Transportation Utility Fee (TUF)
Need and Purpose
Remember that Traffic is the #1 Complaint from Residents
Transportation Utility Fee (TUF) - Overview
Why use a TUF?
A TUF covers maintenance for
our transportation network:
● Roadways (asphalt)
● Sidewalks & Trails
● Traffic Signals
Why do we need it?
The City has a massive annual
maintenance burden.
Current Issue: Costs are
subsidized by other budgets
and funds each year.
Why change now?
As we grow, capital project
expenditures increase
exponentially.
Necessary projects lack a
dedicated funding source for
improvements like roundabouts.
Transportation Utility Fee (TUF) - Our Preparation
Strategic Development
We have been developing a framework to enact a
TUF for several years.
Compliant with new legislation and rules
Fund Deployment
We have identified WHERE the funds will be
deployed, prioritizing maintenance uses.
Free up funding for capital projects
Support other enterprise-related expenses
In Summary: TUF in Spanish Fork
Current Funding Gap
Other budgets currently subsidize maintenance. This is
why service remains high despite lack of self-funding.
TUF Strategic Advantage
A TUF dedicates specific funding to maintenance,
ensuring long-term infrastructure stability.
Resource Reallocation
Freed-up subsidy funds can now be redirected toward critical capital projects, personnel, and other essential needs.
CURRENT STATUS:
Draft TUF Study, Awaiting Finalization
HB 425 / §10-6-134.5
Rules and Requirements for TUFs
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SPANISH FORK FUNDING SHORTFALL:
TUF Revenue Target & Deployment Strategy
FY2027 Streets/Transportation
Maintenance Budget $2,530,000
Road Repair: $1,700,000
Develop. Seal Coats: $230,000
Curb/Gutter/Sidewalk: $600,000
Subsidy Transfer Funds from
Other Enterprise Funds $900,000
Water: $407,000
Sewer: $181,000
Power: $136,000
Garbage: $136,000
SFCN: $45,000
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TUF Implementation
Phasing/Schedule
FY27: $600,000
FY28: $950,000
FY29: $1,500,000
Water, Power subsidies
Sewer, Garbage, SFCN subsidies
Other maint. needs (growth)
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SPANISH FORK FUNDING SHORTFALL:
How We Fairly Offset Existing Utility Subsidies
TUF Implementation
Phasing/Schedule
FY27: $600,000
FY28: $950,000
FY29: $1,500,000
Water, Power subsidies
Sewer, Garbage, SFCN subsidies
Other maint. needs (growth)
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Total
Streets
Subsidy
Water $407,305 Residential
Revenue
True
Transportation
Burden
Non-Resi
dential
Revenue
True
Transportation
Burden
77%
23%
Power $135,768 54% 53.1%
46%
46.9%
Total $543,073 71% 29%
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IMPLEMENTATION STRATEGY:
Understanding How We Calculate/Assess Fees
IMPLEMENTATION STRATEGY:
Understanding How We Calculate/Assess Fees
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* Frontage Distribution is calculated by considering
the number of lane miles fronted by each zone type.
IMPLEMENTATION STRATEGY:
Understanding How We Calculate/Assess Fees
IMPLEMENTATION STRATEGY:
Understanding How We Calculate/Assess Fees
IMPLEMENTATION STRATEGY:
Proposed Fee Structure for FY27
FY27 Revenue Target: $600,000
IMPLEMENTATION STRATEGY:
Proposed Fee Structure for FY28
FY28 Revenue Target: $950,000
IMPLEMENTATION STRATEGY:
Proposed Fee Structure for FY29
FY29 Revenue Target: $1,500,000
IMPLEMENTATION STRATEGY:
How We Plan to Roll Out TUF
Finalize TUF Study
Complete Public
Noticing and
Education Efforts
Approve
Ordinance in City
Council
Complete the full
study (including any
revisions or changes)
and prepare it for
publication.
Per §10-6-113 and §10-6-114,
we will provide 7-14 day
notice of the proposed fee
and public hearing. We will
also establish an
informational website AND
send notices in monthly
utility bills/emails.
In the September 15
or October 6 City
Council meeting, the
final TUF study and
proposed ordinance
will be presented for
approval and
adoption.
Assess Fees
Staff will coordinate with
Utility Billing to create
and assess the pertinent
fee to each utility
account, based on their
parcel designation. Fees
can be effective October
2026.
APPEALS PROCESS:
Required per §10-6-134.5 (8)
❏ We (Spanish Fork) are required to establish a process by which entities or individuals can
challenge/appeal their assigned fee tier
❏ The entity or individual must furnish evidence of the actual traffic count or trip
generation (validated by City professionals)
❏ City Council (?, or other approved body) must hear and make final decisions on appeals
❏ Limitation on Recoverability: “In the event of a successful appeal for classification designation, the
user can only be refunded for up to two years maximum of the difference (i.e., limitation on
recoverability)”
Streamlined for Council
Web-based Appeal Process
On our TUF website, users will
be able to fill out a form and
attach their proof/evidence
City staff will process these
appeals, package them for quick
consideration, and present them
to council.
Transportation Utility Fee (TUF)
Questions
Rates
City shall establish different rates with a TUF for
different classifications of users if the rates and
classifications have a reasonable basis
Classifications
Classifications of users shall at minimum include:
-Residential users
-Commercial users
-Other users
Public Hearing
City must provide notice for and hold a public
hearing before imposing or increasing a TUF by
ordinance
Appeal Rights
Ordinance must establish an appeals process to
challenge an assigned users classification
Dedicated Revenue City must establish a dedication transportation fund
to deposit TUF revenue
Annual Reviews
Required yearly review of the TUF and prepare a
written report to be submitted to the state auditor
Expiration A TUF expires 10 years after the effective date of the
ordinance imposing it
Additional Requirements
Current Expenses - Streets and Transportation ONLY
Excluding Impact Fee Reimbursable
Expense Type Amount in FY2025
O&M $7.1M
Maintenance (pavement, signs,
concrete, etc.)
$2.4M
Capital (transportation projects, etc.) $3.1M
Total $12.6M
Current Revenue - Streets and Storm
Excluding Impact Fees
Revenue Source Amount in FY2025
MAG/UDOT/County $2.6M
B&C Road Funds $2.3M
Storm Drain Fees $3.1M
General Fund $500k
Road Repair Assessment $900k
Total $9.4M
Next 10 Years
Expense Type O&M Maintenance (pavement, signs, concrete, etc.) Capital (transportation projects, etc.) Total Revenue Source B&C Road Funds Storm Drain Fees General Fund Other Revenue Total Projected Amount in Next 10 Years
~$75M
~$30M
~$17M
$125M
Projected Amount in Next 10 Years
$23M
$32M
$5M
$45M
$105M
Storm Drain Revenue vs Expenditure
Total Storm Drain Expense in FY2025 Total Storm Drain Fee Revenue in FY2025
$171,260.00 $3,045,236.00
