County leaders have a little more money to spend.
Salt Lake County's general fund has $5.4 million more than was than projected last fall, leaving County Council members with a better financial picture than previous years and giving them a little more wiggle room for future expenditures.
The projections for the general fund monies were made "about six weeks removed from Sept. 11, and the country was in a recession," said Lance Brown, budget director for the Salt Lake County auditor. "We didn't know what to expect."
Because of uncertainties about future military actions and worries about a significant downturn in the economy, the projections accounted for a possible year-end reduction in spending and a major increase in police services.
The reality proved less dire, especially for the Salt Lake County Sheriff's Office, which saved $1.6 million in investigative and jail services and earned $2 million more than expected for housing state or federal prisoners, Brown said.
Low interest rates which encouraged people to refinance their mortgages also meant a $1 million increase in revenue for the recorder's office, which charges a fee when those refinanced mortgages are registered. Consumer spending also did not slow as much, with sales tax revenue $300,000 higher than projected.
The additional $5.4 million will be transferred to the fund balance, a reserve of money which does not get budgeted but instead is used throughout the year to cover unplanned expenses. To sustain the county's AAA bond rating, 10 percent of the general fund must be saved each year; this year, the county would need to keep at least $15.8 million in the fund balance. With the additional money, the fund balance is $26.8 million.
Three other county funds also have higher balances than projected. The health fund had an additional $1 million, the municipal services fund an additional $1.4 million, and the library fund had $2.8 million more, although most of that was because of a planned library that did not get constructed. Only the government immunity fund lost a significant amount of money, approximately $1 million.
While the higher-than-projected fund balances are good news, the county still has a 2002 budget that is lower than 2001. With the state Legislature facing a significant revenue shortfall, the county may see continued budget decreases next year as state funding for many programs is reduced.
"It's very encouraging," Salt Lake County Councilman Joe Hatch said. "But the state cuts will have an impact."
Still, council members were glad that they were not faced with the same bad news as state leaders have heard this week.
"I think we're all grateful that we're not in the same boat," Councilman David Wilde said.
E-mail: jloftin@desnews.com