RIVERTON CITY, UTAH
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 Financial Section – Notes to the Financial Statements (continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS AND NET POSITION (continued) ESTIMATES The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain financial statement balances. Actual results could vary from those estimates.
2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY BUDGETARY INFORMATION In accordance with State law, annual budgets are prepared and adopted by the City Council on or before June 22, for the ensuing fiscal year when no property tax increases are being imposed. In the event of a property tax increase, annual budgets are prepared and adopted on or before August 17. Estimated revenues and appropriations may be increased or decreased by resolution of the City Council at any time during the year. A public hearing must be held prior to any proposed increase in a fund's appropriations. Annual budgets are established for all funds of the City. The level of the City's budgetary control (that is, the level at which the City's expenditures cannot legally exceed the appropriated
Utah State law prohibits the appropriation of Fund Balance until the sum of unassigned, assigned, and committed General Fund balance exceeds 5% of the actual General Fund revenues. Until the sum of the stated fund balance categories is greater than 5%, fund balance cannot be budgeted, but is used to provide working capital to meet emergency expenditures and to cover unanticipated deficits until tax revenue is received. Utah State law also prohibits the accumulation of the stated General Fund balance categories in any amount greater than 35% of the current year’s actual General Fund revenues. Once adopted, the budget can be amended by subsequent City Council action. The City Council can amend the budget to any extent, provided the budgeted expenditures do not exceed budgeted revenues and appropriated fund balance, in which case a public hearing must be held. The Mayor may reallocate unexpended appropriated balances from one expenditure account to another within that department during the budget year. Annual budgets for the General Fund, special revenue funds, and capital projects funds were legally adopted by the City Council and are prepared on the modified–accrual method of accounting. Encumbrance accounting is not used by the City. Although Utah State law requires the initial preparation of budgets for all City funds (both governmental and proprietary), it only requires the reporting of budget versus actual for governmental funds. Expenditures in the capital projects funds are also budgeted annually.
TAX REVENUES On or before June 22 of each year, the City sets the property tax rate. If the City intends to increase property tax revenues above that of the previous year, State law requires the City to provide public notice to property owners and to hold public hearings. When these special public hearings are necessary, the adoption of the final budget must be done before August 17. All property taxes levied by the City are assessed and collected by Salt Lake County. Taxes are levied as of January 1 and are due November 30; any delinquent taxes are subject to penalties. Unless the delinquent taxes and penalties are paid before January 15, a lien is attached to the property, and the amount of taxes and penalties bears interest from January 1 until paid; once paid, the lien is removed.
amounts) is established at the department level (i.e. development services, parks and public services, and public works). Department heads are responsible to the City Manager and governing body for operating within their approved appropriations. All annual budgets lapse at fiscal year–end.
If after five years, delinquent taxes have not been paid, the County sells the property at a tax sale. Tax collections are remitted to the City from the County on a monthly basis. Sales and use and telecom taxes are collected by the Utah State Tax Commission and remitted to the City monthly. An accrual has been made for all taxes received by the State for
