LOGAN – City officials here have scheduled a public hearing to discuss “proposed transfers from and administrative fees charged to city enterprise funds.”
Under Utah laws and local budgeting practices, that hearing will take place at 5:30 p.m. on Tuesday, June 17 at Logan City Hall.
Logan officials are contemplating the transfer of more than $6.75 million from various city enterprise funds to the general fund to defray to cost of services including public safety, public works, parks/recreation and general government services.
A municipal enterprise account, also known as an enterprise fund, is a separate accounting mechanism used by municipalities to track the revenues and expenses of specific services that are operated like private businesses, according to OpenGov.com.
These services are typically provided to the general public and are funded through user charges or fees, rather than general tax revenue. Examples include utilities like water and sewer, waste management and public transportation.
Logan City has incorporated transfers into established enterprise fund utility rates as a general fund financing mechanism for many years. If not for these transfers, city officials say, Logan would either need to raise property taxes significantly or cut services significantly.
Where private sector utility companies are in business to provide a return on investment to its shareholders, Logan City’s shareholders – that is, its taxpayers and citizens — receive this return on investment as a transfer to the General Fund.
City officials will also discuss administrative fees associated with those transfers during the June 17 public hearing.
Under a strict reading of the Utah State Code, Logan officials have also disclosed that Logan is planning to construct a new public works facility to facilitate a future reshuffling of city services.
That proposed reshuffling calls for the city’s Electric Department to sell its current building to the Parks & Recreation Department. The Electric Department will then purchase the current Public Works building, which will better accommodate the current needs and allow for the future growth of the Electric Department.
The difference in fair market value between the two buildings is estimated to be $10 million.
All interested Logan residents are invited to attend the June 17 public hearing.
Questions about the proposed Fiscal Year 2026 transfer and administrative fees can be address to the city’s Finance Department by calling 435-716-9189 or going online to https://www.loganutah.gov/government/departments/finance/index.php
The Logan City Hall is located at 290 North, 100 West in downtown Logan.