ROCK SPRINGS — The city of Rock Springs will need to transfer more than $6 million into its operational reserves for fiscal year 2021-2022 in order to cover projected budget shortfalls.
The Rock Springs City Council unanimously approved its preliminary budget for fiscal year 2021-2022 during its meeting last night.
The city will transfer roughly $6.1 million from its general fund operational budget to its operational reserves to cover the budget deficit the city is currently facing, said Director of Administrative Services Matthew L. McBurnett.
No discussion took place prior to the approval. However McBurnett included a detailed letter with the budget explaining why the city is short in funding and where revenues are generated.
The city has been experiencing a decrease in revenue due to the COVID-19 pandemic impacting local industries and a decrease in oil and gas prices. The city is also seeing a 20 percent decrease in sales and use tax revenues.
“The sales and use tax payments received in May and June could also have a large impact on the next version of the budget presented in June,” McBurnett’s letter stated.
“The goal of the budget committee has been to fund operational reserves to help supplement decreasing revenue.” McBurnett’s letter stated.
Since this is only the preliminary budget, the amount transferred to operational reserves will change as the city’s financial conditions change in the upcoming months.
To read McBurnett’s letter and the entire preliminary budget click here.
Under new business, the Council approved three requests from the Rock Springs Fire Department. The requests are to refill vacant positions, including one battalion chief, two captain and two firefighter positions.
The Council appointed Jim Blazovich and Sue Lozier to the Board of Adjustment, David Johnson to the Historic Preservation Committee, and Bryan Seppie, Eddie Baker and Richard Mathey to the Sweetwater County Water Users Coalition Committee.
The Council also approved a resolution rescinding the city’s participation in the Communities Protecting the Green committee and accepting a cooperative agreement between Rock Springs, Green River, and Sweetwater County to form the Sweetwater County Water Users Coalition Committee.