Category: 2022 Utah County Elections (Page 1 of 2)

I asked members of the American Fork City Council for their thoughts about the City’s financial condition. I had a particularly detailed conversation with Councilman Shelton, who has professional expertise in financial matters, about the effects of inflation on City finances.

City Finances and the Fund Balance

State law requires municipalities to keep a minimum cash reserve of 5% of the current fiscal year’s budgeted revenue. Until 2021 the maximum allowed reserve was 25%; now it’s 35%. (See Utah Code 10-6-116.)

One significant point of pride among all five council members is that, over the past several years, the City has built its reserve from below 10% to the maximum allowed by law, 35% — and the intention is to keep it there.

This is not just a rainy day fund, Councilwoman Staci Carroll explained. It has allowed the City to be opportunistic — for example, in acquiring a large piece of land for a planned regional park south of the freeway.

Councilman Ryan Hunter said, “We’re as strong as we’ve ever been, financially.”