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
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Presented by Oregon Department of Revenue Finance, Taxation & Exemptions
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
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1st Phase - Propose the budget 2nd Phase - Approve the budget 3rd Phase - Adopt the budget 4th Phase - Changes after adoption
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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. 4
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Local Local Go Govern rnment Adopts Budget and Certifies Tax Assessor Assessor Appraises Property & Calculates Tax Tax Colle x Collect ctor Sends Bills & Collects Taxes Tr Treasurer Distributes Revenues
June 30 June 30th
th
th
th
Firs First P Paym ymen ent Due No Due Nov. 15 15th
th
Proper Property ty Ta Tax C Cycle
July 15 July 15th
th
expenditures
ORS 294.321
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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
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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 summar budget summary.
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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
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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
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Ac Acti tion
Exam Example Due Dat Due Date
Com Comple lete
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Appoint budget officer
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Appoint budget committee (BC)
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Prepare proposed budget March 7
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Publish 1st notice of BC meeting March 21
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Publish 2nd notice of BC meeting April 4
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BC meeting & subsequent mtgs. if needed April 11
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Publish notice of budget hearing May 15
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Hold budget hearing May 23
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Enact Resolutions to adopt, etc
June 27
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Submit tax certification documents By July 15*
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Send copy of all budget documents to county clerk By Sept. 30* * 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
county fall lls on s on a a week eeken end or
holiday, the then the d the deadli adline ne is is extended t nded to the ne the next business siness day.
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and other requirements The The budget is budget is the basis the basis for appr r appropriations, which
creat create the authority t the authority to spend spend publi public mone money y
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OR ORGANIZ NIZATIONAL UN AL UNIT IT BUDGET BUDGET PR PROG OGRAM RAM & & ACTIVIT TIVITY BUDGET BUDGET
LINE IT LINE ITEM EM DET DETAIL
BUDGE BUDGET
LINE IT LINE ITEM EM DET DETAIL
FUND FUND OR ORGAN GANIZATI TION ONAL AL UNIT UNIT
OBJECT OBJECT CLASSI SSIFI FICA CATI TION ON
BUDGE BUDGET
FUND FUND PR PROG OGRA RAM
OBJE OBJECT CLASSI ASSIFI FICATION TION
AC ACTIVITY
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Executive Officer or Governing Body
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requirements for specific activities and
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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
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10
Internal S
rnal Services F ices Fund - To account for services furnished by one department to another department
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
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Organize requirements within funds by either
Any administrative subdivision of a municipal corporation, especially one charged with carrying on
OR OR
A group of related activities aimed at accomplishing a major service or function for which the municipality is responsible
ORS 294.388
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Administration Administration Facilities cilities
Organ Organization zational al Unit Unit 1 1 Organ Organization zational al Unit Unit 2 2
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City Council City Manager Library Parks & Rec Public Safety Admin Streets Facilities Municipal Court
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Fire EMS Training Investigations Education Code Enforcement Prevention
Activities Programs Equipment Maintenance Emergency Response
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LB,
LB, ED, UR, ED, UR, & & CC- CC-1
Notice of Budget Hearing
LB-
LB-10
Special Revenue Funds
LB-
LB-11
Reserve Funds
LB-
LB-20
Resources
LB-
LB-30
Requirements Summary
LB-
LB-31
Detailed Requirements
LB-
LB-35
Bonded Debt
LB,
LB, ED, & ED, & UR UR-5
Notice of Property Tax and Certification
Budget c
et committee m e meetin eting no notice
Public comment held or offered at later date
Re
Resolutions
Adopting, appropriating, imposing, and categorizing
Supplemen
enta tal b l budget et
Notice of Supplemental budget Hearing
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(Use actual / audited #’s)
column
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Hi Hist stori
al Data Descr Descriptions of
Re Resour urce ce a and Requirem iremen ent It Item ems Bud Budget for Ne r Next Y xt Year ar 20 2019-20 Ac Actual Ad Adopted d Bud Budget Thi This Y Year 2018- 18-19 Pr Propo
ed By By Bud Budget Of Offic ficer Appr Approved By By Bud Budget Commit Committee Ad Adopted d By By Boar Board Second Second Precedin Preceding Ye Year 2016 016-17 Fi Firs rst Precedin Preceding Ye Year 20 2017-1
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Re Reso sources ces
Cash on hand and anticipated receipts
Re Requir ireme ements
Expenditures going
transactions, or money being held for future use
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detail.
budgeted.
be made in “good faith.”
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Esti Estimated R d Resou source ces
Cash on hand $345,680 Tax 2,085,000 Fees 8,200 Grant 5,000
Total Resources $2,443,880
Est Estima mated R d Requirem iremen ents Public Safety $ 680,000 Administration 400,000 Public Works 1,000,000 Contingency 120,000 Subtotal $ 2,200,000
Es Estimat mated Ending F ng Fund B Balanc nce
$243,880
Esti Estimated R d Resou source ces
Cash on hand $243,880 Tax 2,185,000 Fees 8,000
Total Resources $2,443,880
Est Estima mated R d Requirem iremen ents Public Safety $700,000 Administration 400,000 Public Works 1,000,000 Contingency 120,000
Subtotal $ 2,220,000 Unappr ppropria
ed E Ending F ng Fund Ba Bala lance
$223,880
Ac Actu tuals als 20 2017-2
20 2018-2
Curren Current Y Year ar 20 2019-20
Re Resources
Cash on hand $ 243,459 Tax 2,096,156 Fees 7,885 Grant 10,000
Total Resources $2,357,500
Requirements quirements
Public Safety $657,680 Administration 378,255 Public Works 975,885 Subtotal $ 2,011,820
Endi Ending ng F Fund nd Bala Balance $345,680
Resources can be co-mingled with other non-
restricted resources, except property tax.
Proper Property tax re ty tax revenu nue mus e must be be e estimate ted s separate tely f from
revenue (ORS 29 e (ORS 294.438) 4.438)
2018 Legislation (SB 1544) allows local
government to disclose payment distribution
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https://www.youtube.com/watch?v=gtaIhnmxnZU Source: The Oregonian, September 10, 2015
Ta Tax R Rate x x Ta Taxable V Value* = * = Ta Tax A Amount
But, But,
Amount you receive is reduced by:
* “frozen value” in urban renewal plan area
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19
Article XI, s. 11 and 11b
Measur Measure 50: e 50: Tax calculation is based on Assessed V Assessed Value lue (A
(AV) V)
Measur Measure 5 e 5: : Operating tax on a property is limited to:
M5 limit is based on Real Mark al Market V Valu lue (RMV) e (RMV)
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limit, the tax must be reduced (“compressed”) to fall within the limit.
(local option taxes reduced first).
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M5 Compression Example
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Neighbor 1 M50 Tax Calculation:
Total Combined Gen. Gov. Tax: $14/$1,000 AV AV Property’s Ass Assessed V Value $176,384 Tax on
$2 $2469.38
M5 Limit Calculation:
General Gov. limit $10/$1,000 RMV RMV Property’s Re Real M Mark rket V et Value $220,000 Maximum mum tax under r limit $2,200.0 .00
Gen.
Loss due due to M5 Com M5 Compres ression
= $269.38
Neighbor 2 M50 Tax Calculation:
Total Combined Gen. Gov. Tax: $14/$1,000 AV AV Property’s Ass Assessed V Value
$176,384
Tax on
$2 $2469.38
M5 Limit Calculation:
General Gov. limit $10/$1,000 RMV RMV Property’s Re Real M Mark rket V et Value $280,000 Maxim ximum tax und under limit mit $2,800. 800.00 00
NO l NO loss ss to com compress ression
Summar Summary of y of Asses Assessments ents and Le and Levies vies R Repor port (SAL) (SAL) Ta Table 4 4a:
Assessor prepares report in October Often mailed to every taxing district Reports taxes imposed, compression loss, taxes extended Save report and use it next spring for your budget estimate of M5
loss
Al Also co cons nsider l ider levies o es of ot
r districts ricts
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value
patrons
amount
election
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Permanent rate limit: $1.5340/ $1,000 Estimated Assessed Value in district: $98,769,946
x .0015340
= $ 151,513
736
$ 150,777
x .94
= $ 1 141,730 730
in ORS 280.060)
per year
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(Dollar Amount Local Option)
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= $ 45,000
$ 42,500
x .94
= $ 39,950 Permanent rate tax $141,730 Local option tax 39,950 Budget Total for General Fund $18 $181,680 ,680
Principal & interest (only) rest (only) on voter-approved general
for annual debt service
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Taxes budgeted for debt service $ 25,150 Estimated compression losses = 0
(GO bond taxes are exempt from M5 limits)
Amount to raise 25,150
(Amount shown in the budget as a resource)
County collection average
.94 Taxes to be levied = $ 26,755 $ 26,755
(This is the amount you will certify to the assessor)
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Personnel S rsonnel Services ices - Expenses related to employees.
MUS
MUST ALSO INCL ALSO INCLUDE A UDE A NUMBER F NUMBER FOR F FTE. E.
How is FTE calculated?
Mat Materi rials & als & Ser Servic ices – consumables and service expenses:
contractual services supplies other operating expenses
Capita tal o l outla tlay- Items which generally have a useful life of one
Include Include line it line item de em detail tail
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Int Interfund T und Transf ansfer ers- s- Transfer of resources from one fund to another. All transf All transfer ers s out req
ire a corresponding a corresponding transf transfer in. er in. Debt Ser Debt Service- ice- The repayment of any loan, bond or
Special P Special Payme yments- ts- A pass-through payment, grant made to other organizations, or other one-time or unusual expenditure that does not fall into any other expenditure category.
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Operating Contingency Operating Contingency- An amount reasonably expected to
be spent on unidentified operating expenses.
Ma May only be y only be budge budgeted ed in an in an operating
fund.
Reser served f ed for F r Future Expenditure- ture Expenditure- An amount a municipal
corporation plans to "save" for future spending.
Un Unappr appropriat
ed Ending F ding Fund B nd Balance - nce - Amount set aside in
the budget to be carried over to the next year’s budget to cover costs prior to resources being available.
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Budget Requirements
ORS 294.388
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Fund General Fund
Organizational Unit Object Classification
Expenditure Detail
Administration Personnel Service
Salaries Benefits FTE
General Fund
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Fund Program Activity Object Classification Emergency Response Expenditure Detail Training Capital Outlay Fire Training Simulator
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City Council City Manager Library Parks & Rec Public Safety Admin Streets Facilities Municipal Court
General fund fund
Admin Public Safety Parks & Rec Library Municipal
Court
Facilities
Debt Ser Service e Fu Fund
Streets F s Fund nd
Street Department
Library Spec y Special Revenue F nue Fund nd
Library
Jughead Jones
Re Reserve F Fund
Parks & Rec
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What’s the difference between an organizational unit and a
program?
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True o
False: If you only have one fund, you don’t need to budget by organizational unit or program.
Which object classifications are defined as operational
expenditures?
What are the object classifications (categories of
requirements) that should be allocated to an organizational unit?
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True o
False: Debt service must always be budgeted in a debt service fund.
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Tr
True o
False: When levying for G.O. bond debt, your levy amount should be more than the amount needed to pay principle and interest.
What is the formula used to estimate the amount of
property tax to be received? What other factors should be considered?
What information do you have to include in your
budget if you estimate expenditures for Personnel Services?
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True o
False: “Non-Departmental” is an appropriate name for an org. unit/program within the General Fund.
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Appointed Members
ORS 294.414
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The Go The Governing Body rning Body
an an Eq Equal N ual Number of mber of Ap Appoint inted Elect d Electors
Publish notice of the first meeting at which: The budget and budget message are
presented, and public comments and questions are heard.
If public comments are not heard at the
first meeting, give notice of both meetings.
In Washington County, also submit summary of proposed budget for publication on the county website (contact the Finance Department).
ORS 294.426 62
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Printing t inting twice i e in a a newspaper o wspaper of g general ci neral circulation: ulation: 5 - 30 days before meeting
sting notice on tice on y your w ur websit bsite: e: At least 10 days before meeting, AND AND Printing once in a newspaper 5 – 30 days before meeting
Mailing b g by U U.S.
Postal Ser Service firs first cla class: To each street address, PO Box and RRN in district At least 10 days before meeting
Hand delivery To each street address in district At least 10 days before meeting
ORS 294.426
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meeting
information from district officials
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Governing Body
If your full budget committee is 10 people, quorum = 6 Vacancies on the governing body side still count toward the
Vacancies on the electors side are not counted. Quorum = 4
Electors
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committee
committee
charge for copies)
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ORS 294.403
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comment on the budget ORS 294.426(4)(c)
public comment period
Give same notice as a regular meeting of the governing body
ORS 294.428(2)
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Town of Litchfield, NH –Mosquito Control District https:/ / www.youtube.com/ watch? v=R TXUIVmJQmQ
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Sample Motion to Approve Budget: “I move that the budget committee of Riverdale City approve the budget for the 2019-20 fiscal year in the amount of $13,910,076.”
(motion a ion and v vote recor recorded ed in t in the m e minut nutes) s)
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Sam Sample Mo le Motion t tion to Appr Approve T e Taxes: s:
“I move that the budget committee of Riverdale City approve property taxes for the 2019-20 fiscal year at the rate of $4.4143 per $1,000 of assessed value for the permanent rate tax levy, in the amount of $0.1213 for the local option tax levy, and in the amount of $496,315 for the general obligation bond levy.” (motion a ion and v vote recor recorded ed in t in the m e minut nutes) s)
The Budget Committee is now finished.
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and RRN 5-30 days before hearing
There is no Internet option for this notice If budget < $100,000 and no newspaper published in the
district, can post in 3 places for at least 20 days prior to hearing
In Multnomah County, submit budget to Tax Supervising
Conservation Commission, if subject to its jurisdiction.
ORS 294.438
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ORS 294.438
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budget officer makes a “good faith” effort.
schedule the hearing and publish timely.
date published, publish another notice.
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If these errors occur:
Then at first meeting after the error is discovered, the budget officer must:
ORS 294.451
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Riverdale City’s council received a resignation notice from one of the appointed budget committee members. The member has only served one year of his three year term. What should the City Council do?
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The Riverdale City Council is supposed to have five members but one position is vacant. There are supposed to be five appointed members of the budget committee but the council can only find three people willing to serve. How many people must be at a budget committee meeting for there to be a quorum? How many votes are required to pass a motion?
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Riverdale City published a notice that their first budget committee meeting would be held on March 11th and that they would take public comment at that meeting. On March 11th two of the budget committee members can’t make it to the meeting because of the flu. As a result, there isn’t a quorum at the meeting. Can an alternate member fill in for an absent member?
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reschedule & publish a revised notice
budget committee
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After the hearing, the governing body can change the budget estimates and tax levy approved by the budget committee. Ho However, if they want to:
(or $5,000 – whichever is greater),
The They must must republish republish the amended budget summar the amended budget summary and and hold hold ano another her budget hearing budget hearing.
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After the hearing and on or before June 30, the governing body must enact a resolution to:
category (Education or General Government)
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(Be sure to include all resources and all funds) Sample of Resolution Adopting the Budget:
“BE IT RESOLVED that the Board of Directors of (district name) hereby adopts the budget for fiscal year 2019-2020 in the total amount of $XXXXX. This budget is now on file at (address).“
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One amount f amount for each Organizational Unit r each Organizational Unit or Pr
Include only Personnel Services, Materials & Services, and Capital Outlay
Separate amounts amounts f for an r any: y:
Personnel Services, Materials & Services, or Capital Outlay
not allocated to an organizational unit or program
Debt Service Special Payments Transfers Operating Contingency
ORS 294.388
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Appropriate one amount
Personnel Services + Materials and Services + Capital Outlay
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Appropriate one amount at this level for Personnel Services + Materials and Services + Capital Outlay
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Fu Fund
Organi Organizat zation
al Unit Or it Or Pr Progr
#1 …$$$ …$$$ Organi Organizat zation
al Unit Or it Or Pr Progr
#2 …$$$ …$$$
(Not allocated to Organizational Unit or Program)
Personne
l services ices …….. ……..... ...... .....$ ..$$$ $$ Mat Materi rial als & s & ser services ices .……… .…………..$$$ .$$$ Capital o pital outla tlay …….. ……..…... ...... ...... ...... .....$ ..$$$ $$ Debt S bt Service ice ………………........$$$ ……………........$$$ Specia ial Pa Payments ents ……….……..$$$ .……..$$$ Interfun und t d transf sfer ers . s .…………….$$$ ………….$$$ Ope Operating c ating continge ntingency …….….$$$ ncy …….….$$$ One amount One amount for each
the t the total of:
Personnel Services
+ Materials & Services + Capital outlay.
Object classifications no not al alloca cated to an Organizational Unit or Program
Statut Statutor
y Minimum St Standa dard rd General Fund
Admin minist strati ration
$5000
Great Greater detail allo r detail allowed wed by by A Admin Ru Rule
General Fund
Ad Admini nistration
Personnel Services $2000 Materials & Services $2000 Capital Outlay $1000 OAR 1 R 150-29 0-294- 4-05 0510
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General fund
Admin Public Safety Parks & Rec Library Municipal Court Facilities Personnel Services Transfers Contingency
GO Bond Debt Service F ice Fund nd
Debt Service
Streets F Fund nd
Street Department
Library Special R y Special Revenue enue Fu Fund
Library
Jughead Jones R Jones Reser serve e Fu Fund
Parks & Rec
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General Fund
Administration $557,540 Public Safety 4,575,600 Parks and Rec 304,500 Library 424,650 Municipal Court 178,000 Facilities 334,000 Personnel Services 150,000 Transfers 170,000 Contingency 75,000
Total $7,187,890
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For each fund: 1000 Instruction 2000 Support Services 3000 Enterprise & Community Services 4000 Facilities Acquisition and Construction 5000 Other Uses
5100 Debt Service 5200 Transfers
6000 Contingency
ORS 294.393
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*2017 OR Law Ch.26 - Creates consistency in budget and
appropriations methods for community college districts.
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Appr Appropriat
ed
Ne Never r Appr Appropriat
ed
Balance (UEFB)
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No organizational units or programs or only
in general fund
“Non-departmental” identified as a
“department”
Contingency appropriated in a non-operating
fund
Reserves for Future Expenditure and
Unappropriated Ending Balances appear to be appropriated
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dollar amount (not both).
voters.
Cannot exceed rate/amount approved by Budget Committee unless you republish budget summary and hold another hearing
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Categorize each tax (permanent rate limit, local
bject to “General Go “General Government” l rnment” limit mit
Subject to “Education” limit “Education” limit
luded ded f from c constitution titutional l al limits” mits”
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Type of Tax Subject to General Gov’t Limit Excluded from Limitation Permanent rate limit $4.4143/$1,000 Local option levy $0.1213/$1,000 G.O. Bond levy $496,315
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Subject to General Government Limitation General Fund $4.01/$1,000
The resolution categorizing the tax should be done by tax levy, not by fund.
Subject to General Government Limitation Permanent Rate Tax $4.01/$1,000
294.456(1)(a)
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By By July 15, July 15, send the A send the Assessor : sessor :
2 copies of the tax certification form, 2 copies of the resolutions, 2 copies of ballot measure for any new tax. OAR 150-294-0520
By Sept 30, send the Count By Sept 30, send the County Cler Clerk : k :
Copy of complete budget document, including: Budget Message Budget detail sheets, Meeting notices or affidavits of publication, Resolutions adopting, appropriating, imposing, etc., Tax certification Sample ballot for any new tax OAR 150‐294‐0310
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By July 15, send to Dept. of Revenue:
1 copy of the resolutions
Keep on file a copy of complete budget document, including:
Budget Message Budget detail sheets, Meeting notices or affidavits of publication, Resolutions adopting, appropriating, imposing, etc.
ORS 294.458(1)
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School Districts & ESD’s:
Hard copy of budget to Dept of Education by July 15th Electronic copy to Dept of Education by August 15th
Community Colleges:
Copy of budget to Department of Community Colleges & Workforce Development by July 15
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these appropriation categories: Miscellaneous, other, UEFB?
appropriation amount for an org. unit/program?
appropriated separately from a program or organizational unit?
appropriate for contingency?
unappropriated amounts?
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total tax amount for the same levy?
by constitutional limitation?
each levy imposed?
107
The city has extra money in their budget that they don’t need for anything. They just put it into “Contingency”. Is that OK? If not, what should they do?
108
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The city received a late donation and has more money than anticipated for next year. As a result, the council wants to change the budget approved by the budget committee before the council adopts it. Can they do that? If so, what do they have to do?
109
There’s only one person who knows how to complete the LB-50 and he’s out of the
What can the district do in this situation?
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111
What’s wrong with these appropriations?
112
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113
Budgets may need to be changed after adoption …
114
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A budget is a plan based on estimates; The budget provides the foundation for
appropriations;
Appropriations are authority to spend public
money, AND
Appropriations are limitations on expenditures
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Don’t o Don’t over erspend y spend your appr ur appropriat
ions!
ORS 294.456(6): Except as provided in . . . 294.471 , 294.473 . . . an expenditure . . . of public money may not be made for any purpose in an amount greater than the amount appropriated.
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The change must be in place bef
before re an over- expenditure is made
Adopting a resolution or supplemental
budget after an over-expenditure does not correct the violation of Local Budget Law
ORS 29 ORS 294.4 4.471(3)( 1(3)(c): ): Additional expenditures contained in a supplemental budget …may not be made unless the governing body of the municipal corporation enact enacts appr approp
riation or
dinances or nces or resolutions auth solutions authoriz
ing the e expenditures. penditures.
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Budget law provides several LEGAL ways to adjust your budget after adoption if your needs change, including:
Interfund loans – ORS 294.468 Eliminate unnecessary fund – ORS 294.353 Emergency authorizations – ORS 294.481
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existing categories within a fund or between two funds
fund to any other fund
solution must state: e:
ORS 294.463(1)
119
Appropriation Transfer Example
Increase Police appropriations by transferring $100,000 from Administration appropriations
120
General General Fund und Exi Existi ting Chan Change Ad Adjusted Ad Admini nistration
$400, $400,000 000 $(1 $(100,000) 00,000) $300, $300,000 000
Po Police
$1,900,00 ,900,000 $100,000 00,000 $2,000,000 000,000
Library
$400,000 $0 $400,000
Transfer Out
$50,000 $0 $50,000
Contingency
$500,000 $0 $500,000
Total Ap l Appropriations
$3,250,000 250,000 $0 $3,250,000 250,000
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Tran ansf sfer $200,000 of appr er $200,000 of appropriati
from the General F
nd to to t the L Library F Fund General F General Fund nd
Existing Change Adjusted Admin $2,000,000 $(200,000) $1,800,000 Transfer Out* $0 $200,000 $200,000
Librar Library F y Fund nd
Resource: Transfer in $0 $200,000 $200,000 Appropriation Library $300,000 $200,000 $500,000
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*A Transfer Out may be created when transferring
between funds by resolution.
Tr Transfer t to a another ex existing ng app appropria riation ion
Transfer by resolution is limited to 15% of total fund
appropriations
15% limit is cumulative for the fiscal period If more than 15% transferred in a year, a supplemental
budget is required for the excess
ORS 294.463(2)
122
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Moving contingency of less than 1 less than 15% of Appropriations
Increase library appropriations by transferring $50,000 out of contingency
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General General Fund und Exi Existi ting Chan Change Ad Adjusted Administration $400,000 $0 $400,000 Police $1,900,000 $0 $1,900,000 Library $400,000 $400,000 $50,000 $50,000 $450,000 $450,000 Transfer Out $50,000 $0 $50,000 Conti Contingen gency $500,000 $500,000 $(50,000) $(50,000) $450,000 $450,000 Total Appr tal Appropriation
$3,250,000 $3,250,000 $0 $3,250,000 $3,250,000
Contingency Contingency transf ransfer r as a % of as a % of adopt adopted d appr appropriations = 1.5%
A Supplemental Budget
Increase or decrease appropriations, Create a new appropriation category, or Create a new fund
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63
Occurrence or condition not known during the
regular budget process
Unforeseen pressing necessity requires prompt
action
Unanticipated money from federal, state or local
government
Request for services, to be paid for by others
ORS 294.471
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Destruction, involuntary conversion or sale
requires immediate replacement
More property taxes received than estimated Local Option approved in September election Add Debt Service when GO bonds are approved
in May election
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64
Two Pr
1. Change in expenditures in a fund is 10% or less 2. Change in expenditures in a fund > 10%
When det When determining e rmining expenditures, do not include: penditures, do not include:
Transfers, Contingency, Reserves for future expenditure, or Unappropriated Ending Fund Balance
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ORS 294.388
128
65
At least 5 days before the meeting In newspaper, by 1st class mail or by hand‐delivery Include a statement that a supplemental budget will be considered at the meeting
the purpose and the amount of the appropriation
129
At least 5 days before the hearing In newspaper, by 1st class mail or by hand-delivery Summarize changes in each fund changing > 10%
and the amount of the appropriation
130
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131
Change is over 10%
expenditures* Publish notice and summary of changes
Change is 10% or less of fund expenditures*
Publish notice of meeting, indicating a supplemental budget will be considered
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*Expenditures do not include Transfers, Contingency,
Reserved for Future Expenditure or UEFB
67 Ap Appropriation
ransfer
ORS 29 ORS 294.46 4.464
Suppl Suppleme mental al Budg Budget
ORS 29 ORS 294.4 4.471 & & 29 294.4 4.473
authority from one existing category to another.
appropriation expenditure authority.
to 15% of total fund appropriations
category or fund.
authority (i.e. changes the
15% of total fund appropriations
hearing.
Appropriation T Appropriation Transf ansfer er or Supplemental Budget
Option 1 Option 1: You may reduce appropriations:
It’s optional By supplemental budget: At regular meeting if 10% or less After public hearing if > 10%
Option 2: Option 2: You could just spend less than appropriated
ORS 294.471(1)
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68
Exp Expenditure of sp nditure of specific p ecific purpose
rants, gifts, etc. s, etc. Appropriate by resolution Carry-over from prior year may also be
appropriated
General purpose grant may require supplemental
budget
ORS 294.338(2)
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Unf Unforeseen Occurrence reseen Occurrence
requires additional expenditure.
ORS 294.338(3)
136
69
Expenditures outside of the budget
Bond Ex Bond Exception ceptions Supplemental budget not required to expend proceeds or make debt service payments for:
Revenue Bonds sold in the current year G.O. bonds approved by voters in the year Refunding bonds issued in the year
ORS 294.338(4)&(5)
137
improvements 294.338(6)
(must appropriate by resolution) 294.338(9)
138
70
Resolution must state:
Funds making & receiving the loan Purpose of the loan Principal loan amount Repayment schedule (capital loan) Interest to be charged (capital loan)
Loans no Loans not allo t allowed fr d from some funds
(debt service fund, constitutionally dedicated moneys [like gas taxes])
Be sure there is appropriation authority
ORS 294.468
139
Loan for Operations:
Capital Loan:
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71
If a fund becomes unnecessary during fiscal year, a resolution must declare it unnecessary.
Transfer balance to General Fund unless other provision was made when fund was established.
ORS 294.353
141
To respond to involuntary conversion or destruction
public calamity, governing body may:
Receive grants or borrow money Appropriate from any available source, including
unappropriated ending fund balance
Appropriate by resolution or supplemental
For public safety or health, executive officer may authorize expenditure if not practical to convene meeting
ORS 294.481
142
72
The budget adopted by the board of the City of Riverdale included expenditures for three new heavy machinery for Andrews Construction. However, the board only appropriated the expenditure for the two and forgot the third. What options does the district have to purchase the third heavy machinery?
143
A citizen of Riverdale City won the lottery and has given the city a large cash donation that the city can use for whatever is needed most. What options does the city have to legally spend this money?
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73
All the cities in the Archie Comic County have applied for a grant for maintenance of the State Highway that crosses through various cities. The City of Riverdale submitted the joint application for the grant and will actually be able fix the State Highway that crosses through Riverdale City. What does the City of Riverdale have to do regarding this grant and purchase? What if Riverdale City simply passed the money through to the other cities?
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In an unfortunate turn of events Archie Andrews and Jughead Jones destroyed several public buildings with their heavy machinery. The city needs to repair the buildings ASAP. There will be insurance proceeds for part of the cost of the repairs, but to make up the difference the board will need to increase their appropriations in the General Fund. The expenditure wasn’t anticipated or budgeted for. What actions will the city need to take to pay for the repairs?
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Danette Benjamin (971) 301-1149 danette.m.benjamin@oregon.gov Melanie Cutler (971) 301-1128 melanie.cutler@oregon.gov Jean Jitan (971) 600-4097 jean.jitan@oregon.gov FT&E FT&E Messa Message ge Phone Phone # # (503) 503) 9 945-82 45-8293 93 Email finance. ance.taxation@or axation@oregon. egon.gov Local Local Budg Budget F Forms rms and Manua and Manuals on
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