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[Utah Code Table of Contents]
[TITLE 10. Table of Contents]
10-5-101 Short title.
This chapter shall be known and may be cited as the "Uniform
Fiscal Procedures Act for Utah Towns."
1983
10-5-102 Applicability.
This chapter shall apply to all towns.
1983
10-5-103 Withholding state money of town failing to file budget.
The state auditor is authorized to withhold state money
allocated to a town if that town fails to file a copy of
a formally adopted budget or fails to comply with the annual
financial reporting and independent auditing requirements
of this chapter. Such money shall not be withheld if the
town substantially complies with the requirements of this
chapter.
1983
10-5-104 Fiscal year.
The fiscal year of all towns shall begin July 1 of each
year and shall end June 30 of the following year.
1983
10-5-105 Revenue and expenditure records.
Towns shall record their revenues and expenditures according
to current generally accepted accounting principles prescribed
by the state auditor.
1983
10-5-106 Funds for which budget prepared.
The mayor shall prepare for each budget year a budget
for: (1) the general fund, including state allocated road
funds; (2) special revenue funds; (3) debt service funds;
(4) capital improvement funds; and (5) enterprise funds.
1983
10-5-107 Tentative budgets required for public inspection - Contents - Adoption of tentative budget.
(1) (a) On or before the first regularly scheduled town council meeting of May, the mayor shall:
(i) prepare for the ensuing year, on forms provided by the state auditor, a tentative budget for each fund for which a budget is required;
(ii) make the tentative budget available for public inspection; and
(iii) submit the tentative budget to the town council.
(b) The tentative budget of each fund shall set forth in tabular form:
(i) actual revenues and expenditures in the last completed fiscal year;
(ii) estimated total revenues and expenditures for the current fiscal year; and
(iii) the mayor's estimates of revenues and expenditures for the budget year.
(2) (a) The mayor shall:
(i) estimate the amount of revenue available to serve the needs of each fund;
(ii) estimate the portion to be derived from all sources other than general property taxes; and
(iii) estimate the portion that must be derived from general property taxes.
(b) From the estimates required by Subsection (2)(a), the mayor shall compute and disclose in the budget the lowest rate of property tax levy that will raise the required amount of revenue, calculating the levy on the latest taxable value.
(3) (a) Before the public hearing required under Section 10-5-108 , the town council:
(i) shall review, consider, and tentatively adopt the tentative budget in any regular meeting or special meeting called for that purpose; and
(ii) may amend or revise the tentative budget.
(b) At the meeting at which the town council adopts the tentative budget, the council shall establish the time and place of the public hearing required under Section 10-5-108 .
(4) (a) If within any enterprise utility fund, allocations or transfers that are not reasonable allocations of costs between funds are included in a tentative budget, a written notice of the date, time, place, and purpose of the hearing shall be mailed to utility fund customers at least seven days before the hearing.
(b) The purpose portion of the notice shall identify:
(i) the enterprise utility fund from which money is being transferred;
(ii) the amount being transferred; and
(iii) the fund to which the money is being transferred.
2006
10-5-108 Budget hearing - Notice - Adjustments.
(1) Prior to the adoption of the final budget, each town council shall hold a public hearing to receive public comment.
(2) The council shall provide notice of the place, purpose, and time of the public hearing by publishing notice at least seven days before the hearing at least once in a newspaper of general circulation in the town, but if there is no newspaper of general circulation, then by posting the notice in three public places at least 48 hours prior to the hearing.
(3) After the hearing, the council, subject to Section
10-5-110
, may adjust expenditures and revenues in conformity
with this chapter.
2001
10-5-109 Adoption of budgets - Filing.
Prior to June 22 of each year, or August 17 in the case
of a property tax increase under Sections
59-2-919
through
59-2-923
, the council shall by resolution or ordinance
adopt a budget for the ensuing fiscal year for each fund
for which a budget is required under this chapter. A copy
of the final budget for each fund shall be filed with the
state auditor within 30 days after adoption.
1989
10-5-110 Budgets effective for year - Amendment - Public access.
On final adoption, each budget shall be in effect for
the budget year, subject to later amendment. A copy of each
adopted budget shall be available to the public during regular
business hours.
1983
10-5-111 Basis for property tax levy.
From the effective date of the budget or of any amendment
enacted prior to the date on which property taxes are levied,
the amount stated therein as the amount of estimated revenue
from property taxes shall constitute the basis for determining
the property tax levy to be set by the council for the corresponding
tax year, subject to the applicable limitations imposed by
law.
1983
10-5-112 Property tax levy set by ordinance - Maximum - Certification.
(1) Not later than June 22 of each year, or August 17 in the case of a property tax increase under Sections 59-2-919 through 59-2-923 , the council, at a regular meeting or special meeting called for that purpose, shall by ordinance or resolution set the real and personal property tax levy for town purposes, but the levy may be set at an appropriate later date with the approval of the State Tax Commission.
(2) The combined levies for each town, for all purposes in any year, excluding the retirement of general obligation bonds and the payment of any interest, and taxes expressly authorized by law to be levied in addition, may not exceed .007 per dollar of taxable value of taxable property.
(3) The town clerk shall certify the ordinance or resolution
setting the levy to the county auditor, or auditors, if the
town is located in more than one county, not later than June
22 of each year.
1989
10-5-113 Accumulation of retained earnings or fund balance - Limit as to general fund - Reserve for capital improvements.
(1) Towns may accumulate retained earnings or fund balances, as appropriate, in any fund.
(2) The accumulation of a fund balance in the General Fund may not exceed 75% of the total estimated revenue of the General Fund.
(3) The council may, in any budget year, appropriate from
estimated revenue or excess fund balance in the General Fund
to a reserve for capital improvements, for the purpose of
financing future specified capital improvements, pursuant
to a formal long-range capital plan adopted by the governing
body. The reserves may accumulate from year to year in a
capital improvements fund until the accumulated total is
sufficient to permit economical expenditure for the specified
purposes.
1986
10-5-114 Appropriations limited to estimated revenue.
The council shall not make any appropriation in the final
budget of any fund in excess of the estimated expendable
revenue for the budget year of such fund.
1983
10-5-115 Expenditures limited to appropriations - Obligations in excess invalid - Processing claims required.
Town officers shall not make or incur expenditures or
encumbrances in excess of total appropriations for any department
in the budget as adopted or as subsequently amended. Any
obligation contracted by any such officer shall not be or
become valid or enforceable against the town. No check or
warrant to cover any claim against any appropriation shall
be drawn until the claim has been processed as provided by
this chapter.
1983
10-5-116 Transfer of unencumbered appropriation balance.
The council may reduce or transfer any unencumbered or
unexpended appropriation balance or portion thereof from
one department in a fund to another within the same fund,
but no appropriation for debt retirement and interest, reduction
of deficit, or other appropriation required by law or ordinance
shall be reduced below the minimums required.
1983
10-5-117 Increasing budget total of fund.
Except for enterprise funds, which may be increased without
a public hearing, the council may increase the budget total
of one or more of these funds by following the procedures
set forth in Section
10-5-108
.
1986
10-5-118 Emergency expenditures.
The council, on determining that an emergency exists,
such as widespread damage from fire, flood, or earthquake,
and that the emergency necessitates the expenditure of money
in excess of the budget of the general fund, may amend the
budget and authorize such expenditures as may be reasonably
necessary to meet the emergency.
1983
10-5-119 Special fund balance - Disposition when fund no longer required.
Whenever the necessity for maintaining any special fund of a town has ceased to exist and a balance remains in the fund, the governing body shall authorize the transfer of the balance to the fund balance account in the general fund of the town, subject to the following:
(1) Any balance remaining in a special assessment fund and any unrequired balance in its special improvements guaranty fund shall be treated in the manner provided in Sections 17A-3-332 and 17A-3-334 ;
(2) Any balance remaining in a capital improvements or capital projects fund shall be transferred to the appropriate debt service fund or other fund as the bond ordinance may require and otherwise to the fund balance account in the general fund;
(3) Whenever any balance held in a trust fund for a specific purpose, other than a cemetery perpetual care trust fund, is to be transferred because its original purpose or restriction has ceased to exist, a public hearing shall be held in the manner provided in Sections 10-5-108 and 10-5-109 . The published notice shall invite those persons who contributed to the fund to appear at the hearing. If the council determines the fund balance amounts are refundable to the original contributors, a 30-day period following the hearing shall be allowed for persons having an interest in the fund to file with the council a verified claim only for the amount of each claimant's contributions. Any claim not filed in accordance with this section shall be invalid. Any balance remaining, after refunds to eligible contributors, shall be transferred to the fund balance account in the general fund of the town; and
(4) Whenever the council decides, in conformity with applicable
laws and ordinances, that the need for continued maintenance
of its cemetery perpetual care trust fund no longer exists,
it may transfer the balance in such fund to the capital improvements
fund for expenditure for land, buildings, and major improvements
to be used exclusively for cemetery purposes.
1992
10-5-120 Loans between funds - Bonds purchased by funds.
Subject to restrictions imposed by bond ordinance, statute,
or other controlling regulations, the council may (1) authorize
interfund loans from one fund to another at such interest
rates and upon such repayment terms and conditions as it
may prescribe, and (2) with available cash in any fund, purchase
or otherwise acquire for investment unmatured bonds of the
town or of any fund of the town.
1983
10-5-121 Records of council proceedings - Clerk's records as evidence.
The town clerk shall attend the meetings and keep the
record of the proceedings of the council. Copies of all papers
filed in the clerk's office and transcripts from all records
of the council, if certified by the clerk under the town
seal are admissible in all courts as originals.
1983
10-5-122 Signing and record of contracts by clerk.
The town clerk shall countersign all contracts made on
behalf of the town and shall maintain an indexed record of
all such contracts.
1983
10-5-123 Fund records maintained - Pre-audit of claims - Certifications on voucher - Bids received and advertisement records - Time for keeping.
(1) The town clerk shall maintain the general books for each fund of the town and all subsidiary records relating thereto, including a list of the outstanding bonds, their purpose, amount, terms, date, and place payable.
(2) The town clerk shall preaudit all claims and demands against the town before they are allowed, and shall prepare the necessary checks in payment. The town clerk shall certify on the voucher or check copy, as appropriate, that:
(a) the claim has been preaudited and documented;
(b) the claim has been directly approved by the council;
(c) the claim is within the lawful debt limit of the town; and
(d) the claim does not overexpend the appropriate departmental budget established by the council.
(3) Whenever any town is required by law to receive bids for purchases, construction, repairs, or any other purpose requiring the expenditure of funds, that town shall keep on file all bids received, together with proof of advertisement by publication or otherwise, for:
(a) at least three years following the letting of any contract pursuant to those bids; or
(b) three years following the first advertisement for
the bids, if all bids pursuant to that advertisement are
rejected.
2004
10-5-124 Warrants tendered for claims.
If the town is without funds on deposit in one of its
appropriate bank accounts with which to pay any lawfully
approved claim, the town clerk may draw and sign a warrant
on the treasurer of the town for payment of the claim, the
warrant to be tendered to the payee named thereon.
1983
10-5-125 Treasurer - Duties.
(1) The town treasurer is custodian of all money, bonds, or other securities of the town.
(2) The town treasurer shall:
(a) determine the cash requirements of the town and provide for the investment of all monies by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act;
(b) receive all monies payable to the town, within three business days after collection, including all taxes, licenses, fines, and intergovernmental revenue;
(c) keep an accurate detailed account of all monies received under Subsection (2)(b) in the manner provided in this chapter and as directed by the town council by ordinance or resolution; and
(d) collect all special taxes and assessments as provided
by law and ordinance.
1992
10-5-126 Receipts for payments to town - Filing copies.
The town treasurer shall give or cause to be given to
every person paying money to the town treasury, a receipt
or other evidence of payment therefor, specifying, as appropriate,
the date of payment and on which account the payment was
made and shall file the duplicate of the receipt, a summary
report, or other evidence of payment in the office of the
clerk.
1983
10-5-127 Signing of checks - Determination of sufficiency of account.
The town treasurer, or in his absence a deputy treasurer
appointed by the council, shall sign all checks prepared
by the town clerk. Prior to affixing the signature, the treasurer
or deputy treasurer shall determine that a sufficient amount
is on deposit in the appropriate bank account of the town
to honor the check. The council may also designate any town
officer to countersign checks.
1983
10-5-128 Deposit of town funds - Commingling with personal funds prohibited - Suspension from office for unauthorized use or profit from town funds.
The treasurer shall promptly deposit all town funds in
the appropriate bank accounts of the town. It shall be unlawful
for any person to commingle town funds with his or her own
money. Whenever it shall appear that the treasurer or any
officer is making profit out of public money, or is using
the same for any purpose not authorized by law, such treasurer
or officer shall be suspended from office.
1983
10-5-129 Annual financial report.
(1) (a) Within 180 days after the close of each fiscal year the town clerk or other delegated person shall present to the council an annual financial report.
(b) Each annual financial report shall identify impact fee funds by the year in which they were received, the project from which the funds were collected, the capital projects for which the funds are budgeted, and the projected schedule for expenditure.
(2) The requirement under Subsection (1)(a) to present
an annual financial report may be satisfied by an audit report
or annual financial report of an independent auditor.
2006
10-5-130 Town fiscal committee - Creation - Appointment of members - Terms - Vacancies - Functions.
(1) There is hereby created a town fiscal committee, the members of which shall be:
(a) four elected or appointed municipal officials, appointed by the state auditor from a list recommended by the Utah League of Cities and Towns; and
(b) two additional members who are knowledgeable in the area of municipal fiscal affairs appointed by the state auditor.
(2) Members shall be appointed to four-year terms, provided that the term of an elected official shall terminate on ceasing to be an elected official, but any appointed position shall be deemed to be vacated if the member fails to attend more than two consecutive regularly scheduled meetings of the committee.
(3) Any vacancy shall be filled by the state auditor from the same class as the original appointment as described in Subsection (1). Members may be reappointed.
The committee shall assist, advise and make recommendations
to the state auditor in the preparation of uniform accounting
and reporting procedures and program and performance accounting,
budgeting, and reporting for towns.
1983
10-5-131 Uniform accounting and reporting procedures - Forms - Instructions.
The state auditor, with the concurrence of the town fiscal committee, shall:
(1) prescribe uniform accounting and reporting procedures for towns, in conformity with generally accepted accounting principles;
(2) conduct a continuing review and modification of the procedures to improve them;
(3) prepare and supply each town with suitable budget and reporting forms; and
(4) prepare instructional materials, conduct training
programs and render other services considered necessary to
assist towns in implementing the uniform accounting, budgeting,
and reporting procedures.
1992
