Budget Message - Fiscal Years 2026 and 2027

Nephi City employs a two-year, or biennial budget, to make a financial plan for city departments.  The fiscal biennium would begin on July 1, 2025 and go through June 30, 2027.  Through this process 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 shown below.  They are divided into General Services (services mainly paid for with taxes) and Utility Services (services for infrastructure provided through fees).  

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

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.  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. Overall, the financial outlook for Nephi City is positive but could still be subject to any state or national macroeconomic events.   

Budgeting Philosophy

Nephi City employs a unique budgeting philosophy called expenditure control budgeting.  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 below, 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.  

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 (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.  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 not marked as funded will receive funds as revenue becomes available.  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)
• 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 - Police
• Chamber of Commerce Support
• Hive Manager
• 1 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

• Nebo Heights Re-lining
• Sewer Lagoons

Electric

• Apprentice
• Backhoe

Natural Gas

• Meter Replacement
• Leak Survey
• Laser Detector

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