Adopting an Annual Budget: Cities, Towns, & Townships: Checklist

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Legal requirements are found in Utah Code 10-6 (for cities and townships) & 10-5 (for towns).

• Budget Officer requests and gathers budget proposals from departments.
• Budget Officer determines preliminary budget for all non-departmental line items.
• Budget Officer estimates capital projects for the budget year and three succeeding years.
• Budget Officer drafts a tentative budget.
• If the budget contains a subsidy transfer from an enterprise fund to another fund:
  • Mail public notice of intended transfer at least 7 days prior to hearing.
  • Email public notice of intended transfer to users if bills are sent via email.
  • Post notice on Utah Public Notice Website.
  • Post notice on entity website, if one exists.
• Governing body adopts the tentative budget in a regular meeting on or before its last meeting in May.
• Governing body members review tentative budget.
• Governing body considers holding a budget work meeting.
• Governing body may revise or amend the tentative budget prior to public hearing.
• Governing body set date for a public hearing concerning adoption of the budget.
• Public hearing notice is posted at least 7 days prior to the date of the hearing:
  • On Utah Public Notice Website.
  • In local newspaper, if one exists.
  • On entity website, if one exists.
• The proposed budget is made available to the public at least 10 days prior to the public hearing.
• All governmental funds in the proposed budget must balance in one of the following ways:
  • Total revenues equal total expenditures.
  • Total revenues plus contribution from fund balance equal total expenditures.
  • Total revenues equal total expenditures plus contribution to fund balance.
• All transfers to or from other funds must net to zero.
• Transfers with other funds must indicate which fund the transfer is going to or coming from, or provide a separate schedule of transfers that provides the same clarity.
• If there is a deficit fund balance in a fund at the close of the last completed fiscal year, appropriate amounts in the current budget equal to:
  • At least 5% of the total revenue of the fund in the last completed fiscal year; or
  • If the deficit is equal to less than 5% of the total revenue of the fund in the last completed fiscal year, the entire amount of the deficit.
• The public hearing is held on the appointed date.
• Governing body considers making final adjustments.
• Governing body sets the tax rate and certifies it to the county auditor before June 22.
  • Unless adopting a tax rate greater than the certified tax rate, then before September 1.
• Governing body adopts the budget before June 30.
  • Unless adopting a tax rate greater than the certified tax rate, then before September 1.
• Make adopted budget available to the public.
• Adopted budget submitted to Office of the State Auditor within 30 days of adoption.
• Adopted property tax rate submitted to county auditor.
• Contact State Tax Commission if adopted tax rate exceeds the certified rate to begin Truth in Taxation process.
• If the adopted budget contains a subsidy transfer out of an enterprise fund
  • Within 7 days of adoption:
    • Post specific enterprise fund data to entity website, if one exists.
    • Post specific enterprise fund data to all social media accounts of the entity.
  • Within 30 days of adoption:
    • Submit specific enterprise fund information to State Auditor.
  • Within 60 days of adoption:
    • Mail users a notice of decision to transfer.
    • Email to users a notice of decision to transfer if bill is sent via email.