Provo City Adopted Budget FY 2022

1 Provo City Corporation | 351 W Center St Provo, UT 84601 | Phone No: 801-852-6504

Provo City Adopted Budget FY 2022: Table of Contents

Executive Summary Mayor’s Letter ...... 5 Organizational Chart ...... 6 Elected and Staff Positions ...... 7 Council Budget Priorities Statement ...... 8 Provo City Vision Statement...... 10 General Plan Implementation Report ...... 11

Informational Section Budgeted Information ...... 21 Budget Timeline ...... 22 Budget Highlights ...... 23 Functional Unit Matrix ...... 29

Financial Information Proposed Budget by Fund FY 2021 ...... 31 All Funds Summary FY 2021 ...... 32 FTE Summary ...... 34 General Fund Information ...... 36

General Fund Departments Municipal Council ...... 42 Legal ...... 43 General Services ...... 44 Mayor’s Office & Media ...... 45 Administrative Services – General Fund ...... 47 Recorder Division ...... 48 Human Resources Division ...... 49 Finance Division ...... 50 Cybersecurity Division ...... 51 Information Systems Division ...... 52 Community & Neighborhood Services ...... 53 Development Services ...... 55 Economic Development Division ...... 56 Fire Department ...... 57 Police Department ...... 59 Streets and Engineering Divisions ...... 61 Parks and Recreation ...... 63

Enterprise Funds Enterprise Fund Information ...... 67 Airport ...... 68 Power ...... 70 Peaks Ice Arena ...... 72 Sanitation ...... 74 Wastewater ...... 75 Water ...... 77 Utility Transportation ...... 79 Golf Course ...... 80

Special Revenue Funds Justice Court ...... 83 Emergency Response ...... 85 Trust and Agency ...... 86 Library ...... 87 Covey Center for the Arts ...... 89 Cemetery Perpetuity ...... 91 Cemetery Plots ...... 92 Community & Neighborhood Services ...... 93

Capital Improvement Funds General ...... 97 B&C Roads ...... 98 Engineering ...... 99 Parks ...... 100 Economic Development ...... 101

Internal Service Funds Internal Service Fund Information ...... 103 Employee Benefits ...... 104 Insurance and Claims ...... 105 Facility Services ...... 106 Computer Replacement ...... 107 Vehicle Maintenance ...... 108 Vehicle Replacement ...... 107 Telecom ...... 109 Customer Service ...... 111

Debt Service Funds Debt Service Fund Information ...... 114 Current Debt Obligations and Legal Debt Margin ...... 116 Bond Ratings ...... 118

Capital Improvement Plan Capital Improvement Program Consolidated Budget Plan ...... 120 Summary of Significant Non-Recurring Projects ...... 121

Other Information Top Rankings & Location ...... 123 Demographic Information ...... 124 Long Term Planning ...... 125 Principles of Financial Management ...... 128

Appendix Stormwater Service District ...... 140 Provo City Redevelopment Agency ...... 142 Glossary ...... 144 Consolidated Fee Schedule Changes Summary ...... 149

Executive Summary

May 4, 2021

Good evening Council Chair Sewell, Vice Chair Shipley, and fellow Councilors,

I am pleased to submit to you a balanced budget where revenues equal expenses. I would like to thank each of my directors for putting in long hours of hard work so the Council could take a deep dive and get a transparent view of each departments’ budget. I thought they were excellent presentations. We began working on the budget in January, projecting both department and city needs. The Council’s Fiscal Year 2022 budget priorities statement was helpful in this process and became a roadmap for our decision making. Of note: • Councilor Harding’s concerns when it came to increasing the bandwidth of our funding projects; • Councilor Shipley’s desire to have ‘intent language’ that can be outcome-based which will be an ongoing conver- sation; • Councilor Handley’s suggested phasing of a plan over the next 2-3 years to meet the needs of our police department; • Councilor Ellsworth’s recommendation to get support documents for our Strategic Parking management plan to capture the institutional knowledge when making significant progress.

So, thank you!

My number one focus was to restore my employees back to a “pre-Covid” state and make them whole. The Council was also in full support. I asked a lot from our employee’s last year, including budget cuts, hiring freezes, no sick-leave buyout and many other cuts and sacrifices so we would be prepared to weather a pandemic. We are pleased to be able to include the following: • Coverage of-Employees’ Health insurance cost increase • Utah Retirement System • Merit increases • Career Series advancements and Market Study increases • Employee Appreciation/ Recognition • Birthparent and adoption leave • Sick-leave buyout will be restored

These are just a few items in our budget that I am particularly interested in and wanted to highlight. None of this could happen without John Borget, Director of Administrative Services and his team, especially David and Kelsey. I welcome and encourage you as a Council to carefully review our recommended budget. As always, I also welcome input from our Provo citizens. Respectfully,

Mayor Michelle Kaufusi

Organizational Chart

Provo City Adopted Budget 2021-2022 6

Elected and Staff Positions

Left to right: Shannon Ellsworth, Travis Hoban, Bill Fillmore, Mayor Michelle Kaufusi, Dave Sewell, George Handley, David Harding, David Shipley

City Administration City Council

Mayor ...... Michelle Kaufusi District 1: Bill Fillmore Deputy Mayor ...... Isaac Paxman Present Term: Jan. 2020–Jan. 2024 Chief Administrative Officer ...... Wayne Parker District 2: George Handley Present Term: Jan. 2018–Jan. 2022 Assistant Chief Administrative Officer ...... Dixon Holmes Administrative Services ...... John Borget District 3: Shannon Ellsworth Present Term: Jan. 2020–Jan. 2024 City Attorney ...... Brian Jones District 4: Travis Hoban Community & Neighborhood Services ...... Gary McGinn Present Term: Jan. 2020–Jan. 2024 Customer Service ...... Karen Larsen District 5: David Harding Development Services ...... Bill Peperone Present Term: Jan. 2018–Jan. 2022 Energy ...... Travis Ball Citywide District I: Dave Sewell (Chair) Fire Chief ...... James Miguel Present Term: Jan. 2018–Jan. 2022 Library Services ...... Gene Nelson Citywide District II: David Shipley (Vice-chair) Present Term: Jan. 2020–Jan. 2024 Parks and Recreation ...... Scott Henderson

Police Chief ...... Rich Ferguson Executive Director: Clifford Strachan Public Works ...... David Decker

Provo City Adopted Budget 2021-2022 7

Provo City Adopted Budget 2021-2022 8

Provo City Adopted Budget 2021-2022 9

Provo City Community Vision Statement

In 2017, Provo City revised its General Plan and included a Community Vision Statement featuring eight core values. These values served as a basis for goals and performance measures and can be viewed at https:// provo.municipal.codes/GenPlan/CVS-CoreValues. An overview of the vision statement is provided below.

Community Visioning Provo — an inspiring place to live, learn, work, and play We value:

• Faith, respect, and service to each other and our community

• Individual responsibility

• Families and individuals

• Our environment and natural amenities We support:

• Safe, desirable neighborhoods

• A vibrant economy and high-quality jobs

• Fiscally responsible governance

• Life-long education

With the guidance of the Community Vision Statement and the focus on the eight Provo Core Values, the General Plan provides specific goals and objectives for each of the following topics:

Family Education Safe City Business & Economic Vitality Community Responsible Government Faith Healthy, Inviting Environment

Full Report See the 2020 General Plan Goals - Google Sheets the full report or contact Cliff Strachan at the Council Of- fice. Each column of the spreadsheet for the full report can be filtered (e.g. show only goals with a status of “In Progress”) by selecting the inverted pyramid next to each column header, clicking on “Clear” under “Filter by Values,” and then selecting the categories you want shown. When you are finished, please remove your filters for the next person who uses the spreadsheet.

Background Provo City Code 2.50.130(o) directs the Municipal Council Executive Director to “Coordinate an annual Council review of the priorities and implementation strategies of the General Plan.” Pursuant to that man- date, Council staff reached out to all City departments and division that have elements within the General Plan. The departments self-reported about the progress of the goals that fell within the purview of their operations and provided a brief update about their work towards each goal.

Of the 420 goals outlined in the General Plan, 28 have been completed, 359 are ongoing with no anticipated end date, 10 need clarification from City Council, 8 are redundant with other goals, 5 are unattainable, and 10 have not been started.

Most of the goals in the General Plan relate to the daily operations of various City departments, and so many of those goals have been reported as “ongoing.” In the last year Provo has completed a few milestones that cover several areas of the General Plan.

Implications for the Budget General Plan items can have implications for annual budgets as some items require additional funds. Please refer to the rest of this section for a selection of examples. While not technically a department, the Landmarks Commission noted on two goals that they lack sufficient grant money to identify and preserve historical sites outside of the downtown area. Community Development noted that accomplishing the goal to conduct a comprehensive, city-wide housing audit (3.4.2.1) would require a budget allocation. However, there may be a way to do this by partner- ing with the Provo City Housing Authority and others. In order to make progress on Zoning Enforcement (1.4.9.2) they need to fund all of their allocated FTE’s. The Provo Police Department is asking for more officers to bring up the ration of officers to population from 0.91 to 1.49. (5.4.4.2) at this ratio Provo would be comparable to other municipalities surrounding Provo. Economic Development can conduct a needs assessment for (7.4.5) “Determine the Appropriate types of business for Provo to foster growth” this would also help with (7.4.4) “Foster the entrepreneurial spirit and the reality of Provo as the preeminent place to start a business in Utah Valley. And Public Works Engineering, concerning the goal to “Work towards becoming a gold-level bicycle- friendly city” (2.4.2.9) reported that “Provo is currently a silver-level bicycle-friendly city. Additional bicycle facilities will be implemented as funding is available in conjunction with capital improvement projects.” If the Council desires to accelerate this goal, additional funding will likely be necessary.

The most frequently noted reasons for not making progress toward a goal are that the department felt they needed a policy decision or clarification to be made before taking action (10 goals), or not started (10 goals). Please see the tables on the following pages for a complete list of goals in each category.

Next steps Council staff will: • Continue to review and promote the General Plan among City departments.

• Provide lists of General Plan goals that are unclear, not started, require policy direction, etc. to the Planning Commission, which is working on another update of the General Plan) and the Council.

• Work with City Departments to remove impediments or find solutions to these problematic goal statements.

• Report back to the Council with recommended changes to the goals. • The General Plan is currently going through an update. We anticipate it will be done prior to next year’s General Plan Goals review.

Informational Section

Budget Information

Basis of Budgeting This budget document is prepared using the modified-accrual basis for all funds, the same basis used to prepare the City’s financial statements in the Comprehensive Annual Financial Report. The modified accrual method is a governmental accounting method where revenue is recognized when it becomes measurable and available. Expenditures are typically recognized in the period in which the liability is incurred. Budgets are prepared annually, with regular review with each department director. All funds included in the budget book are legally appropriated by the Municipal Council. Budget Administration and Methodology Provo City’s Finance Division in the Administrative Services Department assists the Mayor in preparing the City’s budget, following regulations from the Utah State Auditor’s Office and within approved guidelines listed in the Utah Municipal Code 10.6 Uniform Fiscal Procedures for Utah Cities. The budget team works closely together to present to the Munici- pal Council a balanced budget. The balanced budget methodology means that revenue is greater than expenditures, revenue equals expenditures, or revenue and appropriated fund balance equals expenditures. An approved budget is required for any fund that will have expenditures throughout the year. Further budget policies and processes will be discussed throughout the budget book.

Budget Approval Once the budget process is complete, the Mayor presents the completed budget to the Municipal Council by the first Tuesday in May. The Council then reviews the budget and presents any questions or concerns to the administration. Two public hearings are held in the month of June during regularly scheduled Council meetings. Per Utah State Code, the budget must be adopted by resolution by June 30th of each fiscal year, unless the City is planning on Truth in Taxa- tion. If the City holds a Truth in Taxation hearing, the budget must be adopted by August 31st. Once the budget is adopted, this becomes the legal working budget for each department/division in the City. The budget resolution presented to the Council provides the budget staff with the ability to make changes to the budget throughout the fiscal year. The resolution provides for the following:

• Authorization to carry outstanding encumbrances and project/grant balances from one fiscal year to the next, and authorization to re-appropriate with the Mayor’s approval.

• Capital Improvement Function funds cannot be deleted; changed in budget amount by more than 10% of the original cost or $50,000, whichever is less; or new functions added without approval from the Municipal Council.

• Authorization to move budget appropriations along with needed expenditure adjustments including capital labor from the individual enterprise funds to the corresponding capital improvement fund in conjunction with the capital expenditure.

• Authorization for the Mayor to increase appropriations for revenues in excess of the adopted budget in the following areas: Police & Fire reimbursable overtime, medical supply inventory, grants, cemetery fees received in Parks & Recreation CIP Fund, lease and interest revenue, new development street signs and street overlays, impact fees, aid-to-construction, reimbursements, revenues in self-sustaining funds, and donations.

• Mayor is authorized to transfer excess fund balances of funds subsidized by the General Fund, Justice Court, and Trust and Agency back to the General Fund.

Budget Presentation Each fund or department’s financial report includes three years of actuals, the FY 2021 “adjusted” budget and the FY 2022 adopted budget. The adjusted budget includes the FY 2021 adopted budget, carryover from the previous fiscal year—including capital project budgets, and any appropriations that occurred during FY 2021.

Provo City Adopted Budget 2021-2022 21

Provo City Adopted Budget 2021-2022 22

Budget Highlights

4 May 2021

Municipal Council:

I am pleased to submit our proposed budget for the City of Provo, Utah for the fiscal year beginning July 1, 2021 and ending June 30, 2022.

This budget is the result of many hours and the contributions of Council members, the public, employees, and City leadership.

Preparation for the Fiscal Year 2022 budget began in January 2021 with the Mayor, CAO, and administrative budget team looking at early revenue forecasts, projected retirement and insurance increases, and department needs for the Fiscal Year 2022.

The administrative budget team met with the City Administration to monitor and plan for the following:

• Revenue Needs & Forecasts • Budget Expenses & Shortfalls • Merit Increases, Retirement, Health Insurance, Operation and Maintenance Needs, Capital Needs, Vehicle Replacement, Outsourcing, Adequacy of Fees & Taxes • The FY2022 5-year Capital Improvement Plan included recommended changes made by Municipal Council staff and include priority levels, operating budget impact, and identifying whether funding sources have been identified.

Provo City continues to work hard in maximizing every dollar and providing a great value to our residents. Our employees understand that every tax dollar we receive is a sacrifice from our residents who trust us to use it wisely.

The 2022 budget supports our ongoing goal of continued fiscal health with a sustainable budget. Monies are invested in capital improvements, vehicle replacement, and employees. Provo City employees are among the greatest and most critical assets the City has, and by investing in them, we are better able to recruit, develop, and retain top employees.

The Administration continues to look for opportunities for its employees to grow and be prepared to become future leaders at the City. The City continues to provide to full- time employees the opportunity to apply to the education assistance board to further their education and be reimbursed by up to fifty percent of their educational costs.

The Administration has reviewed and addressed the Budget Priorities that were provided by the Municipal Council in the 2022 Tentative Budget.

In accordance with Council and Administration priorities to promote the sustainability and long-term outlook of the City, rates and fees are designed to cover costs of their services. Included in the appendix to the Budget Document is a list of Consolidated Fee

Schedule changes. A comprehensive list of fees is included in Provo City Code as well.

Utility rate increases are being implemented to fund ongoing operational and capital improvements throughout the City.

The following utility rate increases are being included in the recommended budget: • An average 10% or $6.89 monthly increase per average residential home on wastewater utility sales (Wastewater Fund) • An average 5% or $2.37 monthly increase per average residential home on water utility sales (Water Fund)

The graph below depicts the City’s position compared to other cities after implementing the proposed rates, excluding Energy. This graph would assume that other comparable entities make no other changes to their current rates.

Funded Personnel Costs

To improve retention of existing employees, and recruitment of new employees the following personnel costs are included in the budget: • Merit Increases (2.5%) • Health Insurance Cost Increases (4.1%) • Career Series Advancements and Market Study increases • All full-time positions were reviewed, and market adjustments were made to the grades of those positions that were 5% below the market. • Based on market study results, Fire employee wages increased by $615,228. • Sick leave buyout was restored • Utah Retirement System • Employee Appreciation • Employee Recognition • Birth Parent and Adoption leave

Expenditures All departments and divisions continue to do the same or more with very limited operational budget changes. The expenses below are categorized as restored budget cuts, supplemental requests, and other funded items. Included Category Description Amount Yes Payroll Sick leave buyout 542,833 Yes Capital replacement Rec Center 400,000 Yes Capital replacement General Fund assets, excluding City Hall 247,611 Yes Travel/Training Cuts in 2021 76,731 Yes Operating expenses Cuts in 2021 71,975 Yes Payroll Employee Recognition 101,100 No Payroll 1 IS Tech I position not funded in fiscal 2021 20,249 Yes Payroll Economic Development position 1 108,183 No Payroll Economic Development position 2 108,183 Yes Payroll CNS position funded by CDBG in FY2021 96,167 Yes Payroll CNS position funded by CDBG in FY2021 96,167 Yes Payroll CNS Code Compliance Officer not funded in FY2021 76,105 Yes Payroll CNS Code Compliance Officer not funded in FY2021* 38,052 Yes Payroll Engineer position 1 89,293 Yes Payroll Engineer position 2 89,293 Yes Payroll Rec Program Coordinator 80,543 No Payroll Justice Court Clerk - Part-time not funded in fiscal 2021 18,359 Yes Operating expenses Parks & Recreation - various functions 111,750 *While both code compliance officer positions were added back into the FY22 budget, one of them won’t be eligible for hire until January 2022.

Supplemental Requests In addition to restoring budget cuts, the Administration reviewed supplemental requests. Each department/division had the opportunity to submit supplemental requests as part of the Fiscal Year 2022 budget process. Thirty-nine requests were made, totaling $3,925,994. Of that amount, $212,985 has been funded in FY2022 in the following departments:

Police $116,846 will fund one new police officer position, including uniform, equipment, and payment towards a patrol car. This position’s funding will come from projected revenue increases.

$116,846 will fund a second new police officer position, including uniform, equipment, and payment towards a patrol car. This position’s funding source is savings from the removal of two current civilian positions.

Due to the transition time it takes to fill positions this year we are utilizing a credit in the amount of two positions $176,000 in then providing funding in the needed categories of the Police Department.

Community & Neighborhood Services $74,899 will fund one parking enforcement officer position. This position’s funding will come from projected parking violation revenue increases.

$15,800 will fund a part-time parking enforcement office specialist. This position’s funding will come from projected parking violation revenue increases.

Development Services $30,050 in operating budget increases will cover regular expenses (printing, training, travel, etc.) that were not included in the Development Services’ budget when the department was created two years ago.

Parks and Recreation $46,560 will cover Bus Rapid Transit (BRT) landscape maintenance. Provo City and UDOT agreed that the City would ultimately be responsible for landscape maintenance around the bus stops. This funding will enable Provo City to fulfill that obligation by providing the Parks & Recreation department with resources for ongoing maintenance and care for center island and boulevard landscapes, irrigation maintenance, utility costs, and personnel costs.

$21,675 will fund Cougar Blvd landscape maintenance. This funding will cover ongoing maintenance and care for center island and boulevard landscapes, irrigation maintenance, utility costs, and personnel costs.

Fleet $36,400 will pay for two intern positions in Fleet.

Wastewater $10,000 has been budgeted for Wastewater overtime.

Other Funded Items In addition to restoring cuts and adding supplemental requests, the Fiscal Year 2022 budget also includes funding for a Parking Coordinator ($112,128) and Mayor & Coun- cil wage increases (totaling $18,247, as determined by an independent committee). The budget includes the assumption that a $530,053 Airport property purchase will be funded through a fund balance appropriation during the fiscal year. In the past (except for the Fiscal Year 2021 budget), Provo City has provided regular capital replacement funding for the Recreation Center – approximately $400,000 each year. During discussions on the Fiscal Year 2022 budget, the Parks and Recreation department and the Administration agreed to propose a new funding model. Currently the Parks and Recreation Department sells the Triple Play season pass that provides access to amenities at the Recreation Center, Peaks Ice Arena, and the Timpanogos Golf Club. To meet the capital needs of these three facilities, beginning in fiscal 2022, a funding mechanism will be established in a new fund which will be called the Recrea- tion Facilities Capital Fund. Each year after the completion of the fiscal year, revenues will be compared with expenses at the Recreation Center to determine net income. The general fund will contribute to the Recreation Facilities Capital Fund the first $400,000 of net income. If net income for the recreation center exceeds $400,000, the general fund will contribute half of the amount that exceeds $400,000 to the Recreation Facilities Capital Fund, the other half will fall to general fund balance. If fund balance at the Peaks Ice Arena or the Timpanogos Golf Club exceeds 25% of revenues, a transfer of the excess will be made to the Recreation Facilities Capital Fund.

Funding for IT infrastructure for the New City Hall/Public Safety building of $642,474 is included in the budget. The Telecom Fund is providing $147,500 and the Equipment Replacement Fund for the existing City Center is providing $494,974. A breakdown on the needed IT infrastructure is as follows:

• Networking equipment - switches, cables, other misc. equipment. This equipment is critical infrastructure that allows city workstations, phones, sur- veillance cameras, access control systems to communicate within the city network to trusted government agencies and to the Internet.

• Phone System Replacement - Current phone system has its origins in the late 1990’s. As we prepare to move into the new City Hall/Public Safety Building moving and reinstalling the existing equipment would be difficult and not in the best interest of the City.

• Wireless Network – The current City Center has some wireless access point that can be moved over, but only accounts for about one third of the needs of the new City Hall/Public Safety Building. This funding will ensure that all of the necessary WIFI equipment is installed.

• Storage Area Network (SAN) – Replace existing aging data storage infrastructure and upgrade capabilities to meet the growing data needs of the City when moving to the New City Hall/Public Safety Building.

The budget includes funding from a Recreation, Arts, and Parks (RAP) Tax that was approved by the voters in November 2015. The proposed budget assumes the tax will generate approximately $1.634 million in Fiscal Year 2022 for recreation and arts projects.

The City has included in the budget the recommended vehicle replacements from the City Fleet Committee.

During fiscal 2016, the City selected and started the implementation of a Citywide Mu- nicipal Software Solution (Provo 360):

• The City is live with the finance, licensing, customer information system (CIS), work order management system (WMS), and community development applications.

• The City recently went through an extensive selection process to select a new Human Capital Management System (HCMS). A HCMS partner has been selected and the implementation is well underway and expected to go live on July 1, 2021.

• The vision for Provo 360 is to provide our residents, businesses, students, employees, Administration, and visitors with a 360-degree view of the City at any time, from anywhere, and from any device. The Provo 360 Core Team, Administration, and the Municipal Council are working towards solutions to

make information requests and transactions accessible, easy, and even en- joyable for our customer while giving our Administration the same 360- degree view to enable them to service, resource, measure, refine, and improve like never before.

Summary Provo City has been recognized as a community of choice by recent national accolades and the citizen survey results. Our goal is to provide residents with the services they need in an efficient and transparent manner. I believe the budget process forces us to make difficult decisions and prioritize what items should be funded. The City continues to make difficult decisions to reduce ongoing costs and to strengthen revenues. For Fiscal Year 2022, the Administration is proposing a balanced budget. During the 2022 budget process, there has been an attempt to make good financial decisions that consider both the short-term and long-term impacts.

We welcome and encourage your careful review of our recommended budget. We also welcome the input of our residents as we proceed through the process of adopting the City’s annual budget. As always, our staff is at your disposal to respond to questions and assist in any way the Municipal Council would like over the next several weeks. We believe that you will find this budget responsive to your concerns and aspirations and forward-thinking as we plan together for the future of the Provo community.

Sincerely,

John Borget Director of Administrative Services

Functional Unit Matrix Departments

(Functional Units)

Municipal Municipal Council Legal Office Mayor's Media & Admin. Services NH Comm.& Services Services Dev. Fire Police Rec. & Parks Energy Works Public Library Customer Service Depart. Non GOVERNMENTAL FUNDS General Fund X X X X X X X X X X ENTERPRISE FUNDS Airport X Power X Peaks Ice Arena X Sanitation X Wastewater X Water X Utility Transportation X Golf Course X SPECIAL REVENUE FUNDS Justice Court X Emergency Response X Library X Covey Center X Cemetery Perp. X Cemetery Plots X Vending X CDBG X Rental Rehabilitation X Home Consortium X Special Purpose Grants X CAPITAL IMPROVEMENT FUNDS General CIP X B&C/Engineering X Parks CIP X Econ Dev CIP X INTERNAL SERVICE FUNDS Employee Ben. X Insurance & Claims X Facility Services X Computer Replacement X Vehicle Maintenance X Vehicle Replacement X Telecom X Customer Service X DEBT SERVICE FUNDS Debt Service X ERP Debt Service X Telecom Debt Service X

Financial Information

FY2022 Adopted Budget by Fund Change in Fund Revenue Transfer In Expenditures Transfer Out Fund Balance General Fund $ 60,304,901 $ 13,583,445 $ (65,137,920) $ (8,750,426) $ - Enterprise Funds Airport 1,463,725 225,148 (1,688,873) - 0 Energy 76,138,463 - (74,574,909) (11,190,670) (9,627,116) Golf Course 1,611,100 - (1,594,823) - 16,277 Peaks Ice Arena 1,600,000 - (1,646,102) - (46,102) Sanitation 6,436,500 - (5,734,225) (757,003) (54,728) Utility Transportation 2,200,000 - (2,140,000) - 60,000 Wastewater 52,475,875 - (41,700,377) (3,259,008) 7,516,490 Water 47,309,530 583,820 (46,698,178) (1,938,070) (742,898) Total Enterprise Funds 189,235,193 808,968 (175,777,487) (17,144,751) (2,878,077) Capital Improvement Funds B&C Road 50,000 2,946,745 (2,840,000) - 156,745 Engineering 6,667,100 - (6,185,870) (50,000) 431,230 General CIP - 908,029 (908,029) - - Golf - - - - - Economic Development CIP - - - - - Parks & Recreation CIP 5,810,399 1,633,532 (9,060,895) (300,496) (1,917,460) Total Capital Improvement Funds 12,527,499 5,488,306 (18,994,794) (350,496) (1,329,485) Special Revenue Funds Covey Center 623,300 398,077 (981,377) - 40,000 Cemetery Perpetuity 3,500 267,500 - (168,984) 102,016 Covey Center Performance 200,000 - (200,000) - - Emergency Response 848,983 1,768,734 (2,617,717) - 0 Justice Court 1,212,455 276,963 (1,489,418) - - Library 4,621,805 - (4,752,368) - (130,563) Trust & Agency 130,000 - - - 130,000 CNS 3,247,050 - (2,997,912) - 249,138 Total Special Revenue Funds 10,887,093 2,711,274 (13,038,791) (168,984) 390,591 Debt Service Telecom 20,000 3,250,000 (3,221,563) - 48,437 ERP - 2,117,277 (879,807) (1,235,491) 1,979 General 8,325,106 469,480 (8,176,087) (440,000) 178,499 Total Debt Service Funds 8,345,106 5,836,757 (12,277,457) (1,675,491) 228,915 Internal Service Funds Computer Replacement - 642,474 (642,474) - - Customer Service 3,094,440 75,000 (3,065,364) (105,000) (924) Employee Benefits 1,868,435 - (1,868,438) - (3) Vehicle Replacement 5,584,849 125,000 (6,261,366) - (551,517) Facility Services 1,388,676 247,611 (1,636,288) (494,974) (494,975) Telecom 490,000 - (337,243) (147,500) 5,257 Insurance/Claims 2,370,524 - (2,048,316) - 322,208 Vehicle Maintenance 2,965,100 - (3,054,395) - (89,295) Total Internal Service Funds 17,762,024 1,090,085 (18,913,883) (747,474) (809,249) Total - All Funds $ 299,061,816 $ 29,518,835 $ (304,140,333) $ (28,837,622) $ (4,397,304)

*Storm Drain - See Appendix 6,117,783 - (5,071,861) (681,213) 364,709 *Redev. Agency - See Appendix 1,409,355 - (1,184,648) - 224,707 Adjusted Total 306,588,954 29,518,835 (310,396,841) (29,518,835) (3,807,888)

Provo City's FY 22 Budget amount *Storm Drain and the Redevelopment Agency are separate legal entities outside of the Provo City organization and consequently have individual budgets that are approved separately.

Provo City Adopted Budget 2021-2022 31

Original Budget Adjusted Budget Tentative Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 All Funds Summary FY 2021 FY 2021 FY 2022 FY 2022 Revenue & Transfer In Utility Sales $ 101,100,695 $ 104,497,165 $ 106,229,733 $ 109,307,971 $ 109,287,971 $ 113,397,313 $ 113,397,313 Sales Tax 18,973,348 19,582,083 20,675,621 19,850,000 19,850,000 23,843,437 23,843,437 Chargeback 13,413,378 13,447,469 14,526,004 17,515,783 17,515,783 17,089,714 17,236,198 Property Tax 13,059,867 12,652,945 18,090,329 18,597,941 18,597,941 19,003,092 18,881,971 RAP Tax 1,277,460 1,349,125 1,433,495 1,325,000 1,325,000 1,633,532 1,633,532 Franchise Fee 9,748,909 9,861,746 9,602,848 10,421,947 10,106,947 10,848,000 10,848,000 Fees 19,756,724 24,130,307 21,517,136 25,935,581 25,493,676 26,987,090 27,302,090 Grants 13,902,271 8,042,363 31,283,633 46,771,038 46,771,038 41,664,594 42,020,063 Telecom Debt Charge 3,421,532 3,446,734 3,382,212 3,250,000 3,250,000 3,250,000 3,250,000 B&C Roads 3,737,444 3,963,322 3,846,845 4,000,000 4,000,000 4,000,000 4,000,000 Fines 522,320 658,371 631,000 750,000 750,000 600,000 690,699 Miscellaneous 13,156,711 16,882,529 16,790,196 1,708,304 4,346,718 2,659,510 2,263,700 Other Tax 1,406,749 1,284,657 3,383,003 2,885,000 3,200,000 3,203,213 3,283,213 License 232,677 546,755 447,555 463,000 463,000 500,000 500,000 Principal/Interest Income 1,957,378 7,999,482 4,129,299 2,495,796 2,475,796 1,898,100 1,911,600 Land Sales 1,833,925 347,057 3,686,695 - - - - Loan/Bond Proceeds 35,605,946 70,850,258 5,000,000 15,000,000 15,000,000 28,000,000 28,000,000 Transfer In 22,614,147 23,198,971 29,698,103 26,971,389 26,971,389 29,336,033 29,518,835 Total Revenue & Transfer In 275,721,481 322,741,338 294,353,706 307,248,750 309,405,259 327,913,628 328,580,651 Expenditures & Transfer Out General Fund 63,999,206 64,615,934 67,722,715 68,363,010 79,464,232 73,463,041 73,888,347 Enterprise Funds 122,132,702 134,339,520 144,578,120 187,102,236 234,821,626 192,722,134 192,922,238 Capital Improvement Funds 12,697,765 15,551,391 28,258,737 16,664,394 107,429,821 19,345,290 19,345,290 Special Revenue Funds 12,728,322 11,363,581 13,398,054 15,141,012 17,811,586 13,137,679 13,207,775 Debt Service 38,008,093 9,610,015 15,596,139 13,730,648 13,730,648 13,952,948 13,952,948 Internal Service Funds 16,658,322 17,195,775 18,378,374 17,163,592 22,938,144 19,502,782 19,661,357 Total Expenditures & Transfer Out 266,224,410 252,676,216 287,932,139 318,164,892 476,196,057 332,123,874 332,977,956

Net Change in Fund Balance $ 9,497,071 $ 70,065,122 $ 6,421,568 $ (10,916,142) $ (166,790,798) $ (4,210,246) $ (4,397,304)

Provo City Adopted Budget 2021-2022 32

Total expenditures above include the cost of purchased power from Utah Municipal Power Agency, which is included in the Enterprise Funds total. Total expenditures are compared both with the purchased power cost and without the purchased power cost.

Adopted Budget FY 2022

Debt Service Internal Service Funds 4% 6%

Special Revenue Funds 4% General Fund 22% Capital Improvement Funds 6%

Enterprise Funds 58%

Adopted Budget FY 2022 (without Purchased Power) Debt Service 5% Internal Special Revenue Funds Service 4% Funds 7% General Fund Capital Improvement Funds 26% 7%

Enterprise Funds 51%

Provo City Adopted Budget 2021-2022 33

Personnel Totals by Department (Full-Time Equivalents)

FY FY FY FY FY FY FY FY FY FY 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Diff Parks 118.0 134.3 163.2 156.8 156.9 158.4 166.1 162.3 164.8 163.3 (1.5) Police 166.2 165.0 164.9 168.5 172.0 174.7 150.5 156.5 155.0 157.2 2.2 Fire 83.0 81.3 80.0 80.0 80.0 83.0 83.0 83.0 84.0 84.5 0.5 Com & Neighbor Srvc 22.3 22.3 24.3 24.3 27.3 26.3 26.0 15.0 15.5 22.6 7.1 Engineering 16.3 16.3 18.5 18.5 19.1 19.1 19.6 19.6 18.0 20.5 2.5 IS 15.5 15.5 15.5 16.3 16.0 16.0 16.4 19.4 18.2 18.2 0.0 Streets 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 - Development Services ------12.0 15.0 15.0 - Legal Services 13.4 13.4 13.4 13.3 13.3 14.0 14.0 14.0 13.5 14.8 1.3 Mayor's Office 6.8 6.8 11.4 11.6 11.4 12.4 10.4 10.4 11.3 11.3 0.0 Municipal Council 7.7 8.0 7.7 8.3 8.3 8.8 8.8 8.8 8.6 8.7 0.1 Finance 9.9 9.5 9.5 9.5 8.0 8.0 9.0 7.0 8.5 8.5 - Human Resources 8.4 8.5 8.5 8.5 8.5 8.5 8.5 7.5 7.6 7.6 0.0 Economic Dev. 4.0 4.0 4.0 4.0 4.0 4.0 3.0 3.0 1.0 2.0 1.0 Recorder 1.0 1.0 1.0 1.0 1.0 1.6 1.6 1.6 1.4 1.4 0.0 General Fund Total 488.7 502.4 537.1 535.4 541.8 550.8 533.0 536.1 538.4 551.7 13.2 Energy 65.0 63.0 64.5 66.1 66.6 69.1 69.1 69.8 66.5 68.0 1.5 Library 53.2 52.1 57.6 57.8 61.0 57.7 59.1 59.2 58.8 58.7 (0.1) Water 32.1 32.4 36.0 36.6 36.6 35.1 36.1 36.6 39.5 39.5 (0.0) Wastewater 27.6 27.8 27.8 28.3 28.3 29.1 31.1 34.9 33.9 34.4 0.5 Emergency Response 9.0 9.0 7.0 5.0 4.0 4.0 27.0 26.0 25.2 28.3 3.1 Customer Service 27.7 31.6 31.5 29.5 30.2 29.7 35.1 37.6 25.0 25.1 0.1 Sanitation 14.2 13.6 13.6 16.6 16.6 19.4 21.4 21.4 21.4 21.0 (0.4) Golf 7.7 7.7 7.7 7.7 12.2 12.2 13.2 13.2 15.1 15.1 0.0 Peaks Ice Arena ------14.5 14.5 14.5 14.5 0.0 Covey Center 12.4 12.4 11.3 15.3 15.3 15.3 15.3 15.3 15.3 11.5 (3.9) Vehicle Maintenance 8.0 8.0 8.0 8.0 8.0 8.0 8.0 9.0 9.0 10.3 1.3 Justice Court 12.8 12.8 12.6 11.5 11.5 9.5 9.5 9.5 9.0 10.0 1.0 Facilities 7.5 8.0 8.0 8.0 8.0 8.0 8.0 8.0 7.5 7.5 - Airport 3.7 3.7 3.7 4.2 4.2 4.2 4.2 5.2 6.2 6.2 (0.0) CDBG ------5.0 6.0 4.0 (2.0) Insurance/Claims 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 - Employee Benefits 0.6 0.7 0.7 0.7 0.7 0.7 1.0 1.0 1.0 - Media Services 3.1 2.6 ------Telecom 1.0 1.0 ------Non GF Total 285.8 287.1 290.8 296.1 304.0 302.9 353.2 367.2 354.9 355.9 1.0 Total 774.5 789.5 827.9 831.5 845.8 853.7 886.1 903.3 893.3 907.6 14.2

Provo City Adopted Budget 2021-2022 34

Full-Time Equivalent Changes—Explanation

The number of Full-Time Equivalent (FTE) employees experienced a net increase of 13.5 FTEs in the FY22 budget. This is due to the following factors: • Positions were restored to the budget that had been cut from the FY21 budget due to COVID-19. • New positions were added to the FY22 budget based on supplemental requests. • Some positions had the incorrect FTE formula in previous budgets, and that was corrected in the FY22 budget. • Some positions had been accidentally excluded from the FY21 budget due to miscommunications or formula errors. These have been added back to the FY22 budget. • Small adjustments were made to part-time position hours in some departments.

FTE Changes to General Fund Net Changes Department in FTEs Explanation 1.00 FTE - Rec Coordinator position restored after being cut due to COVID-19; Parks -1.50 Several part-time position hours adjusted across the department 1.00 FTE - 1 new officer added to FY22 budget per supplemental request. 2.00 FTE - 2 positions accidentally excluded from the FY21 budget; added back to FY22. 0.20 FTE - Part-time position hours adjusted Police 2.20 1.00 FTE - 2 civilian positions removed from FY22 budget and replaced with 1 sworn officer; net -1.0 FTE Fire 0.50 0.50 FTE - 1 part-time management analyst was added mid-FY21 by appropriation 2.00 FTE - 2 positions moved back in FY22 after being funded by CDBG in FY21 due to COVID. 1.50 FTE - Code Compliance Officers added in FY22 after being cut in FY21 due to COVID. 1.06 FTE - Office Specialist I and Hearing Examiner accidentally excluded from FY21 budget 1.00 FTE - New Parking Coordinator added to FY22 budget per supplemental request 1.00 FTE - New Parking Enforcement Officer added to FY22 budget per supplemental request CNS 7.06 0.50 FTE - New Parking Enforcement Office Specialist added to FY22 budget per supplemental request 2.00 FTE -Two engineer positions added in FY22 budget after being cut in FY21 due to COVID Engineering 2.50 0.50 FTE - Intern hours increased from 89 to 108 (0.5 FTE)

Legal 1.30 1.30 FTE - Corrected part-time formula for four part-time employees. Municipal Council 0.10 0.10 FTE - Intern hours increased by 200 hours. Economic Development 1.00 1.00 FTE - Management analyst position added in FY22 after being cut in FY21 due to COVID.

FTE Changes to Other Funds

Net Changes Department in FTEs Explanation 1.00 FTE - 1 Electric Utility Locator position included in FY22 Energy 1.50 0.50 FTE - New GIS CAD Intern position in FY22 budget Library -0.10 0.10 FTE - Adjustment to part-time hours in FY22 budget 0.50 FTE - Stormwater Systems Maint Worker position is supposed to be shared between Wastewater and Stormwater, but in FY21, 100% of the cost was budgeted in Stormwater. This was Wastewater 0.50 corrected in FY22. 2.00 FTE - 2 dispatcher positions were accidentally excluded from FY21 budget Dispatch 3.10 0.10 FTE - Corrected FTE formula error for three part-time positions Customer Service 0.10 0.10 FTE - Weekly hours increased from 20 to 25 for one part-time customer service rep position Sanitation -0.40 0.40 FTE - Part-time bluestaker position not included in FY22 budget Covey Center -3.90 3.90 FTE - Corrected FTE formula error for a part-time position Vehicle Maintenance 1.30 1.30 FTE - 2 intern positions added to FY22 per supplemental request Justice Court 1.00 1.00 FTE - Corrected FTE formula error for a full-time position 2.00 FTE - 2 CNS positions were budgeted in CDBG in FY21 due to COVID. These positions have CDBG -2.00 been moved back to CNS for FY22.

Provo City Adopted Budget 2021-2022 35

General Fund Information

The General Fund is the primary fund for the City. This fund is used to account for all financial resources not accounted for in other funds. The departments/divisions included in the General Fund are the Municipal Council, Mayor’s Office & Media, Administrative Services (Finance, Cybersecurity, Human Resources, Information Systems, Recorder), Communi- ty & Neighborhood Services, Development Services, General Services, Fire, Police, Parks and Recreation, Engineering, and Streets.

Revenue Revenue for the City can be classified into three major sources: taxes, transfers in, and fees. Taxes consist of sales tax, property tax, and road tax. Fees include inspection fees, franchise fees, user fees, parks fees, business licenses, apartment licenses, and other fees. Transfers in include transfers from the enterprise funds and the Justice Court. Oth- er sources of revenue include intergovernmental revenues, grants, interest income, land sales, and other miscellaneous revenue. Revenue projections are done using trend analysis for those revenues that are not flat. Trend analysis generally includes a ten-year review of revenues received. Taxes Sales Tax The largest source of revenue (32%) for the General Fund is sales tax. Sales tax for FY 2022 is budgeted at $23.84 million, a 20% increase from the FY 2021 budget . The projected increase is based on the fact sales tax revenues did better than expected last year, despite the COVID-19 pandemic. In addition, future projections for sales tax revenues continue to look promising. In addition, Provo City has consistently been named one of the best cities to do business in the United States, and the City is always looking for new businesses to help bolster the economy further.

General Fund Original Budget Adjusted Budget Adopted Budget FY Actual FY 2018 Actual FY 2019 Actual FY 2020 % of Total Revenue Summary FY 2021 FY 2021 2022 Sales Tax $ 18,973,348 $ 19,582,083 $ 20,675,621 $ 19,850,000 $ 19,850,000 $ 23,843,437 32% Transfer In 11,820,681 11,886,417 12,589,027 13,112,217 13,112,217 13,583,445 18% Franchise Fees 9,748,909 9,861,746 9,602,848 10,421,947 10,106,947 10,848,000 15% Fees 9,994,862 9,792,986 8,807,034 10,560,500 10,510,810 11,291,205 15% Property Tax 5,409,064 5,189,348 5,499,448 5,541,099 5,541,099 5,799,835 8% Road Tax 3,737,444 3,963,322 3,846,845 4,000,000 4,000,000 4,000,000 5% Other Revenue 5,835,325 6,019,401 11,504,966 4,099,800 4,464,490 4,522,424 6% Total Rev & Trans. In $ 65,519,631 $ 66,295,303 $ 72,525,789 $ 67,585,563 $ 67,585,563 $ 73,888,346

Sales Tax Revenue Budgeted Amounts Compared to Actual Amounts

$25,000,000 $23,843,437 $22,867,237 $23,000,000 $20,675,621 $21,000,000 $19,582,083 $19,850,000 $19,850,000 $18,973,348 $18,950,000 $19,000,000 $17,800,000 $17,000,000

$15,000,000

$13,000,000

$11,000,000

$9,000,000

$7,000,000

$5,000,000 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 Budget Actual Budget Actual Budget Actual Budget Projected Budget

Provo City Adopted Budget 2021-2022 36

Property Tax Property tax is the second largest source of tax revenue for Provo City. The City has three separate property tax levies that are imposed—general operations, library, and debt service. The general operations levy assists in paying for public safety, parks & recreation, and other General Fund operations. The library levy pays for the operations of the Provo City Library. The debt service levy pays the principal and interest on the General Obligation bonds that Provo City has outstanding. Detail about the bonds outstanding are included in the Debt Service section of this book. The rates used below are the certified 2021 rates. Levy Rate

General Operations 0.000683 Bond Obligations 0.001051 Library Operations 0.000496 Total Property Tax Rate 0.002230 Below is a comparison of property tax rates, total and only general operations, for all cities in Utah County and comparable cities in surrounding counties. The data came from taxrates.utah.gov for the 2020 tax year.

General Operations Tax Rate Total Tax Rate

Woodland Hills Woodland Hills West Valley Salt Lake City

Salt Lake City West Valley Ogden Ogden Mapleton Provo West Jordan Mapleton Elk Ridge American Fork

American Fork West Jordan Lehi Cedar Hills Saratoga Springs Springville Alpine Pleasant Grove Salem Elk Ridge

Santaquin Lehi

Pleasant Grove Saratoga Springs Sandy Alpine Spanish Fork Santaquin Payson Salem

Lindon Sandy

Cedar Hills Draper Draper Highland Highland Spanish Fork Springville Payson Orem Lindon

Eagle Mountain Orem Provo Eagle Mountain

0 0.001 0.002 0.003 0.004 0.005 0 0.001 0.002 0.003 0.004 0.005

The total Property Tax budget includes ad valorem taxes and motor vehicle tax collections, which are not included in the City’s total Property Tax levy.

Provo City Adopted Budget 2021-2022 37

Other Taxes Other taxes included in the FY 2022 budget are the lodging tax, the 1/4 cent sales tax, and the B&C Road taxes. The lodging tax pays for General Fund functions, the 1/4 cent sales tax is designated for transportation, and the Road Tax pays for road maintenance throughout Provo City. The B&C Road Tax is received in the General Fund, and a transfer is done to the B&C Capital Improvement Fund to pay for these expenses. Transfers In Transfers In account for 18% of the total revenue and transfers in for the General Fund. Enterprise funds transfer 11% of their utility sales to the General Fund—10% for general operations and 1% to help pay for road maintenance in the Streets Division.

Fees Franchise Fees Franchise fees account for 15% of the total General Fund revenue and transfers in. State law authorizes cities to collect up to 6% on utilities operating within city boundaries. In FY 2022, there is a budgeted increase in franchise fee revenue of 0.04%, which is in direct correlation to the increase in utility rates from Provo City utilities, as well as increases in rates for other privately owned utilities. Other Fees The other fees account for 15% of the total General Fund revenue and transfers in aggregate, but each fee individually is a smaller percentage of the total revenue. This revenue includes fees generated by the Community & Neighborhood Services Department (building permits, planning and zoning fees, inspection fees, and other fees pertaining to building), fees generated by the Parks and Recreation Department (recreation center fees, sports participation fees, etc.), and fees generated by the Public Safety Departments (ambulance fees, commuting fees, etc.).

Other Revenue Other revenue accounts for 10% of the total revenue and transfers in for the General Fund. This category includes grant and intergovernmental revenue, land sales, interest income, other tax, and miscellaneous revenue.

Expenses The FY 2022 General Fund budget presents a balanced budget. Expenses are analyzed each fiscal year by the Finance Division and reviewed by the department directors. The largest expense in the General Fund is personnel (salaries and benefits).

Budget Highlights

• Personnel expenses increased due to a 2.5 percent merit increase, market study adjustments, and a 4.1 percent increase in medical insurance.

• Overhead expenses include costs for employee benefits, insurance and claims, vehicle replacement, vehicle fuel and repairs, utility charges, and facility maintenance charges.

• Transfers out to the Parks & Rec CIP fund increased for the RAP tax.

• The increase in Operations in adjusted FY 2021 is largely due to prior year carryovers and appropriations.

Provo City Adopted Budget 2021-2022 38

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 General Fund Summary FY 2021 FY 2021 FY 2022 Revenues Sales Tax $ 18,973,348 $ 19,582,083 $ 20,675,621 $ 19,850,000 $ 19,850,000 $ 23,843,437 Franchise Fees 9,748,909 9,861,746 9,602,848 10,421,947 10,106,947 10,848,000 Fees 9,994,862 9,792,986 8,807,034 10,560,500 10,510,810 11,291,205 Property Tax 5,409,064 5,189,348 5,499,448 5,541,099 5,541,099 5,799,835 RAP Tax 1,277,460 1,349,125 1,433,495 1,325,000 1,325,000 1,633,532 B&C Roads 3,737,444 3,963,322 3,846,845 4,000,000 4,000,000 4,000,000 Chargeback ------License 232,677 546,755 447,555 463,000 463,000 500,000 Grants 947,849 1,011,936 7,171,454 468,000 468,000 1,048,794 Fines 522,320 658,371 631,000 750,000 750,000 690,699 Miscellaneous 1,085,462 1,028,520 802,799 173,800 223,490 175,899 Other Tax 662,512 533,343 739,067 495,000 810,000 380,000 Interest Income 353,234 544,293 279,595 425,000 425,000 93,500 Land Sales 753,812 347,057 - - - - Total Revenue 53,698,950 54,408,886 59,936,762 54,473,346 54,473,346 60,304,901 Transfer In Transfer from Energy 7,521,006 7,565,782 7,341,740 7,361,230 7,361,230 7,493,575 Transfer from Water 1,565,265 1,506,577 1,650,358 1,667,886 1,667,886 1,749,498 Transfer from Wastewater 1,229,616 1,227,236 1,825,236 2,324,438 2,324,438 2,556,881 Transfer from Sanitation 540,115 602,757 674,779 668,124 668,124 673,750 Transfer from Storm Drain 530,454 535,609 627,764 617,760 617,760 624,250 Transfer from Justice Court ------Transfer from ERP Debt Service 384,226 398,456 419,151 422,779 422,779 435,491 Transfers from Other Funds 50,000 50,000 50,000 50,000 50,000 50,000 Total Transfers In 11,820,681 11,886,417 12,589,027 13,112,217 13,112,217 13,583,445 Total Revenues & Transfer In 65,519,631 66,295,303 72,525,789 67,585,563 67,585,563 73,888,346 Expenditures Police $ 19,091,215 $ 17,554,806 $ 18,725,937 $ 18,627,052 $ 18,507,580 $ 19,106,186 Parks 10,574,692 10,316,815 10,652,192 11,035,164 11,710,150 11,829,986 Fire 10,427,205 11,069,823 11,191,201 10,950,067 11,017,808 11,631,807 Information Systems 2,770,976 3,470,925 3,904,774 3,891,991 3,889,829 4,247,082 Comm & Neighborhood Srvcs 2,848,604 2,667,377 1,526,923 1,797,292 1,984,504 2,273,745 Streets 2,017,280 1,923,200 2,088,973 2,131,726 2,254,926 2,243,978 Engineering 1,931,534 2,219,333 2,262,813 2,164,203 2,205,616 2,485,609 General Services 1,437,250 747,138 902,776 1,222,598 2,397,425 1,776,049 Legal 1,522,598 1,535,921 1,586,670 1,636,508 1,636,440 1,773,662 Recorder 242,487 119,622 231,366 217,792 274,192 223,923 Finance 1,253,436 1,289,374 1,260,963 1,241,792 1,266,663 1,321,151 Mayor's Office & Media 1,669,603 1,549,435 1,831,975 1,810,659 1,856,660 1,890,881 Human Resources 1,087,385 955,705 919,258 869,148 869,149 916,476 Municipal Council 1,005,349 1,034,599 1,065,867 1,073,677 1,090,864 1,153,197 Development Services - - 1,499,386 1,570,496 1,565,473 1,663,974 Economic Development 504,902 735,003 531,388 477,022 562,646 600,213 Total Expenditures $ 58,384,515 $ 57,189,076 $ 60,182,462 $ 60,717,185 $ 63,089,925 $ 65,137,920

Provo City Adopted Budget 2021-2022 39

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 General Fund Summary (cont.) FY 2021 FY 2021 FY 2022 Transfers Out Transfer to Airport $ 482,960 $ 91,230 $ 89,308 $ 141,411 755,608 $ 225,148 Transfer to Covey Center 343,303 364,537 350,023 401,580 401,580 398,077 Transfer to B&C Roads 2,892,775 2,857,299 3,082,292 3,017,314 3,017,314 2,946,745 Transfer to Customer Service 101,176 328,358 591,313 75,000 75,000 75,000 Transfer to ERP Debt Service 253,830 435,830 435,830 803,087 803,087 803,087 Transfer to General CIP - 40,000 40,000 51,000 51,000 108,029 Transfer to Golf 111,936 256,958 56,737 60,882 295,882 - Transfer to Justice Court 151,251 172,766 - 109,762 109,762 276,963 Transfer to Parks and Rec CIP 1,277,460 1,002,335 1,433,495 1,325,000 1,325,000 1,633,532 Transfer to Vehicle Replacement - - - - - Transfer to Facilities - 395,000 237,000 - - 247,611 Transfer to Emergency Response - 1,482,545 1,224,255 1,660,789 1,660,789 1,768,734 Transfer to Legacy Fund - - - - 7,779,285 - Transfer to Econ Dev CIP - - - - 100,000 - Transfer to Cemetery Perpetuity - - - - - 267,500 Total Transfers Out 5,614,691 7,426,858 7,540,253 7,645,825 16,374,307 8,750,426 Total Exp. & Trans. Out 63,999,206 64,615,934 67,722,715 68,363,010 79,464,232 73,888,347

Net Increase (Decrease) 1,520,425 1,679,368 4,803,074 - (11,878,669) -

Beginning Fund Balance 14,438,243 15,958,668 17,638,036 22,441,110 22,441,110 13,562,441

Projected Encumbrance & Operational Savings 3,000,000

Ending Fund Balance $ 15,958,668 $ 17,638,036 $ 22,441,110 $ 22,441,110 $ 13,562,441 $ 13,562,441

Provo City Adopted Budget 2021-2022 40

General Fund Departments

Municipal Council

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Municipal Council FY 2021 FY 2021 FY 2022 Revenue Miscellaneous $ 75 $ 1,000 $ - $ - $ - $ - Total Revenue 75 1,000 - - - - Expense Council Administration 969,236 1,019,723 1,050,154 473,034 474,248 494,645 Council Legislation 439 - - 476,959 471,709 510,220 Council Communication 35,673 1,266 1,574 101,684 101,683 104,082 Council Programs - 13,610 14,138 22,000 43,224 44,250 Total Expenditures $ 1,005,349 $ 1,034,599 $ 1,065,867 $ 1,073,677 $ 1,090,864 $ 1,153,197

Department Function

• The Municipal Council is the legislative branch and policy making body of Provo City. The Council, through the adoption of ordinances and resolutions, establishes laws, sets policy, oversees the budget, provides opinion on the administrative branch’s execution of the law, and approves long-term contracts and commitments of City resources. The Council annually supervises the independent financial audit and performance audits of the City’s affairs. Coun- cil staff provides policy analysis, legal counsel, and administrative support for the Council’s legislative activities and provides the public with access to the Provo City ordinances, resolutions, agendas, minutes, and adopted policies. In addition, an extensive volunteer Neighborhood Program is administered through the Council Office.

Highlights Municipal Council Total Expenditures

• The coronavirus pandemic necessitated a $2,000,000 move to online Council meeting formats $1,800,000 • Significant progress to conserve and pro- $1,600,000 tect Provo’s foothills $1,400,000 • Supported the protection of Bridal Veil $1,200,000 Falls $1,000,000

• Revised the City’s sign ordinance $800,000

• Adopted balanced, functional budget de- $600,000 spite pandemic impacts $400,000 • Funded airport improvements $200,000

$- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022 Performance Measures

2022 Priorities Goal Performance Measure Target # of Code Enforcement officers Healthy, Inviting Environment Improve zoning enforcement Yes approved in new year budget is >= 1 Business & Economic Vitality Parking Plan Implement the Strategic Parking Plan Yes Community implemented # of Police Officers Safe City Improve capacity in Public Safety approved in new year Yes budget is >= 1 Approve merit increases new year Yes budget Responsible Government Improve retention and recruitment of employees Approve health insurance increases in Yes new year budget Provo City Adopted Budget 2021-2022 42

Legal Department

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Legal FY 2021 FY 2021 FY 2022 Revenue Fees $ - $ - $ - $ - $ - $ - Miscellaneous 35,436 23,293 15,630 20,000 - - Total Revenue 35,436 23,293 15,630 20,000 - - Expense Legal Administration 1,521,224 1,535,921 1,586,670 579,495 579,495 581,253 Legal Services - Executive 491 - - 316,504 316,437 340,430 Legal Services - Legislative 174 - - 188,103 188,103 132,658 Criminal Prosecution 413 - - 311,547 311,546 417,135 Litigation & Risk Management 158 - - 141,479 141,479 171,290 Code Enforcement 137 - - 99,380 99,380 130,896 Total Expenditures $ 1,522,598 $ 1,535,921 $ 1,586,670 $ 1,636,508 $ 1,636,440 $ 1,773,662

Department Function • The City Attorney’s Office provides Provo City with a broad range of legal services. It is responsible for the City’s legal affairs, which includes serving as the legal advisor to the Mayor, Municipal Council, City departments, agencies, and boards & commissions. The office is governed by state statutes and City ordinances. It has the following divisions: Legal Services; Claims, Litigation, Risk Management & Safety Division; Criminal Prosecution.

Highlights Legal Total Expenditures

$2,000,000 • Conducted 55 trials in FY21 $1,800,000 • Collected $384,000+ in criminal fines $1,600,000 and fees $1,400,000 • Recovered $19,000+ from motor ve- $1,200,000 hicle accident claims $1,000,000 • Processed 7,946 new criminal cases and 85 new code enforcement cases $800,000 $600,000 • Disposed of 3,168 total criminal, traffic, and code enforcement cases $400,000 $200,000 • Conducted internal reviews of 38 $- accidents Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Performance Measures

2022 Priorities Goal Performance Measure Target Provide exceptional legal services in a Turnover rate <15% responsible and efficient manner Safe City through education and retention of legal Continuing legal Responsible Government 100 professionals education hours Healthy, Inviting Environment Business & Economic Vitality Support citywide values and missions Hours of cross-training Education through interdisciplinary training and 150 and education education

Provo City Adopted Budget 2021-2022 43

General Services

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 General Services FY 2021 FY 2021 FY 2022 Revenue Grants $ - $ - $ 134,819 $ - $ - $ - Miscellaneous - - 184 - - - Total Revenue - - 135,003 - - - Expense General Services 1,437,250 747,138 902,776 1,222,598 2,397,425 1,776,049 Total Expenditures $ 1,437,250 $ 747,138 $ 902,776 $ 1,222,598 $ 2,397,425 $ 1,776,049

Department Function

• The General Services Department’s purpose is to centralize all General Fund contributions for General Fund combined purchases.

Highlights General Services Total Expenditures

$5,000,000 • Vehicle replacements for the general $4,500,000 fund are recorded here. $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 44

Mayor’s Office & Media

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Mayor's Office & Media FY 2021 FY 2021 FY 2022

Revenues Miscellaneous $ 11,065 $ 68,666 $ 17,778 $ - $ - $ - Total Revenue 11,065 68,666 17,778 - - - Expenditures Mayor Administration 727,950 700,269 671,666 674,101 697,051 524,681 Mayor CAO 269,729 280,147 293,598 289,893 281,463 494,911 Mayor Deputy Mayor 216,265 145,213 373,415 319,084 339,374 331,369 Mayor Public Information Off 94,112 74,974 180,611 212,204 219,508 206,944 Mayor General 42,400 19,833 27,768 29,987 33,874 19,487 Media Services Division 187,312 328,999 284,917 285,389 285,390 313,490 Media/Web Services 123,723 - - - - - Parking Management 8,111 - - - - - Total Expenditures $ 1,669,603 $ 1,549,435 $ 1,831,975 $ 1,810,659 $ 1,856,660 $ 1,890,881

Department Function • The Mayor & immediate staff oversee the enforcement of all laws applicable to those residing or conducting business in Provo; execute the policies adopted by the Municipal Council; prepare & submit a proposed annual budget; hire executive employees & administrative department heads; recommend for adoption such measures as may be deemed necessary or proper for the efficient operation of the City; & perform numerous other duties as prescribed by law.

Highlights Mayor's Office Total Expenditure • Using the Provo Connect website, the Pro- $2,000,000 vo Pillars initiative was launched – Safe & $1,800,000 Sound, Forward Looking, Economically Vibrant, and Welcoming. $1,600,000 $1,400,000 • Successfully promoted and hosted a virtual $1,200,000 version of Provo Women’s Day. $1,000,000 • Responded to and oversaw the Provo City $800,000 response to five significant protests that $600,000 brought thousands of protesters to Provo. $400,000 • Participated in the demolition of the former $200,000 Plumtree Plaza, rebranded as The Mix at $- Rivers Edge – a mixed use retail and resi- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget dential space. FY 2021 FY 2022 • Completion of the Canyon Road Fire Sta- tion. • Successfully co-chaired and oversaw the distribution of Covid-19 relief funding to local businesses. • Successfully provided leadership in the selection of a developer for the former City Hall block development.

Provo City Adopted Budget 2021-2022 45

Performance Measures

2022 Priorities Goal Performance Measure Target Facebook posts views 10% increase Increase the public engagement to our Community residents and businesses through Channel 17 views 10% increase social media Blog posts views 10% increase

Cut the ribbon and host open New Airport Terminal 1 houses/tours for new City buildings. Business & Economic Vitality new airport terminal and the new Police New Police & Fire and Fire Headquarters/City Hall on 1 Headquarters/City Hall Center Street Implement the to-be adopted 2022 Implement the Responsible Government budget document as approved by the 1 Municipal Council. balanced City budget.

Provo City Adopted Budget 2021-2022 46

Administrative Services - General Fund

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Administrative Services FY 2021 FY 2021 FY 2022 Revenue Fees $ - $ 825 $ - $ - $ - Miscellaneous 302 197 1,001 - - - Total Revenue 302 1,022 1,001 - - - Expenditure Recorder Recorder 117,083 117,551 126,112 132,737 132,504 138,868 Elections 125,404 2,072 105,254 85,055 141,688 85,055 Recorder Total 242,487 119,622 231,366 217,792 274,192 223,923 Human Resources HR Administration 1,084,834 955,552 916,521 434,035 434,035 466,962 Benefits 112 152 580 110,602 110,602 112,359 Recruitment 126 - 366 685 685 1,265 Payroll 2,146 - 715 234,628 234,628 240,450 Classification 41 - 575 425 425 1,755 Workman's Compensation 48 - 300 125 125 705 Training 78 - 200 88,649 88,649 92,979 Human Resources Total 1,087,385 955,705 919,258 869,148 869,149 916,476 Finance Administrative Services 11,485 820 213,499 325,873 330,872 361,793 Finance Administration 489,855 516,116 387,196 236,112 236,113 248,661 Budget 201,618 212,051 242,209 245,763 245,763 252,878 Accounting 271,623 282,728 209,647 103,648 103,648 112,853 Accounts Payable 86 112 - 110,683 110,682 117,575 Purchasing 75,588 83,508 83,349 86,913 86,912 94,591 Collections 63,171 60,001 2,446 - - - Indigent Defense 140,009 134,037 122,617 132,800 152,673 132,800 Finance Total 1,253,436 1,289,374 1,260,963 1,241,792 1,266,663 1,321,151 Information Systems IS Administration 1,661,785 1,819,082 2,048,018 386,338 386,336 422,118 Help Desk 22,370 21,559 19,499 310,593 308,015 332,320 Systems 540,343 551,014 538,431 1,914,829 1,914,829 1,839,712 Communications 277,574 397,154 366,091 765,081 765,081 999,634 GIS 36,255 36,044 30,981 297,440 297,441 314,509 Technology 198,023 559,862 807,727 - 418 - Security 34,627 71,220 78,897 94,224 94,224 94,965 Web - 14,991 15,130 123,486 123,485 243,825 Information Systems Total 2,770,976 3,470,925 3,904,774 3,891,991 3,889,829 4,247,082 Total Expenditures $ 5,354,283 $ 5,835,626 $ 6,316,361 $ 6,220,723 $ 6,299,833 $ 6,708,632

Administrative Services Total Expenditure $10,000,000

$9,000,000

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 47

Recorder Division

Division Function

• The Recorder maintains the City’s records, reviews GRAMA requests, and oversees elections.

Highlights

• Nearing completion of three work- Recorder Division Total Expenditure flows in OnBase: p-card approval 2,000,000 process, contract approval, and 1,800,000 facility keys & access requests. 1,600,000 1,400,000 • Received and processed three 1,200,000 referendums and one recount in 1,000,000 2020. 800,000 600,000 • In coordination with other depart- 400,000 ments, responded to 349 GRAMA 200,000 Requests in an average of 3 busi- - ness days. Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget FY Adopted Budget 2021 FY 2022 • Recorded 127 ordinances and resolutions.

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Annual records Annual Training management training for Complete Education departments N/A Planned Yes Yes Maintaining OnBase Annual Recertification certification Yes Planned Yes Yes Complete meeting Avg Days to Complete Responsible minutes within 45 days Meeting Minutes 94 39 45 30 Government Quick response to Average Days to 4.1 3.1 5 5 GRAMA requests Respond

Provo City Adopted Budget 2021-2022 48

Human Resources Division

Division Function As a division of the Administrative Services Department, the Human Resources Division provides citywide service and support to its customers: City employees and managers, applicants, and the public. Division responsibilities include: HR Administration (citywide policy development and maintenance, HR budgeting, employment liability monitoring, legislative research and compliance with state and federal laws, investigation and dispute resolution of allegations of un- lawful employment-related actions, employee record maintenance, citywide performance appraisal); Staffing and Onboarding (internal and external recruitment and selection, background investigations, new employee orientation, new employee processing, drug testing); Benefits/Wellness Services (benefit contract negotiations, benefits administration, wellness program); Payroll (pay administration); Classification and Compensation (job analysis, classification specifica- tion development, position control, pay plan development and maintenance); Training and Career Counseling (organizational development, professional development); Workers’ Compensation (accident reporting, recording, and prevention, claim processing and monitoring, safety education); and Employee Recognition (awards administration and processing).

Highlights Human Resources Division Total Expenditure 2,000,000 • Nearing completion of Work Manage- 1,800,000 ment System implementation. The new 1,600,000 WorkDay system is set to go live in July 1,400,000 2021. It will create a central and user- 1,200,000 friendly interface for all employees. 1,000,000 • Monitored COVID-19 cases and related 800,000 absences for the entire City organization. 600,000 400,000 • Completed annual merit increase study. 200,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Annual Totals Performance Priority Goal 2020 2021 2022 Measure Actual Current Target Target Provide Accurate Payroll Period 26 26 26 26 Payroll Deadlines Met Maintain Employee Courses completed 5,379 4,836 8,274 8,274 Essentials Training Turnover Rate 10% 10% 10% 10% Responsible Maintain Stable, Calculated Competent Workforces Hiring Process Government 617 751 700 700 Completed

Maintain Classification Classification Specifications to 5-year Specifications 87% 85% 100% 100% Span Updated

Healthy, Inviting Increase Wellness Incentives Provided* 346 - 350 350 Environment Screening Participation

* Wellness screenings canceled in FY21 due to COVID-19. Will resume in FY22. Provo City Adopted Budget 2021-2022 49

Finance Division

Division Function

• The Finance Division is part of the Administrative Services Department. This division provides support services to the Administration, Council, and City departments. It is responsible for the overall financial procedures and processes of the City. The Finance Division includes the purchasing, treasury, budget, and accounting functions. Purchasing controls the purchase of all materials, supplies and capital outlay, oversight of the City procurement card program, along with providing central billing for City Services. Treasury oversees cash management, debt, accounts receivable, and collections. Budget assists in the yearly preparation of the City’s operating budget and capital improvement budget, preparation of annual budget document, along with executing the day-to-day operations of the budget. Accounting maintains the general ledger, performs the accounts payable function, monitors the internal controls of the City, tracks grants and identifies new grant opportunities, and provides support for preparation of the Comprehensive Annu- al Financial Report and Popular Annual Financial Report (PAFR).

Highlights Finance Division Total Expenditure 2,000,000 • Successfully completed the 2020 inde- 1,800,000 pendent audit and Comprehensive 1,600,000 Annual Financial Report. 1,400,000 • Received GFOA award of excellence 1,200,000 for the Comprehensive Annual Finan- 1,000,000 cial Report and the PAFR for fiscal 800,000 2020. 600,000 400,000 200,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target GFOA Annual Budget Certification for the Yes N/A Yes Yes Prior Year GFOA Popular Annual Financial Report Yes N/A Yes Yes Certification for the Prior Year Promote Financial Responsible GFOA Comprehensive Stability and Annual Financial Report Government Yes N/A Yes Yes Transparency Certification for the Prior Year Quarterly Report 4/4 2/4 4/4 4/4 Moodys GO Rating Aa1 Aa1 Aa1 Aa1 S&P Global GO Rating AA+ AA+ AA+ AA+ Compliance with Cares Act and other COVID-19 N/A Yes Yes Yes Funding Requirements Provo City Adopted Budget 2021-2022 50

Cybersecurity Division

Division Function

• The Cybersecurity Division is part of the Administrative Services Department. This division provides support for all City departments including the Council and the Administration. The Cybersecurity Division is responsible for : • Creating and updating cybersecurity-related policies and procedures • Developing trainings and performing phishing campaigns to create cybersecurity awareness • Protecting Provo City from bad guys trying to steal sensitive information, disrupt daily business operations, or cause chaos to public utilities infrastructure • Engaging in incident response by responding to security events on computers and computer networks

Highlights

• Created cybersecurity awareness training utilizing the Employee Essentials Program and phishing campaigns. • Implemented Multi-Factor Authentication for the new Human Capital Management system. • Simplified user reporting of suspicious emails to decrease response time to phishing threats.

Performance Measures

Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Annual Citywide Training 1 Annually 1 1 1 0 Create Virtual Employee Cybersecurity Awareness New Training Offered N/A N/A N/A 1 Training Responsible Government Employee Essentials Training - On-going Training N/A 1 1 1 Cybersecurity Create/Update Security Approved Security 3 0 6 4 Policies/Procedures Policies/Procedures Phishing Campaigns Campaigns Performed 8 7 3 20

Information Systems Division

Division Function

• The Information Systems Division is part of the Administrative Services Department. This division is split into the following functional areas to provide the below defined services: • Helpdesk – provides technical assistance and support for computer systems, software and hardware. • GIS – provides electronic mapping data services to help city organizations visualize and analyze data. • Communications – provides installation & support for networking, voice and data services for city operations. • Systems – provides installation, support, & maintenance of technology infrastructure and software. • Security – provides services to mitigate risks associated with cyber security incidents. • Technology – provides technological investment and upgrades. • Web & eGovernment – provides web services to create and maintain city websites and web applications. • Administrative – provides leadership and management for IS Division functions.

Highlights

• Responded rapidly to the constantly Information Systems Division Total Expenditure changing world of the Covid-19 pan- 5,000,000 demic. Technology workers expanded 4,500,000 and implemented technologies that 4,000,000 allowed the City’s workforce to oper- 3,500,000 ate successfully from anywhere and at any time. Additionally, the IS team 3,000,000 extended its support to a workforce 2,500,000 that was newly socially-distanced or 2,000,000 remote. 1,500,000 • Supported several City construction 1,000,000 projects over the last year. including 500,000 the new Public Safety/City Hall Build- - ing, Provo Airport Terminal, Fire Sta- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget tion 22, lift stations, and the remodel FY 2021 FY 2022 of the Timpanogos Golf Club. • Assisted with the implementation and go-live of a new Customer Information System and Work Management Sys- tem and continuing towards implementing a new Human Capital Management system in July 2021. • GIS staff improved cemetery data, assisted with a Parks accessibility analysis, and created a city-owned property layer and application. • Deployed over 200 new mobile devices and implemented a new mobile device management software to better manage and secure the city's cellular device inventory.

Performance Measures Annual Totals Priorities Goal Performance Measure 2020 2021 2021 2022 Actual Current Target Target

Excellent customer service 78% target 86% 92% 78% 78%

Responsible Government Average days to resolve Citywide average close days an issue and close a 3.25 2.87 3 3 ticket

Technology purchasing average turnaround 30-day 30 13 30 30

Community & Neighborhood Services

Original Budget Adjusted Budget Adopted Budget Community & Neighborhood Actual FY 2018 Actual FY 2019 Actual FY 2020 Services FY 2021 FY 2021 FY 2022 Revenue - Fees $ 1,507,490 $ 2,078,600 $ 2,134,901 $ 2,133,500 $ 2,500 $ 2,732,500 Grants ------Miscellaneous 54,431 245,980 45,636 - - - Total Revenue 1,561,921 2,324,580 2,180,537 2,133,500 2,500 2,732,500 Expenditure CNS Administration 1,026,370 701,671 563,985 394,203 403,423 453,392 Planning 1,102,418 1,103,408 452,359 482,015 541,242 583,088 Building Inspection 714,330 639,032 213,622 - - - Zoning Enforcement 5,356 97,126 356,252 399,920 582,205 Com Dev Grants - - - - Property Management 129 66,250 116,447 140,164 130,726 130,433 Parking Management - 59,890 180,510 - - - Parking Enforcement - - 306,231 390,766 403,566 Business Licensing - - - 118,428 118,427 121,060 Total Expenditures $ 2,848,604 $ 2,667,377 $ 1,526,923 $ 1,797,292 $ 1,984,504 $ 2,273,745

Department Function

• The Community & Neighborhood Services Department, formerly the Community Development Department, provides long-term planning, zoning code enforcement, property management, parking, and ombudsman services for the City of Provo. Community & Neighborhood Services has the responsibility for the administration of the Planning Com- mission, Board of Adjustments, Design Review Committee, Landmark Commission, Transportation and Mobility Ad- visory Committee, Administrative Hearing Program, and Board of Appeals. This department also oversees comprehensive planning, zoning code enforcement, apartment licensing, business licensing, development and maintenance of the citywide land use database, tracing and accounting for all City-owned property, assisting the public in resolv- ing issues or problems with any City department.

Highlights Community & Neighborhood • Long Range Planning has been focused on Services Expenditures advancing the General Plan Update, and $5,000,000 facilitating a Sustainability Plan. $4,500,000

• Zoning assigned one senior code compli- $4,000,000 ance officer focused on housing quality in $3,500,000

the CDBG areas. $3,000,000

• Zoning assigned one senior code compli- $2,500,000

ance officer to review rental dwelling license $2,000,000

(RDL) applications, conduct RDL inspec- $1,500,000

tions (with assistance from other Code Com- $1,000,000 pliance Officers) and manage the approvals $500,000 of the RDLs. $- • Parking Enforcement found multiple vehicles Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget that had been reported stolen. FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 53

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2021 2022 Actual Current Target Target Improve Zoning Zoning Complaints 890 582 750 800 Compliance resolved Planning Applications Community Planning 392 365 450 450 Received Permit Applications Building Permits 1,407 1,344 1575 1700 Received

Provo City Adopted Budget 2021-2022 54

Development Services

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Development Services FY 2021 FY 2021 FY 2022 Revenue Fees $ - $ - $ - $ - $ 2,131,000 Miscellaneous ------Total Revenue - - - - 2,131,000 - Expense Development Services Admin - - 303,319 387,977 382,954 412,800 Current Planning - - 488,168 464,489 464,489 376,678 Building Inspection - - 707,900 718,030 718,030 874,496 Total Expenditures $ - $ - $ 1,499,386 $ 1,570,496 $ 1,565,473 $ 1,663,974

Division Function

• The Development Services Department was a new addition in the FY 2020 budget, intended to address needs of developers within Provo City. The Development Services Division (housed within the Development Services Depart- ment) takes elements from what has historically been part of Community Development including short-term planning and building inspection as well as synergizing efforts from Engineering, Fire, and other aspects of the development process. This division is responsible for reviewing construction plans and the systematically inspecting of all new structures, remodels, and existing structures as required. The board of Building Code of Appeals falls under Development Services as well. Highlights

• Amended city code to require more land- Development Services Total Expenditures scaping in parking lots to reduce heat is- $2,000,000 lands. (General Plan goal 1.4.5.3) $1,800,000 • Maintained a Projects List on the Provo City website, added more discussion topics $1,600,000 to Open City Hall, informed the public of $1,400,000 upcoming public hearings through social $1,200,000 media (Neighborhood Facebook groups, $1,000,000 Twitter, Instagram). (General Plan goals 1.4.7.1, 1.4.10.1) $800,000 • Ongoing focus to revitalize blighted, dilapi- $600,000 dated neighborhoods and distressed com- $400,000

mercial centers, including South State $200,000

Street, Plum Tree Shopping Center, Bill $- Harris block (300 S to 400 S and University Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022 Ave to 100 W). (General Plan goal 1.4.12.4) Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Safe City Assure Building Quality and Safety Building Inspections 6477 5947 7400 7400 Planning Applications 101 109 130 130 Promote New Residential & Commercial 1,270 1,112 1,300 1,300 Construction. Building Permits $207,356,389 $315,612,114 $350,000,000 $350,000,000 Business & Economic Revitalize South State Street, Vitality Revitilize blighted, dilapidated neighborhoods Plum Tree Shopping Center, and distrissed commercial centers. (Genral ongoing Bill Harris Block (300 S to 400 Plan goal 1.4.12.4) S & University Ave to 100 W) Public Meetings Held 43 36 48 50 Responsible Facilitate Communications with the Public. Social Media Posts 214 372 400 400 Government (General Plan goal 1.4.7.1, 1.4.10.1) Open City Hall Topics 5 22 25 30 Provo City Adopted Budget 2021-2022 55

Economic Development

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Economic Development FY 2021 FY 2021 FY 2022 Revenue Miscellaneous $ 133,777 $ 1,577 $ 1,140 $ - $ - $ - Total Revenue 133,777 1,577 1,140 - - - Expense Economic Development 420,433 461,461 354,278 270,572 356,196 284,368 Downtown Vibrancy 64,936 81,971 122,809 75,000 75,000 184,395 Business Development 1,532 18,291 14,200 27,400 27,400 27,400 Community Promotion 18,000 173,280 40,100 104,050 104,050 104,050 Total Expenditures $ 504,902 $ 735,003 $ 531,388 $ 477,022 $ 562,646 $ 600,213

Division Function

• The Economic Development Division used to be included in the Mayor’s Office Department, but in FY 2020, it became a part of the newly created Development Services Department. Economic Development is responsible for the development and execution of programs that facilitate economic activity in Provo City. Included within the office are responsibilities related to the following activities: business retention and attraction, business liaison, downtown and citywide retail growth, workforce and startup promotion with an emphasis in underserved populations, and development and implementation of the citywide economic development strategic plan.

Highlights Economic Development Total Expenditures $2,000,000 • Prioritizing areas within the city for economic development by finding a grocer and location $1,800,000 for a west side grocery store.(1.4.13) $1,600,000

• Holds tours of the city to showcase the busi- $1,400,000 nesses and answer any questions businesses may have.(7.4.10.2) $1,200,000 • Reviews regulation to reduce the challenges of $1,000,000

starting a new business. $800,000

• Recent accolades ranking Provo as one of the $600,000 best places to do business are a reflection of $400,000 success in this area. (7.4.12) $200,000

$- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022 Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Economic Development is focused on finding a grocer and Prioritize areas within the city for location for a west side grocery store, the downtown area, Ongoing economic development. (1.4.13) Provo Towne Centre, Millrace, The Riverwoods, the potential for viable retail on south State Street. Facilitate a dialogue between local Economic Development holds tours of the city to showcase businesses and City government so the businesses and answer any questions businesses may that business and government needs have. Additionally, we ask the Mayor to go on business Ongoing and concerns can be addressed in a visits with us to answer any questions and get an idea for Business & Economic Vitality timely manner. (7.4.10.2) Provo's future. Economic Development reviews regulation to reduce the Develop Provo as the leader in the challenges of starting a new business. They also support State of Utah and Mountain West in private sector initiatives such as the Chamber of Commerce entrepreneurial support and the and Downtown Provo, Inc. The City currently has a revolving Ongoing preeminent place to start and grow a loan fund to provide limited funding for certain businesses. business. (7.4.12) Recent accolades ranking Provo as one of the best places to do business are a reflection of success in this area.

Provo City Adopted Budget 2021-2022 56

Fire Department

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Fire Department FY 2021 FY 2021 FY 2022 Revenue Fees $ 1,426,279 $ 1,689,056 $ 1,587,315 $ 1,920,000 $ 1,920,000 $ 1,730,000 Grants/Intergovernmental 379,825 114,323 2,379,965 - - - Miscellaneous 96,450 648,453 101,890 - - - Total Revenue 1,902,554 2,451,832 4,069,170 1,920,000 1,920,000 1,730,000 Expenditure Fire Dept. Administration 1,504,652 1,425,619 1,709,859 1,476,828 1,575,828 1,640,652 Emergency Fire Response 8,729,580 8,942,165 9,059,261 8,318,475 8,047,986 8,938,914 Fire Prevention 17,334 19,961 13,627 409,489 454,489 407,474 Training 8,434 19,555 23,977 457,514 457,514 363,588 Emergency Management 18,959 20,684 28,322 127,639 164,071 132,021 Emergency Medical Response 130,240 115,039 79,910 99,669 127,108 94,320 Airport 18,006 61,911 60,797 60,452 60,452 54,838 Fire Reimbursable O/T - 42,092 39,503 - - - Fire Grants ------Wildfire Response - 422,796 175,944 - 130,361 - Total Expenditures $ 10,427,205 $ 11,069,823 $ 11,191,201 $ 10,950,067 $ 11,017,808 $ 11,631,807

* Grants revenue in FY2020 was largely from the CARES Act allocation (COVID-19 relief).

Department Function

• The Fire Department is responsible for providing emergency fire response, fire prevention, and emergency medical response services throughout the City.

Highlights Fire Department Total Expenditures • Completed and opened for service new $20,000,000 Fire Station #2. $18,000,000 • Took delivery of and placed into service $16,000,000 new Engine 22, Ladder 23, and Heavy $14,000,000 Rescue 21. This completes the revitali- $12,000,000 zation of the Fire Department apparatus $10,000,000 fleet. $8,000,000 • In cooperation with Human Resources, $6,000,000 completed and implemented an updat- $4,000,000 ed compensation program for sworn $2,000,000 Fire Department employees. $- • Conducted 1,295 (as of April 26) Covid- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget 19 tests for City employees throughout FY 2021 FY 2022 the pandemic. • Improved Emergency Communications staffing to greater than 90 percent for FY21. • Reduced call transfer rates from Provo 911 to other centers from 8 percent to less than 2 percent in FY21. • Implemented a Wildland Urban Inter- face program along our east bench to reduce fuels and educate the community on the dangers of wildfire in Provo.

Provo City Adopted Budget 2021-2022 57

Performance Measures

Annual Totals Priority Goal Performance Measure 2019 2020 2021 2021 2022 Actual Actual Target Current Target Business New Safety/Familiarization Construction/Target 50 90 150 272 300 inspection Hazard Familiarization Homes Participating in Wildland-Urban Community Risk 150 175 200 240 300 Safe City Interface Reduction Program Reduce the number of fires based on cause, Fire Investigations 32 through public education Participate in Provide Fire/Medical Community 20 60 60 0 Covid 20 Community Events Education Training Business & Economic New Construction Within 48 hours (in 95 95 95 97 95 Vitatility Inspections percentage) Responsible Reduce Job Related Time loss injuries <2 <2 <2 <2 <2 Government Injuries Healthy, Inviting Eliminate Hazardous Mitigate within 30 90% 90% 90% 70% 90% Environment Blight days (by percentage)

Photo of Fire Station #2, which was completed in FY 2021. Provo City Adopted Budget 2021-2022 58

Police Department

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Police Department FY 2021 FY 2021 FY 2022 Revenue Fees $ 29,021 $ 2,791 $ 1,824 $ 55,000 $ 55,000 $ 50,000 Grants 453,171 740,094 4,647,958 - 373,000 - License ------Miscellaneous 392,013 367,360 425,823 - - - Total Revenue 874,204 1,110,245 5,075,604 55,000 428,000 50,000 Expenditure Police Administration 2,051,518 2,045,566 2,262,305 2,236,893 2,278,998 2,367,485 Operational Support 2,923,025 2,531,571 2,556,235 2,370,622 2,497,694 2,511,983 Reimbursable Overtime 342,801 361,451 442,311 - - - Police Grants 374,932 347,881 631,785 - 295,353 - Community Policing 1,872,599 2,002,845 1,988,715 2,381,634 2,387,221 2,504,019 Detectives 1,817,259 1,695,311 1,690,414 2,073,780 2,056,412 1,897,830 Victim Advocates 156,530 146,682 148,512 119,979 119,979 183,592 Patrol 7,462,659 7,815,158 8,408,739 8,798,657 8,238,810 8,949,969 Animal Control 342,834 385,188 418,916 410,583 418,207 466,756 Parking 78,273 - - - - - Crossing Guards 171,917 161,236 127,857 184,309 184,309 176,870 Airport Operations 33,213 61,915 50,149 50,596 30,596 47,682 Dispatch 1,463,656 - - - - - Total Expenditures $ 19,091,215 $ 17,554,806 $ 18,725,937 $ 18,627,052 $ 18,507,580 $ 19,106,186 * Grants revenue in FY2020 was largely from the CARES Act allocation (COVID-19 relief).

Department Function

• Provo City’s Police Department provides high quality community-based police services with compassion, profession- alism, protecting constitutional rights, problem solving, teamwork, openness, planning for the future, and providing leadership to the profession. The Police Department provides response to community initiated calls for service, pro- active policing, enforces all laws, service to the community including CBP traffic incidents, animal control and crime prevention. Criminal activity occurring in Provo is the responsibility of the police department. Internal divisions also provide support services to the Department and citizens in the form of Records, School Crossing Guards, Communi- cations, and other internal functions.

Highlights Police Department Total Expenditure • The FY2022 budget includes a new po- $20,000,000 lice officer. $18,000,000 • Provo Police has maintained a standard $16,000,000 of excellence in the area of community $14,000,000 relations. Our primary duty and focus of $12,000,000 every police employee, sworn or civilian $10,000,000 is to strive to maintain open communi- $8,000,000 cation with the community members $6,000,000 and build strong relationships across $4,000,000 the city. $2,000,000 $- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 59

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Improve service delivery to residents and Excel in Police provide for their public safety. Strive to Services improve the recruiting and hiring experience. Encourage use of on-line reporting system. YES N/A N/A YES Support continuous training and provide Public Order safety equipment to officers. YES N/A N/A YES Address homelessness and transient issues Safe City and enforcement. Refer persons Reduce Crime experiencing homelssness to service providers. Reduce Auto Burgs and bike thefts utilizing SET team resources. YES N/A N/A YES Affect positive change in driver behavior as Reduce indicated through crash data. Increase the Accidents number of resources to include traffic enforcement team. YES N/A N/A YES Provide police services and cummunity Community partnerships to improve citizen quality of life. Relations Continually build public trust and engage the community in public safety efforts YES N/A N/A YES Be prepared to increase community involvement as COVID declines. Start a Teen Academy to provide young adults, ages 13- Community 18, the opportunity to learn about the operations of our police department, providing Invovement Community them w ith a unique opportunity to learn about the investigative aspect of policing, including interview , interrogation and evidence collection. YES N/A N/A YES

Improve social media to enhance Public communication, collaboration, and information exchange as a valuable means of assisting Information the department in meeting community outreach, investigative & crime prevention. YES N/A N/A YES

Health and Support continuous improvement of the Peer Healthy Environment Wellness Support Program and Step Stone Counseling. YES N/A N/A YES

Address public safety issues that impact our Business & Promoting Job image and attractiveness to becoming a Economic Vitality Creation destination police department, attracting new businesses and residents. YES N/A N/A YES

Provo City Adopted Budget 2021-2022 60

Streets & Engineering Divisions

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Streets & Engineering FY 2021 FY 2021 FY 2022 Revenue Fees $ 1,055,556 $ 499,309 $ 724,768 $ 650,000 $ 650,000 Miscellaneous 7,448 1,751 6,239 - - - Total Revenue 1,063,004 501,060 731,007 650,000 650,000 - Expenditure Streets & Maintenance 2,017,280 1,923,200 2,088,973 2,131,726 2,254,926 2,243,978 Engineering Engineering Administration 537,266 570,064 584,046 669,528 710,941 2,485,609 Design General Engineering 1,128,638 1,369,557 1,678,767 1,206,146 1,206,146 - Traffic General Engineering 265,629 279,712 - 288,529 288,529 - Engineering Total 1,931,534 2,219,333 2,262,813 2,164,203 2,205,616 2,485,609 Total Expenditures $ 3,948,814 $ 4,142,533 $ 4,351,785 $ 4,295,929 $ 4,460,542 $ 4,729,587

Streets Division

Division Function

• The Streets Maintenance Division is part of the Public Works Department of Provo City. This division is responsible for year-round street maintenance, which includes asphalt repairs, crack sealing, road rehabilitation preparation, road shoulder maintenance (grading), sidewalk replacement, weed abatement on streets right-of-way, street sweeping, and snow removal during winter months. Traffic safety functions are also performed by the Streets Divi- sion, including street painting (lane lines, crosswalks, stop bars, road symbols and parking stalls), sign fabrication and installation. This division also manages the City’s gravel pit in the mouth of Provo Canyon.

Highlights

• Constructed two airport moat crossings and embankment for new terminal access loop road • Completed demolition and cleanup of various homes/buildings to accommodate construction of Lakeview Parkway and the new Provo City Center Building • Completed repaving of large water main installation on 1400 East. • Completed cleanup of debris, trees and brush along the airport dike road to provide for enhanced landscaping at entrance to new airport terminal

Engineering Division

Division Function

• The Engineering Division of the Public Works Department provides professional engineering support (design, survey, drafting, traffic engineering development review, records maintenance, utility permits and inspection and public information) to the City Administration, the Municipal Council, the Planning Commission, other City departments, and the public. The Engineering Division also provides administration, design, inspection, and construction management of Public Works capital improvement projects, professional transportation, engineering services, and traffic signal operations for the City. Highlights

• Completed 2015 audit response to the State. This included completing three manual updates (SWMP, IDDE, Drainage Manual). • Completed the Oak Cliff Storm Drain project • Implemented of the Low Impact Development (LID) program as required by State Code.

Provo City Adopted Budget 2021-2022 61

Streets & Engineering Total Expenditure $5,000,000

$4,500,000

$4,000,000

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget FY Adopted Budget 2021 FY 2022

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual CurrentTarget Target Healthy, Inviting Replace Street Name Number of Street Name Signs Environment Signs (Streets) replaced with new Provo Logo 400 135 250 150 Maintain High Quality City City Street Network Pavement Safe City Street Network Pavement Average Remaining Service Life Condition (Engineering) (RSL in years) 12.4 12 10-12> 10-12>

Parks and Recreation

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Parks and Recreation FY 2021 FY 2021 FY 2022 Revenue Fees $ 5,933,213 $ 5,518,579 $ 4,355,933 $ 5,802,000 $ 5,748,510 $ 6,150,705 Grants 10,772 12,096 8,713 - - - Miscellaneous 90,991 109,672 67,153 - 53,490 - Total Revenue 6,034,975 5,640,348 4,431,799 5,802,000 5,802,000 6,150,705 Expenditure Parks And Rec Administration 1,325,515 1,306,844 1,449,018 1,471,818 1,464,978 1,555,936 Cemetery 425,621 400,373 527,675 454,724 517,301 578,428 Arboriculture 152,302 184,766 169,064 197,810 197,810 211,933 Park Projects 357,464 404,568 414,400 439,547 439,548 471,951 Shooting Sports Park 42,141 42,137 46,423 45,436 45,436 54,043 Downtown Streetscape 83,748 52,538 44,922 62,929 62,929 64,949 Parks 2,463,491 2,334,995 2,419,101 2,657,110 2,835,804 3,012,359 Grounds 384,746 318,095 255,534 297,822 300,820 335,667 Weed Abatement 28,862 22,999 25,511 39,067 39,067 39,321 Community Recreation Center 4,226,749 4,339,174 4,405,498 4,351,857 4,774,210 4,384,705 Adult Sports 333,049 279,878 272,210 343,934 343,935 352,818 Youth Sports 363,018 334,726 283,260 300,560 300,559 385,777 Special Events 166,952 185,346 237,301 209,486 224,689 215,997 Athletic Field Maintenance 117,691 110,376 102,276 163,065 163,065 166,104 Peaks Ice Arena 100,000 - - - - - Parks Maintenance 3,345 - - - - - Parks North Area ------Total Expenditures $ 10,574,692 $ 10,316,815 $ 10,652,192 $ 11,035,164 $ 11,710,150 $ 11,829,986

Department Function

• The Provo Parks and Recreation Department enhances quality of life by inspiring residents through our commitment to create dynamic parks, recreation facilities, programs, and service of the highest standard. Included in the Parks and Recreation budget is administration, parks, trails, ball field and downtown maintenance, cemetery operations, arboriculture, park projects, weed abatement, The Provo Shooting Sports Park, Provo Recreation center, sports, aquatics, special programs, senior services, and community special events.

Highlights Parks & Recreation Total Expenditure • Replaced playground at Lakewood Park $20,000,000 which included a shade structure, new $18,000,000

benched and rubberized surfacing. $16,000,000

• Rec Center operated in black during $14,000,000

COVID-19. $12,000,000

• Rec Center self-funded major capital $10,000,000 improvements in fitness equipment, $8,000,000 boilers, etc. through Capital Account $6,000,000 management. • Ran virtual sports programs for families $4,000,000 during the shutdown. 250+ families par- $2,000,000 ticipated. $- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget • Held all summer, fall, and winter pro- FY 2021 FY 2022 grams during the pandemic. We took temperatures, did symptom checks, limited spectators, sanitized spaces used, and had zero incidents.

Provo City Adopted Budget 2021-2022 63

Parks Performance Measures Annual Totals Priority Goal Performance Measure 2021 2021 2022 Actual Target Target Hazardous Tree Removal 216 150 250 Healthy Trees Pruned 989 800 1,050 Safe Parks and Trails High frequency Playground Safe City 205 288 324 Inspections Public & Employee Enact Restroom Sanitation Protocol 36 36 N/A Safety at each Parks Restroom Freedom Festival No Yes Yes

Farmers Market Yes Yes Yes Community Supported Community Cancelled due to Slate Canyon April Events Support Earth Day Planting Project Yes Covid 24th and May 21st

Lights On Yes Yes Yes

Replace 10 Trees Business & Downtown Support and Planting Standard Modification Yes Yes Downtown Economic Vitality Wellness Bed Replanting 15 Beds replanted 15 Beds Replanted 15 Beds replanted Provo Foothill Trail Master Plan with Finalize Alignments Yes Yes UVTA, MAG and USFS and Adopt Trail Enhancements 20 units @ 150 ft. Solar Trail Lighting X X Healthy, Inviting Spacing Environment Sustainable Landscapes Yes Yes Yes Turf Maintained 305A 300 A 315A Trees Planted 37 30 50 Truck loads of green waste recycled into mulch 250 225 275

Parks Projects Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Public and Employee Employee Safety Training 8 7 12 12 Safe City Safety Proper PPE Number of work loss accidents - - - - Improve neighborhood Number of community contacts 48 40 60 60 Community outreach Improve project planning Number of Community meetings 3 4 6 6 Invest in Provo Businesses Local Vendor (Utah County) Yes Yes Yes Yes Business & Economic Vitality Project Savings between Engineer's CIP Fund Yes Yes Yes Yes Estimate and actual costs

Projects Website updates 2 12 12 Responsible Facilitate Communication Government with Public Social Media posts - 4 52 52

Healthy, Inviting Conservation (SWPPP, Water wise Sustainable Practices Yes Yes Yes Yes Environment Installations, low emission equipment)

Recreation Center Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Weekly Group Ex Classes 186 130 185 195 Fitness Opportunities Personal Training Sessions 180 275 360 400 Healthy, Inviting Environment Current Memberships 24,500 22,063 24,500 23,500 Increased Recreation Day Passes Sold 295,000 295,000 Opportunities Total Attendance 1,600,000 1,100,000 2,250,000 2,000,000 Budgeted self-funded Responsible Fiscal Responsibility operations at triple play Yes Yes Yes Yes Government facilities Permanent Pickleball Healthy, Inviting Additional Recreation - - 4 4 Courts Environment Amenities Fitness Studio/Spaces 4 4 5 5 Additional Special Community Events Hosted 22 35 28 30 Events Opportunities Responsible Quality x Throughput ÷ Throughput of visitors per $ 1.19 $ 1.31 $ 1.20 $ 1.16 Government Operating Expenses staff dollar spent

Sports Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target 40 (not all Family Average Net Promoter Report data from survey programs 42 30+ 50 (Youth & Adult Sports) Score of 30 or higher software held) Still in Community Program Community Overall Program process All All Committees Formed In process (Program Promotion) Improvements due to Programs Programs for each program. COVID Education Career Series Value added to department 1 1 2 2 (Staff Advancements) Advancements for FT by their advancement Healthy, Inviting All FT Coordinators get Certification Certificate Environment 1 1 2 3 CPR training received (CPR Training)

Preliminary Phase 1 Finalize Park Concept Concept Concept Plans are presented Concepts or 50% Design 90% Finalized Economic Vitality Discussed Complete (Regional Sports Park & Finalize The Show Projects) Complete The Show Preliminary Project 60- Project completed within the Concepts 100% project at Fort Utah Concepts 80% 2021/2022 FY and scope complete Park Discussed complete of project

Enterprise Funds

Enterprise Fund Information The City’s enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the City is that 1) the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges and/or 2) the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Each individual enterprise fund consists of an operating fund and a capital improvement fund. Each individual fund accounts for all of its user fees, debt, maintenance, and assets individually. Each individual capital improvement fund accounts for all construction and projects associated with each enterprise fund. In the individual section, the operating and capital improvement funds will be presented separately. Future project detail and historical information is included in the Capital Improvement Plan section on page 119. Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Revenue Summary FY 2021 FY 2021 FY 2022 Revenue Utility Sales $ 101,100,695 $ 104,497,165 $ 106,229,733 $ 109,307,971 $ 109,287,971 $ 113,397,313 Fees 7,923,859 10,654,591 12,775,733 14,669,187 14,669,187 15,672,274 Property tax revenue - - - 464,975 464,975 511,225 Principal/Interest Income 989,371 1,678,002 1,127,469 760,696 760,696 537,000 Loan/Bond Proceeds 5,528,952 - 5,000,000 15,000,000 15,000,000 28,000,000 Grants 4,111,354 5,352,165 14,386,941 34,300,000 34,300,000 30,000,000 Miscellaneous 4,411,113 4,759,633 5,617,740 726,000 746,000 1,117,381 Total Revenue 124,065,345 126,941,556 145,137,616 175,228,829 175,228,829 189,235,193 Transfer In 1,254,716 932,008 2,646,045 786,113 786,113 808,968 Total Revenue & Transfer In $ 125,320,061 $ 127,873,564 $ 147,783,661 $ 176,014,942 $ 176,014,942 $ 190,044,161

Major Revenue Sources The major revenue source for enterprise funds is utility sales. Revenue projections are done using trend analysis. Prior year revenue collections are reviewed, along with any changes in utility rates. There are multiple utility rate increases; Water has a proposed increase of 5% and Wastewater has a proposed increase of 10%. The transfers in are for other transfers pertaining to debt and operations in enterprise funds. Fees include impact fees, aid to construction fees, and other user fees associated with service provided by each fund. Miscellaneous revenue includes lease income, overhead revenue, Telecom debt, sale of fixed assets, and franchise fees. Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Enterprise Summary FY 2021 FY 2021 FY 2022 Revenue & Transfer In Airport $ 10,912,866 $ 7,023,393 $ 23,136,419 $ 35,825,886 $ 35,825,886 $ 1,688,873 Energy 78,688,940 78,025,513 76,373,644 74,522,967 74,522,967 76,138,463 Peaks Ice Arena - 1,435,979 1,585,162 1,343,000 1,343,000 1,600,000 Sanitation 5,195,625 5,808,557 6,396,575 6,385,350 6,385,350 6,436,500 Wastewater 11,872,044 16,215,202 18,013,496 37,362,750 37,362,750 52,475,875 Water 15,560,257 15,681,738 16,083,047 17,151,420 17,151,420 47,893,350 Utility Transportation Fund 2,161,579 2,196,550 2,154,688 2,200,000 2,200,000 2,200,000 Golf 928,750 1,486,632 4,040,629 1,223,569 1,223,569 1,611,100 Total Revenue & Transfer In 125,320,061 127,873,564 147,783,661 176,014,942 176,014,942 190,044,161 Expenditure & Transfer Out Airport 10,462,119 8,443,355 13,702,645 35,825,886 63,346,789 1,688,873 Energy 76,687,285 80,122,548 76,801,694 84,878,828 88,399,761 85,765,579 Peaks Ice Arena - 1,629,799 1,400,361 1,331,259 1,595,500 1,646,102 Sanitation 4,922,239 5,807,636 5,480,941 6,298,844 6,985,555 6,491,228 Wastewater 12,062,904 23,330,664 21,068,061 38,205,271 42,309,504 44,959,385 Water 14,112,755 13,690,159 16,198,648 17,308,579 26,121,145 48,636,248 Utility Transportation Fund 2,871,069 1,994,134 3,894,913 2,030,000 2,773,708 2,140,000 Golf 1,014,332 1,368,485 6,030,857 1,223,569 3,289,664 1,594,823 Total Expenditures & Transfer Out 122,132,702 136,386,779 144,578,120 187,102,236 234,821,626 192,922,238 Net Increase (Decrease) $ 3,187,358 $ (8,513,215) $ 3,205,541 $ (11,087,294) $ (58,806,684) $ (2,878,077)

Provo City Adopted Budget 2021-2022 67

Airport

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 362,253 $ 605,020 $ 692,351 $ 465,000 $ 465,000 $ 565,000 Property tax revenue - - - 464,975 464,975 511,225 Grants 4,111,354 5,352,165 14,386,941 34,300,000 34,300,000 - Lease - 610,476 279,291 392,000 392,000 325,000 Miscellaneous 213,121 272,100 28,218 25,000 25,000 25,000 Fuel Tax 79,434 42,448 36,698 37,000 37,000 37,000 Bond Proceeds 5,528,952 - 5,000,000 - - - Interest Income 58,793 49,954 123,612 500 500 500 Transfer In 558,960 91,230 2,589,308 141,411 141,411 225,148 Total Revenue & Transfer In 10,912,866 7,023,393 23,136,419 35,825,886 35,825,886 1,688,873 Operation Expenditures Airport Operations $ 757,080 $ 1,026,394 $ 6,120,855 $ 1,495,245 $ 2,042,565 $ 1,647,188 Airport Tower 27,264 20,540 21,216 30,642 30,641 41,685 Total Operating Expenditures 784,344 1,046,934 6,142,071 1,525,886 2,073,206 1,688,873 Capital Expenditures Airport CIP $ 2,288,656 $ 4,399,015 $ 7,424,594 $ 34,300,000 $ 58,822,973 Infrastructure Improvements 844,792 2,081,040 135,980 - 1,288,922 - Taxiway Improvements 6,544,328 916,366 - - 1,161,688 - Total Capital Expenditures 9,677,775 7,396,421 7,560,574 34,300,000 61,273,583 -

Total Airport Revenues 10,912,866 7,023,393 23,136,419 35,825,886 35,825,886 1,688,873 Total Airport Expenditures (10,462,119) (8,443,355) (13,702,645) (35,825,886) (63,346,789) (1,688,873) Net Increase (Decrease) 450,748 (1,419,962) 9,433,774 (0) (27,520,903) -

Beginning Fund Balance 203,885 654,633 (765,329) 8,668,445 8,668,445 (18,852,458)

Assigned Fund Balance 808,495 248,304 654,633 8,668,445 8,668,445 - Unassigned Fund Balance (153,862) (1,013,633) 8,013,812 - (27,520,903) (18,852,458) Ending Fund Balance 654,633 (765,329) 8,668,445 8,668,445 (18,852,458) (18,852,458)

Division Function

• The Airport and Airport CIP funds are a division of the Public Works Department. The purpose of the Airport Divi- sion is to operate and maintain the airport for the greatest benefit to the citizens of Provo. Some of its responsibilities include a) maintaining safe operations as airport use increases to include scheduled air passenger commercial service; b) minimizing potential impacts on surrounding neighborhoods through consistent enforcement of policies; c) maintaining compliance with FAA grant assurances; d) protecting the Provo taxpayers’ investment in the airport; and e) assuring continued FAA funding. The Airport CIP tracks all major renovations at the Airport, along with run- way maintenance and other capital projects. The main source of funding for the CIP fund is the FAA.

Provo City Adopted Budget 2021-2022 68

Highlights Airport Total Expenditure • New Terminal Building under construction. 40,000,000 • Purchased 29 acres of property immedi- 35,000,000 ately north of, and adjacent to, the existing airport to be used for future expan- 30,000,000 sion of the airport as well as a means of 25,000,000 providing the required local match on FAA federal grants. 20,000,000 • Construction was completed on 4 corporate hangars, each in excess of 15,000 15,000,000 square feet. 10,000,000 • Duncan Aviation Office Building opened for business 5,000,000 • Allegiant Airlines added Denver, CO as a - new flight destination. Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 69

Power

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Energy FY 2021 FY 2021 FY 2022 Revenue Utility Sales $ 71,472,917 $ 70,488,039 $ 69,082,089 $ 66,920,271 $ 66,920,271 $ 68,123,408 Miscellaneous 3,129,380 2,708,120 1,483,371 102,000 102,000 531,381 Telecom Debt Charge 3,421,532 3,446,734 3,382,212 3,250,000 3,250,000 3,250,000 Fees 90,810 107,414 1,285,149 2,107,000 2,107,000 2,313,674 Principal Payment ------Aid to Construction - 255,952 497,037 1,700,000 1,700,000 1,700,000 Interest Income 574,302 1,019,255 643,787 443,696 443,696 220,000 Total Revenue 78,688,940 78,025,513 76,373,644 74,522,967 74,522,967 76,138,463 Operating Expenditures Energy Administration $ 4,815,490 $ 5,554,803 $ 5,627,040 $ 5,537,896 $ 5,498,784 $ 5,333,640 Energy Office Buildings 122,563 174,972 176,529 231,960 231,961 256,127 Energy Budget & Rate Analysis 208,562 173,255 182,767 260,681 260,681 192,894 Energy Customer Assistance 293,922 333,714 186,705 285,791 448,091 351,328 Energy Warehouse Operations 172,885 176,461 169,469 177,059 177,059 173,673 Energy Warehouse Inventory 123,487 (2,795) (3,625) 10,000 10,000 10,000 Energy Sys Engineering Trans 398,027 424,099 436,296 365,436 365,437 390,833 Energy Srvc Engineering Dist. 394,994 486,187 489,414 593,597 593,597 684,527 Energy GIS/CAD 237,895 265,317 273,585 289,990 289,990 325,860 Energy Purchased Power 48,728,356 47,116,733 44,636,438 45,719,301 45,719,301 47,968,874 Energy Power Cntrl/ Load Dsptch 578,784 609,254 651,811 785,253 785,253 706,127 Energy Transmission Substation 724,905 740,930 771,718 823,275 823,276 873,110 Energy Distr Street Lighting 92,700 43,990 23,326 174,472 174,472 182,409 Energy Distribution - Smart Grid 519,393 525,997 450,542 711,719 711,719 400,220 Energy Distribution - Meters - - - - - 405,187 Energy Dist. Street Tree 76,296 142,263 220,225 274,431 274,431 287,387 Energy Distribution Forestry 1,146,431 1,030,964 1,033,056 1,165,083 1,175,083 1,244,722 Energy Dist. Overhead Lines 2,235,038 2,247,862 2,268,260 2,984,613 2,994,613 3,148,152 Total Operation Expenditures 60,869,727 60,044,004 57,593,556 60,390,558 60,533,748 62,935,071 Capital Expenditure Distribution System $ 3,434,214 $ 3,743,571 $ 3,112,186 $ 3,135,078 $ 3,382,105 $ 3,053,238 Transmission System 7,769 66,412 140,939 1,686,000 2,695,061 286,000 Substations 533,317 4,346,182 2,887,794 6,500,700 8,047,607 5,329,500 City Projects 180,599 737,323 954,628 580,000 630,372 1,230,000 SCADA/AMI 3,195 1,140 44,218 166,667 222,449 200,000 Administration Projects 585,530 66,508 1,042,494 1,361,500 1,830,094 1,541,100 Total Capital Expenditure 4,744,625 8,961,136 8,182,259 13,429,945 16,807,688 11,639,838

Transfer Out 11,072,933 11,117,409 11,025,879 11,058,325 11,058,325 11,190,670

Total Energy Revenues 78,688,940 78,025,513 76,373,644 74,522,967 74,522,967 76,138,463 Total Energy Expenditure & Transfer Out (76,687,285) (80,122,548) (76,801,694) (84,878,828) (88,399,761) (85,765,579) Net Change in Fund Balance 2,001,656 (2,097,035) (428,050) (10,355,861) (13,876,794) (9,627,116)

Beginning Fund Balance 35,597,211 37,598,867 35,501,832 35,073,782 35,073,782 21,196,988

Assigned Fund Balance 16,502,407 11,145,483 12,052,959 12,052,959 - - Unassigned Fund Balance 21,096,460 24,356,349 23,020,823 12,664,962 21,196,988 11,569,872 Ending Fund Balance 37,598,867 35,501,832 35,073,782 24,717,921 21,196,988 11,569,872

Provo City Adopted Budget 2021-2022 70

Department Function

• The Energy Department provides reliable electricity with superior customer service at a competitive price to the residents and businesses in Provo. The department operates and maintains over 35,000 meters, 380 miles of distribution lines, 48 miles of transmission lines, and 18 substation transformers. Provo City Power is the largest municipal- ly-owned electric utility in the state. Provo is a member of the Utah Municipal Power Agency (UMPA) which is responsible for the management and scheduling of all power resources serving Provo and the other member utilities. The electricity is generated from coal fired power plants, hydroelectric generation and natural gas plants. One major challenge for the utility is to develop new resources for future loads and manage the environmental landscape.

Highlights Energy Total Expenditure • Completed the Mountain Vista Substation 80,000,000 • Completed South State Substation Up- grade 70,000,000 • Awarded first place Safety and Top Tier 60,000,000 Reliable Utility by APPA 50,000,000 • Engineering and crews completed 199 projects throughout the City 40,000,000 • Negotiated contract with BYU for pur- 30,000,000 chasing power and maintaining transfer 20,000,000 to the city’s general fund 10,000,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Performance Measures

Annual Totals Priority Goal Performance Measures 2020 2021 2022 Actual Current Target Target Injuries 2 0 0 0 Hours Worked Without Safe City Safe Employees Injury 112,313 56,156 1,000,000,000 1,000,000,000 Vehicle Accident Rate 3 - 0 0 Days Cash on Hand 158 174 120 120 Debt Service Coverage 2 2.59 1.75 2.00 Healthy Financials Rate Stabilization Fund $ 34,596,056 $29,868,754 $25,000,000 $25,000,000 Fund Balance $ 38,873,291 $42,575,004 $35,000,000 $35,000,000 Responsible Government Overtime Cost 0.1% 0.2% <3% <3% Connections per Efficient Operations Employee 539 544 >400 >400 Operating Cost per Customer $198 $150 $350 $350 Delinquent Revenue 1% 0% <1% <1% Community Minimize Credit Shut Offs Credit Disconnects 460 195 <1000 <1000 Low-Carbon Energy Sources 33% 33% 30% 40% Reliable Power CAIDI 96 114 <120 <120 Healthy, Inviting Environment SAIDI 3 2 <12 <12 SAIFI 0.04 0.03 <0.11 <0.11 Sufficient Capacity System Load Factor 70% 70% >65% >65%

Provo City Adopted Budget 2021-2022 71

Peaks Ice Arena

Original Budget Adjusted Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Peaks Ice Arena FY 2021 Budget FY 2021 FY 2022 Revenue & Transfer In Fees $ - $ 1,353,781 $ 1,514,042 $ 1,258,000 $ 1,258,000 $ 1,505,000 Miscellaneous - 6,398 2,900 30,000 30,000 40,000 Interlocal Contribution - 50,000 50,000 50,000 50,000 50,000 Interest Income - 25,800 18,219 5,000 5,000 5,000 Transfer In ------Total Revenue & Transfer In - 1,435,979 1,585,162 1,343,000 1,343,000 1,600,000 Operation Expenditures Peaks Ice Arena - $ 1,629,799 $ 1,400,361 1,331,259 $ 1,595,500 1,646,102 Total Operating Expenditures - 1,629,799 1,400,361 1,331,259 1,595,500 1,646,102

Total Peaks Revenues - 1,435,979 1,585,162 1,343,000 1,343,000 1,600,000 Total Peaks Expenditures - (1,629,799) (1,400,361) (1,331,259) (1,595,500) (1,646,102) Net Increase (Decrease) - (193,820) 184,801 11,741 (252,500) (46,102)

Beginning Fund Balance - - (193,820) 373,824 373,824 121,324

Assigned Fund Balance ------Unassigned Fund Balance - (193,820) (9,019) 385,565 121,324 75,222 Ending Fund Balance - (193,820) (9,019) 385,565 121,324 75,222

Department Function

• The Peaks Ice Arena is a facility constructed for the 2002 Winter Olympics in Utah. It was a joint venture between Utah County and Provo city. As of the end of FY 2018, Utah County and Provo City agreed that Provo City would be the sole operator with a minimal fixed contribution from the county.

Highlights Peaks Ice Arena Total Expenditure

1,800,000 • Historic number of teams in Adult hockey (37) 1,600,000 • Diversified programming to add ad- 1,400,000 ditional revenue 1,200,000 • Hosted 4 additional tournaments 1,000,000 with record participation (Western 800,000 States Girls Tournament, Park City 600,000 High Mountain Shootout, Jr Tourna- 400,000 ment, Grizz Cup, TCS Hockey). 200,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 72

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Leadership Staff CPR/AED Management Staff Safety 100% 90% 100% 100% Certification Improve Building/Facility Safe City Street crossing safety lighting - - - 1 Safety Improve general organization to Meeting OSHA standards provide safer work environments Figure Skating Shows 2 2 1 3 Community Outreach Olympic event for the community - - - 1 Skate with Santa public event 1 1 1 1 Community Improve the Customer Experience Operational Efficiencies - - DONE - through improved group rentals Increase Number of public skate Community Participation 100k 90k 110k 125k participants Host 2 out of state hockey Promote Tourism 2 3 2 3 tournaments Business & Economic food trucks night 1 Vitality Partner with Local Business Host State Recreation Div. Tournament 1 1 1 1 Promote Financial Stability Meet Budget Expense Goals 100% 50% short 100% Google Business Reviews Google Rating 4.3 4.4 4.5 4.7 Responsible Government User fee based self sustaining Zero operational subsidy level $0 $0 $0 $0 based operations. County Health Food Establishment Concessions Safety YES YES YES YES Permit Emergency Action Plan 2 Staff meetings related to EAP NO NO YES YES Healthy, Inviting Research new clean air ice Environment Clean air and emissions 100% resurface (Zamboni) Required Equipment/Facility Meet City Code 100% 100% 100% 100% Inspections

Sanitation

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 FY 2021 FY 2021 FY 2022 Sanitation Revenue Utility Sales $ 4,348,741 $ 4,840,247 $ 5,365,379 $ 6,073,850 $ 6,073,850 $ 6,125,000 Miscellaneous 55,664 28,482 (11,297) 60,500 60,500 60,500 Fees 783,237 924,014 1,023,939 241,000 241,000 241,000 Interest Income 7,983 15,814 18,553 10,000 10,000 10,000 Total Revenue 5,195,625 5,808,557 6,396,575 6,385,350 6,385,350 6,436,500 Operating Expenditures Sanitation Collections $ 4,208,059 $ 4,754,397 $ 4,625,029 $ 5,397,467 $ 5,923,745 $ 5,524,225 Green Waste ------Total Operating Expenditures 4,208,059 4,754,397 4,625,029 5,397,467 5,923,745 5,524,225 Capital Expenditures Sanitation Projects $ 107,565 $ 383,982 $ 114,633 $ 150,000 $ 310,433 $ 210,000 Total Capital Expenditure 107,565 383,982 114,633 150,000 310,433 210,000

Transfers Out 606,615 669,257 741,279 751,377 751,377 757,003

Total Sanitation Revenues 5,195,625 5,808,557 6,396,575 6,385,350 6,385,350 6,436,500 Total Sanitation Expenses (4,922,239) (5,807,636) (5,480,941) (6,298,844) (6,985,555) (6,491,228) Net Change in Fund Balance 273,386 921 915,635 86,506 (600,205) (54,728)

Beginning Fund Balance 229,093 502,479 503,400 1,419,035 1,419,035 818,830

Assigned Fund Balance 391,120 16,612 159,048 - - - Unassigned Fund Balance 111,359 486,788 1,259,987 1,505,541 818,830 764,102 Ending Fund Balance 502,479 503,400 1,419,035 1,505,541 818,830 764,102

Division Function

• Sanitation is a division within the Public Works Department. This division provides automated residential refuse (black can) collection, recyclable (blue can) collection, and green waste (green can) recycling. Sanitation also manages neighborhood-oriented cleanup programs in the spring and fall of each year.

Highlights Sanitation Total Expenditure

• Maintained Provo resident’s recycling rates 7,000,000 despite steep increases to recycling costs to 6,000,000 the Solid Waste District • Purchased new green waste grinder to ade- 5,000,000 quately accommodate the volume of green 4,000,000 waste being processed • Expanded green waste facility footprint to bet- 3,000,000 ter accommodate compost and mulching op- 2,000,000 erations in order to comply with State of Utah permit requirements. 1,000,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 74

Wastewater

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Wastewater FY 2021 FY 2021 FY 2022 Revenue Utility Sales $ 11,253,400 $ 14,812,212 $ 16,671,826 $ 21,131,250 $ 21,131,250 $ 23,244,375 Miscellaneous 369,659 945,152 289,856 15,000 15,000 15,000 Fees - 93,614 926,313 1,016,500 1,016,500 1,016,500 Loan - - - 15,000,000 15,000,000 28,000,000 Grants ------Interest Income 248,985 364,224 125,502 200,000 200,000 200,000 Total Revenue 11,872,044 16,215,202 18,013,496 37,362,750 37,362,750 52,475,875 Operations Expenditure Wastewater Reclamation $ 4,058,998 $ 4,197,392 $ 4,305,802 $ 4,992,066 $ 5,886,530 $ 5,330,012 Wastewater Collection 1,034,474 1,069,210 856,411 865,140 883,835 964,365 Total Operating Expenditure 5,093,473 5,266,602 5,162,212 5,857,206 6,770,365 6,294,377 Capital Expenditure Wastewater Capital $ 5,061,496 $ 16,158,506 $ 13,986,112 $ 29,321,500 $ 32,512,574 $ 35,406,000 Total Capital Expenditure 5,061,496 16,158,506 13,986,112 29,321,500 32,512,574 35,406,000

Transfer Out 1,907,936 1,905,556 1,919,736 3,026,565 3,026,565 3,259,008

Total Wastewater Revenue 11,872,044 16,215,202 18,013,496 37,362,750 37,362,750 52,475,875 Total Wastewater Expenditures (12,062,904) (23,330,664) (21,068,061) (38,205,271) (42,309,504) (44,959,385) Net Change in Fund Balance (190,860) (7,115,461) (3,054,564) (842,521) (4,946,754) 7,516,490

Beginning Fund Balance 14,264,874 14,074,014 6,958,553 3,903,989 3,903,989 (1,042,765)

Assigned Fund Balance 10,365,691 11,238,930 10,809,978 10,809,978 - - Unassigned Fund Balance 3,708,323 (4,280,377) (6,905,989) (7,748,510) (1,042,765) 6,473,725 Ending Fund Balance 14,074,014 6,958,553 3,903,989 3,061,468 (1,042,765) 6,473,725

Highlights Department Function • Design of Reclamation Plant proceeding towards 90%, mak- • Wastewater is composed of two sec- ing design changes to meet budget requirements. tions (Wastewater Collections and • Westside sewer and water improvements ready for construc- Water Reclamation) within the Water tion this year Resources Division of the Public Wastewater Total Expenditures Works Department. These sections 50,000,000 provide comprehensive sanitary wastewater collection and treatment 45,000,000 services to the community. These 40,000,000 sections operate a fully delegated In- 35,000,000 dustrial Pre-treatment Program to 30,000,000 control the discharge of toxic, harmful 25,000,000 or untreatable wastes to the sewer 20,000,000 system. Funding for operation, 15,000,000

maintenance, and capital wastewater 10,000,000

needs are provided by sewer rates 5,000,000

and minor miscellaneous revenues. - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 75

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Billions of gallons of sewage Safe City Healthy Waterways treated (Calendar Year) 3.9 0.6 4.0 4.0

Provo City Adopted Budget 2021-2022 76

Water

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Water FY 2021 FY 2021 FY 2022 Revenue Utility Sales $ 14,025,637 $ 14,356,667 $ 15,110,439 $ 15,182,600 $ 15,162,600 $ 15,904,530 Grant - - - - - 30,000,000 Miscellaneous 598,506 79,925 (76,300) 50,000 70,000 70,000 Fees 254,776 459,159 851,111 1,235,000 1,235,000 1,235,000 Interest Income 97,517 202,167 197,796 100,000 100,000 100,000 Transfer In 583,820 583,820 - 583,820 583,820 583,820 Total Revenue & Transfer In 15,560,257 15,681,738 16,083,047 17,151,420 17,151,420 47,893,350 Operations Expenditure Public Works Administration $ 436 $ 336,687 $ 427,599 $ 519,464 $ 513,594 $ 557,762 Water Administration 4,138,982 4,183,994 4,305,068 4,410,699 4,532,685 4,428,440 Water Sources 2,194,378 2,425,296 2,447,243 2,753,827 2,800,170 2,817,192 Water Distribution 1,488,740 1,517,268 1,638,849 1,688,131 1,688,577 1,763,785 Water Inventory 129,644 22,944 10,942 - 1,026 1,000 Total Operating Expenditure 7,952,180 8,486,189 8,829,699 9,372,121 9,536,052 9,568,178 Capital Expenditure Water Capital $ 4,368,683 $ 3,546,767 $ 5,567,964 $ 6,080,000 $ 14,728,635 $ 37,130,000 Total Capital Expenditure 4,368,683 3,546,767 5,567,964 6,080,000 14,728,635 37,130,000

Transfer Out $ 1,791,892 $ 1,657,204 $ 1,800,985 $ 1,856,458 $ 1,856,458 $ 1,938,070

Total Water Revenues 15,560,257 15,681,738 16,083,047 17,151,420 17,151,420 47,893,350 Total Water Expenditure & Transfer Out (14,112,755) (13,690,159) (16,198,648) (17,308,579) (26,121,145) (48,636,248) Net Change in Fund Balance 1,447,502 1,991,579 (115,601) (157,159) (8,969,725) (742,898)

Beginning Fund Balance 6,098,303 7,545,805 9,537,384 9,421,783 9,421,783 452,058

Assigned Fund Balance 5,569,367 3,759,340 4,471,860 4,471,860 - - Unassigned Fund Balance 1,976,438 5,778,044 4,949,923 4,792,764 452,058 (290,840) Ending Fund Balance 7,545,805 9,537,384 9,421,783 9,264,624 452,058 (290,840)

Department Function

• The Water Distribution and Water Sources Sections of the Water Resources Division are included in the Public Works Department. The mission of these sections is to protect the community’s health and welfare by providing an abundant supply of high quality water in a way which exceeds federal and state water quality standards at a competitive price. These sections provide comprehensive culinary water services to the community utilizing water service sales, connection fees, and minor miscellaneous revenues.

Highlights Water Total Expenditures

• Southwest Lift station project being bid out 50,000,000 Spring 2021 45,000,000 • Westside sewer and water improvements 40,000,000

ready for construction this year 35,000,000 • 4800 North well and pumphouse completed and on-line with backup generator. 30,000,000 • Aquifer Storage & Recovery pilot program 25,000,000 underway at 3 locations, (Riverview Park, 20,000,000 Rock Canyon Park and 3950 North Future 15,000,000 Park) 10,000,000

5,000,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 77

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Bacteriological Samples Taken 1400 Safe City Safe Water Water Usage (Billion Gallons) 9.7 0.8 9 9

Provo City Adopted Budget 2021-2022 78

Utility Transportation

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Utility Transportation FY 2021 FY 2021 FY 2022 Revenue Fees $ 2,127,467 $ 2,150,893 $ 2,128,555 $ 2,200,000 $ 2,200,000 $ 2,200,000 Miscellaneous 34,112 45,657 26,134 - - - Total Revenue 2,161,579 2,196,550 2,154,688 2,200,000 2,200,000 2,200,000 Expenditure Utility Transportation $ 2,871,069 $ 1,994,134 $ 3,894,913 $ 2,030,000 $ 2,773,708 $ 2,140,000 Total Expenditure 2,871,069 1,994,134 3,894,913 2,030,000 2,773,708 2,140,000

Net Change in Fund Balance (709,491) 202,416 (1,740,225) 170,000 (573,708) 60,000

Beginning Fund Balance 2,793,314 2,083,823 2,286,239 546,014 546,014 (27,694)

Assigned Fund Balance 197,238 1,994,870 1,423,801 - - - Unassigned Fund Balance 1,886,585 291,369 (877,787) 716,014 (27,694) 32,306 Ending Fund Balance 2,083,823 2,286,239 546,014 716,014 (27,694) 32,306

Department Function

• The Utility Transportation Fund (UTF) was established in FY 2014 to provide a transparent, sustainable and equita- ble source of funding for road maintenance. A monthly fee is assessed to all property owners within the City on their monthly utility bill. The basis of the monthly charge is calculated on the estimated number of average daily vehicle trips generated by each property in the City. In the past, Provo City has used bonding as a resource of revenue for ongoing street maintenance. The Provo City Municipal Council and City Administration determined that this was not a sustainable source of funding for street maintenance.

Highlights UTF Total Expenditure

• Significant investment in road resurfacing 5,000,000 was planned in FY 2019. Much of the con- 4,500,000 struction took place over FY 2020, in addi- 4,000,000 tion to new projects. 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 79

Golf Course

Actual FY Actual FY Actual FY Original Budget Adjusted Budget Adopted Budget Golf 2018 2019 2020 FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 804,350 $ 1,215,560 $ 438,324 $ 1,159,687 $ 1,159,687 $ 1,609,100 Miscellaneous 10,672 13,325 3,545,568 1,500 1,500 500 Interest Income 1,792 788 - 1,500 1,500 1,500 Transfer In 111,936 256,958 56,737 60,882 60,882 - Total Revenue & Transfer In 928,750 1,486,632 4,040,629 1,223,569 1,223,569 1,611,100 Operations Expenditure Golf Course $ 664,282 $ 951,024 $ 1,009,209 $ 1,223,569 $ 1,822,953 $ 1,594,823 Golf Course Maintenance 350,050 - - - - - Total Operations Expenditure 1,014,332 951,024 1,009,209 1,223,569 1,822,953 1,594,823 Capital Expenditure Golf Capital Projects $ - $ 417,460 $ 5,021,648 $ - $ 1,466,711 $ - Total Capital Expenditure - 417,460 5,021,648 - 1,466,711 -

Total Golf Revenues 928,750 1,486,632 4,040,629 1,223,569 1,223,569 1,611,100 Total Golf Expenditures (1,014,332) (1,368,485) (6,030,857) (1,223,569) (3,289,664) (1,594,823) Net Change in Fund Balance (85,582) 118,147 (1,990,229) - (2,066,095) 16,277

Beginning Fund Balance 68,856 (16,726) 101,421 (1,888,808) (1,888,808) (3,954,903)

Assigned Fund Balance ------Unassigned Fund Balance (16,726) 101,421 (1,888,808) (1,888,808) (3,954,903) (3,938,626) Ending Fund Balance (16,726) 101,421 (1,888,808) (1,888,808) (3,954,903) (3,938,626)

Department Function

• The purpose and mission of the East Bay Golf Course is to offer a complete golf experience for players at all levels, at a fair price, that makes the East Bay Golf Course the best recreational value for golfers in the region. This is accomplished through exceptional customer service and superior public facilities including an 18-hole championship course, a seven-hole short course, a full length practice range, three practice greens, and clubhouse with banquet hall, pro shop and food service operation.

Highlights Golf Total Expenditures • In FY22, the Golf Course will be fully oper- 7,000,000 ational since Medical School Project be- 6,000,000 gan in 2017.

• The Trail Course will open; adding a third 5,000,000

golf course to the facility. 4,000,000 The Golf Course leg of the Triple Play will • 3,000,000 be fully operational for the first time since its creation. 2,000,000

1,000,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 80

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Continue to increase security around golf Added signage, Safe City N/A 12 specific areas course for all outdoor fencing and railing. enthusiasts. Create a new charity associated with the Provo Open Charity Community Provo Open to help N/A N/A N/A 10,000 Reboot youth get into the game of golf. In conjunction with the Mayor's Office Business & Economic Host an Economic create an economic - 44,440 Vitality Summit summit to improve vitality in the City Responsible Self Sustaining Entirely self funding NO N/A N/A YES Government Operation operation Healthy, Inviting Rounds Played on all 70,000 Rounds N/A N/A N/A YES Environment courses

Provo City Adopted Budget 2021-2022 81

Special Revenue Funds

Justice Court

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Justice Court FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 1,233,448 $ 1,208,255 $ 1,040,805 $ 1,284,894 $ 1,142,679 $ 1,069,611 Miscellaneous 10,659 183,693 124,631 891 163,106 141,844 Interest Income - 242 6,644 21,000 1,000 1,000 Transfer In 151,251 172,766 - 109,762 109,762 276,963 Total Revenue & Transfer In 1,395,358 1,564,956 1,172,079 1,416,547 1,416,547 1,489,418 Expenditure & Transfer Out Justice Court Administration $ 1,136,453 $ 1,181,462 $ 1,117,073 $ 710,003 $ 716,003 $ 745,248 Criminal Court 83,908 80,665 65,771 369,497 360,064 401,136 Traffic Court 321 - - 80,865 80,865 - Warrants 16,623 12,138 7,991 12,000 12,000 84,044 Security 157,894 160,540 144,783 160,350 160,350 12,000 Small Claims 89 - - 83,832 83,833 160,350 Transfer Out - - - - - 86,640 Total Expenditure & Transfer Out 1,395,288 1,434,805 1,335,618 1,416,548 1,413,115 1,489,418

Net Change in Fund Balance 70 130,152 (163,538) (1) 3,432 -

Beginning Fund Balance (203,826) (203,756) (73,604) (237,143) (237,143) (233,712)

Ending Fund Balance (203,756) (73,604) (237,143) (237,144) (233,712) (233,712)

Division Function

• The Justice Court is part of the Administrative Services Department. The Justice Court provides a community- oriented justice court that focuses on the needs of Provo City. The Justice Court has authority over Class B and Class C misdemeanors, infractions, and violations of city ordinances which includes zoning violations committed within the boundaries of Provo City. The court will also resolve small claim disputes. The Justice Court will offer the citizens of Provo a structured community court that is convenient for the public and will provide excellent customer service through courteous and professional staff.

Highlights Justice Court Total Operating Expenditures • Implemented virtual court hearings 2,000,000 through WebEx. 1,800,000 1,600,000 • Implemented several electronic/online forms. 1,400,000 1,200,000 • Implemented a Pandemic Risk Re- 1,000,000 sponse Plan that has kept the Justice 800,000 Court open and operating safely. 600,000 400,000 200,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 83

Performance Measures Annual Totals Performance Priority Goal 2020 2021 2022 Measure Actual Current Target Target Safe Streets Traffic Cases Filed 8,044 5,202 N/A N/A Safe City Safe Communitees Criminal Cases Filed 2,004 1,436 N/A N/A Time to Disposition 90 monthly TTD report 91% 89% 95% 95% days - Traffic 95% Responsible Time to Disposition 180 monthly TTD report 79% 72% 95% 95% Government days- Criminal 95% Time to Disposition 270 monthly TTD report 81% 81% 95% 95% days- Small Claims

Provo City Adopted Budget 2021-2022 84

Emergency Response

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Emergency Response FY 2021 FY 2021 FY 2022 Revenue & Transfer In Taxes $ 744,237 $ 751,313 $ 798,055 $ 740,000 $ 740,000 $ 846,983 Grants - - 57,847 - - - Interest Income 1,619 5,535 4,860 2,000 2,000 2,000 Transfer In - 1,482,545 1,224,255 1,660,789 1,660,789 1,768,734 Total Revenue & Transfer In 745,856 2,239,393 2,085,017 2,402,789 2,402,789 2,617,717 Expenditure & Transfer Out Emergency Response $ 686,126 $ 2,132,742 $ 2,399,082 $ 2,402,789 $ 2,393,421 $ 2,617,717 Emergency Response Grants - - - - 15,148 - Total Expenditure & Transfer Out 686,126 2,132,742 2,399,082 2,402,789 2,408,569 2,617,717

Net Change in Fund Balance 59,730 106,651 (314,065) 0 (5,780) 0

Beginning Fund Balance 92,080 151,810 258,462 (55,604) (55,604) (61,384)

Ending Fund Balance 151,810 258,462 (55,604) (55,603) (61,384) (61,383)

Department Function

• The Emergency Response Fund is used to account for appropriations associated with the operation of Provo City’s Emergency 911 program.

Emergency Response Total Operating Expenditures 5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 85

Trust and Agency

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 FY 2021 FY 2021 FY 2022 Trust & Agency Revenue Interest Income $ 94,874 $ 151,888 $ 148,681 $ 130,000 $ 130,000 $ 130,000 Miscellaneous ------Total Revenue 94,874 151,888 148,681 130,000 130,000 130,000 Expenditure Trust & Agency $ 1,200 $ 1,546 $ 2,137 $ - $ 3,198 $ - Total Expenditure 1,200 1,546 2,137 - 3,198 -

Net Change in Fund Balance 93,674 150,342 146,543 130,000 126,802 130,000

Beginning Fund Balance 310,927 404,601 554,943 701,486 701,486 958,288

Ending Fund Balance 404,601 554,943 701,486 831,486 958,288 1,088,288

Department Function

• The Trust & Agency Fund is used to hold deposits for construction and performance bonds and also to accumulate money for large capital projects. Budget appropriations are generally limited to interest payments on deposits and transfers to other funds. Budget Highlights

• No significant budget changes.

Trust & Agency Total Operating Expenditures 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 86

Library

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Library FY 2021 FY 2021 FY 2022 Revenue Property Tax $ 3,927,128 $ 3,766,247 $ 4,079,332 $ 4,080,161 $ 4,080,161 $ 4,263,805 Fees 393,723 340,337 243,926 261,000 261,000 261,000 Miscellaneous 2,049 5,019 7,251 2,000 2,000 2,000 Grants 30,553 31,000 33,167 - - - Interest Income 67,862 95,115 82,548 95,000 95,000 95,000 Total Revenue 4,421,314 4,237,718 4,446,224 4,438,161 4,438,161 4,621,805 Expenditure Library Administration $ 1,151,213 $ 1,177,600 $ 1,179,339 $ 1,201,239 $ 1,627,278 $ 1,190,697 Library Custodial 146,866 194,553 181,939 226,711 257,365 226,028 Library Circulation 409,265 417,088 415,161 393,399 394,399 395,932 Community & Library Events 174,587 180,367 168,650 192,994 192,995 210,497 Library Community Relations 162,960 184,254 199,549 205,527 205,527 224,647 The Attic 43,993 41,887 32,222 37,771 37,771 37,640 AV Production Lab 190,579 47,693 41,528 49,642 49,642 50,315 Library Children's Services 551,334 578,673 581,794 643,591 643,591 655,783 Library Systems 473,984 467,064 453,102 486,082 588,249 493,860 Library Adult Services 934,530 917,499 942,279 1,005,502 1,005,501 1,034,151 Library Technical Services 276,525 269,069 243,449 226,793 225,793 232,817 Library Grants 29,383 27,890 29,650 - 12,315 - Total Expenditure 4,545,218 4,503,636 4,468,662 4,669,250 5,240,427 4,752,368

Net Change in Fund Balance (123,904) (265,918) (22,438) (231,089) (802,266) (130,563)

Beginning Fund Balance 3,668,718 3,544,814 3,278,896 3,256,458 3,256,458 2,454,192

Ending Fund Balance 3,544,814 3,278,896 3,256,458 3,025,369 2,454,192 2,323,629

Department Function

• Founded over 100 years ago the Provo City Library's function is to provide the community with an inviting center for information, instruction, learning, leisure, and cultural opportunities. The appointed Library Board is responsible for approving the annual budget, policy approval and oversight of the director's performance. The Library is divided into four major divisions: 1) Administration provides leadership for all areas of the Library and is responsible for the human resources, financial and facilities services for the Li- brary. This division also includes the Events department which manages and facilitates the meeting room usage and the Community Relations department which coordinates many programs, supervises and in- stalls the Attic exhibits and creates and implements the marketing strategies and associated graphic design. 2) Adult/teen services provides reference and reader's advisory assistance and plans and implements weekly and monthly programs and activities. 3) Children's services provides reference and reader's advisory services and plans and implements weekly story times and a variety of other programs throughout a typical month. 4) Support Services consists of Circulation, Technical Services and the Infor- mation Systems departments. Circulation provides checkout and check-in assistance of the Library's collection as well as shelf management. Technical services orders and processes new items. Information Systems provides support for the 100 public computers, 50 staff computers and wireless access points.

Provo City Adopted Budget 2021-2022 87

Highlights Library Total Operating Expenditures • Outreach van was purchased and deliv- 5,000,000 ered to Denver for outfitting. 4,500,000 • Hosted 713 events in our meeting rooms, including 109 ballroom events. 4,000,000 • Library board approved the elimination of 3,500,000 fines on children’s materials. 3,000,000 • Upgraded staff computers to Windows 10. 2,500,000 • Hosted community programs with 11,000 in attendance 2,000,000 • Collection was inventoried. 1,500,000 • Library App was launched. 1,000,000 • Provided staff homelessness training. 500,000 • Completed new Strategic Plan 2020-2025 - • Completed the creation and renovation of nd Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget three small group study rooms on the 2 FY 2021 FY 2022 floor of the Rogers wing.

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Community outreach van Create a marketing initiative for a Community marketing initiative N/A N/A N/A Yes community outreach van by October 2021. created Redesign the website by December 31, Responsible Website redesign 2021 to ensure ease of use by patrons and N/A N/A N/A Yes Government complete staff alike. Establish by June 2020, and continually maintain, a collection of “Let’s Learn Let's Learn Guides Education Guides” pointing youth groups and adult N/A N/A N/A Yes established learners toward resources and activities that promote learning and growth. Monthly programs in By September 2021, establish monthly N/A N/A N/A Yes Community/ Spanish established programs in Spanish in addition to the Education Weekly story times in weekly Spanish story times. N/A N/A N/A Yes Spanish established

Provo City Adopted Budget 2021-2022 88

Covey Center for the Arts

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Covey Center for the Arts FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 621 $ - $ - $ 400,000 $ 400,000 $ 508,000 Miscellaneous 521,734 509,462 370,444 110,500 110,500 114,500 Interest Income 1,131 1,994 1,049 800 800 800 Transfer In 343,303 364,537 350,023 401,580 401,580 398,077 Total Revenue & Transfer In 866,789 875,993 721,516 912,880 912,880 1,021,377 Expenditure Covey Center for the Arts $ 846,068 $ 884,258 $ 892,240 $ 912,880 $ 970,759 $ 981,377 Total Expenditure 846,068 884,258 892,240 912,880 970,759 981,377

Net Change in Fund Balance 20,721 (8,264) (170,724) (0) (57,879) 40,000

Beginning Fund Balance 46,305 67,026 58,761 (111,963) (111,963) (169,843)

Ending Fund Balance 67,026 58,761 (111,963) (111,964) (169,843) (129,843)

Covey Center for the Arts- Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Performance Fund FY 2021 FY 2021 FY 2022 Revenue Miscellaneous $ 139,536 $ 124,185 $ 183,806 $ 150,000 $ 150,000 $ 200,000 Fees ------Interest Income 109 1,619 2,524 - - - Total Revenue 139,645 125,804 186,330 150,000 150,000 200,000 Expenditure Performance Fund $ 66,888 $ 146,428 $ 134,279 $ 149,750 $ 213,199 $ 200,000 Total Expenditure 66,888 146,428 134,279 149,750 213,199 200,000

Net Change in Fund Balance 72,758 (20,624) 52,052 250 (63,199) -

Beginning Fund Balance (6,543) 66,215 45,591 97,643 97,643 34,444

Ending Fund Balance 66,215 45,591 97,643 97,893 34,444 34,444

Department Function

• The mission of the Covey Center is to enrich the lives of our community, provide for educational and creative development opportunities for all ages, provide first class entertainment appropriate for youth and families, and give an opportunity to endow all that is good in the arts for generations to come.

• The Covey Center has hosted over 1,200 performances, including concerts and performances by international, national, and local artists, as well as symphonies, operas, ballets, children’s theatricals, dance recitals, pageants, graduations, benefits and fundraisers. There have been over 40 plays and musicals presented in the Brinton Black Box Theater and the Main Hall. The dance studios have not only provided a place for jazz, ballet, hip hop, middle eastern and ballroom dance classes, but they also are the home of the Covey Center’s high school a cappella group, FreQuency. In addition to performances in the Covey Center, there are three visual art galleries which present rotating exhibits by 18 to 20 different artists, plus a Summer Showcase that features the works of 50 plus different artists.

Provo City Adopted Budget 2021-2022 89

Highlights Covey Center Total Operating Expenditures

• Returned self-produced concerts and 2,000,000 plays 1,800,000 1,600,000 • Remodeled studio stage and Increase 1,400,000 studio usage 1,200,000 1,000,000 • Re-established the Black Box theater 800,000 season 600,000 400,000 • Increased dance class instruction 200,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adjusted Budget Adopted Budget FY 2021 FY 2021 FY 2022

Arts Center Performance Fund

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Number of days building is in Community client usage 167 130 175 203 use Number of performances 195 51 230 200 Community Covey Center presents Number of events 25 8 3 15 Main Hall Events Number of performances 23 8 3 15 Theatre Number of shows 4 3 1 5 Productions Number of performances 46 45 28 75 Family centered events Performances 172 51 142 180 Family Visual Exhibits 11 7 9 14 Number of classes 24/0 16 19 24 Education Promote performance development Number of students 195/0 80 110 160

Provo City Adopted Budget 2021-2022 90

Cemetery Perpetuity

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Cemetery Perpetuity FY 2021 FY 2021 FY 2022 Revenue Fees $ 266,485 $ 258,830 $ 244,638 $ 260,000 $ 260,000 $ - Interest Income 4,633 10,648 10,353 3,500 3,500 3,500 Transfer In - - - - - 267,500 Total Revenue & Transfer In 271,118 269,478 254,990 263,500 263,500 271,000 Expenditures & Transfer Out Transfer Out $ 169,902 $ 169,902 $ - $ 169,569 $ 169,569 $ 168,984 Total Transfer Out 169,902 169,902 - 169,569 169,569 168,984

Net Change in Fund Balance 101,216 99,576 254,990 93,931 93,931 102,016

Beginning Fund Balance 239,720 340,936 440,511 695,501 695,501 883,363

Ending Fund Balance 340,936 440,511 695,501 789,432 883,363 985,379

Department Function

• The Perpetuity Fund is used to set aside funds for future debt service payments from revenues of cemetery activities. Budget Highlights

• Revenue primarily comes from a portion of current cemetery fees and interest income.

• Transfers out are to fund cemetery improvements in the Parks Capital Improvement Fund.

Cemetery Perpetuity Total Operating Expenditures 1,000,000

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 91

Cemetery Plots

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Cemetery Plots FY 2021 FY 2021 FY 2022 Revenue Fees $ 10,400 $ 7,600 $ - $ - $ - $ - Interest Income 417 508 303 - - - Total Revenue 10,817 8,108 303 - - - Expenditure Cemetery Plots $ 15,200 $ 13,400 $ 2,200 $ - $ - $ - Total Expenditure 15,200 13,400 2,200 - - -

Net Change in Fund Balance (4,383) (5,292) (1,897) - - -

Beginning Fund Balance 25,893 21,510 16,218 14,321 14,321 14,321

Ending Fund Balance 21,510 16,218 14,321 14,321 14,321 14,321

Department Function

• This fund is to account for the sale of previously purchased cemetery plots.

Highlights

• Expenditures are to account for the buy-back of the plots that are then re-sold.

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Business & Economic Increased Sales through additional Track Cemetery Revenue $496,975 $424,060 $515,000 $535,000 Vitality interment options and availability Operate a City Cemetery that will Traditional Burial/Total 86% 79% 84% 80% continue to provide a variety of Internments Responsible interment services that meet the Cremation Rate/Total Government 14% 21% 16% 20% needs of residents and add beauty Internments and dignity to the community Total Internments 330 61 300 300

Healthy, Inviting Provide safe, secure and inviting Mausoleum and Yes Yes Yes Yes Environment non-lawn interment options Cremation Garden

Provo City Adopted Budget 2021-2022 92

Community & Neighborhood Services

Actual FY Actual FY Actual FY Original Budget Adjusted Budget Adopted Budget CNS Special Rev Summary 2018 2019 2020 FY 2021 FY 2021 FY 2022 Revenue Grants $ 4,260,939 $ 1,911,822 $ 6,699,061 $ 3,424,037 $ 3,424,037 $ 2,400,000 Miscellaneous 2,833,475 (255,231) (36,614) 97,250 97,250 88,250 Principal Payment - - 0 740,800 740,800 740,800 Interest Income 86,587 103,908 104,404 23,000 23,000 18,000 Transfer In ------Total Revenue 7,181,001 1,760,499 6,766,852 4,285,087 4,285,087 3,247,050 Expenditure Rental Rehabilitation 1,093 1,053 1,096 1,500 1,500 1,500 Community & Neighborhood Services Block Grant 1,418,477 1,870,445 3,880,412 2,983,473 3,784,997 1,701,412 Home Consortium 3,587,513 211,088 282,144 2,410,253 3,405,044 1,200,000 Special Purpose Grant 150 79 184 25,000 201,209 95,000 Total Expenditures & Transfers Out 5,007,233 2,082,664 4,163,836 5,420,226 7,392,750 2,997,912

Net Change in Fund Balance 2,173,769 (322,165) 2,603,016 (1,135,139) (3,107,663) 249,138

Department Function • The Community & Neighborhood Services Department is the name for the newly restructured Community Develop- ment Department. While the bulk of the functions within this department are funded by the general fund, starting in FY 2020, several funds that used to report to the Redevelopment Agency (CDBG, Rental Rehabilitation, Home Con- sortium, and Special Purpose Grant funds ) became part of the redesigned Department of Community and Neigh- borhood Services. • The tables below show the budget for the special revenue funds that fall under the CNS Department.

Rental Rehabilitation Actual FY Actual FY Actual FY Original Budget Adjusted Budget Adopted Budget Rental Rehabilitation 2018 2019 2020 FY 2021 FY 2021 FY 2022 Revenue Principal Payment $ - $ - $ - $ 6,800 $ 6,800 $ 6,800 Interest Income 10,632 18,566 13,291 1,000 1,000 1,000 Total Revenue 10,632 18,566 13,291 7,800 7,800 7,800 Expenditure Rental Rehabilitation $ 1,093 $ 1,053 $ 1,096 $ 1,500 $ 1,500 $ 1,500 Total Expenditure 1,093 1,053 1,096 1,500 1,500 1,500

Net Change in Fund Balance 9,539 17,513 12,195 6,300 6,300 6,300

Beginning Fund Balance 372,369 381,908 399,421 411,615 411,615 417,915

Ending Fund Balance 381,908 399,421 411,615 417,915 417,915 424,215

Highlights

• No significant changes or highlights.

Provo City Adopted Budget 2021-2022 93

Community & Neighborhood Block Grant (CDBG) Community & Neighborhood Actual FY Actual FY Actual FY Original Budget Adjusted Budget Adopted Budget Services Block Grant 2018 2019 2020 FY 2021 FY 2021 FY 2022 Revenue Grants $ 1,397,177 $ 1,284,713 $ 3,855,655 $ 2,014,124 $ 2,014,124 $ 1,200,000 Interest Income 6,561 9,741 19,392 5,000 5,000 5,000 Miscellaneous 43,826 (1,580) - 82,000 82,000 82,000 Total Revenue 1,447,564 1,292,874 3,875,047 2,101,124 2,101,124 1,287,000 Expenditure CDBG Administrative $ 353,973 $ 1,870,445 $ 357,470 $ 526,591 $ 524,312 $ 701,412 CDBG Capital Projects 50 - 1,022,942 1,710,885 2,514,688 - CDBG Special Funds 1,064,455 - - 745,997 745,997 1,000,000 Transfer Out - - 2,500,000 - - - Total Expenditure 1,418,477 1,870,445 3,880,412 2,983,473 3,784,997 1,701,412

Net Change in Fund Balance 29,087 (577,571) (5,365) (882,349) (1,683,873) (414,412)

Beginning Fund Balance (86,524) (57,437) (635,008) (640,373) (640,373) (2,324,246)

Ending Fund Balance (57,437) (635,008) (640,373) (1,522,722) (2,324,246) (2,738,658)

Highlights

• Put in 9 windows to meet egress. • Assisted 5 low income families with emergency repairs. • Assisted 5 local nonprofit with capital improvement projects so they can continue to assist the community. • Assisted 10 Public Services entities carry out the assistance they do within the community. • Began to pay back the 108 loan that was used to help bring jobs to the area.

Home Consortium Actual FY Actual FY Actual FY Original Budget Adjusted Budget Adopted Budget Home Consortium 2018 2019 2020 FY 2021 FY 2021 FY 2022 Revenue Grants $ 2,863,762 $ 627,109 $ 2,843,406 $ 1,409,913 $ 1,409,913 $ 1,200,000 Interest Income 60,504 70,562 67,050 15,000 15,000 10,000 Miscellaneous 2,789,649 (253,651) (36,614) 15,000 15,000 6,000 Principal Payment - - 0 684,000 684,000 684,000 Total Revenue 5,713,915 444,020 2,873,842 2,123,913 2,123,913 1,900,000 Expenditure Home Consortium $ 3,587,513 $ 211,088 $ 282,144 $ 2,410,253 $ 3,405,044 $ 1,200,000 Total Expenditure 3,587,513 211,088 282,144 2,410,253 3,405,044 1,200,000

Net Change in Fund Balance 2,126,402 232,933 2,591,699 (286,340) (1,281,131) 700,000

Beginning Fund Balance 966,200 3,092,602 3,325,535 5,917,234 5,630,894 4,349,763

Ending Fund Balance 3,092,602 3,325,535 5,917,234 5,630,894 4,349,763 5,049,763

Highlights

• Assisted 8 Provo families with a DPA loan. • Helped 14 families outside of Provo receive DPA loans. • Funded a local nonprofit get two families into homes. • Assisted another nonprofit to purchase land to build a four-plex to rent to low income senior citizens.

Provo City Adopted Budget 2021-2022 94

Special Purpose Grant

Actual FY Actual FY Actual FY Original Budget Adjusted Budget Adopted Budget 2018 2019 2020 FY 2021 FY 2021 FY 2022 Special Purpose Grant Revenue Fees $ - $ - $ - $ 250 $ 250 $ 250 Interest Income 8,891 5,039 4,672 2,000 2,000 2,000 Principal Payments - - - 50,000 50,000 50,000 Total Revenue 8,891 5,039 4,672 52,250 52,250 52,250 Expenditure Special Purpose Grant $ 150 $ 79 $ 184 $ 25,000 $ 201,209 $ 95,000 Total Expenditure 150 79 184 25,000 201,209 95,000

Net Change in Fund Balance 8,741 4,960 4,487 27,250 (148,959) (42,750)

Beginning Fund Balance 441,775 450,516 455,476 459,964 459,964 311,005

Ending Fund Balance 450,516 455,476 459,964 487,214 311,005 268,255

Highlights

• Assisted one family that was over the normal income limits with a DPA Loan. • Rental Rehab: • Paid bank fees.

Provo City Adopted Budget 2021-2022 95

Capital Improvement Funds

General Capital Improvements

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 General Capital Improvements FY 2021 FY 2021 FY 2022 Revenue & Transfer In Grants $ - $ - $ 267,718 $ - $ - $ - Interest Income - 815,023 1,434,277 - - - Bond Proceeds - 70,137,872 - - - - Transfer In - 700,465 2,627,557 521,272 521,272 908,029 Total Revenue & Transfer In - 71,653,360 4,329,552 521,272 521,272 908,029 Expenditure General Capital Improvements $ 1,241,327 $ 1,308,419 4,438,367 $ 521,272 $ 62,993,791 $ 908,029 City Building Projects - 1,852,050 6,704,490 - - - Grant Operations - - 267,718 - - Transfer Out ------Total Expenditure & Transfer Out 1,241,327 3,160,469 11,410,575 521,272 62,993,791 908,029

Net Change in Fund Balance (1,241,327) 68,492,891 (7,081,023) - (62,472,519) -

Beginning Fund Balance 3,306,286 2,064,959 70,557,850 63,476,827 63,476,827 1,004,308

Assigned Fund Balance 3,306,286 (3,917,095) - - - Unassigned Fund Balance (1,241,327) 74,474,945 63,476,827 63,476,827 1,004,308 1,004,308 Ending Fund Balance 2,064,959 70,557,850 63,476,827 63,476,827 1,004,308 1,004,308

Department Function

• The General Capital Improvement Fund is to account for general City projects not specifically associated with a specific City department.

Highlights General Capital Improvement Total Operating Expenditures • Completed Fire Station 2. • Made headway on the new Police & Fire 14,000,000 Headquarters/City Hall building. 12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 97

B&C Capital Improvement

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 B&C Capital Improvements FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 70,989 $ 310,538 $ 5,908 $ - $ - $ - Interest Income 44,700 62,827 70,898 50,000 50,000 50,000 Miscellaneous 8,375 66,172 12,990 - - - Transfer In 2,892,775 2,857,299 3,082,292 3,017,314 3,017,314 2,946,745 Total Revenue & Transfer In 3,016,838 3,296,836 3,172,087 3,067,314 3,067,314 2,996,745 Expenditure B&C Capital Improvements $ 3,365,307 $ 2,366,008 $ 3,062,549 $ 2,840,000 $ 6,554,221 $ 2,840,000 Transfer Out - - - - - Total Expenditure & Transfer Out 3,365,307 2,366,008 3,062,549 2,840,000 6,554,221 2,840,000

Net Change in Fund Balance (348,469) 930,828 109,538 227,314 (3,486,907) 156,745

Beginning Fund Balance 3,268,514 2,920,045 3,850,873 3,960,411 3,960,411 473,504

Assigned Fund Balance 2,570,427 2,533,781 - - - Unassigned Fund Balance 349,618 1,317,092 3,960,411 4,187,725 473,504 630,249 Ending Fund Balance 2,920,045 3,850,873 3,960,411 4,187,725 473,504 630,249

Department Function

• B&C and Engineering Capital Improvement Project funds are to account for city projects dealing with roads, bridges, sidewalks, and traffic signals. Revenue from these funds come from the B&C Road Tax, impact and developer fees, grants, and transfers from other funds.

B&C Capital Improvement Highlights Total Operating Expenditures

• B&C revenue includes a transfer from 14,000,000 the General Fund funded by the B&C 12,000,000 Road Tax. 10,000,000 • FY 2022 includes projects carried over 8,000,000 from the previous fiscal year. Project balances as of June 30, 2021 will carry 6,000,000 over to the FY 2022 budget after the an- 4,000,000 nual audit. 2,000,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 98

Engineering Capital Improvement

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Engineering Capital Improvements FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 2,619,580 $ 3,428,477 $ 692,847 $ 250,000 $ - $ 250,000 Grants 4,551,576 (264,561) 2,641,829 5,500,000 5,500,000 4,260,870 Other Tax - - 1,845,880 1,650,000 1,650,000 2,056,230 Interest Income 69,385 118,016 88,458 100,000 100,000 100,000 Miscellaneous 809,739 2,982,844 6,756,331 - 1,476,595 Transfer In ------Total Revenue & Transfer In 8,050,280 6,264,776 12,025,345 7,500,000 8,726,595 6,667,100 Expenditure Engineering Capital Improvements $ 7,130,357 $ 5,272,139 $ 10,316,119 $ 7,425,000 $ 16,351,900 $ 6,185,870 Transfer Out 50,000 50,000 50,000 50,000 50,000 50,000 Total Expenditure & Transfer Out 7,180,357 5,322,139 10,366,119 7,475,000 16,401,900 6,235,870

Net Change in Fund Balance 869,923 942,637 1,659,226 25,000 (7,675,305) 431,230

Beginning Fund Balance 3,612,360 4,482,283 5,424,920 7,084,146 7,084,146 (591,159)

Assigned Fund Balance 1,289,253 3,182,014 5,165,485 - - - Unassigned Fund Balance 3,193,030 2,242,906 1,918,661 7,109,146 (591,159) (159,929) Ending Fund Balance 4,482,283 5,424,920 7,084,146 7,109,146 (591,159) (159,929) Department Function

Budget Highlights Engineering Capital Improvement Total Operating Expenditures • FY 2022 includes projects carried over from the previous fiscal year. 20,000,000 Project balances as of June 30, 2021 will carry over to the FY 15,000,000 2022 budget after the annual audit. 10,000,000

5,000,000

- Actual FY Actual FY Actual FY Original Adjusted Adopted 2018 2019 2020 Budget FY Budget FY Budget FY 2021 2021 2022

Provo City Adopted Budget 2021-2022 99

Parks Capital Improvement

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Parks Capital Improvement FY 2021 FY 2021 FY 2022 Revenue & Transfer In Fees $ 664,290 $ 1,575,427 $ 1,088,457 $ 1,500,000 $ 1,500,000 $ 1,500,000 Miscellaneous 40,635 2,125,549 7,500 - - - Grants - - - 3,079,001 3,079,001 4,310,399 Interest Income 84,166 142,870 119,081 - - - Transfer In 1,277,460 1,002,335 1,433,495 1,325,000 1,325,000 1,633,532 Total Revenue & Transfer In 2,066,551 4,846,181 2,648,533 5,904,001 5,904,001 7,443,931 Expenditure Parks Capital Improvement $ 849,882 $ 4,543,420 $ 1,561,818 $ 5,828,122 $ 13,434,403 $ 9,060,895 Transfer Out - - - - 300,496 300,496 Total Expenditure 849,882 4,543,420 1,561,818 5,828,122 13,734,899 9,361,391

Net Change in Fund Balance 1,216,668 302,761 1,086,716 75,879 (7,830,898) (1,917,460)

Beginning Fund Balance 4,682,078 5,898,746 6,201,507 7,288,223 7,288,223 (542,675)

Assigned Fund Balance 2,176,134 2,986,803 3,677,678 - - - Unassigned Fund Balance 3,722,612 3,214,704 3,610,545 7,364,102 (542,675) (2,460,135) Ending Fund Balance 5,898,746 6,201,507 7,288,223 7,364,102 (542,675) (2,460,135)

Department Function

• This fund is used to account for monies spent on capital improvement projects associated with the Parks and Recre- ation Department.

Highlights Parks Capital Improvement : • Will complete design and begin construction Total Operating Expenditures on the Canyon Road Park. 10,000,000 • Will begin construction of the regional sports 9,000,000 park. 8,000,000 • Will complete design and begin construction 7,000,000 on the Provo River Trail 2230 N improve- 6,000,000 ments. 5,000,000 • Will begin construction on the Provo River 4,000,000 Delta Gateway Park. 3,000,000 2,000,000 1,000,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target

Business & Economic Project Savings between Engineer's CIP Fund Yes Yes Yes Yes Vitality Estimate and actual costs

Provo City Adopted Budget 2021-2022 100

Economic Development CIP

Economic Development Capital Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Improvement FY 2021 FY 2021 FY 2022 Revenue Interest Income $ 1,237 $ 6,148 $ 4,292 $ - $ - $ - Grants - - 25,616 - Miscellaneous (3,470) 248,873 17,400 - - - Total Revenue (2,233) 255,022 47,308 - - - Expenditure Economic Development Capital Improvement $ 60,892 $ 159,355 $ 28,705 $ - $ 438,217 $ - Total Expenditure 60,892 159,355 28,705 - 438,217 -

Net Change in Fund Balance (63,125) 95,667 18,603 - (438,217) -

Beginning Fund Balance 198,647 135,522 231,189 249,792 249,792 (188,425)

Assigned Fund Balance ------Unassigned Fund Balance 135,522 231,189 249,792 249,792 (188,425) (188,425) Ending Fund Balance 135,522 231,189 249,792 249,792 (188,425) (188,425)

Department Function

• The Economic Development Capital Improvement fund and the Mountain Vista fund have been used to account for expenditures to help promote and create opportunities for business development within Provo City. Budget Highlights

• Budgets were not approved for any of the funds. Very little revenue is collected and the functions have been col- lapsed into other departments/funds. Fund balances will be used for identified development projects.

Provo City Adopted Budget 2021-2022 101

Internal Service Funds

102

Internal Service Fund Information Internal Service Funds are used to report activities that result in accumulation and allocation of costs of supplies and services provided and used internally among the City’s various functions. The City uses internal service funds to account for employee benefits, insurance and claims, vehicle management and replacement, internal telecom maintenance, facility services, interfund loans, and customer service functions. Major Revenue Source The primary revenue source for all internal service funds is chargeback revenue and transfers in from other funds. Be- low is a revenue and expenses summary from all internal services funds.

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Revenue Source FY 2021 FY 2021 FY 2022 Chargeback $ 13,413,378 $ 13,447,469 $ 14,526,004 $ 17,515,783 $ 17,515,783 $ 17,236,198 Principal/Interest Income 112,610 224,739 270,224 106,000 106,000 102,000 Bond Proceeds ------Miscellaneous 3,297,403 5,103,809 2,770,734 447,863 1,377,777 423,826 Total Revenue 16,823,392 18,776,016 17,566,963 18,069,646 18,999,560 17,762,024 Transfer In 226,176 848,358 953,313 200,000 200,000 1,090,085 Total Revenue & Transfer In 17,049,568 19,624,374 18,520,276 18,269,646 19,199,560 18,852,109

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Internal Service Summary FY 2021 FY 2021 FY 2022 Revenue & Transfer In Employee Benefits $ 2,703,380 $ 2,631,108 $ 2,170,243 $ 1,972,358 $ 1,972,358 $ 1,868,435 Insurance/Claims 1,494,511 1,394,404 1,948,054 2,089,696 2,089,696 2,370,524 Facility Services 1,951,448 2,009,373 1,586,751 1,491,122 1,491,122 1,636,287 Computer Replacement 480,683 1,005,055 557,648 - 929,914 642,474 Vehicle Maintenance 3,152,069 2,950,787 2,601,486 2,907,200 2,907,200 2,965,100 Vehicle Replacement 3,799,374 7,813,381 4,559,463 5,709,866 5,709,866 5,709,849 Telecom 542,710 574,468 567,995 493,313 493,313 490,000 Customer Service 3,009,232 3,735,798 4,528,635 3,606,091 3,606,091 3,169,440 Total Revenue & Transfer In 17,133,408 22,114,374 18,520,276 18,269,646 19,199,560 18,852,109 Expenditure & Transfer Out Employee Benefits $ 2,387,305 $ 2,205,376 $ 1,914,527 $ 1,972,358 $ 1,971,902 $ 1,868,438 Insurance/Claims 1,896,537 1,498,926 1,756,947 1,688,376 1,688,145 2,048,316 Facility Services 1,172,466 1,384,287 1,266,831 1,491,122 2,823,607 2,131,262 Computer Replacement 374,178 944,342 323,616 - 929,914 642,474 Vehicle Maintenance 3,017,956 2,806,957 2,770,755 2,930,438 2,983,277 3,054,395 Vehicle Replacement 4,703,496 4,616,296 6,028,796 5,159,173 8,626,263 6,261,366 Telecom 23,203 43,745 57,025 333,997 333,997 484,743 Customer Service 3,083,181 3,695,845 4,259,878 3,588,127 3,581,039 3,170,364 Total Expenditure & Transfer Out 16,658,322 17,195,775 18,378,374 17,163,592 22,938,144 19,661,357

Net Surplus (Deficit) 475,086 4,918,599 141,901 1,106,054 (3,738,584) (809,248)

Provo City Adopted Budget 2021-2022 103

Employee Benefits

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Employee Benefits FY 2021 FY 2021 FY 2022 Revenue Chargeback $ 2,482,496 $ 2,357,054 $ 1,965,083 $ 1,795,978 $ 1,795,978 $ 1,716,142 Miscellaneous 147,025 129,808 101,884 106,380 106,380 82,293 Interest Income 73,859 144,246 103,276 70,000 70,000 70,000 Total Revenue 2,703,380 2,631,108 2,170,243 1,972,358 1,972,358 1,868,435 Expenditure Employee Benefits $ 2,375,216 $ 2,175,128 $ 1,898,816 $ 1,887,458 $ 1,887,002 $ 1,785,838 Wellness 2,154 16,714 3,114 37,300 37,300 35,000 Benefits Fair 2,377 3,160 3,660 4,000 4,000 4,000 Fitness for Duty 7,558 10,375 8,938 43,600 43,600 43,600 Total Expenditure 2,387,305 2,205,376 1,914,527 1,972,358 1,971,902 1,868,438

Net Change in Fund Balance 316,076 425,731 255,716 0 456 (3)

Beginning Fund Balance 2,086,306 2,402,381 2,828,112 3,083,828 3,083,828 3,084,284

Ending Fund Balance 2,402,381 2,828,112 3,083,828 3,083,829 3,084,284 3,084,281

Department Function

• The Employee Benefits Fund is an internal service fund established for the accounting of the benefits afforded to City employees. The Fund consists of several chargeback accounts such as workers compensation and retiree dollars used for medical and life insurance benefits. The fund also covers other non-chargeback employee benefit and training expenditures such as drug testing, employee assistance program, unemployment, training, wellness program, background checks, fitness for duty, case management and administration fees for benefit-related services such as COBRA, Health Savings Accounts and Health Reimbursement Arrangement.

Highlights Employee Benefits Total Operating Expenditures • Analyze insurance and other employee 5,000,000 benefit costs to identify possible savings 4,500,000 while remaining competitive. 4,000,000 • Work to accumulate appropriate fund bal- 3,500,000 ance according to financial policies. 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 104

Insurance and Claims

Original Budget Adjusted Budget FY Adopted Budget FY Actual FY 2018 Actual FY 2019 Actual FY 2020 Insurance FY 2021 2021 2022 Revenue Chargeback $ 1,475,453 $ 1,372,058 $ 1,918,579 $ 2,039,587 $ 2,039,587 $ 2,320,415 Miscellaneous - - - 34,109 34,109 34,109 Interest Income 19,058 22,346 29,475 16,000 16,000 16,000 Total Revenue 1,494,511 1,394,404 1,948,054 2,089,696 2,089,696 2,370,524 Expenditure Insurance $ 1,896,537 $ 1,498,926 $ 1,756,947 $ 1,688,376 $ 1,688,145 $ 2,048,316 Total Expenditure 1,896,537 1,498,926 1,756,947 1,688,376 1,688,145 2,048,316

Net Change in Fund Balance (402,026) (104,522) 191,107 401,320 401,551 322,208

Beginning Fund Balance 1,512,308 1,110,282 1,005,761 1,196,868 1,196,868 1,598,419

Ending Fund Balance 1,110,282 1,005,761 1,196,868 1,598,187 1,598,419 1,920,627

Department Function

• The Insurance and Claims Fund is established to manage the risk management activities of the City. Insurance costs, legal expenses and settlements are budgeted in this fund. The fund balance in this fund is designed to cover the self-insured portion of the City’s liability coverage.

Highlights Insurance Total Operating Expenditures

2,500,000 • Analyze expenses and insurance coverage to best determine the level of coverage ap- 2,000,000 propriate for the City.

• Work to accumulate the appropriate fund 1,500,000 balance prescribed by the financial policies. 1,000,000 • In each recent years, additional funds for reserve were added to the budget to ac- 500,000 count for increasing reserves for claims in addition to increased current-year expenses for claims. - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 105

Facility Services

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 FY 2021 FY 2021 FY 2022 Facility Services Revenue Chargeback $ 1,949,075 $ 1,598,270 $ 1,319,673 $ 1,478,748 $ 1,478,748 $ 1,376,252 Miscellaneous 1,902 1,107 464 12,374 12,374 12,424 Interest Income 472 14,995 29,614 - - - Transfer In - 395,000 237,000 - - 247,611 Total Revenue 1,951,448 2,009,373 1,586,751 1,491,122 1,491,122 1,636,287 Expenditure Facility Administration $ 265,241 $ 254,928 $ 261,563 $ 285,746 $ 283,234 $ 294,112 Janitorial 156 - - - - - Preventative Maintenance 445,023 438,144 450,034 574,020 574,020 450,660 Service Requests 169,737 375,292 232,505 280,000 280,000 280,000 Projects 152 - - - - - Surplus 159 - - 12,374 12,374 12,424 Contracts 291,998 293,518 302,814 338,983 338,983 351,480 General Fund Maintenance - 22,405 19,914 - 1,334,996 247,611 Transfer Out - - - - - 494,974 Total Expenditure & Transfer Out 1,172,466 1,384,287 1,266,831 1,491,122 2,823,607 2,131,262

Net Change in Fund Balance 778,982 625,086 319,920 (0) (1,332,485) (494,975)

Beginning Fund Balance 2,387,305 2,387,305 2,205,376 1,914,527 1,914,527 1,971,902

Ending Fund Balance 2,387,305 2,205,376 1,914,527 1,972,358 1,971,902 1,868,438

Department Function

• The Facility Service Division is part of the Administrative Services Department. This Division is responsible for the construction, remodeling and maintenance of more than 740,000 square feet in City facilities. To fulfill these responsibilities, the Facility Services Division provides technical expertise, project management, preventive and ongoing maintenance services, asset management, contract oversight, etc. Facility Services offers this wide variety of services to each of the City’s offices in order to reduce costs, meet state and federal standards and assist each department in accomplishing its mission in an effective and efficient manner. Facility Services staff maintain and repair electrical, plumbing and HVAC systems, making certain that infrastructure operating systems in City facilities function safely and in the manner in which they were designed.

Highlights Facilities Total Operating Expenditures

• Funding for General Fund mainte- 2,500,000 nance was added in FY 2019 with a 2,000,000 transfer to account for the amount.

This facilitates the payment and man- 1,500,000 agement of maintenance on all facilities that fall under the General Fund. 1,000,000

500,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 106

Computer Replacement

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Computer Replacement FY 2021 FY 2021 FY 2022 Revenue Miscellaneous $ 477,284 $ 999,670 $ 548,756 $ - $ 929,914 $ - Interest Income 3,399 5,385 8,892 - - - Transfer In - - - - - 642,474 Total Revenue 480,683 1,005,055 557,648 - 929,914 642,474 Expenditure Computer Replacement $ 374,178 $ 944,342 $ 323,616 $ - $ 929,914 $ 642,474 Total Expenditure 374,178 944,342 323,616 - 929,914 642,474

Net Change in Fund Balance 106,505 60,713 234,032 - 0 -

Beginning Fund Balance 264,439 370,944 431,657 665,689 665,689 665,689

Ending Fund Balance 370,944 431,657 665,689 665,689 665,689 665,689

Department Function

• The Computer Replacement Fund (Computer Bank) was established to help departments establish a funding source for the replacement of computers and printers to stay abreast with technology, control repair costs, and employee productivity. Each department determines the amount to transfer for computer replacement. Each department may keep a balance in the Computer Bank of up to 50% of total department needs. When determining the value of the department’s needs, the current market price for CPU, monitor, software, keyboard and mouse will be used.

Highlights Computer Rep. Total Operating Expenditures • Keep departments informed of current 1,000,000 market prices and the total amount each 900,000 department can have in the Computer 800,000 Bank. 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 107

Vehicle Maintenance (Fleet)

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 FY 2021 FY 2021 FY 2022 Vehicle Maintenance Revenue Chargeback $ 1,066,770 $ 1,222,346 $ 1,668,187 $ 2,907,200 $ 2,907,200 $ 2,965,100 Miscellaneous 2,085,299 1,728,417 933,299 - - - Interest Income - 24 - - - - Total Revenue 3,152,069 2,950,787 2,601,486 2,907,200 2,907,200 2,965,100 Expenditure & Transfer Out Vehicle Maintenance $ 3,017,956 $ 2,806,957 $ 2,770,755 $ 2,930,438 $ 2,983,277 $ 3,054,395 Transfer Out - - - - - Total Expenditure & Transfer Out 3,017,956 2,806,957 2,770,755 2,930,438 2,983,277 3,054,395

Net Change in Fund Balance 134,113 143,830 (169,269) (23,238) (76,077) (89,295)

Beginning Fund Balance (109,016) 25,097 168,927 (342) (342) (76,419)

Ending Fund Balance 25,097 168,927 (342) (23,580) (76,419) (165,714) Department Function

• The Vehicle Management Fund (Fleet) is responsible for the management and maintenance of the City fleet. The program maintains approximately 733 vehicles and pieces of equipment with the focus on preventive maintenance schedules to reduce downtime and provide safe vehicles and equipment to operate for all our departments. A col- laborative effort with all City departments is made to provide transparency and information on program analysis, cost tracking, customer fulfillment, and maximum quality workmanship.

Highlights Vehicle Maintenance Total Expenditures & Transfers Out

• No significant changes. 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Responsible Government Ensure safety and reliability Preventive Maintenance of all 650+ Fleet Assets Inspections per week 30 30

Provo City Adopted Budget 2021-2022 108

Vehicle Replacement

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Vehicle Replacement FY 2021 FY 2021 FY 2022 Revenue & Transfer In Chargeback $ 3,284,920 $ 3,263,610 $ 3,559,444 $ 5,569,866 $ 5,569,866 $ 5,569,849 Miscellaneous 290,849 1,907,240 789,451 - - - Gain on sale of asset 83,841 - - - - - Interest Income 14,765 27,531 85,568 15,000 15,000 15,000 Bond Proceeds - 2,490,000 - - - - Transfer In 125,000 125,000 125,000 125,000 125,000 125,000 Total Revenue & Transfer In 3,799,374 7,813,381 4,559,463 5,709,866 5,709,866 5,709,849 Expenditure Vehicle Replacement $ 4,703,496 $ 4,616,296 $ 6,028,796 $ 5,159,173 $ 8,626,263 $ 6,261,366 Total Expenditure 4,703,496 4,616,296 6,028,796 5,159,173 8,626,263 6,261,366

Net Change in Fund Balance (904,122) 3,197,085 (1,469,333) 550,693 (2,916,397) (551,517)

Beginning Fund Balance 3,389,763 2,485,641 5,682,726 4,213,393 4,213,393 1,296,997

Ending Fund Balance 2,485,641 5,682,726 4,213,393 4,764,086 1,296,997 745,480

Department Function • The Vehicle Replacement Fund is used to purchase rolling stock for City departments. As vehicles and equipment reach their useful lifecycle they are replaced through this fund. Funds are systematically transferred from City departments into the Vehicle Replacement Fund to ensure that funds are available to replace budgeted replacement vehicles and equipment.

Highlights Vehicle Replacement Total Operating Expenditures

10,000,000 • In FY20, the Fleet Advisory Committee, in collaboration with all City depart- 9,000,000 ments, created a new 5-year fleet re- 8,000,000 placement plan. 7,000,000 • Despite economic uncertainties due to 6,000,000 COVID-19, vehicles scheduled for re- 5,000,000 placement were replaced in FY21. 4,000,000 3,000,000 2,000,000 1,000,000 - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 109

Telecom

Original Budget Adjusted Budget FY Adopted Budget FY Actual FY 2018 Actual FY 2019 Actual FY 2020 Telecom Internal Service FY 2021 2021 2022 Revenue Chargeback $ 300,707 $ 300,707 $ 303,313 $ 303,313 $ 303,313 $ 300,000 Miscellaneous 242,003 273,761 264,682 190,000 190,000 190,000 Total Revenue 542,710 574,468 567,995 493,313 493,313 490,000 Expenditure Telecom Internal Service $ 23,203 $ 43,745 $ 57,025 $ 333,997 $ 333,997 $ 337,243 Transfer Out - - - - - 147,500 Total Expenditure & Transfer Out 23,203 43,745 57,025 333,997 333,997 484,743

Net Change in Fund Balance 519,507 530,723 510,970 159,316 159,316 5,257

Beginning Fund Balance 2,213,935 2,733,442 3,264,165 3,775,136 3,775,136 3,934,452

Ending Fund Balance 2,733,442 3,264,165 3,775,136 3,934,452 3,934,452 3,939,709

Department Function

• The Telecom Internal Service Fund was created at the end of FY 2014 after the sale of the Provo fiber network to Google Fiber. The Telecom Internal Service Fund accounts for maintenance and equipment replacement for the City’s fiber network not maintained by Google Fiber.

Telecom IS Total Operating Expenditures Highlights 1,000,000 • No significant changes. 900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 110

Customer Service

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Customer Service FY 2021 FY 2021 FY 2022 Revenue & Transfer In Chargeback $ 2,853,958 $ 3,333,424 $ 3,791,725 $ 3,421,091 $ 3,421,091 $ 2,988,440 Miscellaneous 53,041 63,805 132,197 105,000 105,000 105,000 Interest Income 1,057 10,210 13,400 5,000 5,000 1,000 Transfer In 101,176 328,358 591,313 75,000 75,000 75,000 Total Revenue & Transfer In 3,009,232 3,735,798 4,528,635 3,606,091 3,606,091 3,169,440 Expenditure & Transfer Out Customer Service Administration $ 791,622 $ 1,543,397 $ 1,800,706 $ 1,410,976 $ 1,298,889 $ 781,364 Billing 881,944 702,337 929,705 883,070 959,204 1,023,507 Customer Service-IT 443,039 309,366 195,527 242,790 242,790 270,772 Call Center 781,131 858,827 939,641 1,051,291 975,156 989,721 Business License 94,930 95,243 110,750 - - - Parking Management - 182,648 273,176 - - Field Services 36,578 - - - - Meter Reader 53,938 4,027 10,373 - - - Transfer Out - - - - 105,000 105,000 Total Expenditure & Transfer Out 3,083,181 3,695,845 4,259,878 3,588,127 3,581,039 3,170,364

Net Change in Fund Balance (73,949) 39,952 268,757 17,964 25,052 (924)

Beginning Fund Balance 556,300 482,351 522,303 791,060 791,060 816,112

Ending Fund Balance 482,351 522,303 791,060 809,024 816,112 815,188

Department Function

• The Customer Service Department was first created as a division of the Mayor’s Office in July of 2012 to provide quality centralized service to residents and businesses of Provo City. In 2017, it became its own department. The Customer Service Department is located in the Provo City Center building and is a 311 Call Center. Services offered by 311 are by phone, walk-ins, and online. Services provided include, utility billing, electronic fingerprinting, airport badging, licensing (animal, bicycle), special events, park reservations, street banner reservations, parking tickets, parking permits, centralized cashier, payments for police reports, general information and reports of city- related problems. Calls handled through the 311 Customer Service division average 98,000 per year. Walk-in traffic average 70,000 per year.

Customer Service Total Operating Expenditures Highlights 5,000,000

• Go-live of new CIS system and web portal 4,500,000 occurred in July 2020 4,000,000 • Modified services for Covid-19 pandemic. 3,500,000

• PCI-compliant for all payment transactions. 3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

- Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 111

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Certified staff for TSA airport badging, official Certified CSR/ Other Safe City 56.86% New 65% notary public, and services federal passport agents. Passports issued 1172* 566* 1700 1500 Increased Customer Community Passport photos 476* 328* New 600 Services Fingerprints 4804* 2510* 5800 5400 Ease of accessing 311 utilization (use of Business and Economic information and doing abreviated dialing 19.00% 22.00% 18.00% 24% Vitality business with the City. num.) Call center average 44 sec 133 sec** 25 sec 30 sec Responsible time to answer Cutomer Service Government Call center abandon 4.00% 9%** 4.00% 4.00% rate Charity and Healthy Inviting Community outreach Customer Service Cares 2 New 8 Environment assistance and promotional events. *Suspended services for a limited time due to Covid-19 ** Increased calls and call duration due to rate increases, new billing software and Covid -19

Provo City Adopted Budget 2021-2022 112

Debt Service Funds

113

Debt Service Funds

Municipalities have the option of funding long-term expenses through debt, often in the form of bonds, leases, and notes payable. Provo has maintained a AAA sales tax bond rating, which has helped the City secure debt, as needed.

• Provo City has issued two types of bonds: general obligation and revenue bonds. General obligation bonds are repaid through property tax levies. Current general obligation bonds include bonds for the Rec Center and the new City Hall/Public Safety Headquarters/Fire Station 2. In contrast, revenue bonds are repaid through a designated revenue source. Currently, Provo’s revenue bonds are for the cemetery, the fiber network, and enterprise-fund- related projects.

• Long-term debt can also be incurred through capital leases. Provo City currently has capital leases for ERP debt (i.e., Provo 360), fire apparatus, and golf course equipment.

• Finally, Provo also has several expenses that are accounted for in notes payable. These expenses are related to the Regional Sports Park and Airport projects. Debt service funds manage principal and interest payment requirements on outstanding obligations. Provo City has three debt service funds—1) Debt Service, 2) Telecom Debt Service, and 3) ERP Debt Service. None of these funds are tied to a specific department. The budgets for these three funds are shown in the tables below:

Debt Service Fund Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Debt Service FY 2021 FY 2021 FY 2022 Revenue Taxes $ 3,723,676 $ 3,697,350 $ 8,511,549 $ 8,511,706 $ 8,511,706 $ 8,307,106 Bond Proceeds 30,076,994 712,386 - - - - Interest Income 27,025 37,117 166,142 18,000 18,000 18,000 Transfer In 169,902 169,902 - 470,065 470,065 469,480 Total Revenue 33,997,597 4,616,755 8,677,691 8,999,771 8,999,771 8,794,586 Expenditure Debt Service $ 33,113,876 $ 4,052,245 $ 8,073,056 $ 8,381,556 $ 8,381,556 $ 8,176,087 Transfer Out 440,000 440,000 440,000 440,000 440,000 440,000 Total Expenditure 33,553,876 4,492,245 8,513,056 8,821,556 8,821,556 8,616,087

Net Change in Fund Balance 443,722 124,510 164,635 178,215 178,215 178,499

Beginning Fund Balance 1,377,235 1,820,957 1,945,466 2,110,101 2,110,101 2,466,531

Ending Fund Balance 1,820,957 1,945,466 2,110,101 2,288,316 2,466,531 2,645,030

Provo City Adopted Budget 2021-2022 114

Telecom Debt Service Fund Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Telecom Debt Service FY 2021 FY 2021 FY 2022 Revenue Interest Income $ 34,804 $ 59,512 $ 52,496 $ 20,000 $ 20,000 $ 20,000 Transfer In 3,250,000 3,250,000 3,382,212 3,250,000 3,250,000 3,250,000 Total Revenue 3,284,804 3,309,512 3,434,708 3,270,000 3,270,000 3,270,000 Expenditure Telecom Debt Service $ 3,219,233 $ 3,220,431 $ 3,223,657 $ 3,218,391 $ 3,218,391 $ 3,221,563 Total Expenditure 3,219,233 3,220,431 3,223,657 3,218,391 3,218,391 3,221,563

Net Change in Fund Balance 65,571 89,081 211,051 51,609 51,609 48,437

Beginning Fund Balance 2,130,766 2,196,337 2,285,418 2,496,469 2,496,469 2,599,687

Ending Fund Balance 2,196,337 2,285,418 2,496,469 2,548,078 2,599,687 2,648,124

ERP Debt Service Fund Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 ERP Debt Service FY 2021 FY 2021 FY 2022 Revenue Interest income $ 28,172 $ 38,746 $ 21,622 $ - $ - $ - Transfer In 1,227,884 1,409,884 1,409,884 2,117,277 2,117,277 2,117,277 Total Revenue & Transfer In 1,227,884 1,409,884 1,409,884 2,117,277 2,117,277 2,117,277 Expenditure & Transfer Out ERP Debt Service $ 850,758 $ 838,418 $ 852,719 $ 879,807 $ 879,807 $ 879,807 Transfer Out 384,226 1,058,921 3,006,707 810,894 810,894 1,235,491 Total Expenditure 1,234,984 1,897,339 3,859,426 1,690,701 1,690,701 2,115,298

Net Change in Fund Balance (7,100) (487,455) (2,449,542) 426,576 426,576 1,979

Beginning Fund Balance 1,814,927 1,807,827 1,320,372 (1,129,170) (1,129,170) (276,018)

Ending Fund Balance 1,807,827 1,320,372 (1,129,170) (702,594) (276,018) (274,039)

Provo City Adopted Budget 2021-2022 115

Current Debt Obligations The tables below show Provo City’s current debt obligations. All info comes from Provo City’s FY 2020 Comprehensive Annual Financial Report, with the exception of the 2020 Capital Lease for Golf Equipment and the 2021 Note Payable for the Airport, both of which have been added to the City’s outstanding debt since the report’s completion.

Outstanding Series Purpose Original Amount Final Maturity Date Balance General Obligation Bonds

2011 Series GO Bond Recreation Center 39,000,000 1/1/2021 - 2017 Series GO Bond (Refunded 2011 Series)Recreation Center Refunding 24,550,000 1/1/2032 24,550,000 Rec Center Bonds Combined Recreation Center 31,690,000 1/1/2032 24,550,000

2019 Series GO Bond City Center and Fire Station 65,930,000 2/1/2039 61,445,000

Year ended June 30, Principal Interest Total 2022 4,155,000 3,536,106 7,691,106 2023 4,295,000 3,393,856 7,688,856 2024 4,415,000 3,271,456 7,686,456 2025 4,640,000 3,050,706 7,690,706 2026 4,870,000 2,818,706 7,688,706 2027-2039 63,620,000 15,708,106 79,328,106

Revenue Bonds

2014 Cemetery Bond Cemetery Expansion 2,334,000 5/1/2034 1,705,000 Telecom 2004 Taxable Series Fiber Network 39,500,000 2/15/2026 13,765,000

Year ended June 30, Principal Interest Total 2022 2,573,000 812,047 3,385,047 2023 2,712,000 674,186 3,386,186 2024 2,857,000 528,855 3,385,855 2025 3,011,000 375,741 3,386,741 2026 3,170,000 214,343 3,384,343 2027-2035 1,147,000 208,554 1,355,554

Combined General Obligation and Revenue Bonds Debt Schedule

Year ended June 30, Principal Interest Total 2022 6,728,000 4,348,153 11,076,153 2023 7,007,000 4,068,042 11,075,042 2024 7,272,000 3,800,311 11,072,311 2025 7,651,000 3,426,447 11,077,447 2026 8,040,000 3,033,049 11,073,049 2027-2035 64,767,000 15,916,660 80,683,660

Provo City Adopted Budget 2021-2022 116

Outstanding Series Purpose Original Amount Final Maturity Date Balance Lease Agreements

2016 Capital Lease - $5,500,000 Provo 360 5,500,000 2/26/2023 1,637,687 2017 Capital Lease - $2,040,000 Fire Apparatus 2,040,000 3/15/2025 1,063,835 2019 Capital Lease - $2,490,000 Fire Apparatus 2,490,000 4/1/2027 1,915,110 2020 Capital Lease - $521,093 Golf Equipment 521,093 6/30/2025 413,165 Total Lease Obligations as of June 30, 2020 5,029,797

Notes Payable

2019 Note Payable - $1,450,000 Regional Sports Park 1,450,000 7/1/2023 869,813 2020 108 Note Payable - $2,500,000 Airport 2,500,000 7/1/2030 2,266,000 2021 Note Payable - $10,149,553 Airport 10,149,553 7/1/2026 10,149,553 Total Lease Obligations as of June 30, 2020 13,285,366

Revenue Bonds - Enterprise Funds

Storm Water District 2010 Series B 3,850,000 6/1/2024 2,065,000 Water 2015 10,775,000 2/1/2035 8,385,000 Wastewater 2015 8,980,000 2/1/2035 6,985,000 Energy 2015 19,550,000 2/1/2035 14,905,000 Sales Tax Revenue Bonds 2017 4,975,000 2/15/2034 4,570,000

Year ended June 30, Principal Interest Total 2022 2,620,000 1,409,473 4,029,473 2023 2,725,000 1,294,872 4,019,872 2024 2,820,000 1,158,623 3,978,623 2025 2,195,000 1,040,997 3,235,997 2026 2,280,000 955,248 3,235,248 2027-2035 24,270,000 4,440,337 28,710,337 36,910,000 10,299,550 47,209,550

Legal Debt Margin The City does not have the final tax valuation for the 2020 tax year, so the 2019 valuation was used to compute the legal debt margin for the City.

Estimated Market Value 10,464,027,000 Total Legal Debt Limit (4% of market value) 418,561,080 99,236,398 06/30/2020 Current General Obligation debt

319,324,682 outstanding* 99,236,398 Legal Debt Margin 319,324,682

*Includes unamortized costs

Current General Obligation debt outstanding Remaining Debt Limit (based on 4% of market value)

Provo City Adopted Budget 2021-2022 117

Bond Ratings Similar to how individuals have credit scores, municipalities receive bond ratings from three agencies . The three agencies are S&P Global, Fitch Ratings, and Moody’s Investors Service. The table below shows Provo City’s bond ratings from one or more of these agencies for individual revenue and general obligation bonds that comprise the City’s debt portfolio.

Bond Ratings Rating Agency Bond S&P Fitch Moody's Energy System Revenue Bonds Series 2015A AA AA- Wastewater Revenue Bonds Series 2015A AA AA- Water Revenue Bonds Series 2015A AA AA General Obligation Series 2011 AA+ General Obligation Refunding Bonds Series 2017 AA+ Aa1 General Obligation Bonds Series 2019 AA+ Aa1 Sales Tax Revenue Bonds 2004 AAA Baa2 Sales Tax Revenue Bonds Series 2017 AAA Stormwater Revenue Bonds Series 2010B Aa3

Provo City Adopted Budget 2021-2022 118

Capital Improvement Plan

119

Capital Expenditures

Every year, the City prepares a five-year capital improvement plan for capital projects over $5,000. The fiscal year 2022 Capital Improvement Plan is available here: https://www.provo.org/departments/finance/financial-reports/-folder- 528#docan4337_9609_696. To understand the policies behind the capital improvement plan and associated funds, please see the “Capital Improve- ment Program and Capital Assets” under the Principals of Financial Management section of this budget document. Included below is an overview of each capital improvement fund—the five-year projection for each fund by project, along with the adjusted FY 2021 budget, and actuals for the previous four years. For further detail on each individual project, please visit the financial reports page at www.provo.org to review the 5-Year CIP report.

Capital Improvement Program Consolidated Budget Plan Prior Fiscal Adjusted Budget Tentative Budget Proposed CIP Funds Years 2017-2020 FY 2021 FY 2022 2023-2026 General CIP General Capital Projects $ 9,723,078 $ 62,993,791 $ 908,029 $ - City Building Projects 8,556,540 - - - B&C Roads 11,059,435 6,554,221 2,840,000 11,360,000 Economic Development 28,705 438,217 - - Engineering 32,426,705 16,351,900 6,185,870 4,700,000 Parks & Rec 7,529,922 13,434,403 9,060,895 15,511,821 Water 19,155,182 14,728,635 37,130,000 34,920,000 Wastewater 38,158,239 32,512,574 35,406,000 100,541,999 Energy Distribution Systems 16,959,401 3,382,105 3,053,238 10,476,450 Transmission Systems 343,295 2,695,061 286,000 1,244,000 Substations 10,519,415 8,047,607 5,329,500 10,278,000 City Projects 2,000,243 630,372 1,230,000 2,570,000.00 SCADA/AMI 48,554 222,449 200,000 1,210,000 Administration 10,893,506 1,830,094 1,541,100 4,954,932 Airport General 15,493,306 58,822,973 - 16,548,000 Public Ramp 7,460,694 1,161,688 - - Utility infrastructure 3,061,811 1,288,922 - - Sanitation 1,004,887 310,433 210,000 720,000 Storm Drain 7,943,672 6,302,885 2,200,000 9,225,000 Utility Transportation 11,153,748 2,773,708 2,140,000 8,560,000 Golf Course 5,439,109 1,822,953 1,593,650 - Total $ 218,959,445 $ 236,304,991 $ 109,314,282 $ 232,820,202 Beginning in FY 2018, Provo City changed financial systems and in doing so, adjusted the methodology for budgeting for capital improvement projects. The new method appropriates funds in capital functions as listed above. Only Energy, General CIP, and the Airport utilize multiple capital functions per fund. Detail for individual projects that comprise these budgeted totals can be found in the Provo City 5-year CIP report published on the City’s website at https://www.provo.org/departments/finance/financial-reports.

Provo City Adopted Budget 2021-2022 120

Significant Non-Recurring Capital Projects—Operating Impact

The majority of the projects included in the total capital appropriations are ongoing infrastructure maintenance projects. The projects listed below are non-routine and most expensive. The Regional Sports Park is expected to have a net $0 impact on operating cost, and the new Public Safety and City Hall facilities will decrease operating costs. Meanwhile, the Lakeview Parkway project, New Reclamation Plant, and Water Treatment Plant will likely increase operating costs to the City upon completion.

Tentative FY Proposed Operating Department Project Funding Source 2022 FY2023-2026 Impact Lakeview Parkway Phase Engineering 4 - Center Street to 620 $ 4,260,870 $ - Grants Increase North

Regional Sports Park Grants, Impact Fees, Net $0 Parks $ 9,100,496 $ 11,800,992 (EPIC 100) & Fund Balance impact

New Reclamation Plant Wastewater $ 28,020,000 $ 27,800,000 State loan Increase Projects

Water Water Treatment Plant $ 30,000,000 $ - Grants Increase

Replace Public Safety and General $ 38,729,726 $ - Bonds Decrease City Hall Buildings

The table below describes the operating impact of each previously mentioned project, except for the Regional Sports Park. Provo City typically does not debt-finance infrastructure projects. As such, most of these projects have operating impacts that place pressure on existing resources but as yet do not require additional operating dollars. With that said, the FY2022 budget has a few new capital projects that are partially or completely funded by debt (i.e., Wastewater’s New Reclamation Plant and the new City Center and Public Safety buildings).

Operating Department Project Operating Budget - Annual Impact Impact Lakeview Parkway Phase This project will construct a new portion of Lakeview Parkway, including a bridge over a Engineering 4 - Center Street to 620 Increase portion of the Provo River. The road and bridge will require $2,000 in annual maintenance North costs beginning 3 years after the project is complete. New Reclamation Plant The new reclamation plant will increase operating costs, but they will be largely offset by Wastewater Increase Projects old plant infrasturcture that is being taken offline. Based on future water needs, the City has decided to construct a water treatment plant to Water Water Treatment Plant Increase treat river water so that it reaches culinary quality. The completed plant is anticipated to increase operating costs by $500,000 annually. This project is replacing the Public Safety (Police, Fire, Dispatch, Emergency Operations) Replace Public Safety and and City Administration buildings. The new facility will be more efficient and provide needed General Decrease City Hall Buildings space for City operations. The average annual decrease in operating expenses is estimated to be $102,500 per year.

For additional details on any of the CIP projects, see the Provo City 5-year CIP report published on the City’s website at https://www.provo.org/departments/finance/financial-reports.

Provo City Adopted Budget 2021-2022 121

Other Information

122

TOP RANKINGS & LOCATION

#2 BEST PERFORMING CITY

(Milken Institute, February 2020)

#2 MOST CONFIDENT CITY IN THE COUNTRY BASED ON WORKFORCE (LinkedIn, October 2020)

#3 BEST-RUN CITY

(WalletHub, July 2020)

TOP 10 CITIES IN THE U.S. TO MOVE TO

(Curbed, February 2020)

TOP 10 CITIES WHERE AMERICANS GIVE MOST TO CHARITY (SmartAsset, November 2020)

#13 MOST EDUCATED CITY IN AMERICA

(WalletHub, July 2020)

123

Demographic Information

Principal Employers

Brigham Young University Utah Valley Regional Med Center Vivint, Inc. Provo City Population Central Utah Medical Clinic Chrysalis Utah, Inc. Qualtrics, LLC 150,000 Frontier Communications Nu Skin International, Inc. 100,000 RBD Acquisition Sub, Inc. UHS of Provo Canyon, Inc. Utah State Hospital 50,000 Arm Security, Inc. Deseret Industries - Health Department 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Heritage Schools, Inc. Micro Focus Software, Inc. NSE Products, Inc. Nu Skin United States Provo City SII Megadiamond, Inc. Solutions Staffing Group, Inc. POPULATION REGISTERED PERCENTAGE of VOTERS HOMEOWNERSHIP Principal Property Taxpayers

Sir Properties Trust 116,618 41,453 39.4% Nu Skin International, Inc. IHC Hospitals Inc. B+F Timpanogas Tech Center, LLC Central Utah Investment Company ADULTS with a CITY Brixton Provo Mall, LLC BACHELOR’S PROVO Duncan Aviation DEGREE or AREA EMPLOYEES (Full-Time Equivalents) Union Pacific Railroad Company HIGHER Questar Gas Timp Campus, LLC 44.19 903 Vista Heights Investments 42.5% SQ. MILES DPRE Riverwoods, LLC Tigriswoods, LLC Utah Community Credit Union Peak Joaquin Holdings LLC PUBLIC NUMBER of Centurylink, Inc. MEDIAN AGE Verizon Communications SCHOOLS PARKS PMH Investors, LLC HRA Branbury Park LLC 22 23.6 54 Miller Family Real Estate Liberty Investors

Provo City Adopted Budget 2021-2022 124

Long Term Planning The City of Provo, incorporated in 1851, is located in a metropolitan area that has a dynamic and diverse economy. The City has a diverse manufacturing and industrial base. Major industries include retail business, light manufacturing, software development, and a university community. This diversity stabilizes the unemployment rate and offers a broad range of employment opportunities.

The City of Provo provides a full range of services that include public safety, streets, recreational and cultural events, community development and general administrative services. The City of Provo also operates energy, water, wastewater, sanitation, municipal golf course, and storm drain utilities. A general aviation airport and a telecom network are also part of the City of Provo. Component units are legally separate entities for which the nature and significance of their relationship with the City of Provo are such that exclusion would cause the financial statements to be misleading or incomplete. Blended component units are included as part of the primary government. Accordingly, Provo City Redevel- opment Agency is reported as special revenue fund and the Provo City Storm Water Service District as an enterprise fund.

The Administration and Municipal Council has worked hard to submit a responsible, sustainable budget. The City is closely monitoring the current economic environment. As the City plans for the future, we are being very cautious to align the commitment of City resources with the anticipated revenues for the City. We continue to focus on the results that matter to citizens, prioritize and improve levels of service, and find cost effective and innovative options for service delivery.

The City undertook an in-depth and detailed look at the budgeting process for Fiscal Year 2022. Administration began reviewing preliminary budget projections in January of 2021 in preparation for the FY 2022 budget.

The Administration includes a 10-year model that provides the Adopted budget for Fiscal Year 2022, with a nine-year look forward. This 10-year model currently reflects revenues, transfers in, expenses and transfers out for the General Fund.

The spreadsheet has been designed with numerous assumptions in mind, with the capability of changing them as needed for analysis. The major assumptions included for Fiscal Year 2022 is the following: 2.5% merit increases, health insurance increase of 4.1%, 401K match of 2%, a 10% wastewater utility increase, and a 5% water utility increase.

The spreadsheet is dynamic with the option to change the assumptions provided and add additional items. Other assumptions available in the spreadsheet are: changes to revenues and current transfers in, other utility rate increases, increases to operations, capital, vehicle replacement, and transfers out to other departments.

Provo City Adopted Budget 2021-2022 125

For the Fiscal 2023 and budget years forward, the following assumptions have been made, with Fiscal 2022 being the base: • Payroll Funding— 2.5% increase going forward • Defined Contribution Retirement— 1.0% increase going forward • Insurance— 5.0% increase going forward • Property Tax— 2.0% increase going forward due to growth • Sales and Use Tax— 2.5% increase going forward • Franchise Tax— 1.0% increase going forward • Lodging Tax— 50% increase in 2023, 1.5% increase going forward • Community & Neighborhood Services and Development Services Fees— 2.0% increase going forward • Parks & Recreation Fees— 2.0% increase going forward • Public Safety Fees, Ambulance Charges, Internal Service Chargebacks, and Interest Income — 1% increase going forward • Utility Sales—1.25% increase going forward based on growth • Population—1.25% increase going forward • Utility Rates— Adopted increases through FY 2022 and then projections provided by departments thereafter • Operations—1% increase going forward

Provo City Per Capita Revenue vs Expense for FY22 - FY31 $700

$600

$500

$400

$300

$200

$100

$000 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Proposed Total Revenue & Transfers in Total Exp & Transfers out

Provo City Adopted Budget 2021-2022 126

Provo City General Fund Projection (Thousands of Dollars) 2022 Proposed 2023 2024 2025 2026 2027 2028 2029 2030 2031 Revenues: Current Property Tax $ 5,550 $ 5,661 $ 5,774 $ 5,890 $ 6,007 $ 6,128 $ 6,250 $ 6,375 $ 6,503 $ 6,633 Vehicle Taxes 350 350 350 350 350 350 350 350 350 350 Sales and Use Taxes 23,843 24,440 25,051 25,677 26,319 26,977 27,651 28,342 29,051 29,777 RAP Tax 1,634 1,674 1,716 1,759 1,803 1,848 1,894 1,942 1,990 2,040 Franchise Taxes 10,848 10,956 11,066 11,177 11,288 11,401 11,515 11,631 11,747 11,864 Lodging Tax 300 450 457 464 471 478 485 492 499 507 Parks & Recreation 6,151 6,274 6,399 6,527 6,658 6,791 6,927 7,065 7,207 7,351 Business Licenses 500 500 500 500 500 500 500 500 500 500 Road Projects 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Community Development Fees 2,733 2,787 2,843 2,900 2,958 3,017 3,077 3,139 3,202 3,266 Public Safety 50 51 51 52 52 53 53 54 54 55 Fire 1,730 1,747 1,765 1,782 1,800 1,818 1,836 1,855 1,873 1,892 Interest Income 80 81 82 82 83 84 85 86 87 87 Intergovernmental 693 482 482 482 482 482 482 482 482 482 Misc. 1,418 1,418 1,418 1,418 1,418 1,418 1,418 1,418 1,418 1,418 Total Revenue 59,880 60,871 61,954 63,060 64,189 65,345 66,523 67,731 68,963 70,222

Transfers in: Transfer from ERP Debt Service 435 ------Transfer from Engineering CIP 50 50 50 50 50 50 50 50 50 50 Transfers (Utilities) Transfer from Water 1,749 1,860 1,977 2,102 2,235 2,376 2,526 2,685 2,855 3,035 Transfer from Wastewater 2,557 2,822 2,929 3,039 3,154 3,273 3,397 3,526 3,659 3,797 Transfer from Energy 7,494 7,739 7,992 8,254 8,525 8,804 9,092 9,390 9,697 10,015 Transfer from Sanitation 674 682 691 699 708 717 726 735 744 753 Transfer from Storm Drain 624 632 640 648 656 664 673 681 689 698 Total Transfers in 13,583 13,785 14,279 14,792 15,328 15,884 16,464 17,067 17,694 18,348 Total Revenue & Transfers in 73,463 74,656 76,233 77,852 79,517 81,229 82,987 84,798 86,657 88,570

Expenditures: Personnel 33,692 34,535 35,398 36,283 37,190 38,120 39,073 40,050 41,051 42,077 Insurance 8,510 8,936 9,383 9,852 10,344 10,862 11,405 11,975 12,574 13,202 Retirement 7,126 7,197 7,269 7,342 7,415 7,489 7,564 7,640 7,716 7,793 Operations 15,549 15,693 15,850 16,008 16,168 16,330 16,493 16,658 16,825 16,993 Total Expenditures 64,877 66,361 67,900 69,485 71,117 72,801 74,535 76,323 78,166 80,065

Transfers out: Transfer to Arts Council 396 396 396 396 396 396 396 396 396 396 Transfer to Customer Service 75 75 75 75 75 75 75 75 75 75 Transfer to Justice Court 110 110 110 110 110 110 110 110 110 110 Transfer to ERP Debt Service 803 ------Transfer to General CIP 108 51 51 51 51 51 51 51 51 51 Transfer to Parks & Recreation CIP 1,634 1,674 1,716 1,759 1,803 1,848 1,894 1,942 1,990 2,040 Transfer to Road CIP 2,951 3,074 3,196 3,319 3,441 3,564 3,686 3,809 3,931 4,054 Transfer to Airport 207 207 207 207 207 207 207 207 207 207 Total Transfers out 8,585 7,932 8,143 8,355 8,569 8,786 9,006 9,227 9,451 9,678 Total Exp & Transfers out 73,462 74,293 76,043 77,840 79,686 81,587 83,541 85,550 87,617 89,743 Operating Surplus (Deficit) $ 1 $ 363 $ 191 $ 13 $ (170) $ (358) $ (552) $ (752) $ (959) $ (1,173)

Beginning Fund Balance $ 14,710 $ 14,710 $ 15,073 $ 15,264 $ 15,277 $ 15,107 $ 14,749 $ 14,197 $ 13,444 $ 12,485

Ending Fund Balance $ 14,710 $ 15,073 $ 15,264 $ 15,277 $ 15,107 $ 14,749 $ 14,197 $ 13,444 $ 12,485 $ 11,312

Revenue vs. Expenditures 2022-2031 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000

50,000,000 Total Revenue & Transfers in

40,000,000 Total Exp & Transfers out 30,000,000 20,000,000 10,000,000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Proposed Provo City Adopted Budget 2021-2022 127

Principles of Financial Management

This fiscal policy is a statement of the guidelines and goals that will influence and guide the financial management practices for the City of Provo. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the corner- stone of sound financial management. The fiscal year 2022 budget complies with the financial polices described below.

Effective fiscal policies: 1. Contribute significantly to the City’s ability to insulate itself from fiscal crisis. 2. Enhances short-term and long-term financial credit ability by helping to achieve the highest possible credit and bond ratings. 3. Promotes long-term financial stability by establishing clear and consistent guidelines. 4. Directs attention to the total financial picture of the City rather than single issue areas. 5. Promotes the view of linking long-term financial planning with day-to-day operations. 6. Provides the Municipal Council and citizens with a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines.

Following these principles will enhance the City’s image and credibility with the public, credit rating agencies, and investors. Many people and businesses who deal with the City (including the rating agencies) take comfort knowing the City adheres to established guiding financial policies.

Policy changes may be needed as the City and its citizen base grow and becomes more diverse and complex. It is important to regularly engage in the process of financial planning including reaffirming and updating these financial guidelines. To these ends, the following fiscal policy statements are presented.

Fund Balance

Fund Balance is the difference between assets and liabilities reported in governmental funds. It is used to measure the net financial resources available to finance future expenditures. The Governmental Accounting Standards Board specifies the classification of fund balance. The components include: 1) non-spendable, 2) restricted, 3) committed, 4) assigned, and 5) unassigned. A definition of these components can be found in the Appendix. These classifications are currently only used in the Governmental Fund types. Municipalities may accumulate fund balances in any fund. However Utah Code 10-6-116 states the General Fund balance amount must be within the following limits: 5% of total revenues must be maintained as a minimum fund balance, and the accumulation shall not exceed 25% of the total estimated revenue of the General Fund. The fund balance percentage will be calculated using the Utah State Auditors guidelines. The fund balance policy focuses on the assigned and unassigned components of fund balance. Fund balance in excess of 25% should be used to 1) fund one-time expenditures in the current year, 2) prepay existing City debt, or 3) transfer to a capital project fund to be used for capital expenditures.

Governmental Funds General Fund 1. The General Fund is the primary fund for the City. This fund is used to account for all financial resources not accounted for in other funds. 2. The desired unassigned fund balances at the close of each fiscal year should be between 20-25% of the total budgeted revenues for the following fiscal year. 3. The City’s unassigned fund balance will be maintained to provide the City with sufficient working capital and a margin of safety to address local and regional emergencies without borrowing. 4. In the event of a declared fiscal emergency or other such global purpose as to protect the long-term fiscal security of the City there may be a need to appropriate unassigned fund balance below the 20% policy level. In such circumstances, the City will:

Provo City Adopted Budget 2021-2022 128

a. Take measures necessary to prevent its use in the following fiscal year by increasing fees or taxes and/or decreasing expenditures. b. Adopt a plan to restore the available fund balances to the policy level within 36 months from the date of the appropriation. If restoration cannot be accomplished within such time period without severe hardship to the City, then the Municipal Council will establish a different but appropriate time period. 5. The unassigned fund balance should not be used to support recurring operating expenditures. 6. The annual budgets for all City funds will be structurally balanced throughout the budget process. Recurring revenue will equal or exceed recurring expenditures in both the Adopted and Adopted Budgets. If a structural imbalance oc- curs, a plan will be developed and implemented to bring the budget back into balance. 7. The unassigned fund balance can only be appropriated by Municipal Council resolution. Other Governmental Funds 1. Special Revenue Funds - used by the City to account for revenues derived from specific taxes, licenses and intergovernmental grants which are designated to finance particular functions or activities in the City. 2. Debt Service Funds - used to account for the accumulation of resources for the payment of general obligation bonds and for the accumulation of special assessments for the payment of special improvement bonds. 3. Capital Project Funds - used to account for resources designated to construct governmental capital assets which may require more than one fiscal year for completion. Proprietary Funds Enterprise Funds 1. Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. Each individual Enterprise Fund has a capital improvement fund associated with it. 2. The existing enterprise funds account for construction; operation; maintenance; related debt; and property, plant and equipment within each fund. 3. Airport, Energy, Golf Course, Sanitation, Storm Drain, Water, Wastewater, Utility Transportation are classified as Enterprise Funds. 4. The desired fund balance at the close of each fiscal year should be 25% of the operating revenues for the following fiscal year. Internal Service Funds 1. Internal Service Funds are used to account for the financing of services provided by one department to other departments with the City. 2. Customer Service, Employee Benefits, Insurance/Claims, Fleet Management, Vehicle Replacement, Capital Re- sources, Facility Services, and Computer Replacement, Telecom are classified as Internal Service Funds. 3. The desired fund balance for each fund at the close of each fiscal year should be as listed: a. Customer Service - $50,000 with excess being returned to contributing departments. b. Employee Benefits - $2 Million with excess being returned to contributing departments. c. Insurance/Claims – $1.5 Million minimum with a maximum of $3 Million with excess being returned to contributing departments. d. Fleet Management - $200,000 with excess being returned to contributing departments. e. Facility Services - $100,000 with excess being transferred to the General Capital Improvement Fund. f. Computer Replacement – no limit. Departments are allowed to accumulate up to ½ of their computer replacement needs in this fund. g. Telecom – no limit. Fund balance will be used to provide a network that meets City needs. Any excess fund balance will be maintained to provide funding for bond payments at the end of the term so the telecom debt service fee may be eliminated early.

Provo City Adopted Budget 2021-2022 129

Capital Improvement Program and Capital Assets Provo City defines a capital asset as tangible property of a more or less permanent nature with a useful life of at least three years, and costing at least $5,000. Most capital expenditures for the City are in the Capital Improvement Funds and the Equipment Replacement Fund, with some minor capital purchases made in the other operating funds. The City’s assets are held primarily in the form of infrastructure, physical assets, or capital plants such as roads, buildings, and equipment. Sound infrastructure is an important aspect of the quality of life, economic development, and the credit quality of the City. Dedicating resources to capital investment is appropriate for a growing City such as the City of Provo. Committing to and implementing the City’s capital investment program will protect its capital assets and minimize future maintenance and replacement costs. Capital Improvement Plan 1) The City will direct its annual allocation for its capital investments to projects which best support the City’s strategic goals, the comprehensive plan and facility master plans. The City will consider all capital improvements in accordance with an adopted capital improvement plan. 2) The City will maintain a five-year plan for capital improvements and review and update the plan annually. The Mayor will submit the Capital Improvement Plan for review by the Municipal Council each year. Submission of the Capital Improvement Plan shall be consistent with State of Utah and City of Provo legal requirements. 3) The Capital Improvement Plan may include capital improvements for all funds and agencies for which the City sets tax rates, makes levies or approves budgets or plans. 4) The Capital Improvement Plan shall include the following elements: a) An implementation plan for each of the capital improvements b) A statement of the objectives of the Capital Improvement Plan and the relationship with the comprehensive plan and the City’s strategic plan c) An estimate of the cost and of the anticipated sources of revenue for financing the capital improvements, and an estimate of the impact of each capital improvement on City revenues and the capital and operating budget, including estimated debt service costs, if applicable. 5) The City will fund projects and activities identified in the Capital Improvement Plan with the most appropriate revenue sources. Such revenues as impact fee revenue, utility rate revenue, B&C-Road revenue, state and federal grant revenues, and transfers of unrestricted cash from governmental funds. 6) The City will return remaining appropriated funds upon the completion of any capital project to the most appropriate capital reserve. 7) The City will project its equipment replacement needs as part of the capital improvement process. From this projection, a replacement schedule will be developed and followed. The City will maintain a schedule of capital fixed assets in its fixed asset accounting system. Capital Improvement Budget Policies 1) The City will enact an annual capital budget based on the five-year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development, or changes in economic base will be included in capital budget projections. 2) The City will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts. 3) The City will maintain all its assets at a level adequate to protect the City’s capital investment and to minimize future maintenance and replacement costs. 4) The City will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval.

Provo City Adopted Budget 2021-2022 130

5) When current revenues or resources are available for capital improvement projects, consideration will be given first to those capital assets with the shortest useful life and/or to those capital assets whose nature makes them compar- atively more difficult to finance with bonds or lease financing. 6) Nonrecurring revenues, which cannot be used to fund recurring costs and are not required to meet the Unassigned Fund Balance objectives in the City’s policy on Fund Balance, should be used for nonrecurring capital expenditures or the early retirement of existing City debt. 7) The City will attempt to determine the least costly and most flexible financing method for all new projects. Financing may include debt financing or “pay as you go” or other financing sources.

Recreation Facilities Capital Fund In the past (except for the Fiscal Year 2021 budget), Provo City has provided regular capital replacement funding for the Recreation Center – approximately $400,000 each year. During discussions on the Fiscal Year 2022 budget, the Parks and Recreation department and the Administration agreed to propose a new funding model. Currently the Parks and Recreation Department sells the Triple Play season pass that provides access to amenities at the Recreation Center, Peaks Ice Arena, and the Timpanogos Golf Club. To meet the capital needs of these three facilities, beginning in fiscal 2022, a funding mechanism will be established in a new fund which will be called the Recreation Facilities Capital Fund. Each year after the completion of the fiscal year, revenues will be compared with expenses at the Recreation Center to determine net income. The general fund will contribute to the Recreation Capital Fund the first $400,000 of net income. If net income for the recreation center exceeds $400,000, the general fund will contribute half of the amount that exceeds $400,000 to the Recreation Capital Fund, the other half will fall to general fund balance. If fund balance at the Peaks Ice Arena or the Timpanogos Golf Club exceeds 25% of revenues, a transfer of the excess will be made to the Recreation Capital Fund.

Fiscal Planning and Budgeting

The budget is one of the most important documents the City prepares since it identifies the services to be provided and how the services are to be financed. Budget Process

1. The Mayor shall provide annually a Budget Preparation Schedule outlining the preparation timelines for the Adopted budget. 2. Budget packages for the preparation of the budget, including forms and instructions, shall be distributed to City departments to complete. Departments shall prepare and return their budget proposals to the City Budget Officer as required in the Budget Preparation Schedule. 3. The budget that will be submitted by the Administration shall be submitted to the Municipal Council on the first Tues- day in May and will be in compliance with state and City legal requirements. 4. The Municipal Council will budget revenues and expenditures on the basis of a fiscal year which begins July 1 and ends on the following June 30. 5. The City Budget Staff will prepare a budget in accordance with the guidelines established by the Government Fi- nance Officers Association in its Distinguished Budget Award Program. 6. The annual fiscal plan will contain the following:

a. Revenue estimates by major category b. Expenditure estimates by program levels and major expenditure categories c. Debt service summarized by issues detailing principal and interest amounts by fund d. Adopted personnel staffing level e. A detailed schedule of capital projects f. Overhead charges allocation methodologies are designed and used to reasonably allocate the cost of internal service fund expenses to line departments; charge for service formulas should be calculated to fairly al-

Provo City Adopted Budget 2021-2022 131

locate these internal services costs among line departments and functions. g. Any additional information, data, or analysis requested of management by the Municipal Council 7. The Municipal Council will adopt the budget no later than June 30; if a Truth in Taxation hearing is necessary adoption must take place before September 1.

Budget Policies 1. The City will fund current expenditures with current revenues and other resources. 2. The encumbered balances (open purchase orders) will be considered for re-appropriation in the subsequent fiscal year with approval from the Mayor. 3. By City ordinance, funds appropriated for multi-year capital projects will be automatically re-appropriated for the same project in subsequent years until the project is complete. 4. The City will not use debt to fund current operations. 5. The City will maintain a Capital Asset Replacement Schedule which provides a five-year estimate of the funds necessary to maintain and replace the City’s capital assets. The Capital Asset Replacement Schedule will be updated as part of the Capital Improvement Program planning process. 6. If a deficit is projected during any fiscal year, the City will take steps to reduce expenditures, increase revenues or, if a deficit is caused by an emergency, consider using fund balance, to the extent necessary to ensure a balanced budget at the close of the fiscal year. 7. The Mayor may institute a cessation during the fiscal year on hiring, promotions, transfers, and capital equipment purchases. Such action will not be used arbitrarily and without knowledge and support of the Municipal Council and will allow for exceptions in appropriate areas to comply with emergency needs such as a loss or decline in a major revenue source or natural disaster.

8. Unspent budget may be considered for re-appropriation in the subsequent fiscal year with approval from the Mayor.

Performance and Measurement

1. Budgeting procedures will attempt to identify distinct functions and activities and to allocate budget resources to perform these functions and activities as required. 2. Alternatives for improving the efficiency and effectiveness of the City’s programs and the productivity of its employees will be considered during the budget process. 3. Duplication of services and inefficiency in delivery should be eliminated wherever identified. The City will continue to examine alternative service delivery options for all City functions. 4. Performance measurement and productivity indicators will be integrated into the budget process as appropriate. 5. A quarterly report on the status of the General Fund and other major funds will be presented to the Municipal Coun- cil within 75 days of the end of each quarter. This report will include a forecast of revenues. 6. Department directors and division heads are required to monitor revenues and control expenditures to prevent exceeding the amount of their total departmental expenditure budget. 7. Annually the Mayor shall submit to the Municipal Council a General Fund Ten-Year Budget Forecast, including revenue and expenditure projections.

Revenues

The City collects revenues from many sources to provide services and meet operational needs. The largest revenue sources are sales taxes, franchise fees and user fees. The structure, fluctuation, and collection of revenues are exam- ined by rating agencies to determine the City’s credit quality.

1. The City will strive to maintain a diversified and stable revenue system to shelter it from short-term fluctuations in any one revenue source. 2. Major revenue sources should provide for the following principles: a. Revenue sources should provide appropriate treatment of taxpayers at different economic levels. b. Revenue sources should treat taxpayers equally regardless of income or wealth. Provo City Adopted Budget 2021-2022 132

c. Revenue sources should not unduly influence economic decisions by consumers or business except for targeted development or redevelopment programs approved by the Municipal Council. d. Revenue administration and enforcement should not absorb an undue percentage of revenue collected. 3. The City will periodically recalculate the full costs of providing services in order to provide a basis for setting the associated service charge or fee. Full cost shall incorporate direct and indirect costs, including operations and maintenance, overhead, and charges for use of capital facilities, thereby setting fees at a level that is related to the cost of producing the good or service, unless otherwise restricted by law. The City will periodically examine current competitive rates and establish new charges and fees as needed and as permitted by law. It is recognized that occasionally competing policy objectives may result in user fee levels that recover only a portion of service costs. 4. The Mayor will provide the Municipal Council with an estimate of the City’s revenues annually. 5. The City will pursue intergovernmental aid, including grants, for those programs and activities that address a recognized need and are consistent with the City’s long-range objectives, and will attempt to recover all allowable costs associated with those programs. 6. Before accepting grant funds, the following will be reviewed: a. Present and future funding requirements. b. Cost of administering the funds. c. Matching funds and requirements to retain positions beyond the grant period. d. Costs associated with the special conditions or regulations attached to the grant award. 7. When grants are reduced or eliminated, the plan or project it supported will be reduced by a commensurate amount. 8. For an overview of revenues collected see the Appendix in this document, for detail of all fees collected see the Consolidated Fee Schedule at http://www.codepublishing.com/ut/provo/.

Transfers

The City uses the transfer from the enterprise utility funds to the General Fund as a dividend to the taxpayers of Provo for their initial investment in establishing these enterprise funds (return on investment) and in the risk undertaken by the taxpayers in creating these utilities. Investor owned utilities provide a similar return to their investors and allowing such returns has been a long established practice in rate setting. 1. Transfers from a. Enterprise utility funds provide a transfer of 11% of utility sales to the General Fund each fiscal year. b. Additional transfers may be approved by the Municipal Council but should not be considered a long-term revenue source for the General Fund c. The Justice Court collects fines from traffic, parking and criminal cases. The fines are collected to recover a portion of the costs incurred by the Police and Legal Departments. As a result, a transfer is made to the General Fund after expenses are covered during the fiscal year. 2. Transfer to a. The General Fund provides transfers to various departments for debt service, lease payments and operating subsidies. b. Current funds receiving an annual subsidy from the General Fund are: Airport, Airport Capital Improvement Fund, Golf Course, Peaks Ice Area, and Covey Center for the Arts.

Other Budget Information

All City budgets are included in this budget book, with the exception of the Storm Water Service District and the Provo Redevelopment Agency. Those budgets are approved separately by the governing boards of those entities. The budgets are included in the Appendix at the end of this book.

Additional Principles of Financial Management Cash management is the practice of safeguarding and maximizing the income earned on liquid assets. Cash, liquidity, and investment management activities shall be conducted prudently. The City shall maintain adequate management procedures, controls, and policies for the City’s liquid assets.

Provo City Adopted Budget 2021-2022 133

1) The City Treasurer shall invest all funds of the City according to four criteria, in order of their importance: (1) legality, (2) safety (3) liquidity, (4) yield. 2) The City shall comply with all requirements of the Utah Money Management Act (Utah Code, Title 51) and rules of the State Money Management Council or other legal requirements regarding the management of cash. The City maintains a written Investment Policy approved by the Council. 3) The City will collect, deposit and disburse all funds on a schedule which ensures optimum cash availability. 4) All City bank accounts shall be reconciled and reviewed on a timely basis. 5) Investment performance will be measured using standard indices specified in the City’s written investment policy. 6) The City will optimize the amount of funds available for investment by rapid collection of money owed to the City. Cash invested shall at a minimum equal 100% of total bank cash balances. 7) The City Treasurer shall provide to the State Money Management Council with a bi-annual report that includes state pool and bond balances. 8) The City will conduct its treasury activities with financial institutions based upon written contracts. Personnel Personnel costs are the most significant portion of the City’s operating budget. 1) City personnel are required adhere to legal, moral, ethical, and professional standards of conduct in the fulfillment of their professional responsibilities. 2) The City shall maintain written personnel policies in accordance with City, state and federal laws. 3) The City shall have an employee compensation policy to provide competitive salaries to other similarly functioning cities and counties enabling the City to compete for and retain high quality employees. A yearly market study will be prepared by the Human Resources Division. Internal Control and Financial Reporting Internal control or the system of internal controls is the integration of activities, plans, attitudes, policies, and efforts of the people in an organization working together to provide reasonable assurance that the organization will achieve its goals and objectives. Financial reporting provides the informational infrastructure for the City. 1) The City will maintain a system of internal controls in order to maintain accountability to the citizens of the City and the City Council; meet established goals and objectives; promote adherence to laws and regulations; encourage sound financial and operational practices; develop and maintain accurate, reliable and timely financial and management data; safeguard assets/resources and prevent, detect and deter fraud. 2) The City will comply with Generally Accepted Accounting Principles (GAAP) in its accounting and financial reporting as contained in the following publications: a) Codification and Pronouncements of Governmental Accounting and Financial Reporting Standards, issued by the Governmental Accounting Standards Council (GASB) b) Codification and Pronouncements of Accounting and Financial Reporting Standards, issued by the Financial Ac- counting Standards Council, (FASB) c) Governmental Accounting, Auditing, and Financial Reporting (GAAFR), issued by the Government Finance Offic- ers Association (GFOA) of the United States and Canada. The City will prepare its comprehensive annual financial report in compliance with the GFOA’s Certificate of Achievement for Excellence in Financial Reporting Plan. d) Uniform Accounting Manual for Utah Cities, issued by the Utah State Auditor’s Office. The City’s comprehensive annual financial report will be issued by December 30 of each year for the preceding fiscal year to the State Au- ditor’s Office and to the City Council as required by the Utah Code. e) State and Local Governments – Audit and Accounting Guide, an industry guide published by the American Insti- tute of Certified Public Accounts (AICPA) f) Government Accounting Standards, issued by the Comptroller General of the United States. g) The City will contract for a comprehensive financial audit, including an audit of federal grants in accordance with U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non- Profit Organizations, to be performed annually by an independent external auditor (public accounting firm). The independent external auditor will express an opinion on the City’s Financial Statements. a. The City will prepare a Comprehensive Annual Financial Report (CAFR), Popular Annual Financial Report (PAFR) and a Single Audit Report each year after the completion of the annual financial audit.

Provo City Adopted Budget 2021-2022 134

3) The City Council Chair and Vice Chair (or other Councilors as appointed) will act as the “Audit Committee” to govern and provide oversight of the City’s internal control environment. The Council Audit Committee will coordinate activities between the independent external auditor(s) and Finance Division staff in connection with the annual comprehensive financial audit and other internal and external audits. 4) Quarterly financial data will be made available electronically to the City Council and department directors allowing them to review key financial data.

Risk Management

Risk Management functions to protect City resources such as employees, buildings, equipment, vehicles, and financial assets. The City will manage its risk and limit risk exposure in a professional and prudent manner. 1) The City shall make diligent efforts to protect and preserve City assets against losses that could deplete City resources or impair the City’s ability to provide services to its citizens. The City shall reduce its exposure to liability through training, safety, risk financing and the transfer of risk when cost effective. 2) The City shall manage its exposure to risk through the most appropriate means of self-insurance and/or the purchase of traditional insurance in the following areas: a) General liability b) Automobile liability c) Public officials’ errors and omissions d) Police professional liability e) Property loss and workers’ compensation 3) The City will further control its exposure to risk through the use of hold harmless agreements in City contracts and by requiring contractors to carry liability insurance. Procurement

1) Procurement authorizes contracts using monetary assets of the City to purchase products and services. All ac- quisitions must be performed in accordance with applicable laws and regulations. 2) The City will endeavor to obtain supplies, equipment and services as economically as possible. 3) The City will establish purchasing guidelines consistent with all applicable state and federal laws. 4) The City will maintain a purchasing system which provides needed services and materials in a timely manner to avoid interruptions in the delivery of services. 5) The City shall encourage full and open competition on all purchases and sales. Procurement shall be based upon competitive bidding with formal bids whenever possible. 6) It is the policy of Provo City, when replacing automobiles and other fleet vehicles, to purchase electric and other alternative fuel vehicles rather than standard gasoline or diesel vehicles, where not imprudent; and for the Ad- ministration to report to the Municipal Council annually on the application of this policy. Economic Development The City’s economic base is an important element and has a dramatic influence on the City’s financial health in determining the City’s quality of life and credit rating. 1) The City shall continue to expand and diversify its economic base by attracting industrial and commercial firms to the City. Special emphasis should be given to industrial and commercial enterprises that will employ the local labor force and generate sales tax revenues. Such business and industry will be in accordance with the plans and ordinances of the City. 2) The City will endeavor to utilize a network of public facilities that link planned industrial and commercial areas with its growing residential areas. 3) The City will endeavor to increase, to the greatest degree possible, its commercial/industrial tax base and place professional employment within the City. 4) The City will perform a due diligence analysis of each economic development investment to evaluate the level of each type of risk associated with the economic development investment. The due diligence evaluation shall be presented to the City Council along with the economic development investment.

Provo City Adopted Budget 2021-2022 135

5) The City will perform a fiscal impact analysis on each economic development investment that evaluates the economic costs, economic benefits, intrinsic benefits and the levels of each type of risk associated with the economic development investment.

Debt Service Information Financial Policy The City will maintain a high credit rating in the financial community to: 1) assure the City’s taxpayers that the City government is well managed and financially sound; 2) obtain reduced borrowing costs. The City will utilize a balanced ap- proach to capital funding utilizing debt financing, draws on capital reserves and/or fund balances in excess of policy tar- gets, and current-year (pay-as-you-go) appropriations. General Policies 1) The City will consider the project and its useful life and utilize the most appropriate method to finance the project. 2) The City will not use debt financing to fund current operations. 3) The City will confine long-term borrowing to capital improvement or projects that cannot be financed from current revenues except where approved justification is provided. 4) Reserve funds, when required, will be provided to adequately meet debt service requirements in the subsequent years. 5) The term of any bond or lease obligation issue will not exceed 20 years or the useful life of the capital project or equipment for which the borrowing is intended. 6) The City shall comply with federal, state and City legal requirements regarding the issuance of bonds and certificates of the City or its debt issuing authorities.

Debt Levels/Ratios 1) Debt ratios will be calculated annually and included in the Statistical Section of the Comprehensive Annual Financial Report. 2) Direct net debt is defined as any and all debt that is tax-supported. This ratio will be measured annually. Direct net debt as a percentage of estimated market value of taxable property should not exceed 4%. 3) The City recognizes the importance of underlying and overlapping debt in analyzing financial condition. The City will regularly analyze total indebtedness including underlying and overlapping debt. Interfund Loans The City uses a Capital Resource Fund to facilitate inter-fund loans. This mechanism lends monies from funds that have excess fund balance and loans it other funds to make purchases for land, equipment, or for infrastructure improvements in the City. Loans should not be made unless there is a clear source of funding, based on a competitive market interest rate and terms should not exceed 7 years. Loan approvals require Municipal Council approval. Bond Categories Where feasible, the City will explore the usage of special assessment, revenue, or other self-supporting bonds instead of general obligation bonds. Tax-Supported/Tax Exempt Bonds 1) Whenever the City finds it necessary to issue tax supported bonds, the following policy will be adhered to: a) Tax supported bonds will, whenever feasible, be issued on a competitive basis unless market conditions fa- vor negotiated sales. b) Average weighted maturities for general obligation bonds of the City, and whenever possible for any type of annual appropriation debt, will be maintained at twenty years or less. 2) General obligation bond issues, and whenever possible for any type of annual appropriation debt, will be structured

Provo City Adopted Budget 2021-2022 136

to allow an equal principal amount to be retired each year over the life of the issue thereby producing a total debt service with an annual declining balance. 3) The City shall comply with the following tax compliance policies for Tax-Exempt Governmental Bonds: a) Purpose. Issuers of tax-exempt “governmental bonds” must comply with federal tax rules pertaining to expenditure of proceeds for qualified costs, rate of expenditures, use of bond-financed property, investment of proceeds in compliance with arbitrage rules, and retention of record all U.S. Internal Revenue Service rules and regulations regarding issuance of tax exempt governmental bond debt including arbitrage rebate requirements for bonded indebtedness, and with all Securities and Exchange Commission requirements for continuing disclosure of the City’s financial condition, and with all applicable Municipal Securities Rulemak- ing Council requirements. Revenue Bonds 1) The City will adhere to the following guidelines when it finds it necessary to issue revenue bonds: a) For any bonds or lease anticipation or appropriation debt in which the debt service is partially paid from revenue generated by the project and partially paid from tax sources, the portion of the bond or lease to the extent that its debt service is paid from non-tax sources shall be deemed to be revenue bonds and is excluded from the calculation of the annual debt service limitation in. b) Revenue bonds of the City and any of its agencies will be analyzed carefully by the Finance Division for fiscal soundness. The issuance of City revenue bonds will be subject to the most careful review and must be secured by covenants sufficient to protect the bondholders and the credibility of the City. 2) Revenue bonds will, whenever feasible, be issued on a competitive basis and will be structured to allow an approximately equal annual debt service amount over the life of the issue.

Tax Anticipation Notes The City will only issue tax anticipation debt due to unforeseen circumstances and where cash flow projections identify an absolute need, and will retire any such tax anticipation debt annually. Bond anticipation debt will be retired within six months after completion of the project or upon availability of permanent financing. Variable Interest Debt The issuance of variable rate debt by the City will be subject to the most careful review and will be issued only in a prudent and fiscally responsible manner. Current Debt Service The City has three debt service funds: Debt Service, Provo 360 Debt Service, and Telecom Debt Service. Impact of Debt on Operations There is little direct impact of the City’s current debt on day-to-day operations. The main reason for this is that the City levies taxes to meet its long-term bond obligations. The capital leases that the City is currently paying are coming from the General Fund. The City’s policy is to not issue debt for general operations of the City. Mountain Vista Provo City has invested in the Mountain Vista Business Center for the purpose of providing a location for companies to expand or relocate a business, which then provides investment, jobs and increased tax base for Provo and Utah Valley. Provo City has a financial obligation to US Steel for the site characterization and cleanup of the property. The repayment of this obligation is derived from the sales or lease proceeds from property development and sales transactions. The schedule is as follows: Provo receives the first $1.2 million. US Steel receives the next approximate $750-850K (as of September 2013 this number has not been provided by US Steel) for the site characterization. Provo receives the next $2 million. Provo and US Steel then share the remaining proceeds on a 70/30 (70 for Provo and 30 for US Steel) split until US Steel has recouped their cleanup costs. If all the land is sold prior to the payback then Provo has no further obligation. If there is land remaining or revenue continues to be generated, once US Steel is repaid for the cleanup, Pro- vo has no further obligation.

Provo City Adopted Budget 2021-2022 137

The Division of Economic Development is pursuing a course that brings in a developer to construct buildings on the property. Under this model, Provo would not sell the underlying land, but would split lease proceeds on a predetermined rate with the developer. This arrangement would potentially generate a perpetual revenue stream into the foreseeable future. Provo would split the proceeds from the revenue stream with US Steel as outlined above. Once the US Steel obligation is satisfied, it is Adopted that all future revenue generated at the Mountain Vista Business Center be used to fund additional infrastructure and utility construction, demolition or other necessary improvements to increase value in the business park. If at some point there are no continuing financial needs at the Mountain Vista Business Center, all further land sales and lease revenue generated would be directed to the Economic Development Fund (shown in the Capital Improvement Section) for the purpose of economic development activities city wide. This fund would be used for land purchases, writ- ing down land costs, incentives for expanding or relocating businesses and other related, approved economic development activities.

Policy Review The City Council will review and approve by resolution the financial policies contained in this document as part of the annual budget document each year.

Provo City Adopted Budget 2021-2022 138

Appendix

139

Stormwater Service District

Original Budget Adjusted Budget Adopted Budget FY Actual FY 2018 Actual FY 2019 Actual FY 2020 Storm Drain FY 2021 FY 2021 2022 Revenue Utility Sales $ 4,852,442 $ 5,290,194 $ 5,722,453 $ 5,616,000 $ 5,616,000 $ 5,675,000 Miscellaneous 503,962 301,727 57,653 56,783 56,783 56,783 Fees 9,740 418,604 540,849 421,000 421,000 371,000 Interest Income 30,613 58,250 71,452 15,000 15,000 15,000 Total Revenue 5,396,758 6,068,775 6,392,407 6,108,783 6,108,783 6,117,783 Operation Expenditure Storm Drain $ 2,381,071 $ 2,482,405 $ 2,691,579 $ 2,819,839 $ 2,912,773 $ 2,871,861 Total Expenditure 2,381,071 2,482,405 2,691,579 2,819,839 2,912,773 2,871,861 Capital Expenditure Storm Drain CIP $ 3,008,050 $ 1,943,452 $ 1,159,897 $ 3,885,000 $ 6,302,885 $ 2,200,000 Total Expenditure 3,008,050 1,943,452 1,159,897 3,885,000 6,302,885 2,200,000

Total Revenues 5,396,758 6,068,775 6,392,407 6,108,783 6,108,783 6,117,783 Total Expenditures (5,389,121) (4,425,857) (3,851,475) (6,704,839) (9,215,658) (5,071,861) Transfer Out (575,954) (581,109) (673,264) (674,723) (674,723) (681,213) Net Change in Fund Balance (568,317) 1,061,809 1,867,668 (1,270,779) (3,781,598) 364,709

Beginning Fund Balance 2,141,049 1,572,732 2,634,541 4,502,209 4,502,209 720,611

Assigned Fund Balance 641,249 1,597,545 523,325 - - - Unassigned Fund Balance 931,483 1,036,996 3,978,884 3,231,430 720,611 1,085,320 Ending Fund Balance 1,572,732 2,634,541 4,502,209 3,231,430 720,611 1,085,320 Department Function

• The Stormwater Division of the Public Works Department is responsible for protecting property from flooding and preventing the public street system from being encumbered with flood water during rainstorms and spring snow melt runoff. This division also builds, operates, and maintains a storm drainage system such that citizens, property owners, business people, and even Stormwater employees can rest comfortably during runoff events. The division complies with new federal storm water quality regulations. Irrigation water is delivered to customers along the City irrigation ditches in the central and southwest areas of the City.

Highlights Storm Drain Total Operating Expenditures

• Constructed two airport moat crossings 3,500,000 and embankment for new terminal access 3,000,000 loop road. 2,500,000 • Completed 2015 audit response to the 2,000,000 State. This included completing three manual updates (SWMP, IDDE, Drainage Man- 1,500,000 ual). 1,000,000

• Completed the Oak Cliff Storm Drain pro- 500,000 ject - Actual FY 2018 Actual FY 2019 Actual FY 2020 Original Budget Adopted Budget FY 2021 FY 2022

Provo City Adopted Budget 2021-2022 140

Performance Measures Annual Totals Priority Goal Performance Measure 2020 2021 2022 Actual Current Target Target Number of employees completing the state-mandated Education Storm Water Pollution Training training for Illicit Discharge Detection & Elimination (IDDE) 240 133 350 350

Provo City Adopted Budget 2021-2022 141

Provo City Redevelopment Agency

Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Redevelopment Summary FY 2021 FY 2021 FY 2022 Revenue Property Tax $ 1,178,461 $ 1,074,526 $ 1,143,316 $ 1,127,570 $ 1,127,570 $ 1,127,570 Lease Income ------Miscellaneous 113,923 (98,222) 101,692 172,600 172,600 172,600 Interest Income 144,190 166,357 159,149 114,185 114,185 109,185 Total Revenue 1,436,574 1,142,661 1,404,157 1,414,355 1,414,355 1,409,355 Expenditure Tax Increment $ 1,075,660 $ 2,285,679 $ 240,945 $ 1,136,777 $ 4,304,713 $ 1,149,808 New Development 759,771 52,580 42,753 34,840 92,676 34,840 Total Expenditure 1,835,431 2,338,259 283,699 1,171,617 4,397,389 1,184,648

Net Change in Fund Balance (398,857) (1,195,597) 1,120,458 242,738 (2,983,034) 224,707 Department Function

• The Redevelopment Agency of Provo City (Agency) is a separate governmental entity created by Provo City under Title 17 of the Utah Code which governs “community development and renewal agencies.” The City Council is the governing board of the Redevelopment Agency and the Mayor also serves as the Agency’s Chief Executive Officer. The Redevelopment Agency primarily deals with programs and projects to help revitalize targeted areas of the City of Provo including the Central Business District (Provo’s downtown and surrounding neighborhoods) and other project areas as designated by the City Council. The Redevelopment Agency’s primary asset in this revitalization effort is tax increment financing which allows the Agency to participate in a variety of ways in its redevelopment efforts. The Redevelopment Agency also administers federal grants on behalf of the City of Provo that relate to community development and housing. • Two funds fall under the Agency as of FY 2020: the Tax Increment fund and the New Development fund. Those funds are managed by the Department of Development Services.

Tax Increment Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 Tax Increment FY 2021 FY 2021 FY 2022 Revenue Property Tax $ 1,178,461 $ 1,074,526 $ 1,143,316 $ 1,127,570 $ 1,127,570 $ 1,127,570 Interest Income 125,189 143,993 140,358 104,185 104,185 104,185 Miscellaneous 1,000 (200,000) - 57,600 57,600 57,600 Transfer In ------Total Revenue 1,304,650 1,018,519 1,283,674 1,289,355 1,289,355 1,289,355 Expenditure Tax Increment $ 1,075,660 $ 2,285,679 $ 240,945 $ 1,136,777 $ 4,304,713 $ 1,149,808 Total Expenditure 1,075,660 2,285,679 240,945 1,136,777 4,304,713 1,149,808

Net Change in Fund Balance 228,990 (1,267,160) 1,042,728 152,578 (3,015,358) 139,547

Beginning Fund Balance 6,900,021 7,129,011 5,861,852 4,241,035 6,904,580 4,241,035

Ending Fund Balance 7,129,011 5,861,852 6,904,580 4,393,613 3,889,222 4,380,582

Provo City Adopted Budget 2021-2022 142

New Development Original Budget Adjusted Budget Adopted Budget Actual FY 2018 Actual FY 2019 Actual FY 2020 New Development FY 2021 FY 2021 FY 2022 Revenue Lease Income $ - $ - $ - $ - $ - $ - Interest Income 19,001 22,365 18,791 10,000 10,000 5,000 Miscellaneous 112,923 101,778 101,692 115,000 115,000 115,000 Total Revenue 131,924 124,142 120,483 125,000 125,000 120,000 Expenditure New Development $ 759,771 $ 52,580 $ 42,753 $ 34,840 $ 92,676 $ 34,840 Total Expenditure 759,771 52,580 42,753 34,840 92,676 34,840

Net Change in Fund Balance (627,847) 71,562 77,730 90,160 32,324 85,160

Beginning Fund Balance 1,516,843 888,996 960,558 1,038,287 1,038,287 1,070,611

Ending Fund Balance 888,996 960,558 1,038,287 1,128,447 1,070,611 1,155,771

Performance Measures

Annual Totals 2020 2021 2022 Priority Goal Performance Measure Actual Current Target Target Utilize redevelopment programs and incentives to Finalizing the Mountain Vista industrial park and encourage the revitalization of blighted working to redevelop those centers that are in Ongoing commercial and industrial areas. (7.4.1.2) redevelopment project areas.

Working with PEG Development to increase Business & Promote efficient utilization of building space by Ongoing housing and office uses in the downtown. Economic Vitality encouraging a mix of uses in the Central Business District (CBD), including retail, office, Working with McWhinney Development to service, and high density residential occupancies. redevelop the block that City Hall currently occupies Ongoing (6.4.6.2) once the new City Hall complex is completed. Working with the owners of Provo Towne Centre Ongoing Healthy, Inviting Define, identify, and beautify the major entrances Mall to redevelop the center. Environment to the community. (2.4.3.9) Looking at the feasibility of creating a new project Ongoing that would extend from the freeway to 500 West.

143

Glossary

Account A separate financial reporting unit. All budgetary Balanced Budget A budget in which planned funds or rev- transactions are recorded in accounts. enues available are equal to fund planned expenditures. Accrual Basis of Accounting A method of accounting Basis Point Equal to 1/100 of one percent. If interest rates where revenues are recorded when service is given and rise from 7.50 percent to 7.75 percent, the difference is re- expenses are recognized when the benefit is received. ferred to as an increase of 25 basis points. Accounting Period A period of time (e.g. one month, one Benchmarking Determining the quality of products, ser- year) where the city determines its financial position and vices, and practices by measuring critical factors (e.g., how results of operations. fast, how reliable a product or service is) and comparing the results to those of highly regarded competitors. Actuarial A person or methodology that makes determina- tions of required contributions to achieve future funding Benefits Payments to which participants may be entitled levels that addresses risk and time. under a pension plan, including pension benefits, death benefits, and benefits due on termination of employment. Ad Valorem Tax A tax levied on the assessed value of real estate and personal property. This tax is also known as Bond Covenants A legally enforceable promise made to property tax. the bondholders from the issuer, generally in relation to the source of repayment funding. Adjusted Budget The adjusted budget as formally adjusted by the Municipal Council. Bond Rating The City of Provo uses three of the Nation’s primary bond rating services: Moody’s Investors Service, Adopted Budget The Adopted budget as initially formally Fitch Ratings, and Standard & Poor’s. These rating ser- approved by the Municipal Council. vices perform credit analyses to determine the probability of Amortization The reduction of debt through regular pay- an issuer of debt defaulting partially or fully. ments of principal and interest sufficient to retire the debt Bonds A security that represents an obligation to pay a instrument at a predetermined date known as maturity. specified amount of money on a specific date in the future, Annual debt service expenditures Annual debt service typically with periodic principal and interest payments. for measuring debt capacity for the City shall include debt Budget Calendar A schedule of key dates which the City service on outstanding principal for: general obligation follows in the preparation, adoption and administration of bonds of the City, all lease appropriation debt to the extent the budget. that it is support by tax revenue, this excludes revenue bonds, and bonds issued for RDA and EDA. Budget Highlights Included in the opening section of the budget, provides a summary of most important challenges Annual revenue Annual revenue for measuring debt ca- of the budget year, changes from previous years, and rec- pacity shall include the revenues of the General Fund and ommendations regarding the financial policy for the upcom- special revenue funds for the fiscal year in which the debt ing period. service expenditures occur. Capital Equipment Physical plant and equipment with an Appropriation A specific amount of money authorized by expected life of five years or more. the Municipal Council for the purchase of goods or services. Capital Expenditures The approved budget for improvements to or acquisition of infrastructure, park development, Arbitrage The gain which may be obtained by borrowing building, construction or expansion, utility systems, streets funds at a lower (often tax-exempt) rate and investing the or other physical structure with an estimated cost of $5,000 proceeds at higher (often taxable) rates. or more. Assessed Valuation The appraised worth of property as set by a taxing authority through assessments for purposes Capital Improvement Plan (CIP) A plan for capital ex- of ad valorem taxation. The method of establishing as- penditures to be incurred each year over a five-year period. sessed valuation varies from state to state, with the method Essentially, the plan allows for a systematic evaluation of generally specified by state law. For example, in certain all potential projects, and specifies funding sources for all approved projects. jurisdictions the assessed evaluation is equal to the full or market value of the property. In other jurisdictions, the assessed valuation is equal to a percentage of the full market value.

Provo City Adopted Budget 2021-2022 144

Capital Lease An agreement conveying the right to use purpose. This differs from reserved funds, in that there is property, plant or equipment usually for a stated period of no legal requirements for funds that have been designated. time where the lessee assumes all the risks and rewards of Distinguished Budget Presentation Program A voluntary ownership. program administered by the Government Finance Officers Capitalized Interest When interest cost is added to the Association to encourage governments to publish efficiently cost of an asset and expensed over the useful life of the organized and easily readable budget documents and to asset. provide peer recognition and technical assistance to the fiscal officers preparing them. Chargeback Term used to describe the method to reim- burse the costs incurred by the internal service funds or Encumbrances Obligations incurred in the form of orders, general fund to all departments throughout the City. contracts and similar items that will become payable when goods are delivered or services rendered. Community Development Block Grant (CDBG) One of the longest-running programs of the U.S. Department of Enterprise Fund A self supporting fund designed to ac- Housing and Urban Development that funds local commu- count for activities supported by user charges. nity development activities such as affordable housing, anti Enterprise Resource Planning (ERP) A debt service fund -poverty programs, and infrastructure development. in the City that pays for obligations related to the Provo Consumer Price Index An index of the variation in prices 360 software system that has been implemented over the paid by typical consumers for retail goods and other items. past several years. Comprehensive Annual Financial Report (CAFR) This Escrow Money or property held in the custody of a third official annual report presents the status of the City’s fi- part that is returned only after the fulfillment of specific con- nances in a standardized format. The CAFR is organized ditions. by fund and contains two basic types of information: a bal- Expenditure The disbursement of appropriated funds to ance sheet that compares assets with liabilities and fund purchase goods and/or service. balance; and an operating statement that compares revenues and expenditures. Fiduciary Funds Funds used to report assets held in a trustee or agency capacity for others and which therefore Community & Neighborhood Services (CNS) A depart- cannot be used to support the government’s own pro- ment in Provo City that oversees long-term development grams. The fiduciary fund category includes pension trust projects and planning. funds, investment trust funds, private-purpose trust fund, Contingency An appropriation of funds available to cover and agency funds. unforeseen events that occur during the fiscal year. These Fines and Forfeitures Consists of a variety of fees, fines funds, if not used, lapse at year end. This is not the same and forfeitures collected by the State Court System. as fund balance. Fiscal Year (FY) Any period of 12 consecutive months Debt Service The amount necessary to pay principal and designated as the budget year. The City’s budget year is interest requirements on outstanding obligations for a given July 1st and end June 30th. year or series of years. Fixed Assets Items owned by the City that cost a consid- Debt Service Fund The amount necessary to pay principal erable amount and has a useful life exceeding two years – and interest requirements on outstanding obligations for a e.g., computers, furniture, equipment and vehicles. given year or series of years. Fleet The vehicles owned and operated by the City. Defeasance A provision that voids a bond when the borrower puts cash in escrow via a refunding bond issuance Forfeiture The automatic loss of property, including cash, sufficient to service the borrower’s debt. When a bond is- as a penalty for breaking the law, or as compensation for sue is defeased the borrower sets aside cash to pay off the losses resulting from illegal activities. Once property has bonds, therefore the outstanding debt and cash offset each been forfeited, the City may claim it, resulting in confisca- other on the balance sheet and are removed from the fi- tion of the property. nancial statements. Franchise Fee Charges to utilities for exclusive/non- Deficit The excess of liabilities over assets , or expendi- exclusive rights to operate within municipal boundaries. tures over revenues, in a fund over an accounting period. Full-Time Equivalent Position A part-time position con- Depreciation The decrease in value of physical assets due verted to the decimal equivalent of a full-time position to use and the passage of time. based on 2,080 hours per year.

Designated Funds that have been identified for a specific

Provo City Adopted Budget 2021-2022 145

Fund A set of interrelated accounts to record revenues and ed in general long-term debt. The General Fund, Debt Ser- expenditures associated with a specific purpose. vice Funds, Special Revenue Funds, and some Capital Improvement Funds are prepared on the modified accrual Fund Balance The difference between assets and liabili- basis of accounting except that encumbrances are treated ties reporting in a governmental fund at the end of the fiscal like expenditures. year. Municipal Code A collection of laws, rules and regulations General Fund A governmental fund established to account that apply to the City and its Citizens. for resources and uses of general operating functions of City departments. Resources are, in the majority, provided Objective Something to be accomplished in specific, well- by taxes. defined, and measurable terms and that is achievable within a specific time frame. General Obligation (GO) Bond Bonds for the payment of which the full faith and credit of the issuing government are Operating Budget A budget for general revenues and pledged. expenditures such as salaries, utilities, and supplies. General Obligation (GO) Debt Debt that is secured by a Operating Lease A lease that is paid out of current operat- pledge of the ad valorem taxing power of the issuer. Also ing income rather than capitalized. known as a full faith and credit obligation. Ordinance A formal legislative enactment by the City that General Services Referring to activities, revenues and carries the full force and effect of the law within corporate expenditures that are not assigned to a department. boundaries of the City unless in conflict with any higher form of law, such as state or federal. Governmental Funds Funds generally used to account for tax-supported activities. There are five different types of Outcomes Quality performance measures of effectiveness governmental funds: the general fund, special revenue and of achieving goals. (e.g., customer satisfaction, aware- funds, debt service funds, capital project funds, and perma- ness level, etc.) nent funds. Outputs Process performance measures of efficiency and Grant A contribution by one governmental unit to another productivity. unit. The contribution is usually made to aid in the support Pay-as-You-Go Financing A method of paying for capital of a specified function. projects that relies on current tax and grant revenues rather Inflation A rise in price levels caused by an increase in on debt. available funds beyond the proportion of available goods. Per Capita A measurement of the proportion of some sta- Infrastructure Public domain fixed assets including roads, tistic to an individual resident determined by divided the bridges, curbs, gutters, sidewalks, drainage systems, light- statistic by the current population. ing systems and other items that have value only to the Performance Budget A budget wherein expenditures are City. based primarily upon measurable performance of activities Interest Income Revenue associated with the City cash and work programs. management activities of investing fund balances. Permit Revenue Fees imposed on construction-related Intergovernmental Revenue Revenue received from or activities and for the acquisition of other nonbusiness per- through the Federal, State, or County government. mits. Interlocal Agreement A contractual agreement between Popular Annual Financial Report (PAFR) is a brief sum- two or more governmental entities. mary of the City’s Comprehensive Financial Report (CAFR). The report is intended to increase knowledge Lease The difference between assets and liabilities report- through the community of Provo’s financial condition. The ing in a governmental fund at the end of the fiscal year. financial information within the report is taken in large part Mission Statement The statement that identifies the par- from the City’s independently audited set of financial state- ticular purpose and function of a department. ments. Unlike the CAFR, the PAFR is not prepared in accordance with generally accepted accounting principles. Modified Accrual Basis The basis of accounting under which revenues are recognized when measurable and available to pay liabilities and expenditures are recognized when the liability is incurred except for interest on long-term debt which is recognized when due, and the noncurrent portion of accrued vacation and sick leave which is record-

Provo City Adopted Budget 2021-2022 146

Present Value The discounted value of a future amount of of fund balances) which will be used to fund expenditures cash, assuming a given rate of interest, to take into account in a fiscal year. the time value of money. To put it another way, a dollar is Revenue Bonds Bonds whose principal and interest are worth a dollar today, but is worth less than today’s dollar payable exclusively from a designated revenue source or tomorrow. enterprise fund. Privatization An act of outsourcing a program or process Sales Tax Tax imposed on the taxable sales of all final to a non-governmental entity. goods. Program Group activities, operations or organizational Special Assessment A compulsory levy made against units directed to attaining specific objectives and achieve- certain properties to defray part or all of the cost of a spe- ments and budgeted as a sub-unit of a department. cific improvement or service deemed to primarily benefit Property Tax A tax levied on the assessed value of real those properties. and personal property. This tax is also known as ad val- Special Revenue Fund A fund used to account for reve- orem tax. nues legally restricted to expenditures for a particular pur- Proprietary Fund Enterprise and internal service funds pose. that are similar to corporate funds, in that they are related Tax supported bonds Bonds for which the funding used to assets, liabilities, equities, revenues, expenses and to make annual debt service expenditures is derived from transfers determined by business or quasi-business activi- tax revenue of the City’s General and Special Revenue ties. Funds. Quality Excellence, as defined by the customer. Taxable Value The assessed value less homestead and Quarterly Report A document that collects quarterly finan- other exemptions, if applicable. cial information in the major City funds. Total bonded debt For purposes of measuring debt ca- Redevelopment Agency (RDA) A separate governmental pacity, total bonded debt shall include total outstanding entity created by Provo City under Title 17 of the Utah principal for: general obligation bonds of the City, bonds Code which governs “community development and renewal issued for the RDA and EDA projects, all lease appropria- agencies.” The City Council is the governing board of the tion debt to the extent that it is support by tax revenues, Redevelopment Agency and the Mayor also serves as the this excludes revenue bonds. Agency’s Chief Executive Officer. The Redevelopment Trust and Agency Funds These funds are used to ac- Agency primarily deals with programs and projects to help count for assets held by the City in a trustee capacity or as revitalize targeted areas of the City of Provo an agent for individuals, private organization, other govern- Refunding Retiring an outstanding bond issue at maturity ments and/or other funds. by using money from the sale of a new bond offering. In Truth in Taxation In order to understand property tax in other words, issuing more bonds to pay off the old bonds Utah it is necessary to understand a section of Utah Lawn that just matured. In an Advance Refunding a new bond known as “Truth in Taxation.” The County is responsible for issuance is used to pay off another outstanding bond. The administering property taxes and each June it submits to new bond will often be issued at a lower rate than the older the cities a certified tax rate that would generate the same outstanding bond. Typically, the proceeds from the new amount of revenues as the previous year plus any new bond are invested and when the older bonds become calla- growth. The certified tax rate does not provide for addition- ble they are paid off with the invested proceeds. al tax revenue due to increased valuation of existing prop- Reserves A portion of the fund balance or retained earn- erty. If the City chooses to adopt a tax rate higher than the ings are legally segregated for specific purposes. certified rate, state law has very specific requirements for newspaper advertisement and public hearing from which Residual Equity Transfers Nonrecurring or nonroutine the name “Truth in Taxation” is derived. transfers of equity between funds. Unappropriated Not obligated for specific purposes. Resolution A legislative act by the City with less legal for- mality than an ordinance. Unassigned Fund Balance Used as a measure of the amount of resources a jurisdiction has available for spend- Retained Earnings An account in the equity section of the ing, including its ability to meet special needs and with- balance sheet reflecting the accumulated earnings of the stand financial emergencies. In these policies, unassigned Proprietary Funds. fund balance means it is neither earmarked nor reserved Revenue Monies received from all sources (with exception for other uses. It is available for discretionary spending.

Provo City Adopted Budget 2021-2022 147

Undesignated Without a specific purpose. Unencumbered The portion of an allotment not yet ex- pended or encumbered. Useful life The period of time that a fixed asset is able to be used. This can refer to a budgeted period of time for an equipment class or the actual amount of time for a particular item. User Fees Charges for expenses incurred when services are provided to an individual or groups and not the community at large. The key to effective utilization of user fees is being able to identify specific beneficiaries of services and then determine the full cost of service they are consuming. Variable Rate Bond or Note A bond or note on which the interest rate is reset periodically. The interest rate is reset either by means of an auction or through an index. Vision 2030 A steering committee completed a long-range strategic plan for the City. Working Capital A financial metric which represents operating liquidly available to a business. It is calculated as current assets minus current liabilities.

Provo City Adopted Budget 2021-2022 148

Consolidated Fee Schedule Changes Summary

Rate and Fee Changes Adopted to take effect July 1, 2021. To see the most up-to-date Consolidated Fee Schedule, visit https://provo.municipal.codes/Code/CFS.

ADMINISTRATIVE FEE CHANGES The following fees were moved from the “Police” section of the Consolidated Fee Schedule to the “Administrative” section:

• Bicycle License

• Police Clearances (also changed from $8.00 to $10.00)

• Insurance Letters COMMUNITY & NEIGHBORHOOD SERVICES FEE CHANGES Business Licensing • Community & Neighborhood Services added a new “Class ‘F’” Beer License Fee for $450. Permit Areas • Because all permits are now digital, Community & Neighborhood Services eliminated its “Replace Lost Permit” fee since people no longer use physical permits.

DEVELOPMENT SERVICES FEE CHANGES Development Fees • Development Services added a new fee for “Boundary Line Adjustments” at $150.00. Inspection Fees • Development Services removed these three Inspection fees that are no longer used: Vent fan with single duct fee; Air handler up to and including 10,000 cfm fee; and Absorption systems up to and including 100,000 Btu fee.

JUSTICE COURT FEE CHANGES • This section has been updated to reflect the fee schedule set by State law.

ENERGY FEE CHANGES Energy added an electric vehicle charge rate, set at $0.11/kWh.

PUBLIC WORKS FEE CHANGES Airport The Airport updated these Hangar Rental fees: • Hangars 1A to 27A increased from $225/month to $250/month. • A new fee—City-owned Box Hangars for $275 per month– was added. • The “All other City-owned T-hangars” fee increased from $300/month to $325/month.

In addition, the Airport added two badge fees: • White badge fee at $25/year • SIDA badge fee at $50/year

Finally, the Airport increased the Airport Parking fee from $7.00 per vehicle per day to $8.00 per vehicle per day.

149

Culinary Water The monthly base charges for each pipe size and seasonal commodity charges will increase as follows, beginning September 1, 2021:

Water *Effective 9/1/21 FY21 Fees FY22 Fees 3/4" $17.70 $18.59 per month 1" $22.34 $23.46 per month 1 1/2" $48.03 $50.43 per month 2" $71.85 $75.44 per month 3" $139.30 $146.27 per month 4" $232.12 $243.73 per month 6" $275.65 $289.43 per month 8" $415.56 $436.34 per month 10" $552.75 $580.39 per month 12" $897.51 $942.39 per month Commodity Charge Summer $1.67 per 1,000 gallons Winter $1.01 per 1,000 gallons Tier 1 <100K gallons $1.06 per 1,000 gallons Residential-Winter (November to April) Tier 2 >100K gallons $1.16 per 1,000 gallons Tier 1 <100K gallons $1.75 per 1,000 gallons Residential-Summer (May to October) Tier 2 >100K gallons $1.94 per 1,000 gallons Tier 1 <500K gallons $1.06 per 1,000 gallons Commercial-Winter (November to April) Tier 2 >500K gallons $1.16 per 1,000 gallons Tier 1 <500K gallons $1.75 per 1,000 gallons Commercial-Summer (May to October) Tier 2 >500K gallons $1.94 per 1,000 gallons

The residential and commercial tiered commodity charges are a new addition, starting in the fiscal year 2022 budget.

Sanitation Sanitation is now basing the Compost Purchase fees for residents and nonresidents on cubic yards rather than by number of loads.

Wastewater • Effective 9/1/2021, Wastewater will change the monthly Residential Base Charges by increasing the Base Rate for a Single Unit from $17.16 to $18.88 per connection and increasing the Base Rate Multiple Units from $15.45 to $17.00 per unit. • Wastewater will increase the Monthly Nonresidential Base Charge for each meter size, as follows:

Non-Residential *Effective 9/1/21 3/4" $17.16 $18.88 per month 1" $42.91 $47.20 per month 1 1/2" $85.83 $94.41 per month 2" $137.31 $151.04 per month

3" $257.46 $283.21 per month 4" $429.10 $472.01 per month 6" $858.19 $944.01 per month 8" $1,373.10 $1,510.41 per month • In addition, Wastewater’s “All Uses Commodity Charge” increased from $4.70 to $5.17 per 1,000 gallons for both residential and non-residential. • Wastewater’s equipment rates also increased. The fees for the Jetter Truck and the Closed Circuit TV Truck increased from $150/hour to $225/hour. • Finally, Wastewater’s fee for “Nonconnection to Available Sewer within 300 ft. of City Sewer” fee increased from $17.16 per month to $18.88 per month.

150