Executive Summary

This document provides a detailed overview of the Uintah Special Service District 1 board meeting held on December 11, 2024, at 6:31 PM in the Uintah Recreation Center Conference Room (610 South Vernal Avenue). The meeting covered:

• Opening preliminaries
• Public input and fee increase discussions
• Budget discussions and approval
• Closing remarks

Key decisions included the approval of fee increases and the 2025 budget despite uncertainties regarding mineral lease funding. Timestamps (MM:SS) are provided to mark significant discussions, public comments, detailed budget line items, staffing considerations, operational challenges, revenue projections, and debates or unresolved issues.

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1. Opening and Preliminaries (00:00 - 03:00)

• Meeting Call to Order (00:04)
  • The chair welcomed attendees to the Uintah Special Service District 1 December regular board meeting.
• Prayer (00:41)
  • Joe McKay offered a prayer, expressing gratitude for the opportunity to meet, the community's festive season, and leadership.
  • He prayed for guidance in decision-making, open minds, and safety for families during the holiday period.
• Pledge of Allegiance (02:00)
  • The chair led the pledge of allegiance.
• Approval of Minutes (02:30)
  • The board reviewed and approved the minutes from the November 13th board meeting with unanimous consent.

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2. Public Input and Fee Increases (03:00 - 31:00)

2.1. Board Member and Initial Public Input

• Board Member Input (03:00)
  • Board members noted recent committee meetings focused on budget discussions.
  • (Additional input noted between 03:08 and 03:19.)
• Initial Public Input (03:20)
  • Public input was invited; however, no initial comments were received.
  • (Discussion noted between 03:23 and 03:29.)

2.2. Fee Increase Discussion Introduction

• Fee Increase Discussion (04:07)
  • The chair suggested addressing the public hearing for fee increases first, ensuring any changes could be reflected in the budget.
  • The director introduced proposed fee increases, noting:
    • Membership Fees: Not raised in 17 years and remain competitive with other recreation centers. (Discussion from 04:27 to 04:39.)
    • Public Feedback: Minimal public calls and a survey with 350 mostly positive responses. (Feedback discussed between 05:41 and 05:57.)
    • Proposed Changes:
      • An automatic annual 1% fee increase on total membership. (Proposed at 06:57 - 07:08.)
      • A 5% swipe fee for credit and debit card transactions (with transparency concerns discussed). (Mentioned at 07:08 - 07:13.)
• Discussions on Payment Methods:
  • Concerns about how the swipe fee would impact members paying with cash or checks. (Discussed from 07:27 to 08:41.)
  • Clarifications regarding membership options, including:
    • Automatic renewals
    • Alternative payment methods avoiding ACH withdrawals (Clarifications provided from 11:20 to 12:11 and additional details from 13:27 to 14:26.)

2.3. Public Hearing for Fee Increases

• Opening the Public Hearing (14:50 - 15:05)
  • The hearing was initiated to discuss the proposed recreation center fee changes.
• Public Comments:
  • Support for Fee Increases (15:16 - 17:43):
    • A community member expressed support, acknowledging:
      • Reliance on fees and mineral lease funding.
      • Satisfaction with services and facilities, citing personal experience as a long-term member.
      • Support for a "pay-for-play" model.
  • Additional Comments:
    • Observations were made that the district’s fees were lower or on par with other centers, despite broader service offerings. (Comments recorded between 17:46 and 18:29.)
• Board Deliberations:
  • The board discussed transparency measures, such as signage at credit card stations to explain the swipe fee. (Discussed around 10:03 - 10:18.)
  • Concerns were raised about the wording on public flyers related to fee increases and the public hearing. (Points raised between 29:45 and 30:38.)
• Closing the Public Hearing (24:45)
  • The public hearing was closed at 24:45.

2.4. Approval of Fee Increases

• Motion to Approve Fee Increases (31:00)
  • A motion was proposed and seconded to approve:
    • The automatic annual 1% increase
    • The 5% swipe fee as presented.
  • The motion passed with a roll call vote, making the fee changes effective post-approval.
  • (Motion details and vote from 31:12 to 31:56.)

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3. Budget Discussion and Approval (31:00 - 02:12:42)

3.1. Introduction to Budget Discussion

• Overview (32:05 - 33:03)
  • The director provided an overview of the budget process.
  • Emphasis was placed on months of internal and committee work.
  • Recent changes included updates to revenue projections and expenditure lines, shared via Dropbox.
• Communication Concerns (33:10 - 33:57)
  • Last-minute changes due to committee discussions were discussed, highlighting a need for improved communication.

3.2. Detailed Budget Line Items

PTO Payout Reserves (Line 37)

• Time: 34:42 - 36:48
• Key Points:
  • Proposal to lower the budget line to $30,000.
  • Justified by policy changes limiting PTO to 480 hours.
  • Last year’s expenditure was $28,000.
  • The board approved the $30,000 allocation, noting the PTIF account balance could cover potential payouts.

Miscoded Expenses (Line 43)

• Time: 37:14 - 38:17
• Key Points:
  • Corrections addressing challenges in budget coding.
  • Example: Irrigation expenses were incorrectly coded under office supplies.

Revenue Adjustments

• Annual Passes (38:27 - 38:50)
  • Revenue increased to $859,000 (a 17% increase from the previous year's $735,000).
• Gymnasium Revenue (39:03 - 39:26)
  • Revenue decreased to $500 from $1,000 due to limited rental opportunities.
• Party Rooms and Locker Rentals (43:15 - 43:30)
  • Revenue for party rooms and locker rentals adjusted to $25,000 each.
• Climbing Shoe Rentals (43:30 - 43:49)
  • Revenue raised from $500 to $1,000, with plans to enhance rock wall revenue.
• Swim Lessons and Contract Classes (44:01 - 44:16)
  • Swim lesson revenue increased; contract class revenue was removed and recoded to enrichment programs.

Technology and Equipment Needs

• Time: 40:45 - 41:52
• Key Points:
  • Discussion on upgrading computers for departments such as golf maintenance and facility maintenance.
  • Plan to purchase approximately seven new computers.
  • Documentation was available but not presented in detail.

Golf Course Budget Concerns

• Time: 01:34:55 - 01:37:37
• Key Points:
  • Concerns over increasing projected losses:
    • 2023 Loss: $163,000
    • 2024 Budget: $388,000
    • 2025 Projection: $623,000
  • Maintenance expenses (e.g., reel maintenance and snow mold application) were highlighted.
  • Revenue projections were reduced by $50,000 due to seasonal uncertainties.

Utility Costs and Coding Errors

• Time: 01:14:14 - 01:15:34
• Key Points:
  • Utility costs were adjusted following coding errors in financial software.
  • Projections increased from $360,000 to $370,000 based on updated expenditure data.

Vending Operations

• Time: 01:09:48 - 01:13:05
• Key Points:
  • Plans to take over vending operations to offer healthier options.
  • A shift away from the current 10% commission model.
  • Discussions included potential sales trade-offs between protein drinks versus traditional snacks.

3.3. Staffing Plans and Salary Discussions

Debate on Transparency and Oversight

• Time: 50:52 - 54:01
• Key Points:
  • Significant debate on whether the board should oversee salaries.
  • A request was made for a detailed staffing plan to ensure annual salary reviews.
  • Opposing views stressed not micromanaging, but rather trusting the director's management.

Vacant Positions and Budgeting

• Time: 56:15 - 01:00:25
• Key Points:
  • Discussion on vacant roles including night manager, parks foreman, and golf course positions.
  • Concerns were raised regarding budgeting full salaries for positions not yet filled.
  • Intent was to prepare for future hires with possible adjustments via budget openers.

Salary Adjustments

• Time: 46:19 - 48:18
• Key Points:
  • Explanations included longevity and probationary raises.
  • A 3% COLA and a 3% merit request for 2025 were proposed.
  • Concerns about cross-departmental salary comparisons were addressed by confirming adherence to existing pay scales.

3.4. Public Hearing for Budget

• Time: 01:56:03 - 01:57:12
• Overview:
  • The public hearing for the final 2025 budget was opened.
  • No public comments were received.
  • The hearing was closed at 01:57:12.

3.5. Final Discussions and Budget Approval

Mineral Lease Funding Uncertainty

• Time: 01:57:28 - 02:06:36
• Key Points:
  • Discussions on mineral lease allocations:
    • A request for $7 million versus the previously budgeted $4.5 million.
  • Concerns about potential funding shortfalls were debated.
  • It was noted that the PTIF account held $7 million, sufficient for coverage despite possible reductions.
  • Unresolved issues included disputes over historical allocations and related documentation.

Budget Approval

• Time: 02:12:04 - 02:12:42
• Key Points:
  • A motion was made and seconded to approve the 2025 budget as presented.
  • The motion passed with a roll call vote, finalizing the budget approval despite funding uncertainties.

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4. Closing (02:12:42 - 02:13:19)

• Motion to Adjourn (02:13:09)
  • A motion to adjourn the meeting was made and seconded.
• Closing Remarks (02:13:11)
  • Informal closing remarks included holiday wishes along with the distribution of treats and calendars to attendees.

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5. Notable Debates and Unresolved Issues

• Staffing Oversight Debate (50:52 - 01:06:36)
  • Ongoing debate on the board's role in salary oversight.
  • Differing opinions on transparency versus micromanagement.
  • No consensus was reached regarding wage compression and fairness.
• Mineral Lease Funding Uncertainty (01:57:28 - 02:06:36)
  • Unresolved uncertainty regarding mineral lease allocations and the impact on budget sustainability.
  • Disagreements over historical allocations and documentation persisted.
• Operational Challenges
  • Notable issues included:
    • Budget coding errors (utilities, golf course maintenance).
      • (Refer to discussions at 01:14:14 - 01:15:34 and 01:28:05 - 01:30:14.)
    • Proposals for mid-year reviews post-audit to improve budget accuracy and address challenges.
      • (Discussion noted at 01:17:35 - 01:18:33.)