West Valley City Council reviews budget opening that includes $2.7M arts deficit transfer

West Valley City—s finance director, Jim Welch, told the council on May 27 that the city was proceeding with a fourth and final budget opening for the fiscal year to reflect changed revenues, expenditures and required accounting transfers. The amendments include an accounting reclassification of the stormwater fund, additional operating authorization for the Maverik Center and transfers to cover a deficit at the West Valley Arts Foundation.

Welch explained the stormwater change as largely an accounting action: the fund was originally reported as an enterprise fund because it had formerly paid debt service, but the city now proposes to record it as a special revenue fund. "Virtually nothing changes" in operations, Welch said; the reclassification consolidates stormwater assets with the city for financial reporting and does not alter day-to-day stormwater operations.

Welch described the West Valley Arts Foundation situation as an accumulated operational deficit that must be addressed now that the foundation is an independent entity. He said the estimated accumulated deficit is about $2.7 million and the city will transfer funds from the general fund to make the foundation whole. "So we've got a big hole that's gotta be covered," Welch said.

Other items Welch discussed included transfers from the redevelopment agency to reimburse general-fund departments that provide shared services (planning, accounting, human resources), and operating shortfalls the city has subsidized for the Fitness Center (estimated around $1.6 million) and the golf courses (Welch said each course has accumulated negative cash of about $2 million). Welch also explained an estimated $1.5 million additional authorization for Maverik Center operations, driven by a higher volume of events that will generate offsetting revenue.

Welch noted several capital and grant items included in the amendments, such as a $750,000 state grant for the Westlands Park project and a roughly $900,000 property purchase at 3641 South and 2200 West. He said the large $37 million figure shown in the notes represents assets moved on the books in the stormwater reclassification rather than new spending.

The council asked clarifying questions about the stormwater accounting and the arts foundation transfer. Welch said the stormwater accounting shift does not change fee structures or capital planning and that the arts transfer is a one-time accounting action to close the foundation—s accumulated deficit now that it is independent.

Next steps: the council will consider formal adoption at upcoming meetings as required by state law; Welch said most of these changes are standard budget-opening items used to keep appropriations aligned with actual revenues and expenditures.