West Jordan plans $2.77 million in water, sewer and stormwater transfers to its General Fund in fiscal 2027
A city staff presentation sets out $1.575 million from water, $895,000 from sewer and $300,000 from stormwater for fiscal 2027, separate from $5.25 million in estimated administrative charges to the same utilities.
Continuing story: Auditing West Jordan
West Jordan plans to move $2,770,000 from its water, sewer and stormwater utilities into the General Fund in fiscal 2027, according to a staff presentation for Resolution 26-022 posted with the city's budget documents. [1][3]
The presentation lists $1,575,000 from water, $895,000 from sewer and $300,000 from stormwater. It says a streetlight transfer was discontinued because of legislative changes for transportation utility funds. [1]
How staff described the transfers
The presentation cites Utah Code 10-6-135.5, which it says lets a city move enterprise fund money to other funds for purposes not directly related to the enterprise's services, after notice and a separate public hearing at which the city provides accounting data. [1]
The presentation, by Danyce Steck of Administrative Services, describes the transfer as a franchise tax, like the one on electric, gas, cable and telecom bills, based on 5% of utility sales, compared with 6% for other utilities. It says the transfer is recurring and that without it a 12.5% property tax increase would be needed to balance the budget. Staff recommended approval. [1]
The presentation's General Fund table shows $81,944,122 in revenue with the transfers, including a $500,418 property tax increase. The adopted fiscal 2027 budget lists the same General Fund total. [1][2]
The utility funds
The presentation's fiscal 2027 accounting data show water sales of $27,835,000, sewer fees of $17,925,000 and stormwater fees of $6,000,000. The water reserve is projected to fall from $36,994,599 to $30,097,726, sewer from $10,421,417 to $9,525,099 and stormwater from $19,460,037 to $14,703,064, largely because of capital improvements. [1]
A separate administrative charge
Apart from the transfers, the General Fund charges the utilities for administrative work such as the council, legal, finance, IT and human resources. The presentation estimates that charge at $5,248,765: $2,732,082 for water, $1,258,347 for sewer and $1,258,336 for stormwater. It says the charge is based on actual administrative costs, while the transfers are calculated from utility revenue. [1]
The council vote
The council took up Resolution 26-022 at its June 9, 2026 meeting after a public hearing at which no one commented, according to the minutes, which the council approved June 23. Council Member Zach Jacob moved to approve and Council Member Annette Harris seconded. It passed 5-0, with Bedore, Wignall, Harris, Jacob and Whitelock voting yes and Lamb and Shelton listed as absent for the item; the minutes note Shelton joined the meeting at 8:34 p.m. [4]
The minutes summarize staff as saying the transfer uses the same method as the franchise tax utilities pay for use of the public right-of-way, described in the minutes as 5% of expenditures from the water, sewer and stormwater funds, and that without it the city would need an additional 12.5% property tax increase in fiscal 2027. The staff presentation describes the base as 5% of utility sales. The minutes do not reconcile the two descriptions. [1][4]
The transfers and the administrative cost allocation are separate charges and should not be added together as one transfer. The council's June 9 vote authorized the transfers; the figures are budgeted amounts, not posted transactions.
Sources
- West Jordan City · Enterprise transfer presentation, FY2027 (Resolution 26-022)
- West Jordan City · FY2027 Annual Budget, adopted Aug. 25, 2026
- West Jordan City · City budget index
- West Jordan City Council · Approved minutes, June 9, 2026 (Resolution 26-022, pp. 7-8)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.