ST. GEORGE — With a proposed budget of over $500 million, capital projects and public safety are among the major funding focuses for the city of St. George for the coming 2023 fiscal year.
“This year’s budget development focused around addressing critical needs in public safety, infrastructure and facility improvements, and continuing to provide the high-quality services expected by our community,” St. George City Manager Adam Lenhard wrote in the budget’s introductory summary. “Several significant investments in support of these areas are included in this year’s budget.”
The proposed budget, which was adopted by the St. George City Council earlier this month for both councilor and public review, is projected to be $502.6 million. This is an increase of $78 million, or 18.6% over last year’s budget.
In addition to the increase in capital projects and investment in public safety, part of the budget’s increase is meant to help counter rising costs caused by inflation. Inflation in the Mountain West region of the United States is estimated to be over 10%, according to the U.S. Bureau of Labor Statistics.
Capital project highlights
Capital projects – which are primarily funded through impact fees collected from new development – make up an estimated $169.7 million, or 33.8%, of the overall budget. Projects being funded for the year are either new or continuing ones that carry over year-to-year until their completion.
“This is a very heavy year for the city to be making improvement citywide,” Lenhard said while speaking about the proposed budget Thursday.
There are several major and minor capital projects the city is funding over the next year, among which are continuing road and parks projects, work at the St. George Regional Airport, the construction and completion of new fire stations, a new reservoir and water infrastructure improvements and more.
Road-related projects to be funded in the coming year included the eastward extension of 1450 South to Dixie Dixie via Crosby Way (which includes a new bridge over the Virgin River) for $9.7 million, continuing work on the 3000 East Corridor from 1580 South to Seegmiller Way for $13.1 million, $2.1 million for six new traffic signals, and $3.8 million for general road maintenance, among a plethora of other public works projects.
The St. George Regional Airport will also have $16 million in both city and federal funds applied to the terminal apron expansion and reconstruction project and south connector taxiway and apron project.
Recreation and parks-related projects outlined in the 2023 budget include $3.8 million for the first phase of the Curly Hollow Park regional park in the Tonaquint area, $2.8 million for the Fossil Falls community park, $3 million for the expansion of the pickleball court complex in Little Valley, $3 million to replace the grass at three soccer fields in Little Valley with artificial turf for water conservation purposes, and $1.3 million for the replacement of the St. George Golf Course clubhouse.
Water projects of note include the proposed Graveyard Wash reservoir for the city’s secondary irrigation system for $6.2 million. New water storage tank projects are also listed in the budget. The multiyear expansion of the city’s wastewater treatment plant will also see $7.39 million added to that ongoing project.
“We’re continuing to invest in water and water conservation,” Lenhard said.
Other projects of note include a new city hall and accompanying parking structure in the downtown area for $36 million. This project has been delayed due to complication in finding and procuring a desirable location, Lenhard wrote in the budget’s summary, yet added it appears to be in the city is in the final stages of securing the new location.
Plans are also in the works to renovate the existing city hall and police headquarters on 200 East.
Public Safety highlights
“There is a really big focus this year on public safety,” Lenhard said. “There’s a lot going on.”
Facets of public safety – which includes police, fire and dispatch services – being funded this year are a part of an overall five-year plan focused on growing and supporting these areas in order to keep up with the city’s growth. While overall details of the plan have yet to be released to the public, the budget notes that city officials may consider a property tax increase to help fund future public safety needs. .
City officials anticipate releasing additional details of the five-year plan to the public in the near-future.
As for public safety projects to be funded under the pending 2023 budget, they include the hiring of 26 new public safety personnel – police officers, firefighters and civilian personnel – and the purchase related vehicle for an estimated $5.2 million.
Related vehicles include a new ladder truck and a new pump truck for the Fire Department, and 31 vehicles for the Police Department. Twenty of those vehicles will be replacements while the remaining 11 will be new additions.
Funding is also recommended for a new fire station in the Desert Canyons part of the city for $6 million. A replacement for Station 1, the city’s central fire station located on 1000 East, is also being funded in the 2023 budget to the amount of nearly $3 million. The new location for Station 1 will be at the corner of 400 East and 100 South.
General Fund
The general fund, which is largely used to fund city services such as public safety, parks and recreation, land development and city administration, is projected to be around $102 million, which is a $12 million increase over the current year’s budget. A large chunk of the general fund traditionally goes toward the city’s public safety services, which amounts to 39% in this case.
“The general fund is where we pay for most of those government services that are familiar to our residents,” Lenhard said.
A large contributor to the revenue found in the general fund comes from the sales and property tax the city collects.
While a projection of growth in sales tax has been the norm in recent years, worries over the a potential recession in the next year have led to budget officials projecting a possible decrease of 4.5% in sales taxes. Conversely, property tax collection is expected to increase by 5% based on continuing growth trends.
Combined, property and sales tax make up 53% of the general fund at a projected $54 million.
Other sources of revenue that make up the general fund include city licenses and permits, fines and forfeitures, intergovernmental funds (federal and state grants, road taxes and so on), charges for services, and transfers from other city funds.
Other funds
Other funds that make up the proposed 2023 budget cover the city’s enterprise funds, which are sometimes referred to as proprietary funds. These funds are dedicated to city departments that can be thought of as being run in a businesslike manner, such as the water and power departments. These funds make up 40% of the proposed budget.
Other city funds include special revenue, debt services and internal services.
Planned with economic uncertainty in mind
“We do recognize the uncertainties in the economy right now,” Lenhard said, and noted the same in the proposed budget’s summary.
In addition to inflation and the concerns over a potential recession, there are also lingering supply chain issues and material shortages to deal with, as well as whatever impact Russia’s war with Ukraine may continue to have on international markets.
“We will be paying close attention,” Lenhard said.
Movement on the new city hall and accompanying parking structure are among the projects city officials are holding back for now despite their being funded as they gauge when the proper time to move forward may be. They do not want to start a project only have it stall due to a downturn in economic conditions, the city manager said.
“Timing is going to be a critical issue this year for us,” he said. “We need to make sure that we’ve got the right conditions to get these projects done on time and in budget,”
As the 2023 fiscal year starts July 1, Utah law requires municipalities have their budgets adopted before or on June 30, yet also be subject to public hearing prior to adoption.
The city of St. George will be holding two public hearings for the proposed budget during City Council meetings on June 2 and June 16 at 5 p.m. The budget is typically adopted by the City Council following the second public hearing.
An online copy of the proposed budget can be found on the city of St. George’s website.
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