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First Substitute H.B. 94

Representative Fred R Hunsaker proposes the following substitute bill:


             1     
UNIFORM FISCAL PROCEDURES ACT

             2     
AMENDMENTS FOR TOWNS, CITIES, AND

             3     
COUNTIES AMENDMENTS

             4     
2010 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Fred R Hunsaker

             7     
Senate Sponsor: Peter C. Knudson

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill amends the public notice and hearing requirements for the uniform fiscal
             12      procedures of towns, cities, and counties.
             13      Highlighted Provisions:
             14          This bill:
             15          .    amends notice requirements;
             16          .    requires a town council to give public notice and hold a hearing before amending a
             17      budget or allocating or transferring funds between an enterprise fund and another
             18      fund;
             19          .    requires the governing body of a city to give public notice and hold a hearing before
             20      allocating or transferring funds between an enterprise fund and another fund;
             21          .    requires the governing body of a county to give public notice and hold a hearing
             22      before amending a budgetary fund or increasing a budget appropriation of any
             23      budgetary fund;
             24          .    requires the governing body of a county to give public notice and hold a hearing
             25      before allocating or transferring funds between an enterprise fund and another fund;


             26      and
             27          .    makes technical corrections.
             28      Monies Appropriated in this Bill:
             29          None
             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          10-5-107, as last amended by Laws of Utah 2006, Chapter 178
             35          10-5-108, as last amended by Laws of Utah 2009, Chapter 388
             36          10-5-117, as last amended by Laws of Utah 1986, Chapter 181
             37          10-6-113, as last amended by Laws of Utah 2009, Chapter 388
             38          10-6-135, as last amended by Laws of Utah 2006, Chapter 178
             39          17-36-26, as last amended by Laws of Utah 2009, Chapter 388
             40          17-36-32, as last amended by Laws of Utah 2006, Chapter 178
             41      REPEALS:
             42          17-36-25, as last amended by Laws of Utah 2009, Chapter 388
             43     
             44      Be it enacted by the Legislature of the state of Utah:
             45          Section 1. Section 10-5-107 is amended to read:
             46           10-5-107. Tentative budgets required for public inspection -- Contents --
             47      Adoption of tentative budget.
             48          (1) (a) On or before the first regularly scheduled town council meeting of May, the
             49      mayor shall:
             50          (i) prepare for the ensuing year, on forms provided by the state auditor, a tentative
             51      budget for each fund for which a budget is required;
             52          (ii) make the tentative budget available for public inspection; and
             53          (iii) submit the tentative budget to the town council.
             54          (b) The tentative budget of each fund shall set forth in tabular form:
             55          (i) actual revenues and expenditures in the last completed fiscal year;
             56          (ii) estimated total revenues and expenditures for the current fiscal year; and


             57          (iii) the mayor's estimates of revenues and expenditures for the budget year.
             58          (2) (a) The mayor shall:
             59          (i) estimate the amount of revenue available to serve the needs of each fund;
             60          (ii) estimate the portion to be derived from all sources other than general property
             61      taxes; and
             62          (iii) estimate the portion that must be derived from general property taxes.
             63          (b) From the estimates required by Subsection (2)(a), the mayor shall compute and
             64      disclose in the budget the lowest rate of property tax levy that will raise the required amount of
             65      revenue, calculating the levy on the latest taxable value.
             66          (3) (a) Before the public hearing required under Section 10-5-108 , the town council:
             67          (i) shall review, consider, and tentatively adopt the tentative budget in any regular
             68      meeting or special meeting called for that purpose; and
             69          (ii) may amend or revise the tentative budget.
             70          (b) At the meeting at which the town council adopts the tentative budget, the council
             71      shall establish the time and place of the public hearing required under Section 10-5-108 .
             72          (4) (a) [If within any enterprise utility fund, allocations or transfers] If a town council
             73      includes in a tentative budget, or an amendment to a budget, allocations or transfers from an
             74      enterprise fund to another fund that are not reasonable allocations of costs between [funds are
             75      included in a tentative budget,] the enterprise fund and the other fund, the governing body
             76      shall:
             77          (i) hold a public hearing;
             78          (ii) prepare a written notice of the date, time, place, and purpose of the hearing [shall
             79      be mailed to utility fund customers] as described in Subsection (4)(b); and
             80          (iii) subject to Subsection (4)(c), mail the notice to each enterprise fund customer at
             81      least seven days before the day of the hearing.
             82          (b) The purpose portion of the written notice shall identify:
             83          (i) the enterprise [utility] fund from which money is being allocated or transferred;
             84          (ii) the amount being allocated or transferred; and
             85          (iii) the fund to which the money is being allocated or transferred.
             86          (c) The town council:
             87          (i) may print the written notice required under Subsection (4)(a)(ii) on the enterprise


             88      fund customer's bill; and
             89          (ii) shall include the written notice required under Subsection (4)(a)(ii) as separate
             90      notification mailed or transmitted with the enterprise fund customer's bill.
             91          Section 2. Section 10-5-108 is amended to read:
             92           10-5-108. Budget hearing -- Notice -- Adjustments.
             93          (1) Prior to the adoption of the final budget[, each] or an amendment to a budget, a
             94      town council shall hold a public hearing to receive public comment.
             95          (2) The town council shall provide notice of the place, purpose, and time of the public
             96      hearing by publishing notice at least seven days before the hearing:
             97          (a) (i) at least once in a newspaper of general circulation in the town; or
             98          (ii) if there is no newspaper of general circulation, then by posting the notice in three
             99      public places at least 48 hours prior to the hearing; and
             100          [(b) as required in Section 45-1-101 .]
             101          (b) on the Utah Public Notice Website created under Section 63F-1-701 .
             102          (3) After the hearing, the town council, subject to Section 10-5-110 , may adjust
             103      expenditures and revenues in conformity with this chapter.
             104          Section 3. Section 10-5-117 is amended to read:
             105           10-5-117. Increasing budget total of fund.
             106          [Except for enterprise funds, which may be increased without a public hearing, the] A
             107      town council may not increase the budget total of one or more funds or enterprise funds unless
             108      the town council [may increase the budget total of one or more of these funds by following]
             109      follows the procedures set forth in Section 10-5-108 .
             110          Section 4. Section 10-6-113 is amended to read:
             111           10-6-113. Budget -- Notice of hearing to consider adoption.
             112          At the meeting at which each tentative budget is adopted, the governing body shall
             113      establish the time and place of a public hearing to consider its adoption and shall order that
             114      notice of the public hearing be published at least seven days prior to the hearing:
             115          (1) (a) in at least one issue of a newspaper of general circulation published in the
             116      county in which the city is located; or
             117          (b) if there is not a newspaper as described in Subsection (1)(a), then the notice
             118      required by this section may be posted in three public places within the city; and


             119          [(2) as required in Section 45-1-101 .]
             120          (2) on the Utah Public Notice Website created under Section 63F-1-701 .
             121          Section 5. Section 10-6-135 is amended to read:
             122           10-6-135. Operating and capital budgets.
             123          (1) (a) As used in this section, "operating and capital budget" means a plan of financial
             124      operation for an enterprise or other required special fund that includes estimates of operating
             125      resources, expenses, and other outlays for a fiscal period.
             126          (b) Except as otherwise expressly provided, any reference to "budget" or "budgets" and
             127      the procedures and controls relating to them in other sections of this chapter do not apply or
             128      refer to the operating and capital budgets described in this section.
             129          [(1) On] (2) At or before the time the governing body adopts budgets for the funds [set
             130      forth] described in Section 10-6-109 , [it] the governing body shall adopt [for the ensuing fiscal
             131      period]:
             132          (a) an ["]operating and capital budget["] for each enterprise fund for the ensuing fiscal
             133      period; and [shall adopt]
             134          (b) the type of budget for other special funds as required by the Uniform Accounting
             135      Manual for Utah Cities.
             136          [(2) (a) An "operating and capital budget," for purposes of this section, means a plan of
             137      financial operation for an enterprise or other required special fund, embodying estimates of
             138      operating resources and expenses and other outlays for a fiscal period.]
             139          [(b) Except as otherwise expressly provided, the reference to "budget" or "budgets" and
             140      the procedures and controls relating to them in other sections of this chapter do not apply or
             141      refer to the "operating and capital budgets" provided for in this section.]
             142          [(3) "Operating and capital budgets" shall be adopted and administered in the following
             143      manner:]
             144          (3) (a) The governing body shall adopt and administer an operating and capital budget
             145      in accordance with this Subsection (3).
             146          [(a) On] (b) At or before the first regularly scheduled meeting of the governing body in
             147      the last May of the current fiscal period, the budget officer shall:
             148          (i) prepare for the ensuing fiscal period and file with the governing body a tentative
             149      operating and capital budget for:


             150          (A) each enterprise fund; and [for]
             151          (B) other required special funds[, together with];
             152          (ii) include with the tentative operating and capital budget described in Subsection
             153      (3)(b)(i) specific work programs as submitted by [the] each department head; and
             154          (iii) include any other supporting data required by the governing body.
             155          [(b)] (c) Each city of the first or second class shall, and [a] each city of the third, fourth,
             156      or fifth class may, submit a supplementary estimate of all capital projects which [the] a
             157      department head believes should be undertaken within the three next succeeding fiscal periods.
             158          [(c) (i) The budget officer shall prepare estimates in cooperation with the appropriate
             159      department heads.]
             160          [(ii) Each department head shall be heard by the budget officer before making final
             161      estimates, but thereafter the officer may revise any department's estimate for the purpose of
             162      presenting the budget to the governing body.]
             163          [(d) (i) If within any enterprise fund,]
             164          (d) (i) Subject to Subsection (3)(d)(ii), the budget officer shall prepare all estimates
             165      after review and consultation with each department head described in Subsection (3)(c).
             166          (ii) After complying with Subsection (3)(d)(i), the budget officer may revise any
             167      departmental estimate before it is filed with the governing body.
             168          (e) (i) If the governing body includes in a tentative budget or an amendment to a budget
             169      allocations or transfers from an enterprise fund to another fund that are not reasonable
             170      allocations of costs between [funds are included in a tentative budget,] the enterprise fund and
             171      the other fund, the governing body shall:
             172          (A) hold a public hearing;
             173          (B) prepare a written notice of the date, time, place, and purpose of the hearing [shall
             174      be mailed to utility fund customers], as described in Subsection (3)(e)(ii); and
             175          (C) subject to Subsection (3)(e)(iii), mail the written notice to each enterprise fund
             176      customer at least seven days [prior to the hearing] before the day of the hearing.
             177          (ii) The purpose portion of the written notice required under Subsection [(3)(d)(i)]
             178      (3)(e)(i)(B) shall identify:
             179          (A) the enterprise [utility] fund from which money is being transferred;
             180          (B) the amount being transferred; and


             181          (C) the fund to which the money is being transferred.
             182          (iii) The governing body:
             183          (A) may print the written notice required under Subsection (3)(e)(i) on the enterprise
             184      fund customer's bill; and
             185          (B) shall include the written notice required under Subsection (3)(e)(i) as a separate
             186      notification mailed or transmitted with the enterprise fund customer's bill.
             187          (4) (a) [The] Each tentative budget [or budgets], amendment to a budget, or budget
             188      shall be reviewed and considered by the governing body at any regular meeting or special
             189      meeting called for that purpose.
             190          (b) The governing body may make changes in the tentative budgets.
             191          (5) Budgets for enterprise or other required special funds shall comply with the public
             192      hearing requirements established in Sections 10-6-113 and 10-6-114 .
             193          (6) (a) Before the last June 30 of each fiscal period, or, in the case of a property tax
             194      increase under Sections 59-2-919 through 59-2-923 , before August 31 of the year for which a
             195      property tax increase is proposed, the governing body shall adopt an operating and capital
             196      budget for each applicable fund for the ensuing fiscal period.
             197          (b) A copy of the budget as finally adopted for each fund shall be:
             198          (i) certified by the budget officer;
             199          (ii) filed by the budget officer in the office of the city auditor or city recorder;
             200          (iii) available to the public during regular business hours; and
             201          (iv) filed with the state auditor within 30 days after [adoption] the day on which the
             202      budget is adopted.
             203          (7) (a) Upon final adoption, the operating and capital budget is in effect for the budget
             204      period, subject to later amendment.
             205          (b) During the budget period the governing body may, in any regular meeting or special
             206      meeting called for that purpose, review any one or more of the operating and capital budgets
             207      for the purpose of determining if the total of any of them should be increased.
             208          (c) If the governing body decides that the budget total of one or more of the funds
             209      should be increased under Subsection (7)(b), the governing body shall follow the procedures
             210      set forth in Section 10-6-136 [shall be followed].
             211          (8) Expenditures from operating and capital budgets shall conform to the requirements


             212      relating to budgets specified in Sections 10-6-121 through 10-6-126 .
             213          Section 6. Section 17-36-26 is amended to read:
             214           17-36-26. Increase in budgetary fund or general fund -- Public hearing.
             215          (1) [(a) The] Before the governing body may, by resolution, increase a budget
             216      appropriation of any budgetary fund, increase the budget of the general fund [may be increased
             217      by resolution of the governing body, only after a duly called hearing shall have been held and
             218      all], or make an amendment to a budgetary fund or the general fund, the governing body shall
             219      hold a public hearing giving all interested parties [shall have been given] an opportunity to be
             220      heard.
             221          [(b)] (2) Notice of [such] the public hearing described in Subsection (1) shall be
             222      published at least five days before [such] the day of the hearing:
             223          (a) (i) [(A)] in at least one issue of a newspaper generally circulated in the county; or
             224          [(B)] (ii) if there is not a newspaper generally circulated in the county, the hearing may
             225      be published by posting notice in three conspicuous places within the county; and
             226          [(ii) as required in Section 45-1-101 .]
             227          [(2) After such public hearing the governing body may amend the general fund budget
             228      as it deems appropriate with due consideration to matters discussed at the public hearing and to
             229      revised estimates of revenues.]
             230          (b) on the Utah Public Notice Website created under Section 63F-1-701 .
             231          Section 7. Section 17-36-32 is amended to read:
             232           17-36-32. Operating and capital budget -- Expenditures.
             233          (1) (a) ["Operating and capital budget," for purposes of this section,] As used in this
             234      section, "operating and capital budget" means a plan of financial operation for an enterprise or
             235      other special fund embodying estimates of operating and nonoperating resources and expenses
             236      and other outlays for a fiscal period.
             237          (b) Except as otherwise expressly provided, "budget" or "budgets" and the procedures
             238      and controls relating [thereto] to them in other sections of this act are not applicable to the
             239      ["]operating and capital budgets["] provided in this section.
             240          (2) [Before or at] At or before the time that the governing body adopts budgets for the
             241      budgetary funds specified in Section 17-36-8 , [it] the governing body shall adopt an
             242      ["]operating and capital budget["] for the next fiscal period for:


             243          (a) each enterprise fund; and [for]
             244          (b) any other special nonbudgetary fund for which operating and capital budgets are
             245      prescribed by the uniform system of budgeting, accounting, and reporting.
             246          [(3) Operating and capital budgets shall be adopted and administered in the following
             247      manner:]
             248          (3) (a) The governing body shall adopt and administer the operating and capital budget
             249      in accordance with this Subsection (3).
             250          [(a) On] (b) At or before the first day of the next to last month of each fiscal period,
             251      the budget officer shall prepare for the next fiscal period on forms provided pursuant to Section
             252      17-36-4 , and file with the governing body a tentative operating and capital budget for:
             253          (i) each enterprise fund; and [for]
             254          (ii) any other special fund that requires an operating and capital budget.
             255          [(b)] (c) The tentative operating and capital budget shall be accompanied by a
             256      supplementary estimate of all capital projects or planned capital projects:
             257          (i) within the next fiscal period; and
             258          (ii) within the [next succeeding] fiscal period immediately following the fiscal period
             259      described in Subsection (3)(c)(i).
             260          [(c) The] (d) (i) Subject to Subsection (3)(d)(ii), the budget officer shall prepare all
             261      [the] estimates after review and consultation, if requested, with [the concerned] a department[,
             262      but thereafter] proposing a capital project.
             263          (ii) After complying with Subsection (3)(d)(i), the budget officer [has authority to] may
             264      revise any departmental estimate before it is filed with the governing body.
             265          [(d) (i) If within any enterprise utility fund,]
             266          (e) (i) If a governing body includes in a tentative budget, or an amendment to a budget,
             267      allocations or transfers between an enterprise fund and another fund that are not reasonable
             268      allocations of costs between [funds are included in a tentative budget,] the enterprise fund and
             269      the other fund, the governing body shall:
             270          (A) hold a public hearing;
             271          (B) prepare a written notice of the date, time, place, and purpose of the hearing [shall
             272      be mailed to utility fund customers], in accordance with Subsection (3)(e)(ii); and
             273          (C) subject to Subsection (3)(e)(iii), mail the notice to each enterprise fund customer at


             274      least seven days before the day of the hearing.
             275          (ii) The purpose portion of the written notice described in Subsection (3)(e)(i)(B) shall
             276      identify:
             277          (A) the enterprise [utility] fund from which money is being transferred;
             278          (B) the amount being transferred; and
             279          (C) the fund to which the money is being transferred.
             280          (iii) The governing body:
             281          (A) may print the written notice required under Subsection (3)(e)(i) on the enterprise
             282      fund customer's bill; and
             283          (B) shall include the written notice required under Subsection (3)(e)(i) as a separate
             284      notification mailed or transmitted with the enterprise fund customer's bill.
             285          [(e) (i) The] (f) (i) The governing body shall review the tentative operating and capital
             286      budget [shall be reviewed by the governing body] at any regular or special meeting called for
             287      that purpose.
             288          (ii) [The] In accordance with Subsection (3)(f)(i), the governing body may make any
             289      changes [it] to the tentative operating and capital budget that the governing body considers
             290      advisable.
             291          (iii) Before the close of the fiscal period, the governing body shall adopt an operating
             292      and capital budget for the next fiscal period.
             293          [(f)] (g) (i) Upon final adoption by the governing body, the operating and capital
             294      budget shall be in effect for the budget period subject to amendment.
             295          (ii) The governing body shall:
             296          [(ii) A] (A) certify a copy of the operating and capital budget for each fund [shall be
             297      certified by] with the budget officer; and [made]
             298          (B) make a copy available to the public during business hours in the offices of the
             299      county auditor.
             300          (iii) [A] The governing body shall file a copy of the operating and capital budget [shall
             301      be filed] with the state auditor within 30 days after [its adoption] the day on which the
             302      operating and capital budget is adopted.
             303          (iv) The governing body may during the budget period amend the operating and capital
             304      budget of an enterprise or other special fund by resolution.


             305          (v) A copy of the operating and capital budget as amended shall be filed with the state
             306      auditor.
             307          (4) Any expenditure from an operating and capital budget shall conform to the
             308      requirements for budgets specified by Sections 17-36-20 , 17-36-22 , 17-36-23 , and 17-36-24 .
             309          Section 8. Repealer.
             310          This bill repeals:
             311          Section 17-36-25, Budget appropriation increase.


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