Council reviews FY2026–27 non‑departmental budget and funding shifts

Salt Lake City staff on May 28 provided the council a high‑level briefing on the FY2026–27 non‑departmental (non‑dep) budget, which groups transfers, grants, pass‑throughs and other expenses that are not assigned to a single operating department.

"This year's non‑EP departmental budget is the second largest in the city. It accounts for transfers to other funds, grants, and other special revenue funds that do not necessarily belong to a particular city department," staff said. The staff report lists policy questions and more detailed line‑item changes.

Staff described several notable adjustments in the tentative budget: using roughly $1.2 million in one‑time impact fees to reduce debt‑service costs this year; moving the Community Reinvestment Area (CRA) pass‑through to a new pass‑through fund; and pausing a $2.5 million CRA housing plan transfer this year. Staff also flagged insurance and risk management increases (driven by workers‑comp and liability costs) and smaller shifts for fleet replacement and other internal transfers.

Staff highlighted that about $6.4 million of the property‑tax increase proposal has been designated for capital improvement projects (CIP). "Just about half of the property tax increase proposal is going to CIP," a staff member said, noting the accounting treatment required by truth‑in‑taxation rules means some CIP funding appears as a reduction in the general fund tentative budget pending final tax decisions.

Other line items discussed included contractual increases for indigent defense and transit, reductions to one‑time items (for example, an NLCT conference cost that was removed last year), the proposed elimination of the Hive Pass transit subsidy, and the transfer of some police‑related budgets back to the Police Department for clearer management (for example, social‑worker program costs).

Council members raised questions about the implications of shifting CIP funding to property‑tax dollars and whether use of one‑time funds and pauses to program transfers will create deferred maintenance pressures. Staff said CIP adoption timing will be clarified during the truth‑in‑taxation process and that council will revisit specific CIP projects in July/August as the final budget is adopted.

Next steps: staff will continue to track unresolved budget questions (including fuel, Hive Pass and labor negotiations) and present more detailed materials ahead of the budget adoption process.