Chapter 294 — County and Municipal Financial Administration

 

2011 EDITION

 

MUNICIPAL FINANCIAL ADMINISTRATION

 

PUBLIC FINANCIAL ADMINISTRATION

 

GENERAL PROVISIONS

 

294.004     Definitions

 

COUNTY AND MUNICIPAL FINANCIAL ADMINISTRATION

 

(Generally)

 

294.005     Definitions for ORS 294.005 to 294.025

 

294.010     Surrender of warrants upon payment

 

294.015     Payment on lost, stolen or destroyed warrants upon affidavit of owner, payee or representative

 

294.025     Effect of wrongful payment; liability of officer

 

294.027     Provisions relating to warrants and payment of claims

 

294.028     Payment of warrants by depository

 

294.029     Provisions of ORS 294.027 and 294.028 not mandatory

 

294.030     Deductions for bonds from compensation of municipal and other employees; purchasing bonds in advance

 

294.033     Investment of deferred compensation funds

 

294.035     Investment of surplus funds of political subdivisions; approved investments

 

294.040     Restriction on investments under ORS 294.035

 

294.046     List of approved securities for investment under ORS 294.035; distribution

 

294.047     Loss of principal on liquidation of investments

 

294.048     Borrowing money when premature withdrawal or liquidation of certain investments would cause loss

 

294.050     County borrowing money from county general road fund

 

294.052     Definitions; investment by municipality of proceeds of bonds

 

294.053     Investment by county in master warrants of county

 

294.055     Use by counties of moneys received from federal government under the Mineral Leasing Act

 

294.060     Apportionment of moneys received by counties from federal forest reserves to road and school funds

 

294.065     Use by counties of moneys received from federal government under the federal Flood Control Act

 

294.070     Expenditure of Taylor Grazing Act funds; advisory board

 

294.080     Disposition of interest earned on funds held by county treasurer

 

294.085     Examining books and papers of county officers

 

294.090     County orders and vouchers to be numbered to correspond to warrants drawn

 

294.095     Action or proceeding with respect to budget or levy; fiscal year with respect to which taken

 

294.100     Public official expending money in excess of amount or for different purpose than provided by law unlawful; civil liability

 

294.120     Use of facsimile signatures

 

294.125     Investment of funds authorized by order of governing body; limitations

 

294.135     Investment maturity dates

 

294.145     Prohibited conduct for custodial officer

 

294.155     Annual audit report; monthly report

 

294.160     Opportunity for public comment on new fee or fee increase

 

COUNTY ASSESSMENT FUNDING ASSISTANCE PROGRAM

 

294.175     Definitions; county expenditures for assessment; determination of adequacy; certification of adequacy; appeal of denial of certification; effect of certification

 

294.178     Assessment grant to county; determination of grant amount

 

294.181     Alternative method for certification

 

294.184     County Assessment Function Funding Assistance Account; sources; purpose

 

294.187     County Assessment and Taxation Fund; sources; purpose

 

PUBLICATION OF FINANCIAL REPORTS

 

294.250     Publication by county governing body of schedule of expenditures and statement of proceedings; manner of publication; notice

 

LOCAL BUDGET LAW

 

294.305     Sections constituting Local Budget Law

 

294.311     Definitions for ORS 294.305 to 294.565

 

294.316     Application

 

294.321     Purposes

 

294.323     Budget period

 

294.331     Budget officer

 

294.333     Basis of accounting used by municipal corporation; change of basis

 

294.338     Compliance with Local Budget Law required prior to expenditure or tax certification; exceptions

 

294.343     Internal service funds

 

294.346     Reserve fund established without vote; review of need for reserve fund; unexpended balances; application to system development charges

 

294.353     Elimination of unnecessary fund; disposition of balance

 

294.358     Expenditure and resource estimate sheets; made part of budget document

 

294.361     Contents of estimate of budget resources

 

294.368     Determination of estimated tax revenues

 

294.373     Reserving receipts from revenue-producing property or facility; deposit in special fund

 

294.378     Certain interest to be included in budget; method

 

294.383     Inclusions in accrued revenues of school, education service, community college and community college service districts using accrual basis of accounting; State School Fund grant calculations

 

294.388     Estimates and reconciliation of expenditures and other requirements; form and contents

 

294.393     Preparation of estimates by school, education service and community college districts and by municipal corporations operating public utility or hospital

 

294.398     Estimate of unappropriated ending fund balance for each fund

 

294.403     Budget message

 

294.408     Time of making budget message and document

 

294.414     Budget committee

 

294.423     Governing body of certain municipal corporations to be budget committee; exception

 

294.426     Budget committee meeting; notice; receipt of budget message and document; provision of copies of document

 

294.428     Budget committee hearings; approval of budget document

 

294.431     Submission of budget document to tax supervising and conservation commission before date of public hearing

 

294.433     Format for notices and summaries

 

294.438     Publication of notice of meeting, financial summary and budget summary; requirements of financial summary and notice of meeting; rules

 

294.441     Requirements for financial summaries of school, education service and community college districts

 

294.444     County budget summary of revenues and expenditures funded in part by state resources

 

294.448     Manner of publication; alternative requirements in certain cases

 

294.451     Sufficiency of publication of budget documents; notice to governing body and assessor of publication error

 

294.453     Hearing by governing body on budget document as approved by budget committee; alternative procedure in certain cases

 

294.456     Governing body to adopt budget, make appropriations, declare and categorize property tax amount or rate; amendment of budget estimates, appropriations and tax amounts or rates limited; requirements for appropriations and tax amounts or rates

 

294.458     Filing copy of budget and certain documents with county assessor and Department of Revenue; records

 

294.461     Tax certification contrary to law voidable by Oregon Tax Court; appeal procedure

 

294.463     Transfers of appropriations within fund or between funds

 

294.466     Appropriation of pass-through revenues

 

294.468     Loans from one fund to another; commingling cash balances of funds

 

294.471     Supplemental budget in certain cases; no increase in property taxes permitted

 

294.473     Procedure when supplemental budget changes estimated expenditures by more than 10 percent

 

294.476     Local option tax approved after adoption of budget; supplemental budget

 

294.478     School or community college district expending federal or state funds in emergency

 

294.481     Authorization to receive grants or borrow or expend moneys to respond to public emergency

 

294.490     Department of Revenue not to interfere with fiscal policy of municipal corporation

 

294.495     Department of Revenue to construe Local Budget Law; rules

 

294.500     Declaratory ruling by Department of Revenue as to its rules; rules

 

294.505     Division of Audits to issue notification of budgetary irregularities; Department of Revenue to advise municipal corporation of correct procedures

 

294.510     Order for revision of budgetary procedures; enforcement

 

294.515     Appeal by municipal corporation from Department of Revenue order

 

294.520     Priority of appeals under Local Budget Law

 

294.565     Failure to file copy of required budget, reports or other documents; effect

 

TAX SUPERVISING AND CONSERVATION COMMISSION

 

294.605     Definitions for ORS 294.605 to 294.705

 

294.608     Populous counties; establishment of tax supervising and conservation commission or submission of financial summary

 

294.610     Tax supervising and conservation commission; members; appointment; qualifications; term; removal; filling vacancies

 

294.615     Oath of commissioner

 

294.620     Office of commission; employment and compensation of assistants

 

294.625     Jurisdiction of commission

 

294.630     Tax supervising and conservation commission account

 

294.632     Commission calculation and report of costs; municipal corporation reimbursement of commission costs

 

294.635     Submission of budget estimates by levying boards

 

294.640     Hearing on budget

 

294.645     Consideration of budget by commission; certifying objections or recommendations to levying board; procedure where municipality holds hearing in place of commission

 

294.650     Striking unauthorized items from budget; reducing total amount to within limits permitted by law and Constitution

 

294.655     Hearing on special tax levies and bond issues proposed for elector approval

 

294.660     Compiling information as to indebtedness; including in annual report

 

294.665     Levying board to submit audit report or financial statements annually

 

294.670     Commission may inquire into management, books and systems; rules

 

294.675     Calling joint meetings of levying boards

 

294.680     Certifying excessive or unauthorized expenditures to district attorney; action by district attorney

 

294.685     Annual report by commission

 

294.690     Records and files of commission open to public inspection

 

294.695     Attorney General as legal advisor and counsel to commission

 

294.700     Proceedings to collect penalties

 

294.705     Tax supervising and conservation commission fund

 

294.710     Procedures for establishing commission; annual appropriations

 

LOCAL GOVERNMENT EMPLOYER BENEFIT TRUST FUND

 

294.725     Definitions for ORS 294.725 to 294.755

 

294.730     Fund created; State Treasurer as custodian; use of moneys; distribution of earnings

 

294.735     Payments to fund by political subdivisions; benefit cost rate, account reserve ratio and percentage rate determinations and redeterminations; effect of negative balance; refunds; extended plans of additional payments

 

294.740     Refund of account balances; payment of deficits; erroneous benefit payments

 

294.745     Analysis of fund receipts and expenditures; report to Legislative Assembly

 

294.750     Experience and liability of successor political subdivisions; unpaid assessment

 

294.755     Payment on quarterly basis; remedies for collection

 

LOCAL GOVERNMENT INVESTMENT POOL

 

294.805     Definitions for ORS 294.805 to 294.895

 

294.810     Local governments authorized to place limited funds in pool

 

294.815     Period of investments; withdrawal of funds

 

294.820     Establishment of investment pools by intergovernmental agreement; conditions; powers

 

294.825     State Treasurer as investment officer; bond; employment of personnel; rules

 

294.831     Investment objective; limit on maturity dates

 

294.835     Standard of care; investment in certain stocks prohibited

 

294.840     Investment policies; review; separate policies for individual public bodies

 

294.845     Investment officer to invest, reinvest pool funds

 

294.847     Prohibited conduct for investment officer

 

294.850     Contracts with persons to perform investment functions; compensation; bond

 

294.855     Legal opinions; investment counseling services; mortgage services

 

294.860     Custody of investment documents; collection of income; distribution to local governments; calculation and allocation of profit and loss; defaulted payments of principal and interest, collection, compromise

 

294.865     Monthly deductions from income received for payment of expenses

 

294.870     Separate accounts for local governments; reports on investment changes and monthly financial statements required

 

294.875     Monthly report of investments of pool funds; distribution

 

294.880     Program examination and audit; report; distribution

 

294.882     Merger or subsequent separation of local government investment pool and state investment fund; preconditions

 

294.885     Oregon Short Term Fund Board; members; appointment; term; vacancies

 

294.890     Board members serve without compensation; selection of chairperson

 

294.895     Board duties, generally

 

COUNCILS OF GOVERNMENTS

 

294.900     “Council of governments” defined

 

294.905     Budget committee; membership; term; vacancies; officers; meetings to be public

 

294.910     Estimates of expenditures; organization and format; matters to be included

 

294.915     Notice of budget committee meeting; public availability of documents

 

294.920     Hearing on budget document

 

294.925     Supplemental budget; conditions; term; publication

 

294.930     Authority of Department of Revenue; budget records maintained by council of governments

 

MISCELLANEOUS

 

294.950     County revenue sharing with cities

 

294.960     Collection and disposition of amounts due counties

 

PENALTIES

 

294.990     Penalties

 

GENERAL PROVISIONS

 

      294.004 Definitions. For the purposes of this chapter, unless the context requires otherwise:

      (1) “Local government” means any county, municipality, political subdivision or school district.

      (2) “Custodial officer” means the officer having custody of the funds of any county, municipality, political subdivision or school district.

      (3) “Deferred compensation plan” means a plan, established by any employer that is a county, municipality, political subdivision or school district, that has as its purposes the deferral of compensation to employees of such employer and the deferral of income taxation on such deferred compensation.

      (4) “Deferred employee compensation” means funds under an agreement providing for payment at a future date by a municipal corporation for services currently rendered by an eligible employee in fixed or variable amounts for life or for a guaranteed number of years after retirement or termination of employment.

      (5) “Nationally recognized statistical rating organization” has the meaning given that term in Rule 15c3-1 under the Securities Exchange Act of 1934, as amended.

      (6) “Surplus funds” means all funds that are not pension funds and that are not required for immediate expenditure. [1975 c.359 §2; 1977 c.470 §1; subsection (4) enacted as 1977 c.102 §1; 1995 c.245 §1; 1997 c.179 §25]

 

COUNTY AND MUNICIPAL FINANCIAL ADMINISTRATION

 

(Generally)

 

      294.005 Definitions for ORS 294.005 to 294.025. As used in ORS 294.005 to 294.025, unless the context requires otherwise:

      (1) “Warrant” means a warrant issued by a subdivision.

      (2) “Subdivision” means any county, municipal corporation, quasi-municipal corporation, or civil or political subdivision in this state.

 

      294.010 Surrender of warrants upon payment. Subject to ORS 294.015, no warrant issued by a subdivision shall be paid unless such warrant is surrendered and delivered to the officer charged with the payment thereof, contemporaneously with payment or prior thereto.

 

      294.015 Payment on lost, stolen or destroyed warrants upon affidavit of owner, payee or representative. A warrant may be paid without surrender or delivery thereof if the one claiming to be the lawful owner of the warrant:

      (1) Satisfies the officer by whom payment is to be made that the warrant has been lost, stolen or destroyed prior to the owner having received value therefor or having negotiated the warrant; and

      (2) Furnishes to the issuing officer a written statement signed by such person specifically alleging that the owner is the lawful owner, payee or legal representative of the lawful owner or payee of the original instrument giving the date of issue, the number, amount, for what services or claim the original instrument was issued and that the original instrument has been lost, destroyed or stolen, and has not been paid. However, if the lawful owner, payee or legal representative is (a) a bank or national bank, (b) the federal government or (c) this state or any board, department, commission or subdivision of this state, or any officer thereof in the officer’s official capacity, a certificate may be furnished in lieu of an affidavit or affirmation. The issuing officer may also, in the officer’s discretion, require the bank or national bank to furnish a satisfactory indemnity agreement executed by the bank or national bank. [Amended by 1979 c.763 §6]

 

      294.020 [Repealed by 1979 c.763 §7]

 

      294.025 Effect of wrongful payment; liability of officer. When any warrant is paid, other than as authorized by ORS 294.005 to 294.025, such wrongful payment does not relieve the political body issuing the warrant from liability to the true and lawful owner thereof. However, the officer or person making such wrongful payment and the sureties on the official bond of the officer or person, if any, shall be responsible to the political body represented by the officer or person in making such payment, for the full amount of the loss occasioned thereby. [Amended by 2005 c.22 §222]

 

      294.027 Provisions relating to warrants and payment of claims. (1) In addition to any other provisions of law for the issuance and payment of warrants of any municipal or quasi-municipal corporation or civil subdivision of this state other than school districts, the governing body thereof may by resolution authorize such practices with respect to the form, issuance, delivery, indorsement and payment of warrants as it shall deem convenient, efficient and in the public interest, conforming substantially to those specified in subsection (1) or (2) of this section or in ORS 294.028.

      (2) Such governing body may authorize the use of check-warrant forms, to be drawn by its appropriate warrant issuing officer or officers upon the custodian of its funds, so prepared that such custodian may, by subscribing a direction to the depository of such funds to pay the same to the order of the payee, convert the instrument to a check or, by subscribing an indorsement that such warrant is not paid for want of funds, convert the same to an interest-bearing warrant and such governing body may direct that such check-warrants shall not be delivered to the payees therein named until such direction or indorsement shall have been subscribed by the custodian of its funds.

      (3) Such governing body may provide that when funds are available for the payment of approved claims, the approval of claims for payment shall, without the issuance of any warrant, be authority to the custodian of its funds to pay such claims by check. [1953 c.664 §1]

 

      294.028 Payment of warrants by depository. When authorized by the governing body, any custodian of funds of any municipal or quasi-municipal corporation or civil subdivision of this state other than a school district may direct the depository of such funds to pay any warrant drawn upon such custodian upon presentment of such warrant to such depository, to the same extent and with the same effect as though such warrant were a check drawn upon such depository by such custodian. Such direction shall be in writing and shall identify by name and signature the warrant issuing officer or officers and such depository may rely upon such direction and identification in the payment of such warrants. [1953 c.664 §2]

 

      294.029 Provisions of ORS 294.027 and 294.028 not mandatory. Nothing contained in ORS 294.027 or 294.028 shall be deemed to require any municipal or quasi-municipal corporation or civil subdivision of this state or any custodian of public funds to exercise any of the powers conferred by such sections. [1953 c.664 §3]

 

      294.030 Deductions for bonds from compensation of municipal and other employees; purchasing bonds in advance. (1) The governing body of a municipal corporation, quasi-municipal corporation or civil subdivision of the state may, with the approval of the relevant employees of the municipal corporation, quasi-municipal corporation or civil subdivision, make deductions from their salaries and wages for the purpose of purchasing for them United States War Savings Bonds or other federal obligations.

      (2) The governing body shall take proper precautions for the depositing, securing and disbursing of the sums so deducted and for the delivering of all bonds or other obligations purchased.

      (3) Balances to the credit of the accounts in which the sums so deducted are deposited may be used for the purchase in advance, from the federal government or from any federal reserve bank or other authorized federal agency, of war savings bonds or other obligations of the federal government, either in blank or in inscribed form, in convenient denominations to meet the requirements of the purchasers thereof.

 

      294.033 Investment of deferred compensation funds. Funds set aside by any local government pursuant to a deferred compensation plan may be invested in any investment enumerated in ORS 294.035 and are not subject to the collateral requirements of ORS chapter 295. [1977 c.470 §3; 1997 c.179 §26; 2005 c.91 §1]

 

      294.035 Investment of surplus funds of political subdivisions; approved investments. (1) Subject to ORS 294.040 and 294.135 to 294.155, the custodial officer may invest any sinking fund, bond fund or surplus funds in the custody of the custodial officer in the bank accounts, classes of securities at current market prices, insurance contracts and other investments listed in this section, but only after obtaining from the governing body of the county, municipality, political subdivision or school district a written order that has been entered in the minutes or journal of the governing body.

      (2) This section does not:

      (a) Limit the authority of the custodial officer to invest surplus funds in other investments when the investment is specifically authorized by another statute.

      (b) Apply to a sinking fund or a bond fund established in connection with conduit revenue bonds issued by a county, municipality, political subdivision or school district for private business entities or nonprofit corporations.

      (3) Investments authorized by this section are:

      (a) Lawfully issued general obligations of the United States, the agencies and instrumentalities of the United States or enterprises sponsored by the United States Government and obligations whose payment is guaranteed by the United States, the agencies and instrumentalities of the United States or enterprises sponsored by the United States Government.

      (b) Lawfully issued debt obligations of the agencies and instrumentalities of the State of Oregon and its political subdivisions that have a long-term rating of A or an equivalent rating or better or are rated on the settlement date in the highest category for short-term municipal debt by a nationally recognized statistical rating organization.

      (c) Lawfully issued debt obligations of the States of California, Idaho and Washington and political subdivisions of those states if the obligations have a long-term rating of AA or an equivalent rating or better or are rated on the settlement date in the highest category for short-term municipal debt by a nationally recognized statistical rating organization.

      (d) Time deposit open accounts, certificates of deposit and savings accounts in insured institutions as defined in ORS 706.008, in credit unions as defined in ORS 723.006 or in federal credit unions, if the institution or credit union maintains a head office or a branch in this state.

      (e) Share accounts and savings accounts in credit unions in the name of, or for the benefit of, a member of the credit union pursuant to a plan of deferred compensation.

      (f) Fixed or variable life insurance or annuity contracts as defined by ORS 731.170 and guaranteed investment contracts issued by life insurance companies authorized to do business in this state.

      (g) Trusts in which deferred compensation funds from other public employers are pooled, if:

      (A) The purpose is to establish a deferred compensation plan;

      (B) The trust is a public instrumentality of such public employers and described in section (2)(b) of the Investment Company Act of 1940, 15 U.S.C. 80a-2(b), as amended, in effect on September 20, 1985, or the trust is a common trust fund described in ORS 709.170;

      (C) Under the terms of the plan the net income from or gain or loss due to fluctuation in value of the underlying assets of the trust, or other change in such assets, is reflected in an equal increase or decrease in the amount distributable to the employee or the beneficiary thereof and, therefore, does not ultimately result in a net increase or decrease in the worth of the public employer or the state; and

      (D) The fidelity of the trustees and others with access to such assets, other than a trust company, as defined in ORS 706.008, is insured by a surety bond that is satisfactory to the public employer, issued by a company authorized to do a surety business in this state and in an amount that is not less than 10 percent of the value of such assets.

      (h)(A) Banker’s acceptances, if the banker’s acceptances are:

      (i) Guaranteed by, and carried on the books of, a qualified financial institution;

      (ii) Eligible for discount by the Federal Reserve System; and

      (iii) Issued by a qualified financial institution whose short-term letter of credit rating is rated in the highest category by one or more nationally recognized statistical rating organizations.

      (B) For the purposes of this paragraph, “qualified financial institution” means:

      (i) A financial institution that is located and licensed to do banking business in the State of Oregon; or

      (ii) A financial institution that is wholly owned by a financial holding company or a bank holding company that owns a financial institution that is located and licensed to do banking business in the State of Oregon.

      (C) A custodial officer shall not permit more than 25 percent of the moneys of a local government that are available for investment, as determined on the settlement date, to be invested in banker’s acceptances of any qualified financial institution.

      (i)(A) Corporate indebtedness subject to a valid registration statement on file with the Securities and Exchange Commission or issued under the authority of section 3(a)(2) or 3(a)(3) of the Securities Act of 1933, as amended. Corporate indebtedness described in this paragraph does not include banker’s acceptances. The corporate indebtedness must be issued by a commercial, industrial or utility business enterprise, or by or on behalf of a financial institution, including a holding company owning a majority interest in a qualified financial institution.

      (B) Corporate indebtedness must be rated on the settlement date P-1 or Aa or better by Moody’s Investors Service or A-1 or AA or better by Standard & Poor’s Corporation or equivalent rating by any nationally recognized statistical rating organization.

      (C) Notwithstanding subparagraph (B) of this paragraph, the corporate indebtedness must be rated on the settlement date P-2 or A or better by Moody’s Investors Service or A-2 or A or better by Standard & Poor’s Corporation or equivalent rating by any nationally recognized statistical rating organization when the corporate indebtedness is:

      (i) Issued by a business enterprise that has its headquarters in Oregon, employs more than 50 percent of its permanent workforce in Oregon or has more than 50 percent of its tangible assets in Oregon; or

      (ii) Issued by a holding company owning not less than a majority interest in a qualified financial institution, as defined in paragraph (h) of this subsection, located and licensed to do banking business in Oregon or by a holding company owning not less than a majority interest in a business enterprise described in sub-subparagraph (i) of this subparagraph.

      (D) A custodial officer may not permit more than 35 percent of the moneys of a local government that are available for investment, as determined on the settlement date, to be invested in corporate indebtedness, and may not permit more than five percent of the moneys of a local government that are available for investment to be invested in corporate indebtedness of any single corporate entity and its affiliates or subsidiaries.

      (j) Repurchase agreements whereby the custodial officer purchases securities from a financial institution or securities dealer subject to an agreement by the seller to repurchase the securities. The repurchase agreement must be in writing and executed in advance of the initial purchase of the securities that are the subject of the repurchase agreement. Only securities described in paragraph (a) of this subsection may be used in conjunction with a repurchase agreement and such securities shall have a maturity of not longer than three years. The price paid by the custodial officer for such securities may not exceed amounts or percentages prescribed by written policy of the Oregon Investment Council or the Oregon Short Term Fund Board created by ORS 294.885.

      (k) Shares of stock of any company, association or corporation, including but not limited to shares of a mutual fund, but only if the moneys being invested are funds set aside pursuant to a local government deferred compensation plan and are held in trust for the exclusive benefit of participants and their beneficiaries. [Amended by 1957 c.53 §1; 1957 c.689 §1; 1965 c.404 §1; 1973 c.157 §1; 1973 c.288 §1; 1974 c.36 §9; 1975 c.359 §3; 1977 c.300 §1; 1981 c.804 §84; 1981 c.880 §13; 1983 c.456 §2; 1985 c.256 §2; 1985 c.440 §1; 1985 c.690 §2; 1987 c.493 §1; 1991 c.459 §379; 1993 c.59 §1; 1993 c.452 §1; 1993 c.721 §1; 1995 c.79 §102; 1995 c.245 §2; 1997 c.249 §91; 1997 c.631 §446; 1999 c.601 §1; 2001 c.377 §43; 2003 c.405 §1; 2005 c.443 §§13,13a; 2009 c.821 §25]

 

      294.040 Restriction on investments under ORS 294.035. The bonds listed in ORS 294.035 (3)(a) to (c) may be purchased only if there has been no default in payment of either the principal of or the interest on the obligations of the issuing county, port, school district or city, for a period of five years next preceding the date of the investment. [Amended by 1995 c.245 §3; 2005 c.443 §21]

 

      294.045 [Amended by 1959 c.224 §1; 1973 c.157 §2; repealed by 1975 c.359 §7]

 

      294.046 List of approved securities for investment under ORS 294.035; distribution. The State Treasurer shall prepare and keep current a list of agencies and instrumentalities of the United States with available obligations that any county, municipality, political subdivision or school district may invest in under ORS 294.035 (3)(a) and 294.040. The list shall be distributed, upon request, to any county, municipality, political subdivision or school district. [1973 c.157 §3; 1975 c.359 §4; 1995 c.245 §4; 2005 c.443 §22]

 

      294.047 Loss of principal on liquidation of investments. Whenever the custodial officer is forced to liquidate investments made pursuant to ORS 294.035 and 294.040 to meet current cash demands and such liquidation results in a loss of invested principal because the securities were liquidated prior to maturity under market conditions unfavorable to such liquidation, the loss shall be charged against current or future investment earnings and the custodial officer shall not be personally liable to make good such loss. [1959 c.612 §1; 1963 c.465 §1; 1975 c.359 §5]

 

      294.048 Borrowing money when premature withdrawal or liquidation of certain investments would cause loss. When funds invested under ORS 294.035 (3)(d) are required to meet current cash demands and when withdrawal or liquidation of such investments at the time would cause a loss because the investment would be withdrawn or liquidated prior to maturity, the custodial officer may, after receiving the approval of the governing body, borrow funds on short-term promissory notes that shall be secured by pledging or assigning the investments held under ORS 294.035 (3)(d). The notes shall mature in not more than six months after date of issue. If a lender demands physical possession of the certificates of deposit or other evidence of an investment pledged or assigned under this section, the custodial officer shall deliver the certificate or other evidence to the lender. [1967 c.411 §1; 1975 c.359 §6; 1995 c.245 §5; 2005 c.443 §23]

 

      294.050 County borrowing money from county general road fund. The county court or board of county commissioners may borrow money from the general road fund of the county to supplement depleted election accounts within the general fund of the county if there is no money within the emergency fund of the county to supplement the depleted accounts within the general fund. The amount so borrowed shall be returned to the general road fund during the following fiscal year from the first funds available in the general fund, or from the emergency fund. [Amended by 1959 c.664 §29; 1969 c.616 §1]

 

      294.052 Definitions; investment by municipality of proceeds of bonds. (1) As used in this section:

      (a) “Bond” has the meaning given that term in ORS 287A.001.

      (b) “Municipality” means a unit of local government within Oregon including, but not limited to, cities, counties, school districts, special districts, public corporations and intergovernmental corporations organized under the authority of ORS 190.010.

      (2) Notwithstanding ORS 294.135 or 294.145 or any other law or charter provision, a municipality may invest proceeds of bonds and amounts held in a bond payment reserve or proceeds fund or account in float agreements, debt service deposit agreements, forward investment agreements, guaranteed investment contracts or other investment agreements if the agreements or contracts:

      (a) Produce a guaranteed rate of return;

      (b) Are fully collateralized by direct obligations of, or obligations guaranteed by, the United States; and

      (c) Require that the collateral be held by the municipality, an agent of the municipality or a third-party safekeeping agent. [1999 c.559 §21; 2001 c.537 §7; 2007 c.783 §117]

 

      294.053 Investment by county in master warrants of county. A county treasurer may invest any sinking fund, bond fund or surplus of funds in the custody of the county treasurer in master warrants of that county issued under ORS 287A.482 to 287A.488. [1959 c.208 §1]

 

      294.055 Use by counties of moneys received from federal government under the Mineral Leasing Act. All funds received from the United States Government under the Mineral Leasing Act and Acts amendatory thereof and distributed to counties pursuant to ORS 293.565 shall be used for the support of public schools or for the construction and maintenance of public roads in such counties.

 

      294.060 Apportionment of moneys received by counties from federal forest reserves to road and school funds. (1) The moneys received by each county under ORS 293.560 shall be divided 75 percent to the road fund and 25 percent to the school fund of the county and, subject to subsection (2) of this section, the moneys shall be expended as other moneys in those funds are expended.

      (2) The moneys apportioned to the county road fund may be applied in payment of any outstanding road bonds or may be placed in any county road bond sinking fund for the purpose of being so applied.

      (3) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county east of the summit of the Cascade Mountains with a population of less than 9,000 and more than 6,500, according to the 1990 federal decennial census, moneys from the road fund in excess of $2 million may be transferred to the school fund when the amount of money credited to the road fund under subsection (1) of this section exceeds the amount needed for county roads, as determined by the board of county commissioners. Any amount received by a school district from the school fund of the county that is in excess of the 25 percent required under subsection (1) of this section may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

      (4) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county east of the summit of the Cascade Mountains with a population of less than 58,000 and more than 55,000, according to the 1990 federal decennial census, if the moneys credited to the road fund under subsection (1) of this section exceed the amount needed for county roads, as determined by the county governing body, the portion of such moneys in excess of an amount specified by the county governing body may be transferred to the school fund of the county or may be transferred directly to the school districts of the county in accordance with procedures established by the county governing body. The county governing body may distribute moneys under this subsection among the several school districts without regard to the percentage of the resident average daily membership in each school district. Moneys transferred under this subsection may be transferred upon the condition that any school district receiving a share of such moneys must use the moneys only for a purpose described in ORS 328.205 (1)(a) or (c). Any amount received by a school district from the county under this subsection that is in excess of the 25 percent required under subsection (1) of this section may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

      (5) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county east of the summit of the Cascade Mountains with a population of less than 6,500, according to the 1990 federal decennial census, moneys received by the county under ORS 293.560 may be divided between the road fund and the school fund of the county as specified under an agreement between the county governing body and the education service district board of the county that provides for a different apportionment of those moneys. Any amount received by a school district from the school fund of the county that is in excess of the 25 percent required under subsection (1) of this section may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

      (6) Notwithstanding the division of receipts specified in subsection (1) of this section, in any county west of the summit of the Cascade Mountains with a population of less than 19,500 and more than 6,500, according to the 1990 federal decennial census, moneys from the road fund in excess of $1 million may be transferred to the school fund when the amount of money credited to the road fund under subsection (1) of this section exceeds the amount needed for county roads, as determined by the board of county commissioners. Any amount received by a school district from the school fund of the county that is in excess of the 25 percent required under subsection (1) of this section may not be considered as a receipt that would reduce the district’s apportionments from the State School Fund.

      (7) As used in subsections (3) to (6) of this section, “summit of the Cascade Mountains” has the meaning for that term provided in ORS 477.001. [Amended by 1969 c.327 §1; 1971 c.539 §1; 1977 c.776 §1; 1981 c.342 §1; 1987 c.315 §1; 1989 c.579 §1; 1991 c.309 §1; 2003 c.226 §21]

 

      Note: Section 4, chapter 894, Oregon Laws 2007, provides:

      Sec. 4. (1) Notwithstanding ORS 294.060 and 368.705, moneys described in ORS 294.060 (1) that are received by Douglas County and deposited into its road fund may be expended for the patrolling of Douglas County roads by Douglas County law enforcement officials.

      (2) Notwithstanding ORS 294.060 and 368.705, moneys described in ORS 294.060 (1) that are received by Lane County and deposited into its road fund may be expended for the patrolling of Lane County roads by Lane County law enforcement officials.

      (3) This section is repealed on January 2, 2016.

      (4) This section applies to moneys described in subsections (1) and (2) of this section that are received before, on or after September 27, 2007. [2007 c.894 §4; 2011 c.556 §1]

 

      294.065 Use by counties of moneys received from federal government under the federal Flood Control Act. All moneys received from the United States Government under the federal Flood Control Act, and Acts amendatory thereof and supplemental thereto, and distributed to counties pursuant to ORS 293.570, shall be used for the benefit of the public schools and public roads of the counties receiving the funds.

 

      294.070 Expenditure of Taylor Grazing Act funds; advisory board. (1) Except for moneys required to be expended through the county general fund as required by subsection (5) of this section, all moneys paid to a county under ORS 293.575 shall be deposited with the county treasurer and credited to a special fund designated the Range Improvement Fund of Grazing District No. _____. The county treasurer as ex officio district treasurer shall disburse the moneys in the Range Improvement Fund only upon the written order of the grazing advisory board.

      (2) Except as provided in subsection (4) of this section, money from grazing fees of grazing districts shall be expended within such district as the grazing advisory board may direct and shall be expended only for range improvements, such as fences, reservoirs, wells, water development, maintenance and other range improvements approved by the grazing advisory board.

      (3) Pending approval by the grazing advisory board of the expenditure of such money, all or any part of it may be invested in United States Government securities. In such case the securities shall be held by the county treasurer in lieu of such money so invested and subject to liquidation and expenditure when recommended by the grazing advisory board.

      (4) In counties receiving funds from grazing districts containing Indian lands ceded to the United States for disposition under public land laws, funds therefrom shall be expended only for the benefit of public schools and public roads of such county.

      (5) In counties in which there are leased lands but no grazing district, such funds shall be expended by the county court through the county general fund.

      (6) As used in this section, “grazing advisory board” means a board appointed by the governing body of any county receiving funds under ORS 293.575 and authorized to expend those funds as provided in this section. [Formerly 606.230; 1969 c.255 §1; 1977 c.115 §1; 1981 c.42 §1; 1991 c.67 §73]

 

      294.080 Disposition of interest earned on funds held by county treasurer. (1) Except as provided in subsections (2) and (3) of this section, the county treasurer shall credit to the general fund of the county all interest received from any investment made from the general cash balance of any funds in the hands of the county treasurer. If the entire investment is made from a specific fund, however, the treasurer shall credit the interest to the fund from which the investment was made.

      (2) The county fiscal officer of a community college district, as defined in ORS 341.005, shall credit to the general fund of the district all interest received from any investment made by funds in the hands of the county fiscal officer. If the entire investment is made from a specific fund, however, the county fiscal officer shall credit the interest to the fund from which the investment was made.

      (3) Interest earned by investment of any moneys received by the county treasurer from any source, which moneys have been designated for a particular municipal corporation as defined in ORS 294.311, shall be credited to the account of the particular municipal corporation and not to any county fund. [1963 c.316 §1; 1971 c.513 §54; 1979 c.762 §8; 1997 c.308 §33]

 

      294.085 Examining books and papers of county officers. (1) Twice each year while sitting for county business, the county court or board of county commissioners shall carefully examine all books and papers relating to the financial affairs of the county offices of county clerk, clerk of the county court, treasurer and sheriff of the county.

      (2) The county clerk and clerk of the county court shall exhibit the numbered orders and vouchers referred to in ORS 294.090, together with the stubs of the warrants, and all other books and papers relating to the financial affairs of the county, for the inspection of the county court or board of county commissioners twice each year during the examination of financial affairs required by subsection (1) of this section. [Amended by 1985 c.565 §49; 2011 c.62 §1]

 

      294.090 County orders and vouchers to be numbered to correspond to warrants drawn. The county clerk and clerk of the county court shall number all orders and vouchers with numbers to correspond with warrants drawn.

 

      294.095 Action or proceeding with respect to budget or levy; fiscal year with respect to which taken. Wherever it is provided by law that any action or proceeding of any county, city, school district or other municipal corporation or body politic shall be taken with respect to a budget or tax levy for the calendar year, or for a fiscal year closing on any day other than June 30, each such action or proceeding shall be taken with respect to the fiscal year commencing on July 1 and closing on June 30.

 

      294.100 Public official expending money in excess of amount or for different purpose than provided by law unlawful; civil liability. (1) It is unlawful for any public official to expend any moneys in excess of the amounts provided by law, or for any other or different purpose than provided by law.

      (2) Any public official who expends any public moneys in excess of the amounts or for any other or different purpose than authorized by law shall be civilly liable for the return of the money by suit of the district attorney of the district in which the offense is committed, or at the suit of any taxpayer of such district, if the expenditure constitutes malfeasance in office or willful or wanton neglect of duty.

      (3) On the demand in writing of 10 taxpayers of any municipal corporation with a population exceeding 100,000 inhabitants, filed with the tax supervising and conservation commission in the county in which the municipal corporation is situated, which demand sets forth that a public official has unlawfully expended public moneys in excess of the amount or for any other or different purpose than provided by law and that the expenditure constitutes malfeasance in office or willful or wanton neglect of duty, the tax supervising and conservation commission shall make an investigation of the facts as to the expenditure. If the tax supervising and conservation commission finds that public moneys have been unlawfully expended and that the expenditure constitutes malfeasance in office or willful or wanton neglect of duty, the commission shall proceed at law in the courts against the public official who has unlawfully expended the moneys for the return of the moneys unlawfully expended to the treasury of the municipal corporation. A right of action hereby is granted to the tax supervising and conservation commission for the purposes of this section.

      (4) This section does not apply to the expenditure of revenues that are allowed to be accrued from a fiscal year to the prior fiscal year under ORS 294.383. [Amended by 2001 c.399 §1; 2002 s.s.4 c.1 §§9,10]

 

      294.105 [Amended by 1963 c.9 §15; 1973 c.315 §1; repealed by 1983 c.537 §7]

 

      294.110 [Repealed by 1953 c.306 §18]

 

      294.115 [1953 c.655 §1; repealed by 1963 c.576 §44]

 

      294.120 Use of facsimile signatures. (1) When authorized to use facsimile signatures by the governing body of any county, city, district organized for public purposes or any other public corporation or political subdivision of the state, any person authorized to sign any check, warrant or other instrument on behalf of the county, city, district, public corporation or political subdivision may, in the discretion of the person, sign the check, warrant or other instrument by facsimile signature affixed by rubber stamp or by any mechanical equipment or device.

      (2) Where the use of facsimile signatures is authorized under this section, the holder or drawee of any check, warrant or other instrument bearing or purporting to bear a facsimile signature shall be under no duty to determine the authority of the person who affixed the facsimile signature to use facsimile signatures. [1955 c.261 §1]

 

      294.125 Investment of funds authorized by order of governing body; limitations. (1) Subject to ORS 294.040 and 294.135 to 294.155, the custodial officer of any county, municipality, school district or other political subdivision of this state may, after having obtained a written order from the governing body of the county, municipality, school district or other political subdivision, which order shall be spread upon the minutes or journal of the governing body, invest any sinking fund, bond fund or surplus funds belonging to that county, municipality, school district or other political subdivision in the bank accounts, classes of securities at current market prices, insurance contracts and other investments described in ORS 294.035. However, notwithstanding any provision of ORS 190.003 to 190.250, except as provided in ORS 294.035:

      (a) No custodial officer of any political subdivision of this state may accept for investment or invest the funds of any other political subdivision of this state; and

      (b) No such political subdivision may tender funds for investment to the custodial officer of any other such political subdivision.

      (2) Subject to ORS 294.040, 294.135 to 294.155 and subsection (1) of this section, the custodial officer of a port organized under ORS chapter 777 or 778 may invest any sinking fund, bond fund or surplus funds belonging to the port in interest-bearing revenue bonds issued by an export trading corporation formed by the port under ORS 777.755 to 777.800. A custodial officer of a port shall not invest in the aggregate more than $3 million in revenue bonds issued by an export trading corporation. [1981 c.880 §5; 1983 c.200 §17; 1995 c.245 §6]

 

      294.135 Investment maturity dates. (1) An investment made by a custodial officer under ORS 294.035 (3)(a) to (f), (h) and (i) or 294.125 may not exceed a maturity of 18 months or the date of anticipated use of the funds by the county, municipality, school district or other political subdivision to which the funds belong, whichever period is shorter. However:

      (a) The custodial officer may make investments having a maturity longer than 18 months when the governing body of the county, municipality, school district or other political subdivision to which the funds belong has adopted a written investment policy that, prior to adoption, was submitted to the Oregon Short Term Fund Board for review and comment to the governing body, that includes guidelines concerning maximum investment maturity dates and that provides by its terms for readoption not less than annually; or

      (b) When the funds in question are being accumulated for an anticipated use that will occur more than 18 months after the funds are invested, then, upon the approval of the governing body of the county, municipality, school district or other political subdivision, the maturity of the investment or investments made with the funds may occur when the funds are expected to be used.

      (2) The maximum term of any repurchase agreement transaction may not exceed 90 days. [1981 c.880 §§6, 8; 1987 c.389 §1; 1989 c.303 §1; 1995 c.245 §7; 2003 c.41 §1; 2005 c.443 §24; 2009 c.821 §30]

 

      294.145 Prohibited conduct for custodial officer. In making investments pursuant to ORS 294.035, the custodial officer may not:

      (1) Make a commitment to invest funds or sell securities more than 14 business days prior to the anticipated date of settlement of the purchase or sale transaction;

      (2) Enter into any agreement to invest funds or sell securities for future delivery for a fee other than interest;

      (3) Lend securities to any person or institution, except:

      (a) On a fully collateralized basis; and

      (b) When the lending is specifically permitted under an investment policy adopted pursuant to ORS 294.135 (1)(a);

      (4) Pay for any securities purchased by the custodial officer until the officer has received sufficient evidence of title to the securities. Evidence of title must be consistent with modern investment, banking and commercial practices and may include physical possession, book entry and automated recordation of such title. However, the custodial officer may instruct one or more custodial agents or banks to accept or release securities as that custodial officer considers advisable to be held in safekeeping for collection of principal and interest or other income; or

      (5) Deliver securities to the purchaser of the securities upon sale prior to receiving payment in full for the securities. However, the custodial officer may deliver the securities to any custodial agent or bank upon instructions to hold the securities pending receipt by the custodial agent or bank of full payment for the securities. [1981 c.880 §7; 1991 c.88 §5; 1995 c.245 §8; 2008 c.18 §1]

 

      294.155 Annual audit report; monthly report. (1) The custodial officer for a local government that holds and invests funds on behalf of another government unit shall at least once a year submit an audited report to that government unit for which funds are invested. An audit report shall be submitted to the local governmental unit or units within 30 days after receipt of the audit report by the custodial officer’s governing body. This subsection shall not apply to municipal corporations or political subdivisions exempt from municipal audits in ORS 297.435.

      (2) The custodial officer shall prepare a report not less than monthly to each county, municipality, school district and other political subdivision the segregated funds of which the custodial officer is then investing, as to changes made in the investments of the funds of that body during the preceding month. If requested by that body, the custodial officer shall furnish to it details on the investment transactions for its fund. The custodial officer shall also provide copies of any investment policy which has been adopted to the custodial officer’s governing body upon request. [1981 c.880 §9; 1995 c.245 §9]

 

      294.160 Opportunity for public comment on new fee or fee increase. (1) The governing body of a city, county or other unit of local government shall provide an opportunity for interested persons to comment on the enactment of any ordinance or resolution prescribing a new fee or a fee increase or an increase in the rate or other manner in which the amount of a fee is determined or calculated.

      (2) Where a local government exercises authority to assume the responsibility for a program delivered by the state, the local government shall provide an opportunity to comment on the difference between the fee amount charged by the state for such service and the proposed local fee for the service. [1995 c.576 §5; 2007 c.71 §90]

 

COUNTY ASSESSMENT FUNDING ASSISTANCE PROGRAM

 

      294.175 Definitions; county expenditures for assessment; determination of adequacy; certification of adequacy; appeal of denial of certification; effect of certification. (1) As used in this section and ORS 294.178 to 294.187:

      (a) “Department” means the Department of Revenue.

      (b) “Expenditures” has the meaning given the term for purposes of ORS 294.305 to 294.520 and may be further defined by rule of the department. “Expenditures” does not include any item or class of items that cannot reasonably be allocated to an organizational unit.

      (c) “Expenditures for assessment and taxation” means expenditures for any of the activities, functions or services required of a county in the assessment, equalization, levy, collection or distribution of property taxes under ORS chapters 305, 306, 307, 308, 308A, 309, 310, 311, 312 and 321. “Expenditures for assessment and taxation” specifically includes expenditures for appraising principal or secondary industrial properties, the responsibility for the making of which has been delegated by the department to a county under ORS 306.126 (3).

      (d) “Grant” has the meaning given the term for purposes of ORS 294.305 to 294.520, and is further described under ORS 294.178.

      (2) On or before May 1 of each year, each county shall file with the department a true copy of its estimates of expenditures for assessment and taxation for the ensuing year as prepared for purposes of ORS 294.388 but in accordance with any rules adopted by the department.

      (3) Upon receipt of the estimate, the department shall review the estimate to determine its adequacy to provide the resources needed to achieve compliance with ORS 308.232 and 308.234, ORS chapter 309 and other laws requiring equality and uniformity in the system of property taxation within the county in order that the same equality and uniformity may be achieved throughout the state.

      (4) If, upon initial review of the estimate, the department determines that the proposed expenditures, or any of them, are not at the level or of the type needed to achieve adequacy, the department shall notify the county governing body. The notice shall contain an explanation of the reasons for the determination and may describe specific items or classifications of expenditure which the department has determined are required, or are not required, in order to achieve adequacy. The notice shall fix the date upon which a conference with the county governing body or representatives of the county governing body shall be held.

      (5)(a) Subject to paragraph (b) of this subsection, if, upon initial review, or upon or after conference held on the date specified in the notice under subsection (4) of this section, or another date or dates convenient to the department and the county governing body, the department determines that the expenditures as initially filed, or that the expenditures as agreed upon at the conference, are at the level and of the type needed to achieve adequacy for that year or over a period of years under a plan presented as described under ORS 294.181, the department shall certify to the county governing body that its estimate of expenditures for assessment and taxation so determined are adequate and that the county will be included in the computation made under ORS 294.178 for the purpose of determining the amount of that county’s quarterly grant. The department shall include in the certification an estimate of the percentage share of the funds available in the County Assessment Function Funding Assistance Account that the county will receive under ORS 294.178 and an estimate of the total amount of the grant that will be forthcoming to the county from that account for the ensuing year on account of the certification.

      (b) The department shall not certify expenditures under this subsection that the department determines are in excess of the expenditures necessary to meet the requirements of subsection (3) of this section.

      (6) Any certification issued under subsection (5) of this section shall be issued as of the June 15 following the filing of the estimate of expenditures under subsection (2) of this section. If, as of June 15, agreement has not been reached between the department and the county governing body upon the estimate, the department shall issue a denial of certification.

      (7) A county may appeal the determination of the department under subsection (5)(b) of this section or the denial of certification issued under subsection (6) of this section to the Director of the Oregon Department of Administrative Services. Appeal shall be filed within 10 days after the date that the denial of certification is issued. The sole issue upon appeal shall be the adequacy of expenditures for assessment and taxation as filed with the department under subsection (2) of this section, and the determination, if any, made by the department under subsection (5)(b) of this section. If the Oregon Department of Administrative Services does not issue an order approving the expenditures before July 1 of the fiscal year for which the expenditures are proposed, the certification for purposes of ORS 294.175 to 294.187 shall be considered denied. [1989 c.796 §2; 1995 c.748 §11; 1997 c.782 §2; 1999 c.314 §88; 2003 c.169 §9]

 

      294.178 Assessment grant to county; determination of grant amount. (1) Before issuing any certificate under ORS 294.175, the Department of Revenue shall estimate the amount available in the County Assessment Function Funding Assistance Account created under ORS 294.184 for distribution as grants to counties for the ensuing fiscal year.

      (2) The estimate shall be used to determine the estimated percent of the moneys available in the County Assessment Function Funding Assistance Account that each county will receive as grants and the total estimated grant that each county will receive for the ensuing fiscal year. The estimates so determined shall serve as the estimates required to be included in any certification issued under ORS 294.175 for that county.

      (3) On or before the 28th day of the month following the close of each fiscal quarter, the department shall pay a percentage of the moneys in the County Assessment Function Funding Assistance Account to each county to which a certificate has been issued under ORS 294.175.

      (4) Except as provided under subsection (5) of this section, the percentage to be paid to each county under subsection (3) of this section shall be the percentage that the expenditures of the county certified by the department to the county governing body under ORS 294.175 bears to the total of all expenditures of all counties certified by the department to counties under ORS 294.175. In determining the expenditures of a county or in determining the total of all expenditures for purposes of this subsection:

      (a) No expenditures shall be included that have not been certified under ORS 294.175.

      (b) No expenditures of any county that did not file an estimate of expenditures under ORS 294.175 shall be included.

      (c) No expenditures of any county for which certification has been denied shall be included.

      (d) No expenditures of any county that does not make its appropriation under ORS 294.456 based upon 100 percent of the expenditures certified shall be included.

      (e) No expenditures of any county that does not certify compliance under ORS 294.181 shall be included.

      (5) If the expenditures of a county are not included for a fiscal quarter on account of subsection (4) of this section, a grant may not be made to that county under subsection (3) of this section for that fiscal quarter. If grant funds are denied to any county under this subsection for any fiscal quarter, the percentage determined under subsection (4) of this section shall be redetermined, excluding from the computation for that fiscal quarter the certified expenditures of the county for which grant funds are denied to the end that all of the funds available in the County Assessment Function Funding Assistance Account at the time of calculating the quarterly distribution may be distributed. [1989 c.796 §3; 1997 c.782 §3; 2003 c.273 §1; 2011 c.83 §5; 2011 c.338 §1]

 

      294.181 Alternative method for certification. (1) If, at a conference held pursuant to notice under ORS 294.175, it becomes apparent that a county will be unable to meet the level of expenditures necessary to achieve adequacy for the tax year for which the filing under ORS 294.175 was made, the Department of Revenue may certify to the county governing body expenditures for assessment and taxation at the level contained in the county’s estimate on file with the department or as adjusted by the conference agreement.

      (2) The department shall not certify expenditures under subsection (1) of this section if the county does not present to the department at the conference a plan to achieve adequacy in assessment and taxation within a number of years specified by the Department of Revenue.

      (3) Any county for which expenditures are certified pursuant to this section shall certify to the department, not less than 15 days prior to the close of the fiscal quarter, that the county is in compliance with the conference agreement and the plan developed at the conference agreement. [1989 c.796 §4]

 

      294.184 County Assessment Function Funding Assistance Account; sources; purpose. (1) There is created under ORS 293.445 a suspense account to be known as the County Assessment Function Funding Assistance Account. The account shall consist of:

      (a) All moneys paid over by the county treasurers as provided under ORS 294.187 (2)(a); and

      (b) All interest earned upon any moneys in the account.

      (2) Prior to each quarterly distribution of the moneys in the account under ORS 294.178, the moneys necessary to pay the following Department of Revenue expenses shall be transferred to a suspense account of the department created under ORS 293.445 and are continuously appropriated to the department for:

      (a) Expenses incurred in carrying out the purposes of ORS 294.175 to 294.184; and

      (b) Appraisal expenses incurred by the department in appraising principal and secondary industrial properties identified under ORS 306.126 and property of centrally assessed companies under ORS 308.505 to 308.665.

      (3) The amount of moneys transferred to the suspense account of the department under subsection (2) of this section each quarter may not exceed 10 percent of the moneys in the account.

      (4) The remainder of the moneys in the account after the transfer made under subsection (2) of this section shall be used for the purpose of making the grant payments to counties as required under ORS 294.178 and are continuously appropriated to the department for that purpose. [1989 c.796 §6; 1999 c.701 §2a; 2001 c.303 §13; 2009 c.18 §3; 2011 c.83 §6]

 

      294.187 County Assessment and Taxation Fund; sources; purpose. (1) There is created in the county treasury of each county a fund to be known as the County Assessment and Taxation Fund. The fund shall consist of:

      (a) Moneys deposited in and credited to the fund under ORS 311.508.

      (b) Moneys deposited in and credited to the fund under ORS 205.323 (4)(b)(C).

      (c) Moneys deposited in and credited to the fund under ORS 205.323 (4)(c).

      (d) Interest earned upon moneys credited to the fund.

      (2) The county treasurer shall pay over the moneys in the fund, determined as of the last day of the fiscal quarter, to the State Treasurer on or before the 10th working day of the month following the last day of the fiscal quarter as follows:

      (a) Moneys collected under subsection (1)(a) and (b) of this section and interest earnings on those moneys must be paid over to the Department of Revenue for deposit in the County Assessment Function Funding Assistance Account created under ORS 294.184.

      (b) Moneys collected under subsection (1)(c) of this section and interest earnings on those moneys must be paid over to the Department of Revenue for deposit in the Housing and Community Services Department accounts for housing-related programs as follows:

      (A) 76 percent of the moneys must be deposited in the General Housing Account created under ORS 458.620;

      (B) 10 percent of the moneys must be deposited in the Emergency Housing Account created under ORS 458.620; and

      (C) 14 percent of the moneys must be deposited in the Home Ownership Assistance Account created under ORS 458.620.

      (3) If the county treasurer fails to pay over moneys, as required under subsection (2) of this section, then any unpaid moneys shall be a debt due and owing by the county to the state and the county shall pay the legal rate of interest thereon from the due date until paid. Payment of interest under this section shall not relieve the county treasurer from any penalty imposed by law for failure to make the payments, and in addition, the county treasurer shall be liable under ORS 311.375 (4)(a) and (b).

      (4) ORS 294.305 to 294.565 do not apply to a fund created under this section. [1989 c.796 §7; 2003 c.273 §2; 2009 c.18 §4; 2011 c.338 §2]

 

      294.205 [Amended by 1963 c.544 §13; repealed by 1971 c.267 §16]

 

      294.210 [Amended by 1963 c.544 §14; repealed by 1971 c.267 §16]

 

      294.215 [Repealed by 1971 c.267 §16]

 

      294.220 [Repealed by 1971 c.267 §16]

 

      294.225 [Repealed by 1971 c.267 §16]

 

      294.230 [Amended by 1957 c.153 §1; 1959 c.243 §1; 1963 c.504 §1; 1983 c.310 §17; 1991 c.683 §2; repealed by 1999 c.654 §37]

 

      294.235 [Amended by 1957 c.153 §2; repealed by 1999 c.654 §37]

 

      294.240 [Amended by 1957 c.153 §3; repealed by 1999 c.654 §37]

 

      294.245 [Amended by 1957 c.153 §4; repealed by 1999 c.654 §37]

 

PUBLICATION OF FINANCIAL REPORTS

 

      294.250 Publication by county governing body of schedule of expenditures and statement of proceedings; manner of publication; notice. (1) The county governing body of each county shall cause to be made out and published at the expense of the county by the last day of each month a schedule of those expenditures of the county which singly exceed $500 for the previous month. The schedule shall also include expenditures made to claimants who receive in excess of $500 for the previous month in return for a combination of articles or services which individually cost less than $500. The publication shall also include a concise statement of the proceedings of the governing body in the transaction of county business entered of record during the previous month.

      (2) The schedule of expenditures shall state the names of all claimants, the general purpose of the article or service for which payment is claimed in each bill and the amount ordered paid. The statement of proceedings shall be a true reflection of actions taken at any public meeting of the county governing body.

      (3) Except as otherwise provided in this subsection, the county shall not be required to publish any claim for personal services of regular county officers and employees occupying budgeted positions. Once each year the county shall publish the actual individual gross monthly salary of all regular officers and employees occupying budgeted positions. The county shall identify each budgeted position by the title of the position.

      (4) The publications required by this section shall not apply to any counties having a tax supervising and conservation commission.

      (5) The publications required by this section shall be made by posting on the bulletin board of the county courthouse and at all public libraries in the county. The county shall also publish at least once each month in a newspaper of general circulation in the county a notice stating that the information required to be published under this section is posted and available for review at the county courthouse and public libraries. The notice shall also state that copies of all or part of the posted information may be obtained from the county upon request and upon payment of a fee not exceeding the actual costs incurred by the county in making copies of the posted information. [Amended by 1963 c.360 §1; 1979 c.651 §1; 1987 c.435 §1; 1991 c.285 §1; 2011 c.172 §1]

 

      294.255 [Repealed by 1991 c.285 §2]

 

      294.260 [Repealed by 1991 c.285 §2]

 

LOCAL BUDGET LAW

 

      294.305 Sections constituting Local Budget Law. ORS 294.305 to 294.565 shall be known as the Local Budget Law.

 

      294.310 [Amended by 1959 c.262 §1; repealed by 1963 c.576 §44]

 

      294.311 Definitions for ORS 294.305 to 294.565. 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 personnel 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.

      (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.

      (21) “Grant” means a donation or contribution of cash to a governmental unit by a third party.

      (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).

      (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.

      (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.

      (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.

      (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.

      (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.

      (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.

      (29) “Object classification” means a grouping of expenditures on the basis of goods or services purchased, including, but not limited to, personnel services, materials, supplies and equipment.

      (30) “Operating taxes” has the meaning given that term in ORS 310.055.

      (31) “Organizational unit” means any administrative subdivision of a municipal corporation, especially one charged with carrying on one or more functions or activities.

      (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.

      (33) “Program” means a group of related activities aimed at accomplishing a major service or function for which the municipality is responsible.

      (34) “Public utility” means those public utility operations authorized by ORS chapter 225.

      (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.

      (36) “Receipts” means cash received unless otherwise qualified.

      (37) “Reserve for encumbrances” means a reserve representing the segregation of a portion of a fund balance to provide for unliquidated encumbrances.

      (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.

      (39) “Special revenue fund” means a fund properly authorized and used to finance particular activities from the receipts of specific taxes or other revenues. [1963 c.576 §3; 1971 c.513 §55; 1975 c.319 §2; 1977 c.102 §4; 1977 c.305 §1; 1979 c.686 §1; 1997 c.308 §3; 1997 c.541 §322; 1999 c.632 §1; 2001 c.104 §102; 2001 c.135 §3; 2003 c.235 §1; 2009 c.477 §4; 2011 c.473 §27]

 

      294.315 [Repealed by 1963 c.576 §44]

 

      294.316 Application. The provisions of ORS 294.305 to 294.565 do not apply to the following municipal corporations and entities:

      (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 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;

      (12) Diking districts organized under ORS chapter 551;

      (13) Health districts organized under ORS 440.315 to 440.410; and

      (14) Intergovernmental entities created under ORS 190.010, including councils of governments described in ORS 294.900 to 294.930, except that an intergovernmental entity or a council of governments that proposes to impose ad valorem property taxes for the ensuing year or budget period is subject to ORS 294.305 to 294.565 for the budget prepared for that year or period. [1963 c.576 §35; 1965 c.451 §1; 1979 c.621 §8a; 1979 c.686 §9; 1981 c.918 §5; 1983 c.200 §18; 1985 c.361 §1; 1999 c.632 §2; 2001 c.135 §4; 2001 c.251 §3; 2003 c.235 §2]

 

      294.320 [Repealed by 1963 c.576 §44]

 

      294.321 Purposes. The purposes of ORS 294.305 to 294.565 are:

      (1) To establish standard procedures for the preparation, presentation, administration and appraisal of budgets of municipal corporations;

      (2) To provide for a brief description of the programs of a municipal corporation and the fiscal policy which is to accomplish these programs;

      (3) To provide for estimation of revenues, expenditures and proposed taxes;

      (4) To provide specific methods for obtaining public views in the preparation of fiscal policy;

      (5) To provide for the control of revenues and expenditures for the promotion of efficiency and economy in the expenditure of public funds; and

      (6) To enable the public, taxpayers and investors to be apprised of the financial policies and administration of the municipal corporation in which they are interested. [1963 c.576 §2; 1997 c.308 §4; 1997 c.541 §323]

 

      294.323 Budget period. (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. [2001 c.135 §2]

 

      Note: 294.323 was added to and made a part of 294.305 to 294.565 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      294.325 [Amended by 1961 c.397 §1; repealed by 1963 c.576 §44]

 

      294.326 [1963 c.576 §4; 1965 c.451 §2; 1977 c.102 §2; 1979 c.310 §1; 1987 c.280 §1; 1991 c.902 §110; 1995 c.333 §8; 1997 c.308 §5; 1997 c.541 §324; 1999 c.632 §3; 2001 c.135 §5; 2003 c.195 §25; 2005 c.443 §14; 2007 c.783 §118; 2011 c.473 §1; renumbered 294.338 in 2011]

 

      294.330 [Repealed by 1963 c.576 §44]

 

      294.331 Budget officer. The governing body of each municipal corporation shall, unless otherwise provided by county or city charter, designate one person to serve as budget officer. The budget officer, or the person or department designated by charter and acting as budget officer, shall prepare or supervise the preparation of the budget document. The budget officer shall act under the direction of the executive officer of the municipal corporation, or where no executive officer exists, under the direction of the governing body. [1963 c.576 §5]

 

      294.333 Basis of accounting used by municipal corporation; change of basis. (1) A municipal corporation shall record its revenues and expenditures, on a fund by fund basis, using the cash basis, the modified accrual basis or the accrual basis of accounting, at the discretion of the municipal corporation.

      (2) The basis of accounting used by a municipal corporation must be used in the current year or period and in each succeeding year or period until the basis is changed in a subsequent budget.

      (3) A change in a municipal corporation’s basis of accounting must be published as required under ORS 294.438. [Formerly 294.445]

 

      294.335 [Repealed by 1963 c.576 §44]

 

      294.336 [1963 c.576 §6; 1973 c.61 §1; 1979 c.310 §2; 1997 c.308 §6; 2001 c.135 §32; renumbered 294.414 in 2011]

 

      294.338 Compliance with Local Budget Law required prior to expenditure or tax certification; exceptions. (1) A municipal corporation may not expend money or 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) Subsection (1) of this section does not apply to the expenditure 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. A municipal corporation may not make an expenditure under this subsection unless the governing body of the municipal corporation enacts appropriation ordinances or resolutions authorizing the expenditure.

      (3) Subsection (1) of this section does not apply:

      (a) To the extent that maintenance, repair or self-insurance reserves authorized by ORS 294.373 or nontax funds are available or may be made available; and

      (b) If the governing body of a municipal corporation:

      (A) Adopts an ordinance or resolution to appropriate excess expenditures for a specific purpose or purposes; and

      (B)(i) Declares the existence of an occurrence or condition that could not have been foreseen at the time of the preparation of the budget for the current year or current budget period;

      (ii) Could not have foreseen a pressing necessity for the expenditure at the time of the preparation of the budget for the current year or current budget period; or

      (iii) Receives a request for services or facilities, the cost of which is 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 in order to provide the services for which the governing body of the municipal corporation was responsible.

      (4) Subsection (1) of this section does not apply to the expenditure during the current year or current budget period of the proceeds of the sale of the following bonds, as defined in ORS 287A.001, or to the expenditure during the current year or current budget period of other funds to pay debt service on those bonds:

      (a) Bonds that are issued under ORS 287A.150 and for which the referral period described in ORS 287A.150 ended after the preparation of the budget of the current year or current budget period;

      (b) Bonds that were approved by the electors during the current year or current budget period; or

      (c) Bonds issued during the current year or current budget period to refund previously issued bonds or obligations.

      (5) Subsection (1) of this section does not apply to:

      (a) Expenditures of funds received from the sale of conduit revenue bonds or other borrowings issued for private business entities or nonprofit corporations by public bodies, as defined in ORS 287A.001, or the State of Oregon or to pay debt service on the bonds;

      (b) Expenditures of funds that have been irrevocably placed in escrow for the purpose of defeasing and paying bonds;

      (c) Expenditures of assessments or other revenues to redeem bonds that are payable from the assessments or other revenues, when the assessments or other revenues are received as a result of prepayments or other unforeseen circumstances; or

      (d) Expenditures of funds that are held as debt service reserves for bonds if the expenditures are made to:

      (A) Pay debt service on the bonds;

      (B) Redeem the bonds; or

      (C) Fund an escrow or trust account to defease or pay the bonds.

      (6) Subsection (1) of this section does 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 the improvements is payable by owners of benefited property.

      (7) Subsection (1) of this section does not apply to the expenditure of funds accumulated to pay deferred employee compensation.

      (8) Subsection (1) of this section does not apply to refunds or the interest on refunds granted by counties under ORS 311.806.

      (9) Subsection (1) of this section does not apply to refunds received by a municipal corporation when purchased items are returned after an expenditure has been made. A municipal corporation may not make an expenditure under this subsection unless the governing body of the municipal corporation enacts appropriate appropriation ordinances or resolutions authorizing the expenditure.

      (10) Subsection (1) of this section does 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 does not apply to the municipal corporation during the fiscal year immediately following the fiscal year in which it was formed. [Formerly 294.326]

 

      294.340 [Repealed by 1963 c.576 §44]

 

      294.341 [1963 c.576 §7; 1997 c.308 §7; 2005 c.417 §1; 2007 c.670 §1; renumbered 294.423 in 2011]

 

      294.343 Internal service funds. (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 294.456 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 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. [Formerly 294.470]

 

      294.345 [Amended by 1953 c.715 §2; 1955 c.250 §1; 1957 c.673 §3; repealed by 1963 c.576 §44]

 

      294.346 Reserve fund established without vote; review of need for reserve fund; unexpended balances; application to system development charges. (1) Any municipal corporation, by ordinance or resolution of its governing body, may establish one or more reserve funds to hold moneys to be accumulated and expended for the purposes specified in ORS 280.050, without submitting the question of establishing the reserve fund to a vote of the electors. The municipal corporation may cause to be credited to any reserve fund all or any portion of the revenues derived from taxes levied under ORS 280.060 and any other taxes, charges or revenues as the governing body may determine. The municipal corporation may also limit the crediting of such taxes, charges or revenues to a reserve fund to a specific period of time designated by the governing body.

      (2) Not less frequently than every 10th anniversary of the date upon which a reserve fund is established under subsection (1) of this section, the governing body of the municipal corporation shall review the reserve fund and determine whether the fund will be continued or abolished. When the governing body determines, by resolution, that it is no longer necessary to maintain such a reserve fund:

      (a) Commencing with the next succeeding fiscal year, the political subdivision shall discontinue the levy of any taxes under ORS 280.060 that would otherwise be required to be credited to such fund; and

      (b) There shall be transferred to the general fund or any other fund of the political subdivision that the governing body determines is appropriate:

      (A) Any unexpended balance in the fund to be abolished that is not required to be held for subsequent expenditure for the purposes for which the fund was established; and

      (B) Any subsequent receipts from tax levies that are otherwise required to be credited to such fund, together with any penalties and interest thereon.

      (3) This section does not apply to system development charges imposed under ORS 223.297 to 223.314, and no system development charges shall be credited to any reserve fund established under this section. [Formerly 294.525]

 

      294.347 [1953 c.715 §3; repealed by 1963 c.576 §44]

 

      294.348 [1957 c.673 §2; repealed by 1963 c.576 §44]

 

      294.350 [Amended by 1953 c.715 §2; 1957 c.673 §4; repealed by 1963 c.576 §44]

 

      294.351 [1963 c.576 §8; 1965 c.451 §3; 1971 c.516 §1; 1979 c.310 §3; repealed by 1979 c.686 §2 (294.352 enacted in lieu of 294.351)]

 

      294.352 [1979 c.686 §3 (enacted in lieu of 294.351); 2001 c.135 §6; 2011 c.473 §2; renumbered 294.388 in 2011]

 

      294.353 Elimination of unnecessary fund; disposition of balance. Subject to the provisions contained in the charter of any city or county or in any law relating to municipal corporations, when the necessity for maintaining any fund of the municipal corporation has ceased to exist and a balance remains in the fund, the governing body shall so declare by ordinance or other order and upon such declaration such balance shall forthwith be transferred to the general fund of the municipal corporation unless other provisions have been made in the original creation of the fund. [Formerly 294.475]

 

      294.355 [Repealed by 1963 c.576 §44]

 

      294.356 [1963 c.576 §§8a,9; 1971 c.513 §56; 1979 c.686 §4; 1993 c.112 §1; 2011 c.473 §3; renumbered 294.393 in 2011]

 

      294.358 Expenditure and resource estimate sheets; made part of budget document. (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. [Formerly 294.376]

 

      294.360 [Amended by 1957 c.673 §5; 1963 c.576 §22; renumbered 294.416]

 

      294.361 Contents of estimate of budget resources. (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, state government or any 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.

      (e) Amounts deducted from taxes pursuant to ORS 294.632. [1963 c.576 §10; subsection (4) enacted as 1965 c.604 §11; 1969 c.612 §3; 1977 c.102 §3; 1979 c.310 §4; 1997 c.308 §8; 1999 c.632 §4; 1999 c.1051 §268; 2001 c.135 §7; 2005 c.22 §223; 2009 c.477 §5; 2009 c.596 §9]

 

      294.363 [1971 c.516 §10; repealed by 1979 c.686 §10]

 

      294.365 [Amended by 1957 c.310 §2; 1959 c.262 §2; 1961 c.299 §1; 1961 c.678 §1; 1963 c.576 §23; renumbered 294.421]

 

      294.366 [1963 c.576 §12; 2005 c.22 §224; renumbered 294.373 in 2011]

 

      294.368 Determination of estimated tax revenues. (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 (4) of this section, the estimated ad valorem taxes that will be received in the ensuing year or ensuing budget period shall not exceed 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, after boundary changes have been filed in final approved form with the county assessor and the Department of Revenue as provided in ORS 308.225, 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 (7); or

      (B) The municipal corporation’s statutory rate limit on operating taxes, as defined in ORS 310.202 (10).

      (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) Subject to subsection (3) of this section, the municipal corporation’s estimate of the amount required to pay the principal and interest on bonded indebtedness that is not subject to limitation under section 11 (11) or section 11b, Article XI of the Oregon Constitution.

      (e) The municipal corporation’s estimate of the amount required to repay taxing district bond obligations or pension and disability plan obligations described in section 11 (5), Article XI of the Oregon Constitution.

      (3)(a) The estimate described in subsection (2)(d) of this section may include:

      (A) An amount equal to the total of the payments on the principal and interest on bonded indebtedness that are due and payable in the fiscal period following the fiscal period for which the budget is being prepared and before a sufficient amount of property taxes to pay the bonded indebtedness are collected in that fiscal period, pursuant to ORS 294.398.

      (B) Amounts to reimburse the municipal corporation for the payment of principal and interest on exempt bonded indebtedness that the municipal corporation made from other moneys because collections of taxes levied for exempt bonded indebtedness were not sufficient to pay the exempt bonded indebtedness.

      (b) If the bonded indebtedness is a tax credit bond or other bond that bears interest that is includable in gross income under the Internal Revenue Code, as amended and in effect on June 25, 2009, the payments described in paragraph (a) of this subsection may include deposits that the municipal corporation has agreed to make in a sinking fund that is dedicated to pay the bonded indebtedness.

      (4) 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.

      (5)(a) The estimated ad valorem taxes determined in accordance with subsection (2)(a), (b) and (c) of this section, prior to adjustment by subsection (4) of this section, shall be used by the municipal corporation for purposes of complying with the requirements of ORS 310.060 (1).

      (b) The amounts determined under subsection (2)(d) and (e) of this section shall, for purposes of complying with the requirements of ORS 310.060 (1), be increased by an amount equal to the estimated amount of 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); or

      (C) The failure of taxpayers to pay taxes in the year for which they are levied. [Formerly 294.381]

 

      294.370 [Amended by 1961 c.678 §2; repealed by 1963 c.576 §44]

 

      294.371 [1963 c.576 §13; 1965 c.451 §4; 1997 c.308 §9; 2001 c.135 §8; 2011 c.473 §4; renumbered 294.398 in 2011]

 

      294.373 Reserving receipts from revenue-producing property or facility; deposit in special fund. (1) Any port or dock commission may reserve any portion of the receipts from any revenue-producing property or facility. Any city may reserve any portion of the receipts from any public utility operation of such city. Any such port, dock commission or city may reserve any proceeds from the sale of any such property for future maintenance, alteration, repair, equipment, relocation or replacement of such properties or facilities of the general nature and type from which the proceeds or receipts were received or for insurance funds or retirement pension funds, as the governing body may deem necessary or appropriate. However, if money is received from the sale of property that has been purchased with the proceeds from the sale of bonds or utility certificates, the governing body shall first apply the receipts from the sale of such property to the payment of any applicable outstanding bonded indebtedness before allocation of any portion of the receipts to a reserve fund.

      (2) Moneys reserved under subsection (1) of this section shall be placed in a special fund or funds. [Formerly 294.366]

 

      294.375 [Repealed by 1963 c.576 §44]

 

      294.376 [1963 c.576 §14; 2001 c.135 §9; renumbered 294.358 in 2011]

 

      294.378 Certain interest to be included in budget; method. In the exercise of the authority granted by ORS 287A.180, 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. [Formerly 294.443]

 

      294.380 [Amended by 1959 c.262 §3; repealed by 1963 c.576 §44]

 

      294.381 [1963 c.576 §15: 1979 c.762 §1; 1991 c.459 §5; 1997 c.308 §10; 1997 c.541 §328; 1999 c.186 §7; 1999 c.632 §5; 2001 c.135 §10; 2001 c.138 §1; 2003 c.46 §1; 2005 c.443 §31; 2007 c.894 §1; 2009 c.538 §16; renumbered 294.368 in 2011]

 

      294.383 Inclusions in accrued revenues of school, education service, community college and community college service districts using accrual basis of accounting; State School Fund grant calculations. (1) As used in this section, “extended ADMw” means:

      (a) For a school district, the district extended ADMw as calculated under ORS 327.013.

      (b) For an education service district, the sum of the extended ADMw of the school districts located within the territory of the education service district.

      (2) Notwithstanding ORS 294.333, a school district or education service district that uses the accrual basis method of accounting may include as accrued revenues in the budget and financial statement of the school district or education service district, for any fiscal year, an amount from the next fiscal year that is to be received in the next fiscal year. The amount accrued under this section may not be greater than the amount calculated under subsection (3)(b) or (c) of this section multiplied by the extended ADMw of the school district or education service district.

      (3)(a) For each fiscal year, the Department of Education shall calculate the amount available in the State School Fund for grants and distributions to school districts and the amount available for grants and distributions to education service districts under ORS 327.008, 327.013 and 327.019 based on the appropriations and allocations made to the State School Fund for that fiscal year by the Legislative Assembly in regular session. The department may not include in the amount calculated to be available for school districts and education service districts under this paragraph the amounts received by the Youth Corrections Education Program and the Juvenile Detention Education Program under ORS 327.026 from the State School Fund or amounts transferred to the Regional Educational Services Account as provided by ORS 327.009.

      (b) The department shall calculate for school districts an amount equal to (the amount calculated under paragraph (a) of this subsection for school districts ¸ 12) ¸the total statewide extended ADMw of all school districts.

      (c) The department shall calculate for education service districts an amount equal to (the amount calculated under paragraph (a) of this subsection for education service districts ¸ 12) ¸the total statewide extended ADMw of all education service districts.

      (d) The department may adjust the calculations under this subsection based on current data for the factors used to calculate the State School Fund distribution to school districts and education service districts under ORS 327.008, 327.013 and 327.019.

      (e) Notwithstanding paragraph (d) of this subsection, the department may not adjust the calculation under paragraph (a) of this subsection based on changes made to the appropriations or allocations to the State School Fund by the Legislative Assembly in special session or by rule of the Oregon Department of Administrative Services relating to allotting funds.

      (4) Notwithstanding ORS 294.333, a community college district or community college service district that uses the accrual basis method of accounting may include as accrued revenues in the budget and financial statement of the community college district or community college service district, for any fiscal year, an amount from the next fiscal year that is to be received in the next fiscal year. The amount accrued under this section may not be greater than 25 percent of the amount the community college district or community college service district received as a Community College Support Fund grant for the fiscal year for which the revenues are to be accrued. [Formerly 294.447]

 

      Note: 294.383 was added to and made a part of 294.305 to 294.565 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      294.385 [Repealed by 1963 c.576 §44]

 

      294.386 [1963 c.576 §16; 1979 c.686 §5; 1997 c.308 §11; 1997 c.541 §329; 2007 c.783 §119; repealed by 2011 c.473 §31]

 

      294.388 Estimates and reconciliation of expenditures and other requirements; form and contents. (1) Each municipal corporation shall prepare estimates of expenditures and other requirements for the ensuing year or budget period. The estimates must be reconciled so that the total amount of expenditures and other requirements in each fund equals the total amount of resources in the fund for the same period.

      (2) Estimates required under subsection (1) of this section must be prepared by organizational unit or by program. For purposes of preparing the estimates, “organizational unit” does not apply to hospitals, school districts or education service districts.

      (3) Estimates prepared by organizational unit pursuant to subsection (2) of this section must be detailed under separate object classifications of personnel services, materials and services and capital outlay. Separate estimates must be made for operating expenses and general capital outlays that cannot reasonably be allocated to an organizational unit and for special payments, debt service and interfund revenue transfers.

      (4) Estimates prepared by program pursuant to subsection (2) of this section must be arranged for each activity of a program. Estimates under each activity must be detailed under separate object classifications of personnel services, materials and services and capital outlay. Separate estimates must be made for operating expenses and general capital outlays that cannot reasonably be allocated to an activity within a program and for special payments, debt service and interfund revenue transfers.

      (5) Estimates of expenditures for personnel services must include for each organizational unit or activity the total budgeted cost of all officers and employees and the number of related full-time equivalent positions. Upon request, a municipal corporation shall make available the current salary of each officer and employee, other than persons who receive an hourly wage or who are hired on a part-time basis. For the purpose of preparing a list of salaries, employees of like classification and salary range may be listed by the number of employees, the highest and lowest salaries and the total amount of all salaries, in each salary range.

      (6) Debt service estimates must include separate amounts for principal and interest for each bond issue in each fund.

      (7) The estimate for a fund may include an estimate for general operating contingencies. [Formerly 294.352]

 

      294.390 [Repealed by 1963 c.576 §44]

 

      294.391 [1963 c.576 §17; 1997 c.308 §12; 2001 c.135 §11; 2011 c.473 §5; renumbered 294.403 in 2011]

 

      294.393 Preparation of estimates by school, education service and community college districts and by municipal corporations operating public utility or hospital. (1) Each school district and each education service district shall prepare the estimates of expenditures required under ORS 294.388 in accordance with the classification of revenue and expenditure accounts prescribed by the Department of Education in consultation with the Department of Revenue. The Department of Revenue is responsible for determining the district’s compliance with this subsection.

      (2) Each community college district shall prepare the estimates of expenditures required under ORS 294.388 in accordance with the classification of revenue and expenditure accounts prescribed by the Department of Community Colleges and Workforce Development in consultation with the Department of Revenue. The Department of Revenue is responsible for determining the district’s compliance with this subsection.

      (3) Notwithstanding ORS 294.388 (2), each municipal corporation that operates a public utility or hospital shall prepare estimates for the operations of each public utility or hospital in accordance with:

      (a) The applicable generally accepted system of accounts for the operations; or

      (b) The general system of accounts in ORS 294.305 to 294.565. [Formerly 294.356]

 

      294.395 [Repealed by 1963 c.576 §44]

 

      294.396 [1963 c.576 §18; 2001 c.135 §12; renumbered 294.408 in 2011]

 

      294.398 Estimate of unappropriated ending fund balance for each fund. 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 294.338 (2) and 294.481, no appropriation or expenditure shall be made in the year or budget period for which the budget is applicable for the amount estimated pursuant to this section. [Formerly 294.371]

 

      294.400 [Amended by 1953 c.40 §2; 1959 c.168 §1; repealed by 1963 c.576 §44]

 

      294.401 [1963 c.576 §19; 1965 c.451 §5; 1971 c.516 §2; 1989 c.504 §1; 1997 c.308 §13; 1999 c.632 §6; 2011 c.473 §6; renumbered 294.426 in 2011]

 

      294.403 Budget message. 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 294.426 (1). The budget message shall:

      (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;

      (5) Explain the major changes in financial policy; and

      (6) Set forth any change contemplated in the municipal corporation’s basis of accounting and explain the reasons for the change and the effect of the change on the operations of the municipal corporation. [Formerly 294.391]

 

      294.405 [Repealed by 1953 c.306 §18]

 

      294.406 [1963 c.576 §20; 1965 c.451 §6; 1997 c.308 §14; 1997 c.541 §336a; 1999 c.632 §7; 2001 c.104 §103; 2001 c.135 §13; 2009 c.477 §6; renumbered 294.428 in 2011]

 

      294.408 Time of making budget message and document. 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. [Formerly 294.396]

 

      294.410 [Repealed by 1963 c.576 §44]

 

      294.411 [1963 c.576 §21; 1969 c.155 §1; 1991 c.459 §6; 1997 c.308 §15; 1999 c.632 §8; 2009 c.596 §3; 2011 c.473 §7; renumbered 294.431 in 2011]

 

      294.413 [1971 c.516 §9; 1983 c.549 §1; 1993 c.742 §46; 1997 c.308 §16; renumbered 294.433 in 2011]

 

      294.414 Budget committee. (1) Except as provided in ORS 294.423, 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 may not be officers, agents or employees of the municipal corporation.

      (5) Appointive members of 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 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.

      (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.

      (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.

      (9) The budget committee shall at its first meeting after its appointment elect a presiding officer from among its members. [Formerly 294.336]

 

      294.415 [Renumbered 294.425]

 

      294.416 [Formerly 294.360; 1965 c.451 §7; 1971 c.516 §3; 1979 c.686 §6; 1997 c.308 §17; 2001 c.135 §14; 2011 c.473 §8; renumbered 294.438 in 2011]

 

      294.418 [1971 c.516 §5; 1979 c.686 §7; 1997 c.308 §18; 1997 c.541 §330; 2001 c.135 §15; repealed by 2011 c.473 §31]

 

      294.419 [2009 c.477 §2; renumbered 294.444 in 2011]

 

      294.420 [Renumbered 294.555]

 

      294.421 [Formerly 294.365; 1965 c.451 §8; 1967 c.525 §1; 1969 c.155 §2; 1971 c.516 §6; 1991 c.459 §7; 1997 c.308 §19; 1997 c.541 §331; 1999 c.632 §9; 2001 c.104 §104; 2001 c.135 §16; 2009 c.477 §7; 2009 c.596 §4; 2011 c.473 §11; renumbered 294.448 in 2011]

 

      294.423 Governing body of certain municipal corporations to be budget committee; exception. (1) The governing body of each municipal corporation having a population exceeding 200,000 and that is located in a county having a tax supervising and conservation commission shall be the budget committee for the municipal corporation unless the governing body of the municipal corporation elects by resolution to create a budget committee as provided in ORS 294.414.

      (2) The governing body of a city with a population of more than 400,000 is the budget committee of an urban renewal agency created by the city under ORS 457.035. [Formerly 294.341]

 

      294.425 [Formerly 294.415; 1997 c.308 §20; 1997 c.541 §336b; 1999 c.632 §10; 2001 c.104 §105; 2001 c.135 §17; 2009 c.477 §8; renumbered 294.451 in 2011]

 

      294.426 Budget committee meeting; notice; receipt of budget message and document; provision of copies of document. (1) The budget committee established under ORS 294.414 shall hold one or more meetings for the following purposes:

      (a) Receiving the budget message prepared under ORS 294.403 and the budget document; and

      (b) Providing members of the public with an opportunity to ask questions about and comment on the budget document.

      (2)(a) If a budget committee holds more than one meeting under subsection (1) of this section, the budget message and the budget document must be received at the first meeting.

      (b) If the budget committee does not provide members of the public with an opportunity to ask questions about and comment on the budget document at the first meeting, the budget committee must provide the public with the opportunity at a subsequent meeting.

      (3)(a) Except as provided in paragraph (b) of this subsection, the budget officer designated under ORS 294.331 shall publish prior notice of each meeting of the budget committee held pursuant to subsection (1) of this section. The notice must contain the information described in subsection (4) of this section and must be published by one of the methods described in subsection (5) of this section.

      (b)(A) If the budget committee holds more than one meeting for the purposes described in subsection (1) of this section, the budget officer may publish a combined notice for all the meetings.

      (B) If the budget committee holds more than one meeting for the purpose described in subsection (1)(b) of this section, the budget officer may publish notice of only the first meeting. Notice of subsequent meetings may be given as provided in ORS 294.428 (2). If notice is published for a meeting under this subparagraph and it is subsequently determined that the meeting is unnecessary, notice of cancellation of the meeting must be published as provided in ORS 294.428 (2).

      (4) The notice required under subsection (3) of this section must state:

      (a) The purpose, time and place of the meeting or meetings and the place where the budget document is available;

      (b) That the meeting is a public meeting where deliberations of the budget committee will take place; and

      (c) If the meeting described in the notice is a meeting at which the budget committee will receive questions and comments from members of the public, that any person may ask questions about and comment on the budget document at that time.

      (5)(a) If the notice required under subsection (3) of this section is published only by publication in a newspaper, the notice must be published at least two separate times, not more than 30 days before the meeting date and not less than five days before the meeting date.

      (b) The notice may be published once in a newspaper, not more than 30 days before the meeting date and not less than five days before the meeting date, and once on the municipal corporation’s Internet website, in a prominent manner and maintained on the website for at least 10 days before the meeting date. The newspaper notice must contain the Internet website address at which the notice is posted.

      (c) If the notice is published by mailing or hand delivery, the notice must be placed with the United States Postal Service or hand delivered not less than 10 days before the meeting date.

      (6)(a) At any time before the first meeting required under subsection (1) of this section, the budget officer may provide one copy of the budget document to each member of the budget committee solely for the information and use of the individual members. The budget committee may not deliberate on the budget document as a body before the first meeting.

      (b) If the budget officer does not provide copies of the budget document to the members of the budget committee under paragraph (a) of this subsection, the budget officer shall provide copies at the first meeting required under subsection (1) of this section.

      (7) The budget officer shall file a copy of the budget document in the office of the governing body of the municipal corporation immediately following presentation of the budget document to the members of the budget committee under subsection (6) of this section. The copy is a public record of the municipal corporation.

      (8) The governing body of the municipal corporation must provide to individuals upon request a copy of the budget document or the means of readily obtaining a copy of the budget document. [Formerly 294.401]

 

      294.428 Budget committee hearings; approval of budget document. (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 294.426 (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 294.426 (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 (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. [Formerly 294.406]

 

      294.430 [1963 c.576 §24; 1969 c.155 §3; 1991 c.459 §8; 1997 c.308 §21; 2011 c.473 §12; renumbered 294.453 in 2011]

 

      294.431 Submission of budget document to tax supervising and conservation commission before date of public hearing. (1) A municipal corporation that has a population not exceeding 200,000, is located in a county having a tax supervising and conservation commission, has not made an election under ORS 294.625 (2) and has not submitted its approved budget document to the tax supervising and conservation commission for a public hearing pursuant to ORS 294.453 (3) shall submit its approved budget document to the tax supervising and conservation commission in the county at least 30 days before the date of the public hearing in accordance with ORS 294.453.

      (2) A municipal corporation that has a population exceeding 200,000, or a municipal corporation that has a population not exceeding 200,000, has not made an election under ORS 294.625 (2) and requests the tax supervising and conservation commission to conduct the public hearing described in ORS 294.453, shall submit its approved budget document to the tax supervising and conservation commission in the county at least 20 days before the date of the public hearing in accordance with ORS 294.453.

      (3) If the real market value of all property subject to taxation by a municipal corporation in a county having a tax supervising and conservation commission is greater than the real market value of all property subject to taxation by the municipal corporation in any other county, the municipal corporation shall submit its approved budget document to the tax supervising and conservation commission pursuant to subsection (1) or (2) of this section. As used in this subsection, “real market value” means the real market value computed according to ORS 308.207 from the assessment rolls last in the process of collection.

      (4) Upon timely application in writing by a municipal corporation, a tax supervising and conservation commission may for good cause allow the municipal corporation to submit its approved budget document later than required under subsections (1) and (2) of this section. [Formerly 294.411]

 

      294.433 Format for notices and summaries. Format for publication of notices and summaries required by ORS 294.438 shall be prescribed by the Department of Revenue. [Formerly 294.413]

 

      294.435 [1963 c.576 §25; 1965 c.451 §9; 1969 c.682 §1; 1971 c.516 §7; 1977 c.305 §2; 1979 c.310 §5; 1979 c.686 §8a; 1993 c.270 §3; 1997 c.308 §22; 1997 c.541 §332; 1999 c.632 §11; 2001 c.135 §18; 2001 c.753 §5; 2003 c.14 §145; 2011 c.473 §13; renumbered 294.456 in 2011]

 

      294.437 [2001 c.753 §4; 2007 c.350 §1; renumbered 294.476 in 2011]

 

      294.438 Publication of