West Bountiful’s City Council approves budget amendments
Jul 09, 2024 09:32AM ● By Simon MortensenWorking to add to general funds, West Bountiful's city council approved budget amendments for fiscal years 2024 and 2025 during their meeting on June 18.
“We’re looking at different ways of balancing things out during this time, which means cutting back on expenses, deferring some expenses and looking at potential other sources of revenues for some expenses like some of our debt service or capital,” city administrator Duane Huffman said.
In the original fiscal year plan for 2023-2024, the city sought to bring in $5,977,800 in total revenue while taking on costs of $6,349,700 in expenditures and transfers. Under an amended budget published on June 4, projections show revenue at $5,765,100 and expenditures and transfers at $6,570,700.
During fiscal year 2024-2025, West Bountiful plans to increase revenue by approximately $236,600 while decreasing expenditures and transfers by $591,400.
Budget Reductions
In order to bring down total spend, the city will be limiting the allocation of funds to certain resources.
During a city council meeting on May 7, Huffman noted that after conducting research as well as negotiating, the city was able to reduce health insurance cost increases for West Bountiful’s employees from 5.2% to 3.2% for fiscal year 2024-2025. Under the updated plan, city staff will no longer have access to Telehealth and general employee assistance programs through their insurance – benefits that Huffman said were fairly unused and fall outside of the 2% cut.
In addition to insurance plans, the city decreased the budget for the police department by $181,500 for fiscal year 2024-2025. The new budget allows for the department to have two police vehicles. Huffman says that there shouldn’t be any change in the level of police service that the city provides.
While budget cuts will take place for law enforcement, the city agreed to implement new public safety retirement contributions – which allow West Bountiful to “pick-up” a sworn-in-officer’s contribution cost for their retirement plan.
According to the May 21 meeting agenda, the contribution program will cost the city about $13,800 per year. Huffman says that while the city will need to spend funds to implement the changes, it will make West Bountiful a more enticing place to work for prospective officers.
Costs
The new budget factors in costs associated with several city operations, including paying off the new building for the public works department.
To help with expenditures associated with the 1200 N. facility, West Bountiful issued $6 million worth of bonds paying at a 1.48% interest rate. According to Huffman, the bonds left $954,000 in extra funds – over 20% of which will be allocated to debt services for the building. Some proceeds from the bonds will also be used to improve the facility’s street as well.
Along with costs related to the new building, the budget reflects a decision made by council members on May 7 to donate $10,000 to CenterPoint theater.
Taxes
Under the proposed budget for fiscal year 2023-2024, West Bountiful is expected to reduce their tax revenue from $5,977,800 to $5,765,100 and increase expenditures by $221,000. While intergovernmental, service and fine taxes increased, contributions and transfers taxes decreased from $215,400 to $15,400.
Huffman says that this reduction is due to the general fund being higher than expected in the fiscal year – allowing the city to keep $200,000 in the capital fund.
The new budget was proposed in a presentation by Huffman on May 7. A public hearing was opened on June 4 to discuss the details before its approval during the June 18 meeting.
“The goal is long-term stability really,” Huffman said about the amendments. “It’s the stability that allows us to provide good services without wild fluctuations in either the quality of the service or the taxes and fees that we charge.”