Specified Services, Special Funds, Interfund Loans

Utah Code tit. 17, ch. 17-63, pt. 17-63-P8

in effect

Utah Code § 17-63-801 Property taxes levied for specified services -- Special revenue fund -- Limitations on use -- Collection, accounting, and expenditures.

17-63-801. Property taxes levied for specified services -- Special revenue fund -- Limitations on use -- Collection, accounting, and expenditures. (1) A county may account separately for the revenues derived from a property tax, that is lawfully levied for a specific purpose, in accordance with this section. (2) To levy a property tax under this section, the legislative body of the county that levies the property tax shall indicate through ordinance: (a) that the county levies the tax under this section; and (b) the specific service for which the county levies the tax. (3) A property tax levied under this section is subject to the maximum rate a county may levy for property taxes under Section 59-2-908. (4) (a) A county that collects a property tax under this section shall: (i) create a special revenue fund to hold the revenues collected under this section; and (ii) deposit revenues collected from that tax into the special revenue fund described in Subsection (4)(a)(i). (b) A county may only expend revenues from a special revenue fund described in Subsection (4)(a) for a purpose that is solely related to the provision of the service described in Subsection (2)(b) for which the county created the special revenue fund. (5) Except as provided in Subsections (2) and (4), a county that levies a property tax under this section shall: (a) levy and collect the tax in accordance with Title 59, Chapter 2, Property Tax Act; (b) account for revenues derived from the tax in accordance with this chapter; and (c) levy and collect and account for revenues derived from the tax in the same general manner as for the county's other property taxes. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-802 Operating and capital budget -- Expenditures.

17-63-802. Operating and capital budget -- Expenditures. (1) (a) As used in this section, "operating and capital budget" means a plan of financial operation for an enterprise or other special fund embodying estimates of operating and nonoperating resources and expenses and other outlays for a fiscal period. (b) Except as otherwise expressly provided, "budget" or "budgets" and the procedures and controls relating to budgets in other sections of this chapter are not applicable to the operating and capital budgets provided in this section. (2) At or before the time that the governing body adopts budgets for the budgetary funds specified in Section 17-63-301, the governing body shall adopt an operating and capital budget for the next fiscal period for: (a) each enterprise fund; and (b) any other special nonbudgetary fund for which operating and capital budgets are prescribed by the uniform system of budgeting, accounting, and reporting. (3) (a) The governing body shall adopt and administer the operating and capital budget in accordance with this Subsection (3). (b) At or before the first day of the next to last month of each fiscal period, the finance officer shall prepare for the next fiscal period on forms provided in accordance with Section 17E-2-401, and file with the governing body a tentative operating and capital budget for: (i) each enterprise fund; and (ii) any other special fund that requires an operating and capital budget. (c) The tentative operating and capital budget shall be accompanied by a supplementary estimate of all capital projects or planned capital projects: (i) within the next fiscal period; and (ii) within the fiscal period immediately following the fiscal period described in Subsection (3)(c)(i). (d) (i) Subject to Subsection (3)(d)(ii), the finance officer shall prepare all estimates after review and consultation, if requested, with a department proposing a capital project. (ii) After complying with Subsection (3)(d)(i), the finance officer may revise any departmental estimate before it is filed with the governing body. (e) (i) Except as provided in Subsection (3)(e)(iv), if a governing body includes in a tentative budget, or an amendment to a budget, allocations or transfers between a utility enterprise fund and another fund that are not reasonable allocations of costs between the utility 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, in accordance with Subsection (3)(e)(ii); and (C) subject to Subsection (3)(e)(iii), mail the notice to each utility enterprise fund customer at least seven days before the day of the hearing. (ii) The purpose portion of the written notice described in Subsection (3)(e)(i)(B) shall identify: (A) the utility 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)(e)(i) on the utility enterprise fund customer's bill; and (B) shall include the written notice required under Subsection (3)(e)(i) as a separate notification mailed or transmitted with the utility enterprise fund customer's bill. (iv) The notice and hearing requirements in this Subsection (3)(e) are not required for an allocation or a transfer included in an original budget or in a subsequent budget amendment previously approved by the governing body for the current fiscal year. (f) (i) The governing body shall review the tentative operating and capital budget at any regular or special meeting called for that purpose. (ii) In accordance with Subsection (3)(f)(i), the governing body may make any changes to the tentative operating and capital budget that the governing body considers advisable. (iii) Before the close of the fiscal period, the governing body shall adopt an operating and capital budget for the next fiscal period. (g) (i) Upon final adoption by the governing body, the operating and capital budget shall be in effect for the budget period subject to amendment. (ii) The governing body shall: (A) certify a copy of the operating and capital budget for each fund with the county finance officer; and (B) make a copy available to the public during business hours in the office of the county finance officer, if the county finance officer has an office at the county seat, or the office of the county auditor. (iii) The governing body shall file a copy of the operating and capital budget with the state auditor within 30 days after the day on which the operating and capital budget is adopted. (iv) The governing body may during the budget period amend the operating and capital budget of an enterprise or other special fund by resolution. (v) A copy of the operating and capital budget as amended shall be filed with the state auditor. (4) Any expenditure from an operating and capital budget shall conform to the requirements for budgets specified by Sections 17-63-401, 17-63-403, and 17-63-501. Amended by Chapter 105, 2026 General Session

Utah Code § 17-63-803 Reserve fund for capital improvements -- Creation -- Purpose -- Limitation.

17-63-803. Reserve fund for capital improvements -- Creation -- Purpose -- Limitation. (1) The legislative body of any county may establish and maintain, by ordinance, a cumulative reserve fund to be accumulated by levy for the purpose of financing the purchase of real property and the cost of planning, constructing or rehabilitating public buildings or other public works and capital improvements. (2) (a) Before a reserve fund under Subsection (1) may be established, the county legislative body shall designate by ordinance the specific purpose for which the fund is established. (b) Except as provided in Section 17-63-805, all funds in a reserve fund under Subsection (1) shall be expended for the designated purposes. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-804 Reserve fund for capital improvements -- Estimate of amount required -- Tax levy -- Accumulation from year to year -- Restriction on use.

17-63-804. Reserve fund for capital improvements -- Estimate of amount required -- Tax levy -- Accumulation from year to year -- Restriction on use. (1) Subject to Subsection (4) the legislative body of a county that has established a reserve fund under Section 17-63-803 may: (a) include in the annual budget or estimate of amounts required to meet the public expenses of the county for the ensuing year such sum as it considers necessary for the uses and purposes of the fund; and (b) include those amounts in the annual tax levy of the county. (2) Subject to Subsection (4), the money in the fund shall be allowed to accumulate from year to year until the county legislative body determines to spend any money in the fund for the purpose specified. (3) Subject to Subsection (4), money in the fund at the end of a fiscal year shall remain in the fund as surplus available for future use, and may not be transferred to any other fund or used for any other purpose. (4) The amount of money in a reserve fund established under Section 17-63-803 may not exceed .6% of the taxable value of the county. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-805 Reserve fund for capital improvements -- Transfer to fund of unencumbered surplus -- Investment -- Interest and income -- Modification of use -- Special election.

17-63-805. Reserve fund for capital improvements -- Transfer to fund of unencumbered surplus -- Investment -- Interest and income -- Modification of use -- Special election. (1) At any time after the creation of a reserve fund under Section 17-63-803, the county legislative body may transfer to the fund any unencumbered surplus county funds remaining at the end of a fiscal year. (2) All money belonging to a reserve fund created under Section 17-63-803 shall be invested in such securities as are legal for other funds of the county. (3) The interest and income from the investments shall be a part of the fund. (4) The legislative body of any county may submit the proposition of using funds in a reserve fund established under Section 17-63-803 for projects other than originally specified to the electors of the county at a special election if the projects are for the purposes set forth in Section 17-63-803. (5) If a proposition under Subsection (4) is proposed, the county legislative body shall fix a time and place for a special election on the proposition, to be held as provided by law. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-806 Establishment of tax stability and trust fund -- Increase in tax levy -- Deposit or investment of funds -- Use of interest or other income.

17-63-806. Establishment of tax stability and trust fund -- Increase in tax levy -- Deposit or investment of funds -- Use of interest or other income. (1) (a) Notwithstanding anything to the contrary contained in statute, the legislative body of any county may by ordinance establish and maintain a tax stability and trust fund, for the purpose of preserving funds during years with favorable tax revenues for use during years with less favorable tax revenues. (b) Each fund under Subsection (1)(a) shall be subject to all of the limitations and restrictions imposed by this section and Section 17-63-807. (c) The principal of the fund shall consist of all sums transferred to it in accordance with Subsection (2) and interest or other income retained in the fund under Subsection (4)(a). (2) (a) After establishing a tax stability and trust fund as provided in Subsection (1), the legislative body, in establishing the levy for the property tax levied by the county under Section 59-2-908, may establish the levy at a level not to exceed .0001 per dollar of taxable value of taxable property increase per year that will permit the county to receive during that fiscal year sums in excess of what may be required to provide for the purposes of the county. (b) Any excess sums so received are to be transferred from the county general fund into the tax stability and trust fund. (3) (a) All amounts in the tax stability and trust fund established by a county under this section may be deposited or invested as provided in Section 51-7-11. (b) The amounts described in Subsection (3)(a) may also be transferred by the county treasurer to the Public Treasurers' Investment Fund, as defined in Section 51-7-3, for the treasurer's management and control under Title 51, Chapter 7, State Money Management Act. (4) (a) The interest or other income realized from amounts in the tax stability and trust fund shall be returned to the county general fund during the fiscal year in which the income or interest is paid to the extent the interest or income is required by the county to provide for county purposes during that fiscal year. (b) An amount returned in accordance with Subsection (4)(a) may be used for all purposes as other amounts in the county general fund. (c) Any interest or income that is not returned to the county general fund in accordance with Subsection (4)(a) shall be added to the principal of that county's tax stability and trust fund. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-807 Amount in tax stability and trust fund limited -- Disposition of excess -- Use of principal -- Determination of necessity -- Election -- Exception.

17-63-807. Amount in tax stability and trust fund limited -- Disposition of excess -- Use of principal -- Determination of necessity -- Election -- Exception. (1) The total amount in a county's tax stability and trust fund established under Section 17-63-806 shall be limited to the percentage of the total taxable value of property in that county not to exceed the limits provided in the following schedule:Total Taxable ValueFund LimitsPercentage ofTaxable Valuebut not toexceed:Less than $500,000,0001.6%$5,000,000From 500,000,000 to 1,500,000,0001.0%7,500,000Over 1,500,000,000.5%15,000,000 (2) If any excess occurs in the tax stability and trust fund over the percentage or maximum dollar amounts specified in Subsection (1), this excess shall be transferred to the county general fund and may be used for all purposes as other amounts in the county general fund are used. (3) (a) Subject to Subsection (3)(b), if any excess in the fund exists because of a decrease in total taxable value, that excess may remain in the fund. (b) If the excess amount in the fund is decreased below the limitations of the fund for any reason, the fund limitations established under Subsection (1) apply. (4) (a) Except as provided in Subsection (5), if the legislative body of a county that has established a tax stability and trust fund under Section 17-63-806 determines that it is necessary for purposes of that county to use any portion of the principal of the fund, the county legislative body shall submit this proposition to the electorate of that county in a special election called and held in the manner provided for in Title 11, Chapter 14, Local Government Bonding Act, for the holding of bond elections. (b) If the proposition is approved at the special election by a majority of the qualified electors of the county voting at the election, then that portion of the principal of the fund covered by the proposition may be transferred to the county general fund for use for purposes of that county. (5) (a) The requirements of Subsection (4) do not apply to the use of any portion of the principal of a tax stability and trust fund established under Section 17-63-806 for payment of any refund of property taxes owed by the county as a result of an objection to the assessment of property assessed by the State Tax Commission under Section 59-2-1007. (b) The legislative body of a county may, by ordinance or resolution, authorize the use of any portion of the tax stability and trust fund for the purpose described in Subsection (5)(a). Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-808 Special funds -- Ceases -- Transfer.

17-63-808. Special funds -- Ceases -- Transfer. (1) A county legislative body may: (a) establish a salary fund or any other special fund as the legislative body considers necessary for the proper transaction of the business of the county; and (b) transfer money from one fund to another as the public interest requires, except as otherwise specifically provided in statute. (2) (a) Except as provided in Subsection (2)(b), if a county legislative body determines that the purpose no longer exists for which the legislative body created a special fund or any portion of the special fund, the legislative body may authorize the transfer of the remaining balance or a portion of the remaining balance to the fund balance account in the county general fund. (b) The legislative body may redistribute the remaining balance or a portion of the remaining balance described in Subsection (2)(a) in accordance with Subsection (2)(c) if: (i) the county levied the fund primarily on property in the unincorporated areas of the county; (ii) the county established a municipal services fund to provide municipal services under Chapter 78, Part 5, Provision of Municipal-Type Services to Unincorporated Areas; and (iii) the area from which the county levied the fund has since incorporated as a city or town. (c) The legislative body of a county described in Subsection (2)(b) may set aside the remaining balance or a portion of the remaining balance described in Subsection (2)(a) in a fund from which the county may make disbursements to support and benefit the area and the residents in the area from which the county originally derived the special fund. (3) Any balance which remains in a special assessment fund and any unrequired balance in a special improvement guaranty fund shall be treated as provided in Subsection 11-42-701(5). (4) Any balance which remains in a capital projects fund shall be transferred to the appropriate debt service fund or such other fund as the bond ordinance requires or to the county general fund balance account. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Utah Code § 17-63-809 Interfund loans -- Acquisition of issued unmatured bonds.

17-63-809. Interfund loans -- Acquisition of issued unmatured bonds. (1) Subject to this section, restrictions imposed by bond covenants, or other controlling regulations, the governing body may: (a) subject to the restrictions in Section 53-2a-605, authorize an interfund loan from one fund to another; and (b) with available cash in any fund, purchase or otherwise acquire for investment an unmatured bond of the county or of any county fund. (2) An interfund loan under Subsection (1)(a) shall be in writing and specify the terms and conditions of the loan, including the: (a) effective date of the loan; (b) name of the fund loaning the money; (c) name of the fund receiving the money; (d) amount of the loan; (e) subject to Subsection (3), term of and repayment schedule for the loan; (f) subject to Subsection (4), interest rate of the loan; (g) method of calculating interest applicable to the loan; (h) procedures for: (i) applying interest to the loan; and (ii) paying interest on the loan; and (i) other terms and conditions the governing body determines applicable. (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed 10 years. (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the governing body shall apply an interest rate that reflects the rate of potential gain had the funds been deposited or invested in a comparable investment. (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under Subsection (2)(f): (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less than the rate offered by the Public Treasurers' Investment Fund as defined in Section 51-7-3; or (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be less than the greater of the rate offered by: (A) the Public Treasurers' Investment Fund as defined in Section 51-7-3; or (B) a United States Treasury note of a comparable term. (5) (a) For an interfund loan under Subsection (1)(a), the governing body shall: (i) hold a public hearing; (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the proposed terms and conditions of the interfund loan under Subsection (2); (iii) provide notice of the public hearing in the same manner as required under Section 17-63-304 as if the hearing were a budget hearing; and (iv) authorize the interfund loan by ordinance or resolution in a public meeting. (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the interfund loan is included in an original budget or in a subsequent budget amendment previously approved by the governing body for the current fiscal year. (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan is: (a) a loan from the county general fund to any other fund of the county; or (b) a short-term advance from the county's cash and investment pool to individual funds that are repaid by the end of the fiscal year. Renumbered and Amended by Chapter 13, 2025 Special Session 1

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title17/Chapter63/17-63-P8.html?v=C17-63-P8_2025110620251206Fetched: 10/26/2026