Utah Code 11-13-512. Accumulated fund balances — Limitations — Excess balances — Unanticipated excess of revenues — Reserves for capital projects
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(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
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- 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
(1)(a) An interlocal entity may accumulate retained earnings or fund balances, as appropriate, in any fund.
(1)(b) For the interlocal entity general fund only, an accumulated fund balance at the end of a budget year may be used only:
(1)(b)(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);
(1)(b)(ii) to provide a resource to meet emergency expenditures under Section 11-13-521; or
(1)(b)(iii) to cover a pending year-end excess of expenditures over revenues from an unavoidable shortfall in revenues, subject to Subsection (1)(d).
(1)(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).
(1)(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:
(1)(d)(i) as provided under Subsection (4); or
(1)(d)(ii) for emergency purposes under Section 11-13-521.
(2) The accumulation of a fund balance in the interlocal entity general fund may not exceed the greater of:
(2)(a) 100% of the current year‘s property tax collected by the interlocal entity; or
(2)(b)
(2)(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
(2)(b)(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.
(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)
(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.
(5)(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.
(5)(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.
(5)(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.