Centerfield total budget about same as last year

 

By Kristi Shields

Staff writer

7-2-2020

 

CENTERFIELD—The Centerfield City Council has approved the budget for 2020-21 beginning July 1 at $1.9 million covering the total city, including the general fund, water, sewer and other special funds.

The 2020-21 budget as a whole is less than 1 percent different from the previous year, but the general fund, which cover police, fire, parks and city administration, is up 6 percent.

The FY 2020 overall budget for the year ending June 30, was $1,969,850 while the upcoming year’s budget is $1,985,950.

The FY 2020 general fund budget was $1,116,350, while the upcoming year’s general fund budget is $1,186,400.

At the July 17 budget hearing, the city council amended the 2019-20 budget to roll over $185,050 of the total $220,050 “fund balance,” essentially a surplus, to the 2020-21 budget.

Discussing carrying forward part of fund balance, Gary Keddington, a Salt Lake County CPA and finance adviser to small towns around the state, including Centerfield, explained, What we’re doing with this budget is amending it to match some of the things that changed during the year.”

Keddington said the city didn’t use as much in savings as expected due to the setbacks in getting construction going on the new city hall. If the project had been underway, the city might have needed more of the money.

City Recorder Lacey Belnap said the city only spent $37,000 to demolish the old city hall building. She noted that the city had received a grant for $250,000 and a loan for $250,000, coming to a total of $500,000 for the new city hall building.

The city council will dip into the $185,050 rolled over into this year’s budget if needed, but Belnap said based on the bids the city has received, it hopes to stay within the $500,000 in external funding.

Community member Kevin Sorensen reminded the council of an issue in the past with lack of water pressure on the east side of town — specifically on the farms — and a lot of pressure on the west side.

“I think it’s going to be a continuous problem, and think it’s going to have to be a yearly investment,” Kevin said.

Mayor Sorensen said, “It’s on the minds of the council and we’re looking at different options [to equalize the pressure].”

The city is looking into running a separate line to farmers or installing a pressure equalization valve.

According to the budget, the secondary pressurized irrigation system, including pressurization repairs, will cost roughly $150,000 next year. Secondary irrigation revenues are projected to be about $18,000 short of that but will be made up from money saved from previous years.

Councilman David Beck said the council is looking at grant money for the pressurization fixes.

“Regardless of whether we get the grant money [or not], we want to do it,” Councilman Beck said. “We have the funds to cover it.”

Due to the pressure equalization project, the secondary water fund expenditures went up $100,400, or 170 percent, while net revenue dropped 2 percent.

The city is also working on two major sewer projects. The sewer system expenditures went up by $24,900, or 12 percent, with a 3 percent drop projected drop in net revenue.

The water fund expenditures decreased by $86,400, or 30 percent, resulting in a 5 percent increase in net revenue.