Budgeting and Bonding Information
Approved: 5-8-13 (DB, DBA, DBC, DBG, DBJ, DEA, DEC, DF, DFA, and DG)
The budget is probably the most important single publication that the Board of Education and the District presents to local citizens. The budget serves as both a guide and control over the operations of the District during the fiscal year. The budget and the processes in developing it shall be in accordance with 53G-7-3 “Public Education System-Local Administration.
The Superintendent, as Executive Officer of the Board, and the Business Administrator are responsible for initiating the budgeting process and insuring that the steps leading to the final acceptance of the budget and approval by the Board of Education are carried out in the proper time frame.
Since the budget is essentially a plan, it should be based on the best information available at the time it is prepared. The persons in the positions to provide this information for any particular area should be involved in the budgeting process at their level of responsibility and at the appropriate time.
- It is the Superintendent’s responsibility for coordinating the overall budget scheme and providing for such factors as growth and inflation, and to also maintain the highest level of education possible within the amount of available funds. (53G-7-302)
- In preparing the budget, the Business Administrator shall set forth, in detail, the revenues and expenditures of the preceding fiscal year; the estimated revenues and expenditures of the current fiscal year; and the revenue estimates for the next succeeding fiscal year
- The classification of titles and accounts in such budget shall be determined by the Utah State Office of Education.
- The District’s budget is the legal basis for the establishment of the certified tax rate. The Board is responsible to make certain that the certified tax rate is within the lawful limits and that the budget is sufficient to provide for itseducational programs. (53G-7-303)
- The fiscal year shall begin the first day of July annually and close the last day of June following. (51-7-3.5)
- The District shall participate in the Uniform School Fund that the State Board of Education apportions annually among school districts and charter schools according to the provisions of the Minimum School Program Act.
No increase shall be made in any appropriation except upon the written request of the Superintendent setting forth the emergency necessitating such request.
Budget Deadline and Schedule
The Superintendent of the District shall be and act as budget officer, and shall on or before June 1 of each year prepare and file a budget with the Board of Education. This tentative budget shall be made available, and be placed on file with the District’s Business Administrator for public inspection, and be on file for a period of at least fifteen days prior to the adoption of a budget as hereinafter provided.
The Business Administrator of the District shall be responsible to notify the County Auditor of the tax levy set by the Board during the budget hearing.
The School District shall, before June 30 of each year, adopt a proposed or, a final tax rate for the School District. The county legislative body shall report the rate and levy as required under Section (53G-7-303(2)
1. Procedure for Adoption
On or before June 30 of each year, the Board of Education shall adopt a budget for the next fiscal year, and shall make appropriations to govern expenditures for each year. (53G-7-303)
2. Approval at Local Level
The Board of Education approves the budget at the local level. The budget, when approved, becomes an official part of the minutes of the budget-adoption meeting.
3. Approval at State Level
A copy of the budget, as adopted, shall be filed with the State Auditor and with the State Board of Education. (53G-7-303(5)
4. Limit on Appropriations
It shall be unlawful for any Board of Education to make any appropriation in excess of the estimated expendable revenue including undistributed reserves, for the ensuing fiscal year. The District shall be
authorized to adopt a budget containing an amount known as the undistributed reserve. The undistributed reserve may not exceed five percent of the maintenance and operation budget adopted by the Board
of Education and may not be used in negotiation or settlement of contract salaries for School District employees. Utah Code (53G-7-304)
Adoption of a Budget
Prior to adoption of a budget, the Board shall hold an open, public hearing on the proposed Budget, at which time public comment is received. In preparation for the hearing, the Board shall:
- Comply with the Open Meeting notice requirements set forth in Policy BD, publish notice that the Board will consider and adopt a budget at the designated Board Meeting in a newspaper of general circulation within the District at least ten days before the day on which the meeting is held;
- File a copy of the proposed budget with the Business Administrator for public inspection at least ten days prior to the hearing; and
- Post the proposed budget on the District's website.
Utah Code (53G-7-303)
Reduction of Budget Appropriations
The Board may reduce any budget appropriation at its regular meetings if notice of the proposed action is given to all Board members and the Superintendent at least one week prior to the meeting. Utah Code (53G-7-305(3)
Increase in Budget Appropriations
The Board may increase any budget appropriation only if:
- The Superintendent, in writing, requests the Board to increase a specified budget appropriation and states the reasons for the proposed increase;
- Notice that the request will be considered by the Board is published in a newspaper of general circulation and provided as required by Utah Code 45-1-101 at least one week prior to the Board meeting at which the request will be considered; and
- The Board holds a public hearing on the request prior to acting on the request and approves the increase by a majority vote of Board members.
Utah Code (53G-7-305(7)
Prohibition of Inter-fund Transfers
District revenues shall only be spent within the fund for which those revenues were originally authorized, levied, collected, or appropriated, and inter-fund transfers of residual equity may not be made unless expressly authorized by the State Board of Education. Utah Code (53G-7-306)
Once the budget is adopted, the Board of Education places the responsibility for administering the operating budget with the Superintendent. In order to allow the Superintendent to administer, control, and budget in an effective and efficient manner, the following principles shall be followed:
- All actions of the Superintendent, or delegated employees of the District, are subject to continuous review by the Board and further limited to the following express provisions:
- All expenditure of funds for the employment and assignment of personnel meet the requirements of the Utah State Board of Education certification regulations and are fully funded within the line item of the operating unit.
- Appropriate financial reports are given to the Board periodically for their inspection and approval.
2. The Board is informed at the next regular or special meeting of any departure from the intended budget implementation that is made in an emergency situation.
The Board recognizes that prompt payment of bills improves efficiency and lowers cost of operation and authorizes the Superintendent, or his representative, to make such payments in accordance with principles set forth above.
It is the intent of the Board and the District to participate in Federal programs and include them in the budgeting process. Monies obtained from federal sources, will be spent in accordance with Federal guidelines.
The Board may borrow money in anticipation of the collection of taxes or other revenue of the School District so long as it complies with the Utah Local Government Bonding Act. Utah Code (53G-4-602(1) and Utah Code 11-14
Indebtedness Purposes and Limitations
The Board may incur indebtedness for any purpose in the interest of education but shall not incur any indebtedness in excess of the estimated District revenues for the current school year. Utah Code (53G-4-602(2)
Voting to Incur Bonded Indebtedness
The Board may in conformance with the Utah Local Government Bonding Act require, by a majority vote of the Board members, that the qualified voters of the District vote on a proposition as to whether to incur indebtedness by bonding.
If the Board determines that it desires to refund bonds, it shall do so after determining the validity of the bond or bonds in accordance with Utah law.
(Utah Code (53G-4-605)
Use of Surplus Funds
The Board authorizes the Business Administrator, as directed by the Superintendent, to take any temporary balance in a School District fund that will remain unexpended for an extended period of time and invest appropriately.
All funds will be held by the Utah State Treasurer and/or any other qualifying financial institution approved under Utah Money Management Act.
Depository of Funds
All public treasurers, including school financial secretaries, shall deposit receipts daily, whenever practicable, but not later than seven days. All deposits shall be made in accordance with the provisions of the Utah Money Management Act.
Nothing in this act shall limit the right of public treasurers to invest surplus funds in such manner as may now or hereafter be provided by law.
When public funds are deposited by a public treasurer in a regular depository, such public treasurer and his bondsmen shall be relieved of liability for any loss of any such funds which results from the failure or insolvency of such depository.
The Board of Education recommends conducting business with local banking institutions. Banks will be chosen by the services offered and its willingness and ability to work with the school or District, based upon the standards of the Utah Money Management Council.