71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2022
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Revenue
Committee)
CHAPTER ................
AN ACT
Relating to biennial budgeting by municipal corporations;
creating new provisions; and amending ORS 294.311, 294.316,
294.326, 294.336, 294.352, 294.361, 294.371, 294.376, 294.381,
294.391, 294.396, 294.406, 294.416, 294.418, 294.421, 294.425,
294.435, 294.443, 294.445, 294.450, 294.455, 294.460, 294.470,
294.480, 294.483, 294.555, 294.635, 294.645, 294.990 and
310.060.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS 294.305 to 294.565. + }
SECTION 2. { + (1) A municipal corporation, by ordinance,
resolution or charter, may provide that the budget and budget
documents for the municipal corporation be prepared for a period
of 24 months. Unless so authorized by ordinance, resolution or
charter, a municipal corporation may not prepare a budget and
budget documents for a period longer than one fiscal year.
(2) When the governing body of a municipal corporation prepares
a biennial budget, the governing body shall certify to the
assessor for each fiscal year of the budget period the ad valorem
property tax amount or rate for the ensuing fiscal year. + }
SECTION 3. ORS 294.311 is amended to read:
294.311. As used in ORS 294.305 to 294.565, unless the context
requires otherwise:
(1) 'Accrual basis' means the recording of the financial
effects on a municipal corporation of transactions and other
events and circumstances that have cash consequences for the
municipal corporation in the periods in which those transactions,
events and circumstances occur, rather than only in the periods
in which cash is received or paid by the municipal corporation.
(2) 'Activity' means a specific and distinguishable service
performed by one or more organizational components of a municipal
corporation to accomplish a function for which the municipal
corporation is responsible.
(3) 'Appropriation' means an authorization granted by the
governing body to make expenditures and to incur obligations for
specific purposes { - , and shall be limited to a single fiscal
year - } . { + An appropriation is limited to a single fiscal
year for municipal corporations preparing annual budgets, or to
the budget period for municipal corporations preparing biennial
budgets. + }
Enrolled House Bill 2022 (HB 2022-A) Page 1
(4) 'Basis of accounting' means the cash basis, the modified
accrual basis or the accrual basis.
(5) 'Budget' means a plan of financial operation embodying an
estimate of expenditures for a given period or purpose and the
proposed means of financing the estimated expenditures.
(6) 'Budget document' means the estimates of expenditures and
budget resources as set forth on the estimate sheets, tax levy
and the financial summary.
{ + (7) 'Budget period' means, for municipal corporations
with the power to levy a tax upon property, the two-year period
commencing on July 1 and closing on June 30 of the second
calendar year next following, and for all other municipal
corporations, an accounting period of 24 months ending on the
last day of any month. + }
{ - (7) - } { + (8) + } 'Budget resources' means resources
to which recourse can be had to meet obligations and expenditures
during the fiscal year { + or budget period + } covered by the
budget.
{ - (8) - } { + (9) + } 'Cash basis' means a basis of
accounting under which transactions are recognized only in the
period during which cash is received or disbursed.
{ + (10) 'Current budget period' means the budget period in
progress. + }
{ - (9) - } { + (11) + } 'Current year' means the fiscal
year in progress.
{ - (10) - } { + (12) + } 'Encumbrance accounting' means
the method of accounting under which outstanding encumbrances are
recognized as reductions of appropriations and the related
commitments are carried in a reserve for encumbrances until
liquidated, either by replacement with an actual liability or by
cancellation. This method of accounting may be used as a
modification to the accrual basis of accounting in accordance
with generally accepted accounting principles.
{ - (11) - } { + (13) + } 'Encumbrances' means obligations
in the form of purchase orders, contracts or salary commitments
which are chargeable to an appropriation and for which a part of
the appropriation is reserved. Obligations cease to be
encumbrances when paid or when the actual liability is set up.
{ + (14) 'Ensuing budget period' means the budget period
following the current budget period. + }
{ - (12) - } { + (15) + } 'Ensuing year' means the fiscal
year following the current year.
{ - (13) - } { + (16) + } 'Expenditure' means, if the
accounts are kept on the accrual basis or the modified accrual
basis, decreases in net financial resources and may include
encumbrances. If the accounts are kept on the cash basis, the
term covers only actual disbursement, the drawing of the check or
warrant for these purposes and not encumbrances, except that
deferred employee compensation shall be included as a personal
service expenditure where an approved deferred employee
compensation plan is in effect for a municipal corporation.
{ - (14) - } { + (17) + } 'Fiscal year' means for municipal
corporations with the power to impose ad valorem property taxes,
the fiscal year commencing on July 1 and closing on June 30, and
for all other municipal corporations, an accounting period of 12
months ending on the last day of any month.
{ - (15) - } { + (18) + } 'Fund balance' means the excess
of the assets of a fund over its liabilities and reserves except
in the case of funds subject to budgetary accounting where, prior
to the end of a fiscal period, it represents the excess of the
Enrolled House Bill 2022 (HB 2022-A) Page 2
fund's assets and estimated revenues for the period over its
liabilities, reserves and appropriations for the period.
{ - (16) - } { + (19) + } 'Governing body' means the city
council, board of commissioners, board of directors, county court
or other managing board of a municipal corporation including a
board managing a municipally owned public utility or a dock
commission.
{ - (17) - } { + (20) + } 'Grant' means a donation or
contribution of cash to a governmental unit by a third party.
{ - (18) - } { + (21) + } 'Imprest cash account' means an
account for handling minor disbursements whereby a fixed amount
of money, designated as petty cash, is set aside for this
purpose.
{ - (19) - } { + (22) + } 'Intergovernmental entity' means
an entity created under ORS 190.010 (5). The term includes any
council of governments created prior to the enactment of ORS
190.010 (5).
{ - (20) - } { + (23) + } 'Internal service fund' means a
fund properly authorized to finance, on a cost reimbursement
basis, goods or services provided by one organizational unit of a
municipal corporation to other organizational units of the
municipal corporation.
{ - (21) - } { + (24) + } 'Liabilities' means probable
future sacrifices of economic benefits, arising from present
obligations of a municipal corporation to transfer assets or
provide services to other entities in the future as a result of
past transactions or events. The term does not include
encumbrances.
{ - (22)(a) - } { + (25)(a) + } 'Modified accrual basis'
means the accrual basis of accounting adapted to the governmental
fund-type measurement focus. Under this basis of accounting,
revenues and other financial resource increments, such as bond
proceeds, are recognized when they become susceptible to accrual,
that is, when they become both measurable and available to
finance expenditures in the current period.
(b) As used in this subsection, 'available' means collectible
in the current period or soon enough thereafter to be used to pay
liabilities of the current period. Under this basis of
accounting, expenditures are recognized when the fund liability
is incurred except for:
(A) Inventories of material and supplies that may be considered
expenditures either when purchased or when used; and
(B) Prepaid insurance and similar items that may be considered
expenditures either when paid for or when consumed.
{ - (23) - } { + (26) + } 'Municipal corporation' means any
county, city, port, school district, union high school district,
community college district and all other public or quasi-public
corporations including a municipal utility or dock commission
operated by a separate board or commission.
{ - (24) - } { + (27) + } 'Net working capital' means the
sum of the cash, cash equivalents, investments, accounts
receivable expected to be converted to cash during the ensuing
year { + or ensuing budget period + }, inventories, supplies and
prepaid expenses less current liabilities and, if encumbrance
accounting is adopted, reserve for encumbrances. The term is not
applicable to the cash basis of accounting.
{ - (25) - } { + (28) + } 'Object' means, as used in
expenditure classification, articles purchased including, but not
limited to, land, buildings, equipment and vehicles, or services
obtained including, but not limited to, administrative services,
Enrolled House Bill 2022 (HB 2022-A) Page 3
clerical services, professional services, property services and
travel, as distinguished from the results obtained from
expenditures.
{ - (26) - } { + (29) + } 'Object classification' means a
grouping of expenditures on the basis of goods or services
purchased, including, but not limited to, personal services,
materials, supplies and equipment.
{ - (27) - } { + (30) + } 'Operating taxes' has the meaning
given that term in ORS 310.055.
{ - (28) - } { + (31) + } 'Organizational unit' means any
administrative subdivision of a municipal corporation, especially
one charged with carrying on one or more functions or activities.
{ - (29) - } { + (32) + } 'Population' means the number of
inhabitants of a municipal corporation according to certified
estimates of population made by the State Board of Higher
Education.
{ - (30) - } { + (33) + } 'Program' means a group of
related activities aimed at accomplishing a major service or
function for which the municipality is responsible.
{ - (31) - } { + (34) + } 'Public utility' means those
public utility operations authorized by ORS chapter 225.
{ - (32) - } { + (35) + } 'Publish' or 'publication' means
any one or more of the following methods of giving notice or
making information or documents available to members of the
general public:
(a) Publication in one or more newspapers of general
circulation within the jurisdictional boundaries of the municipal
corporation.
(b) Posting through the United States Postal Service by first
class mail, postage prepaid, to each street address within the
jurisdictional boundaries of the municipal corporation.
(c) Hand delivery to each street address within the
jurisdictional boundaries of the municipal corporation.
{ - (33) - } { + (36) + } 'Receipts' means cash received
unless otherwise qualified.
{ - (34) - } { + (37) + } 'Reserve for encumbrances' means
a reserve representing the segregation of a portion of a fund
balance to provide for unliquidated encumbrances.
{ - (35) - } { + (38) + } 'Revenue' means the gross
receipts and receivables of a governmental unit derived from
taxes, licenses, fees and from all other sources, but excluding
appropriations, allotments and return of principal from
investment of surplus funds.
{ - (36) - } { + (39) + } 'Special revenue fund' means a
fund properly authorized and used to finance particular
activities from the receipts of specific taxes or other revenues.
SECTION 4. ORS 294.316 is amended to read:
294.316. The provisions of ORS 294.305 to 294.565 do not apply
to the following municipal corporations:
(1) Drainage districts organized under ORS chapter 547;
(2) District improvement companies organized under ORS chapter
554;
(3) Highway lighting districts organized under ORS chapter 372;
(4) Irrigation districts organized under ORS chapter 545;
(5) Road districts organized under ORS chapter 371;
(6) Soil and water conservation districts organized under ORS
chapter 568 that will not levy an ad valorem tax during the
ensuing year { + or ensuing budget period + };
(7) Municipal public utilities operating under separate boards
or commissions, authorized under ORS chapter 225 and city
Enrolled House Bill 2022 (HB 2022-A) Page 4
charters, and people's utility districts organized under ORS
chapter 261, both operating without ad valorem tax support during
the ensuing year { + or ensuing budget period + };
(8) Housing authorities organized under ORS 446.515 to 446.547
and ORS chapter 456 that are not carrying out urban renewal
activities using a division of ad valorem taxes under ORS 457.440
during the ensuing year { + or ensuing budget period + };
(9) Water control districts organized under ORS chapter 553
that will not levy an ad valorem tax during the ensuing year { +
or ensuing budget period + };
(10) Hospital financing authorities organized under ORS 441.525
to 441.595;
(11) Export trading corporations organized under ORS 777.755 to
777.800; and
(12) Diking districts organized under ORS chapter 551.
SECTION 5. ORS 294.326 is amended to read:
294.326. (1) Except as provided in subsections (3) to (11) of
this section, it is unlawful for any municipal corporation to
expend money or to certify to the assessor an ad valorem tax rate
or estimated amount of ad valorem taxes to be imposed in any year
unless the municipal corporation has complied with ORS 294.305 to
294.565.
(2) To the extent that any of subsections (3) to (11) of this
section apply in a given case, the municipal corporation need not
comply with ORS 294.305 to 294.565.
(3) Subsection (1) of this section shall not apply to the
expenditure in the year of receipt of grants, gifts, bequests or
devises transferred to a municipal corporation in trust for
specific purposes or to other special purpose trust funds at the
disposal of municipal corporations. However, subsection (1) of
this section shall apply to the expenditure of grants, gifts,
bequests or devises transferred to a municipal corporation for
undesignated general purposes or to the expenditure of grants,
gifts, bequests or devises transferred to a municipal corporation
in trust for specific purposes which were received in a prior
year. Expenditure of grants, gifts, bequests and devises exempt
from subsection (1) of this section by this subsection shall be
lawful only after enactment by the governing body of the
municipal corporation of appropriation ordinances or resolutions
authorizing the expenditure.
(4) Subsection (1) of this section shall not apply whenever the
governing body of a municipal corporation has declared the
existence of an unforeseen occurrence or condition which could
not have been foreseen at the time of the preparation of the
budget for the current year { + or current budget period + } or
could not have foreseen a pressing necessity for the expenditure
or has received a request for services or facilities, the cost of
which shall be supplied by a private individual, corporation or
company or by another governmental unit necessitating a greater
expenditure of public money for any specific purpose or purposes
than the amount budgeted therefor in order to provide the
services for which it was responsible. Such governing body may
make excess expenditures for such specific purpose or purposes
beyond the amount budgeted and appropriated therefor to the
extent that maintenance, repair or self-insurance reserves
authorized by ORS 294.366 or nontax funds are available or may be
made available. Such expenditures shall be lawful only after the
enactment of appropriate appropriation ordinances or resolutions
authorizing the expenditures. The ordinance or resolution shall
Enrolled House Bill 2022 (HB 2022-A) Page 5
state the need for the expenditure, the purpose for the
expenditure and the amount appropriated.
(5) Subsection (1) of this section shall not apply to the
expenditure during the current year { + or current budget
period + } of the proceeds of the sale of the following bonds or
other obligations, or to the expenditure during the current year
{ + or current budget period + } of other funds to pay debt
service on the following bonds or other obligations:
(a) Bonds that are issued under the Uniform Revenue Bond Act,
ORS 288.805 to 288.945, for which the 60-day period described in
ORS 288.815 (2) ended after the preparation of the { - current
year's - } budget { + of the current year or current budget
period + };
(b) Bonds or other obligations that were approved by the
electors during the current year { + or current budget
period + }; or
(c) Bonds or other obligations issued during the current year
{ + or current budget period + } to refund previously issued
bonds or obligations.
(6) Notwithstanding subsection (5) of this section, subsection
(1) of this section shall not apply to:
(a) Expenditures of funds received from the sale of conduit
revenue bonds issued for private business or nonprofit
corporations by cities, counties, county service districts, port
districts, special districts, the Port of Portland or the State
of Oregon or to pay debt service on such bonds;
(b) Expenditures of funds that have been irrevocably placed in
escrow for the purpose of defeasing and paying bonds; or
(c) Expenditures of assessments or other revenues to redeem
bonds or other obligations that are payable from such assessments
or other revenues, when such assessments or other revenues are
received as a result of prepayments or other unforeseen
circumstances.
(7) Subsection (1) of this section shall not apply to
expenditures of funds received from assessments against benefited
property for local improvements as defined in ORS 223.001 to the
extent that the cost of such improvements is to be paid by owners
of benefited property.
(8) Subsection (1) of this section shall not apply to the
expenditure of funds accumulated to pay deferred employee
compensation.
(9) Subsection (1) of this section shall not apply to refunds
or the interest on them granted by counties under ORS 311.806.
(10) Subsection (1) of this section shall not apply to refunds,
received by a municipal corporation when purchased items are
returned after an expenditure has been made. Expenditure of
refunded amounts to which this subsection applies shall be lawful
only after the governing body of the municipal corporation has
enacted, after public hearing, appropriate appropriation
ordinances or resolutions authorizing such expenditure.
(11) Subsection (1) of this section shall not apply to a newly
formed municipal corporation during the fiscal year in which it
was formed. If a new municipal corporation is formed between
March 1 and June 30, subsection (1) of this section shall not
apply to the municipal corporation during the fiscal year
immediately following the fiscal year in which it was formed.
SECTION 6. ORS 294.352 is amended to read:
294.352. (1) Each municipal corporation shall prepare estimates
of expenditures for the ensuing year { + or ensuing budget
period + }.
Enrolled House Bill 2022 (HB 2022-A) Page 6
(2) The estimates required by subsection (1) of this section
shall be prepared by organizational unit or by program.
(3) Estimates required by subsection (1) of this section and
prepared by organizational unit shall be detailed under separate
object classifications of personal services, materials and
services and capital outlay. Separate estimates shall be made for
special payments, debt service, interfund revenue transfers,
operating expenses and general capital outlays which cannot
reasonably be allocated to an organizational unit.
(4) Estimates required by subsection (1) of this section and
prepared by program shall be arranged for each activity of a
program. Estimates under each activity shall be detailed under
separate object classifications of personal services, materials
and services and capital outlay. Separate estimates shall be made
for each program for special payments, debt service, interfund
revenue transfers, operating expenses and general capital outlays
which cannot reasonably be allocated to an activity within a
function. For common and union high school districts and
community colleges, estimates required by this subsection shall
be further detailed by object within each object classification.
(5) Estimates of expenditures for personal services, other than
services of persons who receive an hourly wage or who are hired
on a part-time basis, shall list the salary for each officer and
employee, except that employees of like classification and salary
range, (such range not to exceed that established by the
governing body of the municipal corporation in accordance with
its policy for setting salaries) in each organizational unit or
activity may be listed by the number of those employees, the
limits of each salary range and the amount of their combined
salaries.
(6) The general capital outlay estimate shall include separate
amounts for land, buildings, improvements to land other than
buildings and machinery and equipment which cannot be reasonably
allocated to an organizational unit or activity.
(7) The debt service estimates shall include separate amounts
for principal and interest of each bond issue in each fund.
(8) There may be included in each fund an estimate for general
operating contingencies.
(9) If the estimates required by subsection (1) of this section
are not prepared by fund, there shall be prepared a summary which
cross-references programs or organizational units to the
appropriations required by ORS 294.435.
SECTION 7. ORS 294.361 is amended to read:
294.361. (1) Each municipal corporation shall estimate in
detail its budget resources for the ensuing year { + or ensuing
budget period + } by funds and sources.
(2) Budget resources include but are not limited to: The
balance of cash, cash equivalents and investments (in the case of
a municipal corporation on the cash basis) or the net working
capital (in the case of a municipal corporation on the accrual or
modified accrual basis of accounting) that will remain in each
fund on the last day of the current year { + or current budget
period + }; taxes; fees; licenses; fines; interest on deposits or
on securities of any kind; endowments; annuities; penalties;
sales of property or other assets or products of any kind;
delinquent taxes; judgments; damages; rent; premiums on sales of
bonds; reimbursement for services, road or other work performed
for others; transfer or reverter of unused balances of any kind;
reimbursement for services provided other funds; rebates; refunds
of moneys heretofore paid on any account; apportionment, grant,
Enrolled House Bill 2022 (HB 2022-A) Page 7
contribution, payment or allocation from the federal or state
government or any unit of government; taxes for the ensuing year
{ + or ensuing budget period + }; interfund revenue transfers;
and revenues from any and all other sources of whatsoever kind or
character.
(3) Budget resources shall not include:
(a) The estimate for the ensuing year { + or ensuing budget
period + } of discounts under ORS 311.505.
(b) The estimate of uncollectible amounts of taxes, fees or
charges for the ensuing year { + or ensuing budget period + }.
(c) Moneys accumulated under an approved employee deferred
compensation plan and interest or investment returns earned on
such moneys.
(d) Grants, gifts, bequests or devises transferred to a
municipal corporation in trust for specific uses in the year of
transfer. However, such grants, gifts, bequests or devises shall
be included as budget resources if, by the time the budget
committee approves the budget, the amount thereof that will be
received in the ensuing year { + or ensuing budget period + }
can be reasonably estimated. Such grants, gifts, bequests or
devises may be placed in a trust and agency fund, to then be
appropriated from such fund or funds.
SECTION 8. ORS 294.371 is amended to read:
294.371. A municipal corporation may include in its budget an
estimate of unappropriated ending fund balance for each fund, for
use in the fiscal period following that for which the budget is
being prepared. The estimate authorized by this section
represents cash or net working capital which will be carried over
into the year following the ensuing fiscal year { + or ensuing
budget period + } for which the budget is being prepared. It
shall not in any way reduce the cash balance or net working
capital which becomes part of the budget resources provided in
ORS 294.361 (1) to (3). The unappropriated ending fund balance
authorized by this section shall become a budget resource at the
close of the ensuing fiscal year { + or ensuing budget
period + } for the succeeding year { + or budget period + }.
Except as provided in ORS 294.326 (3) and 294.455, no
appropriation nor expenditure shall be made in the year { + or
budget period + } for which the budget is applicable for the
amount estimated pursuant to this section.
SECTION 9. ORS 294.376 is amended to read:
294.376. (1) The sheet or sheets containing the estimate of
expenditures shall also show in parallel columns the actual
expenditures for the two fiscal years next preceding the current
year { + or the actual expenditures for the two budget periods
preceding the current budget period + }, the estimated
expenditures for the current year { + or current budget
period + } and the estimated expenditures for the ensuing
year { + or ensuing budget period + }.
(2) The sheet or sheets containing the estimate of budget
resources shall also show in parallel columns the actual budget
resources of the two fiscal years next preceding the current year
{ + or the actual budget resources for the two budget periods
preceding the current budget period + }, the estimated budget
resources for the current year { + or current budget period + }
and the estimated budget resources for the ensuing year { + or
ensuing budget period + }.
(3) The estimate sheets shall be made a part of the budget
document.
SECTION 10. ORS 294.381 is amended to read:
Enrolled House Bill 2022 (HB 2022-A) Page 8
294.381. (1) Each municipal corporation that has the power to
levy an ad valorem property tax shall estimate, in the manner
provided in this section, the amount of revenues that will be
received in the ensuing year { + or ensuing budget period + }
through the imposition of taxes upon the taxable property within
the municipal corporation.
(2) Subject to the additional adjustments required under
subsection (3) of this section, the estimated ad valorem taxes
that will be received in the ensuing year { + or ensuing budget
period + } is the sum of the following:
(a) The amount derived by multiplying the estimated assessed
value for the ensuing year { + or each fiscal year of the
ensuing budget period + } of the taxable property within the
municipal corporation by whichever of the following is applicable
to the municipal corporation:
(A) The municipal corporation's permanent rate limit on
operating taxes, as defined in ORS 310.202 (8), or such lesser
rate as the municipal corporation may determine to use for
purposes of levying such ad valorem taxes; or
(B) The municipal corporation's statutory rate limit on
operating taxes, as defined in ORS 310.202 (10), or such lesser
rate as the municipal corporation may determine to use for
purposes of levying such ad valorem taxes.
(b) If the municipal corporation is authorized to levy a local
option tax that was authorized by the electors as a dollar
amount, the dollar amount of such local option tax that is
authorized to be levied in the ensuing year { + or ensuing
budget period + }.
(c) If the municipal corporation is authorized to levy a local
option tax that was authorized by the electors as a tax rate, the
amount derived by multiplying the authorized rate of such local
option tax for the ensuing year { + or ensuing budget period + }
by the estimated assessed value for the ensuing year { + or each
fiscal year of the ensuing budget period + } of the taxable
property within the municipal corporation.
(d) An amount equal to the principal and interest on all bonded
indebtedness of the municipal corporation that is due and payable
in the ensuing year { + or ensuing budget period + }, divided by
the annual average percentage of taxes collected in the county in
which the taxable property of the municipal corporation is
located.
(3) The sum of the amounts determined under subsection (2)(a),
(b) and (c) of this section shall be reduced by an amount equal
to the estimated amount of such taxes that will not be collected
as a result of:
(a) The discounts allowed under ORS 311.505;
(b) The limits imposed under ORS 310.150 (3); and
(c) The failure of taxpayers to pay such taxes in the year for
which they are levied.
(4) The estimated ad valorem taxes determined in accordance
with subsections (2) and (3) of this section shall be used by the
municipal corporation for purposes of complying with the
requirements of ORS 310.060 (1).
SECTION 11. ORS 294.391 is amended to read:
294.391. A budget message shall be prepared by or under the
direction of the executive officer of the municipal corporation
or, where no executive officer exists, by or under the direction
of the presiding officer of the governing body. The budget
message shall be delivered at a meeting of the budget committee
as provided in ORS 294.401 (1). The budget message shall:
Enrolled House Bill 2022 (HB 2022-A) Page 9
(1) Explain the budget document;
(2) Contain a brief description of the proposed financial
policies of the municipal corporation for the ensuing year { +
or ensuing budget period + };
(3) Describe in connection with the financial policies of the
municipal corporation, the important features of the budget
document;
(4) Set forth the reason for salient changes from the previous
year { + or budget period + } in appropriation and revenue
items; and
(5) Explain the major changes in financial policy.
SECTION 12. ORS 294.396 is amended to read:
294.396. The budget message and budget document shall be
prepared a sufficient length of time in advance to allow the
adoption of the budget by the close of the current fiscal
year { + or current budget period + }.
SECTION 13. ORS 294.406 is amended to read:
294.406. (1) The budget committee shall approve the budget
document as submitted by the budget officer or the budget
document as revised and prepared by the budget committee. The
budget document as approved by the budget committee shall specify
the ad valorem property tax amount or rate for all funds.
(2) In addition to the meetings held under ORS 294.401 (1), the
budget committee may meet from time to time at its discretion.
All meetings of the budget committee shall be open to the public.
Except for a meeting of the budget committee held under ORS
294.401 (1), prior notice of each meeting of the budget committee
shall be given at the same time as is required for notice of
meetings of the governing body of the municipal corporation and
may be given in the same manner as notice of meetings of the
governing body or by any one or more of the methods described in
ORS 294.311 { - (32) - } { + (35) + }.
(3) The budget committee may demand and receive from any
officer, employee or department of the municipal corporation any
information the committee requires for the revision and
preparation of the budget document. The budget committee may
compel the attendance of any such officer or employee at its
meetings.
SECTION 14. ORS 294.416 is amended to read:
294.416. Except as provided in ORS 294.418, there shall be
published, as provided in ORS 294.421:
(1) A summary of the budget as approved by the budget committee
and compared with the { - most recent preceding year's - }
actual expenditures and budget resources { + of the preceding
year or preceding budget period + } and the { - current
year's - } budget summary { + of the current year or current
budget period + } in accordance with forms prescribed by the
Department of Revenue in the manner provided in ORS 294.413. The
summary shall be of sufficient detail to inform the citizens of
the municipal corporation of the proposed financial plan for the
ensuing { - fiscal - } year { + or ensuing budget period + }.
As a minimum requirement, the personnel services, the major
expense items under materials and services and capital outlay for
each organizational unit or activity of each fund and the major
items for debt service, special payments, and operating
contingencies for each fund shall be listed separately. The
summary shall show the major items of budget resources. As used
in this subsection, the term 'program' may be substituted for the
term 'organizational unit' for municipal corporations which
prepare program budgets.
Enrolled House Bill 2022 (HB 2022-A) Page 10
(2) The financial summary prepared under ORS 294.386 for the
ensuing year { + or ensuing budget period + } and for the
current year { + or current budget period + }.
(3) A notice of the time and place at which the budget document
as approved by the budget committee may be discussed with the
governing body.
(4) A statement that the budget is prepared in accordance with
the basis of accounting used in the preceding year { + or
preceding budget period + } unless a change in the basis of
accounting is anticipated. If a change in the basis of accounting
is to be made, there shall be an explanation of the change and
the effects of the change.
(5) A notice of the place where the complete budget document is
available for inspection by the general public during regular
business hours and where copies of the complete budget document
may be obtained.
SECTION 15. ORS 294.418 is amended to read:
294.418. In lieu of the publication requirements contained in
ORS 294.416, a municipal corporation may elect to publish its
budget as provided in this section.
(1) There shall be published, as provided in ORS 294.421, a
summary of the budget as approved by the budget committee and
compared with the { - most recent preceding year's - } budget
summary { + of the preceding year or preceding budget period + }
and the { - current year's - } budget summary { + for the
current year or current budget period + }. As a minimum
requirement, there shall be listed the total requirements for
personal services, materials and services, capital outlay,
special payments, debt service, transfers and operating
contingencies for the budget. In addition, there shall be
published a brief narrative description of the major activities
or major programs of the municipal corporation and the prominent
changes from the current year { + or current budget period + }.
Information shall be furnished showing the personnel requirement
changes for each major activity or major program. The narrative
shall state the major resources for financing each major activity
or program and the prominent changes from the current year { +
or current budget period + }, or shall state that each major
activity or program is financed from general resources of the
governmental unit. The summary for the ensuing year { + or
ensuing budget period + } and for the current year { + or
current budget period + } shall show total budgeted requirements,
total estimated resources other than ad valorem property taxes
and estimated ad valorem property tax revenues, stated in dollars
and cents. The summary shall also state the municipal
corporation's operating tax rate and the amount or rate of any
other ad valorem property taxes to be certified to the assessor.
Tax rates shall be expressed at a rate per thousand dollars of
assessed value. The summary shall include an analysis of ad
valorem property taxes for the current and ensuing years { + or
budget periods + } that are outside of the municipal
corporation's permanent rate limit or statutory rate limit, if
applicable, showing local option taxes and ad valorem property
taxes for meeting payments on bond, principal and interest
thereon and for meeting other obligations of the municipal
corporation described under section 11 (5), Article XI of the
Oregon Constitution.
(2) There shall be published with the summary:
Enrolled House Bill 2022 (HB 2022-A) Page 11
(a) A notice of the time and place at which the budget document
as approved by the budget committee may be discussed with the
governing body.
(b) A statement that the budget is prepared in accordance with
the basis of accounting used in the preceding year { + or budget
period + } unless a change in the basis of accounting is
anticipated; and if a change in the basis of accounting is to be
made, there shall be an explanation of the change and the effects
of the change.
(c) A notice of the place where the complete budget document is
available for inspection by the general public during regular
business hours and where copies of the complete budget document
may be obtained.
SECTION 16. ORS 294.421 is amended to read:
294.421. (1) Subject to subsections (3) to (6) of this section,
the summary of the budget document approved by the budget
committee shall be published at least once prior to the time
appointed for the proposed meeting of the governing body in
accordance with ORS 294.430.
(2) Subject to subsections (3) to (6) of this section, the
notice of the time and place at which the budget document as
approved by the budget committee may be discussed shall be
published by one or more of the methods described in ORS 294.311
{ - (32) - } { + (35) + } not less than five days and not
more than 30 days prior to the date of the meeting required by
ORS 294.430.
(3) If no newspaper is published in the municipal corporation,
a municipal corporation whose aggregate of estimated budget
expenditures for the ensuing fiscal year does not exceed $50,000
{ + or for the ensuing budget period does not exceed
$100,000 + } may, in lieu of the publication and notice provided
in subsections (1) and (2) of this section and in lieu of
publication by one or more of the methods described in ORS
294.311 { - (32) - } { + (35) + }, post the summaries and
notices provided by ORS 294.416 or 294.418 in three conspicuous
places in the municipal corporation for at least 20 days prior to
the date of the meeting provided in ORS 294.430 and publish the
notice provided by subsection (4) of this section.
(4) If notice is given as provided in subsection (3) of this
section, the municipal corporation shall publish, by one or more
of the methods described in ORS 294.311 { - (32) - } { +
(35) + }, a notice of the following:
(a) The date, time and place of the meeting provided by ORS
294.430;
(b) The place where the complete budget document is available
for inspection by the general public during regular office hours;
(c) Total budget requirements and taxes proposed to be levied;
(d) Changes in the amount or rate of proposed ad valorem
property taxes; and
(e) The place where copies of the complete budget or parts
thereof may be obtained.
(5) The notice provided in subsection (4) of this section shall
be published not less than five days and not more than 30 days
prior to the date of the meeting provided in ORS 294.430.
(6) A municipal corporation having a population exceeding
200,000 inhabitants, or a municipal corporation with 200,000 or
fewer inhabitants that requests the tax supervising and
conservation commission to conduct the public hearing outlined in
ORS 294.430, shall, in lieu of the publication and notice
prescribed in subsection (1) of this section, submit its budget
Enrolled House Bill 2022 (HB 2022-A) Page 12
document, as approved by the budget committee, to the tax
supervising and conservation commission within its county, if
there is such a commission, at least 20 days prior to the legal
date of the public hearing before the tax supervising and
conservation commission on the budget, and the budget document
shall thereupon be open to inspection by any taxpayer or citizen.
The municipal corporation shall also publish a notice as provided
in subsections (4) and (5) of this section.
SECTION 17. ORS 294.425 is amended to read:
294.425. (1) When a notice, budget summary or other document is
required to be published under any provision of ORS 294.305 to
294.565, publication of the document shall be considered
sufficient for all purposes if a good faith effort is made by the
budget officer of the municipal corporation to publish by any one
or more of the methods described in ORS 294.311 { - (32) - }
{ + (35) + }, notwithstanding any defect in the publication,
including but not limited to:
(a) Typographical or scriveners' errors in the published
material;
(b) Failure of the published materials to be mailed or hand
delivered to each street address within the jurisdictional
boundaries of the municipal corporation;
(c) Arithmetic errors in computing numerical information,
including tax levies or tax rates;
(d) Calculations of ad valorem property taxes not made in
accordance with the applicable requirements of law; or
(e) Failure to publish within the time periods required by law.
(2) At the first regularly scheduled meeting of the governing
body of the municipal corporation that is held following the
discovery of any publication error described in subsection
(1)(a), (c) or (d) of this section, the budget officer shall
advise the governing body in writing of the error and shall
correct the error by testimony before the governing body at the
meeting. If the error relates to the calculation of ad valorem
property taxes, the budget officer shall immediately notify the
county assessor of the error in writing, identifying the correct
ad valorem property tax.
SECTION 18. ORS 294.435 is amended to read:
294.435. (1) After the public hearing provided for in ORS
294.430 (1) has been held, the governing body shall enact the
proper ordinances or resolutions to adopt the budget, to make the
appropriations, to determine, make and declare the ad valorem
property tax amount or rate to be certified to the assessor for
{ + either + } the ensuing year { + or for each of the years
of the ensuing budget period + } and to itemize and categorize
the ad valorem property tax amount or rate as provided in ORS
310.060. Consideration shall be given to matters discussed at
the public hearing. The budget estimates and proposed ad valorem
property tax amount or rate as shown in the budget document may
be amended prior to adoption and may also be amended by the
governing body following adoption if such amendments are adopted
prior to the commencement of the fiscal year { + or budget
period + } to which the budget relates. However, the amount of
estimated expenditures for each fund { - shall - } { + in an
annual budget may + } not be increased by more than $5,000 or 10
percent of the estimated expenditures, whichever is greater, { +
and the amount of estimated expenditures for each fund in a
biennial budget may not be increased by more than $10,000 or 10
percent of the estimated expenditures, whichever is greater, + }
and the amount or rate of the total ad valorem property taxes to
Enrolled House Bill 2022 (HB 2022-A) Page 13
be certified by the municipal corporation to the assessor shall
not exceed the amount approved by the budget committee, unless
the amended budget document is republished as provided by ORS
294.416 or 294.418 and 294.421 for the original budget and
another public hearing is held as provided by ORS 294.430 (1).
(2) After the public hearing provided for in ORS 294.430 (2) or
(3) has been held and the certification of the tax supervising
and conservation commission received, if such certification is
required, the governing body shall enact the proper ordinances or
resolutions to adopt the budget, to make the appropriations, to
determine, make and declare the ad valorem property tax amount or
rate { + for either the ensuing fiscal year or for each of the
fiscal years of the ensuing budget period + } and to itemize and
categorize the ad valorem property tax amount or rate as provided
in ORS 310.060. Consideration shall be given any orders,
recommendations or objections made by the tax supervising and
conservation commission in accordance with law. The action taken
on each order, recommendation or objection after such
consideration by the governing body, with the reasons for such
action, shall be included in the ordinance or resolution adopting
the budget. A certified copy of the ordinance or resolution shall
be sent to the commission within 15 days after the date the
ordinance or resolution is adopted. The budget estimates,
appropriations and ad valorem property tax amount or rate as
shown in the budget document may be amended prior to adoption and
may also be amended by the governing body following adoption if
such amendments are adopted prior to the commencement of the
fiscal year { + or budget period + } to which the budget
relates. However, the amount of estimated expenditures for each
fund { - shall - } { + may + } not be increased by more than
$5,000 or 10 percent of the estimated expenditures, whichever is
greater, { + the amount of estimated expenditures for each fund
in a biennial budget may not be increased by more than $10,000 or
10 percent of the estimated expenditures, whichever is
greater, + } and the amount or rate of the total ad valorem
property taxes to be certified by the municipal corporation to
the assessor
{ - shall - } { + may + } not exceed the amount shown in the
budget document at the time of the budget hearing, unless the
amended budget document is resubmitted to the tax supervising and
conservation commission for another public hearing, and for
recommendations or objections of that body.
(3) The appropriations required by subsections (1) and (2) of
this section shall, as a minimum, contain one amount for each
organizational unit or program of each fund. In addition,
separate amounts shall be appropriated in each fund for debt
service, special payments, interfund revenue transfers, capital
outlay, operating expenses which cannot be allocated to an
organizational unit or program and operating contingencies. If
the governing body so desires, it may appropriate separate
amounts for activities within an organizational unit or program.
For those municipal corporations where the term 'organizational
unit' has no application, the appropriations shall contain
separate amounts for personal services, materials and services,
capital outlay, debt service, special payments, interfund revenue
transfers and operating contingency for each fund.
(4) Thereafter no greater expenditure, or encumbrance if
encumbrance accounting is used, of public money shall be made for
any specific purpose other than the amount appropriated therefor
except as provided in ORS 294.326, 294.440, 294.450 and 294.480.
Enrolled House Bill 2022 (HB 2022-A) Page 14
(5) The determination of the amount or rate of ad valorem
property taxes to be certified shall be entered in the proper
records of the governing body. No greater tax than that so
entered upon the record shall be certified by the municipal
corporation proposing the tax for the purpose or purposes
indicated.
(6) Nothing contained in this section shall preclude a
governing body during the fiscal year { + or budget period + }
by appropriate ordinance or resolution, after public hearing,
from adjusting budgeted resources and reducing appropriations to
reflect a decrease in available resources.
(7)(a) The governing body shall determine, make and declare ad
valorem property taxes under subsections (1) and (2) of this
section as a rate per $1,000 of assessed value if the taxes are
operating taxes or rate-based local option taxes as a rate per
$1,000 of assessed value.
(b) The governing body shall determine, make and declare ad
valorem property taxes under subsections (1) and (2) of this
section as an amount if the taxes are being certified as
amount-based local option taxes, to pay principal and interest on
exempt bonded indebtedness or to pay other government obligations
described in section 11 (5), Article XI of the Oregon
Constitution.
SECTION 19. ORS 294.443 is amended to read:
294.443. In the exercise of the authority granted by ORS
288.165, 328.565 and 341.715, specific provision for interest
must be contained in duly adopted budgets. However, reporting of
anticipated loan proceeds and related principal repayments within
a particular fiscal year { + or budget period + } may be
accomplished in narrative form or by footnoted schedules to the
duly adopted budget and need not be included as a budgetary
resource or requirement. Such narrative or footnoted disclosure
must indicate that principal repayments are a liability of the
applicable fund from which they are made.
SECTION 20. ORS 294.445 is amended to read:
294.445. (1) A municipal corporation shall record its revenues
and expenditures, on a fund by fund basis, using either the cash
basis, the modified accrual basis or the accrual basis of
accounting.
(2) The selection of the basis of accounting is left to the
discretion of each municipal corporation. Any change in the basis
of accounting shall be clearly set forth in the budget message
for the { + fiscal + } year { + or budget period + } in which
the change is contemplated and the reasons for the change and its
effect on the operations of the municipal corporation shall be
explained. Once a new basis of accounting is adopted, it shall be
followed in the year { + or period + } for which the budget was
prepared and each succeeding year { + or period + } thereafter
until changed in a subsequent budget. Such change must be
published as provided in ORS 294.416 (3).
SECTION 21. ORS 294.450 is amended to read:
294.450. Subject to the provisions contained in the charter of
any city or county or in any law relating to municipal
corporations:
(1) Except as provided in subsection (2) of this section,
transfers of appropriations may be made within a given fund when
authorized by official resolution or ordinance of the governing
body. The resolution or ordinance shall state the need for the
transfer, the purpose for the authorized expenditure and the
amount of appropriation transferred.
Enrolled House Bill 2022 (HB 2022-A) Page 15
(2) Transfers of general operating contingency appropriations
which in aggregate during a fiscal year { + or budget period + }
exceed 15 percent of the total appropriations of the fund may be
made only after adoption of a supplemental budget prepared for
that purpose. All other transfers of general operating
contingencies are subject to subsection (1) of this section.
(3) Transfers of appropriations or of appropriations and a like
amount of budget resources may be made from the general fund of
the municipal corporation to any other fund when authorized by an
official resolution or ordinance of the governing body. The
resolution or ordinance shall state the need for the transfer,
the purpose for the authorized expenditures embodied in the
appropriation and the amount of appropriation transferred.
(4) It shall be unlawful to transfer appropriations from any
special revenue fund to the general fund or any other special
revenue fund.
(5) The transfers referred to in this section apply to
transfers which occur after the budget has been approved and
which are made during the { + fiscal + } year { + or budget
period + } for which the appropriations are made. Nothing in this
section shall prohibit or regulate lawful transfers which have
been budgeted in accordance with the local budget law.
(6) When a municipal corporation imposes taxes, fees or charges
that, in accordance with applicable law or an intergovernmental
agreement under ORS chapter 190, are required to be paid, on a
pass-through basis, to another municipal corporation, the
municipal corporation that imposes the taxes, fees or charges
shall include the taxes, fees or charges in its budget and shall
appropriate the estimated amount generated thereby. The
appropriation shall take the form of an expense of the municipal
corporation that imposes the taxes, fees or charges. If the
actual amount collected from the taxes, fees or charges during a
fiscal year { + or budget period + } exceeds the estimated
amount included in the imposing municipal corporation's budget
for the fiscal year { + or budget period + }, then upon
determining that such excess exists the municipal corporation
imposing the taxes, fees or charges shall appropriate such excess
by means of a resolution or ordinance of its governing body, and
no further action shall be required under ORS 294.305 to 294.565
to lawfully budget, appropriate or expend such excess.
SECTION 22. ORS 294.455 is amended to read:
294.455. If property has been involuntarily converted or
destroyed during the current { - fiscal - } year { + or
current budget period + } or if, as a result of civil
disturbance, fire, flood, earthquake or other calamity or natural
disaster, it is necessary for a municipal corporation to expend
funds, receive grants or borrow moneys that were not included in
the budget for the current
{ - fiscal - } year { + or current budget period + },
authorization of all matters necessary in order for the municipal
corporation to receive those grants or borrow those moneys may be
made by ordinance or resolution of the governing body, and
appropriations for the estimated expenditures out of any source
of available funds, including but not limited to unappropriated
fund balances, shall be made by resolution or ordinance in the
same manner as provided in ORS 294.450 (1), or by supplemental
budget as provided by ORS 294.480 (3) and (4). When prompt action
is necessary to protect the public health or safety following the
involuntary conversion or destruction of property or the
occurrence of a calamity or natural disaster and if it is not
Enrolled House Bill 2022 (HB 2022-A) Page 16
practical to convene a meeting of the governing body of the
municipal corporation, the chief executive officer of the
municipal corporation may, by written order, authorize the
immediate expenditure of funds from any available source to
redress the situation that threatens the public health or safety.
SECTION 23. ORS 294.460 is amended to read:
294.460. (1) It shall be lawful to loan money from any fund to
any other fund of the municipal corporation whenever the loan is
authorized by official resolution or ordinance of the governing
body. The loans shall be made in compliance with the applicable
requirements and limitations of this section. Loans made under
this section shall not be made from:
(a) Debt service reserve funds created to provide additional
security for outstanding bonds or other borrowing obligations
that the municipal corporation has covenanted with the holders of
such bonds or other borrowing obligations to maintain at certain
specified levels. However, nothing in this paragraph is intended
or shall be construed to prohibit loans from any such debt
service reserve fund to the extent that the aggregate outstanding
amount of the loans does not exceed the amount by which the
amount in such debt service reserve fund exceeds the amount the
municipal corporation has covenanted to maintain in the reserve
fund with the holders of the related bonds or other borrowing
obligations;
(b) Debt service funds created to account for moneys needed to
make annual debt service payments on outstanding bonds or other
borrowing obligations; or
(c) Moneys credited to any fund when, under applicable
constitutional provisions, the moneys are restricted to specific
uses unless the purpose for which the loan is to be made is a use
allowed under such constitutional provisions.
(2) The resolution or ordinance authorizing any interfund loan
permitted under this section shall:
(a) State the fund from which the loan is to be made, the fund
to which the loan is to be made, the purpose for which the loan
is to be made and the principal amount of the loan.
(b) If the interfund loan is a capital loan, set forth a
schedule under which the principal amount of the loan, together
with interest thereon at the rate provided for in paragraph
(c)(B) of this subsection, is to be budgeted and repaid to the
lending fund. The schedule shall provide for the repayment in
full of the loan over a term not to exceed five years from the
date the loan is made.
(c) If the interfund loan is a capital loan, provide that the
loan shall bear interest at an annual rate equal to:
(A) The rate of return on moneys invested in the local
government investment pool under ORS 294.805 to 294.895, as
reported under ORS 294.875, immediately prior to the adoption of
the ordinance or resolution authorizing the loan; or
(B) Such other rate as the governing body may determine.
(d) If the interfund loan is an operating loan, provide that
the money loaned shall be budgeted and repaid to the fund from
which the money was borrowed by the end of the ensuing year { +
or ensuing budget period + }.
(3) The payment of any operating loans not repaid in the year
{ + or budget period + } in which the operating loan was made
shall be budgeted as a requirement in the ensuing year { + or
ensuing budget period + }.
Enrolled House Bill 2022 (HB 2022-A) Page 17
(4) It shall be lawful to commingle cash balances of funds so
long as all such fund moneys are segregated in the budget and
accounting records.
(5) As used in this section:
(a) 'Capital loan' means any interfund loan, or portion
thereof, made for the purpose of financing the design,
acquisition, construction, installation or improvement of real or
personal property and not for the purpose of paying operating
expenses.
(b) 'Operating loan' means any interfund loan, or portion
thereof, that is not a capital loan, including any interfund
loan, or portion thereof, made for the purpose of paying
operating expenses.
SECTION 24. ORS 294.470 is amended to read:
294.470. (1) A municipal corporation may establish by ordinance
or resolution one or more internal service funds. The ordinance
or resolution creating the fund shall set forth in detail the
following:
(a) The appropriation or appropriations to be charged in order
to provide the initial money for financing the fund;
(b) The object or purpose of the fund;
(c) The methods for controlling of expenditures and encumbering
of such funds; and
(d) The sources from which the fund shall be replenished.
(2) No person shall expend or encumber or authorize expenditure
or encumbrance from funds created in accordance with subsection
(1) of this section in excess of the balance of that fund, or for
a purpose for which there is no appropriation or source of
reimbursement authorized at that time.
(3) The anticipated expenditure for the ensuing year { + or
ensuing budget period + } from an internal service fund created
in accordance with subsection (1) of this section shall be
budgeted as any other fund in accordance with ORS 294.305 to
294.565, appropriations shall be made for each internal service
fund in accordance with ORS 294.435 and expenditures from the
internal service fund shall be regulated thereby.
(4) Notwithstanding the limitations in ORS 294.305 to 294.565
applicable to increasing the appropriations of funds during the
current { - fiscal - } year { + or current budget period + },
the governing body may increase appropriations of the internal
service funds by ordinance or resolution.
(5) The charges for services shall be computed to cover all
costs for such services and the charges shall be periodically
revised to eliminate any element of profit or loss.
SECTION 25. ORS 294.480 is amended to read:
294.480. (1) Notwithstanding requirements as to estimates of
and limitation on expenditures, the governing body of any
municipal corporation may make a supplemental budget for the
fiscal year { + or budget period + } for which the regular
budget has been prepared under one or more of the following
circumstances:
(a) An occurrence or condition which had not been ascertained
at the time of the preparation of a budget for the current
year { + or current budget period + } which requires a change in
financial planning.
(b) A pressing necessity which was not foreseen at the time of
the preparation of the budget for the current year { + or
current budget period + } which requires prompt action.
(c) Funds were made available by another unit of federal, state
or local government and the availability of such funds could not
Enrolled House Bill 2022 (HB 2022-A) Page 18
have been ascertained at the time of the preparation of the
budget for the current year { + or current budget period + }.
(d) A request for services or facilities, the cost of which
shall be supplied by a private individual, corporation or company
or by another governmental unit and the amount of the request
could not have been accurately ascertained at the time of the
preparation of the budget for the current year { + or current
budget period + }.
(e) Proceeds from the involuntary destruction, involuntary
conversion, or sale of property has necessitated the immediate
purchase, construction or acquisition of different facilities in
order to carry on the governmental operation.
(f) Ad valorem property taxes are received during the fiscal
year { + or budget period + } in an amount sufficiently greater
than the amount estimated to be collected that the difference
will significantly affect the level of government operations to
be funded by those taxes as provided in the budget for the
current year { + or current budget period + }.
(2) A supplemental budget shall not extend beyond the end of
the fiscal year { + or budget period + } during which it is
submitted.
(3) When the estimated expenditures contained in a supplemental
budget for a fiscal year { + or budget period + } differ by less
than 10 percent of any one of the individual funds contained in
the regular budget for that fiscal year { + or budget period + }
that is being changed in the supplemental budget, the governing
body of the municipal corporation may adopt the supplemental
budget at a regular meeting of the governing body. Notice of such
regular meeting, including sufficient detail on revenues and
expenditures, shall be published by one or more of the methods
permitted under ORS 294.311 { - (32) - } { + (35) + } not
less than five days prior to the meeting. Following such meeting,
the governing body shall make additional appropriations and may
thereafter make additional expenditures as authorized by such
appropriations.
(4) When the estimated expenditures contained in a supplemental
budget for a fiscal year { + or budget period + } differ by 10
percent or more of any one of the individual funds contained in
the regular budget for that fiscal year { + or budget period + }
that is being changed in the supplemental budget, the
supplemental budget, or a summary thereof, shall be published,
or, in counties having a tax supervising and conservation
commission, shall be submitted to the tax supervising and
conservation commission within the county. The governing body,
or, where applicable, the tax supervising and conservation
commission shall then hold a public hearing on the supplemental
budget. Publication of the budget and notice of the hearing shall
be given in the manner provided in ORS 294.421. Following such
hearing, the governing body shall make additional appropriations
and may thereafter make additional expenditures as authorized by
such appropriations.
(5) The making of a supplemental budget shall not authorize the
governing body to increase the municipal corporation's total ad
valorem property taxes above the amount or rate published with
the { - annual - } budget and certified to the assessor under
ORS 310.060 for the fiscal year { + or for each fiscal year of
the budget period + } to which the supplemental budget applies.
SECTION 26. ORS 294.483 is amended to read:
294.483. (1) A municipal corporation that has outstanding
limited general obligation bonds that were issued pursuant to ORS
Enrolled House Bill 2022 (HB 2022-A) Page 19
287.049 shall { - on an annual basis - } budget and
appropriate, subject to any applicable covenants or agreements
which limit payment of certain obligations to particular sources
of funds, amounts sufficient to pay, in each succeeding
{ - annual - } { + fiscal year or budget + } period, debt
service on such bonds. However, this section does not require the
municipal corporation to adopt a supplemental budget to pay the
principal and interest coming due on limited tax bonds, as
defined in ORS 288.150, in the fiscal year { + or budget
period + } in which such bonds are authorized and issued.
(2) A municipal corporation shall not be required to adopt a
supplemental budget to:
(a) Expend during the current year { + or current budget
period + } proceeds of the sale of the following bonds or other
obligations:
(A) Bonds that are issued under the Uniform Revenue Bond Act,
ORS 288.805 to 288.945, for which the 60-day period described in
ORS 288.815 (2) ended after the preparation of the budget for the
current year { + or current budget period + }.
(B) Bonds or other obligations that were approved by the
electors during the current year { + or current budget
period + }.
(C) Bonds or other obligations issued during the current year
{ + or current budget period + } to refund previously issued
bonds or obligations.
(b) Expend during the current year { + or current budget
period + } other funds to pay the principal and interest coming
due on bonds or other obligations listed in paragraph (a) of this
subsection.
(c) Expend assessments or other revenues to redeem bonds or
other obligations that are payable from such assessments or other
revenues, when such assessments or other revenues are received as
a result of prepayments or other unforeseen circumstances.
SECTION 27. ORS 294.555 is amended to read:
294.555. (1) On or before July 15 of each year, or upon such
other date as the Department of Revenue shall designate, each
civil subdivision in the state that does not levy an ad valorem
property tax { - and - } { + , + } that is subject to the
Local Budget Law { + and that prepares an annual budget + }
shall file with the Department of Revenue a copy of the
resolution adopting the budget and of the resolution making
appropriations.
{ + (2) On or before July 15 of the first fiscal year of the
budget period, or upon such other date as the Department of
Revenue shall designate, each civil subdivision in the state that
does not levy an ad valorem property tax, that is subject to the
Local Budget Law and that prepares a biennial budget shall file
with the Department of Revenue a copy of the resolution adopting
the budget and of the resolution making appropriations. + }
{ - (2) - } { + (3) + } Each municipal corporation subject
to the Local Budget Law that certifies an ad valorem property tax
shall file with the county assessor as provided in ORS 310.060
the following:
(a) Two copies each of the notice required to be filed under
ORS 310.060 and the categorization certification.
(b) Two copies of a statement confirming the ad valorem
property taxes approved by the budget committee.
(c) Two copies each of the following ordinances or resolutions:
to adopt the budget; to make the appropriations; to itemize and
categorize the taxes; and to certify the taxes.
Enrolled House Bill 2022 (HB 2022-A) Page 20
{ - (3) - } { + (4) + } As soon as received, the county
assessor shall forward one copy of each of the documents listed
in subsection (2) of this section to the Department of Revenue.
{ - (4) - } { + (5) + } Each civil subdivision and
municipal corporation that is subject to the Local Budget Law
shall retain a true copy of its budget { - until the end of the
fiscal year that is two years following the end of the fiscal
year for which the budget was prepared. - } { + for, if an
annual budget is prepared, two years following the end of the
fiscal year or, if a biennial budget is prepared, two budget
periods following the budget period for which the biennial budget
was prepared. + } During this period, the civil subdivision or
municipal corporation shall send a copy of the budget to the
county assessor, Department of Revenue or the Division of Audits
if requested to do so by one of those entities.
SECTION 28. ORS 294.635 is amended to read:
294.635. (1) In each county which attains a population of
500,000 or more inhabitants, according to the latest federal
decennial census, or which has established a commission under ORS
294.710, the levying boards of all municipal corporations shall
{ - annually, and - } on or before May 15 of each
{ + fiscal + } year { + or on or before May 15 of the first
fiscal year of a budget period + }, submit their detailed
estimates of the { - annual - } budget deemed necessary to be
expended by the municipal corporations, respectively, for all
purposes for the next ensuing fiscal year { + or ensuing budget
period + }. The tax supervising and conservation commission may,
if a good and sufficient reason exists therefor and if
application is made to the commission in writing, grant any
municipal corporation such extension of time for filing its
budget as may seem to the commission just and reasonable.
(2) The budget estimates required by this section to be filed
with the commission shall be in writing and shall be certified to
as correct and shall be so prepared and arranged as to show in
plain and succinct language each particular item of proposed
expenditure. There shall be attached to each budget, and made a
part thereof, the levying board's estimate of the probable
receipts of the municipal corporation from all other sources than
direct tax levy and bond issues during the fiscal years for which
the budget has been prepared. The budget estimates shall show in
parallel columns the actual expenditures for the two fiscal years
next preceding the current year, the estimated expenditures for
the current year and the estimated expenditures for the next
ensuing fiscal year.
SECTION 29. ORS 294.645 is amended to read:
294.645. (1) After the hearings have been held the commission
shall carefully consider the proposed budgets and shall by
majority vote of the members of the commission certify in writing
to the levying board of any municipal corporation, on or before
June 25 of each { + fiscal + } year, { + or on or before June
25 of the first fiscal year of a budget period, + } any
objections which the commission may have to the adoption of the
budget, or any item therein, or any recommendations which the
commission may desire to make regarding the budget. If the
commission does not desire to make any recommendations or
objections, it shall certify that fact to the levying board. The
responsibility of the commission shall be advisory only.
(2) Certification of a budget for a municipal corporation
holding its own hearing shall be made in the same manner as
required by subsection (1) of this section, except that any
Enrolled House Bill 2022 (HB 2022-A) Page 21
recommendations or objections shall be certified to the levying
board prior to the date of the hearing.
SECTION 30. ORS 294.990 is amended to read:
294.990. (1) Any officer willfully violating any of the
provisions of ORS 51.340 shall, upon conviction thereof, be fined
not more than $25 for each offense, to be paid into the county
treasury for the benefit of the common schools.
(2) Unless the time is extended by the commission, any
municipal corporation subject to ORS 294.605 to 294.705 which
fails, neglects or refuses to submit its annual { + or
biennial + } budget to the commission on or before May 15 of each
{ + fiscal + } year, { + or on or before May 15 of the first
fiscal year of a budget period, + } as provided in ORS 294.635,
shall forfeit to the use of the tax supervising and conservation
commission fund $50 for each day of such failure, refusal or
neglect.
(3) Any levying board subject to ORS 294.605 to 294.705 which
fails, neglects or refuses to attend any budget hearing at the
time and place fixed by the commission, or to be represented by
counsel thereat, shall forfeit to the use of the tax supervising
and conservation commission fund $25 for each member of such
levying board responsible for such failure, neglect or refusal.
SECTION 31. ORS 310.060 is amended to read:
310.060. (1) Not later than July 15 of each year, every city,
school district or other public corporation authorized to levy or
impose a tax on property shall file a written notice certifying
the ad valorem property tax rate or the estimated amount of ad
valorem property taxes to be imposed by the taxing district and
any other taxes on property imposed by the taxing district on
property subject to ad valorem property taxation that are
required or authorized to be placed on the assessment and tax
roll for the current fiscal year. The notice shall be accompanied
by a copy of a lawfully adopted ordinance or resolution that
categorizes the tax, fee, charge, assessment or toll as subject
to or not subject to the limits of section 11b, Article XI of the
Oregon Constitution, identified by the categories set forth in
ORS 310.150.
(2) For any ad valorem property taxes levied by the taxing
district, the notice shall state as separate items:
(a) The taxing district's rate of ad valorem property taxation
that is within the permanent rate limitation imposed by section
11 (3), Article XI of the Oregon Constitution, or within the
statutory rate limit determined in ORS 310.236 (4)(b) or 310.237,
if applicable;
(b) The total rate or amount of the taxing district's local
option taxes imposed pursuant to ORS 280.040 to 280.145 that have
a term of five years or less and that are not for capital
projects;
(c) The total amount of the taxing district's local option
taxes that are for capital projects;
(d) The total amount levied for the payment of bonded
indebtedness or interest thereon that is not subject to
limitation under section 11 (11) or section 11b, Article XI of
the Oregon Constitution; and
(e) The total amount levied that is subject to section 11b,
Article XI of the Oregon Constitution, but that is not subject to
the permanent ad valorem property tax rate limit described in
section 11 (3), Article XI of the Oregon Constitution, because
the amount levied is to be used to repay:
Enrolled House Bill 2022 (HB 2022-A) Page 22
(A) Principal and interest for any bond issued before December
5, 1996, and secured by a pledge or explicit commitment of ad
valorem property taxes or a covenant to levy or collect ad
valorem property taxes;
(B) Principal and interest for any other formal, written
borrowing of moneys executed before December 5, 1996, for which
ad valorem property tax revenues have been pledged or explicitly
committed, or that are secured by a covenant to levy or collect
ad valorem property taxes;
(C) Principal and interest for any bond issued to refund an
obligation described in subparagraph (A) or (B) of this
paragraph; or
(D) Local government pension and disability plan obligations
that commit ad valorem property taxes.
(3)(a) The notice shall also list each rate or amount subject
to the limits of section 11b, Article XI of the Oregon
Constitution, identified by the categories set forth in ORS
310.150.
(b) If an item described in subsection (2) of this section is
allocable to more than one category described in ORS 310.150, the
notice shall list separately the portion of each item allocable
to each category.
(4) For any other taxes on property imposed by the taxing
district, the notice shall state:
(a) The total amount of money to be raised by each other tax,
in the aggregate or on a property by property basis, as
appropriate.
(b) Each amount that is subject to the limits of section 11b,
Article XI of the Oregon Constitution, identified by the
categories set forth in ORS 310.150.
(5) For any district authorized by law to place any other fees,
charges, assessments or tolls on the assessment and tax roll, the
notice shall state the total amount of money to be raised on a
property by property basis.
(6) In addition to the notice required under subsection (1) of
this section, any taxing district that is subject to the Local
Budget Law shall also provide the documents required by ORS
294.555 { - (2) - } { + (3) + }.
(7) Not later than July 15 of each year, the taxing district
shall give the notice and documents described in this section to
the assessor of the county in which the principal office of the
taxing district is located and, if the taxing district is located
in more than one county, to the assessor of each county in which
any part of the taxing district is located. Not later than
September 30 of each year, the taxing district shall provide a
complete copy of the budget document to the clerk of the county
in which the principal office of the taxing district is located
and, if the taxing district is located in more than one county,
to the clerk of each county in which any part of the taxing
district is located.
(8) The Department of Revenue shall prescribe the form of
notice required by this section. All amounts shall be stated in
dollars and cents or ad valorem property tax rates in dollars and
cents per thousand dollars of assessed value, as required by law.
If the notice is given to the assessor and the clerk of more than
one county, a copy of each other such notice given shall
accompany every notice given. Upon the giving of the notice,
every school district located in a county to which ORS 334.350 to
334.400 apply immediately shall supply a copy thereof to the
school superintendent of the county wherein the district is
Enrolled House Bill 2022 (HB 2022-A) Page 23
located. Immediately upon receipt thereof every such notice and
copy shall be filed in the office of the receiving officer.
(9) For good and sufficient reason, the county assessor may
extend the time for the giving of the notice or correcting an
erroneous certification for the current year up to but not later
than October 1 as the county assessor considers reasonable.
SECTION 32. ORS 294.336 is amended to read:
294.336. (1) Except as provided in ORS 294.341, the governing
body of each municipal corporation shall establish a budget
committee in accordance with the provisions of this section.
(2) The budget committee shall consist of the members of the
governing body and a number, equal to the number of members of
the governing body, of electors of the municipal corporation
appointed by the governing body; if there are electors fewer than
the number required, the governing body and the electors who are
willing to serve shall be the budget committee; and if there are
no electors willing to serve, the governing body shall be the
budget committee.
(3) The members of the budget committee shall receive no
compensation for their services as members of such committee.
(4) Appointive members of the budget committee { - shall - }
{ + may + } not be officers, agents or employees of the
municipal corporation.
(5) { - The - } Appointive members of { - the - }
{ + a + } budget committee { + that prepares an annual budget
+ }shall be appointed for terms of three years. The terms shall
be staggered so that { + , as near as practicable, + } one-third
{ - or approximately one-third - } of the terms of the
appointive members end each year.
{ + (6) Appointive members of a budget committee that
prepares a biennial budget shall be appointed for terms of four
years. The terms shall be staggered so that, as near as
practicable, one-fourth of the terms of the appointive members
end each year. + }
{ - (6) - } { + (7) + } If any appointive member is unable
to serve the term for which the member was appointed, or an
appointive member resigns prior to completion of the term for
which the member was appointed, the governing body of the
municipal corporation shall fill the vacancy by appointment for
the unexpired term.
{ - (7) - } { + (8) + } If the number of members of the
governing body is reduced or increased by law or charter
amendment, the governing body of the municipal corporation shall
reduce or increase the number of appointive members of the budget
committee so that the number thereof shall be equal to but not
greater than the number of members of the governing body. To
effect a reduction, the governing body of the municipal
corporation may remove such number of appointive members as may
be necessary. The removals shall be made so that the number
remaining will be divided into three { + , if the terms of the
appointive members are governed by subsection (5) of this
section, or four, if the terms of the appointive members are
governed by subsection (6) of this section, + }equal or
approximately equal groups as to terms. In case of an increase,
additional appointive members shall be appointed for such terms
so that they, together with the members previously appointed,
will be divided into three { + or four, as appropriate under
this section, + } equal or approximately equal groups as to
terms.
Enrolled House Bill 2022 (HB 2022-A) Page 24
{ - (8) - } { + (9) + } The budget committee shall at its
first meeting after its appointment elect a presiding officer
from among its members.
SECTION 33. { + Section 2 of this 2001 Act and the amendments
to statutes by sections 3 to 32 of this 2001 Act apply to budgets
and budget documents prepared for fiscal years or budget periods
commencing on or after July 1, 2002. + }
----------
Passed by House March 2, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate April 25, 2001
...........................................................
President of Senate
Enrolled House Bill 2022 (HB 2022-A) Page 25
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2022 (HB 2022-A) Page 26