75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
SA to SB 916
LC 3122/SB 916-3
SENATE AMENDMENTS TO
SENATE BILL 916
By COMMITTEE ON EDUCATION AND GENERAL GOVERNMENT
April 29
On page 1 of the printed bill, delete lines 3 and 4 and insert
'294.361, 294.406, 294.421, 294.425, 294.450, 294.460 and
294.480.'.
Delete lines 6 through 30 and delete pages 2 through 13 and
insert:
' { + SECTION 1. + } { + Section 2 of this 2009 Act is added
to and made a part of ORS 294.305 to 294.565. + }
' { + SECTION 2. + } { + County budgets must contain a
summary of revenues and expenditures for major programs funded in
part by state resources. The summary must include, at a minimum,
functions related to assessment and taxation, community
corrections, district attorneys, juvenile corrections and
probation, public health, mental health and chemical dependency,
veterans' services, roads and economic development. The summary
must provide the total expenses for each program and identify the
revenues used to fund the program from general county resources,
state grants, federal grants, video lottery resources and other
resources as applicable. The summary must include the revenues
and expenditures in the adopted budget, revenues and expenditures
in the prior year's adopted budget, and actual revenue and
expenditure data from the two previous years. + }
' { + SECTION 3. + } ORS 203.115 is amended to read:
' 203.115. A county governing body shall not change the amount
of a fee it has set pursuant to statute within { - one year - }
{ + six months + } after setting that fee.
' { + SECTION 4. + } 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. 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.
' (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.
' (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.
' (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.
' (11) 'Current year' means the fiscal year in progress.
' (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.
' (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.
' (15) 'Ensuing year' means the fiscal year following the
current year.
' (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.
' (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.
' (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 fund's assets and
estimated revenues for the period over its liabilities, reserves
and appropriations for the period.
' { + (19) 'General county resources' means resources from
property taxes, state and federal shared revenue, beginning
balances available for expenditure and interest not required to
be allocated to specific programs or activities. + }
' { - (19) - } { + (20) + } '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.
' { - (20) - } { + (21) + } 'Grant' means a donation or
contribution of cash to a governmental unit by a third party.
' { - (21) - } { + (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).
' { - (22) - } { + (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.
' { - (23) - } { + (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.
' { - (24)(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.
' { - (25) - } { + (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. 'Municipal
corporation' includes an intergovernmental entity or council of
governments that proposes to impose or imposes ad valorem
property taxes.
' { - (26) - } { + (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.
' { - (27) - } { + (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,
clerical services, professional services, property services and
travel, as distinguished from the results obtained from
expenditures.
' { - (28) - } { + (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.
' { - (29) - } { + (30) + } 'Operating taxes' has the
meaning given that term in ORS 310.055.
' { - (30) - } { + (31) + } 'Organizational unit' means any
administrative subdivision of a municipal corporation, especially
one charged with carrying on one or more functions or activities.
' { - (31) - } { + (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.
' { - (32) - } { + (33) + } 'Program' means a group of
related activities aimed at accomplishing a major service or
function for which the municipality is responsible.
' { - (33) - } { + (34) + } 'Public utility' means those
public utility operations authorized by ORS chapter 225.
' { - (34) - } { + (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 { + and
to each post office box and rural route number belonging to a
resident within the jurisdictional boundaries of the municipal
corporation + }.
' (c) Hand delivery to each street address within the
jurisdictional boundaries of the municipal corporation.
' { - (35) - } { + (36) + } 'Receipts' means cash received
unless otherwise qualified.
' { - (36) - } { + (37) + } 'Reserve for encumbrances' means
a reserve representing the segregation of a portion of a fund
balance to provide for unliquidated encumbrances.
' { - (37) - } { + (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.
' { - (38) - } { + (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 5. + } 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:
' (a) 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;
' (b) Taxes;
' (c) Fees;
' (d) Licenses;
' (e) Fines;
' (f) Interest on deposits or on securities of any kind;
' (g) Endowments;
' (h) Annuities;
' (i) Penalties;
' (j) Sales of property or other assets or products of any
kind;
' (k) Delinquent taxes;
' (L) Judgments;
' (m) Damages;
' (n) Rent;
' (o) Premiums on sales of bonds;
' (p) Reimbursement for services, road or other work performed
for others;
' (q) Transfer or reverter of unused balances of any kind;
' (r) Reimbursement for services provided other funds;
' (s) Rebates;
' (t) Refunds of moneys heretofore paid on any account;
' (u) Apportionment, grant, contribution, payment or allocation
from the federal { + government, + } { - or - } state
government or any { - unit of government - } { + other
governmental units + };
' (v) Taxes for the ensuing year or ensuing budget period;
' (w) Interfund revenue transfers; and
' (x) Revenues from any and all other sources of whatsoever
kind or character.
' (3) Budget resources do 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 6. + } 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 { - (34) - } { + (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 7. + } 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
{ - (34) - } { + (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 { - (34) - } { + (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 { - (34) - } { +
(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
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 8. + } 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 { - (34) - }
{ + (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 { + and postal mailing + } 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 9. + } 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.
' (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 - } { + between funds + } 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) - } { + (4) + } 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) - } { + (5) + } 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 10. + } 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 - } { +
10 + } 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.
' (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 11. + } 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 - } { + could + }
not { + reasonably be + } 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 have been { + reasonably + } 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.
' (g) A local option tax described in ORS 294.437 is certified
for extension on the assessment and tax roll under ORS 310.060
for the fiscal year or budget period in which the local option
tax measure is approved by voters.
' (2) A supplemental budget may 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 - }
{ + the + } regular meeting, including sufficient detail on
revenues and expenditures, shall be published by one or more of
the methods permitted under ORS 294.311 { - (34) - }
{ + (35) + } not less than five days prior to the meeting.
Following { - such - } { + the + } 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) Except as provided in ORS 294.437, the making of a
supplemental budget does not authorize the governing body to
increase the municipal corporation's total ad valorem property
taxes above the amount or rate published with the regular budget
and certified to the assessor under ORS 310.060 in conjunction
with the regular budget for the fiscal year or for each fiscal
year of the budget period to which the supplemental budget
applies.'.
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