Pages 2-8 in 2022-23 Budget
In this section, you'll find a summary of the changes between last year's budget and this year's budget, along with a brief explanation of the change. The first page lists changes to the income and expenditures of the General Fund, which is the operating budget of the City. The following pages look at changes to each of the Enterprise Funds, also known as Special Revenue Funds. Following those, changes are listed for the Debt Service Fund, the Capital Projects Fund, and the Redevelopment Agency Fund.
The General Fund is the operating budget of the City, and typically includes regular expenses that the City incurs each year. The largest expenses in this fund are related to employee salary and benefits.
Each Enterprise Fund represents a self-supporting arm of the City, and each has its own accounting and reporting system. Enterprise Funds are similar to the budgets of private businesses, and may generate profits and loss just like any other business. With the exception of the public library, Enterprise Funds are not funded by property taxes. Brigham City has seven Enterprise Funds: Public Utility, Storm Drain, Golf, Library, Fleet, Facility, and Airport.
The Debt Service Fund records the payment of principal and interest on a fiber optic bond. The Capital Projects Fund houses savings for large projects in the future. Just like a homeowner might save over time with the intention of replacing the roof, the City saves over time for large projects. The Redevelopment Agency Funds are dedicated to economic development in particular areas of town. Each fund is targeted to one area.
Pages 9-20 in 2022-23 Budget
Capital Projects are one-time projects that may be funded in a single year, or large projects that require budgeting over the course of several years. This section begins with a list of the projects included in this budget. The list also includes the amounts received from other funding sources, which are usually grants.
The following pages provide a little more detail by listing each project and where the funding for each project will come from. Capital Projects can be funded from a variety of sources, including the General Fund, the Capital Projects Fund, the Utilities Fund, grants, and more.
Pages 21-136 in 2022-23 Budget
The bulk of the budget document is made up of comparisons of revenue and expenditures over the last five years, including the adopted budget. It also shows the comparison between what the department requested, what the mayor proposed, and what the City Council approved for the newly adopted budget.
These comparisons are organized by fund, and repeat the pattern of revenue sources and then expenditures for each fund.
The process of creating a new budget starts in February of each year. Generally, this is the schedule if the City Council decides to accept the Certified Tax Rate:
When the City Council chooses to raise taxes, the schedule changes to accommodate the Truth in Taxation process. A public hearing will be held in June or July, and the final budget will be passed in August.
Meetings between department heads and the Mayor are private, but the public is invited to attend all work sessions between the Mayor and City Council Members. Notices of these meetings are posted on our website, in the City offices, in the local newspaper, and on the Utah Public Notice website.
The public is welcome to contact City Council Members and the Mayor using the contact forms on the Mayor and City Council page. The public is also invited to share comments during regular City Council meetings and during other public hearings.
Inter-fund transfers occur when the City Council authorizes money to be transferred from one fund to another. Usually, these come from the utility fund to the general fund. This makes the money available for the general operating expenses of the city.
Brigham City uses utility fund transfers to offset the demand for property taxes and to help ensure that all entities within the city contribute to the general operating expenses. Several entities, such as schools, churches, and other non-profits, do not pay property taxes. But they do pay for utilities such as water and power. Inter-fund utility transfers provide a way for non-taxable entities to pay part of the funding for city operations, and therefore decrease the tax burden on those who do pay property taxes.
It is sometimes suggested that Brigham City lower the utility rates and stop the practice of utility fund transfers. If the City Council were to do this, the increase in property taxes on individuals would be greater than the decrease in utility rates. In other words, it would end up costing individuals more than the current system.
The budget that is approved each year is the City Council and Mayor's plan for what will be spent. However, they don't know all of the details, and a variety of issues may impact actual expenditures. For example, a change in the economy can greatly increase or decrease the amount of sales tax revenue the City receives. By law, Brigham City must maintain a balanced budget, which means the amount of income must match the expenditures. When actual income or expenses differs from the approved budget, the City Council considers amendments.
Amendments require a public hearing, where residents of Brigham City can weigh in on the change. Public hearing are generally held during regular City Council meetings.