June 2020 | Vol. 20 Iss. 06
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WEST JORDAN CITY GRAPPLES
WITH HOW TO COMBAT FINANCIAL STUGGLES By Erin Dixon | e.dixon@mycityjournals.com
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t the end of the fiscal year 2019 (July 1, 2018, to June 30, 2019), $12.5 million was left in the general fund (also known as reserves or “rainy-day” fund). At the end of the current fiscal year 2020, $9.3 million will be in this fund. Some reserve funds have been used to make up for the loss in sales the city sustained when businesses were closed in mid-March for the COVID-19 stay-at-home order. The proposed budget that ends fiscal year 2021 (July 1, 2020, to June 30, 2021), city leaders proposed to use another $3 million to make up for the additional loss they anticipate in the coming year. That means that by the end of fiscal year 2021, there will be $6.1 million left in the general fund. Mayor Dirk Burton, first strong mayor in West Jordan, is responsible for presenting the budget he put together with help from city staff. “COVID-19 has completely changed the way we live and work,” he said. “Social distancing has kept West Jordan safe, but it has crippled our economy. Our municipal budget—which was already stretched thin due to past budgeting practices, a decrease in fees and increasing benefits and retirement obligations to public safety staff— has been decimated.” Utah cities are required to have at least 5% of their expenditures in their general fund for emergency use, which means West Jordan needs just over $3 million at all times. Councilmember Kelvin Green is nervous about this practice of using general fund money to make up for holes in the budget. West Jordan is facing difficult times, and West Jordan officials are grappling with how to combat financial struggles. (Photo courtesy West Jordan City) “I’m trying to play chess here a year ahead of this budget Continued page 8
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