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Download Budget Instructions in PDF Version
Print "Where To Begin" in PDF Version Start with the Entry Form (green tab at the bottom of the page). Use this form to enter the other information required for Forms 674 and 678. Use the TAB key to manuever through this form. Don't forget to return to this form and enter the “Date Budget Adopted” after the Council has adopted the budget. Once this form has been completed, go to FORM 678 . Put your cursor in cell A-1 then tab. The TAB key will move you through all the spaces where you can or should be putting a number or other information. Read pages 3 and 4 of these instructions for details about Form 678. The actual calculations are done automatically.
NOTE: The TAB key will move you through all the spaces where you can or should be putting a number or other information. Always start by putting your cursor in cell A-1 then tab. Use it to check if you have entered all the information and to check to see if you have the right numbers entered. This works for all sheets in this Excel package. GO TO FORM CB-1. Caution - Do Not "Cut and Paste" or "Copy and Paste" in this worksheet. Read "Definitions for County Budget Worksheet (CB-1)" as you have questions on what should be put on a line. Some of the numbers are summaries of data you have kept separately. The TAB key doesn't work as well here since you will probably want to go down the columns instead of across like the TAB key wants to do. Use the TAB key to check your work later.
NOTE: The difference between the ADOPTED and ESTIMATED columns is that the ESTIMATED column uses the ACTUAL year end balance number for BEG BALANCE. The ADOPTED column is mainly for your reference as you set next year's budget.
NOTE: Don't forget that you can change numbers in the worksheet to do your "What if---" evaluations AND since it is so easy to change numbers, don't forget to double check your numbers in the final set of forms. UTILITY TAX REPLACEMENT EXCISE TAXES Senate File 2416 (Iowa Code Chapter 437A), adopted during the 1998 legislative session, changed the way gas and electric utility companies are locally taxed. In short, the bill removes local property taxation on gas and electric utility valuation. The property taxes will be replaced with excise taxes based upon energy delivered. Since property taxation is replaced by excise taxes, it holds true that statutory maximum taxation levels will be funded in part by Utility Tax Replacement Excise Taxes. The legislation requires tax levy rates, and maximum taxation levels, to be calculated by dividing the sum of both anticipated replacement excise taxes and property taxes ‘Gross Tax Askings' into the valuation with gas and electric utility valuation. (These ‘Gross Tax Askings' cannot exceed the statutory maximum taxation amounts.) The computed rates are then applied to the valuation without gas and electric utility valuation to arrive at the net property taxation amount. The difference between ‘Gross Tax Askings' and the net property taxation amount is the estimated Utility Tax Replacement Excise Tax. It is quite possible that you will not receive the full amount of excise tax calculated; it is also possible that you may receive more excise tax than is calculated. If there is a significant loss, you may want to show the loss as a negative revenue. (See Tax Levy Loss ) Again, the sum of property taxation and calculated utility tax replacement excise taxes, which we are calling ‘Gross Tax Askings', cannot exceed statutory taxation maximums. TAX REPLACEMENTS, CREDITS AGAINST LEVIED TAXES, AND TAX LEVIES Tax replacements that are not against levied taxes and are not shown as a reduction in property taxes on a taxpayer's property tax bill should be included in the ‘Other Tax & Replacements Receipts' section of the Supplemental Detail. These include the following:
Credits against levied taxes are included in the amount of property taxes levied on line 31 of the Extension Education Fund and on line 13 of the other funds. Theses credits are shown on a taxpayer's property tax statement as a deduction from the amount of total property tax due. These include:
The State pays this portion of the property tax, (See Tax Levy Loss ) which is shown as a credit on the taxpayer's property tax statement. These are recorded as part of Property Tax . Do not budget the credits against levied taxes under ‘Other Tax & Replacement Receipts'. If you have any questions please contact the Department of Management. You should put your budget together using the Excel spreadsheets available for downloading from http://www.extension.iastate.edu/finance/forms.html. The Excel spreadsheet will automate the dividing of your ‘Gross Tax Askings' between net property taxes and utility tax replacement excise taxes. The following summarizes the workings of the Extension's CB-1 and CB-2 sheets, and the Department of Management's five-sheet set of Excel budget forms: For the most part data is entered on CB-1. The data entered there is automatically totaled and brought forward to the supplemental details sheet. Then data on the supplemental detail sheets is automatically brought forward to the proposed and adopted budget summaries. Ending fund balances are produced by subtracting all expenditures from beginning balances and receipts. Ending fund balances are forced to be the following year's beginning fund balances. The “other information” is entered on the Entry Form. The information entered on this form is automatically brought forward to all other sheets. Your ‘Gross Tax Askings' are automatically divided between net property taxes and replacement excise taxes using the ‘Property Tax/Utility Tax Replacement Excise Tax Computation' area on Form 678. Property Taxes and Replacement Excise Taxes and are then automatically fed into the proper budget-year cells on CB-1 and then to the Supplemental Detail. In addition, after completion of the ‘Property Tax/Utility Tax Replacement Excise Tax Computation' area your Tax Rate is properly computed and fed to the published form 674. PROPERTY TAX/UTILITY TAX REPLACEMENT EXCISE TAX COMPUTATION This area on Form 678 has to be completed in order to divide your ‘Gross Tax Askings' between property taxes and utility tax replacement excise taxes. If you use the Excel spreadsheet provided, all calculations are done automatically. The illustration below is a sample of how your county auditor should report your January 1, 2005 taxable values payable in FY06/07. This report should be provided to you by your County Auditor in early January.
Next enter your ‘Gross Tax Askings' (Property Tax and Utility Tax Replacement Excise Taxes) in Column AW. Note: Simply view ‘Gross Tax Askings' as the amount of taxation that you would ask for if the utility tax replacement program did not exist. The Tax Rate (Column CW) is determined by dividing amounts entered in Column AW (Gross Tax Askings) into the valuation amounts with gas & electric utilities in Column BW. (The spreadsheet will automatically do this and calculate the rate.) Next multiply the Tax Rate (CW) times the valuation without gas & electric utilities in Column DW to produce the Property Taxes Levied in Column EW . (The spreadsheet will automatically perform these calculations.) Estimated Utility Tax Replacement Excise Taxes (Column FW) are calculated by subtracting the amount in Column AW from the amount in Column EW. (The spreadsheet will automatically do this.) Property Taxes Levied (Column EW) should be placed into the FY 2006 ‘Property Taxes Levied' line on CB-1 and on the supplemental detail sheets. (The spreadsheet will automatically do this.) Estimated Utility Tax Replacement Excise Taxes (Column FW) should be placed into the FY 2007 column on the ‘Utility Tax Replacement Excise Taxes' revenue line which is included under the ‘Other Tax & Replacement Receipt' section on CB-1 and on the Supplemental Detail. (The spreadsheet will automatically do this.) Enter the Total of Estimated Utility Tax Replacement Excise Taxes and Special Utility Property Taxes for FY 2007 on the ‘Utility Tax Replacement Excise Taxes' revenue line (line 5 on CB-1). (The spreadsheet will automatically do this when you fill out Form 678.)
The Supplemental Details are the supporting documents for the budget. Column A on the Supplemental Details contains actual figures for FY05. Column B refers to 6 month's actual figures (July - December 2005) and 6 month's estimated figures (January - June 2006). Column C refers to estimated figures for the FY2007 budget. Resources consist of beginning fund balances and all receipts. Using the Education Operating Fund as an example, line 1 is the beginning fund balance. Lines 2 through 28 itemize Other Receipts ( excluding current property taxes and excluding credits against levied taxes). Line 29 then is the sum of ‘Other Receipts' from lines 2 through 28. Line 30 is the sum of lines 1 and 29. Line 31 is for property taxes levied (which includes credits against levied taxes) needed to balance the total resources (line 32) with total requirements (line 66). The property taxes (combined with the utility tax replacement excise taxes), of course, cannot exceed statutory limits. If they do, the amount must be reduced to the statutory combined limit and either expenditures or ending fund balance must be decreased, or other revenues increased, to balance the budget. Line 32 is the sum of lines 30 and 31. In other words, total resources is the sum of: beginning balances, other receipts (except credits against levied taxes), and property taxes (which includes credits against levied taxes). (You may want to consider making a negative entry in ‘Other Receipts' for any material uncollectible amount of Property Taxes Levied shown on the forms which were not or will not be collected in the applicable levy year.) Requirements consist of expenditures and ending fund balances. All expenditures must be budgeted and published, even though the expenditures may be funded from sources other than taxes. For the Education Operating Fund, expenditures are listed on lines 33 through 60 and summed onto line 61. Total ending fund balance is listed on line 65. Total requirements (line 66) is the sum of lines 61 and 65. Note about the three types of ending fund balances: Line 62 - Fund Balance – Reserved: Include here any part of the fund balance that is donor designated, any endowments, and any amount of grant or contract funds that are restricted to a specific use. These amounts can be excluded from carryover calculations. Line 63 - Fund Balance – Unreserved/Designated: This is an optional designation for any amounts of fund balance that the Extension Council has voted to designate for the future purchase of such items as equipment replacement. However, these amounts are included in carryover calculations. Line 64 - Fund Balance – Unreserved/Undesignated: This is simply the Total Ending Fund Balance (line 65) minus any amounts entered as Reserved (line 62) and minus any amounts entered as Unreserved/Designated (line 63). (This calculation is formula driven in the spreadsheet.) For each year, and for each fund, total requirements must equal total resources. Further, the ending fund balance for a given year must be the same as the beginning fund balance for the subsequent year. (Both of these items are forced to match within the spreadsheet.) The line number assignments are for the Education Operating Fund; however, the above principles are the same for all funds.
The levy limits and taxation limits for this fund depend upon the population of your district and whether or not there has been a successful referendum authorizing regular limits to be exceeded. See Code of Iowa section 176A.10. For FY2006 no limit as shown below can be exceeded. The maximum tax includes both property tax and utility replacement excise tax. Additionally, if the referendum specified a lower limit than shown in the two columns on the right, the lower limit would apply. If an election to exceed regular taxation limits has passed since you last certified a budget, please attach a copy of the abstract of votes which includes the full text of the question.
Section 96.31 of the Code of Iowa provides that political subdivisions may levy a tax to pay for the cost of unemployment benefits. (See Extension Instructions on Unemployment Compensation) Chapter 670 authorizes the purchase of a liability insurance policy. The premium costs of such insurance may be paid from the Education Operating Fund, or a separate tax levy for tort liability may be made, if the Education Operating Fund levy is insufficient. If you have a package insurance policy, only the tort liability premium may be paid from the Tort Liability levy. This levy may also be used for the payment of a judgment or settlement within the scope of chapter 670. (See Extension Instructions on Tort Liability) The Notice of Public Hearing and Proposed Budget Summary on Form 674 must be published. The data on Form 674 is transferred from and corresponds with the Supplemental Detail (Forms 674-A). Notice of a hearing on the budget must be published not less than 10 nor more than 20 days before the hearing. For example, if your hearing is set for February 24, 2006, you notice must be published no sooner that February 4, and no later that February 14. The budget must be published in one newspaper published within the boundaries of the Extension District, or if none there published, a newspaper of general circulation therein. It is our recommendation to publish the proposed budget in early February so as to allow adequate time should a second publication be necessary. Budgets must be certified to the County Auditor by March 15. THE COST OF PUBLISHING THE NOTICE OF PUBLIC HEARING Section 618.11 of the Code of Iowa states that the legal notice advertising rate (for any newspaper) shall be established by the superintendent of printing, pursuant to chapter 17A. The rate is based on a line of eight-point type two inches in length or its equivalent. Typesetting a notice in type smaller than eight-point type and/or on lines longer than two inches would cost more per line but would result in fewer lines. Conversely, typesetting a notice in type larger than eight-point type and/or on lines shorter than two inches would cost less per line but would result in more lines. In other words, the cost for any typeset notice should be the same regardless of the type size selected or the length of the line it is printed on. The newspaper publishing this notice may choose to photograph it rather than typeset it. The Iowa Newspaper Association's position is that publication of matter which may be photographically reproduced for printing instead of typeset shall be compensated at a rate not to exceed the lowest available earned rate for any similar advertising matter. This means newspapers may charge their earned space rate or the public notice rate they would have charged had they typeset the notice -- whichever is less. (See Cost of Publishing ) Form 674 has been set to exactly three industry standard newspaper column widths. Budgeted expenditures and tax levies for each fund may be reduced as a result of the hearing, but neither may be increased without another publication and another hearing according to law. BUDGET ADOPTION File two paper copies of the adopted budget (Form 678), two paper copies of the supplemental detail (Form 674-A), and proof of publication with your county auditor by March 15 . Please email your adopted budget Excel file to Jim Nervig, IDOM, at jim.nervig@iowa.gov. Procedures related to the citizen protest of a budget can be found in Chapter 24, Code of Iowa. If during the year, expenditures are expected to exceed the amounts for any fund in column C of the adopted budget, the budget must be amended, using Form 653A Miscellaneous , in accordance with section 24.9. The amendment must be effective before any of the expenditure amounts are exceeded. Budget amendments require the same notice and hearing procedures as required for the adoption of the original budget. Budget amendments are subject to protest. An amendment of a budget after May 31, which is properly protested but without adequate time for hearing and decision on the protest by June 30, is void. File a copy of the amendment proceedings (Form 653A Miscellaneous) and proof of publication with the County Auditor . Also file a copy of the amendment proceedings (Form 653A Miscellaneous) with the Iowa Department of Management, Local Government Division, State Capitol Building , Des Moines , IA 50319 . (See Extension Instructions for Amendments) Inquiries concerning budgeting procedures may be directed to your county auditor or to Jim Nervig at the Iowa Department of Management (515) 242-5240 or e-mail jim.nervig@iowa.gov . |
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Last Updated: December 19, 2005
Contact: Kaela Black at kblack@iastate.edu
