Bill Text: OR HB2425 | 2011 | Regular Session | Enrolled
Bill Title: Relating to local budget law.
Sponsorship: Unknown
Status: (Passed) 2011-06-23 - Chapter 473, (2011 Laws): Effective date January 1, 2012. [HB2425 Detail]
Download: Oregon-2011-HB2425-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2425
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Rules)
CHAPTER ................
AN ACT
Relating to local budget law; creating new provisions; amending
ORS 294.311, 294.326, 294.352, 294.356, 294.371, 294.391,
294.401, 294.411, 294.416, 294.421, 294.430, 294.435, 294.440,
294.445, 294.450, 294.455, 294.480, 294.500, 294.555, 294.608,
294.910, 310.060 and 455.210; and repealing ORS 294.386,
294.418 and 294.483.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 294.326 is amended to read:
294.326. (1) { - Except as provided in subsections (3) to
(11) of this section, it is unlawful for any - } { + A + }
municipal corporation
{ - to - } { + may not + } expend money or { - to - }
certify to the assessor an ad valorem tax rate or estimated
amount of ad valorem taxes to be imposed in any year unless the
municipal corporation has complied with ORS 294.305 to 294.565.
{ - (2) To the extent that any of subsections (3) to (11) of
this section apply in a given case, the municipal corporation
need not comply with ORS 294.305 to 294.565. - }
{ - (3) - } { + (2) + } Subsection (1) of this section does
not apply to the expenditure { - in the year of receipt - } of
grants, gifts, bequests or devises transferred to a municipal
corporation in trust for specific purposes or to other special
purpose trust funds at the disposal of municipal corporations.
{ - However, subsection (1) of this section does apply to the
expenditure of grants, gifts, bequests or devises transferred to
a municipal corporation for undesignated general purposes or to
the expenditure of grants, gifts, bequests or devises transferred
to a municipal corporation in trust for specific purposes which
were received in a prior year. Expenditure of grants, gifts,
bequests and devises exempt from subsection (1) of this section
by - } { + A municipal corporation may not make an expenditure
under + } this subsection { - is lawful only after enactment
by - } { + unless + } the governing body of the municipal
corporation { - of - } { + enacts + } appropriation
ordinances or resolutions authorizing the expenditure.
{ - (4) - } { + (3) + } Subsection (1) of this section does
not apply
{ - whenever - } { + :
(a) To the extent that maintenance, repair or self-insurance
reserves authorized by ORS 294.366 or nontax funds are available
or may be made available; and
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(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) + } { - Has declared - } { + Declares + } the
existence of an
{ - unforeseen - } occurrence or condition { - which - }
{ + that + } could not have been foreseen at the time of the
preparation of the budget for the current year or current budget
period { - or - } { + ;
(ii) + } Could not have foreseen a pressing necessity for the
expenditure { - or - } { + at the time of the preparation of
the budget for the current year or current budget period; or
(iii) + } { - Has received - } { + 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. { - The
governing body may make excess expenditures for the specific
purpose or purposes beyond the amount budgeted and appropriated
to the extent that maintenance, repair or self-insurance reserves
authorized by ORS 294.366 or nontax funds are available or may be
made available. The expenditures are lawful only after the
enactment of appropriate appropriation ordinances or resolutions
authorizing the expenditures. The ordinance or resolution must
state the need for the expenditure, the purpose for the
expenditure and the amount appropriated. - }
{ - (5) - } { + (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.
{ - (6) - } { + (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
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(C) Fund an escrow or trust account to defease or pay the
bonds.
{ - (7) - } { + (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
{ - to be paid - } { + payable + } by owners of benefited
property.
{ - (8) - } { + (7) + } Subsection (1) of this section does
not apply to the expenditure of funds accumulated to pay deferred
employee compensation.
{ - (9) - } { + (8) + } Subsection (1) of this section does
not apply to refunds or the interest on refunds granted by
counties under ORS 311.806.
{ - (10) - } { + (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 { - of refunded amounts to which - } { +
under + } this subsection { - applies is lawful only after - }
{ + unless + } the governing body of the municipal corporation
{ - has enacted, after public hearing, - } { + enacts + }
appropriate appropriation ordinances or resolutions authorizing
the expenditure.
{ - (11) - } { + (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.
SECTION 2. ORS 294.352 is amended to read:
294.352. (1) Each municipal corporation shall prepare estimates
of expenditures { + and other requirements + } for the ensuing
year or { - ensuing - } 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) { - The - } Estimates required { - by - }
{ + under + } subsection (1) of this section { - shall - }
{ + 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 { - required by subsection (1) of this section
and - } prepared by organizational unit { - shall - }
{ + pursuant to subsection (2) of this section must + } be
detailed under separate object classifications of
{ - personal - } { + personnel + } services, materials and
services and capital outlay. Separate estimates { - shall - }
{ + 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 { - ,
operating expenses and general capital outlays which cannot
reasonably be allocated to an organizational unit - } .
(4) Estimates { - required by subsection (1) of this section
and - } prepared by program { - shall - } { + pursuant to
subsection (2) of this section must + } be arranged for each
activity of a program. Estimates under each activity
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{ - shall - } { + must + } be detailed under separate object
classifications of { - personal - } { + personnel + }
services, materials and services and capital outlay. Separate
estimates
{ - shall - } { + must + } be made { - for each program - }
{ + 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 { - , operating
expenses and general capital outlays which cannot reasonably be
allocated to an activity within a function. For common and union
high school districts and community colleges, estimates required
by this subsection shall be further detailed by object within
each object classification - } .
(5) Estimates of expenditures for { - personal services,
other than services of persons who receive an hourly wage or who
are hired on a part-time basis, shall list the salary for each
officer and employee, except that - } { + 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 { - , (such range not to exceed
that established by the governing body of the municipal
corporation in accordance with its policy for setting salaries)
in each organizational unit or activity - } may be listed by the
number of { - those - } employees, the { - limits of each
salary range - } { + highest and lowest salaries + } and the
{ + total + } amount of
{ - their combined - } { + all + } salaries { + , in each
salary range + }.
{ - (6) The general capital outlay estimate shall include
separate amounts for land, buildings, improvements to land other
than buildings and machinery and equipment which cannot be
reasonably allocated to an organizational unit or activity. - }
{ - (7) - } { + (6) + } { - The - } Debt service
estimates { - shall - } { + must + } include separate amounts
for principal and interest { - of - } { + for + } each bond
issue in each fund.
{ - (8) - } { + (7) + } { - There may be included in each
fund - } { + The estimate for a fund may include + } an
estimate for general operating contingencies.
{ - (9) If the estimates required by subsection (1) of this
section are not prepared by fund, there shall be prepared a
summary which cross-references programs or organizational units
to the appropriations required by ORS 294.435. - }
SECTION 3. ORS 294.356 is amended to read:
294.356. (1) Each school district { - , - } { + and + } each
education service district { - and each community college
district - } shall prepare { - its - } { + the + } estimates
of expenditures required { - by - } { + under + } ORS 294.352
in accordance with the classification of revenue and expenditure
accounts prescribed by { - rules of the State Board - }
{ + the Department + } of Education { - with the approval
of - } { + in consultation with + } the Department of Revenue.
The Department of Revenue { - shall be - } { + is + }
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responsible for determining { + the district's + }
compliance { + with this subsection + }.
{ + (2) Each community college district shall prepare the
estimates of expenditures required under ORS 294.352 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. + }
{ - (2) The term 'organizational unit' shall not apply to
hospitals, school districts, education service districts and
community colleges in preparing estimates of expenditures under
ORS 294.352 or making appropriations under ORS 294.435. The term
' organizational unit' shall not apply to hospitals in preparing
the budget summary required by ORS 294.416. - }
(3) Notwithstanding ORS 294.352 { - (5) - } { + (2) + },
each municipal corporation { - which - } { + that + }
operates a public utility or hospital shall prepare { - its - }
estimates for { - such - } { + the + } operations { + of
each public utility or hospital + } in accordance with { + :
(a) + } The { + applicable + } generally accepted system of
accounts for
{ - such operation - } { + the operations; + } or { - in
accordance with - } { +
(b) + } The general system of accounts { - contained in ORS
294.311 to 294.520 - } { + in ORS 294.305 to 294.565 + }.
SECTION 4. ORS 294.371 is amended to read:
294.371. A municipal corporation may include in its budget an
estimate of unappropriated ending fund balance for each fund, for
use in the fiscal period following that for which the budget is
being prepared. The estimate authorized by this section
represents cash or net working capital which will be carried over
into the year following the ensuing fiscal year or ensuing budget
period for which the budget is being prepared. It shall not in
any way reduce the cash balance or net working capital which
becomes part of the budget resources provided in ORS 294.361 (1)
to (3). The unappropriated ending fund balance authorized by this
section shall become a budget resource at the close of the
ensuing fiscal year or ensuing budget period for the succeeding
year or budget period. Except as provided in ORS 294.326
{ - (3) - } { + (2) + } and 294.455, no appropriation
{ - nor - } { + 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.
SECTION 5. ORS 294.391 is amended to read:
294.391. A budget message shall be prepared by or under the
direction of the executive officer of the municipal corporation
or, where no executive officer exists, by or under the direction
of the presiding officer of the governing body. The budget
message shall be delivered at a meeting of the budget committee
as provided in ORS 294.401 (1). The budget message shall:
(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;
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{ - and - }
(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 + }.
SECTION 6. ORS 294.401 is amended to read:
294.401. (1) The budget committee { + established under ORS
294.336 + }shall hold one or more meetings for the following
purposes:
(a) Receiving the budget message { + prepared under ORS
294.391 + } and the budget document; and
(b) Providing members of the public with an opportunity to ask
questions about and comment { - upon - } { + on + } the
budget document.
(2) { + (a) + } { - When - } { + If a budget committee
holds + } more than one meeting { - of the budget committee is
held - } under subsection (1) of this section, { + the budget
message and the budget document must be received at + } the first
meeting { - shall be the meeting at which the budget message
and the budget document are received by the budget committee - }
. { +
(b) If + } the budget committee { - may - } { + does
not + } provide members of the public with an opportunity to ask
questions about and comment
{ - upon - } { + on + } the budget document at the first
meeting { - of the budget committee. If such opportunity is not
provided at the first meeting - } , the budget committee
{ - shall - } { + must + } provide the public with the
opportunity { - to ask questions and make comments upon the
budget document at subsequent meetings - } { + 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
{ - for the purpose of satisfying the requirements of - }
{ + pursuant to + } subsection (1) of this section. The
{ - published - } notice { - shall - } { + must + } contain
the information { - required under - } { + described in + }
subsection (4) of this section { + and must be published by one
of the methods described in subsection (5) of this section + }.
{ - However: - }
{ - (a) - } { + (b)(A) + } If { + the budget committee
holds + } more than one meeting { - of the budget committee is
held for the purpose of meeting the requirements of subsection
(1) - } { + for the purposes described in subsection (1) + } of
this section, the budget officer may publish a { - single
notice containing the required information - } { + combined
notice + } for all { - of - } the meetings { + . + } { - to
be held for the purpose of meeting the requirements of subsection
(1) of this section; and - }
{ - (b) - } { + (B) + } If the budget committee holds
{ - two or more meetings under - } { + more than one meeting
for the purpose described in + } subsection (1)(b) of this
section { + , + } { - for the purpose of taking questions and
comments from the public, then: - }
{ - (A) - } { + the budget officer may publish notice
of + } only { - notice of - } the first meeting { - held for
the purpose of taking questions and comments from the public need
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be published in accordance with the requirements of this
subsection, and notice of any subsequent meeting held for the
purpose of taking questions and comments from the public - }
{ + . Notice of subsequent meetings + } may be given as provided
in ORS 294.406 (2) { - ; and - } { + . + }
{ - (B) - } If notice is published for a meeting { - to be
held for the purpose of taking questions and comments from the
public - } { + under this subparagraph + } and it is
subsequently determined that the meeting is { - not needed - }
{ + unnecessary + }, notice of cancellation of the meeting
{ - shall - } { + must + } be published as provided in ORS
294.406 (2).
(4) { - A notice meets the requirements of this subsection
when it states - } { + The notice required under subsection (3)
of this section must state + }:
(a) The purpose, time and place of the meeting or meetings
{ - to which the notice relates - } 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) + } { - When notice of a meeting of the budget
committee - } { + If the notice required under subsection (3)
of this section + } is published { + only + } by publication in
a newspaper, the notice
{ - satisfies the requirements of this section if the notice is
published on not fewer than two occasions separated by at least
five days, with the first publication not earlier - } { + must
be published at least two separate times, not more + }than 30
days
{ - prior to - } { + before + } the meeting date and
{ - the final publication not later - } { + not less + } than
five days { - prior to - } { + 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) + } { - When notice of a meeting of the budget
committee - } { + If the notice + } is published by mailing or
{ - by - } hand delivery, the notice
{ - satisfies the requirements of this section if the notice
is - } { + must be + } placed with the United States Postal
Service or hand delivered not { - later - } { + less + } than
10 days { - prior to - } { + before + } the meeting date.
(6) { + (a) + } At any time { - prior to the meeting of the
budget committee at which the budget committee will receive the
budget message and the budget document - } { + before the first
meeting required under subsection (1) of this section + }, the
budget officer may provide { - a - } { + one + } copy of the
budget document to each member of the budget committee
{ + solely + } for the information and use of the individual
{ - member - } { + members. The budget committee may not
deliberate on the budget document as a body before the first
meeting + }.
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{ - (7) - } { + (b) + } { - Except when copies of the
budget document were provided to the members of the budget
committee under subsection (6) of this section, the budget
officer shall submit to the members of the budget committee the
budget document - } { + 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
{ - held - } { + required + } under subsection (1) of this
section { - for their use and consideration - } .
{ - (8) - } { + (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) { - or (7) - } of this section. The copy
{ - shall become - } { + is + } a public record of the
municipal corporation.
{ - (9) - } { + (8) + } The governing body { - shall
either provide the means of duplicating the budget or part
thereof, in those situations where the budget document or portion
thereof may be quickly reproduced, or shall provide copies of the
budget document or part thereof so that a copy of the budget
document or part thereof may be readily obtained by any
individual interested in the affairs of the municipal
corporation - } { + 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 + }.
SECTION 7. ORS 294.411 is amended to read:
294.411. (1) A municipal corporation { - having - }
{ + that has + } a population not exceeding 200,000, { + is + }
located in a county having a tax supervising and conservation
commission, { - not making - } { + has not made + } an
election under ORS 294.625 (2) and { + has + } not
{ - submitting - } { + submitted + } its { + approved + }
budget document to the tax supervising and conservation
commission for a public hearing pursuant to ORS 294.430 (3) shall
submit its approved budget document to the tax supervising and
conservation commission in the county at least 30 days
{ - prior to - } { + before + } the date of the public hearing
in accordance with ORS 294.430.
{ + (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
294.430, 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
294.430.
(3) + } { - If its territory lies in two or more counties,
the municipal corporation shall submit its budget to the
commission - } If the real market value of all property subject
to taxation by
{ - the - } { + a + } municipal corporation in { - the - }
{ + 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 { - . Real market value is - } { + , the
municipal corporation shall submit its approved budget document
to the tax supervising and conservation commission pursuant to
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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.
{ - (2) Before adopting the budget, the governing body for a
municipal corporation that submits its approved budget to the
commission as described in subsection (1) of this section shall
consider and take appropriate action on any orders,
recommendations or objections made by the tax supervising and
conservation commission. - }
{ + (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. + }
SECTION 8. ORS 294.416 is amended to read:
294.416. { - Except as provided in ORS 294.418, there shall
be published, as provided in ORS 294.421: - }
{ - (1) A summary of the budget as approved by the budget
committee and compared with the actual expenditures and budget
resources of the preceding year or preceding budget period and
the budget summary of the current year or current budget period
in accordance with forms prescribed by the Department of Revenue
in the manner provided in ORS 294.413. The summary shall be of
sufficient detail to inform the citizens of the municipal
corporation of the proposed financial plan for the ensuing year
or ensuing budget period. As a minimum requirement, the personnel
services, the major expense items under materials and services
and capital outlay for each organizational unit or activity of
each fund and the major items for debt service, special payments,
and operating contingencies for each fund shall be listed
separately. The summary shall show the major items of budget
resources. As used in this subsection, the term 'program' may be
substituted for the term 'organizational unit' for municipal
corporations which prepare program budgets. - }
{ - (2) The financial summary prepared under ORS 294.386 for
the ensuing year or ensuing budget period and for the current
year or current budget period. - }
{ - (3) A notice of the time and place at which the budget
document as approved by the budget committee may be discussed
with the governing body. - }
{ - (4) A statement that the budget is prepared in accordance
with the basis of accounting used in the preceding year or
preceding budget period unless a change in the basis of
accounting is anticipated. If a change in the basis of accounting
is to be made, there shall be an explanation of the change and
the effects of the change. - }
{ - (5) A notice of the place where the complete budget
document is available for inspection by the general public during
regular business hours and where copies of the complete budget
document may be obtained. - }
{ + (1) Not more than 30 days and not less than five days
before the meeting of the governing body of a municipal
corporation under ORS 294.430, a notice of the meeting and a
financial summary of the budget as approved by the budget
committee and compared with the actual expenditures and budget
resources of the preceding year or preceding budget period and
the budget summary of the current year or current budget period
must be published at least once. The notice and financial summary
may be published in accordance with forms prescribed by the
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Department of Revenue or in a narrative format that includes all
the information required under subsections (2) to (8) of this
section.
(2) Except as provided in section 10 of this 2011 Act, the
financial summary required under subsection (1) of this section
must state separately the total amount of resources included in
the budget in each of the following categories:
(a) Beginning fund balance or net working capital;
(b) Income from fees, licenses, permits, fines, assessments and
all other service charges imposed by the municipal corporation;
(c) Property taxes approved by the budget committee for the
ensuing year, or as increased by the governing body of the
municipal corporation as provided in ORS 294.435;
(d) Federal, state and other grants, gifts, allocations and
donations;
(e) Proceeds from bonds and other borrowings;
(f) Interfund revenue transfers and reimbursements for internal
services; and
(g) The total of all other budget resources.
(3) Except as provided in section 10 of this 2011 Act, the
financial summary required under subsection (1) of this section
must state separately the total amount of expenditures and other
requirements included in the budget in each of the following
categories:
(a) Personnel services;
(b) Materials and services;
(c) Capital outlay;
(d) Debt service;
(e) Special payments;
(f) Interfund revenue transfers;
(g) Operating contingencies; and
(h) Unappropriated ending fund balance and reserves.
(4)(a) Except as provided in section 10 of this 2011 Act, the
financial summary required under subsection (1) of this section
must state the estimated total amount of expenditures and other
requirements and the estimated total number of employees stated
in full-time equivalent positions for the ensuing year or ensuing
budget period for each organizational unit or program of the
municipal corporation.
(b) For purposes of this subsection, 'organizational unit '
does not apply to hospitals.
(5)(a) The financial summary required under subsection (1) of
this section must describe in narrative format the prominent
changes from the current year or current budget period in the
activities and financing of the major organizational units or
major programs.
(b) For purposes of this subsection, 'organizational unit '
does not apply to hospitals.
(6) The financial summary required under subsection (1) of this
section must state the municipal corporation's operating tax rate
or amount and the rate or amount of all other ad valorem property
taxes to be certified to the assessor, including separate rates
or amounts for local option taxes and ad valorem property taxes
for meeting payments on bond principal and interest and for
meeting other obligations of the municipal corporation described
in section 11 (5), Article XI of the Oregon Constitution. Tax
rates must be stated as a rate per thousand dollars of assessed
value.
(7) The following statements must be published with the
financial summary required under subsection (1) of this section:
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(a) A classified statement of outstanding indebtedness
excluding indebtedness that has been defeased as provided in ORS
287A.195; and
(b) A classified statement of all indebtedness authorized but
not incurred.
(8) The meeting notice required under subsection (1) of this
section must:
(a) State the time and place of the budget hearing at which the
approved budget document may be discussed with the governing body
of the municipal corporation;
(b) State the place where the complete budget document is
available during regular business hours for inspection by the
general public and where and when copies of the complete budget
document may be obtained;
(c) State that the budget has been prepared in accordance with
the basis of accounting used in the preceding year or preceding
budget period unless a change in the basis of accounting is
anticipated; and
(d) If a change in the basis of accounting is to be made,
explain the change and the effects of the change.
(9) The Department of Revenue may adopt rules to implement the
provisions of this section. + }
SECTION 9. { + Section 10 of this 2011 Act is added to and
made a part of ORS 294.305 to 294.565. + }
SECTION 10. { + (1) For a school district or an education
service district, the financial summary required under ORS
294.416 (1) must state separately the total amount of resources
included in the budget in each of the following categories:
(a) Beginning fund balance;
(b) Property taxes other than local option taxes;
(c) Local option taxes;
(d) Local sources;
(e) Intermediate sources;
(f) State sources;
(g) Federal sources;
(h) Interfund revenue transfers; and
(i) The total of all other budget resources.
(2) For a school district or an education service district, the
financial summary required under ORS 294.416 (1) must state
separately the total amount of expenditures and other
requirements included in the budget in each of the following
objects:
(a) Salaries;
(b) Associated payroll cost;
(c) Purchased services;
(d) Supplies and materials;
(e) Capital outlay;
(f) Other objects other than debt service;
(g) Debt service;
(h) Interfund transfers;
(i) Operating contingencies; and
(j) Unappropriated ending fund balance and reserves.
(3) For a school district or an education service district, the
financial summary required under ORS 294.416 (1) must state
separately the total amount of expenditures and other
requirements and the total number of employees stated in
full-time equivalent positions included in the budget in each of
the following functions:
(a) Instruction;
(b) Support services;
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(c) Enterprise and community services;
(d) Facilities acquisition and construction;
(e) Other uses other than debt service and interfund transfers;
(f) Debt service;
(g) Interfund transfers;
(h) Operating contingencies; and
(i) Unappropriated ending fund balance and reserves.
(4) For a community college district, the financial summary
required under ORS 294.416 (1) must state separately the total
amount of resources included in the budget in each of the
following categories:
(a) Beginning fund balance;
(b) Property taxes other than local option taxes;
(c) Local option taxes;
(d) Tuition and fees;
(e) Other local sources;
(f) State sources;
(g) Federal sources;
(h) Interfund revenue transfers; and
(i) The total of all other budget resources.
(5) For a community college district, the financial summary
required under ORS 294.416 (1) must state separately the total
amount of expenditures and other requirements included in the
budget in each of the following objects:
(a) Salaries;
(b) Materials and services;
(c) Financial aid;
(d) Capital outlay;
(e) Debt service;
(f) Other requirements;
(g) Transfers;
(h) Operating contingencies; and
(i) Unappropriated ending fund balance and reserves.
(6) For a community college district, the financial summary
required under ORS 294.416 (1) must state separately the total
amount of expenditures and other requirements and the total
number of employees stated in full-time equivalent positions
included in the budget in each of the following functions:
(a) Instruction;
(b) Instructional support;
(c) Student services other than student loans and financial
aid;
(d) Student loans and financial aid;
(e) Community services;
(f) College support services other than facilities acquisition
and construction;
(g) Facilities acquisition and construction;
(h) Interfund transfers;
(i) Other objects;
(j) Operating contingencies; and
(k) Unappropriated ending fund balance and reserves. + }
SECTION 11. ORS 294.421 is amended to read:
294.421. { - (1) Subject to subsections (3) to (6) of this
section, the summary of the budget document approved by the
budget committee shall be published at least once prior to the
time appointed for the proposed meeting of the governing body in
accordance with ORS 294.430. - }
{ - (2) Subject to subsections (3) to (6) of this section,
the notice of the time and place at which the budget document as
approved by the budget committee may be discussed shall be
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published by one or more of the methods described in ORS 294.311
(35) not less than five days and not more than 30 days prior to
the date of the meeting required by ORS 294.430. - }
{ - (3) If no newspaper is published in the municipal
corporation, a municipal corporation whose aggregate of estimated
budget expenditures for the ensuing fiscal year does not exceed
$50,000 or for the ensuing budget period does not exceed $100,000
may, in lieu of the publication and notice provided in
subsections (1) and (2) of this section and in lieu of
publication by one or more of the methods described in ORS
294.311 (35), post the summaries and notices provided by ORS
294.416 or 294.418 in three conspicuous places in the municipal
corporation for at least 20 days prior to the date of the meeting
provided in ORS 294.430 and publish the notice provided by
subsection (4) of this section. - }
{ - (4) If notice is given as provided in subsection (3) of
this section, the municipal corporation shall publish, by one or
more of the methods described in ORS 294.311 (35), a notice of
the following: - }
{ - (a) The date, time and place of the meeting provided by
ORS 294.430; - }
{ - (b) The place where the complete budget document is
available for inspection by the general public during regular
office hours; - }
{ - (c) Total budget requirements and taxes proposed to be
levied; - }
{ - (d) Changes in the amount or rate of proposed ad valorem
property taxes; and - }
{ - (e) The place where copies of the complete budget or
parts thereof may be obtained. - }
{ - (5) The notice provided in subsection (4) of this section
shall be published not less than five days and not more than 30
days prior to the date of the meeting provided in ORS
294.430. - }
{ - (6) A municipal corporation having a population exceeding
200,000 inhabitants, or a municipal corporation with 200,000 or
fewer inhabitants that has not made an election under ORS 294.625
(2) and that requests the tax supervising and conservation
commission to conduct the public hearing outlined in ORS 294.430,
shall, in lieu of the publication and notice prescribed in
subsection (1) of this section, submit its budget document, as
approved by the budget committee, to the tax supervising and
conservation commission within its county, if there is such a
commission, at least 20 days prior to the legal date of the
public hearing before the tax supervising and conservation
commission on the budget, and the budget document shall thereupon
be open to inspection by any taxpayer or citizen. The municipal
corporation shall also publish a notice as provided in
subsections (4) and (5) of this section. - }
{ + (1) If no newspaper is published in a municipal
corporation the aggregate estimated budget expenditures of which
do not exceed $100,000 for the ensuing fiscal year or $200,000
for the ensuing budget period, the municipal corporation may post
the notice of the meeting and financial summary of the budget
required under ORS 294.416 (1) in three conspicuous places in the
municipal corporation for at least 20 days before the date of the
meeting required under ORS 294.430.
(2) Notwithstanding ORS 294.416, a municipal corporation having
a population exceeding 200,000 and located in a county having a
tax supervising and conservation commission or a municipal
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corporation having a population not exceeding 200,000 that has
not made an election under ORS 294.625 (2) and that requests the
tax supervising and conservation commission to conduct the public
hearing described in ORS 294.430 shall, not less than five days
and not more than 30 days before the date of the meeting required
under ORS 294.430, publish a notice stating:
(a) The date, time and place of the meeting required under ORS
294.430;
(b) The place where the complete budget document is available
during regular business hours for inspection by the general
public;
(c) Total budget requirements and taxes to be levied;
(d) Changes in the amount or rate of proposed ad valorem
property taxes; and
(e) The place where copies of the complete budget or parts of
the complete budget may be obtained. + }
SECTION 12. ORS 294.430 is amended to read:
294.430. (1) Except as provided in subsections (2) and (3) of
this section, the governing body of a municipal corporation shall
meet at the time and place designated in the notice of meeting
required { - by - } { + under + } ORS 294.416 for the purpose
of holding a public hearing on the budget document as approved by
the budget committee. At the meeting any person may appear for or
against any item in the { + approved + } budget document.
(2) { - Each - } { + A + } municipal corporation having a
population exceeding 200,000 and located in a county having a tax
supervising and conservation commission { - , - } shall { - ,
in lieu of the meeting provided for in subsection (1) of this
section, - } submit its budget document to the tax supervising
and conservation commission of the county { + under ORS 294.411
(2) + }. The governing body of { - such - } { + the + }
municipal corporation or its representatives shall meet with the
taxpayers { - thereof - } { + of the municipal
corporation + } at a public hearing to be called and conducted by
the tax supervising and conservation commission.
(3) { - Any - } { + A + } municipal corporation
{ - having - } { + that has + } a population not exceeding
200,000 and { + is + } located in a county having a tax
supervising and conservation commission { - , - } may { - , in
lieu of the meeting provided for in subsection (1) of this
section, - } submit its { + approved + } budget document to the
tax supervising and conservation commission of the county
{ + under ORS 294.411 (1) + } for a public hearing. The
governing body of { - such - } { + the + } municipal
corporation or its representatives shall meet with the taxpayers
{ - thereof - } { + of the municipal corporation + } at a
public hearing to be called and conducted by the tax supervising
and conservation commission.
{ - (4) If its territory lies in two or more counties, a
municipal corporation subject to subsection (2) of this section
shall, and a municipal corporation subject to subsection (3) of
this section may, submit its budget document to the tax
supervising and conservation commission for public hearing If the
real market value of all property subject to taxation by the
municipal corporation in the county with a commission is greater
than the real market value of all property subject to taxation by
the municipal corporation in any other county. Real market value
is the real market value computed according to ORS 308.207 from
the assessment rolls last in the process of collection. - }
SECTION 13. ORS 294.435 is amended to read:
Enrolled House Bill 2425 (HB 2425-A) Page 14
294.435. (1) { + (a) + } After the public hearing
{ - provided for in - } { + required under + } ORS 294.430 (1)
{ - has been held - } { + and consideration of matters
discussed at the public hearing + }, the governing body { + of a
municipal corporation + } shall enact the { - proper - }
ordinances or resolutions { + necessary + } to adopt the budget,
to make the appropriations, to determine, make and declare the ad
valorem property tax amount or rate to be certified to the
assessor for either the ensuing year or each of the years of the
ensuing budget period and to itemize and categorize the ad
valorem property tax amount or rate as { - provided in - }
{ + required under + } ORS 310.060.
{ - Consideration shall be given to matters discussed at the
public hearing. - }
{ + (b) The governing body may amend + } the budget estimates
and proposed ad valorem property tax amount or rate { - as
shown - } in the budget document { - may be amended prior
to - } { + before + } adoption { + under paragraph (a) of this
subsection + } and { - may also be amended by the governing
body following - } { + after + } adoption if { - such - }
{ + the post-adoption + } amendments are adopted prior to the
commencement of the fiscal year or budget period to which the
budget relates.
{ - However, - }
{ + (c) Notwithstanding paragraph (b) of this subsection,
unless the amended budget document is republished pursuant to ORS
294.416 or 294.421 in the same manner as the original budget and
another public hearing is held pursuant to ORS 294.430 (1), or
except to the extent ad valorem property taxes may be increased
under ORS 294.437:
(A) + }The amount of estimated expenditures for each fund in
an annual budget may not be increased by more than $5,000 or 10
percent of the estimated expenditures, whichever is greater
{ - , and - } { + ;
(B) + } The amount of estimated expenditures for each fund in a
biennial budget may not be increased by more than $10,000 or 10
percent of the estimated expenditures, whichever is greater
{ - , - } { + ; + } and
{ + (C) + } The amount or rate of the total ad valorem
property taxes to be certified by the municipal corporation to
the assessor may not exceed the amount approved by the budget
committee { - : - } { + . + }
{ - (a) Unless the amended budget document is republished as
provided by ORS 294.416 or 294.418 and 294.421 for the original
budget and another public hearing is held as provided by ORS
294.430 (1); or - }
{ - (b) Except to the extent ad valorem property taxes may be
increased pursuant to ORS 294.437. - }
(2) { + (a) + } After { - the - } { + a + } public hearing
{ - provided for in - } { + under + } ORS 294.430 (2) or (3)
{ - has been held and - } { + , receipt of + } the
certification of the tax supervising and conservation commission
{ - received, if such certification is required - } { + , if
required, and consideration of any orders, recommendations or
objections made by the tax supervising and conservation
commission in accordance with law + }, the governing body { + of
a municipal corporation + } shall enact the
{ - proper - } ordinances or resolutions { + necessary + } to
adopt the budget, to make the appropriations, to determine, make
and declare the ad valorem property tax amount or rate for either
Enrolled House Bill 2425 (HB 2425-A) Page 15
the ensuing fiscal year or each of the fiscal years of the
ensuing budget period and to itemize and categorize the ad
valorem property tax amount or rate as { - provided in - }
{ + required under + } ORS 310.060. { - Consideration shall be
given any orders, recommendations or objections made by the tax
supervising and conservation commission in accordance with
law. - }
{ + (b) + } The action taken { + by the governing body under
paragraph (a) of this subsection + } on each order,
recommendation or objection
{ - after such consideration by the governing body - } { +
made by the commission + }, with the reasons for { - such - }
{ + the + } action, { - shall - } { + must + } be included
in the ordinance or resolution adopting the budget. { +
(c) The governing body shall send + } a certified copy of the
ordinance or resolution { - shall be sent - } to the
commission within 15 days after the date the ordinance or
resolution is adopted.
{ + (d) The governing body may amend + } the budget
estimates, appropriations and ad valorem property tax amount or
rate { - as shown - } in the budget document { - may be
amended prior to - } { + before + } adoption { + under
paragraph (a) of this subsection + } and { - may also be
amended by the governing body following - } { + after + }
adoption if { - such - } { + the post-adoption + } amendments
are adopted prior to the commencement of the fiscal year or
budget period to which the budget relates.
{ - However, - }
{ + (e) Notwithstanding paragraph (d) of this subsection,
unless the amended budget document is resubmitted to the tax
supervising and conservation commission for another public
hearing and for recommendations or objections of the commission,
or except to the extent ad valorem property taxes may be
increased under ORS 294.437:
(A) + } The amount of estimated expenditures for each fund
{ + in an annual budget + } may not be increased by more than
$5,000 or 10 percent of the estimated expenditures, whichever is
greater { - , - } { + ;
(B) + } The amount of estimated expenditures for each fund in a
biennial budget may not be increased by more than $10,000 or 10
percent of the estimated expenditures, whichever is greater
{ - , - } { + ; + } and
{ + (C) + } The amount or rate of the total ad valorem
property taxes to be certified by the municipal corporation to
the assessor may not exceed the amount shown in the budget
document at the time of the budget hearing { - : - } { + . + }
{ - (a) Unless the amended budget document is resubmitted to
the tax supervising and conservation commission for another
public hearing, and for recommendations or objections of that
body; or - }
{ - (b) Except to the extent ad valorem property taxes may be
increased pursuant to ORS 294.437. - }
(3) { + (a) Except as provided in subsections (4) and (5) of
this section, + } the appropriations required { - by - }
{ + under + } subsections (1) and (2) of this section
{ - shall, as a minimum, - } { + must + } contain { + :
(A) + } One amount for each organizational unit or program of
each fund { - . - } { + that is the total of all amounts for
personnel services, materials and services and capital outlay
attributable to the organizational unit or program; and
Enrolled House Bill 2425 (HB 2425-A) Page 16
(B) + } { - In addition, - } Separate amounts { - shall be
appropriated - } in each fund for { + operating expenses for
personnel services, materials and services and capital outlay
that cannot be allocated to a particular organizational unit or
program and for + } debt service, special payments, interfund
revenue transfers { - , capital outlay, operating expenses which
cannot be allocated to an organizational unit or program - } and
operating contingencies.
{ + (b) + } { - If the governing body so desires, it may
appropriate - } Separate amounts for activities within an
organizational unit or program { + may be appropriated
separately + }.
{ + (c) + } For { - those municipal corporations where the
term - } { + a municipal corporation to which the terms + }
'organizational unit '
{ - has no application - } { + and 'program' do not
apply + }, the appropriations { - shall - } { + must + }
contain separate amounts for
{ - personal - } { + personnel + } services, materials and
services, capital outlay, debt service, special payments,
interfund revenue transfers and operating { - contingency - }
{ + contingencies + } for each fund.
{ + (4) For a school district or an education service
district, the appropriations required under subsections (1) and
(2) of this section must contain separate amounts in each major
fund for each major function, as prescribed by the Department of
Education in consultation with the Department of Revenue,
including instruction, support services, enterprise and community
services, facilities acquisition and construction, interfund
revenue transfers, debt service and operating contingencies.
(5) For a community college district, the appropriations
required under subsections (1) and (2) of this section must
contain separate amounts in each fund for:
(a) Each major function, as prescribed by the Department of
Community Colleges and Workforce Development in consultation with
the Department of Revenue, including instruction, instructional
support, student services, community services, college support
services, interfund transfers, debt service and operating
contingencies;
(b) Each major function as required under subsection (4) of
this section; or
(c) Each program or each object classification required under
subsection (3) of this section. + }
{ - (4) - } { + (6) + } { - Thereafter - } { + Except
as provided in ORS 294.326, 294.440, 294.450 and 294.480 and
sections 18 and 22 of this 2011 Act, after the governing body has
enacted the ordinances or resolutions necessary to adopt the
budget as required under this section, + } { - no greater - }
{ + an + } expenditure, or encumbrance if encumbrance accounting
is used, of public money { - shall - } { + may not + } be
made for any { - specific - } purpose { - other - } { + in
an amount greater + } than the amount appropriated { - therefor
except as provided in ORS 294.326, 294.440, 294.450 and
294.480 - } .
{ - (5) - } { + (7) + } { - The determination of - }
{ + The governing body of a municipal corporation shall
record + } the amount or rate of ad valorem property taxes to be
certified { - shall be entered in the proper records of the
governing body - } { + and the purposes for which the taxes
will be used + }. Except as provided in ORS 294.437, { - no
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greater tax than that so entered upon the record shall be
certified by - } the municipal corporation { - proposing the
tax - } { + may not certify ad valorem property taxes in an
amount or rate greater than the amount or rate recorded + } for
the { - purpose or - } purposes indicated.
{ - (6) Nothing contained in this section shall preclude a
governing body during the fiscal year or budget period by
appropriate ordinance or resolution, after public hearing, from
adjusting budgeted resources and reducing appropriations to
reflect a decrease in available resources. - }
{ - (7)(a) - } { + (8)(a) + } The governing body { + of a
municipal corporation + } shall determine, make and declare ad
valorem property taxes under subsections (1) and (2) of this
section as a rate per $1,000 of assessed value if the taxes are
operating taxes or rate-based local option taxes { - as a rate
per $1,000 of assessed value - } .
(b) The governing body shall determine, make and declare ad
valorem property taxes under subsections (1) and (2) of this
section as an amount if the taxes are { - being - } certified
as amount-based local option taxes, to pay principal and interest
on exempt bonded indebtedness or to pay other government
obligations described in section 11 (5), Article XI of the Oregon
Constitution.
SECTION 14. ORS 294.440 is amended to read:
294.440. { - Whenever the board of directors of any school
district or the board of education of any community college
district has declared the existence of an emergency necessitating
a greater expenditure of public money for any specific purpose or
purposes than the amount appropriated therefor in order to
provide or maintain and operate, or both, adequate school or
college facilities, supplies and personnel for the proper
instruction of the pupils who are attending or will attend the
public schools or college within such district during the
remainder of the budget year, such board may make excess
expenditures for such specific purpose or purposes beyond the
amount appropriated therefor to the extent that all funds for
such excess expenditures are: - }
{ - (1) Advanced or committed to such district by
apportionment, grant, contribution or allocation from the United
States, or any agency thereof. In connection therewith, the
district may enter into and carry out any plan of financing
sponsored by the United States, or any agency thereof, upon such
terms and conditions and subject to such lawful rules and
regulations as may be prescribed by the United States, or a
proper agency thereof; - }
{ - (2) Made available to a common or union high school
district by the education service district board from an
emergency aid fund established under ORS 334.370. - }
{ + (1)(a) The board of directors of a school district or the
board of education of a community college district may not make
an emergency expenditure for specific purposes that is greater
than the amount appropriated for the purposes under ORS 294.435
unless the board:
(A) Declares the existence of an emergency necessitating a
greater expenditure of public money for one or more of the
purposes described in subsection (2) of this section; and
(B) Adopts a resolution appropriating funds for the emergency
expenditure.
Enrolled House Bill 2425 (HB 2425-A) Page 18
(b) An emergency expenditure under paragraph (a) of this
subsection is allowable to the extent that all funds for the
emergency expenditure are:
(A) Advanced or committed to the district by apportionment,
grant, contribution or allocation from the United States or an
agency of the United States; or
(B) Made available to a common or union high school district by
the education service district board from an emergency aid fund
established under ORS 334.370.
(2) A school district or a community college district may
appropriate an emergency expenditure under this section for the
specific purposes of providing, maintaining and operating school
or college facilities, supplies and personnel for the instruction
of the pupils attending the public schools or college in the
district during the remainder of the budget year.
(3) For purposes of subsection (1)(b)(A) of this section, a
school district or community college district may enter into and
carry out a plan of financing sponsored by the United States or
an agency of the United States upon terms and conditions and
subject to rules and regulations prescribed by the United States
or the agency. + }
SECTION 15. ORS 294.445 is amended to read:
294.445. (1) A municipal corporation shall record its revenues
and expenditures, on a fund by fund basis, using { - either - }
the cash basis, the modified accrual basis or the accrual basis
of accounting { + , at the discretion of the municipal
corporation + }.
(2) { - The selection of the basis of accounting is left to
the discretion of each municipal corporation. Any change in the
basis of accounting shall be clearly set forth in the budget
message for the fiscal year or budget period in which the change
is contemplated and the reasons for the change and its effect on
the operations of the municipal corporation shall be explained.
Once a new - } { + The + } basis of accounting { - is
adopted - } { + used by a municipal corporation + } { - , it
shall - } { + must + } be { - followed - } { + used + } in
the { + current + } year or period { - for which the budget
was prepared - } and { + in + } each succeeding year or period
{ - thereafter - } until { + the basis is + } changed in a
subsequent budget.
{ + (3) + } { - Such - } { + A + } change { + in a
municipal corporation's basis of accounting + } must be published
as { - provided in - } { + required under + } ORS 294.416
{ - (3) - } .
SECTION 16. ORS 294.450 is amended to read:
294.450. Subject to the provisions { - contained in - }
{ + of + } the charter of { - any - } { + a + } city or
county or { - in any - } { + a + } law relating to municipal
corporations:
(1) Except as provided in subsection (2) of this section,
transfers of appropriations may be made within a { - given - }
fund when authorized by { - official resolution or - }
ordinance { + or resolution + } of the governing body { + of a
municipal corporation + }. The { - resolution or ordinance
shall - } { + ordinance or resolution must + } state the need
for the transfer, the purpose for the authorized expenditure and
the amount { - of appropriation - } transferred.
(2) Transfers of general operating contingency appropriations
{ - which - } { + that + } in aggregate during a fiscal year
or budget period exceed 15 percent of the total appropriations of
Enrolled House Bill 2425 (HB 2425-A) Page 19
the fund { + contained in the original budget adopted by the
governing body of the municipal corporation for the fiscal year
or budget period + } may be made only after adoption of a
supplemental budget prepared for
{ - that - } { + the + } purpose. { - All other transfers
of general operating contingencies are subject to subsection (1)
of this section. - }
(3) Transfers of appropriations or of appropriations and
{ - a like - } { + an equal + } amount of budget resources may
be made between funds of the municipal corporation when
authorized by { - an official resolution or - } ordinance
{ + or resolution + } of the governing body. The
{ - resolution or ordinance shall - } { + ordinance or
resolution must + } state the need for the transfer, the purpose
for the authorized expenditures { - embodied - } in the
appropriation and the amount { - of appropriation - }
transferred.
(4) { - The transfers referred to in - } This section
{ - apply - } { + applies only + }to transfers { - which
occur - } { + made + } after { - the - } { + a + } budget
has been approved and { - which are made - } during the fiscal
year or budget period for which the appropriations are made.
{ - Nothing in this section shall prohibit or regulate lawful
transfers which have been budgeted in accordance with the local
budget law. - }
{ - (5) When a municipal corporation imposes taxes, fees or
charges that, in accordance with applicable law or an
intergovernmental agreement under ORS chapter 190, are required
to be paid, on a pass-through basis, to another municipal
corporation, the municipal corporation that imposes the taxes,
fees or charges shall include the taxes, fees or charges in its
budget and shall appropriate the estimated amount generated
thereby. The appropriation shall take the form of an expense of
the municipal corporation that imposes the taxes, fees or
charges. If the actual amount collected from the taxes, fees or
charges during a fiscal year or budget period exceeds the
estimated amount included in the imposing municipal corporation's
budget for the fiscal year or budget period, then upon
determining that such excess exists the municipal corporation
imposing the taxes, fees or charges shall appropriate such excess
by means of a resolution or ordinance of its governing body, and
no further action shall be required under ORS 294.305 to 294.565
to lawfully budget, appropriate or expend such excess. - }
SECTION 17. { + Section 18 of this 2011 Act is added to and
made a part of ORS 294.305 to 294.565. + }
SECTION 18. { + (1) A municipal corporation imposing taxes,
fees or charges that in accordance with applicable law or an
intergovernmental agreement under ORS chapter 190 must be paid on
a pass-through basis to another municipal corporation shall
include the taxes, fees or charges in its budget and appropriate
the estimated amount generated by the taxes, fees or charges.
(2) The appropriation required under subsection (1) of this
section must take the form of an expense of the municipal
corporation imposing the taxes, fees or charges.
(3) If the actual amount collected from the taxes, fees or
charges during a fiscal year or budget period exceeds the
estimated amount included in the budget of the municipal
corporation imposing the taxes, fees or charges for the fiscal
year or budget period, upon determining that the excess exists,
the governing body of the municipal corporation shall appropriate
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the excess by means of an ordinance or resolution and no further
action is required under ORS 294.305 to 294.565 to budget,
appropriate or expend the excess. + }
SECTION 19. ORS 294.455 is amended to read:
294.455. { - If property has been involuntarily converted or
destroyed during the current year or current budget period or if,
as a result of civil disturbance, fire, flood, earthquake or
other calamity or natural disaster, it is necessary for a
municipal corporation to expend funds, receive grants or borrow
moneys that were not included in the budget for the current year
or current budget period, authorization of all matters necessary
in order for the municipal corporation to receive those grants or
borrow those moneys may be made by ordinance or resolution of the
governing body, and appropriations for the estimated expenditures
out of any source of available funds, including but not limited
to unappropriated fund balances, shall be made by resolution or
ordinance in the same manner as provided in ORS 294.450 (1), or
by supplemental budget as provided by ORS 294.480 (3) and (4).
When prompt action is necessary to protect the public health or
safety following the involuntary conversion or destruction of
property or the occurrence of a calamity or natural disaster
and - }
{ + (1) As necessary to respond to an emergency situation,
the governing body of a municipal corporation may:
(a) Adopt an ordinance or resolution authorizing the municipal
corporation to receive grants or borrow moneys not included in
the budget of the municipal corporation for the current year or
current budget period; and
(b) Make appropriations for estimated expenditures out of any
source of available funds, including unappropriated fund
balances, by ordinance or resolution in the same manner as
provided in ORS 294.450 (1), or by supplemental budget as
provided in ORS 294.480 (3).
(2) + } If { - it is not practical to convene - } a meeting
of the governing body of { - the - } { + a + } municipal
corporation { + is not practical in an emergency situation + },
the chief executive officer of the municipal corporation may, by
written order, authorize the immediate expenditure of funds from
any available source { - to redress the situation that
threatens the - } { + to respond to a threat to + }public
health or safety.
{ + (3) As used in this section, 'emergency situation' means:
(a) Involuntary conversion or destruction of the property of a
municipal corporation;
(b) Civil disturbance;
(c) Natural disaster; or
(d) Any public calamity. + }
SECTION 20. ORS 294.480 is amended to read:
294.480. { - (1) Notwithstanding requirements as to estimates
of and limitation on expenditures, the governing body of any
municipal corporation may make a supplemental budget for the
fiscal year or budget period for which the regular budget has
been prepared under one or more of the following
circumstances: - }
{ - (a) An occurrence or condition which had not been
ascertained at the time of the preparation of a budget for the
current year or current budget period which requires a change in
financial planning. - }
{ - (b) A pressing necessity which could not reasonably be
foreseen at the time of the preparation of the budget for the
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current year or current budget period which requires prompt
action. - }
{ - (c) Funds were made available by another unit of federal,
state or local government and the availability of such funds
could not have been reasonably ascertained at the time of the
preparation of the budget for the current year or current budget
period. - }
{ - (d) A request for services or facilities, the cost of
which shall be supplied by a private individual, corporation or
company or by another governmental unit and the amount of the
request could not have been accurately ascertained at the time of
the preparation of the budget for the current year or current
budget period. - }
{ + (1) Notwithstanding requirements as to estimates of and
limitation on expenditures, during the fiscal year or budget
period for which the original budget was adopted, the governing
body of a municipal corporation may make one or more supplemental
budgets under any of the following circumstances:
(a) An occurrence or condition that is not ascertained when
preparing the original budget or a previous supplemental budget
for the current year or current budget period and that requires a
change in financial planning.
(b) A pressing necessity that could not reasonably be foreseen
when preparing the original budget or a previous supplemental
budget for the current year or current budget period and that
requires prompt action.
(c) Funds that are made available by another unit of federal,
state or local government and the availability of which could not
reasonably be foreseen when preparing the original budget or a
previous supplemental budget for the current year or current
budget period.
(d) A request for services or facilities the cost of which is
to be supplied by a private individual, corporation or company or
by another governmental unit and the amount of which could not be
accurately estimated when preparing the original budget or a
previous supplemental budget for the current year or current
budget period. + }
(e) Proceeds from the involuntary destruction, involuntary
conversion, or sale of property { - has necessitated - }
{ + that necessitates + } the immediate purchase, construction
or acquisition of different facilities in order to carry on
{ - the - } governmental
{ - operation - } { + operations + }.
(f) Ad valorem property taxes { + that + } are received during
the fiscal year or budget period in an amount sufficiently
greater than the amount estimated to be collected { + such + }
that the difference will significantly affect the level of
government operations to be funded by { - those - }
{ + the + } taxes as provided in the { + original budget or a
previous supplemental + } budget for the current year or current
budget period.
(g) A local option tax described in ORS 294.437 { + that + }
is certified for extension on the assessment and tax roll under
ORS 310.060 for the fiscal year or budget period in which the
local option tax measure is approved by voters.
{ + (h) A reduction in available resources that requires the
governing body to reduce appropriations in the original budget or
a previous supplemental budget for the current year or current
budget period. + }
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(2) A supplemental budget may not extend beyond the end of the
fiscal year or budget period during which it is submitted.
{ - (3) When the estimated expenditures contained in a
supplemental budget for a fiscal year or budget period differ by
less than 10 percent of any one of the individual funds contained
in the regular budget for that fiscal year or budget period that
is being changed in the supplemental budget, the governing body
of the municipal corporation may adopt the supplemental budget at
a regular meeting of the governing body. Notice of the regular
meeting, including sufficient detail on revenues and
expenditures, shall be published by one or more of the methods
permitted under ORS 294.311 (35) not less than five days prior to
the meeting. Following the meeting, the governing body shall
make additional appropriations and may thereafter make additional
expenditures as authorized by such appropriations. - }
{ - (4) When the estimated expenditures contained in a
supplemental budget for a fiscal year or budget period differ by
10 percent or more of any one of the individual funds contained
in the regular budget for that fiscal year or budget period that
is being changed in the supplemental budget, the supplemental
budget, or a summary thereof, shall be published. The governing
body shall then hold a public hearing on the supplemental budget.
Publication of the budget and notice of the hearing shall be
given in the manner provided in ORS 294.421. Following the
hearing, the governing body shall make additional appropriations
and may thereafter make additional expenditures as authorized by
the appropriations. In counties having a tax supervising and
conservation commission, a supplemental budget is not required to
be submitted to the commission prior to adoption and the
commission is not required to hold a hearing on the supplemental
budget. - }
{ + (3)(a) If the amended estimated expenditures contained in
an individual fund that is being changed by a supplemental budget
differ by 10 percent or less from the expenditures in the budget
as most recently amended prior to the supplemental budget, the
governing body of the municipal corporation may adopt the
supplemental budget at a regular meeting of the governing body.
(b) Notice of a regular meeting convened pursuant to paragraph
(a) of this subsection, including a statement that a supplemental
budget will be considered at the meeting, must be published not
less than five days before the meeting.
(c) Additional expenditures contained in a supplemental budget
described in this subsection may not be made unless the governing
body of the municipal corporation enacts appropriation ordinances
or resolutions authorizing the expenditures. The ordinances or
resolutions must state the need for and the purpose and amount of
the appropriation. + }
{ - (5) - } { + (4) + } Except as provided in ORS 294.437,
the making of a supplemental budget does not authorize the
governing body to increase the municipal corporation's total ad
valorem property taxes above the amount or rate published with
the regular budget and certified to the assessor under ORS
310.060 in conjunction with the regular budget for the fiscal
year or for each fiscal year of the budget period to which the
supplemental budget applies.
{ + (5) A supplemental budget is not required for the
expenditure of funds authorized under ORS 294.326 (2) to
(10). + }
SECTION 21. { + Section 22 of this 2011 Act is added to and
made a part of ORS 294.305 to 294.565. + }
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SECTION 22. { + (1)(a) If the amended estimated expenditures
contained in an individual fund that is being changed by a
supplemental budget made under ORS 294.480 differ by more than 10
percent from the expenditures in the budget as most recently
amended prior to the supplemental budget, the governing body of
the municipal corporation shall hold a public hearing on the
supplemental budget.
(b) Notice of the hearing required under paragraph (a) of this
subsection, including a summary of the changes proposed in the
funds that differ by more than 10 percent from the expenditures
in the budget as most recently amended prior to the supplemental
budget, must be published not less than five days before the
meeting.
(c) After the hearing, additional expenditures contained in the
supplemental budget described in this subsection may not be made
unless the governing body of the municipal corporation enacts
appropriation ordinances or resolutions authorizing the
expenditures. The ordinances or resolutions must state the need
for and the purpose and amount of the appropriation.
(2) In counties having a tax supervising and conservation
commission, the governing body of a municipal corporation may
adopt a supplemental budget without submitting the budget to the
commission or holding a hearing on the budget.
(3) The Department of Revenue shall prescribe the form of the
notice required under subsection (1) of this section. + }
SECTION 23. ORS 294.500 is amended to read:
294.500. { + (1) + } { - The Department of Revenue may, - }
On petition by 10 interested taxpayers or { + a + } municipal
corporation, { + the Department of Revenue may + }issue a
declaratory ruling with respect to the validity or applicability
to any person, municipal corporation or state of facts of any
rule { - or regulation promulgated by it - } { + adopted by
the department + }.
{ + (2) + } The { - department shall prescribe by rule - }
{ + Department of Revenue shall adopt rules prescribing + } the
form, content and procedure for submission, consideration and
disposition of { - such - } petitions { + under subsection (1)
of this section + }.
{ + (3) The Department of Revenue must afford interested
parties a + } full opportunity for hearing { - shall be
afforded to interested parties - } { + on the subject of a
petition before issuing a declaratory ruling under subsection (1)
of this section + }.
{ + (4)(a) + }A declaratory ruling { - shall bind - }
{ + issued under subsection (1) of this section binds + } the
department and all parties to the proceedings on the state of
facts alleged, unless it is altered or set aside by a court.
{ + (b) + } A { + declaratory + } ruling { - shall be - }
{ + is + } subject to review in the Oregon Tax Court in the
manner provided by ORS 294.515 and
{ - shall be - } { + is + } subject to the same limitations
{ - as appeals provided in - } { + under + } ORS 294.515
{ + as appeals + }.
SECTION 24. ORS 294.555 is amended to read:
294.555. (1) On or before July 15 of each year, or upon such
other date as the Department of Revenue shall designate, each
civil subdivision in the state that does not levy an ad valorem
property tax, that is subject to the Local Budget Law and that
prepares an annual budget shall file with the Department of
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Revenue a copy of the resolution adopting the budget and of the
resolution making appropriations.
(2) On or before July 15 of the first fiscal year of the budget
period, or upon such other date as the Department of Revenue
{ - shall designate - } { + designates + }, each civil
subdivision in the state that does not levy an ad valorem
property tax, that is subject to the Local Budget Law and that
prepares a biennial budget shall file with the Department of
Revenue a copy of the resolution adopting the budget and of the
resolution making appropriations.
(3) Each municipal corporation subject to the Local Budget Law
that certifies an ad valorem property tax shall file with the
county assessor as provided in ORS 310.060 { - the
following - } :
(a) Two copies each of the notice required { - to be
filed - } under ORS 310.060 and the categorization certification.
(b) Two copies of a statement confirming the ad valorem
property taxes approved by the budget committee.
(c) Two copies each of the { - following - } ordinances or
resolutions { - : - } to adopt the budget { - ; - } { + , + }
to make the appropriations { - ; - } { + , + } to itemize and
categorize the taxes { - ; - } and to certify the taxes.
(4) As soon as { - received, - } the county assessor
{ - shall forward one copy of each of - } { + receives + } the
documents listed in subsection (3) of this section { + , the
county assessor shall forward one copy of each document + } to
the Department of Revenue.
{ + (5)(a) Not later than September 30 of each year, a
municipal corporation that certifies a tax on property under ORS
310.060 shall provide a complete copy of the budget document of
the municipal corporation to the clerk of the county in which the
principal office of the taxing district is located and, if the
taxing district is located in more than one county, to the clerk
of each county in which any part of the taxing district is
located.
(b) Notwithstanding paragraph (a) of this subsection, a
municipal corporation located in a county in which there is no
county clerk shall submit the budget document to the county
assessor in the county.
(c) Notwithstanding paragraphs (a) and (b) of this subsection,
a municipal corporation that is subject to the jurisdiction of a
tax supervising and conservation commission under ORS 294.625
shall submit a copy of the budget document to the commission. + }
{ - (5) - } { + (6)(a) + }Each civil subdivision and
municipal corporation that is subject to the Local Budget Law
shall retain a true copy of its budget { - for, - } { + :
(A) + } If an annual budget is prepared, { + for + } two years
following the end of the fiscal year { + ; + } or { - , - }
{ + (B) + } If a biennial budget is prepared, { + for + }
two budget periods following { + the end of + } the budget
period for which the biennial budget was prepared.
{ + (b) + } During { - this - } { + the + } period { +
of retention + }, the civil subdivision or municipal corporation
shall send a copy of the budget to the county assessor,
{ + the + } Department of Revenue or the Division of Audits
{ - if requested to do so by one of those entities - } { +
upon request + }.
SECTION 25. ORS 294.608 is amended to read:
294.608. (1) The governing body of { - each - } { + a + }
county with a population of 500,000 or more inhabitants, based on
Enrolled House Bill 2425 (HB 2425-A) Page 25
the most recently available data published or officially provided
by the Portland State University Population Research Center,
shall { - elect to - } :
(a) { - Seek to - } Establish a tax supervising and
conservation commission under ORS 294.710; or
(b) Require each municipal corporation { + that would be under
the jurisdiction of a tax supervising and conservation commission
if a commission were established in the county under paragraph
(a) of this subsection + } to submit to the county a { - copy
of the - } financial summary { - prepared under ORS 294.386 and
made available to the public under ORS 294.401 (9) - } { + of
the proposed budget in the format required under ORS 294.416 + }.
(2) { - Each - } { + A + } municipal corporation required
to submit a { - copy of the - } financial summary of the
municipal corporation { - shall - } { + must + } comply with
the requirement { - prior to - } { + before + } the date of
the first budget committee meeting of the municipal corporation
under ORS 294.401.
(3) { + (a) + } { - The copy of - } The financial summary
submitted to the county under this section { - shall - }
{ + must + } be in an electronic format that is compatible with
Internet publication.
{ + (b) + } The county shall publish all financial summaries
received from municipal corporations under this section on the
Internet website of the county.
SECTION 26. ORS 310.060 is amended to read:
310.060. (1) Not later than July 15 of each year,
{ - every - } { + a + } city, school district or other public
corporation authorized to levy or impose a tax on property shall
file a written notice certifying the ad valorem property tax rate
or the estimated amount of ad valorem property taxes to be
imposed by the taxing district and any other taxes on property
imposed by the taxing district on property subject to ad valorem
property taxation that are required or authorized to be placed on
the assessment and tax roll for the current fiscal year. The
notice { - shall - } { + must + } be accompanied by two
copies of a lawfully adopted ordinance or resolution that
categorizes the tax, fee, charge, assessment or toll as subject
to or not subject to the limits of section 11b, Article XI of the
Oregon Constitution, identified by the categories set forth in
ORS 310.150.
(2) For { - any - } ad valorem property taxes levied by
{ - the - } { + a + } taxing district, the notice
{ - shall - } { + required under subsection (1) of this
section must + } state as separate items:
(a) The taxing district's rate of ad valorem property taxation
that is within the permanent rate limitation imposed by section
11 (3), Article XI of the Oregon Constitution, or within the
statutory rate limit determined in ORS 310.236 (4)(b) or 310.237,
if applicable;
(b) The total rate or amount of the taxing district's local
option taxes imposed pursuant to ORS 280.040 to 280.145 that have
a term of five years or less and that are not for capital
projects;
(c) The total amount of the taxing district's local option
taxes that are for capital projects;
(d) The total amount levied for the payment of bonded
indebtedness or interest { - thereon - } { + on bonded
indebtedness + } that is not subject to limitation under section
Enrolled House Bill 2425 (HB 2425-A) Page 26
11 (11) or section 11b, Article XI of the Oregon Constitution;
and
(e) The total amount levied that is subject to section 11b,
Article XI of the Oregon Constitution, but that is not subject to
the permanent ad valorem property tax rate limit described in
section 11 (3), Article XI of the Oregon Constitution, because
the amount levied is to be used to repay:
(A) Principal and interest for { - any - } { + a + } bond
issued before December 5, 1996, and secured by a pledge or
explicit commitment of ad valorem property taxes or a covenant to
levy or collect ad valorem property taxes;
(B) Principal and interest for any other formal, written
borrowing of moneys executed before December 5, 1996, for which
ad valorem property tax revenues have been pledged or explicitly
committed, or that are secured by a covenant to levy or collect
ad valorem property taxes;
(C) Principal and interest for { - any - } { + a + } bond
issued to refund an obligation described in subparagraph (A) or
(B) of this paragraph; or
(D) Local government pension and disability plan obligations
that commit ad valorem property taxes.
(3)(a) The notice { - shall also - } { + required under
subsection (1) of this section must + } list each rate or amount
subject to the limits of section 11b, Article XI of the Oregon
Constitution, identified by the categories set forth in ORS
310.150.
(b) If an item described in subsection (2) of this section is
allocable to more than one category described in ORS 310.150, the
notice { - shall - } { + must + } list separately the portion
of each item allocable to each category.
(4) For { - any - } other taxes on property imposed by the
taxing district, the notice { - shall - } { + must + } state:
(a) The total amount of money to be raised by each other tax,
in the aggregate or on a property by property basis, as
appropriate.
(b) Each amount that is subject to the limits of section 11b,
Article XI of the Oregon Constitution, identified by the
categories set forth in ORS 310.150.
(5) For { - any - } { + a + } district authorized by law to
place { - any - } other fees, charges, assessments or tolls on
the assessment and tax roll, the notice { - shall - }
{ + must + } state the total amount of money to be raised on a
property by property basis.
(6) In addition to the notice required under subsection (1) of
this section, { - any - } { + a + } taxing district that is
subject to the Local Budget Law shall also provide the documents
required { - by - } { + under + } ORS 294.555 (3).
(7) { - (a) - } Not later than July 15 of each year, the
taxing district shall give the notice and documents described in
this section to the assessor of the county in which the principal
office of the taxing district is located and, if the taxing
district is located in more than one county, to the assessor of
each county in which any part of the taxing district is located.
{ - Not later than September 30 of each year, the taxing
district shall provide a complete copy of the budget document to
the clerk of the county in which the principal office of the
taxing district is located and, if the taxing district is located
in more than one county, to the clerk of each county in which any
part of the taxing district is located. - }
Enrolled House Bill 2425 (HB 2425-A) Page 27
{ - (b) If there is no county clerk in a county to which a
taxing district is required by paragraph (a) of this subsection
to submit a budget document, then the taxing district shall
submit the budget document to the county assessor in that
county. - }
{ - (c) If the taxing district is subject to the jurisdiction
of a tax supervising and conservation commission under ORS
294.625, then the taxing district shall submit a copy of its
budget to the tax supervising and conservation commission in lieu
of filing a copy of the budget with the county clerk of the
county under paragraph (a) of this subsection or with the county
assessor of the county under paragraph (b) of this
subsection. - }
(8) The Department of Revenue shall prescribe the form of
notice required { - by - } { + under + } this section. All
amounts { - shall - } { + contained in the notice must + } be
stated in dollars and cents or ad valorem property tax rates in
dollars and cents per thousand dollars of assessed value, as
required by law. If the notice is given to the assessor, clerk or
tax supervising and conservation commission of more than one
county, a copy of each other such notice given { - shall - }
{ + must + } accompany every notice given.
(9) For good and sufficient reason, { - the - } { + a + }
county assessor may extend the time for the giving of the notice
{ + required under subsection (1) of this section + } or
correcting an erroneous certification for the current year up to
but not later than October 1 as the county assessor considers
reasonable.
SECTION 27. ORS 294.311 is amended to read:
294.311. As used in ORS 294.305 to 294.565, unless the context
requires otherwise:
(1) 'Accrual basis' means the recording of the financial
effects on a municipal corporation of transactions and other
events and circumstances that have cash consequences for the
municipal corporation in the periods in which those transactions,
events and circumstances occur, rather than only in the periods
in which cash is received or paid by the municipal corporation.
(2) 'Activity' means a specific and distinguishable service
performed by one or more organizational components of a municipal
corporation to accomplish a function for which the municipal
corporation is responsible.
(3) 'Appropriation' means an authorization granted by the
governing body to make expenditures and to incur obligations for
specific purposes. An appropriation is limited to a single fiscal
year for municipal corporations preparing annual budgets, or to
the budget period for municipal corporations preparing biennial
budgets.
(4) 'Basis of accounting' means the cash basis, the modified
accrual basis or the accrual basis.
(5) 'Budget' means a plan of financial operation embodying an
estimate of expenditures for a given period or purpose and the
proposed means of financing the estimated expenditures.
(6) 'Budget document' means the estimates of expenditures and
budget resources as set forth on the estimate sheets, tax levy
and the financial summary.
(7) 'Budget period' means, for municipal corporations with the
power to levy a tax upon property, the two-year period commencing
on July 1 and closing on June 30 of the second calendar year next
following, and for all other municipal corporations, an
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accounting period of 24 months ending on the last day of any
month.
(8) 'Budget resources' means resources to which recourse can be
had to meet obligations and expenditures during the fiscal year
or budget period covered by the budget.
(9) 'Cash basis' means a basis of accounting under which
transactions are recognized only in the period during which cash
is received or disbursed.
(10) 'Current budget period' means the budget period in
progress.
(11) 'Current year' means the fiscal year in progress.
(12) 'Encumbrance accounting' means the method of accounting
under which outstanding encumbrances are recognized as reductions
of appropriations and the related commitments are carried in a
reserve for encumbrances until liquidated, either by replacement
with an actual liability or by cancellation. This method of
accounting may be used as a modification to the accrual basis of
accounting in accordance with generally accepted accounting
principles.
(13) 'Encumbrances' means obligations in the form of purchase
orders, contracts or salary commitments which are chargeable to
an appropriation and for which a part of the appropriation is
reserved. Obligations cease to be encumbrances when paid or when
the actual liability is set up.
(14) 'Ensuing budget period' means the budget period following
the current budget period.
(15) 'Ensuing year' means the fiscal year following the current
year.
(16) 'Expenditure' means, if the accounts are kept on the
accrual basis or the modified accrual basis, decreases in net
financial resources and may include encumbrances. If the accounts
are kept on the cash basis, the term covers only actual
disbursement, the drawing of the check or warrant for these
purposes and not encumbrances, except that deferred employee
compensation shall be included as a { - personal - }
{ + 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.
Enrolled House Bill 2425 (HB 2425-A) Page 29
(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, { - personal - } { + 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.
Enrolled House Bill 2425 (HB 2425-A) Page 30
(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.
SECTION 28. ORS 294.910 is amended to read:
294.910. (1) Each council of governments shall prepare
estimates of expenditures for the ensuing year.
(2) The estimates required by subsection (1) of this section
shall be prepared by organizational unit or by program.
(3) Estimates required by subsection (1) of this section and
prepared by organizational unit shall be detailed under separate
object classifications of { - personal - } { + personnel + }
services, materials and services and capital outlay. Separate
estimates shall be made for special payments, debt service,
interfund revenue transfers, operating expenses and general
capital outlays which cannot reasonably be allocated to an
organizational unit.
(4) Estimates required by subsection (1) of this section and
prepared by program shall be arranged for each activity of a
program. Estimates under each activity shall be detailed under
separate object classifications of { - personal - }
{ + personnel + } services, materials and services and capital
outlay. Separate estimates shall be made for each program for
special payments, debt service, interfund revenue transfers,
operating expenses and general capital outlays which cannot
reasonably be allocated to an activity within a function.
(5) Estimates of expenditures for { - personal - }
{ + personnel + } services, other than services of persons who
receive an hourly wage or who are hired on a part-time basis,
shall list the salary for each officer and employee, except that
employees of like classification and salary range in each
organizational unit or activity may be listed by the number of
those employees, the limits of each salary range and the amount
of their combined salaries.
Enrolled House Bill 2425 (HB 2425-A) Page 31
(6) The general capital outlay estimate shall include separate
amounts for land, buildings, improvements to land other than
buildings and machinery and equipment which cannot be reasonably
allocated to an organizational unit or activity.
(7) The debt service estimates shall include separate amounts
for principal and interest of each bond issue in each fund.
(8) If the estimates required by subsection (1) of this section
are not prepared by fund, there shall be prepared a summary which
cross-references programs or organizational units to the
appropriations required by ORS 294.435.
SECTION 29. ORS 455.210 is amended to read:
455.210. (1) Fees shall be prescribed as required by ORS
455.020 for plan review and permits issued by the Department of
Consumer and Business Services for the construction,
reconstruction, alteration and repair of prefabricated structures
and of buildings and other structures and the installation of
mechanical heating and ventilating devices and equipment. The
fees may not exceed 130 percent of the fee schedule printed in
the ' Uniform Building Code,' 1979 Edition, and in the 'Uniform
Mechanical Code,' 1979 Edition, both published by the
International Conference of Building Officials. Fees are not
effective until approved by the Oregon Department of
Administrative Services.
(2) Notwithstanding subsection (1) of this section, the maximum
fee the Director of the Department of Consumer and Business
Services may prescribe for a limited plan review for fire and
life safety as required under ORS 479.155 shall be 40 percent of
the prescribed permit fee.
(3)(a) A municipality may adopt by ordinance or regulation such
fees as may be necessary and reasonable to provide for the
administration and enforcement of any specialty code or codes for
which the municipality has assumed responsibility under ORS
455.148 or 455.150. A municipality shall give the director notice
of the proposed adoption of a new or increased fee under this
subsection. The municipality shall give the notice to the
director at the time the municipality provides the opportunity
for public comment under ORS 294.160 regarding the fee or, if the
proposed fee is contained in an estimate of municipal budget
resources, at the time notice of the last budget meeting is
published { - in a newspaper - } under ORS 294.401.
(b) Ten or more persons or an association with 10 or more
members may appeal the adoption of a fee described in this
subsection to the Director of the Department of Consumer and
Business Services. The persons or association must file the
appeal no later than 60 days after the director receives notice
of the proposed adoption of the fee from the municipality under
paragraph (a) of this subsection. However, if the municipality
failed to give notice to the director, an appeal may be filed
with the director within one year after adoption of the new or
increased fee. Upon receiving a timely appeal, the director
shall, after notice to affected parties and hearing, review the
municipality's fee adoption process and the costs of
administering and enforcing the specialty code or codes referred
to in paragraph (a) of this subsection. The director shall
approve the fee if the director feels the fee is necessary and
reasonable. If the director does not approve the fee upon appeal,
the fee is not effective. The appeal process provided in this
paragraph does not apply to fees that have been submitted for a
vote and approved by a majority of the electors voting on the
question.
Enrolled House Bill 2425 (HB 2425-A) Page 32
(c) Fees collected by a municipality under this subsection
shall be used for the administration and enforcement of a
building inspection program for which the municipality has
assumed responsibility under ORS 455.148 or 455.150.
(d) For purposes of paragraph (b) of this subsection, in
determining whether a fee is reasonable the director shall
consider whether:
(A) The fee is the same amount as or closely approximates the
amount of the fee charged by other municipalities of a similar
size and geographic location for the same level of service;
(B) The fee is calculated with the same or a similar
calculation method as the fee charged by other municipalities for
the same service;
(C) The fee is the same type as the fee charged by other
municipalities for the same level of service; and
(D) The municipality, in adopting the fee, complied with ORS
294.160, 294.361 and 294.401 and this section and standards
adopted by the director under ORS 455.148 (11) or 455.150 (11).
(4) Notwithstanding any other provision of this chapter:
(a) For the purpose of partially defraying state administrative
costs, there is imposed a surcharge in the amount of four percent
of the total permit fees or, if the applicant chooses to pay an
hourly rate instead of purchasing a permit, four percent of the
total hourly charges collected.
(b) For the purpose of partially defraying state inspection
costs, there is imposed a surcharge in the amount of two percent
of the total permit fees or, if the applicant chooses to pay an
hourly rate instead of purchasing a permit, two percent of the
total hourly charges collected.
(c) For the purpose of defraying the cost of administering and
enforcing the state building code, there is imposed a surcharge
on permit fees and on hourly charges collected instead of permit
fees. The surcharge may not exceed one percent of the total
permit fees or, if the applicant chooses to pay an hourly rate
instead of purchasing a permit, one percent of the total hourly
charges collected.
(d) For the purpose of defraying the cost of developing and
administering the electronic building codes information system
described in ORS 455.095 and 455.097, there is imposed a
surcharge in the amount of five percent on permit fees, or if the
applicant chooses to pay an hourly rate instead of purchasing a
permit, five percent of the total hourly charges collected.
However, the department may adopt rules to waive a portion of the
surcharge imposed under this paragraph if the department
determines that the amount collected by the surcharge imposed
under this paragraph exceeds the actual cost to the department of
developing and administering the electronic building codes
information system described in ORS 455.095 and 455.097.
(5) Municipalities shall collect and remit surcharges imposed
under subsection (4) of this section to the director as provided
in ORS 455.220.
(6) The director shall adopt administrative rules to allow
reduced fees for review of plans that have been previously
reviewed.
SECTION 30. ORS 455.210, as amended by section 6, chapter 69,
Oregon Laws 2007, is amended to read:
455.210. (1) Fees shall be prescribed as required by ORS
455.020 for plan review and permits issued by the Department of
Consumer and Business Services for the construction,
reconstruction, alteration and repair of prefabricated structures
Enrolled House Bill 2425 (HB 2425-A) Page 33
and of buildings and other structures and the installation of
mechanical heating and ventilating devices and equipment. The
fees may not exceed 130 percent of the fee schedule printed in
the ' Uniform Building Code,' 1979 Edition, and in the 'Uniform
Mechanical Code,' 1979 Edition, both published by the
International Conference of Building Officials. Fees are not
effective until approved by the Oregon Department of
Administrative Services.
(2) Notwithstanding subsection (1) of this section, the maximum
fee the Director of the Department of Consumer and Business
Services may prescribe for a limited plan review for fire and
life safety as required under ORS 479.155 shall be 40 percent of
the prescribed permit fee.
(3)(a) A municipality may adopt by ordinance or regulation such
fees as may be necessary and reasonable to provide for the
administration and enforcement of any specialty code or codes for
which the municipality has assumed responsibility under ORS
455.148 or 455.150. A municipality shall give the director notice
of the proposed adoption of a new or increased fee under this
subsection. The municipality shall give the notice to the
director at the time the municipality provides the opportunity
for public comment under ORS 294.160 regarding the fee or, if the
proposed fee is contained in an estimate of municipal budget
resources, at the time notice of the last budget meeting is
published { - in a newspaper - } under ORS 294.401.
(b) Ten or more persons or an association with 10 or more
members may appeal the adoption of a fee described in this
subsection to the Director of the Department of Consumer and
Business Services. The persons or association must file the
appeal no later than 60 days after the director receives notice
of the proposed adoption of the fee from the municipality under
paragraph (a) of this subsection. However, if the municipality
failed to give notice to the director, an appeal may be filed
with the director within one year after adoption of the new or
increased fee. Upon receiving a timely appeal, the director
shall, after notice to affected parties and hearing, review the
municipality's fee adoption process and the costs of
administering and enforcing the specialty code or codes referred
to in paragraph (a) of this subsection. The director shall
approve the fee if the director feels the fee is necessary and
reasonable. If the director does not approve the fee upon appeal,
the fee is not effective. The appeal process provided in this
paragraph does not apply to fees that have been submitted for a
vote and approved by a majority of the electors voting on the
question.
(c) Fees collected by a municipality under this subsection
shall be used for the administration and enforcement of a
building inspection program for which the municipality has
assumed responsibility under ORS 455.148 or 455.150.
(d) For purposes of paragraph (b) of this subsection, in
determining whether a fee is reasonable the director shall
consider whether:
(A) The fee is the same amount as or closely approximates the
amount of the fee charged by other municipalities of a similar
size and geographic location for the same level of service;
(B) The fee is calculated with the same or a similar
calculation method as the fee charged by other municipalities for
the same service;
(C) The fee is the same type as the fee charged by other
municipalities for the same level of service; and
Enrolled House Bill 2425 (HB 2425-A) Page 34
(D) The municipality, in adopting the fee, complied with ORS
294.160, 294.361 and 294.401 and this section and standards
adopted by the director under ORS 455.148 (11) or 455.150 (11).
(4) Notwithstanding any other provision of this chapter:
(a) For the purpose of partially defraying state administrative
costs, there is imposed a surcharge in the amount of four percent
of the total permit fees or, if the applicant chooses to pay an
hourly rate instead of purchasing a permit, four percent of the
total hourly charges collected.
(b) For the purpose of partially defraying state inspection
costs, there is imposed a surcharge in the amount of two percent
of the total permit fees or, if the applicant chooses to pay an
hourly rate instead of purchasing a permit, two percent of the
total hourly charges collected.
(c) For the purpose of defraying the cost of administering and
enforcing the state building code, there is imposed a surcharge
on permit fees and on hourly charges collected instead of permit
fees. The surcharge may not exceed one percent of the total
permit fees or, if the applicant chooses to pay an hourly rate
instead of purchasing a permit, one percent of the total hourly
charges collected.
(5) Municipalities shall collect and remit surcharges imposed
under subsection (4) of this section to the director as provided
in ORS 455.220.
(6) The director shall adopt administrative rules to allow
reduced fees for review of plans that have been previously
reviewed.
SECTION 31. { + ORS 294.386, 294.418 and 294.483 are
repealed. + }
----------
Passed by House March 17, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 10, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2425 (HB 2425-A) Page 35
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2425 (HB 2425-A) Page 36
