20 2019 19 Presented by Oregon Department of Revenue Finance, - PDF document

1 Basic Local Budge Basic Local Budget La Law 20 2019 19 Presented by Oregon Department of Revenue Finance, Taxation & Exemptions 2 Finance, Taxation & Exemptions Team  Trains Local Officials on Local Budget Law  Answers Questions about Budget Law & Property Taxes  Provides Budgeting Manuals & Forms  Reviews Tax Certifications  Reviews District Budgets  Advises County Assessors & Tax Collectors on property tax law  and more 1

3 Agenda - 4 Phases in Budget Process 1 st Phase - Propose the budget 2 nd Phase - Approve the budget 3 rd Phase - Adopt the budget 4 th Phase - Changes after adoption 4 Districts Not Subject to Local Budget Law ORS 261 People’s utility districts ORS 440 Health districts ORS 545 Irrigation districts ORS 551 Diking districts ORS 553 Water control districts* ORS 554 District improvement companies or corporations ORS 568 Soil and water conservation districts* ORS 371 Special and Assessment road districts ORS 371 County Road district* ORS 372 Highway lighting districts ORS 547 Drainage districts 2017 OR Law Ch.26 Historic ghost towns as defined in ORS 221.862 * That will not impose taxes during the ensuing year . If district does impose property tax any year, it is subject to Local Budget Law . 2

5 Property Proper ty Local Local Go Govern rnment Tax C Ta Cycle June 30 th June 30 th Adopts Budget and Certifies Tax July 15 July 15 th th Assessor Assessor Tr Treasurer Appraises Distributes Property & Revenues Calculates Tax Sept. 25 Sept. 25 th th Tax Colle x Collect ctor Firs First P Paym ymen ent Sends Bills & Due Nov. 15 Due No 15 th th Oct. 25 th Oct. 25 th Collects Taxes 6 Purposes of Local Budget Law  Establish standard procedures  Outline programs & fiscal policies  Require estimates of resources & expenditures  Encourage citizen involvement  Control expenditure of public funds ORS 294.321 3

7 Why Follow Local Budget Law? A district that doesn’t follow LBL may not lawfully:  Expend money (with some exceptions)  Certify property taxes to the county assessor ORS 294.338 A property tax made contrary to LBL is voidable by the Oregon Tax Court if appealed by:  County Assessor  County Court  County Board of Commissioners  The Department of Revenue  Ten or more interested taxpayers ORS 294.461 8 DOR v. Umatilla County , otc2519 (1986) A por A portion of the 1 ion of the 1986-8 86-87 tax 7 tax le levy vy was v s voided b ided by the cour the court. Umatilla County f Umatilla County failed t iled to republish its republish its budget summar budget summary y to allo allow the boar w the board t d to im impose a pose a le levy amount higher than the vy amount higher than the amount published in amount published in it’s it’s budget summary . . budget summar 4

9 Civil Liability Any public official who expends public monies in excess of the amounts or for any other purpose than authorized by law shall be civilly liable for the return of the money, if there is malfeasance in office or willful or wanton neglect of duty. ORS 294.100 10 Cadastral Information Systems Unit (CISU) UPDATE:  The CISU web page about how to comply with ORS 308.225 when making changes to your boundaries has been updated.  For assistance in how to comply with the statute, please review the information at: www.oregon.gov/DOR/programs/property/Pages/boundary-change.aspx 5

11 Phase 1 Proposing the Budget Sample Budget Calendar 12 Exam Example Ac Acti tion on Com Comple lete Due Dat Due Date Appoint budget officer Jan. 10 1 Appoint budget committee (BC) Jan. 31 2 Prepare proposed budget March 7 3 Publish 1 st notice of BC meeting March 21 4 Publish 2 nd notice of BC meeting April 4 5 BC meeting & subsequent mtgs. if needed April 11 6 Publish notice of budget hearing May 15 7 Hold budget hearing May 23 8 Enact Resolutions to adopt, etc June 27 9 Submit tax certification documents By July 15* 10 Send copy of all budget documents to county clerk By Sept. 30* 11 * ORS ORS 305.820 305.820(2) sta states that that if an if any y deadl deadline ne that that need needs t s to be be filed led to tax coll tax collector r or or coun county fall lls on s on a a week eeken end or or holid holiday, the then the d the deadli adline ne is is extended t nded to the ne the next business siness day. 6

13 What is a Budget?  A financial plan  For one fiscal year (July 1 – June 30) or biennial budget period (July 1, 2018 – June 30, 2020)  Based on estimates of revenues & expenditures and other requirements The The budget is budget is the basis the basis for appr r appropriations, which opriations, which creat create the authority t the authority to spend spend publi public mone money y 14 Budget Layers OR ORGANIZ NIZATIONAL UN AL UNIT IT BUDGET BUDGET PR PROG OGRAM RAM & & ACTIVIT TIVITY BUDGET BUDGET BUDGET BUDGE BUDGET BUDGE FUND FUND FUND FUND PROG PR OGRA RAM OR ORGAN GANIZATI TION ONAL AL UNIT UNIT AC ACTIVITY OBJECT OBJECT OBJE OBJECT CLASSI SSIFI FICA CATI TION ON CLASSI ASSIFI FICATION TION LINE IT LINE ITEM EM LINE IT LINE ITEM EM DET DETAIL DETAIL DET 7

15 Prepare Proposed Budget  Designate budget officer (Who can serve?)  Budget Officer prepares budget under direction of Executive Officer or Governing Body 16 Budget is prepared by fund • A self-balancing set of accounts • Used to record estimated resources and requirements for specific activities and objectives 8

17 Types of Funds  General Fund  Reserve Fund  Special Revenue Fund  Enterprise Fund  Capital Project Fund  Trust & Agency Fund  Debt Service Fund  Internal Services Fund Types of Funds 18  General F General Fund nd – For general operations with no restrictions on how resources are used.  Special R ecial Revenue F nue Fund – Dedicated to local option levy money, specific purpose grants, or other money required to be segregated by statute, charter or terms.  Capital Pro pital Project F ect Fund – To finance a building or acquisition of capital facilities that are nonrecurring major expenditures.  De Debt S bt Service F ice Fund – Used to budget for the payment of principal and interest on long-term debt 9

Types of Funds, cont… 19  Internal S rnal Services F ices Fund - To account for services furnished by one department to another department of the same local government  Ent Enterprise F rise Fund nd – To account for activities that are primarily self-supporting from user charges and fees  Tr Trust & & A Agency F Fund – For revenue received in a fiduciary capacity to be used for a specified purpose  Re Reserve F Fund – Used to accumulate money for financing the cost of a service, project, property or equipment 20 Budget Organization Organize requirements within funds by either  Organizational unit : Any administrative subdivision of a municipal corporation, especially one charged with carrying on one or more functions or activities OR OR  Program and Activities : A group of related activities aimed at accomplishing a major service or function for which the municipality is responsible ORS 294.388 10

21 Simple Organizational Unit Example City Facilities cilities Administration Administration Organ Organization zational al Organ Organization zational al Unit Unit 1 1 Unit Unit 2 2 22 City of Riverdale Organizational Chart City Council City Manager Public Parks & Admin Library Safety Rec Municipal Facilities Streets Court 11

23 24 Program Example Prevention Emergency Programs Response Fire Code Enforcement EMS Activities Education Training Investigations Equipment Maintenance 12

25 26 Forms for Local Budget Law  LB, LB, ED, UR, ED, UR, & & CC- CC-1  LB- LB-35 Notice of Budget Hearing Bonded Debt  LB- LB-10  LB, LB, ED, & ED, & UR UR-5 -50 Special Revenue Funds Notice of Property Tax and Certification  LB- LB-11 Reserve Funds  Budget c et committee m e meetin eting notice no  LB- LB-20 Public comment held or offered at Resources later date  LB- LB-30  Re Resolutions Requirements Summary Adopting, appropriating, imposing,  LB- LB-31 and categorizing Detailed Requirements  Supplemen enta tal b l budget et Notice of Supplemental budget Hearing 13

27 Budget Detail: Statutory Minimum  Line item description  2 prior years actual information (Use actual / audited #’s)  Budgeted amount for current fiscal period  Proposed amount for next year • Once BC approves, complete “Approved” column • Once Governing Body adopts, complete “Adopted” column Standardized Format 28 Hi Hist stori orical Data al Data Bud Budget for Ne r Next Y xt Year ar 20 2019-20 Actual Ac Second Second Firs Fi rst Adopted Ad d Descr Descriptions of of Pr Propo oposed ed Approved Appr Precedin Preceding Preceding Precedin Budget Bud Re Resour urce ce a and By By By By Adopted Ad d Ye Year Ye Year This Y Thi Year Requirem iremen ent Budget Bud Budget Bud By By 2016 016-17 2017-1 20 -18 2018- 18-19 Item It ems Of Offic ficer Committee Commit Board Boar 14