By Myrna Trauntvein
Times-News Correspondent
Tuesday, a tentative budget for Nephi City was reviewed by the city council in keeping with state law.
The Nephi City Corporation tentative expenditure budget for the fiscal year 2015 to 2016 is now in its tentative form and can be reviewed at city hall.
"State statute calls for the budget officer in a municipality to present to the governing body each year by the first council meeting in May a tentative budget for the approaching new fiscal year," said Randy McKnight, the city administrator.
McKnight presented a summary tentative budget that will mark the commencement of the formal budget preparation and adoption cycle for the fiscal year ending June 30, 2016.
A budget is a legal document that serves as a government entities' financial operating plan. It also serves as a reflection of policy priorities and is a tool for communicating with constituents how tax money is spent.
The budgeting process allows citizens an opportunity to be heard by their elected officials.
Utah budgets are fund based and consist of a general fund, and enterprise fund, a capital project fund and special revenue funds.
All revenue belongs to the general fund unless it is specifically earmarked for another fund.
"This is just the tentative budget," said McKnight. "You all know, from past experience, that there is still work to be done before we adopt the final budget."
The total appropriations budget for all funds is listed as $18,369,710.
The total in the general fund, as earmarked in the tentative budget, is $4,049,729.
That covers administrative costs, the justice court, non-departmental funds, general government buildings, planning and zoning, the police department, building inspections, the street department, the airport, the city engineer, the parks department, the golf course, organized recreation, the city library, cemeteries, and contributions to the general fund.
The capital projects fund is set at $3,155,000; the water and sewer fund at $825,000; the electric fund at $7,110,662; the solid waste fund at $405,000; the natural gas fund at $3,155,250, and the Nephi Industrial Development Agency at $169,069.
"Utah's municipal fiscal year runs from July 1 to June 30," said McKnight.
Budget preparation each year follows the state statute for dates. In addition, certain aspects of adopting a budget for the coming year are also set by state law.
The process begins with the budget officer receiving requests from departments. Those requests are then revised to match the revenue of the city because, in Utah, all revenue must match all expenditures so that the city can demonstrate a balanced budget.
The budget is presented to the council by the first Tuesday in May and a public hearing is scheduled.
"Budget discussions continue to be held by the governing body," said McKnight.
A budget hearing is held after 48 hours of advertising and more budget discussions are held by the governing body.
"The final budget must be adopted by June 22," said McKnight.
The statute is specific: on or before the first regularly scheduled town council meeting of May, the tentative budget for each fund for which a budget is required must be prepared and that tentative budget must be made available for public inspection and must be submitted to the town council.
"When we presented the tentative budget last year," said Blair Painter, city recorder, "there was very, very little change between it and the final budget."
He said that deserved a pat on the back for work well done.
