Walsburg council reviews midyear budget amendments; consultant recommends small revenue and expenditure adjustments

WALSBURG, Utah — The Walsburg Town Council reviewed proposed midyear budget amendments at its Feb. 27 work meeting and heard recommended adjustments from finance consultant Kyle Walker of Pelorus to reflect higher-than-expected property tax receipts and several unanticipated expenditures.

Walker told the council that the town is about two-thirds of the way through the fiscal year and that the town’s year-to-date property tax receipts had already exceeded the amount originally budgeted. “We originally budgeted the 62,000, which is based off the newer tax rate. And so this has already exceeded that by about 8,600,” Walker said, adding that delinquent and catch-up payments helped push collections higher.

The consultant recommended increasing the property-tax revenue line to better match actual receipts and pairing that revenue bump with increases in two expenditure lines: audit and attorney fees and insurance. Walker said those two categories have already exceeded the originally budgeted amounts, primarily because the town had a full audit tied to the recent larger water project and because the town’s coverage was reviewed and increased. “Those are the two items I saw that looked like they needed a bump up,” Walker said.

Why it matters: Walker emphasized the need to keep total revenues and expenditures balanced when amending the general fund. “With your general fund, we have to balance: total revenues equals our total expenditures to have a balanced budget,” he said. He explained that the council could either increase expected revenues or move funds between expenditure lines to cover overages. Council members discussed shifting budgeted amounts between line items in lieu of an amendment where the total departmental budget would remain unchanged.

Council questions and next steps: Councilmembers asked whether the wage increase for a town employee (Alicia O’Driscoll) required an amendment; Walker said the increase had already been built into the budget. Several councilmembers pressed for clarity about timing for formal amendment and best practice. Walker and council members agreed it is better to amend proactively when an expenditure is already expected to exceed budget rather than waiting until the year end. “If you’re reviewing this on a regular basis throughout the fiscal year and making amendments as you see the need, that’s better,” Walker said.

The council also discussed smaller department-level items, including building maintenance, utilities for the town hall and a Rocky Mountain Power light project estimated at about $7,500. Walker noted that the town will have another budget review in May before the final budget and recommended placing the proposed changes on an amendment for adoption at the March meeting and associated public hearing.

Councilmember Terry Issel praised the regular reviews and told the group the practice demonstrates fiscal responsibility. No formal amendment vote was taken during the Feb. 27 work session; councilmembers directed staff to prepare the formal amendment and schedule the required hearing at the next regular meeting.

Ending: Council members said they will revisit the amended figures in May to confirm whether further changes are necessary before the fiscal year ends.