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S.B. 18

This document includes House Committee Amendments incorporated into the bill on Fri, Feb 14, 2014 at 11:30 AM by lerror. -->              1     

LOCAL GOVERNMENT GENERAL FUND AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Daniel W. Thatcher

             5     
House Sponsor: R. Curt Webb

             6     

             7      LONG TITLE
             8      Committee Note:
             9          The Political Subdivisions Interim Committee recommended this bill.
             10      General Description:
             11          This bill amends provisions related to a town, city, or county general fund.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends references to a "general fund" in the municipal and county code to clarify
             15      that the term means a town general fund, city general fund, or county general fund,
             16      and not the state general fund;
             17          .    defines "town general fund," "city general fund," and "county general fund";
             18          .    amends obscure language; and
             19          .    makes technical and conforming amendments.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          10-1-302, as enacted by Laws of Utah 1996, Chapter 280
             27          10-5-106, as enacted by Laws of Utah 1983, Chapter 34



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             28
         10-5-113, as last amended by Laws of Utah 1986, Chapter 181
             29          10-5-118, as last amended by Laws of Utah 2007, Chapter 328
             30          10-5-119, as last amended by Laws of Utah 2007, Chapter 329
             31          10-6-106, as last amended by Laws of Utah 2003, Chapter 292
             32          10-6-109, as last amended by Laws of Utah 1999, Chapter 300
             33          10-6-116, as last amended by Laws of Utah 2013, Chapter 241
             34          10-6-117, as last amended by Laws of Utah 1999, Chapter 300
             35          10-6-129, as last amended by Laws of Utah 2007, Chapter 328
             36          10-6-131, as last amended by Laws of Utah 2007, Chapter 329
             37          10-6-133, as last amended by Laws of Utah 1989, Chapter 118
             38          10-18-302, as last amended by Laws of Utah 2010, Chapter 90
             39          17-16-18, as last amended by Laws of Utah 2009, Chapter 186
             40          17-27a-403, as last amended by Laws of Utah 2012, Chapter 212
             41          17-31-3, as last amended by Laws of Utah 2011, Chapter 297
             42          17-36-3, as last amended by Laws of Utah 2012, Chapter 17
             43          17-36-6, as last amended by Laws of Utah 1996, Chapter 212
             44          17-36-8, as last amended by Laws of Utah 1999, Chapter 300
             45          17-36-9, as last amended by Laws of Utah 2012, Chapter 17
             46          17-36-16, as last amended by Laws of Utah 2003, Chapter 167
             47          17-36-26, as last amended by Laws of Utah 2010, Chapters 90 and 116
             48          17-36-27, as last amended by Laws of Utah 2007, Chapter 328
             49          17-36-29, as last amended by Laws of Utah 2007, Chapter 329
             50          17-36-31, as last amended by Laws of Utah 1993, Chapter 227
             51          17-36-36, as last amended by Laws of Utah 1983, Chapter 73
             52          17-36-37, as last amended by Laws of Utah 2009, Chapter 323
             53          17-36-51, as renumbered and amended by Laws of Utah 2000, Chapter 133
             54          17-36-52, as renumbered and amended by Laws of Utah 2000, Chapter 133
             55          17-36-53, as renumbered and amended by Laws of Utah 2000, Chapter 133
             56          17-36-54, as last amended by Laws of Utah 2005, Chapter 105
             57      ENACTS:
             58          10-5-102.5, Utah Code Annotated 1953



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             59
    

             60      Be it enacted by the Legislature of the state of Utah:
             61          Section 1. Section 10-1-302 is amended to read:
             62           10-1-302. Purpose and intent.
             63          The Legislature finds that:
             64          (1) the energy industry has previously been highly regulated and monopolistic;
             65          (2) municipalities have historically raised town or city, respectively, general fund
             66      revenues by collecting franchise and business license revenues from the energy industry;
             67          (3) substantial restructuring of the energy industry has created an opportunity for
             68      increased competition within the energy industry;
             69          (4) the restructuring of the energy industry has diminished the effectiveness and
             70      fairness of the revenues collected by municipalities;
             71          (5) to provide for a stable revenue source for municipalities and to create a more
             72      competitive environment for the energy industry, it is necessary to enact taxing authority for
             73      municipalities that accomplishes those goals; and
             74          (6) this part does not alter or affect the municipalities' authority to grant or regulate
             75      franchises, or to control municipal streets, highways, or other property.
             76          Section 2. Section 10-5-102.5 is enacted to read:
             77          10-5-102.5. Definitions.
             78          As used in this chapter, "town general fund" means the fund used by a town to account
             79      for all receipts, disbursements, assets, liabilities, reserves, fund balances, revenues, and
             80      expenditures not required to be accounted for in other funds.
             81          Section 3. Section 10-5-106 is amended to read:
             82           10-5-106. Funds for which budget prepared.
             83          The mayor shall prepare for each budget year a budget for:
             84          (1) the town general fund, including state allocated road funds;
             85          (2) special revenue funds;
             86          (3) debt service funds;
             87          (4) capital improvement funds; and
             88          (5) enterprise funds.
             89          Section 4. Section 10-5-113 is amended to read:



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             90
          10-5-113. Accumulation of retained earnings or fund balance -- Limit as to
             91      general fund -- Reserve for capital improvements.
             92          (1) [Towns] A town may accumulate retained earnings or fund balances, as
             93      appropriate, in any fund.
             94          (2) The accumulation of a fund balance in the [General Fund] town general fund may
             95      not exceed 75% of the total H. [ estimated ] .H revenue of the [General Fund] town general fund
             95a      H. for the current fiscal period .H .
             96          (3) (a) The town council may, in [any] a budget year, appropriate from estimated
             97      revenue or excess fund balance in the [General Fund] town general fund to a reserve for capital
             98      improvements[,]:
             99          (i) for the purpose of financing future specified capital improvements[, pursuant to];
             100      and
             101          (ii) in accordance with a formal long-range capital plan adopted by the governing body.
             102          (b) The reserves described in Subsection (3)(a) may accumulate from year to year in a
             103      capital improvements fund until the accumulated total is sufficient to permit economical
             104      expenditure for the specified purposes.
             105          Section 5. Section 10-5-118 is amended to read:
             106           10-5-118. Emergency expenditures.
             107          (1) [The] If the town council[, on determining] determines that an emergency exists,
             108      such as widespread damage from fire, flood, or earthquake, and that the emergency necessitates
             109      the expenditure of money in excess of the budget of the town general fund, the council may
             110      amend the budget and authorize [such] expenditures [as may be] that are reasonably necessary
             111      to meet the emergency.
             112          (2) Except to the extent provided for in Title 53, Chapter [2] 2a, Part [4] 6, Disaster
             113      Recovery Funding Act, a town council [of a town] may not expend money in the town's local
             114      fund for an emergency, if the town creates a local fund under Title 53, Chapter [2] 2a, Part [4]
             115      6, Disaster Recovery Funding Act.
             116          Section 6. Section 10-5-119 is amended to read:
             117           10-5-119. Special fund balance -- Disposition when fund no longer required.
             118          [Whenever the necessity for maintaining any special fund of a town has ceased to exist]
             119      If the purpose for which a special fund was created no longer exists, and a balance remains in
             120      the fund, the [governing body] town council shall authorize the transfer of the balance to the



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             121
     fund balance account in the town general fund [of the town], subject to all of the following:
             122          (1) Any balance remaining in a special assessment fund and any unrequired balance in
             123      [its] the town's special improvements guaranty fund shall be treated in the manner provided in
             124      Sections 11-42-413 and 11-42-701 [;].
             125          (2) Any balance remaining in a capital improvements or capital projects fund shall be
             126      transferred to:
             127          (a) the appropriate debt service fund or other fund as required by the bond ordinance
             128      [may require and otherwise]; or
             129          (b) to the fund balance account in the town general fund[;].
             130          (3) [Whenever any] (a) If the town council proposes to transfer a balance held in a
             131      trust fund for a specific purpose, other than a cemetery perpetual care trust fund, [is to be
             132      transferred] because [its] the trust fund's original purpose or restriction has ceased to exist, the
             133      town council shall hold a public hearing [shall be held in the manner provided] in accordance
             134      with Sections 10-5-108 and 10-5-109 . [The]
             135          (b) In addition to the notice requirements of Section 10-5-108 , the published notice
             136      shall invite [those persons] original contributors who contributed to the fund to appear at the
             137      hearing.
             138          (c) (i) If the town council determines that the fund balance amounts are refundable to
             139      the original fund contributors, [a 30-day period following the hearing shall be allowed for
             140      persons having an interest in the fund] the original contributors shall have 30 days after the day
             141      on which the hearing in Subsection (3)(a) is held to file with the council a verified claim only
             142      for the amount of each [claimant's contributions] original contributor's contribution.
             143          (ii) Any claim not filed in accordance with this section [shall be] is invalid and barred.
             144          (d) Any balance remaining, after refunds to eligible original contributors, shall be
             145      transferred to the fund balance account in the town general fund [of the town; and].
             146          (4) [Whenever] (a) If the town council decides, in [conformity] accordance with
             147      applicable laws and ordinances, that the need for continued maintenance of its cemetery
             148      perpetual care trust fund no longer exists, [it] the council may, subject to Subsection (4)(b),
             149      transfer the balance in [such] the cemetery perpetual care trust fund to the capital
             150      improvements fund [for expenditure for].
             151          (b) The balance transferred from the cemetery perpetual care trust fund to the capital



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     improvements fund shall be used for cemetery purposes only, including land, buildings, [and]
             153      or major improvements [to be used exclusively for cemetery purposes].
             154          Section 7. Section 10-6-106 is amended to read:
             155           10-6-106. Definitions.
             156          As used in this chapter:
             157          (1) "Account group" is defined by generally accepted accounting principles as reflected
             158      in the Uniform Accounting Manual for Utah Cities.
             159          (2) "Appropriation" means an allocation of money by the governing body for a specific
             160      purpose.
             161          (3) (a) "Budget" means a plan of financial operations for a fiscal period which
             162      embodies estimates of proposed expenditures for given purposes and the proposed means of
             163      financing them.
             164          (b) "Budget" may refer to the budget of a particular fund for which a budget is required
             165      by law or it may refer collectively to the budgets for all such funds.
             166          (4) "Budgetary fund" means a fund for which a budget is required.
             167          (5) "Budget officer" means the city auditor in a city of the first and second class, the
             168      mayor or some person appointed by the mayor with the approval of the city council in a city of
             169      the third, fourth, or fifth class, the mayor in the council-mayor optional form of government, or
             170      the person designated by the charter in a charter city.
             171          (6) "Budget period" means the fiscal period for which a budget is prepared.
             172          (7) "Check" means an order in a specific amount drawn upon a depository by an
             173      authorized officer of a city.
             174          (8) "City general fund" means the fund used by a city to account for all receipts,
             175      disbursements, assets, liabilities, reserves, fund balances, revenues, and expenditures not
             176      required to be accounted for in other funds.
             177          [(8)] (9) "Current period" means the fiscal period in which a budget is prepared and
             178      adopted, i.e., the fiscal period next preceding the budget period.
             179          [(9)] (10) "Department" means any functional unit within a fund that carries on a
             180      specific activity, such as a fire or police department within a [General Fund] city general fund.
             181          [(10)] (11) "Encumbrance system" means a method of budgetary control in which part
             182      of an appropriation is reserved to cover a specific expenditure by charging obligations, such as



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     purchase orders, contracts, or salary commitments to an appropriation account at their time of
             184      origin. Such obligations cease to be encumbrances when paid or when the actual liability is
             185      entered on the city's books of account.
             186          [(11)] (12) "Estimated revenue" means the amount of revenue estimated to be received
             187      from all sources during the budget period in each fund for which a budget is being prepared.
             188          [(12)] (13) "Financial officer" means the mayor in the council-mayor optional form of
             189      government or the city official as authorized by Section 10-6-158 .
             190          [(13)] (14) "Fiscal period" means the annual or biennial period for accounting for fiscal
             191      operations in each city.
             192          [(14)] (15) "Fund" is as defined by generally accepted accounting principles as
             193      reflected in the Uniform Accounting Manual for Utah Cities.
             194          [(15)] (16) "Fund balance," "retained earnings," and "deficit" have the meanings
             195      commonly accorded such terms under generally accepted accounting principles as reflected in
             196      the Uniform Accounting Manual for Utah Cities.
             197          [(16)] (17) "Governing body" means a city council, or city commission, as the case
             198      may be, but the authority to make any appointment to any position created by this chapter is
             199      vested in the mayor in the council-mayor optional form of government.
             200          [(17)] (18) "Interfund loan" means a loan of cash from one fund to another, subject to
             201      future repayment and does not constitute an expenditure or a use of retained earnings or fund
             202      balance of the lending fund or revenue to the borrowing fund.
             203          [(18)] (19) "Last completed fiscal period" means the fiscal period next preceding the
             204      current period.
             205          [(19)] (20) (a) "Public funds" means any money or payment collected or received by an
             206      officer or employee of the city acting in an official capacity and includes money or payment to
             207      the officer or employee for services or goods provided by the city, or the officer or employee
             208      while acting within the scope of employment or duty.
             209          (b) "Public funds" do not include money or payments collected or received by an
             210      officer or employee of a city for charitable purposes if the mayor or city council has consented
             211      to the officer's or employee's participation in soliciting contributions for a charity.
             212          [(20)] (21) "Special fund" means any fund other than the [General Fund] city general
             213      fund.



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         [(21)] (22) "Warrant" means an order drawn upon the city treasurer, in the absence of
             215      sufficient money in the city's depository, by an authorized officer of a city for the purpose of
             216      paying a specified amount out of the city treasury to the person named or to the bearer as
             217      money becomes available.
             218          Section 8. Section 10-6-109 is amended to read:
             219           10-6-109. Budget required for certain funds -- Capital projects fund budget.
             220          (1) The budget officer shall prepare for each budget period a budget for each of the
             221      following funds:
             222          (a) the city general fund, including the class "C" and collector road funds;
             223          (b) special revenue funds;
             224          (c) debt service funds; and
             225          (d) capital improvement funds.
             226          (2) (a) Major capital improvements financed by general obligation bonds, capital
             227      grants, or interfund transfers, shall use a capital projects fund budget.
             228          (b) The term of the budget shall coincide with the term of the individual project or
             229      projects.
             230          (c) To the extent appropriate, the requirements for preparation, adoption, and execution
             231      of the budgets of the funds enumerated in Subsection (1) [above], as set forth in this chapter,
             232      shall apply to budgets of capital projects funds.
             233          Section 9. Section 10-6-116 is amended to read:
             234           10-6-116. Accumulated fund balances -- Limitations -- Excess balances --
             235      Unanticipated excess of revenues -- Reserves for capital improvements.
             236          (1) [Cities are permitted to] (a) A city may accumulate retained earnings or fund
             237      balances, as appropriate, in any fund. With respect to the city general fund only, any
             238      accumulated fund balance is restricted to the following purposes:
             239          [(a)] (i) to provide working capital to finance expenditures from the beginning of the
             240      budget period until general property taxes, sales taxes, or other applicable revenues are
             241      collected, thereby reducing the amount the city must borrow during the period[, but this
             242      Subsection (1)(a) does not permit the appropriation of any fund balance for budgeting purposes
             243      except as provided in Subsection (4)];
             244          [(b)] (ii) to provide a resource to meet emergency expenditures under Section



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             245
     10-6-129 ; and
             246          [(c)] (iii) to cover a pending year-end excess of expenditures over revenues from an
             247      unavoidable shortfall in revenues. [This provision does not permit the appropriation of any]
             248          (b) Notwithstanding Subsection (1)(a)(i), a city may not appropriate a fund balance for
             249      budgeting purposes except as provided in Subsection (4).
             250          (c) Notwithstanding Subsection (1)(a)(iii), a city may not appropriate a fund balance to
             251      avoid an operating deficit during any budget period except as provided under Subsection (4), or
             252      for emergency purposes under Section 10-6-129 .
             253          (2) The accumulation of a fund balance in the city general fund may not exceed 25% of
             254      the total H. [ estimated ] .H revenue of the city general fund H. for the current
             254a      fiscal period .H .
             255          (3) If the fund balance at the close of any fiscal period exceeds the amount permitted
             256      under Subsection (2), the excess shall be appropriated in the manner provided in Section
             257      10-6-117 .
             258          (4) Any fund balance in excess of 5% of the total revenues of the city general fund may
             259      be utilized for budget purposes.
             260          (5) (a) Within a capital improvements fund, the governing body may, in any budget
             261      period, appropriate from estimated revenue or fund balance to a reserve for capital
             262      improvements for the purpose of financing future specific capital improvements, under a
             263      formal long-range capital plan adopted by the governing body.
             264          (b) The reserves described in Subsection (5)(a) may accumulate from fiscal period to
             265      fiscal period until the accumulated total is sufficient to permit economical expenditure for the
             266      specified purposes.
             267          (c) Disbursements from [these] reserves described in Subsection (5)(a) shall be made
             268      only by transfer to a revenue or transfer account within the capital improvements fund, under a
             269      budget appropriation in a budget for the fund adopted in the manner provided by this chapter.
             270          (d) Expenditures from the above appropriation budget accounts shall conform to all
             271      requirements of this chapter relating to execution and control of budgets.
             272          Section 10. Section 10-6-117 is amended to read:
             273           10-6-117. Appropriations not to exceed estimated expendable revenue --
             274      Determination of revenue -- Appropriations for existing deficits.
             275          (1) The governing body of any city may not make any appropriation in the final budget



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     of any fund in excess of the estimated expendable revenue for the budget period of the fund.
             277          (2) In determining the estimated expendable revenue of the city general fund for the
             278      budget period, there shall be included therein as an appropriation from the fund balance that
             279      portion of the fund balance at the close of the last completed fiscal period, not previously
             280      included in the budget of the current period, that exceeds the amount permitted in Section
             281      10-6-116 .
             282          (3) (a) There shall be included as an item of appropriation in each fund for any budget
             283      period any existing deficit as of the close of the last completed fiscal period, not previously
             284      included in the budget of the current period, to the extent of at least 5% of the total revenue of
             285      the fund in its last completed fiscal period.
             286          (b) If the total amount of the deficit is less than 5% of the total revenue in the last
             287      completed fiscal period, the entire amount of the deficit shall be included.
             288          Section 11. Section 10-6-129 is amended to read:
             289           10-6-129. Emergency expenditures.
             290          (1) If the governing body of a city determines that an emergency exists, such as
             291      widespread damage from fire, flood, or earthquake, and that the emergency necessitates the
             292      expenditure of money in excess of the budget of the city general fund, the governing body may
             293      by resolution amend the budget and authorize such expenditures and incur such deficits in the
             294      fund balance of the city general fund as may be reasonably necessary to meet the emergency.
             295          (2) Except to the extent provided for in Title 53, Chapter [2] 2a, Part [4] 6, Disaster
             296      Recovery Funding Act, the governing body of a city may not expend money in the city's local
             297      fund for an emergency, if the city creates a local fund under Title 53, Chapter [2] 2a, Part [4] 6,
             298      Disaster Recovery Funding Act.
             299          Section 12. Section 10-6-131 is amended to read:
             300           10-6-131. Transfer of balances in special funds.
             301          [Whenever] If the necessity for maintaining any special fund of a city has ceased to
             302      exist and a balance remains in the fund, the governing body shall authorize the transfer of the
             303      balance to the fund balance account in the city general fund of the city, [except that] subject to
             304      all of the following:
             305          (1) Any balance remaining in a special assessment fund and any unrequired balance in
             306      [its] the city's special improvements guaranty fund shall be treated in the manner provided in



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             307
     Sections 11-42-413 and 11-42-701 [;].
             308          (2) Any balance remaining in a capital improvements or capital projects fund shall be
             309      transferred to:
             310          (a) the appropriate debt service fund or other fund as required by the bond ordinance
             311      [may require and otherwise]; or
             312          (b) to the fund balance account in the city general fund[;].
             313          (3) [Whenever any] (a) If the governing body proposes to transfer a balance held in a
             314      trust fund for a specific purpose, other than a cemetery perpetual care trust fund, [is to be
             315      transferred] because [its] the trust fund's original purpose or restriction has ceased to exist, the
             316      governing body shall hold a public hearing [shall be held in the manner provided] in
             317      accordance with Sections 10-6-113 and 10-6-114 . [The]
             318          (b) In addition to the notice requirements of Section 10-6-113 , the published notice
             319      shall invite those [persons] original contributors who contributed to the fund to appear at the
             320      hearing.
             321          (c) (i) If the governing body determines that the fund balance amounts are refundable
             322      to the original fund contributors, [a 30 day period following the hearing shall be allowed for
             323      persons having an interest in the fund] the original contributors shall have 30 days after the day
             324      on which the hearing in Subsection (3)(a) is held to file with the governing body a verified
             325      claim only for the amount of each [claimant's contributions] original contributor's contribution.
             326          (ii) Any claim not [so filed shall be forever barred] filed in accordance with this section
             327      is invalid and barred.
             328          (d) Any balance remaining, after refunds to eligible original contributors, shall be
             329      transferred to the fund balance account in the city general fund [of the city; and].
             330          (4) [Whenever] (a) If the governing body decides, in [conformity] accordance with
             331      applicable laws and ordinances, that the need for continued maintenance of its cemetery
             332      perpetual care trust fund no longer exists, [it] the governing body may, subject to Subsection
             333      (4)(b), transfer the balance in [such] the cemetery perpetual care trust fund to the capital
             334      improvements fund [for expenditure for].
             335          (b) The balance transferred from the cemetery perpetual care trust fund to the capital
             336      improvements fund shall be used for cemetery purposes only, including land, buildings [and],
             337      or major improvements [to be used exclusively for cemetery purposes].



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             338
         Section 13. Section 10-6-133 is amended to read:
             339           10-6-133. Property tax levy -- Time for setting -- Computation of total levy --
             340      Apportionment of proceeds -- Maximum levy.
             341          (1) (a) Before June 22 of each year, or August 17 in the case of a property tax rate
             342      increase under Sections 59-2-919 through 59-2-923 , the governing body of each city, including
             343      charter cities, at a regular meeting or special meeting called for that purpose, shall by ordinance
             344      or resolution set the real and personal property tax levy for various municipal purposes[, but].
             345          (b) Notwithstanding Subsection (1)(a), the governing body may set the levy [may be
             346      set] at an appropriate later date with the approval of the State Tax Commission.
             347          (2) In its computation of the total levy, the governing body shall determine the
             348      requirements of each fund for which property taxes are to be levied and shall specify in its
             349      ordinance or resolution adopting the levy the amount apportioned to each fund.
             350          (3) The proceeds of the levy apportioned for [General Fund] city general fund purposes
             351      shall be credited as revenue in the [General Fund] city general fund.
             352          (4) The proceeds of the levy apportioned for special fund purposes shall be credited to
             353      the appropriate accounts in the applicable special funds.
             354          (5) The combined levies for each city, including charter cities, for all purposes in any
             355      year, excluding the retirement of general obligation bonds and the payment of any interest, and
             356      taxes expressly authorized by law to be levied in addition, may not exceed .007 per dollar of
             357      taxable value of taxable property.
             358          Section 14. Section 10-18-302 is amended to read:
             359           10-18-302. Bonding authority.
             360          (1) In accordance with Title 11, Chapter 14, Local Government Bonding Act, the
             361      legislative body of a municipality may by resolution determine to issue one or more revenue
             362      bonds or general obligation bonds to finance the capital costs for facilities necessary to provide
             363      to subscribers:
             364          (a) a cable television service; or
             365          (b) a public telecommunications service.
             366          (2) The resolution described in Subsection (1) shall:
             367          (a) describe the purpose for which the indebtedness is to be created; and
             368          (b) specify the dollar amount of the one or more bonds proposed to be issued.



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             369
         (3) (a) A revenue bond issued under this section shall be secured and paid for:
             370          (i) from the revenues generated by the municipality from providing:
             371          (A) cable television services with respect to revenue bonds issued to finance facilities
             372      for the municipality's cable television services; and
             373          (B) public telecommunications services with respect to revenue bonds issued to finance
             374      facilities for the municipality's public telecommunications services; and
             375          (ii) notwithstanding Subsection (3)(b) and Subsection 10-18-303 (3)(a), from revenues
             376      generated under Title 59, Chapter 12, Sales and Use Tax Act, if:
             377          (A) notwithstanding Subsection 11-14-201 (3) and except as provided in Subsections
             378      (4) and (5), the revenue bond is approved by the registered voters in an election held:
             379          (I) except as provided in Subsection (3)(a)(ii)(A)(II), pursuant to the provisions of Title
             380      11, Chapter 14, Local Government Bonding Act, that govern bond elections; and
             381          (II) notwithstanding Subsection 11-14-203 (2), at a regular general election;
             382          (B) the revenues described in this Subsection (3)(a)(ii) are pledged as security for the
             383      revenue bond; and
             384          (C) the municipality or municipalities annually appropriate the revenues described in
             385      this Subsection (3)(a)(ii) to secure and pay the revenue bond issued under this section.
             386          (b) Except as provided in Subsection (3)(a)(ii), a municipality may not pay the
             387      origination, financing, or other carrying costs associated with the one or more revenue bonds
             388      issued under this section from the town or city, respectively, general funds or other enterprise
             389      funds of the municipality.
             390          (4) (a) As used in this Subsection (4), "municipal entity" means an entity created
             391      pursuant to an agreement:
             392          (i) under Title 11, Chapter 13, Interlocal Cooperation Act; and
             393          (ii) to which a municipality is a party.
             394          (b) The requirements of Subsection (3)(a)(ii)(A) do not apply to a municipality or
             395      municipal entity that issues revenue bonds, or to a municipality that is a member of a municipal
             396      entity that issues revenue bonds, if:
             397          (i) on or before March 2, 2004, the municipality that is issuing revenue bonds or that is
             398      a member of a municipal entity that is issuing revenue bonds has published the first notice
             399      described in Subsection (4)(b)(iii);



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             400
         (ii) on or before April 15, 2004, the municipality that is issuing revenue bonds or that
             401      is a member of a municipal entity that is issuing revenue bonds makes the decision to pledge
             402      the revenues described in Subsection (3)(a)(ii) as security for the revenue bonds described in
             403      this Subsection (4)(b)(ii);
             404          (iii) the municipality that is issuing the revenue bonds or the municipality that is a
             405      member of the municipal entity that is issuing the revenue bonds has:
             406          (A) held a public hearing for which public notice was given by publication of the
             407      notice:
             408          (I) in a newspaper published in the municipality or in a newspaper of general
             409      circulation within the municipality for two consecutive weeks, with the first publication being
             410      not less than 14 days before the public hearing; and
             411          (II) on the Utah Public Notice Website created in Section 63F-1-701 , for two weeks
             412      before the public hearing; and
             413          (B) the notice identifies:
             414          (I) that the notice is given pursuant to Title 11, Chapter 14, Local Government Bonding
             415      Act;
             416          (II) the purpose for the bonds to be issued;
             417          (III) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will
             418      be pledged in any fiscal year;
             419          (IV) the maximum number of years that the pledge will be in effect; and
             420          (V) the time, place, and location for the public hearing;
             421          (iv) the municipal entity that issues revenue bonds:
             422          (A) adopts a final financing plan; and
             423          (B) in accordance with Title 63G, Chapter 2, Government Records Access and
             424      Management Act, makes available to the public at the time the municipal entity adopts the final
             425      financing plan:
             426          (I) the final financing plan; and
             427          (II) all contracts entered into by the municipal entity, except as protected by Title 63G,
             428      Chapter 2, Government Records Access and Management Act;
             429          (v) any municipality that is a member of a municipal entity described in Subsection
             430      (4)(b)(iv):



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             431
         (A) not less than 30 calendar days after the municipal entity complies with Subsection
             432      (4)(b)(iv)(B), holds a final public hearing;
             433          (B) provides notice, at the time the municipality schedules the final public hearing, to
             434      any person who has provided to the municipality a written request for notice; and
             435          (C) makes all reasonable efforts to provide fair opportunity for oral testimony by all
             436      interested parties; and
             437          (vi) except with respect to a municipality that issued bonds prior to March 1, 2004, not
             438      more than 50% of the average annual debt service of all revenue bonds described in this section
             439      to provide service throughout the municipality or municipal entity may be paid from the
             440      revenues described in Subsection (3)(a)(ii).
             441          (5) On or after July 1, 2007, the requirements of Subsection (3)(a)(ii)(A) do not apply
             442      to a municipality that issues revenue bonds if:
             443          (a) the municipality that is issuing the revenue bonds has:
             444          (i) held a public hearing for which public notice was given by publication of the notice:
             445          (A) in a newspaper published in the municipality or in a newspaper of general
             446      circulation within the municipality for two consecutive weeks, with the first publication being
             447      not less than 14 days before the public hearing; and
             448          (B) on the Utah Public Notice Website created in Section 63F-1-701 , for 14 days
             449      before the public hearing; and
             450          (ii) the notice identifies:
             451          (A) that the notice is given pursuant to Title 11, Chapter 14, Local Government
             452      Bonding Act;
             453          (B) the purpose for the bonds to be issued;
             454          (C) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be
             455      pledged in any fiscal year;
             456          (D) the maximum number of years that the pledge will be in effect; and
             457          (E) the time, place, and location for the public hearing; and
             458          (b) except with respect to a municipality that issued bonds prior to March 1, 2004, not
             459      more than 50% of the average annual debt service of all revenue bonds described in this section
             460      to provide service throughout the municipality or municipal entity may be paid from the
             461      revenues described in Subsection (3)(a)(ii).



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             462
         (6) A municipality that issues bonds pursuant to this section may not make or grant any
             463      undue or unreasonable preference or advantage to itself or to any private provider of:
             464          (a) cable television services; or
             465          (b) public telecommunications services.
             466          Section 15. Section 17-16-18 is amended to read:
             467           17-16-18. Salaries paid out of general fund.
             468          The salaries of county officers shall be paid monthly, semi-monthly, or bi-weekly, as
             469      determined by the county legislative body, out of the county general fund or the county salary
             470      fund[, as the case may be, of the county] upon the order of the county legislative body.
             471          Section 16. Section 17-27a-403 is amended to read:
             472           17-27a-403. Plan preparation.
             473          (1) (a) The planning commission shall provide notice, as provided in Section
             474      17-27a-203 , of its intent to make a recommendation to the county legislative body for a general
             475      plan or a comprehensive general plan amendment when the planning commission initiates the
             476      process of preparing its recommendation.
             477          (b) The planning commission shall make and recommend to the legislative body a
             478      proposed general plan for the unincorporated area within the county.
             479          (c) (i) The plan may include planning for incorporated areas if, in the planning
             480      commission's judgment, they are related to the planning of the unincorporated territory or of
             481      the county as a whole.
             482          (ii) Elements of the county plan that address incorporated areas are not an official plan
             483      or part of a municipal plan for any municipality, unless it is recommended by the municipal
             484      planning commission and adopted by the governing body of the municipality.
             485          (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,
             486      and descriptive and explanatory matter, shall include the planning commission's
             487      recommendations for the following plan elements:
             488          (i) a land use element that:
             489          (A) designates the long-term goals and the proposed extent, general distribution, and
             490      location of land for housing, business, industry, agriculture, recreation, education, public
             491      buildings and grounds, open space, and other categories of public and private uses of land as
             492      appropriate; and



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             493
         (B) may include a statement of the projections for and standards of population density
             494      and building intensity recommended for the various land use categories covered by the plan;
             495          (ii) a transportation and traffic circulation element consisting of the general location
             496      and extent of existing and proposed freeways, arterial and collector streets, mass transit, and
             497      any other modes of transportation that the planning commission considers appropriate, all
             498      correlated with the population projections and the proposed land use element of the general
             499      plan; and
             500          (iii) an estimate of the need for the development of additional moderate income
             501      housing within the unincorporated area of the county, and a plan to provide a realistic
             502      opportunity to meet estimated needs for additional moderate income housing if long-term
             503      projections for land use and development occur.
             504          (b) In drafting the moderate income housing element, the planning commission:
             505          (i) shall consider the Legislature's determination that counties should facilitate a
             506      reasonable opportunity for a variety of housing, including moderate income housing:
             507          (A) to meet the needs of people desiring to live there; and
             508          (B) to allow persons with moderate incomes to benefit from and fully participate in all
             509      aspects of neighborhood and community life; and
             510          (ii) may include an analysis of why the recommended means, techniques, or
             511      combination of means and techniques provide a realistic opportunity for the development of
             512      moderate income housing within the planning horizon, which means or techniques may include
             513      a recommendation to:
             514          (A) rezone for densities necessary to assure the production of moderate income
             515      housing;
             516          (B) facilitate the rehabilitation or expansion of infrastructure that will encourage the
             517      construction of moderate income housing;
             518          (C) encourage the rehabilitation of existing uninhabitable housing stock into moderate
             519      income housing;
             520          (D) consider county general fund subsidies to waive construction related fees that are
             521      otherwise generally imposed by the county;
             522          (E) consider utilization of state or federal funds or tax incentives to promote the
             523      construction of moderate income housing;



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             524
         (F) consider utilization of programs offered by the Utah Housing Corporation within
             525      that agency's funding capacity; and
             526          (G) consider utilization of affordable housing programs administered by the
             527      Department of Workforce Services.
             528          (c) In drafting the land use element, the planning commission shall:
             529          (i) identify and consider each agriculture protection area within the unincorporated area
             530      of the county; and
             531          (ii) avoid proposing a use of land within an agriculture protection area that is
             532      inconsistent with or detrimental to the use of the land for agriculture.
             533          (3) The proposed general plan may include:
             534          (a) an environmental element that addresses:
             535          (i) the protection, conservation, development, and use of natural resources, including
             536      the quality of air, forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals,
             537      and other natural resources; and
             538          (ii) the reclamation of land, flood control, prevention and control of the pollution of
             539      streams and other waters, regulation of the use of land on hillsides, stream channels and other
             540      environmentally sensitive areas, the prevention, control, and correction of the erosion of soils,
             541      protection of watersheds and wetlands, and the mapping of known geologic hazards;
             542          (b) a public services and facilities element showing general plans for sewage, water,
             543      waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
             544      police and fire protection, and other public services;
             545          (c) a rehabilitation, redevelopment, and conservation element consisting of plans and
             546      programs for:
             547          (i) historic preservation;
             548          (ii) the diminution or elimination of blight; and
             549          (iii) redevelopment of land, including housing sites, business and industrial sites, and
             550      public building sites;
             551          (d) an economic element composed of appropriate studies and forecasts, as well as an
             552      economic development plan, which may include review of existing and projected county
             553      revenue and expenditures, revenue sources, identification of basic and secondary industry,
             554      primary and secondary market areas, employment, and retail sales activity;



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             555
         (e) recommendations for implementing all or any portion of the general plan, including
             556      the use of land use ordinances, capital improvement plans, community development and
             557      promotion, and any other appropriate action;
             558          (f) provisions addressing any of the matters listed in Subsection 17-27a-401 (2); and
             559          (g) any other element the county considers appropriate.
             560          Section 17. Section 17-31-3 is amended to read:
             561           17-31-3. Reserve fund authorized -- Use of collected funds.
             562          The county legislative body may create a reserve fund and any funds collected but not
             563      expended during any fiscal year [do not revert to the general fund of the governing bodies but]
             564      shall be retained in a special fund to be used in accordance with Sections 17-31-2 through
             565      17-31-5 .
             566          Section 18. Section 17-36-3 is amended to read:
             567           17-36-3. Definitions.
             568          As used in this chapter:
             569          (1) "Accrual basis of accounting" means a method where revenues are recorded when
             570      earned and expenditures recorded when they become liabilities notwithstanding that the receipt
             571      of the revenue or payment of the expenditure may take place in another accounting period.
             572          (2) "Appropriation" means an allocation of money for a specific purpose.
             573          (3) (a) "Budget" means a plan for financial operations for a fiscal period, embodying
             574      estimates for proposed expenditures for given purposes and the means of financing the
             575      expenditures.
             576          (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
             577      collectively to the budgets for all those funds.
             578          (4) "Budgetary fund" means a fund for which a budget is required, such as those
             579      described in Section 17-36-8 .
             580          (5) "Budget officer" means:
             581          (a) for a county of the second, third, fourth, fifth, or sixth class, the county auditor,
             582      county clerk, or county executive as provided in Subsection 17-19-19 (1); or
             583          (b) for a county of the first class, a person described in Section 17-19a-203 .
             584          (6) "Budget period" means the fiscal period for which a budget is prepared.
             585          (7) "Check" means an order in a specific amount drawn upon the depositary by any



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             586
     authorized officer in accordance with Section 17-19-3 , 17-19a-301 , 17-24-1 , or 17-24-1.1 , as
             587      applicable.
             588          (8) "County general fund" means the fund used by a county to account for all receipts,
             589      disbursements, assets, liabilities, reserves, fund balances, revenues, and expenditures not
             590      required to be accounted for in other funds.
             591          [(8)] (9) "Countywide service" means a service provided in both incorporated and
             592      unincorporated areas of a county.
             593          [(9)] (10) "Current period" means the fiscal period in which a budget is prepared and
             594      adopted.
             595          [(10)] (11) "Department" means any functional unit within a fund which carries on a
             596      specific activity.
             597          [(11)] (12) "Encumbrance system" means a method of budgetary control where part of
             598      an appropriation is reserved to cover a specific expenditure by charging obligations, such as
             599      purchase orders, contracts, or salary commitments to an appropriation account. An expenditure
             600      ceases to be an encumbrance when paid or when the actual liability is entered in the books of
             601      account.
             602          [(12)] (13) "Estimated revenue" means any revenue estimated to be received during the
             603      budget period in any fund for which a budget is prepared.
             604          [(13)] (14) "Fiscal period" means the annual or biennial period for recording county
             605      fiscal operations.
             606          [(14)] (15) "Fund" means an independent fiscal and accounting entity comprised of a
             607      sum of money or other resources segregated for a specific purpose or objective.
             608          [(15)] (16) "Fund balance" means the excess of the assets over liabilities, reserves, and
             609      contributions, as reflected by its books of account.
             610          [(16)] (17) "Fund deficit" means the excess of liabilities, reserves, and contributions
             611      over its assets, as reflected by its books of account.
             612          [(17) "General Fund" means the fund used to account for all receipts, disbursements,
             613      assets, liabilities, reserves, fund balances, revenues, and expenditures not required to be
             614      accounted for in other funds.]
             615          (18) "Interfund loan" means a loan of cash from one fund to another, subject to future
             616      repayment; but it does not constitute an expenditure or a use of retained earnings, fund balance,



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             617
     or unappropriated surplus of the lending fund.
             618          (19) "Last completed fiscal period" means the fiscal period next preceding the current
             619      period.
             620          (20) "Modified accrual basis of accounting" means a method under which expenditures
             621      other than accrued interest on general long-term debt are recorded at the time liabilities are
             622      incurred and revenues are recorded when they become measurable and available to finance
             623      expenditures of the current period.
             624          (21) "Municipal capital project" means the acquisition, construction, or improvement
             625      of capital assets that facilitate providing municipal service.
             626          (22) "Municipal service" means a service not provided on a countywide basis and not
             627      accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or
             628      irrigation water retail service, water conservation, local parks, sewers, sewage treatment and
             629      disposal, cemeteries, garbage and refuse collection, street lighting, airports, planning and
             630      zoning, local streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
             631          (23) "Retained earnings" means that part of the net earnings retained by an enterprise
             632      or internal service fund which is not segregated or reserved for any specific purpose.
             633          (24) "Special fund" means any fund other than the [General Fund] county general fund,
             634      such as those described in Section 17-36-6 .
             635          (25) "Unappropriated surplus" means that part of a fund which is not appropriated for
             636      an ensuing budget period.
             637          (26) "Warrant" means an order in a specific amount drawn upon the treasurer by the
             638      auditor.
             639          Section 19. Section 17-36-6 is amended to read:
             640           17-36-6. Required funds and accounts.
             641          (1) In its system of accounts, each county shall maintain the following funds or account
             642      groups that are appropriate to its needs:
             643          (a) a county general fund;
             644          (b) special revenue funds;
             645          (c) debt service funds to account for the retirement of general obligation bonds or other
             646      long-term indebtedness including the payment of interest;
             647          (d) capital project funds, as required to account for the application of proceeds from the



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             648
     sale of general obligation bonds or other general long-term debt, or funds derived from other
             649      sources, to the specific purposes for which they are authorized;
             650          (e) a separate fund for each utility or enterprise such as an airport fund, a sewer fund, a
             651      water fund, or other similar funds;
             652          (f) intragovernmental service funds;
             653          (g) trust and agency funds such as a cemetery perpetual-care fund or a retirement fund;
             654          (h) a separate fund for each special improvement district, which shall be known as a
             655      special assessment fund;
             656          (i) a ledger or group of accounts to record the details relating to the general fixed assets
             657      of the county;
             658          (j) a ledger or group of accounts to record the details relating to the general obligation
             659      bonds or other long-term indebtedness of the county;
             660          (k) municipal services fund as required in Section 17-36-9 ; and
             661          (l) any other funds for special purposes required or established under the uniform
             662      system of budgeting, accounting, and reporting.
             663          (2) The county shall classify the funds and account groups established under the
             664      authority of this section according to the uniform procedures established by this chapter.
             665          Section 20. Section 17-36-8 is amended to read:
             666           17-36-8. Preparation of budgets.
             667          The budget officer of each county shall prepare each budget period, on forms provided
             668      pursuant to Section 17-36-4 , a budget for each of the following funds which are included in its
             669      system of accounts:
             670          (1) county general fund;
             671          (2) special revenue funds;
             672          (3) debt service funds;
             673          (4) capital project funds; and
             674          (5) any other fund or funds for which a budget is required by the uniform system of
             675      budgeting, accounting, and reporting.
             676          Section 21. Section 17-36-9 is amended to read:
             677           17-36-9. Budget -- Financial plan -- Contents -- Municipal services and capital
             678      projects funds.



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             679
         (1) (a) The budget for each fund shall provide a complete financial plan for the budget
             680      period and shall contain in tabular form classified by the account titles as required by the
             681      uniform system of budgeting, accounting, and reporting:
             682          (i) estimates of all anticipated revenues;
             683          (ii) all appropriations for expenditures; and
             684          (iii) any additional data required by Section 17-36-10 or 17-36-10.1 , as applicable, or
             685      by the uniform system of budgeting, accounting, and reporting.
             686          (b) The total of appropriated expenditures shall be equal to the total of anticipated
             687      revenues.
             688          (2) (a) Each first-, second-, and third-class county that provides municipal-type
             689      services under Section 17-34-1 shall:
             690          (i) establish a special revenue fund, "Municipal Services Fund," and a capital projects
             691      fund, "Municipal Capital Projects Fund," or establish a local district or special service district
             692      to provide municipal services; and
             693          (ii) budget appropriations for municipal services and municipal capital projects from
             694      these funds.
             695          (b) The Municipal Services Fund is subject to the same budgetary requirements as the
             696      [county's] county general fund.
             697          (c) (i) Except as provided in Subsection (2)(c)(ii), the county may deposit revenue
             698      derived from any taxes otherwise authorized by law, income derived from the investment of
             699      money contained within the municipal services fund and the municipal capital projects fund,
             700      the appropriate portion of federal money, and fees collected into a municipal services fund and
             701      a municipal capital projects fund.
             702          (ii) The county may not deposit revenue derived from a fee, tax, or other source based
             703      upon a countywide assessment or from a countywide service or function into a municipal
             704      services fund or a municipal capital projects fund.
             705          (d) The maximum accumulated unappropriated surplus in the municipal services fund,
             706      as determined prior to adoption of the tentative budget, may not exceed an amount equal to the
             707      total estimated revenues of the current fiscal period.
             708          Section 22. Section 17-36-16 is amended to read:
             709           17-36-16. Retained earnings -- Accumulation -- Restrictions -- Disbursements.



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             710
         (1) (a) A county may accumulate retained earnings in any enterprise or internal service
             711      fund or a fund balance in any other fund[; but with respect to the General Fund, its].
             712          (b) Notwithstanding Subsection (1)(a), use of the county general fund shall be
             713      restricted to the following purposes:
             714          [(a)] (i) to provide cash to finance expenditures from the beginning of the budget
             715      period until general property taxes, sales taxes, or other revenues are collected;
             716          [(b)] (ii) to provide a fund or reserve to meet emergency expenditures; and
             717          [(c)] (iii) to cover unanticipated deficits for future years.
             718          (2) (a) The maximum accumulated unappropriated surplus in the [General Fund]
             719      county general fund, as determined prior to adoption of the tentative budget, may not exceed an
             720      amount equal to the greater of:
             721          (i) (A) for a county with a taxable value of $750,000,000 or more and a population of
             722      100,000 or more, 20% of the total revenues of the [General Fund] county general fund for the
             723      current fiscal period; or
             724          (B) for any other county, 50% of the total revenues of the [General Fund] county
             725      general fund for the current fiscal period; and
             726          (ii) the estimated total revenues from property taxes for the current fiscal period.
             727          (b) Any surplus balance in excess of the above computed maximum shall be included
             728      in the estimated revenues of the [General Fund] county general fund budget for the next fiscal
             729      period.
             730          (3) Any fund balance exceeding 5% of the total [General Fund] county general fund
             731      revenues may be used for budgetary purposes.
             732          (4) (a) A county may appropriate funds from estimated revenue in any budget period to
             733      a reserve for capital improvements within any capital improvements fund which has been duly
             734      established by ordinance or resolution.
             735          (b) Money in the reserves shall be allowed to accumulate from fiscal period to fiscal
             736      period until the accumulated total is sufficient to permit economical expenditure for the
             737      specified purposes.
             738          (c) Disbursements from the reserves shall be made only by transfer to a revenue
             739      account within a capital improvements fund pursuant to an appropriation for the fund.
             740          (d) Expenditures from the capital improvement budget accounts shall conform to all



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             741
     requirements of this act as it relates to the execution and control of budgets.
             742          Section 23. Section 17-36-26 is amended to read:
             743           17-36-26. Increase in budgetary fund or county general fund -- Public hearing.
             744          (1) Before the governing body may, by resolution, increase a budget appropriation of
             745      any budgetary fund, increase the budget of the county general fund, or make an amendment to a
             746      budgetary fund or the county general fund, the governing body shall hold a public hearing
             747      giving all interested parties an opportunity to be heard.
             748          (2) Notice of the public hearing described in Subsection (1) shall be published at least
             749      five days before the day of the hearing:
             750          (a) (i) in at least one issue of a newspaper generally circulated in the county; or
             751          (ii) if there is not a newspaper generally circulated in the county, the hearing may be
             752      published by posting notice in three conspicuous places within the county; and
             753          (b) on the Utah Public Notice Website created under Section 63F-1-701 .
             754          Section 24. Section 17-36-27 is amended to read:
             755           17-36-27. Emergency expenditures -- Deficit.
             756          (1) If the governing body determines that an emergency exists, such as widespread
             757      damage from fire, flood, or earthquake, and that the expenditure of money in excess of the
             758      county general fund budget is necessary, [it] the governing body may make [such] expenditures
             759      and incur [such] deficits [as] that are reasonably necessary to meet the emergency.
             760          (2) Except to the extent provided for in Title 53, Chapter 2a, Part 6, Disaster Recovery
             761      Funding Act, the governing body of the county may not expend money in the county's local
             762      fund for an emergency, if the county creates a local fund under Title 53, Chapter 2a, Part 6,
             763      Disaster Recovery Funding Act.
             764          Section 25. Section 17-36-29 is amended to read:
             765           17-36-29. Special fund ceases -- Transfer.
             766          [If the necessity to maintain any special fund ceases and there is a balance in such fund]
             767          (1) If the purpose for which a special fund was created no longer exists and a balance
             768      remains in the fund, the governing body shall authorize the transfer of the balance to the fund
             769      balance account in the [General Fund] county general fund.
             770          (2) Any balance which remains in a special assessment fund and any unrequired
             771      balance in a special improvement guaranty fund shall be treated as provided in Subsection



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             772
     11-42-701 (5).
             773          (3) Any balance which remains in a capital projects fund shall be transferred to the
             774      appropriate debt service fund or such other fund as the bond ordinance requires or to the county
             775      general fund balance account.
             776          Section 26. Section 17-36-31 is amended to read:
             777           17-36-31. Tax levy -- Amount.
             778          (1) (a) Before June 22 of each year, the county legislative body shall levy a tax on the
             779      taxable real and personal property within the county.
             780          (b) In [its] the legislative body's computation of the total levy subject to Sections
             781      59-2-908 and 59-2-911 , it shall determine the requirements for each fund and specify the
             782      amount of the levy apportioned to each fund.
             783          (2) The proceeds of the tax apportioned for purposes of the [General Fund] county
             784      general fund shall be credited in the [General Fund] county general fund.
             785          (3) The proceeds of the tax apportioned for utility and other special fund purposes shall
             786      be credited to the appropriate accounts in the utility or other special funds.
             787          Section 27. Section 17-36-36 is amended to read:
             788           17-36-36. Financial statements.
             789          (1) The budget officer shall present to the governing body the following financial
             790      statements prepared in the manner prescribed by the uniform system of budgeting, accounting,
             791      and reporting:
             792          [(1)] (a) A summary of cash receipts and disbursements for each fund or group of funds
             793      and for each department within each fund reportable at the end of each month showing the cash
             794      and invested balance at the beginning of the period, the total receipts collected during the
             795      period, the total disbursements made during the period and the cash and invested balance at the
             796      end of the period.
             797          [(2)] (b) Not less than once each quarter or more often if requested by the governing
             798      body, a condensed statement of revenues and expenditures and comparison with the budget of
             799      the county general fund and the allotments thereof, as reflected by the books of account.
             800          [(3)] (c) A comparative quarterly income and expense statement for each enterprise
             801      fund showing a comparative analysis between the operations of such fund for the current fiscal
             802      reporting period and the same period in the previous year.



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             803
         [(4)] (d) A condensed statement of the operating and capital budget of each enterprise
             804      fund showing revenues and expenses and balances compared with the budget for any period
             805      requested by the governing body or required by the uniform system of budgeting, accounting
             806      and reporting.
             807          [(5)] (e) Any other statements of operations or reports on financial condition as the
             808      governing body or the uniform system of budgeting, accounting, and reporting may require.
             809          (2) All financial statements made pursuant to this section shall be open for public
             810      inspection during regular business hours.
             811          Section 28. Section 17-36-37 is amended to read:
             812           17-36-37. Budget officer -- Annual financial statement -- Contents.
             813          (1) The budget officer of each county, within 180 days after the close of each fiscal
             814      period, or, for a county that has adopted a fiscal period that is a biennial period, within 180
             815      days after both the midpoint and the close of the fiscal period, except as provided by Section
             816      17-36-38 , shall prepare and make available to the governing body an annual financial report
             817      which shall contain:
             818          (a) a statement of revenues and expenditures and a comparison with the budget of the
             819      county general fund, similar statements of all other funds for which budgets are required, and
             820      statements of revenues and expenditures or of income and expense, as the case may be, of all
             821      other operating funds of the county;
             822          (b) a balance sheet of each fund and a combined balance sheet of all funds as of:
             823          (i) for a county that has adopted a fiscal period that is a biennial period, the midpoint
             824      and the close of the fiscal period; and
             825          (ii) for each other county, the close of the fiscal period; or
             826          (c) any other reports the governing body may require, including work performance
             827      data, tax levies, taxable values, details of bonded indebtedness, and historical facts of interest
             828      to the governing body and the public.
             829          (2) Copies of the annual report shall be furnished to the state auditor and made a matter
             830      of public record in the office of the budget officer.
             831          Section 29. Section 17-36-51 is amended to read:
             832           17-36-51. Establishment of tax stability and trust fund -- Increase in tax levy.
             833          (1) (a) Notwithstanding anything to the contrary contained in statute, the legislative



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             834
     body of any county may by ordinance establish and maintain a tax stability and trust fund, for
             835      the purpose of preserving funds during years with favorable tax revenues for use during years
             836      with less favorable tax revenues.
             837          (b) Each fund under Subsection (1)(a) shall be subject to all of the limitations and
             838      restrictions imposed by this section and Sections 17-36-52 and 17-36-53 .
             839          (c) The principal of the fund shall consist of all sums transferred to it in accordance
             840      with Subsection (2) and interest or other income retained in the fund under Subsection
             841      17-36-52 (2)(a).
             842          (2) (a) After establishing a tax stability and trust fund as provided in Subsection (1),
             843      the legislative body, in establishing the levy for the property tax levied by the county under
             844      Section 59-2-908 , may establish the levy at a level not to exceed .0001 per dollar of taxable
             845      value of taxable property increase per year that will permit the county to receive during that
             846      fiscal year sums in excess of what may be required to provide for the purposes of the county.
             847          (b) Any excess sums so received are to be transferred from the [General Fund of the
             848      county] county general fund into the tax stability and trust fund.
             849          Section 30. Section 17-36-52 is amended to read:
             850           17-36-52. Tax stability and trust fund -- Deposit or investment of funds -- Use of
             851      interest or other income.
             852          (1) (a) All amounts in the tax stability and trust fund established by a county under
             853      Section 17-36-51 may be deposited or invested as provided in Section 51-7-11 . [These]
             854          (b) The amounts described in Subsection (1)(a) may also be transferred by the county
             855      treasurer to the state treasurer under Section 51-7-5 for the treasurer's management and control
             856      under Title 51, Chapter 7, State Money Management Act.
             857          (2) (a) The interest or other income realized from amounts in the tax stability and trust
             858      fund shall be returned to the county general fund [of the county] during the fiscal year in which
             859      the income or interest is paid to the extent the interest or income is required by the county to
             860      provide for its purposes during that fiscal year. [Any amounts so returned]
             861          (b) An amount returned in accordance with Subsection (2)(a) may be used for all
             862      purposes as other amounts in [such] the county general fund.
             863          (c) Any interest or income [not so] that is not returned to the [county's] county general
             864      fund in accordance with Subsection (2)(a) shall be added to the principal of that county's tax



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             865
     stability and trust fund.
             866          Section 31. Section 17-36-53 is amended to read:
             867           17-36-53. Tax stability and trust fund -- Amount in fund limited -- Disposition of
             868      excess.
             869          (1) The total amount in a county's tax stability and trust fund established under Section
             870      17-36-51 shall be limited to the percentage of the total taxable value of property in that county
             871      not to exceed the limits provided in the following schedule:
             872        Total Taxable Value   Fund Limits
Percentage of
Taxable Value  
but not to
exceed:  
             873        Less than $500,000,000   1.6%     $5,000,000    
             874        From 500,000,000 to
1,500,000,000  

1.0%  
 
7,500,000  
 
             875        Over 1,500,000,000   .5%     15,000,000    
             876          (2) If any excess occurs in the tax stability and trust fund over the percentage or
             877      maximum dollar amounts specified in Subsection (1), this excess shall be transferred to the
             878      county general fund [of the county] and may be used for all purposes as other amounts in the
             879      county general fund are used.
             880          (3) [If] (a) Subject to Subsection (3)(b), if any excess in the fund exists because of a
             881      decrease in total taxable value, that excess may remain in the fund[, but if].
             882          (b) If the excess amount in the fund is decreased below the limitations of the fund for
             883      any reason, the fund limitations established under Subsection (1) apply.
             884          Section 32. Section 17-36-54 is amended to read:
             885           17-36-54. Tax stability and trust fund -- Use of principal -- Determination of
             886      necessity -- Election.
             887          (1) If the legislative body of a county that has established a tax stability and trust fund
             888      under Section 17-36-51 determines that it is necessary for purposes of that county to use any
             889      portion of the principal of the fund, the county legislative body shall submit this proposition to
             890      the electorate of that county in a special election called and held in the manner provided for in
             891      Title 11, Chapter 14, Local Government Bonding Act, for the holding of bond elections.



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             892
         (2) If the proposition is approved at [this] the special election by a majority of the
             893      qualified electors of the county voting at the election, then that portion of the principal of the
             894      fund covered by the proposition may be transferred to the [county's] county general fund for
             895      use for purposes of that county.





Legislative Review Note
    as of 9-19-13 12:16 PM


Office of Legislative Research and General Counsel


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