Text: HSB00666 Text: HSB00668 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 331.437A GENERAL FUND
1 2 EXPENDITURE LIMITATION.
1 3 1. There is created a county general fund expenditure
1 4 limitation for each fiscal year beginning on or after July 1,
1 5 1997, calculated as provided in this section. The county
1 6 shall adopt a budget which does not exceed the county general
1 7 fund expenditure limitation.
1 8 2. Except as otherwise provided in this section, the
1 9 county general fund expenditure limitation for a fiscal year
1 10 shall be ninety-nine percent of the revenue estimate.
1 11 3. The county general fund expenditure limitation amount
1 12 provided for in this section shall be used by the board of
1 13 supervisors in the preparation of the budget under section
1 14 331.434.
1 15 4. The scope of the expenditure limitation under
1 16 subsection 3 shall not encompass federal funds, donations, or
1 17 constitutionally dedicated moneys, moneys from trust funds,
1 18 fees, and property tax replacement moneys received from the
1 19 state, and moneys appropriated by the state to the county
1 20 secondary road fund.
1 21 5. The board shall not submit a budget which, in order to
1 22 balance, assumes reversion of a specific amount of the total
1 23 of the appropriations included in the budget.
1 24 Sec. 2. NEW SECTION. 331.437B COUNTY CASH RESERVE FUND.
1 25 1. A county cash reserve fund is created. The cash re-
1 26 serve fund shall be separate from the general fund of the
1 27 county and shall not be considered part of the general fund of
1 28 the county except in determining the cash position of the
1 29 county as provided in subsection 3. The moneys in the cash
1 30 reserve fund shall not be transferred, used, obligated,
1 31 appropriated, or otherwise encumbered except as provided in
1 32 this section. Notwithstanding section 12C.7, subsection 2,
1 33 interest or earnings on moneys deposited in the cash reserve
1 34 fund shall be credited to the capital improvements fund
1 35 created in section 331.437D. Moneys in the cash reserve fund
2 1 may be used for cash flow purposes provided that any moneys so
2 2 allocated are returned to the cash reserve fund by the end of
2 3 each fiscal year.
2 4 2. The maximum balance of the cash reserve fund is the
2 5 amount equal to the cash reserve goal percentage, as defined
2 6 in section 331.437C, multiplied by the revenue estimate for
2 7 the general fund of the county for the fiscal year.
2 8 3. The moneys in the cash reserve fund may be appropriated
2 9 by the board of supervisors in accordance with subsection 4
2 10 only in the fiscal year for which the appropriation is made.
2 11 The moneys shall only be appropriated by the board of super-
2 12 visors for nonrecurring emergency expenditures and shall not
2 13 be appropriated for payment of any collective bargaining
2 14 agreement or arbitrator's decision negotiated or awarded under
2 15 chapter 20. The balance in the cash reserve fund may be used
2 16 in determining the cash position of the general fund of the
2 17 county for payment of county obligations, but shall not be
2 18 considered by an arbitrator or in negotiations under chapter
2 19 20 and shall not be used in determining the amount of the
2 20 state appropriation under section 331.429.
2 21 4. a. Except as provided in subsection 1, an
2 22 appropriation shall not be made from the cash reserve fund
2 23 unless the appropriation is in accordance with all of the
2 24 following:
2 25 (1) The appropriation is contained in a resolution in
2 26 which the appropriation is the only subject matter of the
2 27 resolution.
2 28 (2) The resolution states the reasons the appropriation is
2 29 necessary.
2 30 b. In addition to the requirements of paragraph "a", an
2 31 appropriation shall not be made from the cash reserve fund
2 32 which would cause the fund's balance to be less than three
2 33 percent of the revenue estimate for the fiscal year for which
2 34 the appropriation is made.
2 35 Sec. 3. NEW SECTION. 331.437C ANNUAL APPROPRIATIONS.
3 1 1. a. The "cash reserve goal percentage" for fiscal years
3 2 beginning on or after July 1, 1997, is five percent of the
3 3 revenue estimate. For each fiscal year beginning on or after
3 4 July 1, 1997, in which the appropriation of the surplus
3 5 existing in the general fund of the county at the conclusion
3 6 of the prior fiscal year pursuant to paragraph "b" was not
3 7 sufficient for the cash reserve fund to reach the cash reserve
3 8 goal percentage for the current fiscal year, there is
3 9 appropriated from the general fund of the county an amount to
3 10 be determined as follows:
3 11 (1) If the balance of the cash reserve fund in the current
3 12 fiscal year is not more than four percent of the adjusted
3 13 revenue estimate for the current fiscal year, the amount of
3 14 the appropriation under this lettered paragraph is one percent
3 15 of the revenue estimate for the current fiscal year.
3 16 (2) If the balance of the cash reserve fund in the current
3 17 fiscal year is more than four percent but less than five
3 18 percent of the adjusted revenue estimate for that fiscal year,
3 19 the amount of the appropriation under this lettered paragraph
3 20 is the amount necessary for the cash reserve fund to reach
3 21 five percent of the revenue estimate for the current fiscal
3 22 year.
3 23 The moneys appropriated under this lettered paragraph shall
3 24 be credited in equal installments on the last day of September
3 25 and on the last day of March of the fiscal year.
3 26 b. The surplus existing in the general fund of the county
3 27 at the conclusion of the fiscal year is appropriated for
3 28 distribution in the succeeding fiscal year as provided in
3 29 subsection 2. Moneys credited to the cash reserve fund from
3 30 the appropriation made in this paragraph shall not exceed the
3 31 amount necessary for the cash reserve fund to reach the cash
3 32 reserve goal percentage for the succeeding fiscal year. As
3 33 used in this paragraph, "surplus" means the excess of revenues
3 34 and other financing sources over expenditures and other
3 35 financing uses for the general fund of the county in a fiscal
4 1 year and "revenue estimate" means the actual revenues in the
4 2 fiscal year immediately preceding the current fiscal year,
4 3 less federal funds, donations, constitutionally dedicated
4 4 moneys, moneys from trust funds, fees, and property tax
4 5 replacement moneys received from the state, and moneys
4 6 appropriated by the state to the county secondary road fund.
4 7 2. Moneys appropriated under subsection 1 shall be first
4 8 credited to the cash reserve fund. To the extent that moneys
4 9 appropriated under subsection 1 would make the moneys in the
4 10 cash reserve fund exceed the cash reserve goal percentage of
4 11 the revenue estimate for the succeeding fiscal year, the
4 12 moneys are appropriated to the capital improvements fund.
4 13 Sec. 4. NEW SECTION. 331.437D CAPITAL IMPROVEMENTS FUND.
4 14 1. A capital improvements fund is created. The fund shall
4 15 consist of appropriations made to the fund and transfers of
4 16 interest, earnings, and moneys from other funds as provided by
4 17 law. The fund shall be separate from the general fund of the
4 18 county and the balance in the fund shall not be considered
4 19 part of the balance of the general fund of the county.
4 20 2. Notwithstanding section 12C.7, subsection 2, interest
4 21 or earnings on moneys in the capital improvements fund shall
4 22 be credited to the capital improvements fund.
4 23 3. Moneys in the fund in a fiscal year shall be used as
4 24 directed by the board of supervisors for the financing of
4 25 special capital improvements, or carrying out a specific
4 26 capital improvement plan.
4 27 EXPLANATION
4 28 This bill requires counties to establish a cash reserve
4 29 fund similar to that maintained by the state. The maximum
4 30 allowable balance in the fund is equal to 5 percent of the
4 31 actual revenues received by a county in the immediately
4 32 preceding fiscal year. The bill also sets an expenditure
4 33 limitation for a county equal to 99 percent of the actual
4 34 revenues received by a county in the immediately preceding
4 35 fiscal year. The bill also establishes a county capital
5 1 improvements fund for public infrastructure-related
5 2 expenditures.
5 3 LSB 4268HC 76
5 4 sc/jw/5
Text: HSB00666 Text: HSB00668 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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