|
TO: |
Local Advisory Council |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Jay Fox, Executive Director |
|
|
Viola Miller, Chief Financial Officer |
TITLE:
title
Consultation on the UTA Tentative 2026 Budget
end
AGENDA ITEM TYPE:
LAC - Consultation
RECOMMENDATION:
Review the UTA Tentative 2026 Budget and provide advice to the Board of Trustees.
BACKGROUND:
Each year, in compliance with State of Utah Code 17B-2a-808.1, the Board of Trustees adopts a tentative budget for the next year and sets a public hearing at which interested parties may comment on the tentative budget.
The Board of Trustees conducted four budget work sessions in August, followed by a preliminary budget and five-year capital plan overview discussion with the Local Advisory Council at the August 27, 2025 meeting . 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 will conduct a public hearing on October 30, 2025.
The 2026 Tentative Budget was sent to the Governor’s office, Legislature, mayors, commissioners, metropolitan planning organizations, and others. It has also been made available to the public on UTA’s website and will be open for comment throughout the public comment period. The 30-day public comment period will conclude on November 7, 2025, with all comments provided to the Trustees.
On November 5, 2025, the Local Advisory Council will be given the opportunity to review and consult on the 2026 Tentative Budget providing their advice and input to the Executive Director and the Board of Trustees, pursuant to the Utah Public Transit District Act, 17B-2a-808.2(4)(v).
The 2026 Final Budget will be reviewed by the Board of Trustees on December 3, 2025, with adoption scheduled for December 17, 2025.
The details of the 2026 Tentative Budget are 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 and emerging demands. 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 2026 Tentative 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 Operating 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 Advisory Council is encouraged to provide their feedback to the Board of Trustees on this tentative budget and any additional considerations that should be discussed.
FISCAL IMPACT:
The 2026 Tentative Budget includes $488 million in operating expenses and $332 million of capital investment to fund the provision of safe, convenient, reliable service and targeted investments in our infrastructure. The budget includes federal and local contributions from our partners.
ATTACHMENTS:
• 2026 Tentative Budget Summary
• 2026 Tentative Budget Document