Midway finance presentation: sales tax and resort tax lift reserves; council plans quarterly budget oversight

Brad presented a comprehensive rundown of Midway City’s revenue streams and fiscal standing, telling the council that taxes account for the majority of the general fund and that sales and use taxes are the largest single source of revenue.

Key points: property tax is collected annually (December–January) and is largely unrestricted; a separate property tax tranche repays the open-space bond and is restricted to that purpose; vehicle registration and other fee revenue are modest and received year-round; tax redemptions and penalties provide irregular revenue; and sales/use tax provides monthly receipts and accounts for roughly 20% of general fund revenue. Brad said the city benefits from internet sales tax distribution and from resort-related spending, and that Midway’s resort tax remains at 1 percent.

Franchise and municipal taxes (for utilities and telecommunications) and a variety of other levies also contribute to the general fund. The new TAP (Trails, Arts and Parks) tax is restricted and is allocated through a formula among Midway, Heber and the county; Brad noted Midway had $182k already received toward a $250k budgeted estimate and emphasized the council’s intent to use that funding for community arts and trail projects rather than general operations.

Brad told the council current reserves are strong: the capital improvement projects fund holds about $7.3 million (not including a proposed $2 million transfer under consideration) and the water fund holds about $8.5 million. With current budget projections the city expects to transfer $2 million into capital improvements, he said. The presenter recommended making budget oversight a routine activity: team leads will receive monthly reports, and the council will move to quarterly budget amendments and reporting so members can more regularly track performance.

Councilmembers asked about impact fees (recorded under licenses and permits for building permits; water impact fees sit in the water fund), franchise-fee breakdowns, and how secondary homes vs. primary residences affect assessed population. Brad said staff will provide further detail in the next meeting and bring a fuller report with breakdowns by franchise source, actual vs. budget numbers and updated impact fee schedules.

No ordinance or tax increase was approved; the discussion was informational and designed to set up follow-up budget work and reporting.