Budget Message - Fiscal Years 2024 and 2025

In the last budget cycle, the Nephi City Council elected to adopt a two-year budget plan.  It is now time to examine the budget for the next two-year cycle.  The city operates on a fiscal year that begins July 1st and runs through June 30th.  This budget will cover the fiscal years of 2024 and 2025.  The benefits of a two-year budget were outlined in the budget narrative for the prior budget cycle and can be viewed here.  

The following diagram shows how the budget process works to transform the priorities of the Nephi City Council into a two-year financial plan:

Financial Outlook

Nephi City has undergone continual growth over the last two years.  Both residential and commercial development have increased which has brought the need for the city to hire a full-time planner.  National changes have also had an effect.  Post-pandemic funds, high inflation, and rising interest rates have also created impacts for the community.  Although interest earnings are higher and sales taxes are increased, inflationary impacts have also affected wages and costs for services.  Many of the projects in the upcoming budget are due to growth pressures and aging infrastructure.  

Budgeting for Services

The services provided by the city can be split into two categories: 1) General City Services - These are mainly services provided to the general public and are funded primarily through tax revenue (e.g. Police, Streets, Parks, Library, etc.) and; 2) Utility Services - 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.  The priorities for both of these service categories are set by the City Council.  The list of priorities for the next two fiscal years is found in the lists below.  Priorities are funded as revenue becomes available.  Some priorities may span budget cycles.  

General Fund Priority Outcomes

• Police Station (As funding becomes available)
• Parks Lawnmower
• Chamber of Commerce funding for conferences
• New Sports Equipment for Recreation (to comply with current safety standards)
• Bridge Improvement funding
• Animal Shelter roof
• Funds reserved for demolition of Old Gym and Armory
• Computer Replacement program
• Implement a Stormwater Utility and fee
• ICMA Conference attendance
• Water Truck for Streets Department
• Upgrade cemetery software
• Reserve funds for replacing plaster at Pool
• New Sergeant Position in Police department
• Aerator for Golf Course
• ATV/UTV with dump bed for Cemetery and Parks
• New Golf Maintenance Shop
• Padding for slide at Pool
• Training conferences for City Planner
• Bunker Machine for Golf Course
• Match funds for Jamestown Park pump track
• Greens mower for Golf Course
• New siding for buildings at Pool and Nebo View ball fields
• Freeway exit improvements
• Records & Evidence Technician for Police Department 
• Lexipol policy software

Utility Funds Priority Outcomes

• Shared Equipment - New Skid Steer and Forklift

Water

• Water Tank Acquisition
• Worwood Well Re-drill

Wastewater

• Nebo Heights Re-lining
• Land Acquisition for Primary Cell
• Line Improvements

Electric

• Installation of 138 kV Power Line and Substations
• Gas Gate Station for new Power Plant

Natural Gas

• Gas Gate Station for new Power Plant
• Payson Gate Station upgrade
• New Steel Line from Main Gate Station to South Gate Station

Solid Waste

• New Garbage Truck

More information about these services and projects can be found in the links to the left.  The budget document presents the planned revenues and expenses for each city department for the upcoming fiscal biennium as well as any planned capital projects.   Thanks go to the staff for assisting in the preparation of this document, particularly the Finance Department, and to the City Council for their community vision and priorities.

- Seth Atkinson, City Administrator