COVID-19 Updates
As of today, Utah is now in the orange (stabilization) phase according to Utah Leads Together. The Governor’s order implementing orange adopted the Phased Health Guidelines 4.0.
The state website has created this user-friendly landing page about the orange recommendations.
ULCT has provided, via our town halls, information about the changes in the national and state economies. You can see some of the presentation files from today’s stabilization of City Hall town hall here:
TODAY'S WEBINAR AND PRESENTATION FILES:
CLICK HERE for Full Town Hall webinar
Doug Folsom, Utah Local Governments Trust- CLICK HERE
Nancy Day, West Valley Parks and Recreation Director- CLICK HERE
In addition to those presentations, you can see the CDC guidelines around masks HERE (that was a question in Tuesday’s town hall with the Lt. Governor) and cleaning community facilities.
Sales tax projections:
ULCT contracted with Econowest Associates to prepare more specific material to assist you in the budget process. Econowest is directed by Doug Macdonald, the former Chief Economist for the Utah State Tax Commission. Doug currently provides sales tax information and forecasts for several Utah cities and counties. Doug has prepared a report--COVID19 Fiscal Impacts for 63 Utah Cities--which is available to all members. Econowest selected the 63 cities because of available information. This report analyzes these cities’ sale tax bases and his estimates as to changes in sales tax revenue as a result of the COVID-19 pandemic.
To read the report click HERE.
To review all of the data click HERE.
As we mentioned in Monday’s town hall, we expect more sales tax projections from the State of Utah by mid-May--potentially May 11--and we’ll have an update in Monday’s Town Hall from Utah State Tax Commission Chair John Valentine.
CARES Act update
There are MANY moving pieces around the implementation of the state and local financial assistance from the CARES Act. Here’s what you need to know as of 4:00(ish) pm on Friday afternoon:
- Per our daily email on April 23, the Treasury Department has clarified what qualifies as unbudgeted “necessary expenditures” and what does not qualify. Revenue shortfalls do not qualify as “necessary expenditures.” https://content.govdelivery.com/accounts/ULCT/bulletins/2880ffc
- Cities MUST gather data about your potential “necessary expenditures” so that ULCT has a sense of the aggregate impact. ULCT sent a survey previously and we now have an updated version. Please submit by Tuesday. To take the survey CLICK HERE
- There are three pools of local government funds from the CARES Act in Utah.
- Pools A & B: Salt Lake County and Utah County both received direct allocations based solely on their population exceeding 500,000 people. Pool A is Salt Lake County ( $202 million) and Pool B is Utah County ( $111 million). No cities, nor the remaining 27 counties, qualified for direct population-based allocations. As such, all cities and the remaining counties are dependent on distribution from the State of Utah and/or the two counties (for cities therein).
- Pool C: The State of Utah may distribute up to $246 million to local governments.
- Legislative leadership and the Governor have requested ULCT and UAC work together on potential distribution formulas. We have had several meetings this week and have more meetings scheduled next week. State leaders expect a formula proposal from ULCT and UAC in May.
- The reimbursements can only be for “necessary expenditures” between March 1 and December 30 of 2020. ULCT has submitted questions to Treasury about the timing of reimbursements in light of the city budgeting time frame. For example, if you plan to increase your spending on PPE beginning in July, can your city still be reimbursed for those expenses? Counties operate on a calendar year so they don’t have that potential complication. The State of Utah operates on the same fiscal year as cities so they need that question answered as well.
- There are still unanswered questions about: 1) the definition of “necessary expenditures,” 2) whether a city in Salt Lake County or Utah County can seek a reimbursement from Salt Lake County/Utah County and the State of Utah, 3) the timing of reimbursements, and 4) the potential distribution formula(s) for all three pools.
- We'll discuss CARES Act's next steps in Monday's town hall.
4th stimulus
Next week, Congress will start considering a 4th stimulus. The ULCT Board of Directors met on Wednesday to strategize about the 4th stimulus. They highlighted the need for flexibility of how to use the potential federal dollars--beyond the “necessary expenditures” that the CARES Act contemplates--and the need for direct appropriations to cities of all populations.
The National League of Cities will kick off their campaign for the 4th stimulus next Tuesday. Tune into Monday’s town hall for an update from Sen. Mitt Romney, the National League of Cities, and Team ULCT about the status of a potential 4th stimulus package.
Census concerns in college towns
To the cities and towns that have institutions of higher education in your community, you should have received an email from ULCT yesterday in regards to the effects of COVID-19 on census information in your area. Here’s the joint letter to Congressional leadership from the International Town & Gown Association (ITGA), National League of Cities (NLC), and International City/County Management Association (ICMA).
Boards & Commissions
Under state law, the ULCT Board of Directors can nominate or appoint city officials to represent ULCT on various boards and commissions. ULCT has the ability to either directly appoint a representative or recommend someone to the Governor for him to select. Please submit your statement of interest form and a resume by Monday, May 11 at 5:00 p.m. to abolic@ulct.org. If you have any questions regarding the following boards, please contact Abby Bolic.
We are looking to fill ULCT seats on the following boards and commissions:
- Utah Outdoor Adventure Commission
- Private Activity Bond Review Board
- Utility Facility Review Board
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