The Logan Municipal Council unanimously approved budgets for fiscal year 2020-2021, including an overall 2.6% budget cut.
“That’s an overall revenue decline,” said Rich Anderson, Logan’s finance director. “Sales tax, itself, we’re anticipating about a 10% decline.”
To accommodate COVID-19 related shortfalls, he said the city has cut capital spending such as buildings, land and equipment rather than raising taxes.
“We hope we’ve put forth a budget that’s conservative enough that we won’t have further cuts,” Anderson said. “We still, at this point right now, do not have good enough information to predict what happened with the past fiscal year that’s closing here in about 15 days, or to project what will happen next fiscal year. We just have anecdotal evidence of what happened in 2008.”
The total projection is 3.9% lower than the fiscal year 2019-2020 budget, though Anderson said a reduction in transportation tax and reduced costs of covering the North Logan Fire Department make the actual budget closer to 2.6% lower than the previous year.
However, there is federal funding through the CARES Act available for cities to use by Nov. 30, and Logan qualified for nearly $4.6 million.
“Obviously we need to respond to public safety concerns and public health concerns as it relates to city government,” Anderson said. “After we’ve addressed those concerns, then there’s a possibility we can look at the economic hardship that is in our citizens as well as our business owners.”
The council unanimously voted to accept the federal funds, which cannot be used to address unemployment due to COVID-19 but could be used by the city to appropriate more PPE and hand sanitizer and to utilize increased cleaning of playground equipment at city parks. Any unused amount of the money must be returned to the federal government by Dec. 4.