by Lyle Holmgren, Bill Cobabe, and Curtis Roberts

The pursuit of a safe, healthy, caring, and thriving community is a goal we all share. In Tremonton, this involves many aspects, typically including public safety, clean and reliable water, sewer service, road maintenance, and amenities such as our parks, library, senior center, and food pantry—all of which benefit our community. These services and programs enhance our quality of life and reflect our expectations for the community. Providing these services requires both human and financial resources.

Like other cities and towns, Tremonton generates revenue through taxes, fees, licenses, permits, and grants to cover the ongoing costs of administration, public safety, parks, water, sewer, roads, capital improvements, and facilities such as a senior center, library, and food pantry. These services and facilities incur costs, some of which are significant capital expenditures that may take years to finance. The city needs to maintain a reliable revenue stream to sustain these services.

In June 2024, the city council approved a balanced budget covering the period from July 1, 2024, to June 30, 2025, including all revenues and expenditures for FY 2025. The FY ’26 budget will require council approval in June 2025. Although the city manages enterprise funds that function more like businesses, this article focuses on the city’s Governmental Funds, which rely heavily on taxes, grants, and various fees.

Transparency encourages accountability and informs residents about the city’s revenue sources and expenditures. In summary, an informed public facilitates better discussions and deepens understanding of the city’s services and programs. The full audited budget can be seen at: Tremonton City FY ‘25 Budget

The primary revenue sources that the city utilizes to fund governmental expenditures are outlined below. The financial information presented in this article is derived from the audited Tremonton City Financial Statements dated June 30, 2024.

Sources Of Revenue as a Percentage in General Governmental Funds

Tremonton City FY ’24 Governmental Funds Sources of Revenue
Property Taxes—$3.43 million (23 percent). Property and fee-in-lieu taxes provide the city with a stable revenue source for the personnel and services we depend on. Property tax revenue funds services such as public safety, parks and recreation, senior center, library, food pantry, justice court, cemetery, community events, and city administration.

Energy and Franchise Taxes – $1.23 million (8 percent). Tremonton City levies municipal energy sales and use taxes on the taxable energy (gas and electricity) sold or consumed within city limits. In addition, other taxes include franchise taxes and transient room taxes.

Transportation Capital Projects and RDA#2 Tax Increment—$460k (3 percent).  This includes the property tax increment for RDA #2 (Tremont Center). Transportation capital projects encompass the city’s road tax revenue from the state.

Sales Tax – $3.06 million (21 percent).  The Utah State Legislature permits municipalities to collect a portion of sales tax revenue as an additional funding source to meet growing financial needs. The legislative intent is to utilize this revenue for capital outlay requirements and to fulfill a municipality’s bond obligations. This revenue source is less stable and can be impacted by economic cycles.  In FY ’25, the city allocated approximately 72 percent of the sales tax revenue for capital purchases, including roads, building upgrades, vehicles, and bond payments. In FY ‘26, the city will again consider reallocating a portion of sales tax revenue to capital projects, including roads and other essential initiatives.

Intergovernmental Grants—$1.50 million (10 percent). Tremonton City receives funding from county, state, and federal governments. This revenue encompasses allocations for Class C roads, streets, and grants for senior citizens, public safety, libraries, and promoting tourism.

Charges for Services—$3.23  million (22 percent). Tremonton City’s funding for certain services comes from various sources, including charges for ambulance services, garbage collection fees, charges for senior services, and the food pantry, which supports senior programs and food assistance. Community donations are also vital for maintaining these services. Additionally, revenue is generated from user fees for recreation programs, ensuring access to recreational activities. Park impact fees enhance parks for the community’s benefit. Together, these diverse funding sources uphold the organization’s mission and services.

Licenses and Permits and Fines—$668k (5 percent). This category covers building permits and other development fees. It also includes fines collected by the justice court. These fees are designed to cover the cost of those services and minimize the tax burden on the city residents.

Miscellaneous Revenue—$1.19 million (8 percent). These revenue sources comprise interest earned, Utopia reimbursement, insurance proceeds, and income from property sales. This category also encompasses revenue from donations to public safety, the senior center, the food pantry, culture, parks, and recreation.

At the start of each calendar year, the Tremonton City Council begins crafting budget plans for the upcoming fiscal year. Rather than detailing every aspect of the city’s expenditures (the entire budget can be found at Tremontoncity.org), this article summarizes the expenses related to governmental funds in the FY ‘25 budget and explains the rationale behind these expenditures.  Over the next several months, the city council, management, and departmental directors will formulate the FY ’26 budget, which must be approved in June 2025.

Expenditures as a Percentage from General Governmental Funds

Tremonton City FY ’25 Governmental Funds Expenditures
General Government – $2.11 million (16 percent). City Administration, City Council, Human Resources, City Treasurer, City Recorder, Elections, Planning and Zoning, and Economic Development are necessary to maintain the city’s day-to-day operations.

Public Safety: $5.04 million (38 percent). The Tremonton/Garland Police Department and Building Inspections are essential to Tremonton’s public safety. Currently, the police department employs 21 full-time officers, two civilian staff members, one animal control officer, and one code enforcement officer. The city contracts its building inspection services. The Tremonton Fire Department/EMS employs 10 full- and 25 part-time certified Fire/EMS employees.

Streets: $3.21 million (24 percent). The city allocates funds each year for road operations and maintenance, including snow removal and road repairs. A major expense in FY’24 was the widening and enhancement of 1000 North.

Solid Waste Collection (Garbage collection): $825k (6 percent). This represents the cost of garbage collection services.

Cultural, Parks, and Recreation—$1.48 million (11 percent). Community-wide events unite our residents and strengthen our community’s fabric. Establishing a strong town identity is essential. Parks and Recreation provides open spaces, events, and recreational activities for all ages. Cultural, Parks, and Recreation include: Parks and Recreation, Golf Course, Cemetery, Community Events, and the Library expenses.

Health and Human Services – $623k (5 percent). Our Senior Center provides the elderly with engaging activities, nutritious meals, and opportunities to connect with other seniors. In addition to offering reading resources for all ages, the library hosts programs that help residents learn more about our history and community. The food pantry delivers essential support to our community. Some families may only need a few groceries to last until their next paycheck, while others might be unemployed or unable to work; there are also elderly individuals on fixed incomes and families with young children who require diapers and hygiene products. Regardless of the circumstances, the Tremonton Food Pantry is here to help.

Total Revenue to Governmental Funds—$14.8 million. Total revenue to Tremonton City’s Governmental Funds in FY ’25.

Total Expenses—$13.3 million. Total expenses for Tremonton City’s Governmental Funds in FY ’25.

Excess revenues over expenses total $1.48 million. These savings will be dedicated to future planned expenditures, some of which are significant and will require many years to finance.

Among all levels of government—federal, state, and local—local government has the most significant impact on our daily lives, influencing everything from the water we drink and the roads we drive on to the parks we visit and the public safety measures that protect us. Each of these services, among others, requires personnel and resources for operation and maintenance. Therefore, to ensure our long-term success and sustainability, we must not only maintain but also responsibly improve these services. This responsibility constitutes a public trust.