Nephi City adopts tentative budgets at last meeting
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By Myrna Trauntvein
Times-News Correspondent
The tentative budgets for Nephi City were adopted so that the city could legally conduct a public hearing at 7 p.m. on Tuesday, June 19, at city hall.
"The council needs to consider adopting a tentative revised budget for the fiscal year ending June 30," said Randy McKnight, city administrator. "The council then needs a separate motion to adopt the tentative budget for the next fiscal year."
The purpose of the public hearing is to accept public comment on the tentative revised budget for the fiscal year ending June 30, 2012 and on the tentative budget for the fiscal year ending June 30, 2013, including budgets for the enterprise funds and inter-fund transfers.
The council adopted, as required by law, first the tentative revised budget and, second, the tentative budget for the year ending on June 30, 2012 and beginning on July 1, 2012.
Copies of the tentative revised budget and of the tentative budget are now available for public inspection at the office of the Nephi City Recorder.
"It is almost certain that we will still make changes to the proposed budget," said McKnight.
However, the figures presented for the council to consider and for the public to review were nearing the final. They will receive some tweaking in the next two weeks and will then be addressed for a final budget adoption process.
In Utah, budgets are "fund" based. That means that every city maintains a general fund and that all revenue belongs to the general fund unless specifically earmarked for another fund.
There is also an Enterprise Fund which is used for services which charge a fee and this fund is handled like a business organization (golf courses, city run airports, sewer, gas and water utilities).
The Capital Project Fund consists of temporary funds that should be eliminated once the capital project is completed.
The Special Revenue Fund is used to account for special or specific revenue sources, for example grant funds or revenue legally restricted for specific purposes.
By state law a tentative budget must be presented to the council at the first meeting in May and, in June, the tentative budget must be available to the public before a public hearing is held on the budget.
The natural gas fund needed to be amended in the 2011-2012 budget, said McKnight. A significant amount of work was required on meters for large customers because they were original meters and needed to be updated.
"The replacement of these is somewhat costly and drives up the cost," said McKnight.
Another spot requiring attention, he said, was the fund for the school resource officer. The officer started about the time that school opened last fall. In addition, the council decided to pay for the vehicle needed by the officer in one year.
That budget item, however, will now be divided three ways. The funds from the city were taken from the police department and will now be divided between the city, the school district and Juab County. Each of those entities has agreed to pay one-third the cost of the officer.
The pool improvement project had also expanded from the original concept and the path between Orgill and Canyon View Parks was constructed with two bridges crossing Salt Creek.
"When the bridges were first considered, it was a decade ago and construction prices have increased since then," said McKnight.
Work was finished up on the one bridge and a new bridge was built and finished at 700 East.
Council will now review, consider and adopt the final budget which must occur before June 22nd if no tax rate increase is proposed, and one is not proposed.
The city has advertised the hearing and it will be the required seven days before hearing is held.
In the state of Utah, said McKnight, the city is required by law to have a balanced budget which means that revenues must equal expenditures.
"The city will have a $3.3 million in revenues," he said.
A transfer is the movement of money from one fund to another fund. Those transfers are made, said McKnight, to make certain that the budget is in balance for the previous year. Best estimates are then made for the next budget year and it is these budgets that will be adopted in their final form at the next council meeting.
"Sales tax has come up a bit but we are still way behind the money we collected three years ago," said McKnight.
"We will fine-tune the budget over the next two weeks and will then prepare a final budget, but, as of today, these are the numbers," he said.
However, no budget Is cast in stone. Even after the budget is adopted it may still be adapted to address revenue shortfalls, cost overruns, unexpected costs or unanticipated grants.
"We do have a highway tax that is collected in the city and will stay in the city," said McKnight. "We know that the money from that fund will be transferred to cover road repair and upkeep."
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