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96 South Main Street, Nephi, Utah 84648 - Voice: 435 623-0525 - FAX: 435 623-4735
News for
June 25, 2025
 

 
  • Financial outlook good for Nephi City as council approves budgets

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By Myrna Trauntvein
TN Correspondent

The first item on the Nephi City agenda was a public hearing to review the proposed final budget and the amendments to the last budget.

“Nephi City employs a two-year, or biennial budget, to make a financial plan for city departments,” said Seth Atkinson, city administrator. “The fiscal biennium would begin on July 1, 2025 and go through June 30, 2027.“

Through this process, he said, the Nephi City Council, with recommendations from city departments, sets their priorities for the future.

City staff use the resources available to carry out these priorities.

“The priorities of the Nephi City Council for the next two fiscal years are divided into General Services (services mainly paid for with taxes) and Utility Services (services for infrastructure provided through fees),” he said.

Residents and members of the council can go over the FY 2026-27 Final Biennial Budget. This budget contains the priorities listed by the city council for both General Services and the Utility Funds.

“The Community Reinvestment Agency (CRA) Fund will be new this biennium,” said Atkinson. “There will also be adjustments to this fund for the FY 2025 Amended Budget.

The CRA Fund accounts for the tax increment amounts from all taxing entities participating in the CRA and the payments to the developer for the hotel economic development project.

“There is also a new department to account for the West Central Drug Strike Force,” said Atkinson.

General assumptions for the budget include a 3 percent cost-of-living adjustment in both years.

“This will make up additional lost ground from inflationary pressures in prior years,” he said. “It is anticipated that future adjustments will more closely mirror the Consumer Price Index or CPI.“

Consistent with the compensation policy, there will be market adjustments for certain positions.

“No property tax increases have been assumed in this budget cycle,” said Atkinson.

Specific assumptions also include certain fee increases.

Planned and adopted fee increases for the Water and Electric Funds are included in the budget to help fund needed capital projects that include past improvements to the water system, future land acquisition for a water tank and construction of infrastructure associated with a 138 kV power line, he said.

“The Sewer Fund assumes a $1.50 per month fee increase in each of the fiscal years to fund needed capital projects, including older line replacement, sewer pipe lining projects, land acquisition and construction for a primary sewer cell,” he said.

There are other capital projects and equipment purchases that are also included in the biennial budget.

“Also included is the amended FY 2025 Budget.

There have been many adjustments due to inflationary costs, added positions in the budget, and capital projects. Revenues have also been increased due to higher earnings.

“The financial outlook is good,” said Atkinson.

Rising interest rates have slowed new home construction over the last couple of years but commercial and industrial growth have continued unabated. If interest rates soften, it is likely that new home construction will increase again.

“Economic development tools have been employed to encourage additional retail and job-related business development,” he said. “Nephi City has also continued to be a retail hub for surrounding areas. All these things assist in bringing additional sales and property taxes to Nephi to fund services.”

However, growth brings additional costs in the city’s planning, building inspection, police, library, parks, and recreation departments, he said. Overall, the financial outlook for Nephi City is positive but could still be subject to any state or national macroeconomic events.

“Nephi City employs a unique budgeting philosophy called expenditure control budgeting,” he said. “Using this method, both utility and general fund departments are given revenue as well as expenditure budgets. Department heads are allowed to carry over any budgeted savings and any revenues over the budgeted amounts from fiscal period to fiscal period.”

In this way, the “spend it or lose it” incentive is removed. Efficiency is encouraged as department heads look for ways to reduce costs and boost revenues. Departments are given their department specific revenues and general fund departments each receive a portion of the general taxes and transfers for their revenues.

“As departments save funds from one budget period to the next, they are able to dedicate funding toward projects, equipment, or software that are needed in their department. In the budget priorities, requests that are marked as funded are using these carryover funds and represent the department’s initiative to fund their own budget requests. Ongoing operating priorities are funded as new revenues become available,” Atkinson said.

Budgeting for Services: The services provided by the city can be split into two categories: General City Services that are mainly services provided to the general public and are funded primarily through tax revenue (e.g. Police, Streets, Parks, Library, etc.) and; Utility Services (Electric, Water, Sewer, Solid Waste, Natural Gas), Utilities are provided on a fee-based approach and generally based on usage.

“Nephi City is unique in that it provides almost all utilities that serve residential homes and businesses,” Atkinson said. “The priorities for both of these service categories are set by the city council. Priorities not marked as funded will receive funds as revenue becomes available.”

He said some priorities may span budget cycles and some are not funded due to lack of revenues in the budget cycle.

General Fund Priority Outcomes: Police Station (As funding becomes available); West Side Transportation Plan (funded); Screens in Planning Office (funded); Cemetery Road Maintenance (funded); Tiller for Cemeteries/Parks (funded); Leaf Blower for Parks/Cemeteries (funded); New Shed for Parks/Cemeteries (funded); Golf Greens Mower (funded); Golf Cart Replacement (funded); Maintenance Lift for Golf Shop (funded); Upgrade Old Golf Maintenance Shed (funded); Reel Sharpener for Golf Course (funded); I-Plan Table for Public Works Admin (funded); New City Hall Copier (funded); Finance Director Transition (funded); Docuware Upgrade (funded); ICMA Conference (City Admin - funded)

Not yet funded: Steel Fixtures for Parks Bathrooms; Parks Cameras; Backhoe (Streets); Painting Robot for Parks/Recreation; Election Costs; Fireworks for 2026 Celebration; Software Solutions for Planning Dept.; Water Heater/HVAC (Parks); Water Truck (Streets); Vehicle Leases (Police); Technology Computer Upgrades (Police); Sprayer for Golf Course;

Operating Priority Outcomes: K-9 Officer Compensation; Airport Manager; Mental Health Counseling for Police; Chamber of Commerce Support; Hive Manager; One Additional Police Officer (Will require dedicated funding); Part-time Parks Employee; Body/Vehicle Police Cameras; Comp Time Payout; Police Vehicle Leases; Utility Funds Priority Outcomes; Wastewater

The plan is to perform Nebo Heights Re-lining, to consider the need for new sewer lagoons and to make electric system upgrades.

Also on the list for consideration is an apprentice, a backhoe and Natural Gas.

Justin Seely, mayor called for comments from the public and seeing none, closed the public hearing. Later in the regular meeting, council members were asked to approve the FY 2026-27 Final Budget and FY 2025 Amended Budget in separate motions.

Shari Cowan, council member, made the motion to approve the final budget. Skip Worwood, council member, made the second and all voted in favor.

Cowan also made the motion to approve the amended budget. Jeramie Callaway, council member, made the second and all voted in favor.