Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 164 Second Substitute (2016GS)

Sponsor

Sen. Henderson, D.

Final action

Governor Signed 3/28/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• removes the requirement for the Office of the State Auditor to provide certain budget forms;
• requires a town, city, county, interlocal entity, or local district to appropriate a percentage of fund revenue toward deficit fund balances;
• requires a town to prepare certain financial reports;
• clarifies the due date for budget adoption for a city undergoing truth in taxation;
• removes obsolete language related to city auditor bookkeeping duties;
• repeals the requirement for an independent audit of a county's transient room tax and tourism, recreation, cultural, convention, and airport facilities tax;
• modifies the contents of a property tax notice;
• provides that a taxpayer who pays less than the full amount of the items listed on the taxpayer's property tax notice may direct how the county treasurer allocates the partial payment between the amounts due; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

LOCAL GOVERNMENT MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Deidre M. Henderson
House Sponsor: 
R. Curt Webb
LONG TITLE
General Description:
This bill modifies provisions relating to local governments.
Highlighted Provisions:
This bill:
▸ removes the requirement for the Office of the State Auditor to provide certain
budget forms; 
▸ requires a town, city, county, interlocal entity, or local district to appropriate a
percentage of fund revenue toward deficit fund balances;
▸ requires a town to prepare certain financial reports;
▸ clarifies the due date for budget adoption for a city undergoing truth in taxation;
▸ removes obsolete language related to city auditor bookkeeping duties;
▸ repeals the requirement for an independent audit of a county's transient room tax
and tourism, recreation, cultural, convention, and airport facilities tax;
▸ modifies the contents of a property tax notice; 
▸ provides that a taxpayer who pays less than the full amount of the items listed on the
taxpayer's property tax notice may direct how the county treasurer allocates the
partial payment between the amounts due; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
10-5-107
, as last amended by Laws of Utah 2014, Chapter 377
10-5-114
, as last amended by Laws of Utah 2010, Chapter 378
10-5-129
, as last amended by Laws of Utah 2009, Chapter 323
10-6-111
, as last amended by Laws of Utah 2015, Chapter 352
10-6-117
, as last amended by Laws of Utah 2014, Chapter 176
10-6-135
, as last amended by Laws of Utah 2014, Chapter 377
10-6-139
, as last amended by Laws of Utah 2003, Chapter 292
11-13-513
, as enacted by Laws of Utah 2015, Chapter 265
11-42-401
, as last amended by Laws of Utah 2015, Chapters 349 and 396
17-31-5.5
, as last amended by Laws of Utah 2008, Chapter 286
17B-1-613
, as renumbered and amended by Laws of Utah 2007, Chapter 329
17B-1-902
, as last amended by Laws of Utah 2015, Chapter 349
59-2-1317
, as last amended by Laws of Utah 2015, Chapter 349
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-5-107
 is amended to read:
10-5-107.
Tentative budgets required for public inspection -- Contents --
Adoption of tentative budget.
(1) (a) On or before the first regularly scheduled town council meeting of May, the
mayor shall:
(i) 
in accordance with Subsection (1)(b),
 prepare for the ensuing year[
, on forms
provided by the state auditor,
] a tentative budget for each fund for which a budget is required;
(ii) make the tentative budget available for public inspection; and
(iii) submit the tentative budget to the town council.
(b) The tentative budget [
of
] 
for
 each fund shall set forth in tabular form:
(i) actual revenues and expenditures in the last completed fiscal year;
(ii) estimated total revenues and expenditures for the current fiscal year; and
(iii) the mayor's estimates of revenues and expenditures for the budget year.
(2) (a) The mayor shall:
(i) estimate the amount of revenue available to serve the needs of each fund;
(ii) estimate the portion to be derived from all sources other than general property
taxes; and
(iii) estimate the portion that shall be derived from general property taxes.
(b) From the estimates required by Subsection (2)(a), the mayor shall compute and
disclose in the budget the lowest rate of property tax levy that will raise the required amount of
revenue, calculating the levy on the latest taxable value.
(3) A governing body may spend or transfer money deposited in an enterprise fund for
a good, service, project, venture, or other purpose that is not directly related to the goods or
services provided by the enterprise for which the enterprise fund was created, if the governing
body:
(a) transfers the money from the enterprise fund to another fund; and
(b) complies with the hearing and notice requirements of Subsections (5)(a), (b), and
(c).
(4) (a) Before the public hearing required under Section 
10-5-108
, the town council:
(i) shall review, consider, and tentatively adopt the tentative budget in any regular
meeting or special meeting called for that purpose; and
(ii) may amend or revise the tentative budget.
(b) At the meeting at which the town council adopts the tentative budget, the council
shall establish the time and place of the public hearing required under Section 
10-5-108
.
(5) (a) Except as provided in Subsection (5)(d), if a town council includes in a tentative
budget, or an amendment to a budget, allocations or transfers from an enterprise fund to
another fund for a good, service, project, venture, or purpose other than reasonable allocations
of costs between the enterprise fund and the other fund, the governing body shall:
(i) hold a public hearing;
(ii) prepare a written notice of the date, time, place, and purpose of the hearing as
described in Subsection (5)(b); and
(iii) subject to Subsection (5)(c), mail the notice to each enterprise fund customer at
least seven days before the day of the hearing.
(b) The purpose portion of the written notice shall identify:
(i) the enterprise fund from which money is being allocated or transferred;
(ii) the amount being allocated or transferred; and
(iii) the fund to which the money is being allocated or transferred.
(c) The town council:
(i) may print the written notice required under Subsection (5)(a)(ii) on the enterprise
fund customer's bill; and
(ii) shall include the written notice required under Subsection (5)(a)(ii) as separate
notification mailed or transmitted with the enterprise fund customer's bill.
(d) A governing body is not required to repeat the notice and hearing requirements in
this Subsection (5) if the funds to be allocated or transferred for the current year were
previously approved by the governing body during the current year and at a public hearing that
complies with the notice and hearing requirements of this Subsection (5).
Section 2. Section 
10-5-114
 is amended to read:
10-5-114.
Appropriations limited to estimated revenue.
(1)
 The council may not make any appropriation in the final budget of any fund in
excess of the estimated expendable revenue for the budget year of such fund.
(2) If there is a deficit fund balance in a fund at the close of the last completed fiscal
year, the council shall include an item of appropriation for the deficit in the current budget of
the fund equal to:
(a) at least 5% of the total revenue of the fund in the last completed fiscal year; or
(b) 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.
Section 3. Section 
10-5-129
 is amended to read:
10-5-129.
Annual financial report.
(1) [
Within
] 
The town clerk or other designated person shall prepare and present to the
council:
(a) (i) a quarterly financial report; or
(ii) upon request by the council, a financial report more frequently than each quarter;
and
(b) an annual financial report within
days after the close of each fiscal year [
the
town clerk or other delegated person shall present to the council an annual financial report
].
(2) The requirement [
under
] 
described in
 Subsection (1)
(b)
 [
to present an annual
financial report
] may be satisfied by an audit report or annual financial report of an independent
auditor.
Section 4. Section 
10-6-111
 is amended to read:
10-6-111.
Tentative budget to be prepared -- Contents -- Estimate of expenditures
-- Budget message -- Review by governing body.
(1) (a) On or before the first regularly scheduled meeting of the governing body in the
last May of the current period, the budget officer shall 
, in accordance with Subsection (1)(b),
prepare for the ensuing fiscal period, [
on forms provided by the state auditor,
] and file with the
governing body, a tentative budget for each fund for which a budget is required.
(b) The tentative budget of each fund shall set forth in tabular form:
(i) the actual revenues and expenditures in the last completed fiscal period;
[
(ii) the budget estimates for the current fiscal period;
]
[
(iii) the actual revenues and expenditures for a period of 6 to 21 months, as
appropriate, of the current fiscal period;
]
[
(iv)
] 
(ii)
 the estimated total revenues and expenditures for the current fiscal period;
[
(v)
] 
(iii)
 the budget officer's estimates of revenues and expenditures for the budget
period, computed as provided in Subsection (1)(c); and
[
(vi)
] 
(iv)
 if the governing body elects, the actual performance experience to the extent
established by Section 
10-6-154
 and available in work units, unit costs, man hours, or man
years for each budgeted fund on an actual basis for the last completed fiscal period, and
estimated for the current fiscal period and for the ensuing budget period.
(c) (i) In making estimates of revenues and expenditures under Subsection
(1)(b)[
(v)
]
(iii)
, the budget officer shall estimate:
(A) on the basis of demonstrated need, the expenditures for the budget period, after:
(I) hearing each department head; and
(II) reviewing the budget requests and estimates of the department heads; and
(B) (I) the amount of revenue available to serve the needs of each fund;
(II) the portion of revenue to be derived from all sources other than general property
taxes; and
(III) the portion of revenue that shall be derived from general property taxes.
(ii) The budget officer may revise any department's estimate under Subsection
(1)(c)(i)(A)(II) that the officer considers advisable for the purpose of presenting the budget to
the governing body.
(iii) From the estimate made under Subsection (1)(c)(i)(B)(III), the budget officer shall
compute and disclose in the budget the lowest rate of property tax levy that will raise the
required amount of revenue, calculating the levy upon the latest taxable value.
(2) (a) 
(i)
 Each tentative budget, when filed by the budget officer with the governing
body, shall contain the estimates of expenditures submitted by department heads, together with
specific work programs and such other supporting data as this chapter requires or the governing
body may request.
(ii)
 Each city of the first or second class shall, and a city of the third, fourth, or fifth
class may, submit a supplementary estimate of all capital projects which each department head
believes should be undertaken within the next three succeeding years.
(b) Each tentative budget submitted by the budget officer to the governing body shall
be accompanied by a budget message[
, which shall explain
] 
that:
(i) explains
 the budget[
, contain
]
;
(ii) contains
 an outline of the proposed financial policies of the city for the budget
period[
, and shall describe
]
;
(iii) describes
 the important features of the budgetary plan[
. It shall set forth
]
;
(iv) provides
 the reasons for salient changes from the previous fiscal period in
appropriation and revenue items [
and shall explain
]
; and
(v) explains
 any major changes in financial policy.
[
(3) Each tentative budget shall be reviewed, considered, and tentatively adopted by the
governing body in any regular meeting or special meeting called for the purpose and may be
amended or revised in such manner as is considered advisable prior to public hearings, except
that no
]
(3) (a) Subject to Subsection (3)(b), a governing body in any regular public hearing or
special public hearing:
(i) shall review, consider, and tentatively adopt each tentative budget; and
(ii) may, before the public hearing described in Section 
10-6-114
, amend or revise each
tentative budget.
(b) A governing body may not reduce an
 appropriation required for debt retirement and
interest or reduction of any existing deficits [
pursuant to
] 
in accordance with
 Section 
10-6-117
,
or otherwise required by law or ordinance, [
may be reduced
] below the 
required
 minimums [
so
required
].
(4) (a) If the municipality is acting [
pursuant to
] 
in accordance with
 Section 
10-2a-218
,
the tentative budget shall:
(i) be submitted to the governing body-elect as soon as practicable; and
(ii) cover each fund for which a budget is required from the date of incorporation to the
end of the fiscal year.
(b) The governing body shall substantially comply with all other provisions of this
chapter, and the budget shall be passed upon incorporation.
Section 5. Section 
10-6-117
 is amended to read:
10-6-117.
Appropriations not to exceed estimated expendable revenue --
Appropriations for existing deficits.
(1) The governing body of any city may not make any appropriation in the final budget
of any fund in excess of the estimated expendable revenue for the budget period of the fund.
[
(2) In determining the estimated expendable revenue of the city general fund for the
budget period, there shall be included therein as an appropriation from the fund balance that
portion of the fund balance at the close of the last completed fiscal period, not previously
included in the budget of the current period, that exceeds the amount permitted in Section
10-6-116
.
]
[
(3) (a) There shall be included as an item of appropriation in each fund for any budget
period any existing deficit as of the close of the last completed fiscal period, not previously
included in the budget of the current period, to the extent of at least 5% of the total revenue of
the fund in its last completed fiscal period.
]
[
(b) If the total amount of the deficit is less than 5% of the total revenue in the last
completed fiscal period, the entire amount of the deficit shall be included.
]
(2) If there is a deficit fund balance in a fund at the close of the last completed fiscal
year, the governing body of a city shall include an item of appropriation for the deficit in the
current budget of the fund equal to:
(a) at least 5% of the total revenue of the fund in the last completed fiscal year; or
(b) 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.
Section 6. Section 
10-6-135
 is amended to read:
10-6-135.
Operating and capital budgets.
(1) (a) As used in this section, "operating and capital budget" means a plan of financial
operation for an enterprise fund or other required special fund that includes estimates of
operating resources, expenses, and other outlays for a fiscal period.
(b) Except as otherwise expressly provided, any reference to "budget" or "budgets" and
the procedures and controls relating to [
them
] 
a budget or budgets
 in other sections of this
chapter do not apply or refer to the operating and capital budgets described in this section.
(2) At or before the time the governing body adopts budgets for the funds described in
Section 
10-6-109
, the governing body shall adopt:
(a) an operating and capital budget for each enterprise fund for the ensuing fiscal
period; and
(b) the type of budget for other special funds as required by the Uniform Accounting
Manual for Utah Cities.
(3) (a) The governing body shall adopt and administer an operating and capital budget
in accordance with this Subsection (3).
(b) A governing body may spend or transfer money deposited in an enterprise fund for
a good, service, project, venture, or other purpose that is not directly related to the goods or
services provided by the enterprise for which the enterprise fund was created, if the governing
body:
(i) transfers the money from the enterprise fund to another fund; and
(ii) complies with the hearing and notice requirements of Subsections (3)(f)(i), (ii), and
(iii).
(c) At or before the first regularly scheduled meeting of the governing body in the last
May of the current fiscal period, the budget officer shall:
(i) prepare for the ensuing fiscal period and file with the governing body a tentative
operating and capital budget for:
(A) each enterprise fund; and
(B) other required special funds;
(ii) include with the tentative operating and capital budget described in Subsection
(3)(d)(i) specific work programs as submitted by each department head; and
(iii) include any other supporting data required by the governing body.
(d) Each city of the first or second class shall, and each city of the third, fourth, or fifth
class may, submit a supplementary estimate of all capital projects which a department head
believes should be undertaken within the three next succeeding fiscal periods.
(e) (i) Subject to Subsection (3)(e)(ii), the budget officer shall prepare all estimates
after review and consultation with each department head described in Subsection (3)(d).
(ii) After complying with Subsection (3)(e)(i), the budget officer may revise any
departmental estimate before it is filed with the governing body.
(f) (i) Except as provided in Subsection (3)(f)(iv), if the governing body includes in a
tentative budget or an amendment to a budget allocations or transfers from an enterprise fund
to another fund or a good, service, project, venture, or purpose other than reasonable
allocations of costs between the enterprise fund and the other fund, the governing body shall:
(A) hold a public hearing;
(B) prepare a written notice of the date, time, place, and purpose of the hearing, as
described in Subsection (3)(f)(ii); and
(C) subject to Subsection (3)(f)(iii), mail the written notice to each enterprise fund
customer at least seven days before the day of the hearing.
(ii) The purpose portion of the written notice required under Subsection (3)(f)(i)(B)
shall identify:
(A) the enterprise fund from which money is being transferred;
(B) the amount being transferred; and
(C) the fund to which the money is being transferred.
(iii) The governing body:
(A) may print the written notice required under Subsection (3)(f)(i) on the enterprise
fund customer's bill; and
(B) shall include the written notice required under Subsection (3)(f)(i) as a separate
notification mailed or transmitted with the enterprise fund customer's bill.
(iv) A governing body is not required to repeat the notice and hearing requirements in
this Subsection (3)(f) if the funds to be allocated or transferred for the current year were
previously approved by the governing body during the current year and at a public hearing that
complies with the notice and hearing requirements of this Subsection (3)(f).
(4) (a) Each tentative budget, amendment to a budget, or budget shall be reviewed and
considered by the governing body at any regular meeting or special meeting called for that
purpose.
(b) The governing body may make changes in the tentative budgets.
(5) Budgets for enterprise or other required special funds shall comply with the public
hearing requirements established in Sections 
10-6-113
 and 
10-6-114
.
(6) (a) Before the last June 30 of each fiscal period, or, in the case of a property tax
increase under Sections 
59-2-919
 through 
59-2-923
, before August [
] 
 of the year for
which a property tax increase is proposed, the governing body shall adopt an operating and
capital budget for each applicable fund for the ensuing fiscal period.
(b) A copy of the budget as finally adopted for each fund shall be:
(i) certified by the budget officer;
(ii) filed by the budget officer in the office of the city auditor or city recorder;
(iii) available to the public during regular business hours; and
(iv) filed with the state auditor within 30 days after the day on which the budget is
adopted.
(7) (a) Upon final adoption, the operating and capital budget is in effect for the budget
period, subject to later amendment.
(b) During the budget period the governing body may, in any regular meeting or special
meeting called for that purpose, review any one or more of the operating and capital budgets
for the purpose of determining if the total of any of them should be increased.
(c) If the governing body decides that the budget total of one or more of the funds
should be increased under Subsection (7)(b), the governing body shall follow the procedures
set forth in Section 
10-6-136
.
(8) Expenditures from operating and capital budgets shall conform to the requirements
relating to budgets specified in Sections 
10-6-121
 through 
10-6-126
.
Section 7. Section 
10-6-139
 is amended to read:
10-6-139.
City auditor or recorder -- Bookkeeping duties -- Duties with respect to
payment of claims.
(1) The city auditor in each city of the first and second class, and the city recorder in
each city of the third, fourth, or fifth class shall maintain the general books for each fund of the
city and all subsidiary records relating thereto, including a list of the outstanding bonds, their
purpose, amount, terms, date, and place payable.
(2) (a) The city auditor or city recorder[
, as appropriate,
] shall
:
(i)
 keep accounts with all receiving and disbursing officers of the city[
, shall
]
;
(ii)
 preaudit all claims and demands against the city before [
they
] 
the claims or
demands
 are allowed[
, and shall
]
; and
(iii)
 prepare the necessary checks in payment.
[
(b) Those checks shall include an appropriate certification pursuant to Section 
11-1-1
,
examples of which shall be presented in the Uniform Accounting Manual for Utah Cities.
]
[
(c)
] 
(b)
 The city auditor or city recorder shall [
also certify on the voucher or check
copy, as appropriate,
] 
verify
 that:
(i) [
the
] 
a
 claim has been preaudited and documented;
(ii) [
the
] 
a
 claim has been approved in one of the following ways:
(A) purchase order directly approved by the mayor in the council-mayor optional form
of government, or the governing body or [
its
] 
the governing body's
 delegate in other cities;
(B) claim directly approved by the governing body; or
(C) claim approved by the financial officer;
(iii) [
the
] 
a
 claim is within the lawful debt limit of the city; and
(iv) [
the
] 
a
 claim does not overexpend the appropriate departmental budget established
by the governing body.
Section 8. Section 
11-13-513
 is amended to read:
11-13-513.
Appropriations not to exceed estimated expendable revenue --
Appropriations for existing deficits.
(1) The governing board of an interlocal entity may not make an appropriation in the
final budget of a fund in excess of the estimated expendable revenue for the budget year of the
fund.
[
(2) An interlocal entity determining the estimated expendable revenue of the interlocal
entity general fund for the budget year shall include as an appropriation from the fund balance
that portion of the fund balance at the close of the last completed fiscal year, not previously
included in the budget of the current year, that exceeds the amount permitted in Section
11-13-512
.
]
[
(3) (a) An interlocal entity shall include in a fund budget an appropriation for an
existing deficit created in accordance with Section 
11-13-521
 as of the close of the current year
and not previously included in the current year budget, to the extent of at least 5% of the total
revenue in the current year.
]
[
(b) If the total amount of the deficit created in accordance with Section 
11-13-521
 is
less than 5% of the total revenue in the current year, the interlocal entity shall include in the
fund budget an appropriation for the entire amount of the deficit.
]
[
(c) An interlocal entity shall include in a fund budget appropriation for the entire
amount of a deficit in the current year resulting from expenditures other than the expenditures
allowed in Section 
11-13-521
 to the extent that the deficit had not been included in the current
year budget.
]
(2) If there is a deficit fund balance in a fund at the close of the last completed fiscal
year, the governing body of an interlocal entity shall include an item of appropriation for the
deficit in the current budget of the fund equal to:
(a) at least 5% of the total revenue of the fund in the last completed fiscal year; or
(b) 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.
Section 9. Section 
11-42-401
 is amended to read:
11-42-401.
Levying an assessment -- Prerequisites -- Assessment list -- Partial
payment allocation.
(1) (a) If a local entity has designated an assessment area in accordance with Part 2,
Designating an Assessment Area, the local entity may levy an assessment against property
within that assessment area as provided in this part.
(b) If a local entity that is a municipality or county designates an assessment area in
accordance with this chapter, the municipality or county may levy an assessment and collect
the assessment in accordance with Subsection 
11-42-202
(1)(h)(i) or (ii).
(c) An assessment billed by a municipality or county in the same manner as a property
tax and included on a property tax notice in accordance with Subsection 
11-42-202
(1)(h)(ii) is
enforced in accordance with, constitutes a lien in accordance with, and is subject to other
penalty provisions in accordance with this chapter.
(d) If a local entity includes an assessment on a property tax notice, the county
treasurer shall on the property tax notice:
(i) clearly state that the assessment is for the improvement, operation and maintenance,
or economic promotion activities provided by the local entity; 
and
(ii) itemize the assessment separate from any other tax, fee, charge, interest, or penalty
that is included on the property tax notice in accordance with Section 
59-2-1317
[
; and
]
.
[
(iii) state that if less than the full amount of the property tax and assessments included
on the property tax notice are paid, the payment will be applied proportionately to the balances
due for property taxes and assessments and other permitted charges described in this section
unless otherwise specified by the taxpayer and the taxpayer demonstrates that the unpaid fees
are being challenged by the taxpayer.
]
(2) Before a governing body may adopt a resolution or ordinance levying an
assessment against property within an assessment area:
(a) the governing body shall:
(i) subject to Subsection (3), prepare an assessment list designating:
(A) each parcel of property proposed to be assessed; and
(B) the amount of the assessment to be levied against the property;
(ii) appoint a board of equalization as provided in Section 
11-42-403
; and
(iii) give notice as provided in Section 
11-42-402
; and
(b) the board of equalization, appointed under Section 
11-42-403
, shall:
(i) hold hearings;
(ii) determine if the assessment for each benefitted property meets the requirements of
Section 
11-42-409
;
(iii) make necessary corrections so that assessed properties are not assessed for benefits
conferred exclusively outside of the assessment area;
(iv) make necessary corrections so that the benefitted properties are not charged for an
increase in size or capacity of an improvement where the increased size or capacity is to serve
property outside of the assessment area;
(v) make any corrections it considers appropriate to an assessment; and
(vi) report its findings to the governing body as provided in Section 
11-42-403
.
(3) (a) The governing body of a local entity shall prepare the assessment list described
in Subsection (2)(a)(i) at any time after:
(i) the governing body has determined the estimated or actual operation and
maintenance costs, if the assessment is to pay operation and maintenance costs;
(ii) the governing body has determined the estimated or actual economic promotion
costs described in Section 
11-42-206
, if the assessment is to pay for economic promotion
activities; or
(iii) for any other assessment, the governing body has determined:
(A) the estimated or actual acquisition and construction costs of all proposed
improvements within the assessment area, including overhead costs actually incurred and
authorized reasonable contingencies;
(B) the estimated or actual property price for all property to be acquired to provide the
proposed improvements; and
(C) the estimated reasonable cost of any work to be performed by the local entity.
(b) In addition to the requirements of Subsection (3)(a), the governing body of a local
entity shall prepare the assessment list described in Subsection (2)(a)(i) before:
(i) the light service has commenced, if the assessment is to pay for light service; or
(ii) the park maintenance has commenced, if the assessment is to pay for park
maintenance.
(4) A local entity may levy an assessment for some or all of the cost of improvements
within an assessment area, including payment of:
(a) operation and maintenance costs of improvements constructed within the
assessment area only to the extent the improvements provide benefits to the properties within
the assessment area and in accordance with Section 
11-42-409
;
(b) (i) if an outside entity furnishes utility services or maintains utility improvements,
the actual cost that the local entity pays for utility services or for maintenance of
improvements; or
(ii) if the local entity itself furnishes utility service or maintains improvements, for the
actual costs that are reasonable, including reasonable administrative costs or reasonable costs
for reimbursement of actual costs incurred by the local entity, for supplying the utility service
or maintenance;
(c) the actual costs that are reasonable to supply labor, materials, or equipment in
connection with improvements; and
(d) (i) the actual costs that are reasonable for valid connection fees; or
(ii) the reasonable and generally applicable costs of locally provided utilities.
(5) A local entity may not levy an assessment for an amount donated or contributed for
an improvement or part of an improvement or for anything other than the costs actually and
reasonably incurred by the local entity in order to provide an improvement or conduct
operation and maintenance or economic promotion activities.
(6) The validity of an otherwise valid assessment is not affected because the actual and
reasonable cost of improvements exceeds the estimated cost.
(7) (a) Subject to Subsection (7)(b), an assessment levied to pay for operation and
maintenance costs may not be levied over a period of time exceeding five years beginning on
the day on which the local entity adopts the assessment ordinance or assessment resolution for
the operation and maintenance costs assessment.
(b) A local entity may levy an additional assessment described in Subsection (7)(a) in
the assessment area designated for the assessment described in Subsection (7)(a) if, after the
five-year period expires, the local entity:
(i) gives notice in accordance with Section 
11-42-402
 of the new five-year term of the
assessment; and
(ii) complies with the applicable levy provisions of this part.
Section 10. Section 
17-31-5.5
 is amended to read:
17-31-5.5.
Report to county legislative body -- Content.
(1) The legislative body of each county [
imposing the
] 
that imposes a
 transient room
tax [
provided for in
] 
under
 Section 
59-12-301
 [
shall annually engage an independent auditor to
perform an audit to verify that transient room tax funds are used only as authorized by this
chapter and to report the findings of the audit to the county legislative body
] 
or a tourism,
recreation, cultural, convention, and airport facilities tax under Section 
59-12-603
 shall
annually prepare a report in accordance with Subsection (2)
.
[
(2) Subsection (1) applies to the tourism, recreation, cultural, convention, and airport
facilities tax provided for in Section 
59-12-603
, except that the audit verification required
under this Subsection (2) shall be for the uses authorized under Section 
59-12-603
.
]
[
(3)
] 
(2)
 The report [
required under
] 
described in
 Subsection (1) shall include a
breakdown of expenditures into the following categories:
(a) for the transient room tax, identification of expenditures for:
(i) establishing and promoting:
(A) recreation;
(B) tourism;
(C) film production; and
(D) conventions;
(ii) acquiring, leasing, constructing, furnishing, or operating:
(A) convention meeting rooms;
(B) exhibit halls;
(C) visitor information centers;
(D) museums; and
(E) related facilities;
(iii) acquiring or leasing land required for or related to the purposes listed in
Subsection [
(3)
] 
(2)
(a)(ii);
(iv) mitigation costs as identified in Subsection 
17-31-2
(1)(d); and
(v) making the annual payment of principal, interest, premiums, and necessary reserves
for any or the aggregate of bonds issued to pay for costs referred to in Subsections
17-31-2
(2)(c) and (3)(a); and
(b) for the tourism, recreation, cultural, convention, and airport facilities tax,
identification of expenditures for:
(i) financing tourism promotion, which means an activity to develop, encourage,
solicit, or market tourism that attracts transient guests to the county, including planning,
product development, and advertising;
(ii) the development, operation, and maintenance of the following facilities as defined
in Section 
59-12-602
:
(A) an airport facility;
(B) a convention facility;
(C) a cultural facility;
(D) a recreation facility; and
(E) a tourist facility; and
(iii) a pledge as security for evidences of indebtedness under Subsection 
59-12-603
(3).
[
(4)
] 
(3)
 A county legislative body shall provide a copy of [
a
] 
the
 report [
it receives
under this section
] 
described in Subsection (1)
 to:
(a) the Governor's Office of Economic Development;
(b) its tourism tax advisory board; and
(c) the Office of the Legislative Fiscal Analyst.
Section 11. Section 
17B-1-613
 is amended to read:
17B-1-613.
Appropriations not to exceed estimated expendable revenue --
Appropriations for existing deficits.
(1) The board of trustees of a local district may not make any appropriation in the final
budget of any fund in excess of the estimated expendable revenue for the budget year of the
fund.
[
(2) In determining the estimated expendable revenue of the general fund for the
budget year there is included as an appropriation from the fund balance that portion of the fund
balance at the close of the last completed fiscal year, not previously included in the budget of
the current year, that exceeds the amount permitted in Section 
17B-1-612
.
]
[
(3) (a) There is included as an item of appropriation in each fund for any budget year
any existing deficit created in accordance with Section 
17B-1-623
 as of the close of the last
completed fiscal year, not previously included in the budget of the current year, to the extent of
at least 5% of the total revenue of the fund in its last completed fiscal year.
]
[
(b) If the total amount of the deficit is less than 5% of the total revenue in the last
completed fiscal year, the entire amount of the deficit shall be included.
]
[
(c) The entire amount of any deficit which results from activities other than those
described in Section 
17B-1-623
 shall be included as an item of appropriation in each fund for
any budget year not previously included in the budget of the current year.
]
(2) If there is a deficit fund balance in a fund at the close of the last completed fiscal
year, the board of trustees of a local district shall include an item of appropriation for the
deficit in the current budget of the fund equal to:
(a) at least 5% of the total revenue of the fund in the last completed fiscal year; or
(b) 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.
(3) The provisions of this section do not require a local district to add revenue to a fund
that is used for debt service of a limited obligation, unless the revenue is pledged toward the
limited obligation.
Section 12. Section 
17B-1-902
 is amended to read:
17B-1-902.
Lien for past due service fees -- Partial payment allocation.
(1) (a) A local district may file a lien on a customer's property for past due fees for
commodities, services, or facilities that the district has provided to the customer's property by
certifying, subject to Subsection (2), to the treasurer of the county in which the customer's
property is located the past due fees, including, subject to Section 
17B-1-902.1
, applicable
interest and administrative costs.
(b) Upon certification under Subsection (1)(a), the past due fees, and if applicable,
interest and administrative costs, become a lien on the customer's property to which the
commodities, services, or facilities were provided.
(c) A lien filed in accordance with this section has the same priority as, but is separate
and distinct from, a property tax lien.
(2) (a) If a local district certifies past due fees under Subsection (1)(a), the county
treasurer shall include on a property tax notice issued in accordance with Section 
59-2-1317
 an
unpaid fee, administrative cost, or interest described in Subsection (1)(a).
(b) If an unpaid fee, administrative cost, or interest is included on a property tax notice
in accordance with Subsection (2)(a), the county treasurer shall on the property tax notice:
(i) clearly state that the unpaid fee, administrative cost, or interest is for a service
provided by the local district; 
and
(ii) itemize the unpaid fee, administrative cost, or interest separate from any other tax,
fee, interest, or penalty that is included on the property tax notice in accordance with Section
59-2-1317
[
; and
]
.
[
(iii) state that if less than the full amount of the property tax and local district fees
included on the property tax notice are paid, the payment will be applied proportionately to the
balances due for property taxes and local district fees, which shall include all fees and other
permitted charges described in this section unless otherwise specified by the taxpayer and the
taxpayer demonstrates that the unpaid fees are being challenged by the taxpayer.
]
(3) A lien under Subsection (1) is not valid if certification under Subsection (1) is
made after the filing for record of a document conveying title of the customer's property to a
new owner.
(4) Nothing in this section may be construed to:
(a) waive or release the customer's obligation to pay fees that the district has imposed;
(b) preclude the certification of a lien under Subsection (1) with respect to past due
fees for commodities, services, or facilities provided after the date that title to the property is
transferred to a new owner; or
(c) nullify or terminate a valid lien.
(5) After all amounts owing under a lien established as provided in this section have
been paid, the local district shall file for record in the county recorder's office a release of the
lien.
Section 13. Section 
59-2-1317
 is amended to read:
59-2-1317.
Tax notice -- Contents of notice -- Procedures and requirements for
providing notice.
(1) Subject to the other provisions of this section, the county treasurer shall:
(a) collect the taxes; and
(b) provide a notice to each taxpayer that contains the following:
(i) the kind and value of property assessed to the taxpayer;
(ii) the street address of the property, if available to the county;
(iii) that the property may be subject to a detailed review in the next year under Section
59-2-303.1
;
(iv) the amount of taxes levied;
(v) a separate statement of the taxes levied only on a certain kind or class of property
for a special purpose;
(vi) property tax information pertaining to taxpayer relief, options for payment of
taxes, and collection procedures;
(vii) if applicable, the amount of an assessment assessed in accordance with Section
11-42-401
;
(viii) if applicable, an unpaid fee, administrative cost, or interest for a local district in
accordance with Section 
17B-1-902
;
(ix) the date the taxes are due;
(x) the street address at which the taxes may be paid;
(xi) the date on which the taxes are delinquent;
(xii) the penalty imposed on delinquent taxes;
(xiii) a statement that explains the taxpayer's right to direct allocation of a partial
payment in accordance with Subsection (7);
[
(xiii)
] 
(xiv)
 other information specifically authorized to be included on the notice
under this chapter; and
[
(xiv)
] 
(xv)
 other property tax information approved by the commission.
(2) For any property for which property taxes are delinquent, the notice described in
Subsection (1) shall state, "Prior taxes are delinquent on this parcel."
(3) Except as provided in Subsection (4), the county treasurer shall:
(a) mail the notice required by this section, postage prepaid; or
(b) leave the notice required by this section at the taxpayer's residence or usual place of
business, if known.
(4) (a) Subject to the other provisions of this Subsection (4), a county treasurer may, at
the county treasurer's discretion, provide the notice required by this section by electronic mail if
a taxpayer makes an election, according to procedures determined by the county treasurer, to
receive the notice by electronic mail.
(b) A taxpayer may revoke an election to receive the notice required by this section by
electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
(c) A revocation of an election under this section does not relieve a taxpayer of the
duty to pay a tax due under this chapter on or before the due date for paying the tax.
(d) A county treasurer shall provide the notice required by this section using a method
described in Subsection (3), until a taxpayer makes a new election in accordance with this
Subsection (4), if:
(i) the taxpayer revokes an election in accordance with Subsection (4)(b) to receive the
notice required by this section by electronic mail; or
(ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
(e) A person is considered to be a taxpayer for purposes of this Subsection (4)
regardless of whether the property that is the subject of the notice required by this section is
exempt from taxation.
(5) (a) The county treasurer shall provide the notice required by this section to a
taxpayer on or before November 1.
(b) The county treasurer shall keep on file in the county treasurer's office the
information set forth in the notice.
(c) The county treasurer is not required to mail a tax receipt acknowledging payment.
(6) This section does not apply to property taxed under Section 
59-2-1302
 or
59-2-1307
.
(7) (a) A taxpayer who pays less than the full amount due on the taxpayer's property tax
notice may, on a form provided by the county treasurer, direct how the county treasurer
allocates the partial payment between:
(i) the total amount due for property tax;
(ii) the amount due for assessments;
(iii) the amount due for past due local district fees; and
(iv) any other amounts due on the property tax notice.
(b) The county treasurer shall comply with a direction submitted to the county treasurer
in accordance with Subsection (7)(a).
(c) The provisions of this Subsection (7) do not:
(i) affect the right or ability of a local entity to pursue any available remedy for
non-payment of any item listed on a taxpayer's property tax notice; or
(ii) toll or otherwise change any time period related to a remedy described in
Subsection (7)(c)(i).
Section 14. 
Retrospective operation.
The amendments to Sections 
11-42-401
, 
17B-1-902
, and 
59-2-1317
 in this bill have
retrospective operation to January 1, 2016.