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H.B. 290
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5 AN ACT RELATING TO CITIES AND TOWNS AND COUNTIES; ALLOWING CITIES AND
6 COUNTIES TO BUDGET ON A BIENNIAL BASIS; REQUIRING CITIES AND COUNTIES
7 THAT ADOPT A BIENNIAL BUDGET TO IDENTIFY SEPARATELY THE TAXES
8 EXPECTED TO BE COLLECTED DURING EACH YEAR OF THE BUDGET CYCLE; AND
9 MAKING TECHNICAL CHANGES.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 10-6-104, as enacted by Chapter 26, Laws of Utah 1979
13 10-6-105, as enacted by Chapter 26, Laws of Utah 1979
14 10-6-106, as last amended by Chapter 119, Laws of Utah 1985
15 10-6-109, as last amended by Chapter 52, Laws of Utah 1981
16 10-6-110, as enacted by Chapter 26, Laws of Utah 1979
17 10-6-111, as last amended by Chapter 389, Laws of Utah 1997
18 10-6-116, as last amended by Chapter 119, Laws of Utah 1985
19 10-6-117, as enacted by Chapter 26, Laws of Utah 1979
20 10-6-118, as last amended by Chapter 118, Laws of Utah 1989
21 10-6-119, as enacted by Chapter 26, Laws of Utah 1979
22 10-6-121, as last amended by Chapter 119, Laws of Utah 1985
23 10-6-124, as enacted by Chapter 26, Laws of Utah 1979
24 10-6-127, as enacted by Chapter 26, Laws of Utah 1979
25 10-6-128, as enacted by Chapter 26, Laws of Utah 1979
26 10-6-130, as last amended by Chapter 119, Laws of Utah 1985
27 10-6-135, as last amended by Chapter 118, Laws of Utah 1989
28 10-6-150, as last amended by Chapter 119, Laws of Utah 1985
29 17-36-3, as last amended by Chapter 212, Laws of Utah 1996
30 17-36-8, as last amended by Chapter 212, Laws of Utah 1996
31 17-36-9, as last amended by Chapter 212, Laws of Utah 1996
32 17-36-10, as last amended by Chapter 212, Laws of Utah 1996
33 17-36-15, as enacted by Chapter 22, Laws of Utah 1975
34 17-36-16, as last amended by Chapter 212, Laws of Utah 1996
35 17-36-17, as enacted by Chapter 22, Laws of Utah 1975
36 17-36-22, as last amended by Chapter 212, Laws of Utah 1996
37 17-36-28, as last amended by Chapter 73, Laws of Utah 1983
38 17-36-32, as last amended by Chapter 73, Laws of Utah 1983
39 17-36-37, as last amended by Chapter 3, Laws of Utah 1988
40 17-36-38, as last amended by Chapter 73, Laws of Utah 1983
41 ENACTS:
42 17-36-3.5, Utah Code Annotated 1953
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 10-6-104 is amended to read:
45 10-6-104. Withholding of state money from cities not filing budget or complying with
46 reporting or auditing requirements.
47 (1) The state auditor [
48 failure to [
49 substantially [
50 required under this chapter[
51 (2) Upon the city's compliance with the requirement, the state auditor shall distribute the
52 money [
53 Section 2. Section 10-6-105 is amended to read:
54 10-6-105. Fiscal period -- Annual or biennial.
55 [
56 each city shall [
57 June 30 of the following year.
58 (2) (a) Notwithstanding Subsection (1), the legislative body of a city may, by ordinance,
59 adopt for the city a fiscal period that is a biennial period beginning July 1 and ending June 30 of
60 the second following calendar year.
61 (b) Each city adopting an ordinance under Subsection (2)(a) shall separately specify in its
62 budget the amount of ad valorem property tax it intends to levy and collect during both the first
63 half and the second half of the budget period.
64 Section 3. Section 10-6-106 is amended to read:
65 10-6-106. Definitions.
66 As used in this chapter:
67 [
68 reflected in the Uniform Accounting Manual for Utah Cities.
69 [
70 specific purpose.
71 [
72 embodies estimates of proposed expenditures for given purposes and the proposed means of
73 financing them.
74 (b) "Budget" may refer to the budget of a particular fund for which a budget is required
75 by law or it may refer collectively to the budgets for all such funds.
76 [
77 [
78 mayor or some person appointed by the mayor with the approval of the city council in cities of the
79 third class, the mayor in the council-mayor optional form of government, or the person designated
80 by the charter in charter cities.
81 [
82 prepared.
83 [
84 authorized officer of a city.
85 [
86 prepared and adopted, i.e., the fiscal [
87 [
88 a specific activity, such as a fire or police department within a General Fund.
89 [
90 an appropriation is reserved to cover a specific expenditure by charging obligations, such as
91 purchase orders, contracts, or salary commitments to an appropriation account at their time of
92 origin. Such obligations cease to be encumbrances when paid or when the actual liability is
93 entered on the city's books of account.
94 [
95 from all sources during the budget [
96 [
97 government or the city official as authorized by Section 10-6-158 .
98 [
99 fiscal operations in each city.
100 [
101 the Uniform Accounting Manual for Utah Cities.
102 [
103 accorded such terms under generally accepted accounting principles as reflected in the Uniform
104 Accounting Manual for Utah Cities.
105 [
106
107 this chapter is vested in the mayor in the council-mayor optional form of government.
108 [
109 repayment[
110 of the lending fund or revenue to the borrowing fund.
111 [
112 preceding the current [
113 [
114 or employee of the city acting in an official capacity and includes money or payment to the officer
115 or employee for services or goods provided by the city, or the officer or employee while acting
116 within the scope of employment or duty. Public funds do not include money or payments collected
117 or received by an officer or employee of a city for charitable purposes if the mayor or city council
118 has consented to the officer's or employee's participation in soliciting contributions for a charity.
119 [
120 [
121 sufficient money in the city's depository, by an authorized officer of a city for the purpose of
122 paying a specified amount out of the city treasury to the person named or to the bearer as money
123 becomes available.
124 Section 4. Section 10-6-109 is amended to read:
125 10-6-109. Budget required for certain funds -- Capital projects fund budget.
126 (1) The budget officer shall prepare for each budget [
127 following funds:
128 (a) the general fund, including the class "C" and collector road funds;
129 (b) special revenue funds;
130 (c) debt service funds; and
131 (d) capital improvement funds.
132 (2) Major capital improvements financed by general obligation bonds, capital grants, or
133 interfund transfers, shall use a capital projects fund budget. The term of the budget shall coincide
134 with the term of the individual project or projects. To the extent appropriate, the requirements for
135 preparation, adoption, and execution of the budgets of the funds enumerated in Subsection (1)
136 above, as set forth in this chapter, shall apply to budgets of capital projects funds.
137 Section 5. Section 10-6-110 is amended to read:
138 10-6-110. Budget -- Contents -- Total of revenues to equal expenditures.
139 (1) The budget for each fund set forth in Subsection 10-6-109 (1) shall provide a complete
140 financial plan for the budget [
141 (a) estimates of all anticipated revenues, classified by the account titles prescribed in the
142 Uniform Accounting Manual for Utah Cities; and
143 (b) all appropriations for expenditures, classified by the account titles prescribed in the
144 Uniform Accounting Manual for Utah Cities.
145 (2) The total of the anticipated revenues shall equal the total of appropriated expenditures.
146 Section 6. Section 10-6-111 is amended to read:
147 10-6-111. Tentative budget to be prepared -- Contents -- Estimate of expenditures
148 -- Budget message -- Review by governing body.
149 (1) On or before the first regularly scheduled meeting of the governing body in the last
150 May of [
151 period, on forms provided by the state auditor, and file with the governing body, a tentative budget
152 for each fund for which a budget is required. The tentative budget of each fund shall set forth in
153 tabular form the following:
154 (a) Actual revenues and expenditures in the last completed fiscal [
155 (b) Budget estimates for the current fiscal [
156 (c) Actual revenues and expenditures for a period of six to [
157 appropriate, of the current fiscal [
158 (d) Estimated total revenues and expenditures for the current fiscal [
159 (e) The budget officer's estimates of revenues and expenditures for the budget [
160 period, computed in the following manner:
161 (i) The budget officer shall estimate, on the basis of demonstrated need, the expenditures
162 for the budget [
163 heads. Each department head shall be heard by the budget officer prior to making of the final
164 estimates, but the officer may revise any department's estimate as the officer [
165 advisable for the purpose of presenting the budget to the governing body.
166 (ii) The budget officer shall estimate the amount of revenue available to serve the needs
167 of each fund, estimate the portion to be derived from all sources other than general property taxes,
168 and estimate the portion that must be derived from general property taxes. From the latter estimate
169 the officer shall compute and disclose in the budget the lowest rate of property tax levy that will
170 raise the required amount of revenue, calculating the levy upon the latest taxable value.
171 (f) If the governing body elects, actual performance experience to the extent established
172 by Section 10-6-154 and available in work units, unit costs, man hours, or man years for each
173 budgeted fund on an actual basis for the last completed fiscal [
174 current fiscal [
175 (2) (a) Each tentative budget, when filed by the budget officer with the governing body,
176 shall contain the estimates of expenditures submitted by department heads, together with specific
177 work programs and such other supporting data as this chapter requires or the governing body may
178 request. First and second-class cities shall, and third-class cities may, submit a supplementary
179 estimate of all capital projects which each department head believes should be undertaken within
180 the next three succeeding years.
181 (b) Each tentative budget submitted by the budget officer to the governing body shall be
182 accompanied by a budget message, which shall explain the budget, contain an outline of the
183 proposed financial policies of the city for the budget [
184 features of the budgetary plan. It shall set forth the reasons for salient changes from the previous
185 [
186 financial policy.
187 (3) Each tentative budget shall be reviewed, considered, and tentatively adopted by the
188 governing body in any regular meeting or special meeting called for the purpose and may be
189 amended or revised in such manner as is [
190 except that no appropriation required for debt retirement and interest or reduction of any existing
191 deficits pursuant to Section 10-6-117 , or otherwise required by law or ordinance, may be reduced
192 below the minimums so required.
193 (4) In the event the municipality is acting pursuant to Section 10-2-120 , the tentative
194 budget shall be submitted to the governing body 60 days prior to the intended filing of the articles
195 of incorporation and shall cover each fund for which a budget is required from the date of
196 incorporation to the end of the fiscal year. The governing body shall substantially comply with all
197 other provisions of this act, and the budget shall be passed upon incorporation.
198 Section 7. Section 10-6-116 is amended to read:
199 10-6-116. Accumulated fund balances -- Limitations -- Excess balances --
200 Unanticipated excess of revenues -- Reserves for capital improvements.
201 (1) Cities are permitted to accumulate retained earnings or fund balances, as appropriate,
202 in any fund. With respect to the General Fund only, any accumulated fund balance is restricted
203 to the following purposes:
204 (a) to provide working capital to finance expenditures from the beginning of the budget
205 [
206 thereby reducing the amount which the city must borrow during the period, but this Subsection
207 (1)(a) does not permit the appropriation of any fund balance for budgeting purposes except as
208 provided in Subsection (4);
209 (b) to provide a resource to meet emergency expenditures under Section 10-6-129 ; and
210 (c) to cover a pending year-end excess of expenditures over revenues from an unavoidable
211 shortfall in revenues. This provision does not permit the appropriation of any fund balance to
212 avoid an operating deficit during any budget [
213 (4), or for emergency purposes under Section 10-6-129 .
214 (2) The accumulation of a fund balance in the General Fund shall not exceed 18% of the
215 total estimated revenue of the General Fund.
216 (3) If the fund balance at the close of any fiscal [
217 under Subsection (2), the excess shall be appropriated in the manner provided in Section 10-6-117 .
218 (4) Any fund balance in excess of 5% of the total revenues of the General Fund may be
219 utilized for budget purposes.
220 (5) (a) Within a capital improvements fund the governing body may, in any budget [
221 period, appropriate from estimated revenue or fund balance to a reserve for capital improvements
222 for the purpose of financing future specific capital improvements, under a formal long-range
223 capital plan adopted by the governing body.
224 (b) The reserves may accumulate from [
225 accumulated total is sufficient to permit economical expenditure for the specified purposes.
226 (c) Disbursements from these reserves shall be made only by transfer to a revenue or
227 transfer account within the capital improvements fund, under a budget appropriation in a budget
228 for the fund adopted in the manner provided by this chapter.
229 (d) Expenditures from the above appropriation budget accounts shall conform to all
230 requirements of this chapter relating to execution and control of budgets.
231 Section 8. Section 10-6-117 is amended to read:
232 10-6-117. Appropriations not to exceed estimated expendable revenue --
233 Determination of revenue -- Appropriations for existing deficits.
234 (1) The governing body of any city [
235 budget of any fund in excess of the estimated expendable revenue for the budget [
236 [
237 (2) In determining the estimated expendable revenue of the general fund for the budget
238 [
239 of the fund balance at the close of the last completed fiscal [
240 in the budget of the current [
241 (3) There shall be included as an item of appropriation in each fund for any budget [
242 period any existing deficit as of the close of the last completed fiscal [
243 included in the budget of the current [
244 total revenue of [
245 deficit is less than [
246 the entire amount of [
247 Section 9. Section 10-6-118 is amended to read:
248 10-6-118. Adoption of final budget -- Certification and filing.
249 Before the last June 22 of each fiscal [
250 tax increase under Sections 59-2-919 through 59-2-923 , before August 17 of the year for which
251 a property tax increase is proposed, the governing body shall by resolution or ordinance adopt a
252 budget for the ensuing fiscal [
253 chapter. A copy of the final budget for each fund shall be certified by the budget officer and filed
254 with the state auditor within 30 days after adoption.
255 Section 10. Section 10-6-119 is amended to read:
256 10-6-119. Budgets in effect for budget year -- Amendment -- Filing for public
257 inspection.
258 Upon final adoption, the budgets shall be in effect for the budget [
259 later amendment. A certified copy of the adopted budgets shall be filed in the office of the city
260 auditor or city recorder and shall be available to the public during regular business hours.
261 Section 11. Section 10-6-121 is amended to read:
262 10-6-121. Departmental expenditures -- Encumbrances -- Purchase order.
263 (1) The budget officer shall require all expenditures by any department to conform with
264 the departmental budget.
265 (2) No appropriation may be encumbered and no expenditure may be made against any
266 departmental appropriation unless there is sufficient unencumbered balance in the department's
267 appropriation, except in cases of emergency as provided by this chapter.
268 (3) All encumbrances reported as outstanding as of the fiscal [
269 supported by a purchase order issued on or before the last day of the fiscal [
270 approved by the mayor in the council-mayor optional form of government or the governing body
271 or its delegate in other cities, as provided under this chapter.
272 Section 12. Section 10-6-124 is amended to read:
273 10-6-124. Transfer of appropriation balance between accounts -- Excess expenditure
274 within departments.
275 With the consent of the budget officer, or [
276 by charter, the head of any department may transfer any unencumbered or unexpended
277 appropriation balance or any portion thereof from one expenditure account to another within the
278 department during the budget [
279 may be permitted by any department head with the consent of the budget officer, or his equivalent
280 in charter cities, provided the total of all excess expenditures or encumbrances do not exceed total
281 unused appropriations within the department at the close of the budget [
282 Section 13. Section 10-6-127 is amended to read:
283 10-6-127. Review of individual fund budgets -- Hearing.
284 Upon the written request of one of the members of the governing body, or upon its own
285 motion setting forth the reason therefor, the governing body may, at any time during the budget
286 [
287 purpose of determining if the total of any of them should be increased. If the governing body
288 decides that the budget total of one or more of these funds should be increased, it shall follow the
289 procedures set forth in Sections 10-6-113 and 10-6-114 for holding a public hearing.
290 Section 14. Section 10-6-128 is amended to read:
291 10-6-128. Amendment and increase of individual fund budgets.
292 After the conclusion of the hearing, the governing body, by resolution or ordinance, may
293 amend the budgets of the funds proposed to be increased, so as to make all or part of the increases
294 therein, both estimated revenues and appropriations, which were the proper subject of
295 consideration at the hearing. Final amendments in the current [
296 of the funds set forth in Section 10-6-109 shall be adopted by the governing body on or before the
297 last day of the fiscal [
298 Section 15. Section 10-6-130 is amended to read:
299 10-6-130. Lapse of appropriations -- Exceptions.
300 All unexpended or unencumbered appropriations except capital projects fund
301 appropriations shall lapse at the end of the budget [
302 Section 16. Section 10-6-135 is amended to read:
303 10-6-135. Operating and capital budgets.
304 (1) On or before the time the governing body adopts budgets for the funds set forth in
305 Section 10-6-109 , it shall adopt for the ensuing [
306 budget" for each enterprise fund and shall adopt [
307 as required by the Uniform Accounting Manual for Utah Cities.
308 (2) An "operating and capital budget," for purposes of this section, means a plan of
309 financial operation for an enterprise or other required special fund, embodying estimates of
310 operating resources and expenses and other outlays for a fiscal [
311 expressly provided, the reference to "budget" or "budgets" and the procedures and controls relating
312 to them in other sections of this chapter do not apply or refer to the "operating and capital budgets"
313 provided for in this section.
314 (3) "Operating and capital budgets" shall be adopted and administered in the following
315 manner:
316 (a) On or before the first regularly scheduled meeting of the governing body in the last
317 May of [
318 period and file with the governing body a tentative operating and capital budget for each enterprise
319 fund and for other required special funds, together with specific work programs as submitted by
320 the department head and any other supporting data required by the governing body.
321 (b) First and second-class cities shall, and third-class cities may, submit a supplementary
322 estimate of all capital projects which the department head believes should be undertaken within
323 the three next succeeding fiscal years.
324 (c) The budget officer shall prepare estimates in cooperation with the appropriate
325 department heads. Each department head shall be heard by the budget officer prior to making final
326 estimates, but thereafter the officer may revise any department's estimate for the purpose of
327 presenting the budget to the governing body.
328 (d) If within any enterprise fund, allocations or transfers which cannot be defined as a
329 reasonable allocation of costs between funds are included in a tentative budget, a written notice
330 as to date, time, place, and purpose of [
331 at least seven days prior to the hearing.
332 (4) The tentative budget or budgets shall be reviewed and considered by the governing
333 body at any regular meeting or special meeting called for that purpose. The governing body may
334 make changes in the tentative budgets.
335 (5) Budgets for enterprise or other required special funds shall comply with the public
336 hearing requirements established in Sections 10-6-113 and 10-6-114 .
337 (6) Before the last June 22 of each fiscal [
338 property tax increase under Sections 59-2-919 through 59-2-923 , before August 17 of the year for
339 which a property tax increase is proposed, the governing body shall adopt an operating and capital
340 budget for each applicable fund for the ensuing fiscal [
341 finally adopted for each fund shall be:
342 (a) certified by the budget officer;
343 (b) filed by the officer in the office of the city auditor or city recorder;
344 (c) available to the public during regular business hours; and
345 (d) filed with the state auditor within 30 days after adoption.
346 (7) Upon final adoption, the operating and capital budget shall be in effect for the budget
347 [
348 may, in any regular meeting or special meeting called for that purpose, review any one or more of
349 the operating and capital budgets for the purpose of determining if the total of any of them should
350 be increased. In the event the governing body decides that the budget total of one or more of these
351 funds should be increased, the procedures set forth in Section 10-6-136 shall be followed.
352 (8) Expenditures from operating and capital budgets shall conform to the requirements
353 relating to budgets specified in Sections 10-6-121 , 10-6-122 , 10-6-123 , 10-6-124 , 10-6-125 , and
354 10-6-126 .
355 Section 17. Section 10-6-150 is amended to read:
356 10-6-150. Annual financial reports -- Independent audit reports.
357 Within 180 days after the close of each fiscal [
358 delegated person shall present to the governing body an annual financial report prepared in
359 conformity with generally accepted accounting principles, as prescribed in the Uniform
360 Accounting Manual for Utah Cities. This requirement may be satisfied by presentation of the audit
361 report furnished by the independent auditor, if the financial statements included are appropriately
362 prepared and reviewed with the governing body. Notwithstanding the acceptability of the audit
363 report furnished by the independent auditor in substitution for financial statements prepared by an
364 officer of the city, the governing body has the responsibility for those financial statements. The
365 independent auditor has the responsibility of reporting whether the governing body's financial
366 statements are prepared in conformity with generally accepted accounting principles. Copies of
367 the [
368 with the state auditor and shall be filed as a public document in the office of the city recorder.
369 Section 18. Section 17-36-3 is amended to read:
370 17-36-3. Definitions.
371 As used in this chapter:
372 (1) "Accrual basis of accounting" means a method where revenues are recorded when
373 earned and expenditures recorded when they become liabilities notwithstanding that the receipt
374 of the revenue or payment of the expenditure may take place in another accounting period.
375 (2) "Appropriation" means an allocation of money for a specific purpose.
376 (3) (a) "Budget" means a plan for financial operations for a fiscal [
377 estimates for proposed expenditures for given purposes and the means of financing the
378 expenditures.
379 (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
380 collectively to the budgets for all those funds.
381 (4) "Budgetary fund" means a fund for which [
382 those described in Section 17-36-8 .
383 (5) "Budget officer" means the county auditor as provided in Section 17-19-19 .
384 (6) "Budget [
385 (7) "Check" means an order in a specific amount drawn upon the depositary by any
386 authorized officer in accordance with Section 17-19-3 or 17-24-1 .
387 (8) "Countywide service" means a service provided in both incorporated and
388 unincorporated areas of a county.
389 (9) "Current [
390 and adopted.
391 (10) "Department" means any functional unit within a fund which carries on a specific
392 activity.
393 (11) "Encumbrance system" means a method of budgetary control where part of an
394 appropriation is reserved to cover a specific expenditure by charging obligations, such as purchase
395 orders, contracts, or salary commitments to an appropriation account. An expenditure ceases to be
396 an encumbrance when paid or when the actual liability is entered in the books of account.
397 (12) "Estimated revenue" means any revenue estimated to be received during the budget
398 [
399 (13) "Fiscal [
400 operations [
401 (14) "Fund" means an independent fiscal and accounting entity comprised of a sum of
402 money or other resources segregated for a specific purpose or objective.
403 (15) "Fund balance" means the excess of the assets over liabilities, reserves, and
404 contributions, as reflected by its books of account.
405 (16) "Fund deficit" means the excess of liabilities, reserves, and contributions over its
406 assets, as reflected by its books of account.
407 (17) "General Fund" means the fund used to account for all receipts, disbursements, assets,
408 liabilities, reserves, fund balances, revenues, and expenditures not required to be accounted for in
409 other funds.
410 (18) "Interfund loan" means a loan of cash from one fund to another, subject to future
411 repayment; but it does not constitute an expenditure or a use of retained earnings, fund balance,
412 or unappropriated surplus of the lending fund.
413 (19) "Last completed fiscal [
414 the current [
415 (20) "Modified accrual basis of accounting" means a method under which expenditures
416 other than accrued interest on general long-term debt are recorded at the time liabilities are
417 incurred and revenues are recorded when they become measurable and available to finance
418 expenditures of the current period.
419 (21) "Municipal capital project" means the acquisition, construction, or improvement of
420 capital assets that facilitate providing municipal service.
421 (22) "Municipal service" means a service not provided on a countywide basis and not
422 accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or irrigation
423 water retail service, water conservation, local parks, sewers, sewage treatment and disposal,
424 cemeteries, garbage and refuse collection, street lighting, airports, planning and zoning, local
425 streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
426 (23) "Retained earnings" means that part of the net earnings retained by an enterprise or
427 internal service fund which is not segregated or reserved for any specific purpose.
428 (24) "Special fund" means any fund other than the General Fund, such as those described
429 in Section 17-36-6 .
430 (25) "Unappropriated surplus" means that part of a fund which is not appropriated for an
431 ensuing budget [
432 (26) "Warrant" means an order in a specific amount drawn upon the treasurer by the
433 auditor.
434 Section 19. Section 17-36-3.5 is enacted to read:
435 17-36-3.5. Fiscal period -- Annual or biennial.
436 (1) Except as provided in Subsection (2), the fiscal period for each county shall be an
437 annual period beginning on January 1 of each year and ending December 31 of the same calendar
438 year.
439 (2) (a) Notwithstanding Subsection (1), the legislative body of a county may, by ordinance,
440 adopt for the county a fiscal period that is a biennial period beginning January 1 and ending
441 December 31 of the following calendar year.
442 (b) Each county adopting an ordinance under Subsection (2)(a) shall separately specify in
443 its budget the amount of ad valorem property tax it intends to levy and collect during both the first
444 half and the second half of the budget period.
445 Section 20. Section 17-36-8 is amended to read:
446 17-36-8. Preparation of budgets.
447 The budget officer of each county shall prepare each budget [
448 provided pursuant to Section 17-36-4 , a budget for each of the following funds which are included
449 in its system of accounts:
450 (1) general fund;
451 (2) special revenue funds;
452 (3) debt service funds;
453 (4) capital project funds; and
454 (5) any other fund or funds for which a budget is required by the uniform system of
455 budgeting, accounting, and reporting.
456 Section 21. Section 17-36-9 is amended to read:
457 17-36-9. Budget -- Financial plan -- Contents -- Municipal services and capital
458 projects funds.
459 (1) (a) The budget for each fund shall provide a complete financial plan for the budget
460 [
461 uniform system of budgeting, accounting, and reporting:
462 (i) estimates of all anticipated revenues;
463 (ii) all appropriations for expenditures; and
464 (iii) any additional data required by Section 17-36-10 or by the uniform system of
465 budgeting, accounting, and reporting.
466 (b) The total of appropriated expenditures shall be equal to the total of anticipated
467 revenues.
468 (2) (a) Each first-, second-, and third-class county that provides municipal-type services
469 under Section 17-34-1 shall:
470 (i) establish a special revenue fund, "Municipal Services Fund," and a capital projects
471 fund, "Municipal Capital Projects Fund," or establish a special district to provide municipal
472 services; and
473 (ii) budget appropriations for municipal services and municipal capital projects from these
474 funds.
475 (b) The Municipal Services Fund is subject to the same budgetary requirements as the
476 county's general fund.
477 (c) (i) Except as provided in Subsection (2)(c)(ii), the county may deposit revenue derived
478 from any taxes otherwise authorized by law, income derived from the investment of money
479 contained within the municipal services fund and the municipal capital projects fund, the
480 appropriate portion of federal money, and fees collected into a municipal services fund and a
481 municipal capital projects fund.
482 (ii) The county may not deposit revenue derived from a fee, tax, or other source based
483 upon a countywide assessment or from a countywide service or function into a municipal services
484 fund or a municipal capital projects fund.
485 (d) The maximum accumulated unappropriated surplus in the municipal services fund, as
486 determined prior to adoption of the tentative budget, may not exceed an amount equal to the total
487 estimated revenues of the current fiscal [
488 Section 22. Section 17-36-10 is amended to read:
489 17-36-10. Preparation of tentative budget.
490 (1) On or before the first day of the next to last month of every fiscal [
491 budget officer shall prepare for the next budget [
492 tentative budget for each fund for which a budget is required.
493 (2) The tentative budget shall set forth in tabular form:
494 (a) actual revenues and expenditures in the last completed fiscal [
495 (b) estimated total revenues and expenditures for the current fiscal [
496 (c) the estimated available revenues and expenditures for the ensuing budget [
497 computed by determining:
498 (i) the estimated expenditure for each fund after review of each departmental budget
499 request;
500 (ii) (A) the total revenue requirements of the fund;
501 (B) the part of the total revenue that will be derived from revenue sources other than
502 property tax; and
503 (C) the part of the total revenue that must be derived from property taxes;
504 (d) if required by the governing body, actual performance experience to the extent
505 available in work units, unit costs, man hours, and man years for each budgeted fund that includes
506 an appropriation for salaries or wages for the last completed fiscal [
507 months of the current fiscal [
508 months of the current fiscal period if the county is on a biennial fiscal period, together with the
509 total estimated performance data of like character for the current fiscal [
510 ensuing budget [
511 (3) The budget officer may recommend modification of any departmental budget request
512 under Subsection (2)(c)(i) before it is filed with the governing body, if each department head has
513 been given an opportunity to be heard concerning [
514 (4) Each tentative budget shall contain the estimates of expenditures submitted by any
515 department together with specific work programs and other supportive data as the governing body
516 requests. The tentative budget shall be accompanied by a supplementary estimate of all capital
517 projects or planned capital projects within the budget [
518 succeeding years.
519 (5) (a) Each tentative budget submitted in a county with a population in excess of 25,000
520 determined pursuant to Section 17-36-4 shall be accompanied by a budget message in explanation
521 of the budget.
522 (b) The budget message shall contain an outline of the proposed financial policies of the
523 county for the budget [
524 shall also state the reasons for changes from the previous [
525 revenue items and explain any major changes in financial policy.
526 (c) A budget message for counties with a population of less than 25,000 is recommended
527 but not incumbent upon the budget officer.
528 (6) The tentative budget shall be reviewed, considered, and tentatively adopted by the
529 governing body in a regular or special meeting called for that purpose. It may thereafter be
530 amended or revised by the governing body prior to public hearings thereon, except that no
531 appropriation required for debt retirement and interest or reduction, pursuant to Section 17-36-17 ,
532 of any deficits which exist may be reduced below the required minimum.
533 Section 23. Section 17-36-15 is amended to read:
534 17-36-15. Adoption of budget.
535 On or before the 15th day of the last month of each fiscal [
536 by resolution shall adopt the budget which, subject to further amendment, shall thereafter be in
537 effect for the next fiscal [
538 amendment thereof, shall be certified by the budget officer and filed with the state auditor not later
539 than [
540 budget officer for inspection by the public during business hours.
541 Section 24. Section 17-36-16 is amended to read:
542 17-36-16. Retained earnings -- Accumulation -- Restrictions -- Disbursements.
543 (1) A county may accumulate retained earnings in any enterprise or internal service fund
544 or a fund balance in any other fund; but with respect to the General Fund, its use shall be restricted
545 to the following purposes:
546 (a) to provide cash to finance expenditures from the beginning of the budget [
547 until general property taxes, sales taxes, or other revenues are collected;
548 (b) to provide a fund or reserve to meet emergency expenditures; and
549 (c) to cover unanticipated deficits for future years.
550 (2) The maximum accumulated unappropriated surplus in the General Fund, as determined
551 prior to adoption of the tentative budget, may not exceed an amount equal to the estimated
552 revenues from property taxes of the current fiscal [
553 taxable value of $750,000,000 or more and a population of 100,000 or more, the accumulated
554 surplus shall be limited to 20% of the total revenues of the General Fund for the current fiscal
555 [
556 in the estimated revenues of the General Fund budget for the next fiscal [
557 (3) Any fund balance exceeding 5% of the total General Fund revenues may be used for
558 budgetary purposes.
559 (4) (a) A county may appropriate funds from estimated revenue in any budget [
560 to a reserve for capital improvements within any capital improvements fund which has been duly
561 established by ordinance or resolution.
562 (b) Money in the reserves shall be allowed to accumulate from [
563 fiscal period until the accumulated total is sufficient to permit economical expenditure for the
564 specified purposes.
565 (c) Disbursements from the reserves shall be made only by transfer to a revenue account
566 within a capital improvements fund pursuant to an appropriation for the fund.
567 (d) Expenditures from the capital improvement budget accounts shall conform to all
568 requirements of this act as it relates to the execution and control of budgets.
569 Section 25. Section 17-36-17 is amended to read:
570 17-36-17. Appropriations in final budget -- Limitations.
571 (1) The governing body of a county shall not make any appropriation in the final budget
572 of any fund in excess of the estimated expendable revenue of [
573 period.
574 (2) There shall be included as an item of appropriation in the budget of each fund for any
575 fiscal [
576 the extent of at least 5% of the total revenue of [
577 period or if the deficit is less than 5% of the total revenue, an amount equal to the deficit.
578 Section 26. Section 17-36-22 is amended to read:
579 17-36-22. Transfer of unexpended appropriation balance by department.
580 With the consent of the budget officer, any department may transfer any unencumbered or
581 unexpended appropriation balance or any part from one expenditure account to another within the
582 department during the budget year, or an excess expenditure of one or more line items may be
583 permitted; provided, that the total of all excess expenditures or encumbrances does not exceed the
584 total unused appropriation within the department at the close of the budget [
585 Section 27. Section 17-36-28 is amended to read:
586 17-36-28. Lapse of appropriations.
587 All appropriations shall lapse following the close of the budget [
588 that they are unexpended or encumbered.
589 Section 28. Section 17-36-32 is amended to read:
590 17-36-32. Operating and capital budget -- Expenditures.
591 Before or at the time the governing body adopts budgets for the budgetary funds specified
592 in Section 17-36-8 , it shall adopt an "operating and capital budget" for the next fiscal [
593 for each enterprise fund and for any other special nonbudgetary fund for which operating and
594 capital budgets are prescribed by the uniform system of budgeting, accounting, and reporting.
595 "Operating and capital budget," for purposes of this section, means a plan of financial
596 operation for an enterprise or other special fund embodying estimates of operating and
597 nonoperating resources and expenses and other outlays for a fiscal [
598 otherwise expressly provided, "budget" or "budgets" and the procedures and controls relating
599 thereto in other sections of this act are not applicable to the "operating and capital budgets"
600 provided in this section.
601 Operating and capital budgets shall be adopted and administered in the following manner:
602 (1) On or before the first day of the [
603 the budget officer shall prepare for the next fiscal [
604 Section 17-36-4 , and file with the governing body a tentative operating and capital budget for each
605 enterprise fund and for any other special fund which requires an operating and capital budget.
606 The tentative operating and capital budget shall be accompanied by a supplementary
607 estimate of all capital projects or planned capital projects within the next fiscal [
608 within the [
609 The budget officer shall prepare all [
610 requested, with the concerned department, but thereafter the budget officer has authority to revise
611 any departmental estimate before it is filed with the governing body.
612 (2) The tentative operating and capital budget shall be reviewed by the governing body at
613 any regular or special meeting called for that purpose. It may make any changes it [
614 considers advisable. Prior to the close of the fiscal [
615 capital budget for the next fiscal [
616 (3) Upon final adoption, the operating and capital budget shall be in effect for the budget
617 [
618 be certified by the budget officer and made available to the public during business hours in the
619 offices of the county auditor. A copy of the operating and capital budget shall be filed with the
620 state auditor within 30 days after its adoption.
621 The governing body may during the budget [
622 budget of an enterprise or other special fund by resolution. A copy of the operating and capital
623 budget as amended shall be filed with the state auditor.
624 (4) Any expenditure from an operating and capital budget shall conform to the
625 requirements for budgets specified by Sections 17-36-20 , 17-36-22 , 17-36-23 , and 17-36-24 .
626 Section 29. Section 17-36-37 is amended to read:
627 17-36-37. Budget officer -- Annual financial statement -- Contents.
628 The budget officer of each county, within 180 days after the close of each fiscal [
629 period, except as provided by Section 17-36-38 , shall prepare and make available to the governing
630 body [
631 and a comparison with the budget of the general fund, similar statements of all other funds for
632 which budgets are required, and statements of revenues and expenditures or of income and
633 expense, as the case may be, of all other operating funds of the county; a balance sheet of each
634 fund and a combined balance sheet of all funds as of the close of the fiscal [
635 other reports the governing body may require, including work performance data, tax levies, taxable
636 values, details of bonded indebtedness, and historical facts of interest to the governing body and
637 the public. Copies of the annual report shall be furnished to the state auditor and made a matter
638 of public record in the office of the budget officer.
639 Section 30. Section 17-36-38 is amended to read:
640 17-36-38. Presentation of annual report by independent auditor.
641 The [
642 presentation of the report of the independent auditor on the results of operations for the [
643 fiscal period and financial condition at the close of the [
644 conformity with the uniform system of budgeting, accounting, and reporting.
Legislative Review Note
as of 2-4-99 2:13 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.