2011T12 ANNUAL BUDGET - Granite School District

Granite School District
2011-12 Budget
Organizational Section
provides for the administration of the Utah Retirement Systems and Plans under the direction of the
Utah State Retirement Board (Retirement Board) whose members are appointed by the Governor.
The Systems issue a publicly available financial report that includes financial statements and required
supplementary information for the State and School Contributory Retirement System and State School
Noncontributory Retirement Systems. A copy of the report may be obtained by writing to the Utah
Retirement Systems at: 540 E. 200 S. Salt Lake City, UT 84102 or by calling 1-800-365-8772.
Plan members in the State and School Contributory Retirement Systems are required to contribute 1.0
percent of their annual covered salary and the District is required to contribute 17.37 percent of their
annual covered salary. In the State and School Noncontributory Retirement System the District is
required to contribute 16.86 percent of their annual covered salary. The contribution rates are the
actuarially determined rates. The contribution requirements of the Systems are authorized by statute
and specified by the Retirement Board. Over 99% of all district contributions are for the
Noncontributory Retirement System.
All full-time employees are also eligible to participate in a defined contribution 401(K) retirement
benefit. These funds are administered by the Utah State Retirement System or Educators Mutual
Insurance Association at the option of the employee. The District is required by Utah State law to
contribute 1.5% of eligible salaries towards the benefit on behalf of employees participating in the
State and School Noncontributory Retirement System as described above. The District is not required
to and does not contribute to a benefit on behalf of employees participating in the State and School
Contributory Retirement System as described above. Employees are not required to contribute to the
401(K). Employees who participate in the 401(K) retirement benefit become fully vested at the time of
the first contribution regardless of length of service.
The district is self-insured for employee health and accident insurance and workers’ compensation.
Benefit payments plus an administrative charge are made to third-party administrators who approve
and process all claims. All transactions of the plans are recorded in the Employee Benefits Self-
Insurance Fund. The proposed budget for the Self-Insurance Fund includes $59.35 million in
expenditures for the 2012 fiscal year. This is an increase of 4.39% over the $56.86 million in the final
2011 budget.
Purchased Services - Purchased services include three types; professional, property, and other.
Professional services include such areas as architectural, police, audit, and legal. Property services
include such expenses as water, sewer, garbage, equipment repair, and building rental. Other
services include mileage and travel reimbursement to employees, telephone services, and liability and
property insurance.
Supplies - Supplies include items such as instructional supplies, textbooks, library books, and
audiovisual materials. Also included would be supplies for district departments and programs, and
custodial and maintenance supplies.
Property and Equipment - The majority of the expenditures in this category are in the Capital Outlay
Fund. Examples of Capital Outlay Expenditures are purchases of equipment, furniture, computers,
school buses, and vehicles. In addition, costs of improvements to school buildings such as
remodeling, re-roofing, construction, and upgrades to electrical and mechanical systems. Portions of
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