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PAG LIN 1 1 Section 1. Section 331.433, Code 1995, is amended to read 1 2 as follows: 1 3 331.433 ESTIMATES SUBMITTED BY DEPARTMENTS. 1 4 1. On or before January 15 of each year, each elective or 1 5 appointive officer or board, except tax certifying boards as 1 6 defined in section 24.2, subsection 1, having charge of a 1 7 county office or department, shall prepare and submit to the 1 8 auditor or other official designated by the board an estimate, 1 9 itemized in the detail required by the board and consistent 1 10 with existing county accounts, showing all of the following: 1 11 a. The proposed expenditures of the office or department 1 12 for the next fiscal year. 1 13 b. An estimate of the revenues, except property taxes, to 1 14 be collected for the county by the office during the next 1 15 fiscal year. 1 16 2. The auditor shall prepare the revenue estimate for 1 17 purposes of computing the county expenditure limitation under 1 18 section 331.437B and the cash reserve fund appropriation under 1 19 section 331.437C. 1 202.3. On or before January 20 of each year, the auditor or 1 21 other designated official shall compile the various office and 1 22 department estimates and submit them and the revenue estimate 1 23 to the board. In the preparation of the county budget the 1 24 board may consult with any officer or department concerning 1 25 the estimates and requests and may adjust the requests for any 1 26 county office or department. 1 27 Sec. 2. NEW SECTION. 331.437A TRANSITION TO EXPENDITURE 1 28 LIMITATION AND CASH RESERVE FUND. 1 29 1. Effective with the fiscal year beginning July 1, 1997, 1 30 a county may implement sections 331.437B through 331.437E in 1 31 their entirety. However, effective with the fiscal year 1 32 beginning July 1, 1999, each county shall implement sections 1 33 331.437B through 331.437E, in their entirety. 1 34 2. The director of the department of management may waive 1 35 the application of subsection 1 to a county for a one-year 2 1 period, if evidence is presented that substantial progress is 2 2 being made towards removing the cause for the need of the 2 3 waiver. The director shall not grant a waiver for more than 2 4 three successive years to the same county. 2 5 Sec. 3. NEW SECTION. 331.437B EXPENDITURE LIMITATION. 2 6 1. A county expenditure limitation is created for each 2 7 fiscal year. The county expenditure limitation shall be 2 8 calculated as provided in this section. The county shall 2 9 adopt a budget which does not exceed the county expenditure 2 10 limitation. 2 11 2. For each fiscal year, the county expenditure limitation 2 12 on the rural services levy, the general services levy, and the 2 13 supplemental levy shall be ninety-nine percent of the revenue 2 14 estimate for each of those levies. 2 15 3. The county expenditure limitation amount provided for 2 16 in this section shall be used by the board of supervisors in 2 17 the preparation of the budget under section 331.434. 2 18 4. The scope of the expenditure limitation under 2 19 subsection 3 shall not encompass federal funds, donations, or 2 20 constitutionally dedicated moneys, moneys from trust funds, 2 21 fees, funds from a debt service property tax levy, and 2 22 property tax replacement moneys received from the state, and 2 23 moneys appropriated by the state to the county secondary road 2 24 fund. 2 25 5. The board shall not submit a budget which, in order to 2 26 balance, assumes reversion of a specific amount of the total 2 27 of the appropriations included in the budget. 2 28 Sec. 4. NEW SECTION. 331.437C COUNTY CASH RESERVE FUND. 2 29 1. A county cash reserve fund is created. The cash 2 30 reserve fund shall be separate from the general fund of the 2 31 county and shall not be considered part of the general fund of 2 32 the county except in determining the cash position of the 2 33 county as provided in subsection 3. The moneys in the cash 2 34 reserve fund shall not be transferred, used, obligated, 2 35 appropriated, or otherwise encumbered except as provided in 3 1 this section. Notwithstanding section 12C.7, subsection 2, 3 2 interest or earnings on moneys deposited in the cash reserve 3 3 fund shall be credited to the capital improvements fund 3 4 created in section 331.437E. Moneys in the cash reserve fund 3 5 may be used for cash flow purposes provided that any moneys so 3 6 allocated are returned to the cash reserve fund by the end of 3 7 each fiscal year. 3 8 2. The maximum balance of the cash reserve fund is the 3 9 amount equal to the cash reserve goal percentage, as defined 3 10 in section 331.437D, multiplied by the revenue estimate for 3 11 the fiscal year. 3 12 3. The moneys in the cash reserve fund may be appropriated 3 13 by the board of supervisors in accordance with subsection 4 3 14 only in the fiscal year for which the appropriation is made. 3 15 The moneys shall only be appropriated by the board of 3 16 supervisors for annual operating funds in anticipation of 3 17 revenues and for nonrecurring emergency expenditures and shall 3 18 not be appropriated for payment of any collective bargaining 3 19 agreement or arbitrator's decision negotiated or awarded under 3 20 chapter 20. The balance in the cash reserve fund may be used 3 21 in determining the cash position of the general fund of the 3 22 county for payment of county obligations, but shall not be 3 23 considered by an arbitrator or in negotiations under chapter 3 24 20 and shall not be used in determining the amount of the 3 25 state appropriation to the secondary road fund under section 3 26 331.429. 3 27 4. a. Except as provided in subsection 1, an 3 28 appropriation shall not be made from the cash reserve fund 3 29 unless the appropriation is in accordance with all of the 3 30 following: 3 31 (1) The appropriation is contained in a resolution in 3 32 which the appropriation is the only subject matter of the 3 33 resolution. 3 34 (2) The resolution states the reasons the appropriation is 3 35 necessary. 4 1 b. In addition to the requirements of paragraph "a", an 4 2 appropriation shall not be made from the cash reserve fund 4 3 which would cause the fund's balance to be less than three 4 4 percent of the revenue estimate for the fiscal year for which 4 5 the appropriation is made. 4 6 Sec. 5. NEW SECTION. 331.437D ANNUAL APPROPRIATIONS. 4 7 1. a. The "cash reserve goal percentage" for each fiscal 4 8 year is fifteen percent of the revenue estimate. For each 4 9 fiscal year in which the appropriation of the surplus existing 4 10 in the general fund and the rural services fund of the county 4 11 at the conclusion of the prior fiscal year pursuant to 4 12 paragraph "b" was not sufficient for the cash reserve fund to 4 13 reach the cash reserve goal percentage for the fiscal year, 4 14 there is appropriated from such funds an amount necessary to 4 15 reach the cash reserve goal percentage. The moneys 4 16 appropriated under this lettered paragraph shall be credited 4 17 on the last day of September of the fiscal year. 4 18 b. The surplus existing in the general fund and the rural 4 19 services fund of the county at the conclusion of the fiscal 4 20 year is appropriated for distribution in the succeeding fiscal 4 21 year as provided in subsection 2. Moneys credited to the cash 4 22 reserve fund from the appropriation made in this paragraph 4 23 shall not exceed the amount necessary for the cash reserve 4 24 fund to reach the cash reserve goal percentage for the 4 25 succeeding fiscal year. As used in this paragraph, "surplus" 4 26 means the excess of revenues and other financing sources over 4 27 expenditures and other financing uses for the general fund and 4 28 the rural services fund of the county in a fiscal year and 4 29 "revenue estimate" means the actual revenues in the fiscal 4 30 year immediately preceding the current fiscal year, less 4 31 federal funds, donations, constitutionally dedicated moneys, 4 32 moneys from trust funds, fees, funds from a debt service 4 33 property tax levy, and property tax replacement moneys 4 34 received from the state, and moneys appropriated by the state 4 35 to the county secondary road fund under section 331.429. 5 1 2. Moneys appropriated under subsection 1 shall be first 5 2 credited to the cash reserve fund. To the extent that moneys 5 3 appropriated under subsection 1 would make the moneys in the 5 4 cash reserve fund at the beginning of the fiscal year exceed 5 5 the cash reserve goal percentage of the revenue estimate for 5 6 that fiscal year, the excess moneys are appropriated to the 5 7 capital improvements fund. 5 8 Sec. 6. NEW SECTION. 331.437E CAPITAL IMPROVEMENTS FUND. 5 9 1. A capital improvements fund is created. The fund shall 5 10 consist of appropriations made to the fund and transfers of 5 11 interest, earnings, and moneys from other funds as provided by 5 12 law. The fund shall be separate from the general fund of the 5 13 county and the balance in the fund shall not be considered 5 14 part of the balance of the general fund of the county. 5 15 2. Notwithstanding section 12C.7, subsection 2, interest 5 16 or earnings on moneys in the capital improvements fund shall 5 17 be credited to the capital improvements fund. 5 18 3. Moneys in the fund in a fiscal year shall be used as 5 19 directed by the board of supervisors for the financing of 5 20 special capital improvements, or carrying out a specific 5 21 capital improvement plan. 5 22 Sec. 7. Section 444.27, subsection 2, Code Supplement 5 23 1995, is amended by striking the subsection. 5 24 Sec. 8. Section 444.25B, Code Supplement 1995, is 5 25 repealed. 5 26 Sec. 9. EFFECTIVE DATE. This Act takes effect January 1, 5 27 1997, and applies to the budget for the fiscal year beginning 5 28 July 1, 1997, and all succeeding fiscal years. 5 29 EXPLANATION 5 30 This bill repeals the county property tax limitation for 5 31 fiscal year 1997-1998, and allows counties to establish an 5 32 expenditure limitation, a cash reserve fund, and a capital 5 33 improvements fund, similar to that maintained by the state, 5 34 beginning with fiscal year 1997-1998. Effective for the 5 35 fiscal year beginning July 1, 1999, counties will be required 6 1 to establish the expenditure limit and the cash reserve and 6 2 capital improvements funds. 6 3 The maximum allowable balance in the cash reserve fund is 6 4 equal to 15 percent of the county's revenue estimate. 6 5 Counties are required to appropriate to the cash reserve fund 6 6 the ending year balance amounts in the county general fund and 6 7 the county rural services fund. The bill sets the expenditure 6 8 limitation at 99 percent of the county's revenue estimate. 6 9 "Revenue estimate" is defined as the actual revenues in the 6 10 fiscal year immediately preceding the current fiscal year, 6 11 less federal funds, donations, constitutionally dedicated 6 12 moneys, moneys from trust funds, fees, funds from a debt 6 13 service property tax levy, and property tax replacement moneys 6 14 received from the state, and moneys appropriated by the state 6 15 to the county secondary road fund under section 331.429. 6 16 The bill also establishes a county capital improvements 6 17 fund for public infrastructure-related expenditures. 6 18 LSB 4356HV 76 6 19 sc/jw/5
Text: HF02410 Text: HF02412 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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