh the area we are going to receive a portion of our fund balance that was due at the time of separation. So we do receive that u every year for a number of years. Um over on the operating side um as I mentioned there is a um $25,560 increase in our member assessment for unified fire authority. Uh you will notice on here the operating of 5 almost 6 million shows a decrease of 6%. Uh the reason being is the estimate was developed two years ago for fiscal year 26. Um and uh thankfully um the actual member fee assessment we received from unified fire is lower than that. So this is an adjustment but it is going to is projected to go up as long as the unified fire authority board adopts the uh tenative budget. Um you will notice there is a estimated contribution of fund balance of approximately 3.5 million. It's that second line under expenditures. Um so what the philosophy has been is using any excess revenue to build up a savings account for future fire stations. At the current time, we have uh uh identified the need for most likely two more stations. Uh possibly more, but the two are are in the war or two are are being planned for. Uh so

this would help uh the fire service area purchase those with cash and to minimize the amount of bonding needed. Um and you will uh notice there's a transfer out of approximately 91,000 in 27. Then it drops to uh about 69,000 in 28. So this is the fire service areas portion of the commander position that is being proposed in the police department. Um this position part of their duties will be um emergency management which would be covered under uh the fire service area. Um, with that, are there any uh questions for me?

None. I'll look for a motion. Before I make a motion, just a public consumption. This is tentative. we'll have a full public hearing and actually vote on what the, you know, budgets and increases may or may not be, whatever that whatever the date is that we're putting on here. Right. So, I'll make a motion to approve resolution number R02-26 adopting the tenative bianual budget for the fiscal years beginning July 1, 2026, ending June 30, 2028, and request to schedule a public hearing on May 27th, 2026 for formal adoption in August of 2026. Motion by Jared. Second. Second by Matt. We'll go Jared. Yes. Teddy, yes. Matt,

yes. Cara, yes. I'll vote yes. That motion carries. Item 2.4, discussion and consideration of a resolution adopting the fiscal year 2027 Herman City Fire Service Area property tax impact schedule. Kyle,

thank you. So, this is also new this year uh with the legislative changes. uh we are required to adopt and produce a property tax impact schedule that will be placed on the city website and be included um in other um in other documentation and discussions moving forward. Um it is a fairly standardized approach. There are some changes each entity can make but it does have to include uh the information presented below. Uh so there is a narrative at the top just stating um the increase of the property tax rate. So it would go from and these are uh the current numbers. They're not the numbers that will be coming out in June. So these numbers will change. Um so it'll be going from 0.001352 to 0.001385. Um that change would generate an additional $25,560. Um and the intention of this schedule is to show the public um how the operations of the service area be affected if the property tax um increase is adopted. Um so as you can see there under the table it does show the property tax rate and then our current uh tax revenue of 8,552067 with the change it would go up to 8,757627 which the difference is the requested increase and right now that would be a 2.4% increase to the overall revenue to the district. Um and then the estimated yearly increase for a primary residence of 640,000. That was last year's average home value. Uh that is received from Salt Lake County. Um assessor's office uh that would be $11.62 a year. And then a business also valued at $640,000 would be $21.12. Uh moving on to the second part of the

impact fee schedule. Um it once again it shows the proposed budget of 8,757627. If the increase isn't adopted uh it would be 8,552067. Once again that budget changes 205,560. And then there is a narrative as you can see at the bottom of what that impact is. Um it does explain that the fire service area contracts with Utah excuse me unified fire authority for fire protection. Um, our contract fee for fiscal year 2027 is currently estimated at 5,890,76, which is an increase of $25,556. Uh, the increase would be used to cover that increase in assessment from Unified Fire Authority. Um, and then the difference between the contract fee and then what we're collecting in property taxes currently will be used uh for both the building and operation of future fire stations. Um, if the proposed tax increase is not approved, uh, the fire service area will need to bond for future fire stations or bond in a greater amount, uh, which will require larger tax increases in the future. Um, in addition, future, um, tax increases will be needed for staff and operating expenditures with those stations. With that, is there any questions for me on the impact statement? None. I'll look for a motion.

Motion to approve resolution number R03-26 adopting the fiscal year 2027 property tax impact schedule for Herman City Fire Service Area. Motion by Jared, second by Teddy. Uh Jared, yes. Teddy, yes. Matt, yes. Tara, yes. And I'll vote yes. That motion carries. Again, that's not in voting to increase our tax rate. That's a different hearing. Okay. Item 2.5, discussion and consideration of a resolution acknowledging compliance with the truth and taxation notice and disclosure requirements related to the fiscal year 2027. This is madness Kyle.

Okay. Thank you. So, as you mentioned, so this is essentially to acknowledge that we have done everything we're supposed to according to state law up to this point. So, I did list it here. So one is I as the budget officer of the fire service area both made an intention and a statement that the tenative budget includes a proposed property tax rate increase that a property tax impact schedule was prepared and presented separately as a separate agenda item. Um and that resolution that the board just passed does direct that this impact schedule be available for public viewing and then also put on the public's on the city's website. And then most importantly, uh the property tax impact schedule will be presented at any public meeting where the budget is being discussed prior to June 30th. Uh so when we do our uh first public hearing next week, I will be um discussing the property tax impact schedule again. Um and then the resolution does direct me as the budget officer to let the Utah State Tax Commission and the Salt Lake County auditor know and to schedule the truth and taxation public hearing. uh since a packet was published that has been done. Um and the both the state and the county have agreed we can do our meeting August 12th at 7 p.m. which will be here in the Herman City Hall council chambers. With that, are there any questions on this motion? Can I look for a motion? Mayor, I make a motion to approve resolution number R04-26 acknowledging compliance with the truth and taxation notice and disclosure requirements related to the fiscal year 2027 tenative budget.

Okay. Motion by Matt. Second. Second by Jared. We'll go Tara. Yes. Matt, yes. Teddy, yes. Jared, yes. No vote yes. That motion carries. Okay. 2.6. discussion and consideration of a resolution stating the board of trustees intent to consider a tax rate that exceeds a certified tax rate. Thank you.

So last uh last action item. Uh so this is a resolution that really is making it clear that the board intends to consider um you know as board member Henderson mentioned at this point it is just a consideration. We are just making it publicly known that the service area is considering a tax increase. Uh once again, it's to generate an additional $25,560. Um and just to make it clear, this resolution is not approving a tax increase. It is just setting the attention. Uh the resolution right now does state to schedule the truth and taxation public hearing as soon as practical, but um it has been set for August 12th, 2026 at 7 p.m. at the Herman City Council Chambers. There will also be a public hearing in 2 weeks just on the budget itself. So there will actually be two hearings. One is just so the public can speak about the budget, but the one in on August 12th is actually when the board will consider whether to actually increase the tax rate um on August 12th.

Okay. Look for a motion. Motion to approve resolution number R05-26 stating the board's intent to consider a tax rate increase, excuse me, to consider a tax rate that exceeds the certified tax rate. Motion by Matt. Second. Second by Jared. We'll go Jared. Yes. Teddy, yes. Matt, yes. Cara, yes. I'll vote yes. That motion carries. Okay. Look for a motion to adjurnn. So moved. Second. All in favor?

I. Okay, one more. Um, Herman City Safety Enforcement Area meeting. We'll call that meeting to order now. We'll start with item 2.1. Budget officer intent to state that the fiscal year 2027 tenative budget for the Herman City Safety Enforcement Area includes a proposed property tax increase. Kyle,

so we get to do this all over again. Um so first item is mentioned uh so I do intend to state that um the Herman city safety enforcement area will uh I will be making a statement about a potential tax increase. Okay. Item 2.2 budget officer statement that the fiscal year 2027 tenative budget for the Herman city safety enforcement area includes a proposed property tax rate increase.

Thank you. So, uh, the statement is, uh, the tenative budget for fiscal year 2027 includes an increase in property tax revenue totaling $512,970 that intends to cover inflationary costs incurred by the Herman City Safety Enforcement Area. Thank you, Kyle. Okay, we'll go to 2.3 discussion and consideration of a resolution of the Herman City Safety Enforcement Area to adopt the bienial tenative budget for the fiscal years beginning July 1st, 2026 and ending Jul J June 30th, 2028 and schedule a public hearing on May 27th, 2026.

Thank you. So, uh this is a discussion of the proposed tenative budget. Um, as you can see on the first line property tax, uh, right now we are estimating a 9% uh, increase in tax revenue for fiscal year 2027. Um, I do want to note 5% of that is um, a proposed tax rate increase. The other 4% is due to growth uh, within the boundaries of the what we call HCC is how we uh, abbreviate the Herman City Safety Enforcement Area. Um you will also notice a small operating amount um that is just for regular noticing um that the uh service area needs to do and that transfers out is what the um HCC uses to fund police services for Herman City and just for public consumption. Um this is a lot of legal ease. Uh the HCC contracts with Herman City to provide police service to uh the residents of Heramman. So that's why you see a transfer that and it has to be accounted for separately. Um you will notice a transfers out restricted that is um and I've got a slide that hopefully will explain this a little bit better especially for the public that is for potent for the estimated new growth funding that will occur. Plus um we have some restricted uh we have a restricted position that we're we're still holding money aside for. Um and and just to make it clear, the HCC is the primary funding mechanism for police services. They do receive some other miscellaneous revenue, but uh this taxing district is the main uh area where they do receive their revenue. So to go over the property tax philosophy of both the Herman city and then the HCC is we get a property tax amount which is that circle at the bottom of about 11.9 million. However, we do as a philosophy

and as a policy, we split that between the base property tax revenue we receive and then any growth money we receive. How property tax works in the state of Utah is we get um the same amount of revenue as the year before plus any new growth which is difficult to explain because a lot of times uh individuals property tax notice shows their revenues their actual property tax amount they're paying is increasing every year. But if they look at at the individual lines they can see if it's if it's actually increasing or decreasing. And most likely it's because an entity is proposing a tax rate increase or has done a tax rate increase. So what we do as a philosophy is we actually restrict that growth money in a separate account and that money is only used for expenditures related to growth in the city which is mainly needing additional police officers or additional uh staff for the police department. Um and just as a reminder, property tax has no adjustment for inflation. we just get the same amount we get the prior year. They don't look at CPI's gone up 4%, we're going to increase the tax revenue you receive by 4%. It is it is just flat. Um I do want to go over some budget highlights for the police department. Um the police department budget is actually part of the city and not the HCC. The HCC is just strictly the funding mechanism. But I do think it's good for the board and especially the public that's here to understand why this property tax increase is needed or what is driving it. So um as I mentioned the majority of funding for the HCC is to pay for police department services. However uh the police department has a number of increases just due to inflations itself. Uh one is a cost of living adjustment of 3.21% that's being

proposed. And then a number of officers are eligible for a step which means they move up to the next step within the pay program. Um there is also insurance increase that um the city is facing a 5.7% for medical. Um that in itself just covering the steps cola merit insurance just for the employees um is about 391,000. Uh the operating is flat. Um that does include a a fairly significant dispatch expense which we'll we'll discuss when we discuss the city's um police budget. Um and I do want to mention uh the police department is proposing hiring three new positions. A commander and sergeant in fiscal year 27 and then a police officer in 28. However, those are funded by the new growth funding and it's not part of the tax increase because we already have reserves set aside to pay for those. Um, as you can see below, I did include the entire calculation of the balances and what's included in that. So, as you can see, we do have restricted funding uh for one position with the 24 tax increase um for a mental health specialist. We are still restricting that money and then we're adding new growth money and then reducing it for those new positions. So at the end of fiscal year 28 it is projected that there'll be about 1.5 million in that restricted fund uh to pay for new growth eligible expenses. And with that are there any questions about the uh tenative budget?

Okay. See none I'll look for a motion. Motion to approve resolution number R2601 adopting the tenative bianual budget for the fiscal year beginning July 1st, 2026 and ending June 30th, 2028 and request to schedule public hearing on May 27th, 2026 for formal adoption in August 2026. Okay. Motion by Teddy. Second. Second by Tara. We'll go Tara. Yes. Matt, yes. Teddy, yes. Jared, yes.

No, yes. That motion carries. 2.4 4 discussion and consideration of a resolution adopting the fiscal year 2027 Herma city safety enforcement area property tax impact schedule. Thank you. It is a similar uh format to the fire service area uh impact schedule. So I won't necessarily spend too much time going over it other than as you can see in the table in the middle um it does show the current tax rate um at 0.00 001440 which generates approximately 10.2 million. Uh if the tax increase is proposed that would increase the service area's revenue to 10,724210. Um the estimated increase to uh the overall tax revenue for the area is 5%. Um, and as you can see on a $640,000 residence and business, the residents would have an incre a yearly increase of $25.70 and then a business would be $4672. And then the impact of that increase um, as I mentioned in the narrative is the police department does face normal inflationary pressures. Um as we mentioned that person the personnel costs uh that I had mentioned earlier and then also we do have a philosophy I did mention in the narrative of segregating property tax revenue generated from new growth to be used solely for the effects of new growth. If the proposed property tax increase is not approved uh the HCC would be forced to draw on funds segregated for new growth expenditures to fund regular police operations. Uh the long-term effect of this is uh when new officers or other expenditures due to growth um arise, uh the HCC may not have the funds readily available uh to

fund those and would would need to do a tax increase at that time. And with that, are there any questions? And I'll look for a motion. We have 2.4. I can't even keep track. Okay. Motion to approve resolution number R26-02 adopting the fiscal year 2027 property tax impact schedule for the Haramman City Fire Service Area. Motion by Matt. Second by Teddy. We'll go Jared. Yes. Teddy. Yes. Matt. Yes. Terret.

And I'll vote yes. So that motion carries. We'll go to 2.5. discussion and consideration of a resolution acknowledging compliance with the truth and taxation notice and disclosure requirements related to the fiscal year 2027. Mayor, there was a typo on that last motion. This is the police. Got you, Jackie. All good. I will amend my motion. Motion to approve resolution number R26-02 adopting the physical year uh 2027 property tax impact schedule for the Herman City Safety Enforcement Area. Do I have a restated motion? Second. Second by Teddy. We'll go MOT roll call again. Jared, yes. Teddy, yes. Matt, yes. Cara,

yes.

No vote. Yes. Thank you for catching that. Now to 2.5 discussion and consideration of a resolution acknowledging compliance with the truth and taxation notice and disclosure requirements related to the fiscal year 2027 tenative budget. Okay. Thank you. Uh so once again this is just to acknowledge that we have complied with state law up to this point. So one is I made an attention and statement about uh that the tenative budget includes a property tax rate increase. uh a property tax impact schedule was prepared and presented separately and that um the resolution itself is directing uh the budget officer to let the tax commission and the county auditors know of the attend and to schedule a truth and taxation public hearing. Um as I mentioned uh we have scheduled those meetings after the packet was produced. Um so the meeting for the HCC will be August 12th, 2026 at 6 pm. So that is an hour prior to the fire service areas and it'll be here in the Herman City Council chambers.

Perfect. Okay, look for a motion. Motion to approve Varel's resolution number R26-04 stating the board's intent. Hold on. We're on 03. Yeah. 25. 25. One up. Nope. One up. We're on that one. Oh, this one. Yes. Why did I put check mark over there? Motion to approve. Resolution number R26-03 acknowledging compliance with the truth and taxation notice and disclosure requirements related to fiscal year 2027 tentative budget. Motion by Matt. Second. Second by Teddy will go. Yes. Matt, yes. Teddy, yes. Jared, yes.

No vote, yes. That motion carries. Now 2.6, discussion and consideration of a resolution stating the board of trustes intent to consider a tax rate that exceeds the certified tax rate. Okay. Thank you. So, uh, last action item, uh, similar to the fire service area, it acknowledges the board will consider a tax rate increase to generate an additional 512,970 in property tax revenue. And then just to mention again, it just sets an intention to do that, but it does not adopt a tax increase. Um, it also the resolution also schedules a public hearing as soon as practical. However, it has been set for August 12, 2026 at 6 p.m.

Thank you. Okay. Look for a motion. Motion to approve resolution number R26-04 stating the board's intent to consider a tax rate that exceeds a certified tax rate. Motion by Jared. Second. Second by Teddy. Uh Jared, yes. Teddy, yes. Matt, yes. Carrot, yes. Vote, yes. That motion carries. Look for a motion to adjurnn. So moved. Second. All in favor?

I Okay, let the record show that took 45 minutes to comply with new policies. Okay, so we're going to move into our general meeting finally at this point. We'll call that meeting to order and we will start with the pledge of allegiance by Justin Schmidt. Ask us all to stand and say pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Thank you, Justin. We appreciate that. Okay, we'll go to item 4.2, city council comments or recognitions. talk about last night.

Yeah, just a quick one. Mayor, um I want to say um thank you to Herman Police Department for putting on a wonderful award ceremony. Um I know it's been in the planning for some time, but the the staff um your police officers and um administrative staff have very uh enjoyed that so much. which I'm sure you've heard plenty of comments today about that, but just being recognized for um not just doing their job, but everything they did over and above their job and uh the truly amazing uh heroics they are they go to every day for us. So, appreciate Thank you.

I'll just second that. Like that was like that was my first one and that was probably something I'll I'll never forget. That was it. It was just awesome to witness uh the camaraderie of the department and um just was fantastic officers and what a department uh we have. Um guess I'll also mention that uh currently it's it's police week. It's an annual observance honoring uh law enforcement who've died in the line of duty. Um even currently right now uh as we speak there's a candlelight vigil going on at the uh in our nation's capital at the mall where the names of 363 fallen officers are being read and may we honor their ultimate sacrifice. Thank you. Okay, see nothing else from council at this point, we will go to public comment. Um, at this point, audience members may bring any item within the city's purview to the city council's attention. Comments will be limited to two minutes. State law prohibits the council from acting on items that do not appear on the agenda. Public comments for this meeting will also be conducted electronically. Any person in addressing the council may submit a comment by emailing recorder@haramman.gov or by visiting herman.gov/aggendas and minutes where there is a link to fill out an online public comment form. your statement will be incorporated into the public record. So, I've got a few forms so far we can start with. We will start with Antonio Valena. Good evening, Mayor, council members and friends before I begin my my words I would like to talk about 9.1 in your agenda. I would like to express my

deeply um congratulations to Deputy Chief Stroberg. Herman deserve his leadership. W's nerdiversity foundation presents this proposal to create an inclusive vocational space to ner diverse childrens especially those on the autism spectrum within public park in the city in Utah approximately one of every 37 children's in is in on the autism spectrum this reflects a growing reality that requires us rethinks how our public space are designed. Although therapies are support service exist, many families still do not have access to safe spaces where their childrens can play, self-regulate and fully participate in a community life. That is why we are proposing a pilot program in the city of Herman and approximately 750 square foot space divided into three areas. adaptative sensory play, a calm and emotional regulation son, and a parent and caregiver area. This space will safely accommodate between seven and 10 children at the time. The goal is to start here in Herman, expand the model to other cities throughout the year and eventually present this as a state legislative proposal next year supported by a real evidence of community impact. We believe inclusion should not remain just a concept but become a reality on our public park. Carefully adapting the space we already have so that all children can play safely with dignity and inclusive environment.

I would like to present Mario Victoria. Maria Victoria is a mother of two autism kids and director of this foundation. Okay. Sorry. Good evening, mayor, council members and and local authorities. My name is Maria Victoria Duk. I am the mother of two children of on the autism spectrum, Emmanuel and Pablo. and I lean wings and I'm lean wings diversity foundation below the proposal we are presenting today I speak from the experience of a mother for the moment when going to a park is not is not simple because I can memory sensory overly exity or having to living early that except I also speak for many other mothers I have meet along the along the way who delay love their children but often feel the public space we are not designed for them.

That is why the project is not just an idea. It comes from the delivery really or of our families from the need to to have safe places where our children can play safe regular and simply below. This these kids of the space not only support children they also provail provide brief peace of mind and sense of inclusion for the families living this every day. Thank you for listening and for considering an initiative that for us is not abstract but but deep deeply human is necessary. Thank you.

Thank you Maria. Hi my name is Juan Juan Hernandez. They asked me to do this really quick to show you how Emmanuel can calculate the day of beer next year. what what they will file your birthday the next year. So if you want to try this really quick, I know that we have very little time. So for example, council member Terra, will you tell me what is your day of beer? Yes. August 28th,

August 28. That day will be Saturday. Thank you.

Thank you, Antonio. Let's talk. Let's set up a time to talk. Okay. Um, our next comment I have is for from Leander Guabara. Good afternoon city and Lauren Palmer mayor. Um before I start I want to introduce myself. My name is Leander. I am a high school student. Um one of the leaders of the nonprofit Capitansa. Um first of all I want to introduce what does our nonprofit do? Our nonprofit uh is based with kids. We do projects and um we have a nonprofit that makes books and just focuses based on the kids here in Utah. Um something called our our nonprofit is that we do a kite festival where all the community everybody comes and fly kites and gets the opportunity to meet other schools, meet opportunities, meet and meet a lot of stuff. Um this is our third year in the Kai Festival and I want to appreciate the city especially Heramman city. Uh we started this uh Kai festival 3 years ago. Um and it all started here in Heramman. Um I want to say thanks to Lauren Palmer. Honestly, in my 10 years here in living in Utah, I've never seen such a great and positive mayor in United States. Um Lauren Palmer was the only mayor who supported us and was actually um present in our festival. Um Lauren Palmer he he loves every community. I think he's one of the best mayors and honestly personally I hope he stays in command

for many many years. His Spanish is also great by the way. Um, I know his son, um, he has a son and I know he's going to be a great man just like his father and honestly, uh, mayor. Uh, this year we're going to do our festival with Nat Natalie Hall. She's a Bluffell city mayor. Um, she gave us the opportunity to do the Kai festival over here, but I wanted to come over here and say that our festival was born here in Herman, and it will always be like that. We want to say thank you for everything and we got this um for you that we made for you and our certificate of appreciation. So I don't know if it's okay with you for me to turn it in. Thank you so much. Thank you Leander.

Everybody Leander, thank you. I appreciate that and very kind. So thank you mayor. Very kind. I don't know who paid you Antonio probably to say those things but Leander. festival is. Yes. Leander, can you tell us when the kite festival is?

Of course. Our our kite festival is like I like I said, we work with kids. We um we also do fundraisers in our festival. The main goal is for the kai festival to be uh like a festival that the whole Utah community loves, the whole city loves. And we we just want every person and everyone here in Utah. I want it to be a symbol. We want uh we have a special sa all under one sky

and that's one of the the best symbols and phrases that we have. We want every community, everybody to have fun at this festival and not only that to look for opportunities which is why we starting from now we're going to be inviting universities. We're going to invite colleges. We're going to be inviting the fire department, the police department, and the military department. So, every kid in our festival gets the opportunity to meet the programs and the stuff that the city and the state offers. Um, honestly, it's it's a festival that not only it's for fun and families can be together, but also a festival where kids and teenagers find opportunities that they don't really show um in schools. And when is it you have the Lefetcha?

Yeah, we have our festival is going to be this year on August 25th. Um, we'll be we'll let you know exactly and confirm the day, but it will be on August. So, you guys have time to make schedules and be there. We expected to be all of you and have fun and meet other officers and and police and fire departments, too. Thank you, Lamb. Thank you so much, mayor. Thank you. And thank you to the city, too. I appreciate all of you and the parks and recreation lady. They're great.

Thank you, L. I appreciate it. Thank you for your kind words tonight. Thank you, Capan Jose. Gracias. Okay. Thank you, Leander. Um, you guys have been very good to me over the years, so thank you. Um, okay, we'll go to Kent Davis. Uh, in order to make sure I make my time, I'm going to speak more quickly than I ordinarily would. But, uh, Mayor Palmer, members of the council, thank you for the courtesy of a few minutes this evening. My name is Kent Davis. I live in Cottonwood Heights with my wife, Katie, and my two young children. and I'm the Republican nominee for Salt Lake County District Attorney. I'm coming straight from Bluffdale's council meeting where I made a similar commitment to them that I want to make to you all here. And because I'm running for an office that serves every city in this county, I think showing up is doing is an important part of the job. A short word on why I'm qualified. I spent the last two decades leading teams in hard environments. I led soldiers in combat through two tours in Iraq. I earned a Ranger tab, Bron Star, and combat infantrymen's badge. I came home and continued my public service. office. I clerked for a federal judge. I worked at the United States Department of Justice before I came here and worked in the Salt Lake County District Attorney's Office. I tried felonies. I built the office's first cyber crime prosecution unit from the ground up. Uh today, I lead cyber security and I'm corporate counsel for Woodbury Corporation. I am an outgoing chair of the Utah State Bar Cyber Law Section. I serve on two Supreme Court committees, Utah Supreme Court committees, including the rules for professional conduct. I share that not as a resume, but to make a point. leadership is not leadership is showing up where the work is being done and listening to the people who are doing it like yourselves. Um, that's what I'm doing tonight and it's what I want to keep doing regardless of whether or not I am elected in November. I I said I was going to make a commitment and my commitment to Haramman. The DA's office is a countywide office like I said, but its work lives in your city. When one of your citizens calls 911 and makes a report, the consequences and the effect

of that is going to be felt here. When a family in your community calls 911, part of that is, however, the results are the consequences in the role of the district attorney's office. Haramman has grown faster than almost any other city in this state, and your residents should not have to wait for a press conference to know what the district attorney's office is going to do about recurring violent crime, corridor drug trafficking, or violent offenders cycling back through your neighborhoods. So, I'm here to open a direct direct line. I've already met with your chief. I want to sit down with any council member privately, attend a town hall if you have me. Got two more sentences if I'm okay. Um, and answer any question that anybody has to ask me about the enforcement of law as it is written according to the facts. Tell me what Haramman needs from its next district attorney. And I will seriously consider it. I'm listening. Um, I'm an easy person to find. I'm I'll be sitting here the rest of the meeting. I'm happy to talk to anybody at their convenience.

Thanks, Kim. Okay, I don't have any more forms at this time. Anybody else like to make a comment at this time? Okay, seeing none, we will move on to our city council reports tonight. Uh we'll start with Jared. I sit on two boards for the city was front waste recycling district. I'll save that for item 9.2. every others can probably do that update for me tonight. Um, unified fire authority, uh, I chair of the finance committee, we meet tomorrow morning if anyone wants to join us 9:00 a.m. It'll be a riveting three-hour plus meeting where we hear from each department and their budgetary ass, etc.

I'll wait for the report.

Yeah. So, um, as you saw earlier tonight, we're anticipating a an increase to our contract fee with UFA, right? their service provider. We contract for services and pay them to provide the service which includes the engines etc. personnel administration. We this as a city we own the the building and the land the fire stations are at. Um and then we pay them uh to provide the service for the rest. Um so that service is in cost of that service increasing $25,000. 88% or so is labor. Um so um mainly cost of living adjustments etc. So we've done a a big overhaul the last couple of years to keep those increases more in line with inflation in the last couple years. I think we've been pretty successful in that. So I'll report back on a very lengthy meeting next time.

Look forward to it. Okay, Teddy. Thank you, Jared. Uh nothing to report at this time.

Okay, Matt. uh the Jordan Valley Water Consery District. They're actually having their board meeting right well. It's been going on for about an hour, but um just some highlights uh that they are uh working through uh tonight. Uh average increase for uh wholesale water uh rates to um basically the municipalities that the district services averages out to about 4.7% uh for the upcoming fiscal year. uh this rates this rate adjusts up and down based on uh previous year uh use by each one of the members by a very complex formula that I couldn't even explain. Uh due to the great work of our water department and controlling uh the peak water usage uh usage times during uh kind of the the key measurements that are used in this formula. Uh this year um we our rates are going to go down 2.5% uh compared to last year and our rate last year went down 1.5. So uh kudos to our water department uh there. And then um the district will not be seeking any property tax increase uh for this upcoming year.

Perfect. Thank you, Tara. Um our our youth council held a concert. Um let's see. It's been a week and a half ago now and that was successful. Like it was fun gathering gathering area um gathering event for different um bands and then also our youth council and saw lots of families there too. So we had lots of support from the city city staff and then also great work by the youth council. just want to say um that that was a great event and then also that there's two more days open for the youth council application uh window and so the application's on the city's website and just encourage people to apply grades 9 through 12 for the fall starting in the fall.

Perfect. Thank you, Dara. Uh one quick report I'll just report back on. I had Transcom on the 30th. Um, Bryce, you and I haven't even talked about this, but they did recommend they didn't want to give us the whole amount for the 126th inter and Main Street interchange because UD do's conducting a full study. U DOT just for so I guess what do we say public consumption? Is that what we say the word? But U DOT's doing a whole evaluation of 126 from Main Street to Bangador Highway. It's just going to need a complete overhaul. It's going to need something very different. But in the meantime, they also recognize our intent to add two left turn lanes. So if you're coming westbound, we're trying to make that two left turn lanes onto southbound Main Street. As well as one of those, as you're going north on Main Street to turn eastbound on 126, one of those you just keep going and merge in with traffic there. um they recognized the need for that, so they didn't want to fund it entirely until UD do decided what they want to do, but they did put a placeholder in there of a million dollars acknowledging that they recognized the need for that intersection upgraded. So, well, it's kind of on pause until we see what UD do comes back with and but that interchange will be coming sooner than expected. So, so thank you, Bryce, for your help on that. Okay, with that, we'll move to our consent agenda tonight and look for a motion. I'll make a motion to approve the consent agenda as written.

Okay. The I think Yep. That's perfect. Yep. Okay. Motion by Terara, second by Matt. We'll go Tara. Yes. Matt, yes. KDY, yes. Uh Jared, yes. And I'll vote yes. That motion carries. Okay. We'll go to item 9.1. um authorize the city manager to appoint Cody Stroberg, chief of police for the city of Haramman and execute an employment contract. And I will say just for council by way, we're not trying to we're not trying to keep this short and sweet, but there will be a more formal presentation in two weeks. So if we're not making this a big deal tonight, this was actually started on our consent agenda. This is just authorizing the contract right now. Then we're do a big fancy ceremony in two weeks. So

correct. I I didn't want to presuppose. So, city ordinance requires the council under uh 16-7, I think, D. Been reading it a lot. In order for uh the city manager to appoint a department head such as chief of police, the council uh it's with the advice and consent of the council. So, uh this is the I I do want to say just a few words. We will have a assuming that you vote yes and give me authority. We will have a formal uh swearing in at our next council meeting, but uh this is the fifth time I've had to hire a chief of police in my career. Uh and I would say we had great candidates. It was a it was a great process. um the we had a citizens panel, the open house for the public, and then our executive team, and it was unanimous uh for uh Chief Stroberg. And having done this several times, not to take away from the candidate I hired last time, I probably would have hired Cody if he had applied in Oregon, and you would have lost him back then if he had done the same on his interview. It was he did a great job. We're excited uh to strike the interim part because like me he has a long last name and so as we keep adding those those get uh it's just a long title. So I'd be happy to answer any questions about the process but really uh we try to come up with how do we get your advice and consent and really you authorize me to sign uh the standard employment contract we do for executives would be that. Okay. Any comment or I'll look for a motion then we'll celebrate him in two weeks. Really

do that. Teddy, why are you going to make a comment? No, because it's wrong. Yeah. It's okay. Oh, to approve the consent agenda. Yes. I'll make a motion to authorize the city manager to extend the contract offer to Chief Strawmer. We'll do that. Motion by Jared. Second by Teddy. Jared, yes. Teddy, yes. Matt, yes. Tara, yes.

Mot, yes. That motion carries. Congratulations, Chief. Look forward to celebrating in a couple of weeks. Okay. 9.2. Notice of intent to withdraw from Wasat's front waste and recycling district. Uh Trevor, good evening, Mayor and Council. Um let's see. The issue that is before us tonight here is should the council adopt the proposed notice of intent to withdraw from Wasach Front Waste and Recycling District or Wolfford? Um, this process is growing, ever evolving. It's sort of like my hair. When we started this in January of 25, I was bald and now I'm blonde. And, uh, in any case, here we go. So, two paths to withdraw um that we, you know, we've been pursuing for some time now. uh withdrawal by negotiation has been underway and as of now less than fruitful or productive and so we are tonight considering initiating a process to withdraw by statute uh specifically language and changes to the Utah code brought on by House Bill 429 in the latest legislative session. Um, there are a few things I'll just go through really quickly and then kind of turn it over to the committee who has been participating actively in these negotiations to maybe fill in the rest of the council with context and and whatnot to inform the decision. But

procedurally, just of note, uh the notice that we're putting forward tonight is a step in that process to withdraw from Wolfford by statute. It contains essentially three pieces. Um just a statement of that intent to withdraw, a map of the withdraw, the proposed withdrawing area, which is our city map, and a statement of the city's intent to conduct a feasibility study if a negotiated exit can't be reached. Um so this is essentially council what you would be kind of ratifying and then we would forward on to Wolfford for their notice. Um, upon receipt of that notice, there are at least two downstream effects for Wolfford. The first is that they'll have 30 days to establish withdrawal terms with the city in writing. Um, and the other effect that I'd point out is that Wolfford will be unable to take on any new debt or bonds or significant financial obligations for a year unless withdrawal happens. or if we resend that uh intent to withdraw. So, kind of with that as the setting the stage, I'll open it up for questions for me, but maybe more to kind of point to Councelor Henderson, Mayor, you've been in on these meetings a bit and then uh Nathan and Todd to to kind of fill in the gaps and and we'll just kind of discuss from here. And Jared, I'll let you kind of run with it too, right? I will say real quick, we did meet yesterday with Wolfford with some other parties to try to take some other steps. So really, we're kind of going two pathways right now. I think ideally we'd still like to

withdraw have a good negotiation and get out that way, you know, by mutual agreement. This is a step in that. There's two pathways going on, right? So this is one pathway we'd we'd love to negotiate and withdraw sooner. This is the other. We're just taking that step to get in that other. So that's just start of a process. So it doesn't mean because we've started this process that we can't still go through this mutual agreement. Totally. So just for clarifying to even their representative was kind of confused about that yesterday. So yeah. Jared, anything else you want to add?

No, I totally I think our preferred method would be to reach a mutual agreement with them. We've been trying to do so for I would see safe to say over a year at this point. um with the change in the law that went into effect May 6th um we're we're just going to follow along with that statute in the event that the mutual agreement doesn't happen and I will say there were start to be some questions online today on our social media a little bit what will this mean for resident like we don't know like truly that's the next step we're taking this step because we it will save residents money we do believe that and there we don't believe that we know that based on the study that we've talked about But the goal with residents is they will not see any interruption of service. They won't even notice. Like truly, it'll just be a different provider that will pick up trash. That's truly the notice. That's what they'll re and then they'll get a different bill from somebody, right? So, we haven't we haven't signed an agreement with anybody yet. We have a preferred vendor we're working with at this point, but again, nothing is this is a start of a process. It's probably a monthsl long process still. More information will come out as this process moves forward if that's fair to say. Okay. Thank you, Trevor. Thank you to everybody involved in this process. So, okay. So, at this point, I'll look for a motion then.

Motion to approve resolution number R13-2026 to withdraw from Wasach Front Waste and Recycling District. Second. Second. Okay, we'll go. Motion by Jared, second by Matt. We'll go Jared. Yes. Teddy, yes. Matt, yes. Terra, yes.

And I'll vote yes. That motion carries. Okay, we'll go to 9.3 discussion and consideration of a second amendment to the Mountain View Plaza MDA. Blake and welcome Aaron. As the mayor noted, um Aaron Osman is here to represent uh Mountain View Plaza, which will interchange names here with Copper View Plaza because that's the sign on the the development is called right now. So, the MDA amendment for this property, this property is located uh off of Miller Crossing Drive and Main Street. And this is the uh approved plan that is in the development agreement. This is the the concept plan that you see on the right. And um this was originally approved as Gamepoint, turned into Mountain View Plaza, um now named Copper View Plaza. And then some of the requirements in the MDA are listed on the left. Um, we're going to talk specifically about this corner piece. Um, in this proposed amendment here, um, the amendment would add a lot, lot 8 as shown on this exhibit. Um, and that's one commercial lot. This didn't go to planning commission because this would be allowed in a C2 commercial zone. Um, it's just the MDA required that their development had to follow the concept plan. And so, um, when they proposed this new lot, we decided it needed to come to this body to get approved. It was more than just a minor amendment to the subdivision or to the development agreement. So, there's no other changes besides that lot. Um, this will require Aaron or the developer to take the take the the subdiv or amended plat to the planning commission for approval and a conditional use approval for a new building. And so zooming in on that site, they're proposing a new 5,500 foot building. Um, one of the main concerns that we brought up was parking. So they

did a parking analysis with the um required parking parking requirements in our um ordinance. And as you can see, there's 48 additional stalls after this building's constructed um with their parking that's that'll remain there. So um that tells us that the the parking will be adequate. Um Aaron's here to answer any questions. Um I can answer questions too if you have any. Um and staff does recommend approval of this.

I'll just make a general comment that I like how that parking lot's generally full already. So as long as a parking issue is not an issue. And I think a lot of the parking you're seeing now is uh contractors in finishing up the tenant improvements in the buildings. No, it's not. It's customers and the in the in the off hours. I've been there a couple of times in the last week. I had lunch in an off hour at Chevys the other day and it was I went in and there were six tables full at like 2:30 in the afternoon um on a Saturday. So it was

and the station bar just won second place for bar of the in the county, best bar in the county. But but as the contractors move out and customers move into those buildings, we'll just transplant the parking and it should still work. Erin, maybe you can answer this real real fast. Have you talked to Brett and Adrian at the station, are they okay with because I think this where most their employees park. Are they good with this? Are they Yeah, the functional parking area for their employees is not affected. Okay. But we have not yet told them anything specific about this until we had this approved with the council.

Okay, perfect. Yeah, we tried to preserve that parking section there. Also, you know, we have trash uh receptacle areas that we have to protect as well in that area for those buildings. We we think we've accomplished all of that balance. And I'll just say one other thing as a developer, the tenant that we're wanting to bring into this is a is a specific tenant request. We have an Emler Swim School tenant that would like to bring in a dedicated use for that facility, all 5,500 square feet. We originally planned to have them in building 7, but they didn't want to share a building with other tenants. Uh, and we agreed with that, by the way, from a standpoint of potential water issues and things like that. So, it's a dedicated use. It'll bring a lot of entertainment value as well for families in the area, which is one of the key components of the MDA in the original scope. Any questions for me that you guys might have?

I love it. I just want to make sure their tenants are correct. We agree. The whole tenant group there needs to be in enthusiastic support. Love it. Okay. Okay. No other questions. Look for a motion. Make a motion to approve resolution R14 2026 approving the second amendment to the Mountain View Plaza Master Development Agreement. Motion by Teddy. Second. Second by Matt. We'll go Tara. Yes. Matt, yes. Teddy, yes. Jared, yes.

And I'll vote yes. That motion carries. Thank you, Aaron. Appreciate how that's all come together over there. Okay. Okay. 9.5 discussion and consideration of a recommendation to approve a master development agreement for Awaken City Church to permit a church or place of worship at 15856 South Rockwell Park Cove in the M1 manufacturing zone. Oh my gosh. 9.4. I just was going to leave you past Justin. I'm just I did what you did. I marked it off and moved on. Sorry. My bad,

Blake. Sorry. We're gonna come back to Sorry. 9.4 discussion and it's been a long night already. discussion and consideration of a request to reduce water impact fees for the Lifetime commercial development project. Blake, sorry.

I was like, okay, I'll wait till later. Um, this one we have Justin Schmidt here representing Lifetime and this is a request to reduce the water impact fee. Um, this project's located on the northwest corner of Mountain View corridor, 126 South. If you drive by, there's um a lot of equipment. We had an awesome groundbreaking a couple of weeks ago and uh excited to see this development take place. Um the water impact fee calculation just for uh information on this. The uh the calculation for that for non-residential users breaks down into two portions. There's an indoor and an outdoor portion. And the indoor is based on your meter size. And specifically for lifetime, they're using a 3-in water meter. So it's a pretty um hefty bill. 61,548. They are not asking for a reduction on that. Um the outdoor portion, it's we charge $776 per thousand square feet of irrigable area. And so that's where um the interpretation on this is uh is brought up. So for this site, as shown here on the left, there's 3.72 acres of landscaped area. Um and not all of that is going to be irrigated. And then just for information, lot two, as you can see here on the plat, will charge those water impact fees when they pull a building permit for whatever gets built on that site in the future. So we're not worried about that site right now. It's carved out of this process. Um, so in the analysis from their architect and their engineer, there's uh 1.332 acres of the site that will be have temporary irrigation in place to get the la the landscaping established. These are the slopes coming off of Mountain View and the bottom of their retention pond. They don't have an outfall. So, they have to hold all their storm water in the pond. So, it's not very beneficial to landscape it because those storms sometimes take a very long

time to infiltrate into the ground. And so, you'll have a lot of standing water and and the vegetation doesn't thrive there very well. So, it'll be rock mulch and they'll have some plantings that'll get established with the temporary system and then and then that'll go away and then it won't be irrigated. Um, so their proposal is to take the 1.32 acres out of their calculation and as you can see there's a the left side is the original water impact fee um without the reduction and the right side is the requested amount with the reduction. Um, in the past, the council has granted similar requests like this to um, homes in the hillside where they have the backyard that's in the hillside overlay zone and they can't irrigate it. And it's uh, it's kind of area that they can use as recreation, but they can't the residents can't use it. And so this was a similar um, concept of looking at it. So, um, like I said, Justin Schmidt's here to answer any questions. And I think I don't know if Justin Edwards is here. Justin left. So, um, Bryce and I can can answer any questions with the water system if you need have questions on that, too.

Okay. Uh, can you go back to the slide where the aerial There you go. And that's right up against 126. And we know there's going to be future construction there as well. Yeah. This is like temporary landscaping. Yep. It's going to be a slope going down into the site. I think UD do's currently working with Lifetime to acquire additional rideway um because they're widening the road out with the Mountain View corridor project which is at about 90% design right now. Is this taking any of that into consideration or is this the existing as

the area in orange along 126? That's basically we we sort of futurep proofed it for what we thought UD do was going to come in and take. Okay, good. UD do's acquiring the property, but they're they're not wide they're proposing to not widen the road right now because of the study with 126. They they're going to redo the bridge after they built the freeway and redo that road. So, like shortly after. It makes sense to me. So, any other concerns from council? Okay, let's make a motion.

Make a motion to approve resolution number R15-2026 approving an impact fee reduction for the lifetime commercial development project. Motion by Matt. Second. Second by Tara. We'll go Tara. Yes. Matt, yes. Teddy, yes. Jared, yes. Vote yes. That motion carries. Now we'll go to 9.5. discussion and consideration of a recommendation to approve a master development agreement for Awaken City Church to permit a church or place of worship at 15856 South Rockwell Park Cove in the M1 manufacturing zone. Michael,

good evening and thank you for your attention to this matter. Uh, as you know, this was a petition that was presented to us by Awaken City Church. Uh, this is not something that we were anticipating. Uh but staff has spent a lot of time reviewing this and trying to craft a mechanism uh that very narrowly addresses all of our concerns. Uh this is the area of the proposal. Uh this is an M1 zone in the city and we're talking about an existing building. Typically when we're talking about a development agreement, we think construction uh but in this case this is a tenant finish within an existing building. This is the uh group of buildings um that have been constructed here south of Porter Rockwell Boulevard and just east of uh Mountain View corridor. The one that's highlighted kind of in that blue highlight, that's the building in question. Some of you, I'm sure, are very familiar with the former DBAT um facility, the training facility that was in this location. That's the um 9,000 square feet that Awaken City Church has um a lease agreement on. Um so the the crux of this issue is that church or place of worship is not a permitted use in the M1 zone. Um ideally this is a manufacturing zone. Um but as the council is aware over time we have allowed a few other uses within the zone that are not really manufacturing per se. Um however they are fairly typical when you look around at these um tiltup kind of simple construction uh projects around the valley. We will often see other kind of non uh manufacturing related uh uses within these centers. Uh so we're not unusual in that we have a

variety of uses that are ex beyond just uh manufacturing. Um the applicant in making their uh proposal a request to the city, they felt they had a legal claim, an opportunity to discuss with the city about being treated equally or similar to other land uses that have a similar impact or kind of operational um activity within this manufacturing center. And as stated in the staff report and here on this slide, you can see that this is a federal law. Um, it has been uh on the books, I think longer than the year 2000, but it's had a few iterations or a few um amendments to it by the by the uh federal government over time. Um so in in looking at this the claim is that re reception centers, charter schools and potentially maybe indoor recreation have a similar um activity um within this M1 zone and this is the claim of being treated fairly. I discussed this issue with the city attorney. Now this is before we had received an application. All we had is received contact and a request to be treated equally under this federal law. So, I reviewed this with our city attorney, came up with a few different options. Um, I think I mentioned we looked at a possible um zoning map amendment, a zoning text amendment, and we also talked about doing a development agreement. What's interesting about this tool is that it has a very narrow impact uh versus a zoning text amendment or map amendment potentially would have much broader impact within the city. Um and the MDA tool can under Utah law

introduce a land use that is not presently allowed within the zone. Um it's interesting that a PUD, a planned unit development tool, cannot. It does not allow us to do that, but the MDA does. So, this is um you know, according to Utah law, we this is something the city council can consider. So, we had a public hearing uh like we would on anytime we were modifying the underlying zone with these development agreements. We had a public hearing, did not receive any public comment. planning commission did make a 51 uh recommendation to the council to approve the um proposal that is before you. They also had added some modifications. Now with um the consent of the applicant and I also reviewed these modifications with our city attorney, I went ahead and made these modifications in the draft amendment that is before you tonight or the draft um agreement. Um, so this first one is just general language. Just wanting to make sure we clarified the purpose and the intent um of of the um the agreement. The second one is we proposed to limit the size of the church potentially. This u 18,000 square feet is is essentially one half of one building on in on that property. um 9,000 square feet is their current lease, but the uh Waken City Church had requested the opportunity to possibly expand um if they were there over a period of time. Um but I in trying to find a narrow solution, I felt it was in the city's best interest to not allow that expansion to consume an entire building potentially. Um, so that was my recommendation that we limit it to 18,000 square feet.

Again, the commission did approve that in a 5 to1 vote, but I meant I stated in the staff report that there were some commissioners who had comments following their vote, and a few of them did say that they would prefer that we did not put that limitation, but it was the majority position of the of the commission. Uh the next one is just clarifying that giving context for why the city council may potentially be entering into this agreement that it was because of this claim of this concern about religious protection. So we want to make sure that was clear in in our adopting language. Um, another one was there was a request from the applicant that this would be a land use that would be recognized by the city and it would the term is run with the land. Meaning as long as the land use is maintained, as long as the land use, the land itself exists, it's transferable, it could be modified, it can be expanded. That use is a legal permitted land use. I was more interested in trying to see if we can't again limit the impact of this potential agreement with the city and I wanted to have an opportunity to arrive at a point where the land use would be considered legal non-conforming. So it was legally established but is not conforming with the zoning tools that are applied to the M1 zone. And what that does is it limits the ability to expand the church in the future after the MDA has run its course. Now that brings up the next point. Um originally the agreement did not have an expiration term. Um while this may feel generous in talking with um the applicant,

this is this is a big leap forward for this church. they have not had their own uh property. And while they would hope that within a 10-year timeline, they could easily uh raise funds, acquire property, build a church, or maybe remodel an existing building. Um the reality is it could take a little bit longer than that even. Um, and so they asked that they would have a 10-year limit with a 5-year extension uh subject to council review. Again, these agreements, as you know, are not transferable to another party without council review and approval. And with those additional restrictions, I did not change the language in the agreement. It says it runs with the land, but those terms will now expire. So once the agreement would expire, if it were approved, again, we'd be back to that legal non-conforming status. Now, a legal non-conforming use is still transferable, but again, it comes with those restrictions on on expansion. You can only maintain. You can't grow larger. So, with that, this is a recommendation from both the staff and the planning commission for the council's consideration. Of course, the applicant is here tonight to answer any of your questions. I asked him beforehand if he felt a need to address the council as part of his application. He said he did not, unless he's changed his mind, but he said he did not unless you had questions.

Any questions? Uh, just clarification. um say n and a half years down the road and they want to modify this that run with the land is set to the 10 or 15 years. It the timing of it. We can always we can always agree to modify something, right? Agreement.

That's true. They could always submit a a request to amend as we've seen just tonight. So staying with that same term, for example, let's say the church is uh great at fundraising and they're going to leave in five years as long, let's just say, and then they're going to sell this to another church. The land use is the same. and and the run with the land is that transferable sale for

under the terms of the MDA the agreement of the MDA would have to be uh they can't be transferred without your approval. Okay. Once it reaches a legal non-conforming status, once the MDA is out of the picture, then yes, it would be um a legal non-conforming use and it would be transferable. But the agreement itself cannot change without council approval. The applicant good with this? Yeah. Derek, you good with all the changes, modifications?

Yes. I I will say Derek, you're in and your church I've you know I've attended a few times at your Christmas Eve service especially and we traveled the city looking for for a church to that doesn't have financial backing of a large I mean this isn't being I mean there's several churches but some of these community churches that are doing so much good in our community it's hard for them to afford a 3 acre parcel you know the prices of land here in our city but yet they serve such a benefit to our um they serve in our city too. Not I mean they have um every parade

just parade every all the events they're around. So um we need more I'm sorry I believe that we need more churches in the community not just so I'm so happy to see this happen. I mean it was there's not a lot of options right now for so we are thrilled I'm thrilled personally I'm excited for this. I saw your post today asking for support from around the country, around the world, and I'm just we're excited to have a permanent home for you right here in our community. So, that's just what I'll say on that. So, I'm ready for a motion. I would love to see this happen for these guys.

Motion to approve ordinance number 2026-10 approving a development agreement to permit Awaken City Church in an M1 manufacturing zone located at 15856 South Rockwell Park Cove. Second motion by Jared, second by Teddy. Jared, yes. Teddy, yes. Matt, yes. Cara, yes. And I'll vote yes. That motion carries unanimously. So, congratulations you guys. Thank you for service in our community and for all you do. So, and thank you for working with us through this process. So, you've been fantastic to work with. So, thank you. Okay. 9.6 presentation and discussion for the development services fee study conducted by Lewis Robertson and Bern Burningham public finance advisors. Blake.

Okay. So, I'm just going to introduce this and then we have Fred Philpot with Lewis Roberts and Biringham online and so he'll present um wherever he's at from there. So, um about a year ago, the the city contracted with uh LRB um to conduct a fee study for our community development um development services fees. Uh we want to do this because the fees are highly scrutinized by the homebuilders association and we should be responsible and only charging um fees for the work that we're doing. We shouldn't have exorbitant fees and we want to make sure we do cover our cost and aren't uh burdening existing residents with uh the cost to bring in new development. Um

that noise meant your time's up. So with that, I'll turn it over to Fred and uh he can uh present the the study to you. Yeah, thank you. And um I can share my screen actually if you would like me to drive if that's okay. Let's see if that's possible. Uh are you able to see that now on your end? One moment there. Oh, sorry. Almost there. It's one second. We're

That go. Perfect.

All righty. Uh yes. As uh introduced, uh our objective here is to comply with uh the statute relative to the collection of fees and ensure that we establish a rational nexus between the service provided and the fee assessed. Um this is not unique to Herman. Many entities go through this exercise of looking at development fees, planning fees uh to determine those costs and ensure that they're appropriate. Uh there was also a in 2022 was an an audit relative to some communities and their fees and there was concern that some of those fees were high. Uh and so a request essentially from the auditor's office for entities to start looking at this and ensure that those fees are calculated. Um and there have been some re regulations put in place as it relates to the accounting of development fees uh and the carryover of those development fees. In order to do that, we've established a process that's based on two pillars. The costing side uh which we look at uh base employee cost, department overhead costs, administrative overhead costs. And we marry that with uh your process uh a process evaluation which city staff have worked very hard to go through and and establish these process maps. Essentially what we're doing is looking at uh all of the steps that a fee will go through within the city and um identify those steps and the time associated with with each of those. We create those process maps and then join that with a cost evaluation to to determine a total cost. The fees that we've looked at uh include all the planning most of the planning fees and building permit fees with some being a a flat fee, others based on valuation. We have your plan review fees. We haven't made changes to your engineering review land disturbance fees. uh essentially we're waiting for some additional software that will allow us to evaluate those fees and the

implementation of that uh using better data. Um so when we look at the cost analysis uh we utilize your existing budget information um to evaluate base cost which in includes uh employee salaries and benefits. We then uh pair that with department overhead cost. This is the cost uh for each uh individual involved um within the department. So that may include uh supplies um materials, training, additional overhead expense from the department itself. And then we also include administrative overhead which which includes those departments that serve the city in total, right? your HR, risk management, IT, um, uh, administrative services, those functions that that serve all departments as kind of umbrella functions. We look at at those costs and wrap that into the analysis as well. Uh, the combination of those three main buckets are the basis for the cost evaluation. And you can see that here. Um this is an example of the planning department cost analysis where we're looking at individual positions uh the number of FTES in FTEES or full-time equivalency in that department. Uh we then allocate uh direct cost department overhead cost and and then our total admin cost per minute and then we get a fully weighted cost per minute here on the right side of this uh this table here within the report that that you have available. uh each individual that is evaluated in the development fee services study has an evaluation of a fully weighted cost per minute so that we can then uh apply that to the next step which is our process map. So each fee that that we've evaluated has a process map now associated with it that shows the action item or the steps that we go through or the city goes through

and the estimated time to complete that action and the individuals involved. In some cases we have in this case the the example we have here take um the building department review um this step here we have a building permit technician two or building permit technician three we essentially average that time uh the the cost per minute for those individuals. In other instances, we may have an and statement here where we have the building permit technician two and the building permit techn technician three. In that case, we would add the the time of those individuals in our evaluation. But uh the the key here is establishing these process maps again getting total time spent per application and then calculating that for each of the process maps that we have. uh this gives you an example of that that same uh uh element that we've evaluated. So here's the time spent, the cost per minute, and then the calculated cost uh producing a total cost for that fee uh based on those those two uh pillars of our analysis. In some cases, we we have um some administrative cost that's identified in the process map, and we'll make sure since we've already accounted for that in our administrative overhead, we do not include it in the process map time spent. And so, we do identify this step, but we'll zero out the cost per minute so that we ensure we're not double counting that administrative overhead uh in this evaluation. All righty. So the uh justification for this fee again is that process map and staff review then re-evaluating those fees based on the impacts that we've identified and the calculation of that fee and then we go through an evaluation

or reasonable check on that looking at revenue generation and other factors. Um the summary of all of the fees. Now there's quite a bit of process map information and fee calculations. All of that is found in the report that we've provided. But here's a sample that shows um how that is presented in the document where we show what your current fee is and what the proposed fee is that we've evaluated to give you a comparison of how the fee schedule will be changing. Um in some cases there are flat fees. So those we're showing the adjustment for those flat fees. In other cases, there are um tiered fees uh like building permit fees where there's a a schedule based on valuation and we've made adjustments to that schedule to account for the cost evaluation. But each fee that we've evaluated is found in the report and and there's a table that shows this comparison of your current fee versus the proposed fee. To give you an idea of the impact of this analysis, we've uh conducted the revenue analysis that uh compared revenue uh for a snapshot in time. Right? This takes u uh building and planning uh uh fee information and uh we calculate the revenue generation under your current schedule and then uh show the change under the proposed fee schedule. uh in any given year that will change based on the economy and the and the nature of development. Right? If you have a lot of uh applications and building permits, you're going to generate quite a bit more revenue but also a lot more cost because you need more processing time there. Whereas in other years, you may have a reduction in that and your revenue is going to decrease um uh which may result in lower cost uh attribution. So uh this is a snapshot again in time but it does give you a comparison using the same base data. The planning

department under the proposed uh fee schedule uh would see 115% increase going from around 50,000 slightly under 50,000 to almost 100,000 in revenue. However, the building department uh we're showing a decrease in overall revenue. uh in this case it's the revenue is a reflection of the cost evaluation in this analysis. Um we're showing that based on the process maps and discussion with staff that uh we would see a 20% reduction in the uh estimated revenue generation. Therefore uh our our cost recovery is suggested to be slightly lower than what your your current revenue generation is. And we had some feedback when we started this process that there were some concerns if the fees uh especially on building department um since had they hadn't been evaluated that uh that we wanted to make sure those were tightened up and the analysis has shown that. So uh the recommended fee uh would produce this result um again 115% change on the planning department fees but uh 20% reduction on building department. All righty. So from here we uh based on any questions or input you may have we then finalize that schedule and then um move to the adoption phase uh that that would uh put the fee schedule as part of your uh consolidated fee schedule. All righty. So that's quite a bit. Uh any questions, comments, concerns?

No, I don't think We've been through a few of these lately, so this is right feels really good because I think we always want to have our fees defensible if we get challenged. And I feel like this study makes the fees defensible. We knew that revenue was going to drop from the building department because it hadn't been updated in a long time. I didn't know the planning department was going to raise so high, which kind of tells us we were not collecting enough fees um for the processes we were doing. So, so that good on both sides. So, yeah. Just an accurate representation. That's what we are always looking for is just an accurate representation of those costs. Okay. See no other questions. Anything else, Blake? Just that easy. Just look for a vote then. I don't know if we're

No vote on this. There's no vote on this. This is for uh information. Um we'll bring the fee study or the the fee schedule back with the the budget. Kyle will bring that back in a couple of weeks and then it'll be adopted and then this will just be um in the file for in case anyone has questions on how their fees were calculated and determined. It'll be our defense for that. When do the fees go into effect after our motion or adoption to the public? We we've discussed possibly bringing them to the May 27th meeting, but then giving our I our communications group enough time to prepare everything to get it on the website by July 1st. So having them go live July one.

Cool. That's going to be the proposal. I think we we haven't finalized that, but that's where we're heading. Okay. Okay. Fantastic. Thank you. Thank you. Thanks for being here with us tonight. Yep. Okay. We'll go to item 9.7, discussion and consideration of a resolution to adopt the tenative fiscal years 2027 to 2028 city of Herman budget and request to schedule a public hearing on May 27th, 2026. Kyle, thank you, mayor. You got a little break for me.

So, tonight's a great night, at least for me as the budget officer. We've hit another milestone. As you know, we've been working on the budget uh for a number of months. Uh for the public, I want definitely want the public to know this is not a one or two-month process. This is more of a six-month process. And this year was actually what I'm calling in quotes an accelerated process. Normally, we actually start this process in November with the department starting to put their budgets together. Due to our software conversions and finance, it got bumped to January. Um I due the lateness I won't go through this entire process but as you can see um the council's been involved basically since January. One thing that we do that's unique compared with other cities is most cities start seeing the budget now the council's actually see the budget in May. You've at least been getting portions of it going through the uh since January which in finance puts a little bit of burden on us. We're doing what I like to call just in time budgeting where we're getting information, comparing it, evaluating it, and then presenting it to you. So, um, it is a little unique. Um, I did want to go over, as you know, this is the city manager's recommended uh, tenative budget. I wanted to go over some budget priorities. What, of course, we take council input of course, but what we look at when we are putting the budget together. So, of course, the strategic priorities are a big component of that. um which are on page 10 of the tenative budget book. Um one thing that we've been discussing about over a number of months, probably even years, is starting to prioritize our existing assets or amenities. Um our city manager likes to use the term we've been kicked off of our parents insurance. Uh Haramman's maturing. We are getting to the point to start looking at what we're at buildout. We're no longer a city that's growing 20 30 40% a year. We are still growing. Of course, we still have vacant land, but we need to start looking at, okay, we've got these amenities that are 20 years old. We now

have to replace them. What do we do? So, we are starting to plan for that. Um, personnel, of course, as we'll get into some of the charts is a very important component of a city and it's a large portion of our budget. Uh, you know, in the work session, our newly minted police chief mentioned it's uh police is 80% of their budget. So, it is a major component. We want to be competitive in the market. We will never be at the top of the market. We hopefully will never be at the bottom of the market or we've got problems, but we want to remain competitive in there. And then as our assistant city manager had mentioned in the work meeting, we are always evaluating service levels. Our goal is to try to keep and maintain the same service levels. That might not be possible, but that is a factor into the budget and some of the recommendations made. And just those three blocks are the main three priorities of the strategic our strategic priorities. However, the full detail is in the um strategic or excuse me, the tenative budget. So, I've had a couple questions on this, so I thought it'd be good to present a chart and just go over it a little bit. So, what I did was I took uh the citywide revenues and then I also stripped out any interfund revenues. So, basically, if the general fund is transferring money to another fund, I eliminated that to try to get the true what revenues the city actually collecting. Uh so as you can see, property tax makes up about 22% citywide of what we collect. Um sales tax, as we've discussed, is a major component for us in terms of revenue at 15%. Um you'll notice the charges for services is about 25%. So that's what we're actually charging residents, businesses, etc. I will mention 20 million of that is just water itself. So water the water department is a major component of of our charges for services and of course we have some other uh smaller ones there but as you can kind of see what the big components are. Um and we'll discuss we are proposing a bond with this budget

for water projects. Um but all said and done our total revenue is approximately 108.5 million. Um that does um not include our renewal agency funds. Now, flipping over to the expenditure side and where we're actually spending our money. Um, then this is citywide, not just specific departments or funds. Uh, so we spend approximately 30% or a little under half of our or excuse me, a third of our expenditures on personnel. So, it is it is a large part of our budget and just operating supplies just to operate the city and and have employees be able to do their jobs is about 21%. Uh, one thing I thought that was interesting, I had never thought of when I was putting this together, water purchases. So, what the water we actually purchase to provide to our residents is about 8.3 million. Um, Justin, our public works director, had discussed this earlier with water conservation. That number might be a little high, but still it is a significant amount that the city pays just to purchase water from Jordan Valley. Um and as you can see we do also even though we are um not mature maturing might be a good word but we we're still growing we are still planning over 26 million of uh capital projects uh with with the budget. Uh moving to revenues just in the general fund and really for the public uh the general fund is I like to call it the catchall of the city. It really is most of the services the residents see on an everyday basis. So even though fire or police does have its own separate funding source, this does include police, uh it does include streets, it does include parks, it includes those major items, but as you can see, 40% of what we receive in the general fund to fund these critical items is sales tax. Um that transfers in is mostly from the HCC. So that property

tax component that pays for police. Um as you can see we also received some money from other government agencies. That 3.2 million in green is uh mostly class C funds but there are some other things in there. Flipping to the uh person or expenditure side in the general fund as you can see 55% of what we spend is on personnel. So that does include not just salaries but also benefits in there. Um, and then we have some transfers out to other funds. Um, and the best way I've been able to figure out how to describe a fund, it is like we have separate checkbooks and each checkbook has a different purpose. So, we have a checkbook for debt service, which is the bonds that we've issued in the past to construct major capital projects. Uh, so that that, you know, that's one. We also have transfers out to fund capital equipment. We fund those in separate checkbooks or funds uh so we can track those more appropriately. Um and just operating our departments is 21% of our expenditures or about 9.1 million. Um this was a surprise to me. Our um our pavement management actually is large enough. So pavement management is what we use uh to maintain the roads. It typically doesn't include those major reconstructions, but it can. But typically it is your slurry seals, your your maintenance to keep your roads uh looking good. And the the chart that did funky colors on me, um it's probably good this late to have something that bright pink. Uh this shows by department the expenditures um in the general fund. As you can see, police is about a third of what the general fund spends. Parks as I had mentioned earlier with those uh personnel requests. Parks is 12% which is the second largest department after police um as I mentioned transfers out. We're transferring money to other uh separate

checkbooks uh which is the majority of that is capital projects um transportation. So our streets department is also a large number at 3.8 but over 2 million of that is just pavement management um keeping the roads maintained. And as you can see, the city does have a lot of smaller departments, very important departments, uh, but we actually only have a few major departments that are consuming quite a bit of our actual expenditures. Now, while I could spend hours talking about the budget and people have heard me do this, I did just want to give some highlights um on the budget. So looking at revenue first. Uh so this is um the general fund property tax is just looking at that very small amount that we receive for the general fund. So this doesn't include the Herman city safety enforcement area which funds police or the fire HCFSA. This is just strictly that amount we receive. So we are anticipating about a uh 4% increase. However, due to adjustments in prior years, it's actually showing a 5 and a half% increase on the budget. Um sales tax, we are anticipating a 4% increase, 3.9% almost 4%. Um and then I'm sure you all remember my uh entertaining and exciting revenue discussion back in January. Uh I've historically been underbudgeting class C road funds because of how volatile uh that revenue source is. And even with the changes made at the legislature, uh I felt that this was a good time and it was appropriate to increase those uh revenue amounts to what we've actually been seeing historically over the past couple years. So that's why it's showing such a large 31.8% um increase. Um and then also that transfer from the HCC to fund police um is showing an 8% increase. Uh we discussed that a little bit earlier. Um

and that is one of the reasons why uh we are requesting a property tax increase for the um HCC. So as you can see at the bottom so the overall increase is about 4% for 27 and then closer to 4.5% for uh 2028. Uh looking at some major expenditure highlights within the general fund. Um I do want to mention going back to preserving our infrastructure. Uh we are budgeting almost 1.7 million to go out from the general fund to capital projects to help fund projects. Um that does go down a little bit in fiscal year 28. Um and then pavement management as we looked on the bar chart, the pie chart, that was a fairly significant amount. As you can see, we are planning 2.2 million in 27 and then almost 2.8 and 28. Um, it is important to note on 27 we did put 700,000 to the Rose Crest Road Rehabilitation and Capital Project. So that's why that number jumped so much in 28 because we do restore that 700,000 back. So Rosest Road will be fully funded uh for that reconstruction in 27. Uh, one thing that since we've had such, it's not a large amount, but since we've had quite a few discussions about it, uh, we are estimating our election in 28 to be 85,000. Of course, we won't the face from our city recorder when that was mentioned. Um, we won't know exact amounts until the election occurs and there's a whole formula with the county now. And then also snow removal just because we have discussed service levels with snow removal. We do have a budget of about 319,000 for 27 and then a modest increase for 28. Of course, we do have to have snow to need snow removal, but we we we have to prepare for it. Um and then finally the new uh excuse me the tenative budget and the general fund does uh propose 5.5 positions which we

will get into later although we did just we did discuss them in the work meeting earlier. Um here are the new positions again um I did want to note the total is about 1.4 4 million. Um, but if you subtract out the police, which we have, which we discussed a earlier, we use new growth funding, which we have in a restricted account for that. It's about 368,000 that the general fund is actually paying for. It's not using that restricted tax money. Then moving on to police. Um, in 27, um, as you can see, 82% of their expenditures are personnel. uh their operating is 14% and they have some other smaller ones. Um I will say it's a funny accounting thing I like to point out. We have to record certain certain long-term contracts as debt service. So that uh that pink slice or purple I guess it is is their body cams and associated equipment but it has to be shown as um debt service. So thank you uh Gazsby on that. Um I did want to go because we have had some discussions and there has been some questions on where uh the increase uh the tax increase request is coming from. A lot of it is being driven by personnel because of that large amount personnel is. Um so as you can see here um the different um increases uh for the police personnel. So their cola is about 200,000. And as I mentioned, the cost of living adjustment actually moves the entire band. So it's not an individual employee moving within this the pay band. Um police also have a step program. So uh this budget does propose funding the step increases. Um that's about 133,000. Um and then you see we also have certain market adjustments. So that's uh market

adjustment is if an employee is not within their pay band. Um that does also include we have had some compression issues with our um commander and above classifications. So that market adjustment also alleviates uh that compression issue. Um and then finally most as you can see the merit number is very small because most employees are on a step plan because they're sworn officers. they aren't eligible for a merit increase because that step increase is essentially their merit. So this is for the civilian um and command staff that are salaried. Um and then a 28 I have I also have the numbers again this is assuming we would we would need an additional tax increase in 28. However, that will not be considered until fiscal year 28. So we we only we only propose tax increases one year at a time. But it does show, as you can see, I'm going to go back for a minute. Um, we're already at almost 4% um tax increase just with with personnel, which is already over a normal inflationary amount. I do also want to highlight um I do have to give credit to our now police chief and then the command staff. They really did go through and cut their budget as much as possible. We did have an initial budget meeting with them where we went over their requests. We did say please go back uh work on your budget this you know you need to work on your numbers and they did do that. Um but there are some things that are out of their control. Dispatch of course is a a large expense for the police department. Uh we do contract out for our dispatch services um which is seeing a almost a 15% increase just in dispatch costs. Um, their clothing uniform line item has not

been adjusted in a number of years. Um, thank you. I couldn't remember if it was never or once. So, you know, they a number of years.

Yeah. And and they were formed in 2018. So, it it it is time and costs have significantly increased. Um, and then software, while this looks like it's a burden because it's increasing, it actually makes them more efficient. they need less people because of the software that they use. So really it is actually a cost saver even though their those subscriptions keep increasing. Um and just to show they really did go through every line item and look at every budget that they had. They did propose reducing their general supplies $20,000 and then also their fuel line $20,000. Um in 28 uh just to highlight a few things. So one is dispatch. We are estim of course we don't have the number. We are estimating another significant increase based off of prior years. Um over time needed an adjustment. As you know there have been a number of uh salary increases over the years. Some of them forced by market forces. Um the overtime budget had not increased. So, uh, this was a a step to try to get the overtime budget into a more manageable area. Um, and then one thing that the police department has been cutting over a number of years to get the budget, you know, to get the increased number down is seminars and training for the officers. Um, and the feeling from the police staff is they are at the point they really need to start investing in training and in training their people to make sure they're well trained uh to be out on the force. Um and then as you can see other items as they've been cutting and trying to reduce uh there are there are there is the need to increase them such as their just their general supplies and then once again uh software increases um due to contracts. Moving on to animal services. Um, I do want to note, and you will see this in the capital, um, they are planning on

moving into an animal shelter in fiscal year 29, which would be renovating our old fire station 103 once the new one's built. Um, and they're operating charge that 151,000 in fiscal year 28 as a 9% increase, and that's an anticipating needing to buy supplies for the new shelter. Um, those those items that aren't capital in nature. Um but other than that as you can see their budget is is has minimal increases. Um in community services the main um increase is an operating um and that is using um a a new module with their code enforcement software called Comate AI uh which will make things more efficient and will be better for uh the public needing to interact uh on their notices or tickets that they've received. Um and then also and we have discussed this uh with you in the past uh we have uh because we have been issuing more citations we've been needing the administrative law judge more than we initially had anticipated. Uh so there was a request to increase that budget 15,000. Then moving on to emergency management and crossing guards. Um, as I had mentioned in the work meeting, if the commander position is approved, they are uh proposing eliminating the part-time position uh uh the emergency management position, which is about $36,000. So, that would be a savings to offset the commander cost. And then on the crossing guards, we have been working over the past few years to make sure we're isolating crossing guard expenses in the crossing guard budgets. we have a good true cost of what it's costing us to operate that program. Um, and this is continuation, but there's no major um, new items or programming happening with the crossing guards. Moving to what usually the councils care about are the capital projects for the

year. Uh, so this is the list of general capital projects being proposed. Uh, so the first one is uh, more design and engineering funding for the public works facility. Um, as we discussed uh last council meeting, uh we are still in active discussions on phasing on the public works complex. Um, however, I do believe we have settled on a site that it will remain at its current location. Um, we might need to look at additional phasing uh stretching out the time to build all of the uh requested buildings to make it fit within the budget. Um, we've also discussed uh the Rose Crest Road rehabilitation. Uh, so this would be adding to the contribution made last year. So we will have the funding ready to go when it's time to do the paving on that. Uh, we do have a reimbursement that's been going on for a number of years for improvements made on 118th and 126 South. Uh, one of the parks projects that's being recommended going back to maintaining our existing assets is um looking at the splash pad at Rose. And I put on here improvement or replacement. So, we would be evaluating what our different options are. Um, I know you've heard this many times. I do also want to say to the public that park equipment and park projects have just gotten increasingly expensive. So, we have been trying to be creative and thoughtful about um what improvements we can make. Also looking at the demographics of the area those those amenities are in and trying to find a good fit for that. Um as you are aware, we did join the Trans Jordan uh landfill as a member. Oh, we are required to make um contributions for a number of years um into that. So that's um funding that commitment. And with all the recent construction, including the commons, uh we've had to relocate our me message boards. They're

currently sitting in the public works yard. Uh this would be to relocate those um to another site. We don't have those sites identified yet. Staff is still working on some suggestions uh for you as the council to review. Um we do a yearly street light replacement and retrofits. We would continue to do that. Um, we do also have in the budget a tennis court resurfing resurfacing for Rose Creek, which I know was a question that had come up from a resident. So, that is in the budget. Um, and going to our strategic uh priorities of community engagement and art. So, we are proposing an art mule mural at a site to be determined in the future. So, we would be bringing that back uh for consideration if that's approved. And then finally, as you have probably heard or heard the cries from my office, we have been replacing our software and finance. It's now utility billings turn. So this is the portion that the general fund has to pay for. Uh the most of the cost will be in water and storm water. We are not looking forward to this, but it is necessary. Um continuing on with um projects. So this first one I did want to explain a little bit about. So we do have a portion of road that needs to be developed. Um that is actually graded and ready to go. However, it is road impact fee eligible but we don't have road impact fees. Um the engineering is telling us the development is occurring soon. So that is why it's in general capital projects uh because we do not have road impact fees to cover that. Um I had mentioned earlier about the animal shelter. Uh the 1.2 2 million is for improvements that the building will need to to be able to house the facility. Um, and once again, the 118 South reimbursement that's been going on for a number of years, uh, that is based off of impact fees we collect. So, we we don't pay that out unless they've actually paid impact fees in the

collection area. And one thing um that I think was a priority for both the city manager and myself, we're starting to create replacement funds for certain items. And you'll see this when we hit the equipment side. So, one is starting to just put a set amount of money into an amenity replacement fund. So, this one is for parks. Um, that way we will have continual funding uh to start replacing structures as needed. Um, we do have one for Tapestry Park that is specifically um identified an amenity replacement and then our yearly uh street light replacement. Uh moving on to capital equipment, there's a very long list uh in the tenative budget. Um but as you can see, we do have vehicle replacements planned. Um and then a few new vehicles. Two would be for the police department if those two positions are funded. Um and then as you'll see, we are proposing to include money for vehicle replacements to start building up a vehicle replacement fund. So the idea being we would continually contribute the same amount each year and we'd be able to fund uh we'd be able to purchase vehicles as needed. Uh so it smooths out uh the expense and also we don't have to rely on capital lease financing. Um another one is uh with the um building department getting new software, we do need to look at a new work order system. So this does also fund a new work order system. And then there's some other things. Um the one I remember off the top of my head is uh the golf cart that we discussed for events that will be um paid for over three years with a sponsorship. Looking at 28 is very similar. So we have some vehicle replacements. Uh a new vehicle if that parks manager's

approved. Um a new vehicle for police uh with if the officers approved. And then another vehicle replacement fund contribution um and other equipment. One of them was uh the Christmas tree got a I know got a lot of discussion when we were discussing the capital project. So that does include uh Christmas tree for uh Crane Crane Plaza. Um I won't spend too much time on this, but I did detail out how all of this uh capital project and equipment funding is occurring. Um, I do want to mention out of all those projects, both on the capital project side and the capital equipment side, we are looking at using about 2.3 million of fund balance. Uh, that still leaves us about 800,000 in fund balance. Um, I like to have some cushion in there um in case we have a project run over cost or revenues don't come in and impact fees we don't anticipate. Um, one other thing I do want to note is we've had a street sign and street fee fund. not a lot of action occurs in it. Um, we now require developers to purchase those items on their own. The practice before then was we would actually buy the street lights when the developer needed them. They would pay us, we would pay it at back out. Uh, the plan would be to close these two funds, use that towards capital projects. Um and similar in 28 we are looking at using uh 4.9 million um in fund balance to fund uh these projects which is an appropriate use because these are all one-time projects and you want to use one-time fund balance uh for those. So looking at our impact fee funds, um as we've discussed, um it is a concern of ours that we are programming too many projects into our park impact fee funds and we will never collect enough to actually do all those projects. Uh the park impact fee fund was close to a zero

balance um at the end of fiscal year 26 or is projected to be. So there are only four projects currently being um proposed to add to the the existing projects that are in there. So, one is a uh trail along um the 118 South Business Center. Um Jackson Park for 2.3 million, which I do want to put an asterisk on that one is the original request was 3.5 million. Our recommendation is to reduce that to 2.3 million and incur additional phases. Um we've had discussions with the assistant city manager um and she she's good with um finangling things with a limited amount of money. So she she does have ideas. Finangling is not the right word. It's late. She is very creative um with the funding she has available. Um and then you will notice there is a small amount going to debt service. So, uh, when we get to the debt service fund, we did issue a bond, uh, to complete MDA obligations that were, um, due. Um, there is a small portion in that first bond that was for park projects. So, that is to pay that portion of it. And I do want to note there is a fee study being done on the park impact fees. So that may affect in the future if we're able to do more projects if we have to re-evaluate and scale back. Looking at the transportation impact fee fund, um as you are aware, we did um adopt reduced fees for transportation impact. They have been accounted for in our projections. Um as you can see, we are proposing these three four three projects and debt service. So they are all three traffic signals. uh one on Auto Row and 126 South uh one on Danzy Oaks and Haramman Maine and one on Miller Crossing and Herman Maine. Um and then the debt service as I had mentioned

is for those MDA projects that we have bonded for that we are in the process of completing. Moving on to development services, I won't spend too much time on it because we uh just discussed it in the work meeting. Um, we did factor in the reduction in fee revenue that Fred talked about, um, into our assumptions. Um, but as you can see in development services, uh, almost half of their expenditures are paying other departments for the use of those employees such as our city engineer, community development director, and so forth. Uh, moving on to debt service funds. So, this excludes the debt we have in the water fund. We do have three um active bonds right now. So our 2015 bonds which constructed this building, Crane Park, and then portions of Haramman Main Street um up by WCO, the north side. Uh the 21 sales tax bonds which funded the Heramman Main Street widening out west. Um just as a note, we get a state grant for that. And then the the bonds we issued last year for the projects which were uh mostly road. So our total uh debt service is 4.3 million. what the general fund actually has to kick in is about two million. Um, I do want to mention, and you will see this hopefully next council meeting, is we are looking to refinance those 2015 bonds and save some money. So, I will be bringing in an agreement with an underwriter. Um, and and I can share with you at that point what the anticipated savings are. So, moving on to the water fund. Uh so what we do every year is we compare what the water department is requesting against our 24 uh rate study and then as you know every year I do come back and let you know what the results are compared with that water study and then what the fee increase needs to be compared with what the uh rate study requested. So overall rate revenue um is

anticipated to go up 11%. Um, part of that is that 6 and a.5% rate increase we adopted last November and then 4 and a.5% growth. Um, I will highlight a couple expense increases. One is water purchases as we mentioned. Part of it is uh anticipated 5% rate increase which is luckily not materialized with Jordan Valley Water. Um, we are also anticipating increased consumption and then we're also paying Jordan Valley for Olympia to block water. However, we are receiving offsetting revenue for that because the Olympia residents are getting charged that higher rate. Um, but we do have a pump station coming online, uh, which does equate to significantly higher electricity costs to run that pump. Uh, moving on to the water capital projects fund. Uh, the the big um request on this one is to bond for a number of capital projects which are included in the tenative budget. Um it is split between this enterprise fund and then we have an impact fee fund. Uh the decision was to have the bonding being shown separately because the debt repayment is going to be based on that percentage. So impact fees are going to be paying part of that debt repayment. Uh one thing with the bond I do want to note is I still need to sit down with the engineering team and discuss phasing on when they realistically believe they can finish these uh capital projects. uh we don't want to issue a $29 million bond and then sit on the proceeds for 5 years until um until until we're actually able to spend them. Um and I do want to mention because there was a question about there is a large amount in miscellaneous revenue. You can see there's 1.5 million in 27 and then 7.1 million in 28. That is anticipated amount we will receive from Olympia for their portion of some of those Olympia related projects.

Uh moving on to the impact fee fund. As you can see the the bonding again and um the the requested projects as I said are in the are in the tenative budget. Moving on to storm water. Um it's interesting how on these enterprise funds how their allocation of expenses is a little different. So as you can see here personnel is actually only about a quarter of their expenses. um their operating is about another quarter, but then their ad administrative fees. So they have to pay customer service for taking payments. They have to, you know, pay Treasury for utility billing, um engineering and so forth. So they have a lot of costs that they're paying to other departments. Um and then that transfer out of 452,000 is for um capital projects. And we'll go through the list in just a minute. Um, I do want to mention while not a huge amount, um, there is a rate fee study that's budgeted in the storm water fund. We actually have not looked at that rate since the rate was implemented. So, it probably is time to get those rates updated or at least looked at. It's up to the council to determine if if there's an update that's needed. Uh, so this is the list of capital projects that was requested by the engineer. Um, so it's a storm drain on High Country Road. um their portion of the ERP system replacement for utility billing. Um piping improvements for uh the Shosonyi pond, um outlet improvements for the skate park detention pond, and then um vector truck replacement cyclones, which I will need to Google to see what exactly those are or talk to Eric. They are probably not as cool as I think they are. Suckers.

And with that, are there any there any questions for me or comments? I'll make a comment. So, this is my first rodeo with you, and I really appreciate not only your ability to just make these numbers work, but to take it one step further and to make those numbers make sense. Uh, so, you know, somebody like me that has a general business background, but not necessarily in city accounting. Um, so just a personal thank you uh for just, you know, making making my job easier because you are you're helping me understand. So I appreciate that very much. So thank you.

You're you're welcome. And that and that is the whole goal to make you understand this because I don't want you passing something you don't understand. Yeah. I I echo Matt's comments. Um, can can you get some PowerPoint ideas from Todd next time? Yes. It's entertaining for you, but Yeah. No, it's impressive. Yeah. U I I need to dedicate more time to my PowerPoint. It shouldn't be the night before I'm rushing to put these together. It's fun. It's wonderful. But I will work with Todd in the future.

Wendy did give me the one the one uh the one meme. So I I might work with these two. They can help my PowerPoint game out. PowerPoint game. Oh man. Okay. Okay. Thank you. I appreciate all you're doing on this. Thank you. We're lucky to have you. So, okay. I'll look for a motion on 9.7 then.

A long one. I'll make a motion to approve resolution number R162026 acknowledging receip receipt of the tenative budget and tenatively adopting the bannual budget pursuant to the requirements of the Utah code and dated 10-6-111 for the fiscal year beginning of July 1, 2026 and ending June 30th, 2028 and request to schedule a public hearing on May 27th, 2026 for formal adoption on June 10th of 2026. Six. Second. Motion by Teddy. Second by Jared. Will Jared? Yes. Teddy? Yes. Matt? Yes. Carrot? Yes.

Vote yes. That motion carries. That brings us to the end of our general meeting tonight. Uh, our future meetings. Our next planning commission meeting is May 20th, 2026 at 7:00. Our next city council meeting is May 27th at 7:00. Um, events coming up every Monday now is our Herman food truck roundup. Every Monday out front here, a really cool event coming up on the 23rd. Uh, it's a multicultural dance festival out here in Crane Park. Um, I just want to plug the end of the month. We got Memorial Day breakfast and rodeo. So, if you don't have your tickets, Saturday's already sold out. So,

sold out. and the other days are quickly

selling. Price increase goes in on Monday, I believe. So, grab that now. Um, okay. With that, we do need to go to a close. So, I will look for a motion to go into I will make a motion to temporarily recess the city council meeting to go into closed meeting for the following purposes as provided by Utah State Code annotated 52-4-205 for strategy sessions to discuss pending or reasonably imminent litigation and strategy session to discuss the purchased exchange or lease of real property or to discuss a proposed development agreement, project proposal or financing proposal related to the development of land owned by the city. Okay. Have a motion by Matt.

Second. Second by Tara. Okay. We'll go Tara. Yes. Matt. Yes. Teddy. I guess not two of you. Jared. Well, you said we'll take those as yeses. I'll vote yes. So, we'll move back into the counsel workroom. Fort Haramman. We need council. We need uh Nathan, Wendy, Todd, Blake, Blake, and then we'll bring Chief Stark. I got your back. Then we'll bring Aaron in as needed. So, thank you everybody.