Logan Mayor Holly Daines proposed a city budget of more than $200 million for Fiscal year 2024 during the regular meeting of the Logan Municipal Council on May 2.
LOGAN – Mayor Holly Daines has proposed a balanced budget for Fiscal Year 2024 of more than $200 million for the city of Logan.
“I am happy to report the proposed budget continues to project revenues conservatively and to scrutinize spending carefully,” Daines said in a brief report to members of the Logan Municipal Council at their regular meeting on May 2.
Projected revenues in the mayor’s plan include more than $5 million in property taxes; more than $25 million in sales taxes; more than $114 million in service fee charges; and more than $20 million in transfers from other accounts.
Projected expenditures include more than $54 million in personnel costs; more than $78 million for operations and maintenance; and more than $22 million for capital outlays.
The bottom line in both those budget categories is the same — $201,566,427.
The good news for city employees is that Daines’ proposed budget includes a 4 percent increase in performance pay for all employees, with additional funding for administrative and market adjustments in certain departments and divisions.
Even better news is that the city will continue to cover all employees’ health insurance costs, despite a sizable increase in those premiums. The cost of health insurance will increase by 15 percent next year, Daines said, compared to 7 percent in Fiscal 2022 and 5 percent in Fiscal 2021.
In the process of developing this budget, Daines added, departments were given a little more flexibility to address their most critical needs, including new hires. As a result of trimming some general fund expenses, Logan now plans to hire one new police officer, a public works inspection supervisor, a recreation ground maintenance worker and a Parks and Recreation worker to track activities in the new Center Block Plaza.
“Other items of note include a significant impact to the electric fund because of a dramatic increase in the cost of purchased power,” she explained.
Since July of 2022, the city has been applying a surcharge to residents’ electric bills to cover that cost. But a rate study is underway to determine appropriate electric rate increases.
“Until then,” the mayor said, “we are relying on the surcharge for the difference between the budget price for purchased power and the price we are actually paying.”
In recent years, she said, there has always been something on the horizon threating to inject some uncertainty into the budget process.
Given the unprecedented inflation the country is experiencing and the U.S. Federal Reserve’s largely unsuccessful efforts to curb it, that uncertainty is due to the looming threat of an economic recession.
During a recent speech at Utah State University, Randal Quarles, former vice chair of the Federal Reserve, predicted that the U.S. is likely to suffer a “short and shallow” recession.
“I wish we had a crystal ball,” Daines said.
In the meantime, however, Daines pledged that she and her administrative team would do their very best to provide excellent service and quality of life for Logan’s citizens.
Following Daines’ report, city council chair Ernesto Lopez noted that the council would hold a workshop session to explore the 2024 budget at 5:30 p.m. on May 9 and 23.