Thursday, June 4, 2020

Salt Lake County is Borrowing 70 Million

What isn't in the report is the mayor proposed and the county voted on Tuesday to issue $70 Million in notes to be paid back.

If they are cutting the budget $77 Million for a $70 Million to $96 Million budget hit because of Covid-19 and they are getting $200 M in federal funds because of Covid-19 why do they also need to borrow $70 Million to write checks? The structural imbalance clearly isn't solved.

I received these 2 responses from a budget hawk, County Councilor Aimee Winder Newton

"Keep in mind that we can't use any Covid dollars for budget issues. They have to go directly to Covid expenses."

"The $70 m is a tax anticipation bond to address our cash flow needs prior to receiving property tax in the Fall.  We will pay it off prior to EOY just as we have in the past." 

With a $1.5 Billion annual budget, it would be wise to budget enough money each year so we do not have to borrow $50 Million to $70 Million each year to pay bills and pay it off the the fall.  

Each year for many years they don't have enough money to get them through until the property taxes all come in. Covid made it worse. I am concerned the Jail will be hit hard. The number I saw on Tuesday as 6 million from the sheriff and $1 million from the clerk. That could wipe out 300 of the new voting machines.

They have reassigned staff as much as possible. They will not be building or repairing as much.