South Salt Lake’s finances could take a big hit because of COVID-19

Apr 13, 2020, 4:05 PM | Updated: Apr 14, 2020, 7:52 am
South Salt Lake is one of many cities in Utah prepping to take a big financial hit because of COVID...
South Salt Lake is one of many cities in Utah prepping to take a big financial hit because of COVID-19. (Photo: South Salt Lake city logo)
(Photo: South Salt Lake city logo)

SOUTH SALT LAKE, Utah – South Salt Lake is preparing to take a big financial hit because of COVID-19.

The city’s Director of Finance Kyle Kershaw told the city council last week that revenue from sales taxes and utilities is down due to COVID-19.

“We are anticipating we could be down anywhere from about $400,000 to $600,000 per month in revenue…It could even be as high as $700,000,” Kershaw said.

Those numbers would be comparable to the recession of 2008.

“We experienced about a 30 to 35% decrease in sales tax revenue [in 2008]. We fully expect we’re gonna reach those numbers in the next month or two,” Kershaw said.

Kershaw said South Salt Lake also has to plan extra expenses because of COVID-19.

“We’ll end up spending about $350,000 in direct response [to COVID-19], buying supplies, equipment, [and] paying overtime for employees that may be quarantined or sick,” Kershaw said.

Because of the projected hit to their finances due to COVID-19 , the city has stopped some infrastructure projects and will use some of the fund balance they have to get them through.

South Salt Lake is also applying for federal grants, as well as waiting on their share of the $500 million in federal stimulus money that is supposed to go to Utah’s cities.

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South Salt Lake’s finances could take a big hit because of COVID-19