11-13-512. Accumulated fund balances — Limitations — Excess balances — Unanticipated excess of revenues — Reserves for capital projects.
| (1) |
Terms Used In Utah Code 11-13-512- Board: means the Permanent Community Impact Fund Board created by Section 35A-8-304, and its successors. See Utah Code 11-13-103
- Budget: means a plan of financial operations for a fiscal year that embodies estimates of proposed expenditures for given purposes and the proposed means of financing them, and may refer to the budget of a particular fund for which a budget is required by law or may refer collectively to the budgets for all required funds. See Utah Code 11-13-501
- Budget year: means the fiscal year for which a budget is prepared. See Utah Code 11-13-501
- Current year: means the fiscal year in which a budget is prepared and adopted, and which is the fiscal year immediately preceding the budget year. See Utah Code 11-13-501
- Deficit: means the occurrence when expenditures exceed revenues. See Utah Code 11-13-501
- Estimated revenue: means the amount of revenue estimated to be received from all sources during the budget year in each fund for which a budget is being prepared. See Utah Code 11-13-501
- Fund: has the meaning provided in generally accepted accounting principles. See Utah Code 11-13-501
- Fund balance: has the meaning provided in generally accepted accounting principles. See Utah Code 11-13-501
- General fund: has the meaning provided in generally accepted accounting principles. See Utah Code 11-13-501
- Governing board: includes a board of directors described in an agreement, as amended, that creates a project entity. See Utah Code 11-13-103
- Interlocal entity: includes a governmental nonprofit corporation, as that term is defined in Section 11-13a-102. See Utah Code 11-13-501
- Interlocal entity general fund: means the general fund of an interlocal entity. See Utah Code 11-13-501
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Retained earnings: has the meaning provided in generally accepted accounting principles. See Utah Code 11-13-501
| (a) |
An interlocal entity may accumulate retained earnings or fund balances, as appropriate, in any fund. |
| (b) |
For the interlocal entity general fund only, an accumulated fund balance at the end of a budget year may be used only:
| (i) |
to provide working capital to finance expenditures from the beginning of the budget year until general property taxes or other applicable revenues are collected, subject to Subsection (1)(c); |
| (ii) |
to provide a resource to meet emergency expenditures under Section 11-13-521; or |
| (iii) |
to cover a pending year-end excess of expenditures over revenues from an unavoidable shortfall in revenues, subject to Subsection (1)(d). |
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| (c) |
Subsection (1)(b)(i) may not be construed to authorize an interlocal entity to appropriate a fund balance for budgeting purposes, except as provided in Subsection (4). |
| (d) |
Subsection (1)(b)(iii) may not be construed to authorize an interlocal entity to appropriate a fund balance to avoid an operating deficit during a budget year except:
| (i) |
as provided under Subsection (4); or |
| (ii) |
for emergency purposes under Section 11-13-521. |
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| (2) |
The accumulation of a fund balance in the interlocal entity general fund may not exceed the greater of:
| (a) |
100% of the current year‘s property tax collected by the interlocal entity; or |
| (b) |
| (i) |
35% of the total interlocal entity general fund revenues for an interlocal entity with an annual interlocal entity general fund budget greater than $100,000; or |
| (ii) |
65% of the total interlocal entity general fund revenues for an interlocal entity with an annual interlocal entity general fund budget equal to or less than $100,000. |
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| (3) |
If the interlocal entity general fund balance at the close of a fiscal year exceeds the amount permitted under Subsection (2), the interlocal entity shall appropriate the excess in the manner provided in Section 11-13-513. |
| (4) |
Any interlocal entity general fund balance in excess of 5% of the total revenues of the interlocal entity general fund may be utilized for budget purposes. |
| (5) |
| (a) |
Within a capital projects fund the governing board may, in a budget year, appropriate from estimated revenue or a fund balance to a reserve account for capital projects for the purpose of financing future specific capital projects, including new construction, capital repairs, replacement, and maintenance, under a formal long-range capital plan adopted by the governing board. |
| (b) |
An interlocal entity may allow a reserve amount under Subsection (5)(a) to accumulate from year to year until the accumulated total is sufficient to permit economical expenditure for the specified purposes. |
| (c) |
An interlocal entity may disburse from a reserve account under Subsection (5)(a) only by a budget appropriation adopted in the manner provided by this part. |
| (d) |
Expenditures from a reserve account described in Subsection (5)(a) shall conform to all requirements of this part relating to execution and control of budgets. |
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Amended by Chapter 52, 2021 General Session
