Annual Budget Retreat

THE WEST VALLEY CITY COUNCIL MET IN ELECTRONIC STRATEGIC PLANNING/BUDGET RETREAT MEETING ON FRIDAY, FEBRUARY 21, 2025 AT 9:39 A.M. AT WEST VALLEY CITY HALL, MULTIPURPOSE ROOM, 3600 CONSTITUTION BOULEVARD, WEST VALLEY CITY, UTAH. THE MEETING WAS CALLED TO ORDER AND CONDUCTED BY MAYOR LANG. THE FOLLOWING MEMBERS WERE PRESENT: Karen Lang, Mayor Lars Nordfelt, Councilmember At-Large Don Christensen, Councilmember At-Large Tom Huynh, Councilmember District 1 Scott Harmon, Councilmember District 2 Will Whetstone, Councilmember District 3 Cindy Wood, Councilmember District 4 STAFF PRESENT: Ifo Pili, City Manager Nichole Camac, City Recorder John Flores, Assistant City Manager Eric Bunderson, City Attorney Colleen Jacobs, Police Chief John Evans, Fire Chief Jim Welch, Finance Director Steve Pastorik, CD Director Dan Johnson, Public Works Director Jamie Young, Parks and Recreation Director Jonathan Springmeyer, RDA Director Sam Johnson, Strategic Communications Director Craig Thomas, Community and Culture Director Paula Melgar, HR Director Harold Moleni, Management Analyst Lauren McPeak, Management Analyst Welcome and Introduction Ifo Pili, City Manager began by expressing gratitude to everyone for attending the strategic planning and budget retreat, acknowledging the effort it took for participants to take time off work to be present. He extended special thanks to Lauren for being in charge of logistics and organizing today's setup and Craig's team for their role in facilitating the  necessary arrangements. Ifo emphasized the significance of today's meeting, articulating that the budget document serves as the juncture where policy-making and daily operations overlap, marking it as a critical component for the Council's work. Ifo further explained the day's structure, noting the intent to foster robust discussions between Councilmembers and staff. He underscored the vital role the Council plays in articulating their vision, as it empowers the staff to align subsequent budgetary decisions and operations with the Council’s overarching goals. This alignment ensures that strategic priorities are effectively translated into actionable plans that benefit City operations and its residents. The day's agenda was structured to be comprehensive and facilitate insightful dialogue among Councilmembers. Ifo noted it would be divided into three segments for optimal discussion. The first segment was to assess "Where we are currently," providing a snapshot of the present financial situation and recent accomplishments. The second segment, "Where we want to go," aimed to envision future goals and strategies for West Valley City, providing a framework for future planning. Finally, the third segment was dedicated to discussions of individual goals from Councilmembers, inviting them to share their priorities, areas of focus, and specific projects they deemed essential for the City's growth. Ifo expressed enthusiasm for the day's proceedings and the opportunity it presented for enhancing collaboration between the Council and City Staff. His introduction set a collaborative tone for the meeting, emphasizing teamwork and strategic foresight as essential to the city's ongoing development. Ice Breaker Activity Lauren McPeak, Administrative Management Analyst, led an icebreaker activity where attendees had to match fun facts to the people in the room. What We Have Done John Flores provided a PowerPoint presentation summarized as follows: - What we have done o Last 18 months ▪ City Manager Retirement ▪ City Manager Hiring ▪ Search Firm Selection ▪ Hiring Process Design ▪ Candidate Review ▪ Interviews ▪ Candidate Selection ▪ Legislative Session ▪ Budget Process - Fiscal Year 2024 Project recap - Fiscal Year 2025 Project recap  - Review o Great progress in managing, upgrading, and purchasing needed assets and services. o How strategic were those decisions? o Were they aligned with the vision for our City? o Are they progressing our City? John Flores delivered an official overview of the accomplishments of West Valley City over the preceding 18 months, commencing with the pivotal administrative transition marked by the appointment of a new City Manager through a comprehensive recruitment process. This transition required significant coordination among departments, particularly in handling legislative session activities. Emphasizing operational achievements, John shared insights into the progress of developing the new budget, which prioritizes evaluating program requests and promoting strategic alignment in decision-making processes. He reviewed prior fiscal efforts, including road improvements on 2700 and 4000 West and the street-sign replacement initiative, while noting delays due to scheduling and infrastructure coordination challenges. John highlighted the essential role of strategic budgeting in alignment with the City's vision, ensuring that financial decisions are made to support long-term objectives. His presentation underscored the importance of careful financial planning congruent with the city's strategic goals, highlighting a continued commitment to effective financial management and strategic development. The Mayor and Council had no further questions. Current Financial Conditions and Projections Fiscal Year 2025 Jim Welch, Finance Director, presented a PowerPoint presentation summarized as follows: - General Fund Revenue and Expenses: $113,340,109 - General Fund Budget Trend - Major Revenue Sources Trend Over Time - Property tax - Overall City Budgeted Expenditures - How it is spent… - Unassigned Fund Balance - Fiscal Year 2025 Unassigned Fund Balance Projection - Summary of Other Operations - Bonded Debt - Lease Debt - Debt Service - Capital Appreciation Bonds UCCC/ Maverik Center - Annual Inflation - Utah Economic Forecast- 2025 and 2026 - Property Tax, MCI and CPI Chart Jim Welch provided a high-level financial overview, covering both the budget and reserves. He emphasized the importance of financial resources, including capital and funding, to sustain infrastructure and services. He encouraged Councilmembers to ask questions and engage in discussion. Jim reviewed the adopted budget, highlighting revenue sources: 39% from sales tax, 30% from property tax, and the remainder from fees, interest, and licenses. He noted that property tax was the only revenue source directly controlled by the city, as determined by state legislation. Jim explained that West Valley City’s portion of the total property tax bill was approximately 22%, with the majority allocated to schools, the county, and state education funds. He outlined major expenditures, with over 50% allocated to public safety. He also clarified the "nondepartmental" budget category, which included transfers and obligations such as the $4.6 million annual payment to Utopia (increasing by $200,000 per year up to $6 million) and $3.5 million in transportation sales tax revenue. Additionally, Jim noted a recent 0.2% county sales tax increase, expected to generate approximately $1.9 million annually for road projects starting the next fiscal year. Regarding city facilities, he explained that the Cultural Center and Fitness Center were subsidized by the general fund, with $1.4 million allocated to the Cultural Center and $1.6 million to the Fitness Center. He clarified that while the Fitness Center operated as a separate fund, it still required financial support. Councilmembers asked about the financial structure of golf courses, which, unlike the Fitness Center, were generally self-sustaining. In past years, the City transferred funds to cover golf course debt, but since the debt was paid off, they now mostly operated without subsidies. However, golf courses lacked sufficient liquid cash for large-scale improvements, requiring city assistance for projects like bridge repairs. Jim confirmed that the subsidies for the Cultural Center and Fitness Center varied annually rather than being fixed amounts. Over time, a portion of the property tax from the general fund had been allocated to subsidize the fitness center. Since its debt service had been fully paid off, the $1.4 million transfer continued to support its operations, as the facility did not generate enough revenue to sustain itself. Jim presented data showing the city’s general fund trends over the past 20 years, noting an average annual growth rate of 7.3%. He explained that while inflation typically ranged from 2.5% to 3%, the city’s growth rate was higher due to population growth and the increasing demand for services such as police, fire stations, and infrastructure. Over the past two decades, the number of fire stations had increased from three to six, significantly impacting operational costs. He outlined historical property tax increases, mentioning that the first major operational increase occurred in 2006, rising by 65%, equating to an additional $7 million. This increase helped the city recover from the Great Recession. Despite periodic tax increases, city revenue growth remained steady, which Jim attributed to the necessity of governance and responsible fiscal management. Jim reviewed the natural growth of revenue sources, stating that sales tax had grown at an average annual rate of 4.8%, while property tax had increased by 3.3%. He clarified that state law permitted revenue collection from the previous year plus new growth, which included newly constructed properties. However, general property value increases did not directly lead to higher property tax revenue since tax rates were adjusted accordingly. He also addressed declining utility tax revenue, explaining that it had suffered due to regulatory changes and consumer behavior shifts. Taxes from natural gas, telephone services, and cable TV had decreased, affecting overall revenue from these sources. Additionally, Jim discussed the judgment levy, explaining that when large property owners successfully appealed their property tax assessments, the city was required to issue rebates. In one case, the city had to refund approximately $2.8 million in a single year, which significantly impacted the budget. To mitigate this, the city imposed a temporary judgment levy through the truth-in-taxation process to restore financial balance. He emphasized that this was not an ongoing tax increase but rather a rebalancing mechanism to maintain budget stability. Jim concluded by highlighting the city's approach to managing property tax increases, noting that adjustments were typically made every five to six years to maintain financial stability. Councilmember Whetstone inquired about how grants are accounted for in the city's revenue. Jim Welch clarified that while grants are counted as revenue, they are not considered operational revenue. He explained that grant funds are reserved for specific projects and not used for general operations. Jim also mentioned that transportation project funds are managed separately to ensure proper allocation. Councilmember Harmon requested a year-over-year comparison of grant amounts received, and Jim agreed to compile this data. Jim discussed the impact of building permits on property tax revenue, explaining that permits indicate new growth, which influences property tax collections. He outlined the components of property tax, including real and personal property, and noted that equipment depreciation affects tax revenue. Jim presented an overview of the total city budget, stating that the general fund comprised 58% of the total, followed by the Redevelopment Agency and other operations such as the arena, utilities, and fitness center. He confirmed that golf course expenditures covered full operations, including revenue and expenses, and were tracked separately from the general fund. He reviewed the city’s expenses, highlighting that 47% were allocated to personnel costs, with additional expenditures in debt service, professional and technical services, and other operational needs. Jim also discussed the unassigned fund balance, explaining its role as a financial reserve. He noted that the city maintained a healthy fund balance, with an audited unassigned balance of $21 million for the prior year, though projections for 2025 indicated a decrease to $16 million. Legal boundaries required a minimum reserve of 5% ($5.6 million) and a maximum of 35% ($39 million). Jim explained that if reserves exceeded the maximum, funds could be allocated to capital improvement projects (CIP). Jim provided an update on revenue shortfalls, stating that utility taxes, building permits, and justice court revenue were lower than projected. He also noted that $1.5 million of reserves were planned for debt payments. He addressed budget impacts, including rollovers from unfinished projects, the wind-down of the West Valley Arts Foundation requiring $2.2 million to cover deficits, and the $672,000 TRCC match for the Veterans Memorial Project. He emphasized the importance of identifying funding sources when approving new projects to avoid unplanned budget openings. Councilmember Whetstone asked about the percentage of total expenditures allocated to debt service and how it compared to recommended levels. Jim explained that the city had a statutory debt limit imposed by the state, but it applied only to general obligation debt. Since the city did not have any general obligation debt, its current debt service level of 8% was well below the statutory limit of 23-25%. Jim noted that bond rating agencies focused more on the city's revenue sources for debt repayment, payment history, and fund balance management rather than just the debt percentage. He emphasized the importance of planned fund balance reductions rather than unexpected shortfalls. Jim also discussed fund balance policies, noting that in 2005, the council had set a floor of 12.5% for reserves but had not formally established a new fund balance policy since. He recommended that the council review and adopt a written policy, which would define acceptable spending levels, minimum thresholds, and the process for handling surplus funds. Regarding community services funding, Jim explained that multiple operations, including the Family Fitness Center and the Cultural Center, were grouped under the Community Services Fund. He provided financial details on these entities, highlighting that: • The Family Fitness Center had $2.7 million in revenue and $5 million in expenses, resulting in an operating loss of $2.2 million. A $1.4 million general fund subsidy reduced the net loss to $800,000, with an accumulated fund balance of $2 million. • The Cultural Center’s funding structure resulted in an accumulated deficit of over $1.1 million. • Streetlights and sanitation services built fund balances for future projects, which was standard practice. • The arena had become profitable over the last two years, showing positive financial trends. • The West Valley Arts Foundation had an accumulated deficit of approximately $2.2 million. The city planned to write off this amount upon the foundation’s dissolution. Jim also addressed questions about financial trends, explaining that operational losses at certain facilities had accumulated over multiple years. He stated that budget discussions would need to determine the appropriate level of subsidies versus efforts to increase revenue through higher fees or operational efficiencies. Councilmember Whetstone inquired about the city’s fire station expansion over the past 20 years, noting the increase from two to six stations. He asked whether additional stations would be needed as the city continued to develop and how they would be funded. Jim confirmed that the fire department had requested another station, emphasizing that fire stations were costly but essential for maintaining service levels. He explained that the city previously bonded for two stations but managed to construct three through efficient design and cost management. He stated that future fire station funding would likely require bonding unless reserves were utilized. He also noted that adequate fire coverage could influence homeowners’ insurance rates, particularly in areas near wildlands, where insurance costs had risen significantly. City Manager Ifo Pili addressed concerns regarding the city's bond rating and the potential need to issue bonds for fire station funding. He explained that each bond was rated individually and that the city’s lack of general obligation debt placed it in a strong financial position. He noted that general obligation bonds, typically backed by property taxes, were often viewed favorably by rating agencies due to the city's ability to control revenue. Ifo assured the council that the city's financial standing remained stable and that the 8% debt service ratio was not a cause for concern. Jim further elaborated on the city’s bond rating, clarifying that while the city itself did not have an official bond rating, its bonds had been rated in the "AA" category. He informed the council that Fitch had recently requested updated financial information as part of its annual bond rating surveillance process. He emphasized that maintaining a strong bond rating was crucial for securing favorable rates on future capital projects. Demographics Steve Pastorik presented a PowerPoint Presentation summarized as follows: o Demographics by race o Age o Educational Attainment o Median Household Income o Per capital income o Poverty Level o Rental Households paying 35% or more of income on rent o Vehicles per household o Commuting to work Steve Pastorik provided an overview of the city’s demographic trends. He discussed how the population had nearly doubled since incorporation, with significant changes in its composition. The Hispanic population had increased, while the percentage of White, non-Hispanic residents had declined. Household sizes remained stable despite national trends showing a decrease. He noted that the percentage of households speaking only English at home had decreased, and approximately one-quarter of residents had been born outside the U.S. Compared to the county, state, and nation, West Valley City had a younger population, a larger average household size, and a higher percentage of Hispanic residents. Educational attainment had improved over time, though the city still lagged behind county and state averages. Household incomes had increased, but per capita income remained lower due to larger household sizes. Poverty rates had risen from 7% in 1980 to approximately 12%. Steve also addressed housing affordability concerns, noting that the percentage of renter households spending more than 35% of their income on rent had increased from 31% in 1980 to 41%. He highlighted transportation trends, showing that car ownership remained high, contributing to ongoing discussions about parking needs. While work-from-home rates had risen, they remained lower than county and national averages due to the nature of available jobs in the city. Moderate Income Housing Trends Steve Pastorik, CD, presented a PowerPoint presentation summarized as follows: - Moderate income housing in West Valley City - Why do we use U.S. Census Bureau data? o Updated annually o Addresses rented and owned housing o Quantifies how many housing units are available at different price/rent ranges o Available for all cities which allows comparison o No cost to the City - Disclaimers on Census Data o Owner-occupied values include all for-sale housing: mobile homes, condos, townhomes, single family homes, etc. o Renter-occupied values include all for-rent housing: mobile homes, condos, townhomes, single family homes, etc. o Home values are based on self-reported estimates from homeowners, which may not always reflect market values. o The 5-year estimates used by staff reduce the margin of error but tend to be lower than the 1-year estimates due to recent significant value appreciation in recent years. - What has changed? Steve updated the council on the ongoing revision of the city's Moderate Income Housing Plan. He provided a preview of key data, noting that the city's long-held perception of having a large supply of affordable housing had changed significantly. Historical Housing Affordability (2014 vs. 2023) • In 2014, nearly 90% of renter-occupied housing and 80% of for-sale housing were considered affordable (affordable defined as within reach for those earning 80% of the area median income). • At that time, over 80% of the total housing stock in the city was classified as affordable. • However, by 2023, while rental housing remained affordable, the affordability of for-sale housing had declined dramatically. • Currently, only about one-third of the city’s housing stock is considered affordable. However, Steve suggested this figure may be overestimated due to lagging census data. Methodology & Data Limitations • The U.S. Department of Housing and Urban Development (HUD) sets annual income thresholds for determining affordability. • The city calculates affordability based on 30% of an 80% Area Median Income (AMI) household’s income to determine the maximum affordable rent or mortgage.  • Census data is used because it is available annually and provides comparative data across cities, but it has limitations: o Self-reported home values can be inaccurate. o All for-sale housing types (condos, townhomes, single-family homes) are lumped together, as are all rental units. o Single-year data has a high margin of error, while five-year averages trail market trends. Income Growth vs. Housing Costs • From 2014 to 2023, moderate-income household earnings increased by 54%, from $55,000 to nearly $85,000. • In 2014, a household at 80% AMI could afford $1,400 in rent/mortgage; in 2023, that increased to $2,100. • However, actual housing costs have far outpaced income growth: o Median rent increased from $920 (2014) to $1,350 (2023), though real estate data suggests an even sharper rise. o Home values increased by approximately 135%, while income rose only 54%. o County assessor data shows a home value increase of 135%, while MLS market data shows a 32% increase in actual home sales prices. o Mortgage interest rates rose from around 4% in 2013 to nearly 7% in 2023, further worsening affordability. Homeownership vs. Rental Split • In West Valley City, approximately 70% of households are owner-occupied, while 30% are rentals. • This ratio is similar to Salt Lake County overall. Steve concluded by reinforcing the impact of rising home values and interest rates on affordability, emphasizing that for-sale housing had shifted from being highly affordable to largely unattainable for many residents. Do We Want to Grow? Steve Pastorik presented a PowerPoint presentation summarized as follows: o Residential Development Opportunities Under Current Plan o Building Permit Fee Revenue o Salt Lake County Residential Building Permits o Office Vacancy o E-Commerce o Housing Shortage ▪ The latest estimate from the Governor is that the State is short nearly 50,000 housing units. ▪ Sample of State bills being considered: • SB152: Prohibits cities from requiring garages on single family homes and duplexes  •HB88: Makes attached or detached ADUs on a single family home lot a permitted use in all residential zones • HB90: Makes homes on a 6,000 square foot lot a permitted use in all residential zones o If we want to continue to grow, we can… ▪ Allow more residential development through zoning in the following locations: • Surrounding TRAX stations • Along 3500 South • Along Redwood Road • Lake Park/Highbury ▪ These changes would allow existing single family home neighborhoods to remain intact. ▪ Be more flexible with zoning standards for single family homes by: • Allowing ADUs east of 4000 West • Considering detached ADUs • Considering a smaller minimum lot size for flag lots • Reducing or removing the 1-acre PUD restriction • Allowing the use of private streets • Reducing lot frontages • Reducing setbacks • Allowing zones other than RE on 2+ acre properties ▪ Be more flexible with zoning standards for multi-family housing by: • Allowing the use of private streets • Reducing or removing the 1-acre PUD restriction • Reducing landscaping and recreation space requirements • Reducing townhome parking requirements Steve Pastorik presented a map outlining potential areas for residential growth, categorizing land into three types: green (entitled land with approved development but not yet built), blue (vacant land with planned residential zoning but no approvals), and orange (developed land proposed for residential redevelopment). He explained that the city had approximately five years’ worth of approved housing projects, with an additional three years of potential growth on vacant but unentitled land, and another two years from speculative redevelopment areas—totaling a potential growth window of 5-10 years. Steve discussed permit revenue, noting that it had fluctuated between $2.5 to $3 million over the past five years but had dropped significantly to approximately $900,000 this fiscal year, likely due to high interest rates. He presented data on residential permits in the county, showing a historical shift from single-family dominance to an increase in multi-family housing, with a sharp decline in new permits in 2024. West Valley City followed a similar trend, with multi-family housing outpacing single-family developments. Regarding office space, Steve cited data from CBRE indicating that Salt Lake County had a 24% office vacancy rate, while West Valley City's rate was at a high 54%, suggesting that new office construction was unlikely in the near future. He also discussed retail trends, highlighting that e-commerce sales had grown from 7% of total U.S. sales in 2015 to 16% by late 2023. This shift had led retailers to be more cautious with store expansion. Finally, Steve referenced data from the governor’s office estimating a housing shortage of approximately 50,000 homes in Utah. He mentioned ongoing legislative discussions around housing affordability, including potential mandates to prevent cities from requiring garages, allowing detached accessory dwelling units (ADUs), and permitting smaller 6,000-square-foot lots. Steve presented several suggestions for the council to consider regarding residential growth and zoning flexibility. He emphasized that the city's remaining growth potential depended on zoning decisions—more flexibility could extend growth, while restrictions could shorten it. He proposed allowing higher-density housing near transit stations, along busy streets like 3500 South and Redwood Road, and around Lake Park and the high school. This approach would concentrate growth in non-single-family areas, preserving existing neighborhoods. Steve also suggested expanding accessory dwelling unit (ADU) allowances beyond the area west of 4000 West to include the entire city. He noted that some cities permitted detached ADUs as an option. Regarding infill development, he pointed out that the city currently required flag lots to be at least 12,000 square feet. Reducing this requirement could encourage more residential development. Similarly, the requirement for planned unit developments (PUDs) to have at least one acre of property could be reconsidered to allow more flexibility. He addressed the challenges posed by requiring public streets in developments, stating that these requirements significantly limited design flexibility due to their larger size and stringent design standards. This had made some infill projects nearly impossible. Steve also suggested increasing flexibility in lot frontages and setbacks, noting that developers frequently inquired about maximizing housing density rather than requesting large lots. Regarding multifamily development, he reiterated that private street considerations were similar to those for single-family developments. He also pointed out that landscaping and recreation space requirements reduced the number of buildable units. Additionally, he highlighted that the city's townhome parking requirements were significantly higher than in most other cities, leading to pushback from developers. Councilmember Harmon noted that rezoning options were available, including RE and RS zoning, with RS allowing for higher density if sustainability measures were included. Mayor Lang mentioned a legislative bill that aimed to affect parking lot mixes but was not progressing. Steve Pastorik stated that the affordability issue would persist, as housing prices typically do not decrease significantly once they reach high levels. Councilmember Wood expressed concerns about vacant land and emphasized the need for development to provide housing opportunities. She acknowledged the appeal of large homes but recognized the economic challenges that hinder development. Jim Welch raised concerns about the decline in building permits and its impact on tax revenue, referencing other cities facing similar issues. City Manager Ifo Pili explained that balancing the budget on building permits was not advisable and emphasized the importance of diversifying revenue sources. He also noted that higher-density housing near commercial areas could support redevelopment and strengthen the sales tax base. Councilmember Whetstone stressed the importance of carefully utilizing the city's remaining land, advocating for high-quality residential development to retain residents. Mayor Lang and others echoed the need to provide larger homes to prevent residents from moving to other cities. Councilmember Harmon and Mayor Lang agreed that higher-density areas should be developed strategically, with a focus on improved public transit. UTA’s role in providing better transportation options was discussed, with concerns raised about the lack of convenient routes and accessibility. Councilmember Christensen shared a personal experience highlighting inefficiencies in the current bus system. The discussion concluded with a focus on flexibility in zoning regulations to accommodate well-designed neighborhoods with appropriate lot and home sizes. Ifo Pili emphasized that the upcoming General Plan update would help identify areas best suited for different types of development. Economic Development Budget Jon Springmeyer, Economic Development Director, presented a PowerPoint presentation summarized as follows: o Four Economic Growth Sectors: ▪ Office ▪ Industrial ▪ Retail ▪ Multi-Family o The Good: Industrial Sector ▪ Leading source of property tax in WVC ▪ Continued potential for growth, particularly in NW EDA, North Central EDA, and Southwest EDA ▪ New development in the works: • NW EDA: ARA F 30.36 acres  • SW EDA: Moca Business Park Building 1 10.48 acres o Industrial Sector Taxable Value and Growth ▪ NW EDA: $43.4M (2017) → $897.8M (2024) ▪ North Central EDA: $44.6M (2007) → $251.7M (2024) ▪ Southwest EDA: $64.1M (2007) → $385M (2024) o The Bad: Office Sector Challenges ▪ Historic high vacancy rates in Salt Lake metro • 24.2% in Q3 2024 • 23.7% end of year ▪ Strong demand for Class A spaces, struggling Class B and C ▪ Over 50% vacancy in WVC’s market, mainly in Class B and C spaces o Historical Direct, Sublease, and Total Availability o Historical Net Absorption by Asset Class o Market Statistics by Submarket o Office Market Trends ▪ The future of Class B and C office spaces increasingly leans toward residential conversion or redevelopment. • Nationwide: office-to-residential conversions are rising o 23,100 new apartments created in 2022 o 70,700 projected in 2025. • Locally: five projects are under construction or recently completed in Downtown and East Central, contributing 768 new residential units by 2025. o The Opportunity: Retail & Multi-family Interlinked Growth ▪ Retail is a major source of revenue but volatile (39% of total city revenue) ▪ Multi-family growth directly tied to population trends, supporting retail growth o Retail Sales Tax Distribution ▪ Sales Tax Distribution • Total Sales Tax in WVC: 7.25% • Local Option: 1% o 0.5% based on Point of Sale (POS) o 0.5% based on Population ▪ Breakdowns: • Point of Sale (POS) o Sales occurring in WVC businesses or online purchases destined for WVC contribute to the 0.5% POS sales tax. • Largest contributors (confidential by state law) include groceries, new car sales, direct-to-consumer, and construction equipment sectors. ▪ 80/20 Rule (Pareto Principle) • 80% of sales tax revenue is generated by just 2% of businesses. • 25% of total city sales tax revenue generated by Top 10 businesses alone  o Population Growth & Sales Tax ▪ WVC currently receives nearly a full 0.5% sales tax share from population allocation. ▪ A stagnation in population growth will lead to decreasing retail revenue ▪ Population growth drives retail demand, reinforcing the “retail follows rooftops” principle o Conclusion & Path Forward ▪ The city's economic development outlook presents a combination of challenges and opportunities: • Industrial Sector: Strong revenue contributor with continued growth potential. • Office Market: Facing challenges, but office-to- residential conversions provide revitalization prospects. • Retail & Multi-Family: Growth is closely linked to population trends, presenting opportunities for expansion. • Strategic Approach: By navigating economic trends thoughtfully, the city can maintain a balanced and sustainable development trajectory, ensuring long-term prosperity. Jon Springmeyer categorized economic development into industrial, commercial office, retail, and multifamily sectors, noting that single-family homes don’t factor into growth calculations due to their financial offsetting effects. The industrial sector has seen extraordinary expansion, largely driven by the rise of e-commerce and the city’s strategic location with multiple freeway access points and proximity to the airport. Since 2017, industrial property values in different economic development areas (EDAs) have skyrocketed, with some areas seeing nearly 2,000% growth. Major projects, including new developments in the Northwest, North Central, and Southwest EDAs, continue to fuel this sector’s success. Conversely, office space presents a significant challenge. With a county-wide office vacancy rate of over 24% and local vacancy rates among the highest in the region, the shift to remote work has led to substantial job losses in call center-based office buildings. Properties like the Discover Card and SPS buildings, once filled with thousands of employees, are now largely empty. National trends suggest converting lower-tier office spaces into residential units, though Pili did not advocate for this approach but acknowledged that developers are beginning to propose such conversions in West Valley. Jon stated that retail remains a vital revenue source, accounting for 39% of the city’s income. However, it is inherently volatile compared to property taxes. Sales tax distribution depends both on point-of-sale transactions and population-based allocations, meaning that slower population growth relative to the state average could impact future revenues. The city’s economy benefits from major sales tax contributors in grocery, automotive, and direct-to-consumer sectors, but a heavy reliance on a small number of top generators creates some vulnerability.  Jon indicated that population trends will shape the future of both retail and multifamily development. Retail growth depends on new housing since businesses require a sufficient customer base to justify expansion. Additionally, economic sustainability depends on maintaining a balanced flow of workers into and out of the city. Industrial growth remains strong, but office space struggles, and retail and multifamily housing present both challenges and opportunities as West Valley approaches buildout. Councilmember Huynh asked how the council could support economic development efforts. Jon responded by mentioning the city's ongoing growth in the restaurant sector, noting the excitement around new openings, including a second Jack in the Box and other upcoming establishments. While these additions enhance the city's appeal, they don’t significantly impact the city's revenue balance, but they do contribute to overall desirability. Councilmember Wood highlighted the city's many vacant office buildings and mentioned a proposal to convert one into rental units, noting that such buildings often have large parking lots that could present opportunities. Jon acknowledged the issue and pointed to the Discover and SPS buildings as two distinct cases. Discover’s building is massive and costly to repurpose, with no current proposals for residential conversion. The SPS site, however, has attracted developer interest for potential amenities that could complement the Maverick Center. Jon discussed broader trends in repurposing office spaces, such as turning industrial buildings into indoor sports facilities or food courts. Some cities have even repurposed office buildings for government use, which, while removing them from the tax rolls, still generates economic activity by bringing people into the area to work and spend money. He referenced Taylorsville’s experience with the American Express building, where an initial tax revenue loss was later offset by increased local spending. Mayor Lang noted that nearby developments can also benefit West Valley, as workers and visitors frequent the city's restaurants and shopping areas. Jon concluded by emphasizing the need for creative solutions to address office space challenges while continuing to capitalize on the city's strengths, particularly in industrial development and the Northwest EDA projects. The Council took a lunch break at 12:23 PM. The meeting resumed at 1:33 PM. Dr. David Madsen led an engaging discussion focused on strategic visioning and long-term planning for West Valley City. He began by expressing his enthusiasm for the conversation and emphasized the importance of thinking ahead when it comes to budgeting and city development. Dr. Madsen asked that City staff and Councilmembers reflect on what makes West Valley City unique, discussing its growth, proximity to the airport, and the diverse experiences it offers. Employees and Councilmembers shared their perspectives on how the city has evolved and their motivations for serving in local government, despite its challenges. To illustrate the power of vision, Dr. Madsen played a segment from Dr. Martin Luther King Jr.’s I Have a Dream speech. This sparked a conversation about the role of imagery, shared values, and emotional connection in inspiring change. Attendees were then divided into breakout groups, where they were asked to envision the future of West Valley City. Rather than focusing on specific policies, they were encouraged to dream big and think about how they would like to shape the city’s future. Dr. Madsen emphasized the importance of having a clear vision before taking action. The insights gathered from the breakout groups will help guide strategic planning and budgeting discussions moving forward. Future meetings will continue to refine and build upon this vision. The Council took a break at 2:03 PM. The meeting resumed at 2:17 PM. Dr. Madsen emphasized the importance of imagery in shaping aspirations and asked participants to imagine scenarios that capture their hopes for the city. Participants shared a variety of visions, including a community where employees from other cities come to train with local police, children playing safely in neighborhoods, business owners feeling like they’ve won the lottery when securing a location, and diverse friendships that expose families to new cultures and foods. As breakout groups presented their ideas, common themes emerged. Many expressed a desire for a clean, safe, and connected community with strong infrastructure, well- maintained roads, and more housing opportunities. The excitement around redevelopment and economic growth was evident, with a focus on welcoming businesses, supporting job opportunities, and capitalizing on the city's proximity to key locations like the airport. Staff and Council also highlighted the city's diversity, world-class food scene, and strong sense of community pride. A recurring sentiment was the need to shift perceptions of West Valley City, ensuring its positive attributes—such as low crime rates, vibrant neighborhoods, and family-friendly environments—are widely recognized. The incoming hospital was seen as a major opportunity to attract high-earning professionals to live in the city rather than just work there. After group discussion the following themes were identified: - Reputation - Prosperity - Attractiveness - Diversity - Community  Dr. Madsen emphasized the importance of following through on ideas rather than letting enthusiasm fade. He stressed the need for a clear growth plan and implementation strategy, ensuring that commitment translates into action. Ifo supported this by highlighting that execution should involve collaboration across all levels, from policymakers to department heads. Mayor Lang emphasized that strategic goals should guide daily decisions, including zoning and other policy matters. To reinforce this, there was a suggestion to include the city’s core goals as a footer in meeting agendas, serving as a constant reminder of priorities. Ifo stressed the importance of defining short- and long-term steps for the city’s growth, ensuring a structured approach for the next year, five years, and twenty years. Dr. Madsen also emphasized that successful organizations communicate their vision continuously. He warned against the diffusion of responsibility, where lack of accountability leads to stagnation. He was encouraged by the common themes emerging from the discussion, indicating strong alignment among leadership on the city’s future direction. MOTION TO ADJOURN Upon motion by Councilmember Huynh all voted in favor to adjourn. THERE BEING NO FURTHER BUSINESS OF THE WEST VALLEY COUNCIL THE STUDY MEETING ON FRIDAY FEBRUARY 21, 2025 WAS ADJOURNED AT 4:02 PM BY MAYOR LANG. I hereby certify the foregoing to be a true, accurate and complete record of the proceedings of the Strategic Planning Meeting of the West Valley City Council held Friday, February 21, 2025 _______________________________ Nichole Camac, MMC City Recorder THE WEST VALLEY CITY COUNCIL MET IN ELECTRONIC STRATEGIC PLANNING/BUDGET RETREAT MEETING ON FRIDAY, FEBRUARY 22, 2025 AT 9:39 A.M. AT WEST VALLEY CITY HALL, MULTIPURPOSE ROOM, 3600 CONSTITUTION BOULEVARD, WEST VALLEY CITY, UTAH. THE MEETING WAS CALLED TO ORDER AND CONDUCTED BY MAYOR LANG. THE FOLLOWING MEMBERS WERE PRESENT: Karen Lang, Mayor Lars Nordfelt, Councilmember At-Large Don Christensen, Councilmember At-Large Tom Huynh, Councilmember District 1 Scott Harmon, Councilmember District 2 Will Whetstone, Councilmember District 3 Cindy Wood, Councilmember District 4 STAFF PRESENT: Ifo Pili, City Manager Nichole Camac, City Recorder John Flores, Assistant City Manager Eric Bunderson, City Attorney Colleen Jacobs, Police Chief John Evans, Fire Chief Jim Welch, Finance Director Steve Pastorik, CD Director Dan Johnson, Public Works Director Jamie Young, Parks and Recreation Director Jonathan Springmeyer, RDA Director Sam Johnson, Strategic Communications Director Craig Thomas, Community and Culture Director Paula Melgar, HR Director Harold Moleni, Management Analyst Lauren McPeak, Management Analyst Ifo Pili opened by expressing gratitude to the mayor, council, and staff for their participation in the meeting, acknowledging their time and effort. He recognized the commitment of both elected officials and city employees, highlighting the importance of their presence in making these discussions productive. He also acknowledged the sacrifice of staff members attending the meeting on a Saturday and expressed appreciation for their dedication. John Flores echoed appreciation for the staff and everyone in attendance, acknowledging that working on a Friday and part of a Saturday may not have been ideal. However, he emphasized the value of these discussions, highlighting how beneficial they have been for collaboration and decision-making. He noted that the council had expressed gratitude for staff participation, including during informal discussions at dinner the previous night. He reassured everyone that their involvement was truly appreciated and contributed to the overall success of the meeting. Ifo discussed the budget kickoff process, emphasizing collaboration among the budget team, department heads, and Councilmembers. He acknowledged Jim and his team for their flexibility in aligning the budget approach moving forward. He encouraged Councilmembers to engage directly with departments when they have questions about program modifications, emphasizing the importance of open communication and transparency throughout the budget process. He reiterated the value of meeting in person to discuss city priorities and budget decisions, both literally and figuratively. As the Council moves forward, he encouraged them to voice their goals, whether broad, such as focusing on a department or citywide values like reputation and prosperity, or specific, such as addressing long-standing infrastructure concerns. Ifo outlined the next steps, which include reviewing program modifications submitted by staff. He assured the Council that the budget process would remain open to discussion, allowing for adjustments based on their input. He emphasized the importance of open dialogue between department heads, staff, and the council, ensuring that concerns and disagreements can be discussed transparently. Finally, he explained that after gathering input from council members, the budget committee would review and incorporate their feedback as needed. He underscored that while the budget retreat is only a portion of the overall process, it plays a crucial role in shaping the city's priorities. The session would continue with council members sharing their interests and project priorities in an organized format, with Lauren taking notes to summarize key points. Mayor Lang introduced an opportunity for the city to acquire three church buildings that are being vacated due to church consolidations. These buildings could be repurposed as community resource centers (CRCs), removing current restrictions on their use and allowing expanded community programs. The church would remove religious elements, leaving the buildings as functional spaces for city programs. Ifo Pili noted that one property includes six and a half acres of land and gym facilities that could be utilized for recreation. Mayor Lang added that the Lighthouse Church, one of the buildings in question, has received public interest for preservation as a historical site, and acquiring it would serve dual purposes—maintaining its presence while addressing needed repairs. She noted that the City is assessing maintenance requirements before proceeding. The Council discussed locations, costs, and the potential impact of the acquisition. They noted that the church has sold other properties for significantly higher prices, making this a favorable opportunity for the City. Some concerns were raised about the long-term sustainability of the "My Hometown" program, which currently operates with volunteers. If the program were to dissolve, the City would need to determine how to maintain and manage the facilities. Councilmembers expressed general support for the proposal, recognizing that shifting community services to city-owned buildings would increase accessibility and engagement. The discussion emphasized ensuring a transition away from religious affiliations to a broader, community-centered model. The Council agreed on the importance of expanding these services across West Valley and will continue evaluating the financial and operational feasibility of the acquisition. Craig Thomas provided an update on the My Hometown initiative, emphasizing the goal of making the program self-sustaining by empowering resident leaders. Volunteer participation has increased, particularly in the Central Valley View area, and there are ongoing efforts to expand the program into additional neighborhoods, with South Granger being a primary focus. He stated that these buildings would provide neutral spaces, removing religious branding to create a more inclusive environment. Unlike the current limited-use facilities, these buildings could support programming six days a week. One location, the Light House building, includes a six-acre lot that could enhance city parks and recreation opportunities. Financial considerations were also addressed, with the city negotiating rental agreements at approximately $2,000 per month per building, with an option to purchase after two years. To manage costs, officials are exploring a staggered purchase plan. Additional expenses, including plumbing repairs and technology upgrades, are expected, but funding efforts are underway through corporate sponsorships and community donations. Craig stated that the Interfaith Council has excelled in increasing volunteer participation and fostering collaboration among different faith groups. However, some religious organizations have hesitated to participate fully due to events being held in LDS-affiliated buildings. Establishing neutral spaces is seen as a way to encourage broader engagement. Next steps involve finalizing rental agreements, securing funding through local businesses and sponsors, and identifying future locations for program expansion. Ifo expressed support for acquiring the former church buildings, emphasizing the significant value the city would gain. He noted that purchasing equivalent land alone would cost millions, making the deal an opportunity to secure valuable gym and classroom spaces that the city could not otherwise afford. He estimated the equity being gifted to the city could be around six to seven million dollars. Beyond My Hometown’s use, these spaces could support broader community activities, including Scout troops and youth programs. The available land could also alleviate pressure on existing parks and recreation facilities, potentially relocating some city recreation programs. He reiterated that even if My Hometown were to dissolve, the city would still benefit from these buildings, ensuring a lasting positive impact. Councilmember Huynh emphasized the importance of My Hometown in shaping West Valley City’s reputation and fostering community engagement. He stressed the need for a strong public relations strategy to attract more people to the city's website and ensure consistent, engaging content. He suggested that, beyond major stories, the city should also share smaller, everyday stories to maintain audience interest and encourage regular visits. Tom called for increased collaboration with local media outlets, including newspapers and TV channels, to counter negative perceptions of West Valley City. He shared concerns that some newcomers and businesses arrive with preconceived negative notions about the city, which he believes need to be actively challenged. He urged city officials to work collectively to improve the city's online presence, making it more appealing and user-friendly, and encouraged accountability in these efforts to elevate West Valley City's reputation to a higher level. Councilmember Harmon expressed support for recent efforts to transfer certain city assets, such as the housing authority, to the county, aligning with his goal of shifting responsibilities the city shouldn't manage to entities better suited for them. He highlighted the core functions of city government, including land use regulation, public services, law enforcement, and the development of public spaces, stressing that these should remain priorities. He proposed evaluating city-owned assets to determine whether they are generating sufficient revenue or if selling them could create a more sustainable financial model. Councilmember Harmon suggested that selling assets and investing the proceeds could yield significant annual returns, potentially funding infrastructure projects like fire stations and parks without relying on bonds. He also considered improving the efficiency of city-owned properties, such as golf courses or the Maverik Center, to ensure they generate enough revenue to justify keeping them. His main focus was on securing financial stability through strategic asset management to support essential city services. Mayor Lang acknowledged these financial strategies and praised recent moves to optimize city funds, stating that they have been more effective than ever before. Jim Welch provided an overview of the city's financial management strategies, emphasizing a balance between maximizing returns and maintaining liquidity. He explained that the city primarily invests in the state treasurer’s pool (PTIF) due to its safety and competitive returns. A small portion of funds, around $5 million, has been managed by an investment organization, but the city is in the process of transitioning it to another entity for potentially better returns. However, historical performance suggests that external managers may not significantly outperform the city’s own investments. The city also invests bond funds in treasuries or agency certificates to ensure they generate returns while remaining secure. Jim highlighted the importance of liquidity, allowing the city to respond to unexpected financial needs without having to sell off securities. Ifo elaborated on the city’s approach to managing upcoming bond payments, stating that while purchasing additional bonds had been considered, current interest rates make existing investments competitive. The city has about two fiscal years to finalize its strategy before a significant bond payment is due. Jim added that these specific bonds have unusually high interest rates—over 6%—compared to the city’s other investments, and refinancing efforts have been made wherever possible to secure lower rates. The Council discussed the city's financial strategy and the balance between maintaining public services and managing assets efficiently. Councilmember Huynh emphasized the importance of focusing on services for residents rather than competing with the private sector, praising past efforts to sell city-owned businesses like a hotel for a profit. There was broad agreement that while some city assets, like golf courses and cultural centers, do not generate significant revenue, they still provide value to the community. The fitness center, for example, operates at a loss but is considered an essential public service rather than a profit-driven entity. The Council also discussed how the city strategically handles bonds to secure better interest rates. Ifo highlighted the importance of bundling projects together to minimize costs and tying non-essential services to essential ones, like fire stations, to improve borrowing terms. Mayor Lang and others stressed that while some city-owned properties are not revenue generators, they contribute to the city's reputation and attractiveness. The Maverik Center was noted as an asset that has recently become more profitable, and the city is looking at ways to further increase its financial contribution. The goal is to find a balance between fiscal responsibility and maintaining spaces that enhance the community’s quality of life. Councilmember Huynh discussed concern regarding lifetime golf passes for city officials, questioning whether such benefits should continue. Mayor Lang acknowledged that while the golf course provides affordable access for residents, including youth who benefit from lower rates, the lifetime pass policy might need reconsideration. The conversation also touched on making the golf course more accessible and better utilized by city residents rather than outside players. Mayor Lang highlighted the affordability of city-owned golf courses compared to private ones, which can be significantly more expensive. Some councilmembers suggested increased marketing efforts to attract more local youth and residents, ensuring that the course remains a valuable public asset. The Council discussed the ongoing efforts and challenges surrounding the Veterans Memorial and its expansion. Councilmember Whetstone highlighted the progress of the newly established veterans committee and the improvements already made to the memorial, but he expressed uncertainty about future funding and expansion efforts. Councilmember Huynh recounted past commitments made to former Mayor Ron Bigelow, who had planned to raise private funds to cover the costs of the project. However, it now appears that the city is shouldering much of the financial burden. While he initially supported the project, he questioned whether the city should continue its financial commitment, given the high costs and competing priorities. Mayor Lang raised concerns about the use of additional city land for expansion, especially considering its high value and the potential for private development. She emphasized the importance of keeping the project within its current footprint rather than donating more land, as well as the need to be mindful of how the area is utilized. She also noted the proximity of a homeless shelter and the possibility that the memorial could unintentionally become a gathering place for the homeless, which might require further management. There was also discussion about the memorial’s visibility and effectiveness as a public space, with some suggesting that it is not well known or adequately promoted. While fundraising efforts continue, there was skepticism about whether additional funds could be secured. Some council members pointed out that other communities have built their own memorials, reducing the city's potential for attracting outside interest or funding. Ultimately, there was a general agreement to complete the memorial within the current space rather than expanding further, while leaving the possibility open for future additions if funding allows. The focus remains on responsible financial management and ensuring the memorial serves its intended purpose without creating additional burdens for the city. Councilmember Wood reflected on how the city's appeal has changed over the past two decades and what will make it exciting in the future. She emphasized the importance of improving West Valley City's reputation and public perception, acknowledging that while progress is difficult to measure, it is a key factor in attracting investment and making residents proud to live in the community. She also highlighted the need for beautification and open spaces, pointing to a six-acre church property as a valuable opportunity for a park. However, she recognized the financial challenges of large-scale park projects. She suggested that enhancing the city’s overall appearance would contribute to its reputation and desirability. Councilmember Wood also stated that housing is important to create opportunities that support the city’s growth and reputation. She stressed the need for creativity and openness to different perspectives in addressing housing challenges. Mayor Lang discussed how West Valley City is often portrayed in the media, noting that while crime happens everywhere, the city seems to be disproportionately highlighted. She pointed out that law enforcement in the city is highly effective at resolving incidents but that this positive aspect is often overlooked. She emphasized the need to shift the narrative and promote the many good people and positive aspects of the community. Councilmember Whetstone questioned how many residents actively follow the city’s platforms and how those channels could be leveraged more effectively. He proposed engaging influencers to promote local attractions like the Maverik Center and golf courses as a potential way to enhance the city’s image. Sam Johnson discussed the city's ongoing efforts to manage its public image, emphasizing the challenges posed by media misrepresentation. He highlighted instances where West Valley City police cars were mistakenly used in news stories about other cities, requiring active efforts to correct misinformation. Sam noted that media coverage has changed over the years, with fewer reporters attending council meetings and a stronger focus on sensational stories rather than ongoing community developments. Despite these challenges, he shared a positive experience with a new Fox 13 reporter who proactively reached out to learn about the city and cover stories beyond crime. This engagement was seen as a promising opportunity to shift the narrative. Sam also detailed the city's approach to public communication, including social media outreach, press releases, website updates, and banner announcements, which receive significant daily traffic. The council discussed the potential of using social media influencers to promote West Valley City. While some influencers charge high fees for promotion, alternatives such as offering event tickets or experiences were suggested as lower-cost ways to generate positive attention. Sam acknowledged the importance of ensuring authenticity in these efforts and expressed willingness to explore influencer partnerships further as a strategy to enhance the city's reputation. Ifo emphasized the deep-rooted pride that many West Valley residents have for their city, noting how some even tattoo “West Valley” on themselves and how West Valley-branded gear is popular. He highlighted that this pride exists, but often comes with a “chip on the shoulder” mentality, where residents feel the need to defend the city rather than celebrate its strengths. He outlined a vision to shift this perspective, focusing on making residents aware of the many incredible things happening in West Valley. From major aerospace and biomedical companies to world-class training for firefighters and police officers, West Valley is home to industries and innovations that impact the world. He stressed that the goal isn’t necessarily to change how outsiders see the city but rather to ensure that West Valley residents themselves recognize its value. Ifo also emphasized the power of diversity in West Valley, arguing that true strength comes from embracing and capitalizing on the wide range of talents and backgrounds in the city. He pointed out the city’s strategic location, strong infrastructure, and economic influence as additional points of pride. Looking ahead, he and Sam Johnson are working on a social media strategy that focuses on engaging residents directly, promoting local events, and creating opportunities for the community to celebrate itself. This includes more festivals, gathering spaces, and “swag” like West Valley-branded shirts to visually reinforce city pride. The overarching goal is to harness the existing enthusiasm within the community and transform it into a positive, outward-facing movement. Sam reinforced the shift in West Valley’s communication strategy, moving from an external reputation-focused approach to prioritizing internal city pride. Instead of worrying about what outsiders think, the goal is to build strong local pride that naturally shines outward. He acknowledged that this has been a shift in thinking but sees tremendous value in it. Councilmember Huynh shared a personal story about his experience growing up in a diverse, adoptive family, illustrating how different backgrounds coming together can create a stronger, enriched community. He likened this to West Valley’s diversity, emphasizing the need for inclusivity to build a better society. Sam provided some insight into the city’s social media reach, stating that their content reaches 100,000 to 200,000 unique viewers per month, with 35,000 to 40,000 visitors to the website. While these numbers are strong, the goal is to grow them further. A key part of this strategy is controlling West Valley’s narrative. Ifo and Sam explained their approach to social media, aiming to increase followers so residents rely on the city’s platforms for news rather than traditional media outlets, which may not always present the city in a favorable light. Mayor Lang mentioned that she wasn’t aware of the city’s use of X for real-time updates until a major incident in December, highlighting the need for more outreach to educate residents on where to find timely information. Sam acknowledged the limitations of Facebook’s algorithm but emphasized that it’s still an important tool for broader engagement. Councilmember Whetstone brought up a hypothetical proposition of changing the name of West Valley City. Mayor Lang shared personal anecdotes highlighting how West Valley has historically been perceived and how she believes the city's reputation will shift by focusing on visual and structural improvements—well-maintained roads, parks, and facilities that create a positive impression for both residents and visitors. She pointed out that people are already coming to West Valley for its businesses, restaurants, and attractions, and improving what they see will further enhance the city's image. Councilmember Harmon agreed that the focus should be on fostering local pride rather than worrying about outside perceptions. Changing the name wouldn’t address the deeper issue—how the city presents itself both internally and externally. Councilmember Huynh emphasized that real change comes from both external improvements and internal operations. He acknowledged past frustrations with the city's direction but noted that recent shifts in leadership and strategy have been encouraging. He sees positive momentum and believes that continued efforts will yield meaningful progress. Ifo Pili reflected on past efforts to rebrand West Valley as a tech hub, similar to Silicon Valley, but noted that this approach didn’t align with the city’s true identity. Ifo stressed that people live and work in West Valley for a reason and embracing the city’s strengths is more valuable than chasing an external image. Ifo expressed strong confidence in the city’s trajectory, stating that past decisions have laid the foundation for current and future progress. He pointed to long-term developments, such as the downtown area, as proof that change takes time but is happening. He encouraged the council to give it another year, suggesting that by the next budget retreat, they would see measurable progress. The overall message was clear: West Valley doesn’t need to change its name—it needs to continue improving its infrastructure, fostering community pride, and taking control of its own narrative. Councilmember Christensen reflected on long-term priorities and community investments, emphasizing the importance of maintaining West Valley City’s reputation, financial responsibility, and resourcefulness. He highlighted the need to preserve and refurbish cultural landmarks like the Chinese gate, acknowledging concerns from community members about its upkeep. However, he also pointed out the challenge of securing funding, as many of the original supporters are no longer as active.He mentioned the symbolic importance of flags displayed in public areas and how small details contribute to public perception. While he didn't take a firm stance on the issue, he recognized that these are things people notice. Councilmember Christensen stressed that improving the city’s image requires a comprehensive approach rather than focusing on just one area at a time. He connected this idea to his background in education, which, while not a direct city responsibility, plays a vital role in shaping the community. He noted that many residents misunderstand the city’s role in education, often asking why the city government can’t directly improve schools, when in reality, those decisions fall under the school district’s jurisdiction. Regarding public spaces, Councilmember Christensen acknowledged the importance of community centers, parks, and facilities like the Maverik Center. He noted that public spaces provide value to residents, even if they require ongoing investment. While he is open to private partnerships, he emphasized that any arrangements should be financially beneficial to the city. On parks and green spaces, he pointed out that older parks have mature trees that contribute to their aesthetic appeal, while newer parks often struggle with young trees that take time to grow. He suggested that the city should consider strategies to improve the visual appeal of parks, acknowledging that progress takes time. Overall, Councilmember Christensen’s remarks reinforced the idea that community investment—whether in cultural landmarks, parks, or public facilities— plays a crucial role in shaping West Valley City’s identity and future. Councilmember Lars Nordfelt emphasized sustainability, not just in terms of the environment but also in maintaining neighborhoods and ensuring a stable city budget. While reaffirming the city's commitment to reaching net-zero emissions by 2030, he focused on the need to invest in infrastructure, particularly roads and sidewalks, to prevent older neighborhoods from deteriorating. He stressed that keeping city-owned property in good condition would encourage residents to do the same, fostering stronger and more sustainable communities. Shifting to financial sustainability, Councilmember Nordfelt acknowledged that discussing property tax increases might be unpopular, but he argued that it is necessary for the city’s long-term stability. Inflation has eroded property tax revenue over time, and unlike sales tax, which naturally rises with price increases, property tax remains stagnant unless adjusted by the city. Since property taxes are the most stable source of revenue and fund services that benefit both property owners and renters, he believes small, regular increases would be more manageable than large, infrequent hikes. Without adjustments, he warned, the city’s budget could become unsustainable, jeopardizing essential services in the future. Mayor Lang asked if Councilmember Nordfelt would be supportive of a potential resolution for an automatic 2% annual increase to avoid sudden, larger hikes in the future. She emphasized the importance of messaging to residents, recognizing that tax increases are often met with skepticism, even though they fund essential city services. Councilmember Nordfelt agreed with a data-driven approach, suggesting that tax increases should align with inflation rates rather than being set at a fixed percentage. Others, including Councilmembers Whetstone, Harmon, and Christensen, debated the timing and frequency of increases, with some favoring smaller, incremental raises over the uncertainty of larger, less frequent adjustments. City Manager Ifo Pili provided financial context, noting that the city has received program funding requests totaling $44 million, with major needs in public safety, including requests for new police officers and fire stations. He pointed out that even those opposed to tax increases generally recognize the necessity of funding core services. The conversation shifted to West Valley City's unique approach to property taxes through its annual Truth in Taxation process. Jim Welch highlighted that this practice, in place for about 15 years, has been beneficial in educating residents about how property taxes work. He explained that despite changes in property values, the city’s tax revenue remains stable unless adjusted, drawing a comparison to living on a fixed paycheck while inflation rises. He noted that most residents who attend hearings leave with a better understanding, even if they don’t necessarily like tax increases. Mayor Lang and Councilmember Christensen reflected on residents' perceptions of taxes, with one resident pointing out that paying around $600 a year for essential services like police, fire, roads, and sidewalks seemed like a bargain. They also noted that many people spend more on HOA fees or streaming services like Netflix than on property taxes, emphasizing the relative value of city services. Councilmember Huynh expressed concerns about the impact of property tax increases on elderly residents living on fixed incomes. He pointed out that many neighborhoods in West Valley City, which incorporated in 1980, are aging along with their residents. While some properties need investment to maintain their condition, seniors in these areas often struggle with rising costs, including medical expenses. He emphasized that even small tax increases can be burdensome for those on limited incomes. He suggested exploring alternative revenue sources to support city services without placing additional financial strain on older residents. He acknowledged the city's ability to generate revenue through various means and advocated for a balanced approach that considers both sustainability and the financial realities faced by senior citizens. Councilmember Whetstone emphasized that relying on one-time funds is not a sustainable way to fund city operations. While such funds can provide temporary support for a year or two, they do not create long-term financial stability. Ifo highlighted the importance of expanding the industrial tax base to lessen the financial burden on residents. However, he noted that without changes to the tax rate, an expanded tax base only spreads the revenue rather than increasing it. He also emphasized that having a structured resolution to adjust revenue could improve the city’s bond rating, ultimately saving money on interest payments. This approach is commonly recommended by financial consultants to ensure sustainable funding, particularly for large projects like water infrastructure. He stressed the need for consistent, manageable tax adjustments to keep up with inflation and ensure long-term financial stability. Mayor Lang discussed how property tax revenue remains stable unless new developments are added or tax rates are increased. She emphasized the importance of attracting private enterprise over government-owned properties, as private businesses contribute to the tax base. Citing the example of Rocky Mountain Power, she explained how shifting ownership from private to municipal removed tax revenue. Over time, commercial development and higher-value homes will help increase tax revenue. Mayor Lang also referenced her experience on the water district board, where small, consistent tax increases help pay off bonds. She suggested a similar approach for the city, using strategies like sustainability funds and minimal tax increases to balance the budget while avoiding unnecessary financial burdens on residents. Jim explained that while the city has no limit on how much it can increase property taxes annually, there is a maximum cap of 0.007. However, as property values rise, tax rates decrease, making it unlikely that the city will ever reach that cap. He pointed out that higher tax rates in West Valley City compared to places like Park City are due to lower home values, requiring a higher rate to generate sufficient revenue. Mayor Lang emphasized the difference between property taxes and other revenue sources like income and sales tax, which grow naturally without legislative action. She supports small annual tax increases but worries about them being treated as "free money" rather than being used responsibly. Councilmember Nordfelt noted that if city costs rise at the same rate as tax increases, it would be easier to justify them to residents. Councilmember Christensen discussed the lack of interest in maintaining Sister City partnerships, stating that both sides seem disengaged. He mentioned that while the city was once valued as a sister city due to its proximity to ski areas, that interest has waned, especially after governmental changes. In places like Mexico City, new mayors and councils replace entire staffs, making continuity difficult. Mayor Lang expressed appreciation for the staff's efforts and the time they dedicated to discussions. She emphasized how valuable it was for the staff to understand the council’s perspective and provide input, particularly in the breakout sessions. She acknowledged the quality of contributions from staff during those sessions and conveyed gratitude on behalf of the entire council for their participation and insights. She also thanked the council members for their time and commitment. MOTION TO ADJOURN Upon motion by Councilmember Huynh all voted in favor to adjourn. THERE BEING NO FURTHER BUSINESS OF THE WEST VALLEY COUNCIL THE STUDY MEETING ON FRIDAY FEBRUARY 21, 2025 WAS ADJOURNED AT 12:04 PM BY MAYOR LANG.  I hereby certify the foregoing to be a true, accurate and complete record of the proceedings of the Strategic Planning Meeting of the West Valley City Council held Saturday, February 22, 2025 _______________________________ Nichole Camac, MMC City Recorder Notes Taken by Lauren McPeak During Day 2: Mayor Karen Lang: ● My Hometown ○ Purchasing of church buildings (can also be used for recreation) ○ Making the Lighthouse church a historical building ● Make city amenities accessible to residents ● Increase West Valley merch ● Sister city relationship Councilmember Tom Huynh: ● Bringing more people to our events and social media (reputation and awareness) ○ Putting forth an “attractive” front through our website, newspapers, and social media ● Move away from private sector ● Possibility of changing the name ● Invest in property city already owns, specifically neighborhoods ● Insure things tie into our five themes (reputation, prosperity, attractiveness, diversity, and community) Councilmember Scott Harmon: ● More widespread involvement in My Hometown ● Getting rid of things that the city shouldn’t be doing, focusing on our responsibilities ○ Managing assets to build wealth (prosperity) Councilmember William Whetstone: ● Veterans memorial ○ Do we keep funding additional phases and how do we get more people involved ○ Improving advertising Councilmember Cindy Wood: ● Improving reputation ○ Social media, better way to educate the public ○ More promotion less reaction, build off our pride ● Increase in beautification and parks ● Housing opportunities Councilmember Don Christensen: ● Refurbish chinese gate and Olmec Head ● Focusing on our responsibilities/ what’s already in the city Councilmember Lars Nordfelt: ● Sustainability ○ Reducing pollution- Net Zero by 2030 ○ Neighborhoods- investing in property the city owns and encouraging residents to do the same ○ Budget- raising property tax inline with inflation, small raises consistently opposed to one big increase periodically MINUTES OF COUNCIL STRATEGIC PLANNING/BUDGET RETREAT MEETING – FEBRUARY 21, 2025 AND FEBRUARY 22, 2025 -29-