What Process did Utah County Use to Develop the 2026 Budget?

By Rod Mann, Utah County Auditor

The county has adopted an approach to budgeting called Target-Based Budget which is defined as:

"A financial management approach where the County sets a specific budget limit to fund department’s core services and allows departments to request additional funding for extra needs or to increase level of services."

For the 2026 budget the fixed core services (non-discretionary) are defined as:

• Personnel – salary and benefits (except overtime)
• Internal service fund charges
• Approved capital projects
• Contractual increases

Variable core services, i.e. costs managed by departments (discretionary) include:

• Training and travel
• Materials and supplies
• Overtime, on-call, and part-time
• Other

Below is an overview of the process and timeline that was used in 2025 to develop the 2026 budget.

Phase I – Budget Preparation (May to August)

The Budget Team prepares the baseline budget; budget calendar; budget packets for departments; and enters Internal Service Fund (ISF)* charges based on initial inventory records, wages & benefits projections provided by Human Resources, any existing contracts with annual increases. The Budget Team issues guidelines to set broad limits and direction for the County’s budget cycle and issues budget guidance outlining directions and expectations. The Budget Team will prepare an overview of the baseline budget for the Board of County Commissioners before any new budget requests are considered so they are aware of the starting point.

*Information Systems and the Finance are examples of departments whose costs are borne by the departments they serve via ISF charges.

Phase II – Requested Budget (August to September)

Departments prioritize reductions, reallocations and new budget requests. Departments work closely with their respective Budget Analyst to discuss their budget proposals and receive recommendations for adequate justification and backup documentation for each new budget request. Departments verify accuracy of ISF inventories and staffing plan including position allocations. Departments prioritize, prepare, and submit their budget requests to the Budget Team.

Phase III –Prepare and Adopt Tentative Budget (September to October)

The County Auditor reviews department new budget requests, hosts community budget events as needed, meets with County Elected Officials, department leaders, and the Budget Team to develop the Auditor’s Proposed Tentative budget. The Budget Team will provide the Board of County Commissioners with a list of new budget requests approved by the County Auditor and included in the tentative budget. A balanced tentative budget is then presented for approval and tentative adoption to the Board of County Commissioners by November 1st for the calendar year. The 2026 tentative budget was presented to the commission and approved on October 22, 2025.

Phase IV – Work Sessions for New Budget Requests (October to November)

The Board of County Commissioners will hold work sessions and will have the Budget Team invite elected officials and department heads to discuss new budget requests. During deliberation of the budget and the work sessions, the Board can request changes, budget notes which document policy discussions and decisions, and additional information from the departments pertaining to new budget requests. New budget requests approved by the majority vote will be added to the budget software by the Budget Team. The proposed final budget will be rebalanced, and a public hearing will be held for the proposed final budget. Although not required, it is preferred that the public hearing and the passing of the final budget occur at two different commission meetings.

Phase V – Adopt Final Budget (November to December)

After deliberation, work sessions, and public hearings, the Board of County Commissioners approves a resolution adopting the final budget. After the budget is adopted, any changes to the budget must be approved by the Board through budget resolutions or amendments during the year. The budget must be approved no later than December 31st for the calendar year and submitted to the Utah State Auditor within 30 days of the adoption of the budget. The final budget was adopted by the commission on December 17th.

Management of the Annual Budget

Control of budgeted expenditures is exercised, under state law, at the departmental level. The County Auditor, however, acting as budget officer, has authority to transfer unexpended budgeted amounts within departments. By resolution, the Board of County Commissioners may transfer unexpended budgeted amounts from one department in a fund to another department in the same fund. By resolution, the Board of County Commissioners may reduce the budget appropriation for any department provided that:

1. five days’ notice of the proposed action is given to all Commissioners and to the director of the department affected, and
2. that such director is permitted to be heard on the proposed reduction. Notice may be waived in writing by the affected department or by any member of the Board of County Commissioners.

The total budget appropriation of any fund may be increased only after a public hearing has been held and a public notice of that hearing has been posted for a certain number of days as set forth by state law and the amended budget is adopted by resolution of the Board of County Commissioners.

Encumbrances lapse at year end. Therefore, no encumbrances are presented in the financial statements.