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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Viola Miller, Chief Financial Officer |
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TITLE:
title
Proposed UTA 2026 Final Budget
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Informational report for discussion
BACKGROUND:
Each year, the Authority is required to prepare an operating and capital budget for the succeeding year. After consultation with the Board of Trustees and Local Advisory Council, and in accordance with Utah Code 17B-1-702 and 17B-2a-801, and Board Policy 2.3 Budget, the Executive Director has prepared the final 2026 budget for Board review.
The Board of Trustees conducted four budget work sessions in August. On September 24, 2025, the Board of Trustees received a presentation on the 2026 Tentative Budget. Subsequently, at their October 8, 2025, Board meeting, the Board approved a resolution adopting the 2026 Tentative Budget and conducted a public hearing on October 30, 2025.
The 2026 Tentative Budget was sent to the Governor’s office, the Utah State Legislature, service area mayors, council members, commissioners, metropolitan planning organizations, and others. On November 5, 2025, the Local Advisory Council received a presentation and consulted on the 2026 Tentative Budget. The budget has also been made available to the public on UTA’s website and was open for comment throughout the public comment period. The 30-day public comment period concluded on November 7, 2025, with all comments provided to the Trustees and attached here as the Public Engagement Report.
The 2026 proposed Final Budget will be reviewed at the December 3, 2025, Board of Trustees meeting with adoption scheduled for the December 17, 2025, Board of Trustees meeting.
The detail of the 2026 proposed Final Budget is attached.
DISCUSSION:
At UTA, we prepare our annual budget as part of a long-term financial strategy for responsible, accountable stewardship of public funds. Investments in transit today, including replacement and major repair of infrastructure, align with Utah’s Unified Transportation Plan developed in collaboration between UTA, the Utah Department of Transportation, our regional planning partners, and the communities we serve.
Our budget is fiscally responsible, strategic, and responsive to changing needs. On a local level, Utah’s growth creates opportunities and challenges for mobility and connectivity. Traffic congestion, commute time, housing accessibility, and air quality are a few of the issues that transit seeks to address. On a regional and state level, economic development and major events like the 2034 Olympics present significant transit opportunities to benefit Utah’s future. Our 2026 proposed budget allocates funds in the most efficient manner possible, recognizing that the growing demand for transit service exceeds available resources.
The UTA 2026 budget includes $489 million in operating expenses and $339 million in capital investment to fund the provision of safe, convenient, and reliable public transportation service and key investments in Utah’s mobility infrastructure. The budget includes federal, state, and local contributions from our partners.
The 2026 Budget was developed with an emphasis on creating value. This will be accomplished by:
• Prioritizing efficiency within the organization
• Enhancing service delivery
• Investing in UTA culture
The 2026 Budget focuses on:
• Accelerating the launch of the Midvalley Express Bus Rapid Transit System (MVX BRT)
• Critical expenses related to safety, compliance and risk management
• Debt service obligations
• Essential activities enabling delivery of the proposed 2026 annual service plan
• Vital capital investments to sustain our system and support long-term growth
ALTERNATIVES:
The Board could choose to revise the proposed 2026 Final Budget. This would lengthen the approval process and potentially push approval into 2026. The Board could also choose not to adopt the proposed 2026 Final Budget as presented.
FISCAL IMPACT:
Changes from 2026 Tentative to 2026 Final Budget
Operating Revenues
No changes as compared to the Adopted Tentative Budget.
Operating Expenditures
Proposed changes would increase Operating Expense by $1,059,000 in 2026 as compared to the Adopted Tentative Budget.
Electric Rate Increases: $903,000
Adjustments were made to electricity rates and expenses after the initial Tentative Budget was prepared, based on current expectations for changes in electric power rates.
Budget Adjustments $156,000
A series of adjustments to the Tentative Budget include the addition of resources to support Capital financial controls (1.0 FTE and $340,000) and small changes to required Operations FTEs (3.0 FTE and net neutral budget change) and an additional $20,000 to support community organizational memberships in Communications. Partially offsetting the cost increases is the impact of Operations Excellence restructuring (-1.0 FTE and -$204,000).
The additional Operating expenses described will be covered by funds from UTA’s unrestricted cash reserves.
Capital Revenues
Proposed changes would increase Capital Revenues by $7,475,000.
State of Utah funding: $4,000,000
Pass through funding from Utah Department of Transportation (UDOT) for the FR2x Project.
Grant funding: $960,000
Federal grant funds for use in replacement of North Temple escalator.
UTA Funding: $2,515,000
The additional Capital expense of $2,515,000 will be covered by funds from UTA’s unrestricted cash reserves.
Capital Expenditures
Proposed changes would increase Capital Expense by $7,475,000.
State of Good Repair: $2,475,000
Additional funds specifically allocated for the Maintenance of Way yard, bus radio projects, and the North Temple escalator replacement plan.
Frontrunner 2x: $1,500,000
Increase in project funding was approved to support the initiative to add at least nine new segments of double track to the existing 82-mile line.
EAM/WM/RISC (Trapeze) $356,000
Increase in funding for Trapeze project.
Other Capital projects $3,144,000
Automated Passenger Counting (APC) equipment project and various Information Technology (IT) and software upgrade projects.
ATTACHMENTS:
2026 Final Operating Budget - Exhibit A
2026 Final Capital Budget - Exhibit A-1
2026 Final Operating Budget - Exhibit A-2 (Operating by Office)
2026 Final Operating Budget - Exhibit A-3 (Operating by Mode)
Changes from 2026 Tentative Operating Budget - Exhibit B
Changes from 2026 Tentative Capital Budget - Exhibit B-1
2026 Final Budget Document
2026 Public Engagement Report