2007 Oregon Code - Chapter 294 :: Chapter 294 - County and Municipal Financial Administration
Chapter 294 —
County and Municipal Financial Administration
2007 EDITION
MUNICIPAL FINANCIAL ADMINISTRATION
PUBLIC FINANCIAL ADMINISTRATION
GENERAL PROVISIONS
294.004Â Â Â Â Definitions
COUNTY AND MUNICIPAL FINANCIAL ADMINISTRATION
(Generally)
294.005Â Â Â Â Definitions
for ORS 294.005 to 294.025
294.010Â Â Â Â Surrender
of warrants upon payment
294.015Â Â Â Â Payment
on lost, stolen or destroyed warrants upon affidavit of owner, payee or
representative
294.025Â Â Â Â Effect
of wrongful payment; liability of officer
294.027Â Â Â Â Provisions
relating to warrants and payment of claims
294.028Â Â Â Â Payment
of warrants by depository
294.029Â Â Â Â Provisions
of ORS 294.027 and 294.028 not mandatory
294.030Â Â Â Â Deductions
for bonds from compensation of municipal and other employees; purchasing bonds
in advance
294.033Â Â Â Â Investment
of deferred compensation funds
294.035Â Â Â Â Investment
of surplus funds of political subdivisions; approved investments
294.040Â Â Â Â Restriction
on investments under ORS 294.035
294.046Â Â Â Â List
of approved securities for investment under ORS 294.035; distribution
294.047Â Â Â Â Loss
of principal on liquidation of investments
294.048Â Â Â Â Borrowing
money when premature withdrawal or liquidation of certain investments would
cause loss
294.050Â Â Â Â County
borrowing money from county general road fund
294.052Â Â Â Â Definitions;
investment by municipality of proceeds of bonds
294.053Â Â Â Â Investment
by county in master warrants of county
294.055Â Â Â Â Use
by counties of moneys received from federal government under the Mineral
Leasing Act
294.060Â Â Â Â Apportionment
of moneys received by counties from federal forest reserves to road and school
funds
294.065Â Â Â Â Use
by counties of moneys received from federal government under the federal Flood
Control Act
294.070Â Â Â Â Expenditure
of Taylor Grazing Act funds; advisory board
294.080Â Â Â Â Disposition
of interest earned on funds held by county treasurer
294.085Â Â Â Â Examining
books and papers of county officers
294.090Â Â Â Â County
orders and vouchers to be numbered to correspond to warrants drawn
294.095Â Â Â Â Action
or proceeding with respect to budget or levy; fiscal year with respect to which
taken
294.100Â Â Â Â Public
official expending money in excess of amount or for different purpose than
provided by law unlawful; civil liability
294.120Â Â Â Â Use
of facsimile signatures
294.125Â Â Â Â Investment
of funds authorized by order of governing body; limitations
294.135Â Â Â Â Investment
maturity dates
294.145Â Â Â Â Prohibited
conduct for custodial officer
294.155Â Â Â Â Annual
audit report; monthly report
294.160Â Â Â Â
294.175Â Â Â Â Definitions;
county expenditures for assessment; determination of adequacy; certification of
adequacy; appeal of denial of certification; effect of certification
294.178Â Â Â Â Assessment
grant to county; determination of grant amount
294.181Â Â Â Â Alternative
method for certification
294.184Â Â Â Â County
Assessment Function Funding Assistance Account; sources; purpose
294.187Â Â Â Â
PUBLICATION OF FINANCIAL REPORTS
294.250Â Â Â Â Publication
by county governing body of schedule of expenditures and statement of
proceedings; manner of publication; notice
LOCAL BUDGET LAW
294.305Â Â Â Â Sections
constituting Local Budget Law
294.311Â Â Â Â Definitions
for ORS 294.305 to 294.565
294.316Â Â Â Â Application
294.321Â Â Â Â Purposes
294.323Â Â Â Â Budget
period
294.326Â Â Â Â Compliance
with Local Budget Law required prior to expenditure or tax certification;
exceptions
294.331Â Â Â Â Budget
officer
294.336Â Â Â Â Budget
committee
294.341Â Â Â Â Governing
body of certain municipal corporations to be budget committee; exception
294.352Â Â Â Â Estimates
of expenditures required; form and contents
294.356Â Â Â Â Preparation
of estimates by school, education service and community college districts and
by municipal corporations operating public utility or hospital
294.361Â Â Â Â Contents
of estimate of budget resources
294.366Â Â Â Â Reserving
receipts from revenue-producing property or facility; deposit in special fund
294.371Â Â Â Â Estimate
of unappropriated ending fund balance for each fund
294.376Â Â Â Â Expenditure
and resource estimate sheets; made part of budget document
294.381Â Â Â Â Determination
of estimated tax revenues
294.386Â Â Â Â Financial
summary
294.391Â Â Â Â Budget
message
294.396Â Â Â Â Time
of making budget message and document
294.401Â Â Â Â Budget
committee meeting; distribution of budget message and document; copies of
document to be available
294.406Â Â Â Â Budget
committee hearings; approval of budget document
294.411Â Â Â Â Submission
of budget document to tax supervising and conservation commission in certain
cases prior to publication and approval by budget committee
294.413Â Â Â Â Format
for notices and summaries
294.416Â Â Â Â Publication
of budget summary, financial summary, statement of accounting basis and notices
of meeting and availability of budget document
294.418Â Â Â Â Alternative
budget publication procedure
294.421Â Â Â Â Manner
of publication; alternative requirements in certain cases
294.425Â Â Â Â Sufficiency
of publication of budget documents; notice to governing body and assessor of
publication error
294.430Â Â Â Â Hearing
by governing body on budget document as approved by budget committee;
alternative procedure in certain cases
294.435Â Â Â Â Governing
body to adopt budget, make appropriations, declare and categorize property tax
amount or rate; greater tax, encumbrance or expenditure limited; exception
294.437Â Â Â Â Local
option tax approved after adoption of budget; supplemental budget
294.440Â Â Â Â School
or community college district expending federal or state funds in emergency
294.443Â Â Â Â Certain
interest to be included in budget; method
294.445Â Â Â Â Basis
of accounting used by municipal corporation; change of basis
294.447Â Â Â Â Inclusions
in accrued revenues of school districts, education service districts, community
college districts and community college service districts using accrual basis
of accounting; State School Fund grant calculations
294.450Â Â Â Â Transfers
of appropriations within fund or from one fund to another; appropriation of
pass-through revenues
294.455Â Â Â Â Authorization
to expend or borrow moneys after destruction of property or natural disaster;
authorization by chief executive officer to protect public health or safety
294.460Â Â Â Â Loans
from one fund to another; commingling cash balances of funds
294.470Â Â Â Â Internal
service funds
294.475Â Â Â Â Elimination
of unnecessary fund; disposition of balance
294.480Â Â Â Â Supplemental
budget in certain cases; no increase in property taxes permitted
294.483Â Â Â Â Supplemental
budget not required in certain cases
294.485Â Â Â Â Tax
certification contrary to law voidable by Oregon Tax Court; appeal procedure
294.490Â Â Â Â Department
of Revenue not to interfere with fiscal policy of municipal corporation
294.495Â Â Â Â Department
of Revenue to construe Local Budget Law; rules
294.500Â Â Â Â Declaratory
ruling by Department of Revenue as to its rules under Local Budget Law
294.505Â Â Â Â Division
of Audits to issue notification of budgetary irregularities; Department of
Revenue to advise municipal corporation of correct procedures
294.510Â Â Â Â Order
for revision of budgetary procedures; enforcement
294.515Â Â Â Â Appeal
by municipal corporation from Department of Revenue order
294.520Â Â Â Â Priority
of appeals under Local Budget Law
294.525Â Â Â Â Reserve
fund established without vote; review of need for reserve fund; unexpended
balances; application to system development charges
294.555Â Â Â Â Filing
copy of budget and certain documents with county assessor and Department of
Revenue
294.565Â Â Â Â Failure
to file copy of required budget, reports or other documents; effect
TAX SUPERVISING AND CONSERVATION COMMISSION
294.605Â Â Â Â Definitions
for ORS 294.605 to 294.705
294.608Â Â Â Â Populous
counties; commission establishment or financial summary publication
294.610Â Â Â Â Tax
supervising and conservation commission; members; appointment; qualifications;
term; removal; filling vacancies
294.615Â Â Â Â Oath
of commissioner
294.620Â Â Â Â Office
of commission; employment and compensation of assistants
294.625Â Â Â Â Jurisdiction
of commission
294.630Â Â Â Â Tax
supervising and conservation commission account
294.635Â Â Â Â Submission
of budget estimates by levying boards
294.640Â Â Â Â Hearing
on budget
294.645Â Â Â Â Consideration
of budget by commission; certifying objections or recommendations to levying
board; procedure where municipality holds hearing in place of commission
294.650Â Â Â Â Striking
unauthorized items from budget; reducing total amount to within limits
permitted by law and Constitution
294.655Â Â Â Â Hearing
on special tax levies and bond issues proposed for elector approval
294.660Â Â Â Â Compiling
information as to indebtedness; including in annual report
294.665Â Â Â Â Levying
board to submit audit report or financial statements annually
294.670Â Â Â Â Commission
may inquire into management, books and systems; rules
294.675Â Â Â Â Calling
joint meetings of levying boards
294.680Â Â Â Â Certifying
excessive or unauthorized expenditures to district attorney; action by district
attorney
294.685Â Â Â Â Annual
report by commission
294.690Â Â Â Â Records
and files of commission open to public inspection
294.695Â Â Â Â Attorney
General as legal advisor and counsel to commission
294.700Â Â Â Â Proceedings
to collect penalties
294.705Â Â Â Â Tax
supervising and conservation fund
294.710Â Â Â Â Procedures
for establishing commission; annual appropriations
LOCAL GOVERNMENT EMPLOYER BENEFIT TRUST FUND
294.725Â Â Â Â Definitions
for ORS 294.725 to 294.755
294.730Â Â Â Â Fund
created; State Treasurer as custodian; use of moneys; distribution of earnings
294.735Â Â Â Â Payments
to fund by political subdivisions; benefit cost rate determinations; effect of
negative balance; refunds
294.740Â Â Â Â Refund
of account balances; payment of deficits; erroneous benefit payments
294.745Â Â Â Â Analysis
of fund receipts and expenditures; report to Legislative Assembly
294.750Â Â Â Â Experience
and liability of successor political subdivisions; unpaid assessment
294.755Â Â Â Â Payment
on quarterly basis; remedies for collection
LOCAL GOVERNMENT INVESTMENT POOL
294.805Â Â Â Â Definitions
for ORS 294.805 to 294.895
294.810Â Â Â Â Local
governments authorized to place limited funds in pool
294.815Â Â Â Â Period
of investments; withdrawal of funds
294.820Â Â Â Â Establishment
of investment pools by intergovernmental agreement; conditions; powers
294.825Â Â Â Â State
Treasurer as investment officer; bond; employment of personnel; rules
294.831Â Â Â Â Investment
objective; limit on maturity dates
294.835Â Â Â Â Standard
of care; investment in certain stocks prohibited
294.840Â Â Â Â Investment
policies; review; separate policies for individual public bodies
294.845Â Â Â Â Investment
officer to invest, reinvest pool funds
294.847Â Â Â Â Prohibited
conduct for investment officer
294.850Â Â Â Â Contracts
with persons to perform investment functions; compensation; bond
294.855Â Â Â Â Legal
opinions; investment counseling services; mortgage services
294.860Â Â Â Â Custody
of investment documents; collection of income; distribution to local
governments; calculation and allocation of profit and loss; defaulted payments
of principal and interest, collection, compromise
294.865Â Â Â Â Monthly
deductions from income received for payment of expenses
294.870Â Â Â Â Separate
accounts for local governments; reports on investment changes and monthly
financial statements required
294.875Â Â Â Â Monthly
report of investments of pool funds; distribution
294.880Â Â Â Â Program
examination and audit; report; distribution
294.882Â Â Â Â Merger
or subsequent separation of local government investment pool and state
investment fund; preconditions
294.885Â Â Â Â Oregon
Short Term Fund Board; members; appointment; term; vacancies
294.890Â Â Â Â Board
members serve without compensation; selection of chairperson
294.895Â Â Â Â Board
duties, generally
COUNCILS OF GOVERNMENTS
294.900    “Council
of governments” defined
294.905Â Â Â Â Budget
committee; membership; term; vacancies; officers; meetings to be public
294.910Â Â Â Â Estimates
of expenditures; organization and format; matters to be included
294.915Â Â Â Â Notice
of budget committee meeting; public availability of documents
294.920Â Â Â Â Hearing
on budget document
294.925Â Â Â Â Supplemental
budget; conditions; term; publication
294.930Â Â Â Â Authority
of Department of Revenue; budget records maintained by council of governments
MISCELLANEOUS
294.950Â Â Â Â County
revenue sharing with cities
294.960Â Â Â Â Collection
and disposition of amounts due counties
PENALTIES
294.990Â Â Â Â Penalties
GENERAL PROVISIONS
     294.004
Definitions. For the
purposes of this chapter, unless the context requires otherwise:
     (1) “Local government” means any county,
municipality, political subdivision or school district.
     (2) “Custodial officer” means the officer
having custody of the funds of any county, municipality, political subdivision
or school district.
     (3) “Deferred compensation plan” means a
plan, established by any employer that is a county, municipality, political
subdivision or school district, that has as its purposes the deferral of
compensation to employees of such employer and the deferral of income taxation
on such deferred compensation.
     (4) “Deferred employee compensation” means
funds under an agreement providing for payment at a future date by a municipal
corporation for services currently rendered by an eligible employee in fixed or
variable amounts for life or for a guaranteed number of years after retirement
or termination of employment.
     (5) “Nationally recognized statistical
rating organization” has the meaning given that term in Rule 15c3-1 under the
Securities Exchange Act of 1934, as amended.
     (6) “Surplus funds” means all funds that
are not pension funds and that are not required for immediate expenditure. [1975
c.359 §2; 1977 c.470 §1; subsection (4) enacted as 1977 c.102 §1; 1995 c.245 §1;
1997 c.179 §25]
COUNTY AND
MUNICIPAL FINANCIAL ADMINISTRATION
(Generally)
     294.005
Definitions for ORS 294.005 to 294.025. As used in ORS 294.005 to 294.025, unless the context requires
otherwise:
     (1) “Warrant” means a warrant issued by a
subdivision.
     (2) “Subdivision” means any county, municipal
corporation, quasi-municipal corporation, or civil or political subdivision in
this state.
     294.010
Surrender of warrants upon payment. Subject to ORS 294.015, no warrant issued by a subdivision shall be
paid unless such warrant is surrendered and delivered to the officer charged
with the payment thereof, contemporaneously with payment or prior thereto.
     294.015
Payment on lost, stolen or destroyed warrants upon affidavit of owner, payee or
representative. A warrant
may be paid without surrender or delivery thereof if the one claiming to be the
lawful owner of the warrant:
     (1) Satisfies the officer by whom payment
is to be made that the warrant has been lost, stolen or destroyed prior to the
owner having received value therefor or having negotiated the warrant; and
     (2) Furnishes to the issuing officer a
written statement signed by such person specifically alleging that the owner is
the lawful owner, payee or legal representative of the lawful owner or payee of
the original instrument giving the date of issue, the number, amount, for what
services or claim the original instrument was issued and that the original
instrument has been lost, destroyed or stolen, and has not been paid. However,
if the lawful owner, payee or legal representative is (a) a bank or national
bank, (b) the federal government or (c) this state or any board, department,
commission or subdivision of this state, or any officer thereof in the officerÂ’s
official capacity, a certificate may be furnished in lieu of an affidavit or
affirmation. The issuing officer may also, in the officerÂ’s discretion, require
the bank or national bank to furnish a satisfactory indemnity agreement
executed by the bank or national bank. [Amended by 1979 c.763 §6]
     294.020 [Repealed by 1979 c.763 §7]
     294.025
Effect of wrongful payment; liability of officer. When any warrant is paid, other than as
authorized by ORS 294.005 to 294.025, such wrongful payment does not relieve
the political body issuing the warrant from liability to the true and lawful
owner thereof. However, the officer or person making such wrongful payment and
the sureties on the official bond of the officer or person, if any, shall be
responsible to the political body represented by the officer or person in
making such payment, for the full amount of the loss occasioned thereby. [Amended
by 2005 c.22 §222]
     294.027
Provisions relating to warrants and payment of claims. (1) In addition to any other provisions of
law for the issuance and payment of warrants of any municipal or
quasi-municipal corporation or civil subdivision of this state other than
school districts, the governing body thereof may by resolution authorize such
practices with respect to the form, issuance, delivery, indorsement and payment
of warrants as it shall deem convenient, efficient and in the public interest,
conforming substantially to those specified in subsection (1) or (2) of this
section or in ORS 294.028.
     (2) Such governing body may authorize the
use of check-warrant forms, to be drawn by its appropriate warrant issuing
officer or officers upon the custodian of its funds, so prepared that such
custodian may, by subscribing a direction to the depository of such funds to
pay the same to the order of the payee, convert the instrument to a check or,
by subscribing an indorsement that such warrant is not paid for want of funds,
convert the same to an interest-bearing warrant and such governing body may
direct that such check-warrants shall not be delivered to the payees therein
named until such direction or indorsement shall have been subscribed by the
custodian of its funds.
     (3) Such governing body may provide that
when funds are available for the payment of approved claims, the approval of
claims for payment shall, without the issuance of any warrant, be authority to
the custodian of its funds to pay such claims by check. [1953 c.664 §1]
     294.028
Payment of warrants by depository. When authorized by the governing body, any custodian of funds of any
municipal or quasi-municipal corporation or civil subdivision of this state
other than a school district may direct the depository of such funds to pay any
warrant drawn upon such custodian upon presentment of such warrant to such
depository, to the same extent and with the same effect as though such warrant
were a check drawn upon such depository by such custodian. Such direction shall
be in writing and shall identify by name and signature the warrant issuing
officer or officers and such depository may rely upon such direction and
identification in the payment of such warrants. [1953 c.664 §2]
     294.029
Provisions of ORS 294.027 and 294.028 not mandatory. Nothing contained in ORS 294.027 or 294.028
shall be deemed to require any municipal or quasi-municipal corporation or
civil subdivision of this state or any custodian of public funds to exercise
any of the powers conferred by such sections. [1953 c.664 §3]
     294.030
Deductions for bonds from compensation of municipal and other employees; purchasing
bonds in advance. (1) The
governing body of a municipal corporation, quasi-municipal corporation or civil
subdivision of the state may, with the approval of the relevant employees of
the municipal corporation, quasi-municipal corporation or civil subdivision,
make deductions from their salaries and wages for the purpose of purchasing for
them United States War Savings Bonds or other federal obligations.
     (2) The governing body shall take proper
precautions for the depositing, securing and disbursing of the sums so deducted
and for the delivering of all bonds or other obligations purchased.
     (3) Balances to the credit of the accounts
in which the sums so deducted are deposited may be used for the purchase in
advance, from the federal government or from any federal reserve bank or other
authorized federal agency, of war savings bonds or other obligations of the
federal government, either in blank or in inscribed form, in convenient
denominations to meet the requirements of the purchasers thereof.
     294.033
Investment of deferred compensation funds. Funds set aside by any local government pursuant to a deferred
compensation plan may be invested in any investment enumerated in ORS 294.035
and are not subject to the collateral requirements of ORS chapter 295. [1977
c.470 §3; 1997 c.179 §26; 2005 c.91 §1]
     294.035
Investment of surplus funds of political subdivisions; approved investments. (1) Subject to ORS 294.040 and 294.135 to
294.155, the custodial officer may invest any sinking fund, bond fund or
surplus funds in the custody of the custodial officer in the bank accounts,
classes of securities at current market prices, insurance contracts and other
investments listed in this section, but only after obtaining from the governing
body of the county, municipality, political subdivision or school district a
written order that has been entered in the minutes or journal of the governing
body.
     (2) This section does not:
     (a) Limit the authority of the custodial
officer to invest surplus funds in other investments when the investment is
specifically authorized by another statute.
     (b) Apply to a sinking fund or a bond fund
established in connection with conduit revenue bonds issued by a county,
municipality, political subdivision or school district for private business
entities or nonprofit corporations.
     (3) Investments authorized by this section
are:
     (a) Lawfully issued general obligations of
the
     (b) Lawfully issued debt obligations of
the agencies and instrumentalities of the State of
     (c) Lawfully issued debt obligations of
the States of California,
     (d) Time deposit open accounts,
certificates of deposit and savings accounts in insured institutions as defined
in ORS 706.008, in credit unions as defined in ORS 723.006 or in federal credit
unions, if the institution or credit union maintains a head office or a branch
in this state.
     (e) Share accounts and savings accounts in
credit unions in the name of, or for the benefit of, a member of the credit
union pursuant to a plan of deferred compensation.
     (f) Fixed or variable life insurance or
annuity contracts as defined by ORS 731.170 and guaranteed investment contracts
issued by life insurance companies authorized to do business in this state.
     (g) Trusts in which deferred compensation
funds from other public employers are pooled, if:
     (A) The purpose is to establish a deferred
compensation plan;
     (B) The trust is a public instrumentality
of such public employers and described in section (2)(b) of the Investment
Company Act of 1940, 15 U.S.C. 80a-2(b), as amended, in effect on September 20,
1985, or the trust is a common trust fund described in ORS 709.170;
     (C) Under the terms of the plan the net
income from or gain or loss due to fluctuation in value of the underlying
assets of the trust, or other change in such assets, is reflected in an equal
increase or decrease in the amount distributable to the employee or the
beneficiary thereof and, therefore, does not ultimately result in a net
increase or decrease in the worth of the public employer or the state; and
     (D) The fidelity of the trustees and
others with access to such assets, other than a trust company, as defined in
ORS 706.008, is insured by a surety bond that is satisfactory to the public
employer, issued by a company authorized to do a surety business in this state
and in an amount that is not less than 10 percent of the value of such assets.
     (h)(A) Banker’s acceptances, if the banker’s
acceptances are:
     (i) Guaranteed by, and carried on the
books of, a qualified financial institution;
     (ii) Eligible for discount by the Federal
Reserve System; and
     (iii) Issued by a qualified financial
institution whose short-term letter of credit rating is rated in the highest
category by one or more nationally recognized statistical rating organizations.
     (B) For the purposes of this paragraph, “qualified
financial institution” means:
     (i) A financial institution that is
located and licensed to do banking business in the State of
     (ii) A financial institution that is
wholly owned by a financial holding company or a bank holding company that owns
a financial institution that is located and licensed to do banking business in
the State of
     (C) A custodial officer shall not permit
more than 25 percent of the moneys of a local government that are available for
investment, as determined on the settlement date, to be invested in bankerÂ’s
acceptances of any qualified financial institution.
     (i)(A) Corporate indebtedness subject to a
valid registration statement on file with the Securities and Exchange
Commission or issued under the authority of section 3(a)(2) or 3(a)(3) of the
Securities Act of 1933, as amended. Corporate indebtedness described in this
paragraph does not include bankerÂ’s acceptances. The corporate indebtedness
must be issued by a commercial, industrial or utility business enterprise, or
by or on behalf of a financial institution, including a holding company owning
a majority interest in a qualified financial institution.
     (B) Corporate indebtedness must be rated
on the settlement date P-1 or Aa or better by MoodyÂ’s Investors Service or A-1
or AA or better by Standard & PoorÂ’s Corporation or equivalent rating by
any nationally recognized statistical rating organization.
     (C) Notwithstanding subparagraph (B) of
this paragraph, the corporate indebtedness must be rated on the settlement date
P-2 or A or better by MoodyÂ’s Investors Service or A-2 or A or better by
Standard & PoorÂ’s Corporation or equivalent rating by any nationally
recognized statistical rating organization when the corporate indebtedness is:
     (i) Issued by a business enterprise that
has its headquarters in Oregon, employs more than 50 percent of its permanent
workforce in Oregon or has more than 50 percent of its tangible assets in
Oregon; or
     (ii) Issued by a holding company owning
not less than a majority interest in a qualified financial institution, as
defined in paragraph (h) of this subsection, located and licensed to do banking
business in Oregon or by a holding company owning not less than a majority
interest in a business enterprise described in sub-subparagraph (i) of this
subparagraph.
     (D) A custodial officer may not permit
more than 35 percent of the moneys of a local government that are available for
investment, as determined on the settlement date, to be invested in corporate
indebtedness, and may not permit more than five percent of the moneys of a
local government that are available for investment to be invested in corporate
indebtedness of any single corporate entity and its affiliates or subsidiaries.
     (j) Securities of any open-end or
closed-end management investment company or investment trust, if the securities
are of the types specified in paragraphs (a) to (c), (h) and (i) of this
subsection and if the investment does not cause the county, municipality,
political subdivision or school district to become a stockholder in a joint
company, corporation or association. A trust company or trust department of a
national bank while acting as indenture trustee may invest funds held by it as
indenture trustee in any open-end or closed-end management investment company
or investment trust for which the trust company or trust department of a
national bank or an affiliate of the trust company or trust department of a
national bank acts as investment adviser or custodian or provides other
services. However, the securities of the investment company or investment trust
in which the funds are invested must be of the types specified in paragraphs
(a) to (c), (h) and (i) of this subsection and the investment must not cause
the county, municipality, political subdivision or school district whose funds
are invested to become a stockholder in a joint company, corporation or
association. For purposes of this paragraph, companies are affiliated if they
are members of the same affiliated group under section 1504 of the Internal
Revenue Code of 1986 (26 U.S.C. 1504).
     (k) Repurchase agreements whereby the
custodial officer purchases securities from a financial institution or
securities dealer subject to an agreement by the seller to repurchase the
securities. The repurchase agreement must be in writing and executed in advance
of the initial purchase of the securities that are the subject of the
repurchase agreement. Only securities described in paragraph (a) of this
subsection may be used in conjunction with a repurchase agreement and such
securities shall have a maturity of not longer than three years. The price paid
by the custodial officer for such securities may not exceed amounts or
percentages prescribed by written policy of the Oregon Investment Council or
the Oregon Short Term Fund Board created by ORS 294.885.
     (L) Shares of stock of any company,
association or corporation, including but not limited to shares of a mutual
fund, but only if the moneys being invested are funds set aside pursuant to a
local government deferred compensation plan and are held in trust for the
exclusive benefit of participants and their beneficiaries. [Amended by 1957
c.53 §1; 1957 c.689 §1; 1965 c.404 §1; 1973 c.157 §1; 1973 c.288 §1; 1974 c.36 §9;
1975 c.359 §3; 1977 c.300 §1; 1981 c.804 §84; 1981 c.880 §13; 1983 c.456 §2;
1985 c.256 §2; 1985 c.440 §1; 1985 c.690 §2; 1987 c.493 §1; 1991 c.459 §379;
1993 c.59 §1; 1993 c.452 §1; 1993 c.721 §1; 1995 c.79 §102; 1995 c.245 §2; 1997
c.249 §91; 1997 c.631 §446; 1999 c.601 §1; 2001 c.377 §43; 2003 c.405 §1; 2005
c.443 §§13,13a]
     294.040
Restriction on investments under ORS 294.035. The bonds listed in ORS 294.035 (3)(a) to (c) may be purchased only if
there has been no default in payment of either the principal of or the interest
on the obligations of the issuing county, port, school district or city, for a
period of five years next preceding the date of the investment. [Amended by
1995 c.245 §3; 2005 c.443 §21]
     294.045 [Amended by 1959 c.224 §1; 1973 c.157 §2;
repealed by 1975 c.359 §7]
     294.046
List of approved securities for investment under ORS 294.035; distribution. The State Treasurer shall prepare and keep
current a list of agencies and instrumentalities of the
     294.047
Loss of principal on liquidation of investments. Whenever the custodial officer is forced to
liquidate investments made pursuant to ORS 294.035 and 294.040 to meet current
cash demands and such liquidation results in a loss of invested principal
because the securities were liquidated prior to maturity under market
conditions unfavorable to such liquidation, the loss shall be charged against
current or future investment earnings and the custodial officer shall not be
personally liable to make good such loss. [1959 c.612 §1; 1963 c.465 §1; 1975
c.359 §5]
     294.048
Borrowing money when premature withdrawal or liquidation of certain investments
would cause loss. When funds
invested under ORS 294.035 (3)(d) are required to meet current cash demands and
when withdrawal or liquidation of such investments at the time would cause a
loss because the investment would be withdrawn or liquidated prior to maturity,
the custodial officer may, after receiving the approval of the governing body,
borrow funds on short-term promissory notes that shall be secured by pledging
or assigning the investments held under ORS 294.035 (3)(d). The notes shall
mature in not more than six months after date of issue. If a lender demands
physical possession of the certificates of deposit or other evidence of an
investment pledged or assigned under this section, the custodial officer shall
deliver the certificate or other evidence to the lender. [1967 c.411 §1; 1975
c.359 §6; 1995 c.245 §5; 2005 c.443 §23]
     294.050
County borrowing money from county general road fund. The county court or board of county
commissioners may borrow money from the general road fund of the county to
supplement depleted election accounts within the general fund of the county if
there is no money within the emergency fund of the county to supplement the
depleted accounts within the general fund. The amount so borrowed shall be
returned to the general road fund during the following fiscal year from the
first funds available in the general fund, or from the emergency fund. [Amended
by 1959 c.664 §29; 1969 c.616 §1]
     294.052
Definitions; investment by municipality of proceeds of bonds. (1) As used in this section:
     (a) “Bond” has the meaning given that term
in ORS 287A.001.
     (b) “Municipality” means a unit of local
government within
     (2) Notwithstanding ORS 294.135 or 294.145
or any other law or charter provision, a municipality may invest proceeds of
bonds and amounts held in a bond payment reserve or proceeds fund or account in
float agreements, debt service deposit agreements, forward investment
agreements, guaranteed investment contracts or other investment agreements if
the agreements or contracts:
     (a) Produce a guaranteed rate of return;
     (b) Are fully collateralized by direct
obligations of, or obligations guaranteed by, the
     (c) Require that the collateral be held by
the municipality, an agent of the municipality or a third-party safekeeping
agent. [1999 c.559 §21; 2001 c.537 §7; 2007 c.783 §117]
     294.053
Investment by county in master warrants of county. A county treasurer may invest any sinking
fund, bond fund or surplus of funds in the custody of the county treasurer in
master warrants of that county issued under ORS 287A.482 to 287A.488. [1959
c.208 §1]
     294.055
Use by counties of moneys received from federal government under the Mineral
Leasing Act. All funds
received from the United States Government under the Mineral Leasing Act and
Acts amendatory thereof and distributed to counties pursuant to ORS 293.565
shall be used for the support of public schools or for the construction and
maintenance of public roads in such counties.
     294.060
Apportionment of moneys received by counties from federal forest reserves to
road and school funds. (1)
The moneys received by each county under ORS 293.560 shall be divided 75
percent to the road fund and 25 percent to the school fund of the county and,
subject to subsection (2) of this section, the moneys shall be expended as
other moneys in those funds are expended.
     (2) The moneys apportioned to the county
road fund may be applied in payment of any outstanding road bonds or may be
placed in any county road bond sinking fund for the purpose of being so
applied.
     (3) Notwithstanding the division of receipts
specified in subsection (1) of this section, in any county east of the summit
of the Cascade Mountains with a population of less than 9,000 and more than
6,500, according to the 1990 federal decennial census, moneys from the road
fund in excess of $2 million may be transferred to the school fund when the
amount of money credited to the road fund under subsection (1) of this section
exceeds the amount needed for county roads, as determined by the board of
county commissioners. Any amount received by a school district from the school
fund of the county that is in excess of the 25 percent required under
subsection (1) of this section may not be considered as a receipt that would
reduce the districtÂ’s apportionments from the State School Fund.
     (4) Notwithstanding the division of
receipts specified in subsection (1) of this section, in any county east of the
summit of the Cascade Mountains with a population of less than 58,000 and more
than 55,000, according to the 1990 federal decennial census, if the moneys
credited to the road fund under subsection (1) of this section exceed the
amount needed for county roads, as determined by the county governing body, the
portion of such moneys in excess of an amount specified by the county governing
body may be transferred to the school fund of the county or may be transferred
directly to the school districts of the county in accordance with procedures
established by the county governing body. The county governing body may
distribute moneys under this subsection among the several school districts
without regard to the percentage of the resident average daily membership in
each school district. Moneys transferred under this subsection may be
transferred upon the condition that any school district receiving a share of such
moneys must use the moneys only for a purpose described in ORS 328.205 (1)(a)
or (c). Any amount received by a school district from the county under this
subsection that is in excess of the 25 percent required under subsection (1) of
this section may not be considered as a receipt that would reduce the districtÂ’s
apportionments from the State School Fund.
     (5) Notwithstanding the division of
receipts specified in subsection (1) of this section, in any county east of the
summit of the Cascade Mountains with a population of less than 6,500, according
to the 1990 federal decennial census, moneys received by the county under ORS
293.560 may be divided between the road fund and the school fund of the county
as specified under an agreement between the county governing body and the
education service district board of the county that provides for a different
apportionment of those moneys. Any amount received by a school district from
the school fund of the county that is in excess of the 25 percent required
under subsection (1) of this section may not be considered as a receipt that
would reduce the districtÂ’s apportionments from the State School Fund.
     (6) Notwithstanding the division of
receipts specified in subsection (1) of this section, in any county west of the
summit of the Cascade Mountains with a population of less than 19,500 and more
than 6,500, according to the 1990 federal decennial census, moneys from the
road fund in excess of $1 million may be transferred to the school fund when
the amount of money credited to the road fund under subsection (1) of this
section exceeds the amount needed for county roads, as determined by the board
of county commissioners. Any amount received by a school district from the
school fund of the county that is in excess of the 25 percent required under
subsection (1) of this section may not be considered as a receipt that would
reduce the districtÂ’s apportionments from the State School Fund.
     (7) As used in subsections (3) to (6) of
this section, “summit of the
     Note: Section 4, chapter 894, Oregon Laws 2007,
provides:
     Sec.
4. (1) Notwithstanding ORS
294.060 and 368.705, moneys described in ORS 294.060 (1) that are received by
     (2) Notwithstanding ORS 294.060 and
368.705, moneys described in ORS 294.060 (1) that are received by
     (3) This section is repealed on January 2,
2014.
     (4) This section applies to moneys
described in subsections (1) and (2) of this section that are received before,
on or after the effective date of this 2007 Act [September 27, 2007]. [2007
c.894 §4]
     294.065
Use by counties of moneys received from federal government under the federal
Flood Control Act. All
moneys received from the United States Government under the federal Flood
Control Act, and Acts amendatory thereof and supplemental thereto, and
distributed to counties pursuant to ORS 293.570, shall be used for the benefit
of the public schools and public roads of the counties receiving the funds.
     294.070
Expenditure of Taylor Grazing Act funds; advisory board. (1) Except for moneys required to be
expended through the county general fund as required by subsection (5) of this
section, all moneys paid to a county under ORS 293.575 shall be deposited with
the county treasurer and credited to a special fund designated the Range
Improvement Fund of Grazing District No. _____. The county treasurer as ex
officio district treasurer shall disburse the moneys in the Range Improvement
Fund only upon the written order of the grazing advisory board.
     (2) Except as provided in subsection (4)
of this section, money from grazing fees of grazing districts shall be expended
within such district as the grazing advisory board may direct and shall be
expended only for range improvements, such as fences, reservoirs, wells, water
development, maintenance and other range improvements approved by the grazing
advisory board.
     (3) Pending approval by the grazing
advisory board of the expenditure of such money, all or any part of it may be
invested in United States Government securities. In such case the securities
shall be held by the county treasurer in lieu of such money so invested and
subject to liquidation and expenditure when recommended by the grazing advisory
board.
     (4) In counties receiving funds from
grazing districts containing Indian lands ceded to the
     (5) In counties in which there are leased
lands but no grazing district, such funds shall be expended by the county court
through the county general fund.
     (6) As used in this section, “grazing
advisory board” means a board appointed by the governing body of any county
receiving funds under ORS 293.575 and authorized to expend those funds as
provided in this section. [Formerly 606.230; 1969 c.255 §1; 1977 c.115 §1; 1981
c.42 §1; 1991 c.67 §73]
     294.080
Disposition of interest earned on funds held by county treasurer. (1) Except as provided in subsections (2)
and (3) of this section, the county treasurer shall credit to the general fund
of the county all interest received from any investment made from the general
cash balance of any funds in the hands of the county treasurer. If the entire
investment is made from a specific fund, however, the treasurer shall credit
the interest to the fund from which the investment was made.
     (2) The county fiscal officer of a
community college district, as defined in ORS 341.005, shall credit to the
general fund of the district all interest received from any investment made by
funds in the hands of the county fiscal officer. If the entire investment is
made from a specific fund, however, the county fiscal officer shall credit the
interest to the fund from which the investment was made.
     (3) Interest earned by investment of any
moneys received by the county treasurer from any source, which moneys have been
designated for a particular municipal corporation as defined in ORS 294.311,
shall be credited to the account of the particular municipal corporation and
not to any county fund. [1963 c.316 §1; 1971 c.513 §54; 1979 c.762 §8; 1997
c.308 §33]
     294.085
Examining books and papers of county officers. (1) The county court or board of county
commissioners, while sitting for county business at the regular terms in
January and July of each year, shall carefully examine all books and papers
relating to the financial affairs of the county offices of county clerk, clerk
of the county court, treasurer and sheriff of the county.
     (2) The county clerk and clerk of the
county court shall exhibit the numbered orders and vouchers referred to in ORS
294.090, together with the stubs of the warrants, and all other books and
papers relating to the financial affairs of the county, for the inspection of
the county court or board of county commissioners at the time provided for in
subsection (1) of this section. [Amended by 1985 c.565 §49]
     294.090
County orders and vouchers to be numbered to correspond to warrants drawn. The county clerk and clerk of the county
court shall number all orders and vouchers with numbers to correspond with
warrants drawn.
     294.095
Action or proceeding with respect to budget or levy; fiscal year with respect
to which taken. Wherever it
is provided by law that any action or proceeding of any county, city, school
district or other municipal corporation or body politic shall be taken with
respect to a budget or tax levy for the calendar year, or for a fiscal year
closing on any day other than June 30, each such action or proceeding shall be
taken with respect to the fiscal year commencing on July 1 and closing on June
30.
     294.100
Public official expending money in excess of amount or for different purpose
than provided by law unlawful; civil liability. (1) It is unlawful for any public official
to expend any moneys in excess of the amounts provided by law, or for any other
or different purpose than provided by law.
     (2) Any public official who expends any
public moneys in excess of the amounts or for any other or different purpose
than authorized by law shall be civilly liable for the return of the money by
suit of the district attorney of the district in which the offense is
committed, or at the suit of any taxpayer of such district, if the expenditure
constitutes malfeasance in office or willful or wanton neglect of duty.
     (3) On the demand in writing of 10
taxpayers of any municipal corporation with a population exceeding 100,000
inhabitants, filed with the tax supervising and conservation commission in the
county in which the municipal corporation is situated, which demand sets forth
that a public official has unlawfully expended public moneys in excess of the
amount or for any other or different purpose than provided by law and that the
expenditure constitutes malfeasance in office or willful or wanton neglect of
duty, the tax supervising and conservation commission shall make an
investigation of the facts as to the expenditure. If the tax supervising and
conservation commission finds that public moneys have been unlawfully expended
and that the expenditure constitutes malfeasance in office or willful or wanton
neglect of duty, the commission shall proceed at law in the courts against the
public official who has unlawfully expended the moneys for the return of the
moneys unlawfully expended to the treasury of the municipal corporation. A
right of action hereby is granted to the tax supervising and conservation
commission for the purposes of this section.
     (4) This section does not apply to the
expenditure of revenues that are allowed to be accrued from a fiscal year to
the prior fiscal year under ORS 294.447. [Amended by 2001 c.399 §1; 2002 s.s.4
c.1 §§9,10]
     294.105 [Amended by 1963 c.9 §15; 1973 c.315 §1;
repealed by 1983 c.537 §7]
     294.110 [Repealed by 1953 c.306 §18]
     294.115 [1953 c.655 §1; repealed by 1963 c.576 §44]
     294.120
Use of facsimile signatures.
(1) When authorized to use facsimile signatures by the governing body of any
county, city, district organized for public purposes or any other public
corporation or political subdivision of the state, any person authorized to
sign any check, warrant or other instrument on behalf of the county, city,
district, public corporation or political subdivision may, in the discretion of
the person, sign the check, warrant or other instrument by facsimile signature
affixed by rubber stamp or by any mechanical equipment or device.
     (2) Where the use of facsimile signatures
is authorized under this section, the holder or drawee of any check, warrant or
other instrument bearing or purporting to bear a facsimile signature shall be
under no duty to determine the authority of the person who affixed the
facsimile signature to use facsimile signatures. [1955 c.261 §1]
     294.125
Investment of funds authorized by order of governing body; limitations. (1) Subject to ORS 294.040 and 294.135 to
294.155, the custodial officer of any county, municipality, school district or
other political subdivision of this state may, after having obtained a written
order from the governing body of the county, municipality, school district or
other political subdivision, which order shall be spread upon the minutes or
journal of the governing body, invest any sinking fund, bond fund or surplus
funds belonging to that county, municipality, school district or other
political subdivision in the bank accounts, classes of securities at current
market prices, insurance contracts and other investments described in ORS
294.035. However, notwithstanding any provision of ORS 190.003 to 190.250,
except as provided in ORS 294.035:
     (a) No custodial officer of any political
subdivision of this state may accept for investment or invest the funds of any
other political subdivision of this state; and
     (b) No such political subdivision may
tender funds for investment to the custodial officer of any other such
political subdivision.
     (2) Subject to ORS 294.040, 294.135 to
294.155 and subsection (1) of this section, the custodial officer of a port
organized under ORS chapter 777 or 778 may invest any sinking fund, bond fund
or surplus funds belonging to the port in interest-bearing revenue bonds issued
by an export trading corporation formed by the port under ORS 777.755 to
777.800. A custodial officer of a port shall not invest in the aggregate more
than $3 million in revenue bonds issued by an export trading corporation. [1981
c.880 §5; 1983 c.200 §17; 1995 c.245 §6]
     294.135
Investment maturity dates.
(1) An investment made by a custodial officer under ORS 294.035 (3)(a) to (f)
and (h) to (j) or 294.125 may not exceed a maturity of 18 months or the date of
anticipated use of the funds by the county, municipality, school district or
other political subdivision to which the funds belong, whichever period is
shorter. However:
     (a) The custodial officer may make
investments having a maturity longer than 18 months when the governing body of
the county, municipality, school district or other political subdivision to
which the funds belong has adopted a written investment policy that, prior to
adoption, was submitted to the Oregon Short Term Fund Board for review and
comment to the governing body, that includes guidelines concerning maximum
investment maturity dates and that provides by its terms for readoption not
less than annually; or
     (b) When the funds in question are being
accumulated for an anticipated use that will occur more than 18 months after
the funds are invested, then, upon the approval of the governing body of the
county, municipality, school district or other political subdivision, the
maturity of the investment or investments made with the funds may occur when
the funds are expected to be used.
     (2) The maximum term of any repurchase
agreement transaction may not exceed 90 days. [1981 c.880 §§6, 8; 1987 c.389 §1;
1989 c.303 §1; 1995 c.245 §7; 2003 c.41 §1; 2005 c.443 §24]
     294.145
Prohibited conduct for custodial officer. In making investments pursuant to ORS 294.035, the custodial officer
shall not:
     (1) Make a commitment to invest funds or
sell securities more than 14 business days prior to the anticipated date of
settlement of the purchase or sale transaction;
     (2) Enter into any agreement to invest
funds or sell securities for future delivery for a fee other than interest;
     (3) Lend securities to any person or
institution, except on a fully collateralized basis, and except when such
lending is specifically permitted under an investment policy adopted pursuant
to ORS 294.135 (1)(a);
     (4) Pay for any securities purchased by
the custodial officer until the officer has received sufficient evidence of
title thereof. Evidence of title shall be consistent with modern investment,
banking and commercial practices and may include physical possession, book
entry and automated recordation of such title. However, the custodial officer
may instruct one or more custodian banks, as defined in ORS 295.001, to accept
or release securities as that custodial officer considers advisable to be held
in safekeeping for collection of principal and interest or other income; or
     (5) Deliver securities to the purchaser
thereof upon sale prior to receiving payment in full therefor. However, the
custodial officer may deliver the securities to any custodian bank, defined in
ORS 295.001 upon instructions to hold the same pending receipt by the
institution of full payment therefor. [1981 c.880 §7; 1991 c.88 §5; 1995 c.245 §8]
     294.155
Annual audit report; monthly report. (1) The custodial officer for a local government that holds and
invests funds on behalf of another government unit shall at least once a year
submit an audited report to that government unit for which funds are invested.
An audit report shall be submitted to the local governmental unit or units
within 30 days after receipt of the audit report by the custodial officerÂ’s
governing body. This subsection shall not apply to municipal corporations or
political subdivisions exempt from municipal audits in ORS 297.435.
     (2) The custodial officer shall prepare a
report not less than monthly to each county, municipality, school district and
other political subdivision the segregated funds of which the custodial officer
is then investing, as to changes made in the investments of the funds of that
body during the preceding month. If requested by that body, the custodial
officer shall furnish to it details on the investment transactions for its
fund. The custodial officer shall also provide copies of any investment policy
which has been adopted to the custodial officerÂ’s governing body upon request. [1981
c.880 §9; 1995 c.245 §9]
     294.160
     (2) Where a local government exercises
authority to assume the responsibility for a program delivered by the state,
the local government shall provide an opportunity to comment on the difference
between the fee amount charged by the state for such service and the proposed
local fee for the service. [1995 c.576 §5; 2007 c.71 §90]
     294.175
Definitions; county expenditures for assessment; determination of adequacy;
certification of adequacy; appeal of denial of certification; effect of
certification. (1) As used
in this section and ORS 294.178 to 294.187:
     (a) “Department” means the Department of
Revenue.
     (b) “Expenditures” has the meaning given
the term for purposes of ORS 294.305 to 294.520 and may be further defined by
rule of the department. “Expenditures” does not include any item or class of
items that cannot reasonably be allocated to an organizational unit.
     (c) “Expenditures for assessment and
taxation” means expenditures for any of the activities, functions or services
required of a county in the assessment, equalization, levy, collection or
distribution of property taxes under ORS chapters 305, 306, 307, 308, 308A,
309, 310, 311, 312 and 321. “Expenditures for assessment and taxation”
specifically includes expenditures for appraising principal or secondary
industrial properties, the responsibility for the making of which has been
delegated by the department to a county under ORS 306.126 (3).
     (d) “Grant” has the meaning given the term
for purposes of ORS 294.305 to 294.520, and is further described under ORS
294.178.
     (2) On or before May 1 of each year, each
county shall file with the department a true copy of its estimates of
expenditures for assessment and taxation for the ensuing year as prepared for
purposes of ORS 294.352 but in accordance with any rules adopted by the
department.
     (3) Upon receipt of the estimate, the
department shall review the estimate to determine its adequacy to provide the
resources needed to achieve compliance with ORS 308.232 and 308.234, ORS
chapter 309 and other laws requiring equality and uniformity in the system of
property taxation within the county in order that the same equality and
uniformity may be achieved throughout the state.
     (4) If, upon initial review of the
estimate, the department determines that the proposed expenditures, or any of
them, are not at the level or of the type needed to achieve adequacy, the
department shall notify the county governing body. The notice shall contain an
explanation of the reasons for the determination and may describe specific
items or classifications of expenditure which the department has determined are
required, or are not required, in order to achieve adequacy. The notice shall
fix the date upon which a conference with the county governing body or
representatives of the county governing body shall be held.
     (5)(a) Subject to paragraph (b) of this
subsection, if, upon initial review, or upon or after conference held on the
date specified in the notice under subsection (4) of this section, or another
date or dates convenient to the department and the county governing body, the
department determines that the expenditures as initially filed, or that the
expenditures as agreed upon at the conference, are at the level and of the type
needed to achieve adequacy for that year or over a period of years under a plan
presented as described under ORS 294.181, the department shall certify to the
county governing body that its estimate of expenditures for assessment and
taxation so determined are adequate and that the county will be included in the
computation made under ORS 294.178 for the purpose of determining the amount of
that countyÂ’s quarterly grant. The department shall include in the
certification an estimate of the percentage share of the funds available in the
County Assessment Function Funding Assistance Account that the county will
receive under ORS 294.178 and an estimate of the total amount of the grant that
will be forthcoming to the county from that account for the ensuing year on
account of the certification.
     (b) The department shall not certify
expenditures under this subsection that the department determines are in excess
of the expenditures necessary to meet the requirements of subsection (3) of
this section.
     (6) Any certification issued under
subsection (5) of this section shall be issued as of the June 15 following the
filing of the estimate of expenditures under subsection (2) of this section.
If, as of June 15, agreement has not been reached between the department and
the county governing body upon the estimate, the department shall issue a
denial of certification.
     (7) A county may appeal the determination
of the department under subsection (5)(b) of this section or the denial of
certification issued under subsection (6) of this section to the Director of
the Oregon Department of Administrative Services. Appeal shall be filed within
10 days after the date that the denial of certification is issued. The sole
issue upon appeal shall be the adequacy of expenditures for assessment and taxation
as filed with the department under subsection (2) of this section, and the
determination, if any, made by the department under subsection (5)(b) of this
section. If the Oregon Department of Administrative Services does not issue an
order approving the expenditures before July 1 of the fiscal year for which the
expenditures are proposed, the certification for purposes of ORS 294.175 to
294.187 shall be considered denied. [1989 c.796 §2; 1995 c.748 §11; 1997 c.782 §2;
1999 c.314 §88; 2003 c.169 §9]
     294.178
Assessment grant to county; determination of grant amount. (1) Before issuing any certificate under ORS
294.175, the Department of Revenue shall estimate the amount available in the
County Assessment Function Funding Assistance Account created under ORS 294.184
for distribution as grants to counties for the ensuing fiscal year.
     (2) The estimate shall be used to
determine the estimated percent of the moneys available in the County
Assessment Function Funding Assistance Account that each county will receive as
grants and the total estimated grant that each county will receive for the
ensuing fiscal year. The estimates so determined shall serve as the estimates
required to be included in any certification issued under ORS 294.175 for that
county.
     (3) On or before the 25th day of the month
following the close of each fiscal quarter, the department shall pay a
percentage of the moneys in the County Assessment Function Funding Assistance
Account as of the close of that fiscal quarter to each county to which a
certificate has been issued under ORS 294.175.
     (4) Except as provided under subsection
(5) of this section, the percentage to be paid to each county under subsection
(3) of this section shall be the percentage that the expenditures of the county
certified by the department to the county governing body under ORS 294.175
bears to the total of all expenditures of all counties certified by the
department to counties under ORS 294.175. In determining the expenditures of a
county or in determining the total of all expenditures for purposes of this
subsection:
     (a) No expenditures shall be included that
have not been certified under ORS 294.175.
     (b) No expenditures of any county that did
not file an estimate of expenditures under ORS 294.175 shall be included.
     (c) No expenditures of any county for
which certification has been denied shall be included.
     (d) No expenditures of any county that
does not make its appropriation under ORS 294.435 based upon 100 percent of the
expenditures certified shall be included.
     (e) No expenditures of any county that
does not certify compliance under ORS 294.181 shall be included.
     (5) If the expenditures of a county are
not included for a fiscal quarter on account of subsection (4) of this section,
no grant shall be made to that county under subsection (3) of this section for
that fiscal quarter. If grant funds are denied to any county under this
subsection for any fiscal quarter, the percentage determined under subsection
(4) of this section shall be redetermined, excluding from the computation for
that fiscal quarter the certified expenditures of the county for which grant
funds are denied to the end that all of the funds available in the County
Assessment Function Funding Assistance Account as of the close of the fiscal
quarter may be distributed. [1989 c.796 §3; 1997 c.782 §3; 2003 c.273 §1]
     294.181
Alternative method for certification. (1) If, at a conference held pursuant to notice under ORS 294.175, it
becomes apparent that a county will be unable to meet the level of expenditures
necessary to achieve adequacy for the tax year for which the filing under ORS
294.175 was made, the Department of Revenue may certify to the county governing
body expenditures for assessment and taxation at the level contained in the
countyÂ’s estimate on file with the department or as adjusted by the conference
agreement.
     (2) The department shall not certify
expenditures under subsection (1) of this section if the county does not
present to the department at the conference a plan to achieve adequacy in
assessment and taxation within a number of years specified by the Department of
Revenue.
     (3) Any county for which expenditures are
certified pursuant to this section shall certify to the department, not less
than 15 days prior to the close of the fiscal quarter, that the county is in
compliance with the conference agreement and the plan developed at the
conference agreement. [1989 c.796 §4]
     294.184
     (a) All moneys paid over by the county
treasurers as provided under ORS 294.187; and
     (b) All interest earned upon any moneys in
the account.
     (2) Of the moneys in the account as of the
last day of each fiscal quarter, the moneys necessary to pay the following
Department of Revenue expenses shall be transferred to a suspense account of
the department created under ORS 293.445 and are continuously appropriated to
the department for:
     (a) Expenses incurred in carrying out the
purposes of ORS 294.175 to 294.184; and
     (b) Appraisal expenses incurred by the
department in appraising principal and secondary industrial properties identified
under ORS 306.126 and property of centrally assessed companies under ORS
308.505 to 308.665.
     (3) The total amount of moneys transferred
to the suspense account of the department under subsection (2) of this section
may not exceed 10 percent of the moneys in the account as of the last day of
the fiscal quarter for which the transfer is being made.
     (4) The remainder of the moneys in the
account as of the last day of the fiscal quarter shall be used for the purpose
of making the grant payments to counties as required under ORS 294.178 and are
continuously appropriated to the department for that purpose. [1989 c.796 §6;
1999 c.701 §2a; 2001 c.303 §13]
     294.187
     (a) Moneys deposited and credited to the
fund under ORS 311.508.
     (b) Moneys deposited and credited to the
fund under ORS 205.323.
     (c) Interest earned upon moneys credited
to the fund.
     (2) The county treasurer shall pay over
the moneys in the fund, determined as of the last day of the fiscal quarter, to
the State Treasurer on or before the 10th day of the month following the last
day of the fiscal quarter.
     (3) The State Treasurer shall deposit and
credit the moneys received under subsection (2) of this section to the County
Assessment Function Funding Assistance Account referred to in ORS 294.184.
     (4) If the county treasurer fails to pay
over moneys, as required under subsection (2) of this section, then any unpaid
moneys shall be a debt due and owing by the county to the state and the county
shall pay the legal rate of interest thereon from the due date until paid.
Payment of interest under this section shall not relieve the county treasurer
from any penalty imposed by law for failure to make the payments, and in
addition, the county treasurer shall be liable under ORS 311.375 (4)(a) and
(b).
     (5) ORS 294.305 to 294.565 do not apply to
a fund created under this section. [1989 c.796 §7; 2003 c.273 §2]
     294.205 [Amended by 1963 c.544 §13; repealed by 1971
c.267 §16]
     294.210 [Amended by 1963 c.544 §14; repealed by 1971
c.267 §16]
     294.215 [Repealed by 1971 c.267 §16]
     294.220 [Repealed by 1971 c.267 §16]
     294.225 [Repealed by 1971 c.267 §16]
     294.230 [Amended by 1957 c.153 §1; 1959 c.243 §1;
1963 c.504 §1; 1983 c.310 §17; 1991 c.683 §2; repealed by 1999 c.654 §37]
     294.235 [Amended by 1957 c.153 §2; repealed by 1999
c.654 §37]
     294.240 [Amended by 1957 c.153 §3; repealed by 1999
c.654 §37]
     294.245 [Amended by 1957 c.153 §4; repealed by 1999
c.654 §37]
PUBLICATION
OF FINANCIAL REPORTS
     294.250
Publication by county governing body of schedule of expenditures and statement
of proceedings; manner of publication; notice. (1) The county governing body of each county
shall cause to be made out and published at the expense of the county by the
last day of each month a schedule of those expenditures of the county which
singly exceed $500 for the previous month. The schedule shall also include
expenditures made to claimants who receive in excess of $500 for the previous
month in return for a combination of articles or services which individually
cost less than $500. The publication shall also include a concise statement of
the proceedings of the governing body in the transaction of county business
entered of record during the previous month.
     (2) The schedule of expenditures shall
state the names of all claimants, the general purpose of the article or service
for which payment is claimed in each bill and the amount ordered paid. The
statement of proceedings shall be a true reflection of actions taken at any
public meeting of the county governing body.
     (3) Except as otherwise provided in this
subsection, the county shall not be required to publish any claim for personal
services of regular county officers and employees occupying budgeted positions.
Once each year the county shall publish the name and gross monthly salary of
all regular officers and employees occupying budgeted positions.
     (4) The publications required by this
section shall not apply to any counties having a tax supervising and
conservation commission.
     (5) The publications required by this
section shall be made by posting on the bulletin board of the county courthouse
and at all public libraries in the county. The county shall also publish at
least once each month in a newspaper of general circulation in the county a
notice stating that the information required to be published under this section
is posted and available for review at the county courthouse and public
libraries. The notice shall also state that copies of all or part of the posted
information may be obtained from the county upon request and upon payment of a
fee not exceeding the actual costs incurred by the county in making copies of
the posted information. [Amended by 1963 c.360 §1; 1979 c.651 §1; 1987 c.435 §1;
1991 c.285 §1]
     294.255 [Repealed by 1991 c.285 §2]
     294.260 [Repealed by 1991 c.285 §2]
LOCAL BUDGET
LAW
     294.305
Sections constituting Local Budget Law. ORS 294.305 to 294.565 shall be known as the Local Budget Law.
     294.310 [Amended by 1959 c.262 §1; repealed by 1963
c.576 §44]
     294.311
Definitions for ORS 294.305 to 294.565. As used in ORS 294.305 to 294.565, unless the context requires
otherwise:
     (1) “Accrual basis” means the recording of
the financial effects on a municipal corporation of transactions and other
events and circumstances that have cash consequences for the municipal
corporation in the periods in which those transactions, events and
circumstances occur, rather than only in the periods in which cash is received
or paid by the municipal corporation.
     (2) “Activity” means a specific and
distinguishable service performed by one or more organizational components of a
municipal corporation to accomplish a function for which the municipal
corporation is responsible.
     (3) “Appropriation” means an authorization
granted by the governing body to make expenditures and to incur obligations for
specific purposes. An appropriation is limited to a single fiscal year for
municipal corporations preparing annual budgets, or to the budget period for
municipal corporations preparing biennial budgets.
     (4) “Basis of accounting” means the cash
basis, the modified accrual basis or the accrual basis.
     (5) “Budget” means a plan of financial
operation embodying an estimate of expenditures for a given period or purpose
and the proposed means of financing the estimated expenditures.
     (6) “Budget document” means the estimates of
expenditures and budget resources as set forth on the estimate sheets, tax levy
and the financial summary.
     (7) “Budget period” means, for municipal
corporations with the power to levy a tax upon property, the two-year period
commencing on July 1 and closing on June 30 of the second calendar year next
following, and for all other municipal corporations, an accounting period of 24
months ending on the last day of any month.
     (8) “Budget resources” means resources to
which recourse can be had to meet obligations and expenditures during the
fiscal year or budget period covered by the budget.
     (9) “Cash basis” means a basis of
accounting under which transactions are recognized only in the period during
which cash is received or disbursed.
     (10) “Current budget period” means the
budget period in progress.
     (11) “Current year” means the fiscal year
in progress.
     (12) “Encumbrance accounting” means the
method of accounting under which outstanding encumbrances are recognized as
reductions of appropriations and the related commitments are carried in a
reserve for encumbrances until liquidated, either by replacement with an actual
liability or by cancellation. This method of accounting may be used as a
modification to the accrual basis of accounting in accordance with generally
accepted accounting principles.
     (13) “Encumbrances” means obligations in
the form of purchase orders, contracts or salary commitments which are
chargeable to an appropriation and for which a part of the appropriation is
reserved. Obligations cease to be encumbrances when paid or when the actual
liability is set up.
     (14) “Ensuing budget period” means the
budget period following the current budget period.
     (15) “Ensuing year” means the fiscal year
following the current year.
     (16) “Expenditure” means, if the accounts
are kept on the accrual basis or the modified accrual basis, decreases in net
financial resources and may include encumbrances. If the accounts are kept on
the cash basis, the term covers only actual disbursement, the drawing of the check
or warrant for these purposes and not encumbrances, except that deferred
employee compensation shall be included as a personal service expenditure where
an approved deferred employee compensation plan is in effect for a municipal
corporation.
     (17) “Fiscal year” means for municipal
corporations with the power to impose ad valorem property taxes, the fiscal
year commencing on July 1 and closing on June 30, and for all other municipal
corporations, an accounting period of 12 months ending on the last day of any
month.
     (18) “Fund balance” means the excess of
the assets of a fund over its liabilities and reserves except in the case of
funds subject to budgetary accounting where, prior to the end of a fiscal
period, it represents the excess of the fundÂ’s assets and estimated revenues
for the period over its liabilities, reserves and appropriations for the
period.
     (19) “Governing body” means the city
council, board of commissioners, board of directors, county court or other
managing board of a municipal corporation including a board managing a
municipally owned public utility or a dock commission.
     (20) “Grant” means a donation or
contribution of cash to a governmental unit by a third party.
     (21) “Intergovernmental entity” means an
entity created under ORS 190.010 (5). The term includes any council of
governments created prior to the enactment of ORS 190.010 (5).
     (22) “Internal service fund” means a fund
properly authorized to finance, on a cost reimbursement basis, goods or
services provided by one organizational unit of a municipal corporation to
other organizational units of the municipal corporation.
     (23) “Liabilities” means probable future
sacrifices of economic benefits, arising from present obligations of a
municipal corporation to transfer assets or provide services to other entities
in the future as a result of past transactions or events. The term does not
include encumbrances.
     (24)(a) “Modified accrual basis” means the
accrual basis of accounting adapted to the governmental fund-type measurement focus.
Under this basis of accounting, revenues and other financial resource
increments, such as bond proceeds, are recognized when they become susceptible
to accrual, that is, when they become both measurable and available to finance
expenditures in the current period.
     (b) As used in this subsection, “available”
means collectible in the current period or soon enough thereafter to be used to
pay liabilities of the current period. Under this basis of accounting,
expenditures are recognized when the fund liability is incurred except for:
     (A) Inventories of material and supplies
that may be considered expenditures either when purchased or when used; and
     (B) Prepaid insurance and similar items
that may be considered expenditures either when paid for or when consumed.
     (25) “Municipal corporation” means any
county, city, port, school district, union high school district, community
college district and all other public or quasi-public corporations including a
municipal utility or dock commission operated by a separate board or
commission. “Municipal corporation” includes an intergovernmental entity or
council of governments that proposes to impose or imposes ad valorem property
taxes.
     (26) “Net working capital” means the sum
of the cash, cash equivalents, investments, accounts receivable expected to be
converted to cash during the ensuing year or ensuing budget period,
inventories, supplies and prepaid expenses less current liabilities and, if
encumbrance accounting is adopted, reserve for encumbrances. The term is not
applicable to the cash basis of accounting.
     (27) “Object” means, as used in
expenditure classification, articles purchased including, but not limited to,
land, buildings, equipment and vehicles, or services obtained including, but
not limited to, administrative services, clerical services, professional
services, property services and travel, as distinguished from the results
obtained from expenditures.
     (28) “Object classification” means a
grouping of expenditures on the basis of goods or services purchased,
including, but not limited to, personal services, materials, supplies and
equipment.
     (29) “Operating taxes” has the meaning
given that term in ORS 310.055.
     (30) “Organizational unit” means any
administrative subdivision of a municipal corporation, especially one charged
with carrying on one or more functions or activities.
     (31) “Population” means the number of
inhabitants of a municipal corporation according to certified estimates of
population made by the State Board of Higher Education.
     (32) “Program” means a group of related
activities aimed at accomplishing a major service or function for which the
municipality is responsible.
     (33) “Public utility” means those public
utility operations authorized by ORS chapter 225.
     (34) “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.
     (c) Hand delivery to each street address
within the jurisdictional boundaries of the municipal corporation.
     (35) “Receipts” means cash received unless
otherwise qualified.
     (36) “Reserve for encumbrances” means a
reserve representing the segregation of a portion of a fund balance to provide
for unliquidated encumbrances.
     (37) “Revenue” means the gross receipts
and receivables of a governmental unit derived from taxes, licenses, fees and
from all other sources, but excluding appropriations, allotments and return of
principal from investment of surplus funds.
     (38) “Special revenue fund” means a fund
properly authorized and used to finance particular activities from the receipts
of specific taxes or other revenues. [1963 c.576 §3; 1971 c.513 §55; 1975 c.319
§2; 1977 c.102 §4; 1977 c.305 §1; 1979 c.686 §1; 1997 c.308 §3; 1997 c.541 §322;
1999 c.632 §1; 2001 c.104 §102; 2001 c.135 §3; 2003 c.235 §1]
     294.315 [Repealed by 1963 c.576 §44]
     294.316
Application. The provisions
of ORS 294.305 to 294.565 do not apply to the following municipal corporations and
entities:
     (1) Drainage districts organized under ORS
chapter 547;
     (2) District improvement companies
organized under ORS chapter 554;
     (3) Highway lighting districts organized
under ORS chapter 372;
     (4) Irrigation districts organized under
ORS chapter 545;
     (5) Road districts organized under ORS
chapter 371;
     (6) Soil and water conservation districts
organized under ORS chapter 568 that will not levy an ad valorem tax during the
ensuing year or ensuing budget period;
     (7) Municipal public utilities operating
under separate boards or commissions, authorized under ORS chapter 225 and city
charters, and peopleÂ’s utility districts organized under ORS chapter 261, both
operating without ad valorem tax support during the ensuing year or ensuing
budget period;
     (8) Housing authorities organized under
ORS 446.515 to 446.547 and ORS chapter 456 that are not carrying out urban
renewal activities using a division of ad valorem taxes under ORS 457.440
during the ensuing year or ensuing budget period;
     (9) Water control districts organized
under ORS chapter 553 that will not levy an ad valorem tax during the ensuing
year or ensuing budget period;
     (10) Hospital financing authorities
organized under ORS 441.525 to 441.595;
     (11) Export trading corporations organized
under ORS 777.755 to 777.800;
     (12) Diking districts organized under ORS
chapter 551;
     (13) Health districts organized under ORS
440.315 to 440.410; and
     (14) Intergovernmental entities created
under ORS 190.010, including councils of governments described in ORS 294.900
to 294.930, except that an intergovernmental entity or a council of governments
that proposes to impose ad valorem property taxes for the ensuing year or
budget period is subject to ORS 294.305 to 294.565 for the budget prepared for
that year or period. [1963 c.576 §35; 1965 c.451 §1; 1979 c.621 §8a; 1979 c.686
§9; 1981 c.918 §5; 1983 c.200 §18; 1985 c.361 §1; 1999 c.632 §2; 2001 c.135 §4;
2001 c.251 §3; 2003 c.235 §2]
     294.320 [Repealed by 1963 c.576 §44]
     294.321
Purposes. The purposes of
ORS 294.305 to 294.565 are:
     (1) To establish standard procedures for
the preparation, presentation, administration and appraisal of budgets of
municipal corporations;
     (2) To provide for a brief description of
the programs of a municipal corporation and the fiscal policy which is to
accomplish these programs;
     (3) To provide for estimation of revenues,
expenditures and proposed taxes;
     (4) To provide specific methods for
obtaining public views in the preparation of fiscal policy;
     (5) To provide for the control of revenues
and expenditures for the promotion of efficiency and economy in the expenditure
of public funds; and
     (6) To enable the public, taxpayers and
investors to be apprised of the financial policies and administration of the
municipal corporation in which they are interested. [1963 c.576 §2; 1997 c.308 §4;
1997 c.541 §323]
     294.323
Budget period. (1) A
municipal corporation, by ordinance, resolution or charter, may provide that
the budget and budget documents for the municipal corporation be prepared for a
period of 24 months. Unless so authorized by ordinance, resolution or charter,
a municipal corporation may not prepare a budget and budget documents for a
period longer than one fiscal year.
     (2) When the governing body of a municipal
corporation prepares a biennial budget, the governing body shall certify to the
assessor for each fiscal year of the budget period the ad valorem property tax
amount or rate for the ensuing fiscal year. [2001 c.135 §2]
     Note: 294.323 was added to and made a part of
294.305 to 294.565 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     294.325 [Amended by 1961 c.397 §1; repealed by 1963
c.576 §44]
     294.326
Compliance with Local Budget Law required prior to expenditure or tax
certification; exceptions.
(1) Except as provided in subsections (3) to (11) of this section, it is
unlawful for any municipal corporation to 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) 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 this
subsection is lawful only after enactment by the governing body of the
municipal corporation of appropriation ordinances or resolutions authorizing
the expenditure.
     (4) Subsection (1) of this section does
not apply whenever the governing body of a municipal corporation has declared
the existence of an unforeseen occurrence or condition which could not have
been foreseen at the time of the preparation of the budget for the current year
or current budget period or could not have foreseen a pressing necessity for
the expenditure or has received 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) 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) Subsection (1) of this section does
not apply to:
     (a) Expenditures of funds received from
the sale of conduit revenue bonds or other borrowings issued for private
business entities or nonprofit corporations by public bodies, as defined in ORS
287A.001, or the State of Oregon or to pay debt service on the bonds;
     (b) Expenditures of funds that have been
irrevocably placed in escrow for the purpose of defeasing and paying bonds;
     (c) Expenditures of assessments or other
revenues to redeem bonds that are payable from the assessments or other
revenues, when the assessments or other revenues are received as a result of
prepayments or other unforeseen circumstances; or
     (d) Expenditures of funds that are held as
debt service reserves for bonds if the expenditures are made to:
     (A) Pay debt service on the bonds;
     (B) Redeem the bonds; or
     (C) Fund an escrow or trust account to
defease or pay the bonds.
     (7) 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 by owners of benefited property.
     (8) Subsection (1) of this section does
not apply to the expenditure of funds accumulated to pay deferred employee
compensation.
     (9) Subsection (1) of this section does
not apply to refunds or the interest on refunds granted by counties under ORS
311.806.
     (10) 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. Expenditure of refunded
amounts to which this subsection applies is lawful only after the governing
body of the municipal corporation has enacted, after public hearing,
appropriate appropriation ordinances or resolutions authorizing the
expenditure.
     (11) 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. [1963 c.576 §4; 1965 c.451 §2; 1977 c.102 §2; 1979 c.310 §1; 1987 c.280
§1; 1991 c.902 §110; 1995 c.333 §8; 1997 c.308 §5; 1997 c.541 §324; 1999 c.632 §3;
2001 c.135 §5; 2003 c.195 §25; 2005 c.443 §14; 2007 c.783 §118]
     294.330 [Repealed by 1963 c.576 §44]
     294.331
Budget officer. The
governing body of each municipal corporation shall, unless otherwise provided
by county or city charter, designate one person to serve as budget officer. The
budget officer, or the person or department designated by charter and acting as
budget officer, shall prepare or supervise the preparation of the budget
document. The budget officer shall act under the direction of the executive officer
of the municipal corporation, or where no executive officer exists, under the
direction of the governing body. [1963 c.576 §5]
     294.335 [Repealed by 1963 c.576 §44]
     294.336
Budget committee. (1) Except
as provided in ORS 294.341, the governing body of each municipal corporation
shall establish a budget committee in accordance with the provisions of this
section.
     (2) The budget committee shall consist of
the members of the governing body and a number, equal to the number of members
of the governing body, of electors of the municipal corporation appointed by
the governing body; if there are electors fewer than the number required, the
governing body and the electors who are willing to serve shall be the budget
committee; and if there are no electors willing to serve, the governing body
shall be the budget committee.
     (3) The members of the budget committee
shall receive no compensation for their services as members of such committee.
     (4) Appointive members of the budget
committee may not be officers, agents or employees of the municipal
corporation.
     (5) Appointive members of a budget
committee that prepares an annual budget shall be appointed for terms of three
years. The terms shall be staggered so that, as near as practicable, one-third
of the terms of the appointive members end each year.
     (6) Appointive members of a budget
committee that prepares a biennial budget shall be appointed for terms of four
years. The terms shall be staggered so that, as near as practicable, one-fourth
of the terms of the appointive members end each year.
     (7) If any appointive member is unable to
serve the term for which the member was appointed, or an appointive member
resigns prior to completion of the term for which the member was appointed, the
governing body of the municipal corporation shall fill the vacancy by
appointment for the unexpired term.
     (8) If the number of members of the
governing body is reduced or increased by law or charter amendment, the
governing body of the municipal corporation shall reduce or increase the number
of appointive members of the budget committee so that the number thereof shall
be equal to but not greater than the number of members of the governing body.
To effect a reduction, the governing body of the municipal corporation may remove
such number of appointive members as may be necessary. The removals shall be
made so that the number remaining will be divided into three, if the terms of
the appointive members are governed by subsection (5) of this section, or four,
if the terms of the appointive members are governed by subsection (6) of this
section, equal or approximately equal groups as to terms. In case of an
increase, additional appointive members shall be appointed for such terms so
that they, together with the members previously appointed, will be divided into
three or four, as appropriate under this section, equal or approximately equal
groups as to terms.
     (9) The budget committee shall at its
first meeting after its appointment elect a presiding officer from among its
members. [1963 c.576 §6; 1973 c.61 §1; 1979 c.310 §2; 1997 c.308 §6; 2001 c.135
§32]
     294.340 [Repealed by 1963 c.576 §44]
     294.341
Governing body of certain municipal corporations to be budget committee;
exception. (1) The governing
body of each municipal corporation having a population exceeding 200,000 and
that is located in a county having a tax supervising and conservation
commission shall be the budget committee for the municipal corporation unless
the governing body of the municipal corporation elects by resolution to create
a budget committee as provided in ORS 294.336.
     (2) The governing body of a city with a
population of more than 400,000 is the budget committee of an urban renewal
agency created by the city under ORS 457.035. [1963 c.576 §7; 1997 c.308 §7;
2005 c.417 §1; 2007 c.670 §1]
     294.345 [Amended by 1953 c.715 §2; 1955 c.250 §1;
1957 c.673 §3; repealed by 1963 c.576 §44]
     294.347 [1953 c.715 §3; repealed by 1963 c.576 §44]
     294.348 [1957 c.673 §2; repealed by 1963 c.576 §44]
     294.350 [Amended by 1953 c.715 §2; 1957 c.673 §4;
repealed by 1963 c.576 §44]
     294.351 [1963 c.576 §8; 1965 c.451 §3; 1971 c.516 §1;
1979 c.310 §3; repealed by 1979 c.686 §2 (294.352 enacted in lieu of 294.351)]
     294.352
Estimates of expenditures required; form and contents. (1) Each municipal corporation shall prepare
estimates of expenditures for the ensuing year or ensuing budget period.
     (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 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 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. 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 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 and the amount of their combined salaries.
     (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) There may be included in each fund 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. [1979 c.686 §3 (enacted in lieu of
294.351); 2001 c.135 §6]
     294.355 [Repealed by 1963 c.576 §44]
     294.356
Preparation of estimates by school, education service and community college
districts and by municipal corporations operating public utility or hospital. (1) Each school district, each education
service district and each community college district shall prepare its
estimates of expenditures required by ORS 294.352 in accordance with the
classification of revenue and expenditure accounts prescribed by rules of the
State Board of Education with the approval of the Department of Revenue. The
Department of Revenue shall be responsible for determining compliance.
     (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), each
municipal corporation which operates a public utility or hospital shall prepare
its estimates for such operations in accordance with the generally accepted system
of accounts for such operation or in accordance with the general system of
accounts contained in ORS 294.311 to 294.520. [1963 c.576 §§8a,9; 1971 c.513 §56;
1979 c.686 §4; 1993 c.112 §1]
     294.360 [Amended by 1957 c.673 §5; 1963 c.576 §22;
renumbered 294.416]
     294.361
Contents of estimate of budget resources. (1) Each municipal corporation shall estimate in detail its budget
resources for the ensuing year or ensuing budget period by funds and sources.
     (2) Budget resources include but are not
limited to:
     (a) The balance of cash, cash equivalents
and investments (in the case of a municipal corporation on the cash basis) or
the net working capital (in the case of a municipal corporation on the accrual
or modified accrual basis of accounting) that will remain in each fund on the
last day of the current year or current budget period;
     (b) Taxes;
     (c) Fees;
     (d) Licenses;
     (e) Fines;
     (f) Interest on deposits or on securities
of any kind;
     (g) Endowments;
     (h) Annuities;
     (i) Penalties;
     (j) Sales of property or other assets or
products of any kind;
     (k) Delinquent taxes;
     (L) Judgments;
     (m) Damages;
     (n) Rent;
     (o) Premiums on sales of bonds;
     (p) Reimbursement for services, road or
other work performed for others;
     (q) Transfer or reverter of unused balances
of any kind;
     (r) Reimbursement for services provided
other funds;
     (s) Rebates;
     (t) Refunds of moneys heretofore paid on
any account;
     (u) Apportionment, grant, contribution,
payment or allocation from the federal or state government or any unit of government;
     (v) Taxes for the ensuing year or ensuing
budget period;
     (w) Interfund revenue transfers; and
     (x) Revenues from any and all other
sources of whatsoever kind or character.
     (3) Budget resources do not include:
     (a) The estimate for the ensuing year or
ensuing budget period of discounts under ORS 311.505.
     (b) The estimate of uncollectible amounts
of taxes, fees or charges for the ensuing year or ensuing budget period.
     (c) Moneys accumulated under an approved
employee deferred compensation plan and interest or investment returns earned
on such moneys.
     (d) Grants, gifts, bequests or devises
transferred to a municipal corporation in trust for specific uses in the year
of transfer. However, such grants, gifts, bequests or devises shall be included
as budget resources if, by the time the budget committee approves the budget,
the amount thereof that will be received in the ensuing year or ensuing budget
period can be reasonably estimated. Such grants, gifts, bequests or devises may
be placed in a trust and agency fund, to then be appropriated from such fund or
funds. [1963 c.576 §10; subsection (4) enacted as 1965 c.604 §11; 1969 c.612 §3;
1977 c.102 §3; 1979 c.310 §4; 1997 c.308 §8; 1999 c.632 §4; 1999 c.1051 §268;
2001 c.135 §7; 2005 c.22 §223]
     294.363 [1971 c.516 §10; repealed by 1979 c.686 §10]
     294.365 [Amended by 1957 c.310 §2; 1959 c.262 §2;
1961 c.299 §1; 1961 c.678 §1; 1963 c.576 §23; renumbered 294.421]
     294.366
Reserving receipts from revenue-producing property or facility; deposit in special
fund. (1) Any port or dock
commission may reserve any portion of the receipts from any revenue-producing
property or facility. Any city may reserve any portion of the receipts from any
public utility operation of such city. Any such port, dock commission or city
may reserve any proceeds from the sale of any such property for future
maintenance, alteration, repair, equipment, relocation or replacement of such
properties or facilities of the general nature and type from which the proceeds
or receipts were received or for insurance funds or retirement pension funds,
as the governing body may deem necessary or appropriate. However, if money is
received from the sale of property that has been purchased with the proceeds
from the sale of bonds or utility certificates, the governing body shall first
apply the receipts from the sale of such property to the payment of any
applicable outstanding bonded indebtedness before allocation of any portion of
the receipts to a reserve fund.
     (2) Moneys reserved under subsection (1)
of this section shall be placed in a special fund or funds. [1963 c.576 §12;
2005 c.22 §224]
     294.370 [Amended by 1961 c.678 §2; repealed by 1963
c.576 §44]
     294.371
Estimate of unappropriated ending fund balance for each fund. A municipal corporation may include in its
budget an estimate of unappropriated ending fund balance for each fund, for use
in the fiscal period following that for which the budget is being prepared. The
estimate authorized by this section represents cash or net working capital
which will be carried over into the year following the ensuing fiscal year or
ensuing budget period for which the budget is being prepared. It shall not in
any way reduce the cash balance or net working capital which becomes part of
the budget resources provided in ORS 294.361 (1) to (3). The unappropriated
ending fund balance authorized by this section shall become a budget resource
at the close of the ensuing fiscal year or ensuing budget period for the
succeeding year or budget period. Except as provided in ORS 294.326 (3) and
294.455, no appropriation nor expenditure shall be made in the year or budget
period for which the budget is applicable for the amount estimated pursuant to
this section. [1963 c.576 §13; 1965 c.451 §4; 1997 c.308 §9; 2001 c.135 §8]
     294.375 [Repealed by 1963 c.576 §44]
     294.376
Expenditure and resource estimate sheets; made part of budget document. (1) The sheet or sheets containing the
estimate of expenditures shall also show in parallel columns the actual
expenditures for the two fiscal years next preceding the current year or the
actual expenditures for the two budget periods preceding the current budget
period, the estimated expenditures for the current year or current budget
period and the estimated expenditures for the ensuing year or ensuing budget
period.
     (2) The sheet or sheets containing the
estimate of budget resources shall also show in parallel columns the actual
budget resources of the two fiscal years next preceding the current year or the
actual budget resources for the two budget periods preceding the current budget
period, the estimated budget resources for the current year or current budget
period and the estimated budget resources for the ensuing year or ensuing
budget period.
     (3) The estimate sheets shall be made a
part of the budget document. [1963 c.576 §14; 2001 c.135 §9]
     294.380 [Amended by 1959 c.262 §3; repealed by 1963
c.576 §44]
     294.381
Determination of estimated tax revenues. (1) Each municipal corporation that has the power to levy an ad valorem
property tax shall estimate, in the manner provided in this section, the amount
of revenues that will be received in the ensuing year or ensuing budget period
through the imposition of taxes upon the taxable property within the municipal
corporation.
     (2) Subject to the additional adjustments
required under subsection (3) of this section, the estimated ad valorem taxes
that will be received in the ensuing year or ensuing budget period shall not
exceed the following:
     (a) The amount derived by multiplying the
estimated assessed value for the ensuing year or each fiscal year of the
ensuing budget period of the taxable property within the municipal corporation,
after boundary changes have been filed in final approved form with the county
assessor and the Department of Revenue as provided in ORS 308.225, by whichever
of the following is applicable to the municipal corporation:
     (A) The municipal corporation’s permanent
rate limit on operating taxes, as defined in ORS 310.202 (7); or
     (B) The municipal corporation’s statutory
rate limit on operating taxes, as defined in ORS 310.202 (10).
     (b) If the municipal corporation is
authorized to levy a local option tax that was authorized by the electors as a
dollar amount, the dollar amount of such local option tax that is authorized to
be levied in the ensuing year or ensuing budget period.
     (c) If the municipal corporation is
authorized to levy a local option tax that was authorized by the electors as a
tax rate, the amount derived by multiplying the authorized rate of such local
option tax for the ensuing year or ensuing budget period by the estimated
assessed value for the ensuing year or each fiscal year of the ensuing budget
period of the taxable property within the municipal corporation.
     (d) The municipal corporation’s estimate
of the amount required to pay the principal and interest on bonded indebtedness
that is not subject to limitation under section 11 (11) or section 11b, Article
XI of the Oregon Constitution. The estimate may include an amount equal to the
total of any such payments that are due and payable in the fiscal period
following the fiscal period for which the budget is being prepared and before a
sufficient amount of property taxes to pay that bonded indebtedness are
collected in that fiscal period, pursuant to ORS 294.371. The estimate may also
include amounts to reimburse the municipal corporation for the payment of
principal and interest on exempt bonded indebtedness that the municipal
corporation made from other moneys because collections of taxes levied for
exempt bonded indebtedness were not sufficient to pay that exempt bonded
indebtedness.
     (e) The municipal corporation’s estimate
of the amount required to repay taxing district bond obligations or pension and
disability plan obligations described in section 11 (5), Article XI of the
Oregon Constitution.
     (3) The amounts determined under
subsection (2)(a), (b) and (c) of this section shall be reduced by an amount
equal to the estimated amount of such taxes that will not be collected as a
result of:
     (a) The discounts allowed under ORS
311.505;
     (b) The limits imposed under ORS 310.150
(3); and
     (c) The failure of taxpayers to pay such
taxes in the year for which they are levied.
     (4)(a) The estimated ad valorem taxes
determined in accordance with subsection (2)(a), (b) and (c) of this section,
prior to adjustment by subsection (3) of this section, shall be used by the
municipal corporation for purposes of complying with the requirements of ORS
310.060 (1).
     (b) The amounts determined under subsection
(2)(d) and (e) of this section shall, for purposes of complying with the
requirements of ORS 310.060 (1), be increased by an amount equal to the
estimated amount of taxes that will not be collected as a result of:
     (A) The discounts allowed under ORS
311.505;
     (B) The limits imposed under ORS 310.150
(3); or
     (C) The failure of taxpayers to pay taxes
in the year for which they are levied. [1963 c.576 §15: 1979 c.762 §1; 1991
c.459 §5; 1997 c.308 §10; 1997 c.541 §328; 1999 c.186 §7; 1999 c.632 §5; 2001
c.135 §10; 2001 c.138 §1; 2003 c.46 §1; 2005 c.443 §31; 2007 c.894 §1]
     Note: Section 3, chapter 894, Oregon Laws 2007,
provides:
     Sec.
3. The amendments to ORS
294.381 and 310.060 by sections 1 and 2 of this 2007 Act apply to tax years
beginning on or after July 1, 2007. [2007 c.894 §3]
     294.385 [Repealed by 1963 c.576 §44]
     294.386
Financial summary. Each
municipal corporation shall prepare a financial summary. The financial summary
shall include:
     (1) A summary statement by funds showing
the estimate of budget resources and the estimate of expenditures;
     (2) A classified statement of outstanding
indebtedness, but not including indebtedness that has been defeased as provided
in ORS 287A.195;
     (3) A classified statement of all
indebtedness authorized but not incurred; and
     (4) A summary statement of the estimate of
ad valorem property taxes, stated in dollars and cents and also stated as an
estimated tax rate per thousand dollars of assessed value. [1963 c.576 §16;
1979 c.686 §5; 1997 c.308 §11; 1997 c.541 §329; 2007 c.783 §119]
     294.390 [Repealed by 1963 c.576 §44]
     294.391
Budget message. A budget
message shall be prepared by or under the direction of the executive officer of
the municipal corporation or, where no executive officer exists, by or under
the direction of the presiding officer of the governing body. The budget
message shall be delivered at a meeting of the budget committee as provided in
ORS 294.401 (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; and
     (5) Explain the major changes in financial
policy. [1963 c.576 §17; 1997 c.308 §12; 2001 c.135 §11]
     294.395 [Repealed by 1963 c.576 §44]
     294.396
Time of making budget message and document. The budget message and budget document shall be prepared a sufficient
length of time in advance to allow the adoption of the budget by the close of
the current fiscal year or current budget period. [1963 c.576 §18; 2001 c.135 §12]
     294.400 [Amended by 1953 c.40 §2; 1959 c.168 §1;
repealed by 1963 c.576 §44]
     294.401
Budget committee meeting; distribution of budget message and document; copies
of document to be available.
(1) The budget committee shall hold one or more meetings for the following
purposes:
     (a) Receiving the budget message and the
budget document; and
     (b) Providing members of the public with
an opportunity to ask questions about and comment upon the budget document.
     (2) When more than one meeting of the
budget committee is held under subsection (1) of this section, the first
meeting shall be the meeting at which the budget message and the budget
document are received by the budget committee. The budget committee may provide
members of the public with an opportunity to ask questions about and comment
upon 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
provide the public with the opportunity to ask questions and make comments upon
the budget document at subsequent meetings.
     (3) The budget officer shall publish prior
notice of each meeting of the budget committee held for the purpose of
satisfying the requirements of subsection (1) of this section. The published
notice shall contain the information required under subsection (4) of this
section. However:
     (a) If more than one meeting of the budget
committee is held for the purpose of meeting the requirements of subsection (1)
of this section, the budget officer may publish a single notice containing the
required information for all of the meetings to be held for the purpose of
meeting the requirements of subsection (1) of this section; and
     (b) If the budget committee holds two or
more meetings under subsection (1)(b) of this section for the purpose of taking
questions and comments from the public, then:
     (A) Only notice of the first meeting held
for the purpose of taking questions and comments from the public need 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 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 and
it is subsequently determined that the meeting is not needed, notice of
cancellation of the meeting shall be published as provided in ORS 294.406 (2).
     (4) A notice meets the requirements of
this subsection when it states:
     (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) When notice of a meeting of the budget
committee is published 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 than 30 days prior to the meeting date and the final publication not
later than five days prior to the meeting date. When notice of a meeting of the
budget committee is published by mailing or by hand delivery, the notice
satisfies the requirements of this section if the notice is placed with the
     (6) 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, the budget officer may provide a copy of the
budget document to each member of the budget committee for the information and
use of the individual member.
     (7) 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 at the first meeting held under subsection
(1) of this section for their use and consideration.
     (8) 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 a public record of the municipal corporation.
     (9) 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. [1963
c.576 §19; 1965 c.451 §5; 1971 c.516 §2; 1989 c.504 §1; 1997 c.308 §13; 1999
c.632 §6]
     294.405 [Repealed by 1953 c.306 §18]
     294.406
Budget committee hearings; approval of budget document. (1) The budget committee shall approve the budget
document as submitted by the budget officer or the budget document as revised
and prepared by the budget committee. The budget document as approved by the
budget committee shall specify the ad valorem property tax amount or rate for
all funds.
     (2) In addition to the meetings held under
ORS 294.401 (1), the budget committee may meet from time to time at its
discretion. All meetings of the budget committee shall be open to the public.
Except for a meeting of the budget committee held under ORS 294.401 (1), prior
notice of each meeting of the budget committee shall be given at the same time
as is required for notice of meetings of the governing body of the municipal
corporation and may be given in the same manner as notice of meetings of the
governing body or by any one or more of the methods described in ORS 294.311
(34).
     (3) The budget committee may demand and
receive from any officer, employee or department of the municipal corporation
any information the committee requires for the revision and preparation of the
budget document. The budget committee may compel the attendance of any such
officer or employee at its meetings. [1963 c.576 §20; 1965 c.451 §6; 1997 c.308
§14; 1997 c.541 §336a; 1999 c.632 §7; 2001 c.104 §103; 2001 c.135 §13]
     294.410 [Repealed by 1963 c.576 §44]
     294.411
Submission of budget document to tax supervising and conservation commission in
certain cases prior to publication and approval by budget committee. (1) Each municipal corporation having a
population not exceeding 200,000, located in a county having a tax supervising
and conservation commission and not submitting its 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 the date of
the public hearing in accordance with ORS 294.430. 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
municipal corporation in the county having 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.
     (2) Before adopting the budget, the
governing body for a municipal corporation 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. [1963 c.576 §21; 1969 c.155 §1; 1991 c.459 §6; 1997 c.308 §15; 1999
c.632 §8]
     294.413
Format for notices and summaries. Format for publication of notices and summaries required by ORS
294.416 shall be prescribed by the Department of Revenue. [1971 c.516 §9; 1983
c.549 §1; 1993 c.742 §46; 1997 c.308 §16]
     294.415 [Renumbered 294.425]
     294.416
Publication of budget summary, financial summary, statement of accounting
basis, and notices of meeting and availability of budget document. 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. [Formerly 294.360; 1965 c.451 §7; 1971 c.516 §3; 1979 c.686 §6;
1997 c.308 §17; 2001 c.135 §14]
     294.418
Alternative budget publication procedure. In lieu of the publication requirements contained in ORS 294.416, a
municipal corporation may elect to publish its budget as provided in this
section.
     (1) There shall be published, as provided
in ORS 294.421, a summary of the budget as approved by the budget committee and
compared with the budget summary of the preceding year or preceding budget
period and the budget summary for the current year or current budget period. As
a minimum requirement, there shall be listed the total requirements for
personal services, materials and services, capital outlay, special payments,
debt service, transfers and operating contingencies for the budget. In
addition, there shall be published a brief narrative description of the major
activities or major programs of the municipal corporation and the prominent
changes from the current year or current budget period. Information shall be
furnished showing the personnel requirement changes for each major activity or
major program. The narrative shall state the major resources for financing each
major activity or program and the prominent changes from the current year or
current budget period, or shall state that each major activity or program is
financed from general resources of the governmental unit. The summary for the
ensuing year or ensuing budget period and for the current year or current
budget period shall show total budgeted requirements, total estimated resources
other than ad valorem property taxes and estimated ad valorem property tax
revenues, stated in dollars and cents. The summary shall also state the
municipal corporationÂ’s operating tax rate and the amount or rate of any other
ad valorem property taxes to be certified to the assessor. Tax rates shall be
expressed at a rate per thousand dollars of assessed value. The summary shall
include an analysis of ad valorem property taxes for the current and ensuing
years or budget periods that are outside of the municipal corporationÂ’s
permanent rate limit or statutory rate limit, if applicable, showing local
option taxes and ad valorem property taxes for meeting payments on bond, principal
and interest thereon and for meeting other obligations of the municipal
corporation described under section 11 (5), Article XI of the Oregon
Constitution.
     (2) There shall be published with the
summary:
     (a) 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.
     (b) A statement that the budget is
prepared in accordance with the basis of accounting used in the preceding year
or budget period unless a change in the basis of accounting is anticipated; and
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.
     (c) 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. [1971 c.516 §5; 1979 c.686 §7; 1997 c.308 §18; 1997 c.541 §330;
2001 c.135 §15]
     294.420 [Renumbered 294.555]
     294.421
Manner of publication; alternative requirements in certain cases. (1) Subject to subsections (3) to (6) of
this section, the summary of the budget document approved by the budget
committee shall be published at least once prior to the time appointed for the
proposed meeting of the governing body in accordance with ORS 294.430.
     (2) Subject to subsections (3) to (6) of
this section, the notice of the time and place at which the budget document as
approved by the budget committee may be discussed shall be published by one or
more of the methods described in ORS 294.311 (34) not less than five days and
not more than 30 days prior to the date of the meeting required by ORS 294.430.
     (3) If no newspaper is published in the
municipal corporation, a municipal corporation whose aggregate of estimated
budget expenditures for the ensuing fiscal year does not exceed $50,000 or for
the ensuing budget period does not exceed $100,000 may, in lieu of the
publication and notice provided in subsections (1) and (2) of this section and
in lieu of publication by one or more of the methods described in ORS 294.311
(34), post the summaries and notices provided by ORS 294.416 or 294.418 in
three conspicuous places in the municipal corporation for at least 20 days
prior to the date of the meeting provided in ORS 294.430 and publish the notice
provided by subsection (4) of this section.
     (4) If notice is given as provided in
subsection (3) of this section, the municipal corporation shall publish, by one
or more of the methods described in ORS 294.311 (34), a notice of the
following:
     (a) The date, time and place of the
meeting provided by ORS 294.430;
     (b) The place where the complete budget
document is available for inspection by the general public during regular
office hours;
     (c) Total budget requirements and taxes
proposed to be levied;
     (d) Changes in the amount or rate of
proposed ad valorem property taxes; and
     (e) The place where copies of the complete
budget or parts thereof may be obtained.
     (5) The notice provided in subsection (4)
of this section shall be published not less than five days and not more than 30
days prior to the date of the meeting provided in ORS 294.430.
     (6) A municipal corporation having a
population exceeding 200,000 inhabitants, or a municipal corporation with
200,000 or fewer inhabitants that requests the tax supervising and conservation
commission to conduct the public hearing outlined in ORS 294.430, shall, in
lieu of the publication and notice prescribed in subsection (1) of this
section, submit its budget document, as approved by the budget committee, to
the tax supervising and conservation commission within its county, if there is
such a commission, at least 20 days prior to the legal date of the public
hearing before the tax supervising and conservation commission on the budget,
and the budget document shall thereupon be open to inspection by any taxpayer
or citizen. The municipal corporation shall also publish a notice as provided
in subsections (4) and (5) of this section. [Formerly 294.365; 1965 c.451 §8;
1967 c.525 §1; 1969 c.155 §2; 1971 c.516 §6; 1991 c.459 §7; 1997 c.308 §19;
1997 c.541 §331; 1999 c.632 §9; 2001 c.104 §104; 2001 c.135 §16]
     294.425
Sufficiency of publication of budget documents; notice to governing body and
assessor of publication error.
(1) When a notice, budget summary or other document is required to be published
under any provision of ORS 294.305 to 294.565, publication of the document
shall be considered sufficient for all purposes if a good faith effort is made
by the budget officer of the municipal corporation to publish by any one or
more of the methods described in ORS 294.311 (34), notwithstanding any defect
in the publication, including but not limited to:
     (a) Typographical or scriveners’ errors in
the published material;
     (b) Failure of the published materials to
be mailed or hand delivered to each street address within the jurisdictional
boundaries of the municipal corporation;
     (c) Arithmetic errors in computing
numerical information, including tax levies or tax rates;
     (d) Calculations of ad valorem property
taxes not made in accordance with the applicable requirements of law; or
     (e) Failure to publish within the time
periods required by law.
     (2) At the first regularly scheduled
meeting of the governing body of the municipal corporation that is held
following the discovery of any publication error described in subsection
(1)(a), (c) or (d) of this section, the budget officer shall advise the
governing body in writing of the error and shall correct the error by testimony
before the governing body at the meeting. If the error relates to the
calculation of ad valorem property taxes, the budget officer shall immediately
notify the county assessor of the error in writing, identifying the correct ad
valorem property tax. [Formerly 294.415; 1997 c.308 §20; 1997 c.541 §336b; 1999
c.632 §10; 2001 c.104 §105; 2001 c.135 §17]
     294.430
Hearing by governing body on budget document as approved by budget committee;
alternative procedure in certain cases. (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 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 budget
document.
     (2) Each 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. The governing body of
such municipal corporation or its representatives shall meet with the taxpayers
thereof at a public hearing to be called and conducted by the tax supervising
and conservation commission.
     (3) Any municipal corporation having a
population not exceeding 200,000 and 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 budget document to the tax
supervising and conservation commission of the county for a public hearing. The
governing body of such municipal corporation or its representatives shall meet
with the taxpayers thereof 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. [1963 c.576 §24; 1969 c.155 §3; 1991 c.459 §8; 1997
c.308 §21]
     294.435
Governing body to adopt budget, make appropriations, declare and categorize
property tax amount or rate; greater tax, encumbrance or expenditure limited;
exception. (1) After the
public hearing provided for in ORS 294.430 (1) has been held, the governing
body shall enact the proper ordinances or resolutions 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 ORS 310.060.
Consideration shall be given to matters discussed at the public hearing. The
budget estimates and proposed ad valorem property tax amount or rate as shown
in the budget document may be amended prior to adoption and may also be amended
by the governing body following adoption if such amendments are adopted prior
to the commencement of the fiscal year or budget period to which the budget
relates. However, 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 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 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) After the public hearing provided for
in ORS 294.430 (2) or (3) has been held and the certification of the tax
supervising and conservation commission received, if such certification is
required, the governing body shall enact the proper ordinances or resolutions
to adopt the budget, to make the appropriations, to determine, make and declare
the ad valorem property tax amount or rate for either 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 ORS
310.060. Consideration shall be given any orders, recommendations or objections
made by the tax supervising and conservation commission in accordance with law.
The action taken on each order, recommendation or objection after such
consideration by the governing body, with the reasons for such action, shall be
included in the ordinance or resolution adopting the budget. 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. The budget estimates,
appropriations and ad valorem property tax amount or rate as shown in the
budget document may be amended prior to adoption and may also be amended by the
governing body following adoption if such amendments are adopted prior to the
commencement of the fiscal year or budget period to which the budget relates.
However, the amount of estimated expenditures for each fund may not be
increased by more than $5,000 or 10 percent of the estimated expenditures,
whichever is greater, 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 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) The appropriations required by
subsections (1) and (2) of this section shall, as a minimum, contain one amount
for each organizational unit or program of each fund. In addition, separate
amounts shall be appropriated in each fund 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. If
the governing body so desires, it may appropriate separate amounts for
activities within an organizational unit or program. For those municipal
corporations where the term “organizational unit” has no application, the
appropriations shall contain separate amounts for personal services, materials
and services, capital outlay, debt service, special payments, interfund revenue
transfers and operating contingency for each fund.
     (4) Thereafter no greater expenditure, or
encumbrance if encumbrance accounting is used, of public money shall be made
for any specific purpose other than the amount appropriated therefor except as
provided in ORS 294.326, 294.440, 294.450 and 294.480.
     (5) The determination of the amount or
rate of ad valorem property taxes to be certified shall be entered in the
proper records of the governing body. Except as provided in ORS 294.437, no
greater tax than that so entered upon the record shall be certified by the
municipal corporation proposing the tax 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) The governing body 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. [1963 c.576 §25; 1965 c.451 §9; 1969 c.682 §1; 1971
c.516 §7; 1977 c.305 §2; 1979 c.310 §5; 1979 c.686 §8a; 1993 c.270 §3; 1997
c.308 §22; 1997 c.541 §332; 1999 c.632 §11; 2001 c.135 §18; 2001 c.753 §5; 2003
c.14 §145]
     294.437
Local option tax approved after adoption of budget; supplemental budget. (1) Following the adoption of a budget under
ORS 294.435 that does not include revenue from a proposed local option tax, if
a municipal corporation places a local option tax measure on the ballot for an
election held in September and the electors of the municipal corporation
approve the measure, in order to impose the local option tax during the current
fiscal year or current budget period the governing body of the municipal corporation
must:
     (a) Adopt an ordinance or resolution to
determine, make and declare the local option tax and to categorize the local
option tax amount or rate as provided in ORS 310.060;
     (b) Receive from the assessor of the
county in which the municipal corporation is located (or, if the municipal
corporation is located in more than one county, from the assessor of each
county in which the municipal corporation is located) written approval to file
a supplemental notice of property tax as described in ORS 310.060 (9); and
     (c) File with the assessor of the county
in which the municipal corporation is located (or, if the municipal corporation
is located in more than one county, with the assessor of each county in which
the municipal corporation is located) two copies of the ordinance or resolution
described in paragraph (a) of this subsection, two copies of the supplemental
notice of property tax required under ORS 310.060 and two copies of the
approved local option tax measure.
     (2) Following the adoption of a budget
under ORS 294.435 that does not include revenue from a proposed local option
tax or taxes to pay principal and interest on exempt bonded indebtedness, if a
municipal corporation places a local option tax measure or a general obligation
bond measure on the ballot for an election, other than an election held in
September, next following adoption of the budget and the electors of the
municipal corporation approve the measure, in order to impose the tax during
the second fiscal year of a biennial budget period, the governing body of the
municipal corporation must:
     (a) Adopt an ordinance or resolution to
determine, make and declare the tax and to categorize the tax amount or rate as
provided in ORS 310.060; and
     (b) Include with the certification required
under ORS 310.060 for the second fiscal year of the biennial budget period, two
copies of the ordinance or resolution described in paragraph (a) of this
subsection and two copies of the approved local option tax measure or general
obligation bond measure.
     (3) Funds raised by a local option tax
described in this section may not be expended by the municipal corporation
unless the municipal corporation has adopted a supplemental budget in
accordance with ORS 294.480. Funds may be expended only in accordance with the
supplemental budget so adopted.
     (4) As soon as received, the county
assessor shall forward one copy of each of the documents described in
subsection (1)(c) of this section to the Department of Revenue. [2001 c.753 §4;
2007 c.350 §1]
     Note: 294.437 was added to and made a part of
294.305 to 294.565 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     294.440
School or community college district expending federal or state funds in
emergency. 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
     (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. [1963 c.576 §26; 1971 c.513 §58; 1983
c.740 §84]
     294.443
Certain interest to be included in budget; method. In the exercise of the authority granted by
ORS 287A.180, 328.565 and 341.715, specific provision for interest must be
contained in duly adopted budgets. However, reporting of anticipated loan
proceeds and related principal repayments within a particular fiscal year or
budget period may be accomplished in narrative form or by footnoted schedules
to the duly adopted budget and need not be included as a budgetary resource or
requirement. Such narrative or footnoted disclosure must indicate that
principal repayments are a liability of the applicable fund from which they are
made. [1985 c.356 §3; 1993 c.97 §16; 2001 c.135 §19; 2007 c.783 §120]
     294.445
Basis of accounting used by municipal corporation; change of basis. (1) A municipal corporation shall record its
revenues and expenditures, on a fund by fund basis, using either the cash
basis, the modified accrual basis or the accrual basis of accounting.
     (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 basis of accounting is adopted, it
shall be followed in the year or period for which the budget was prepared and
each succeeding year or period thereafter until changed in a subsequent budget.
Such change must be published as provided in ORS 294.416 (3). [1963 c.576 §28;
1977 c.305 §3; 1997 c.308 §23; 2001 c.135 §20]
     294.447
Inclusions in accrued revenues of school districts, education service
districts, community college districts and community college service districts
using accrual basis of accounting; State School Fund grant calculations. (1) As used in this section “extended ADMw”
means:
     (a) For a school district the district
extended ADMw as calculated under ORS 327.013.
     (b) For an education service district the
sum of the extended ADMw of the component school districts of the education
service district.
     (2) Notwithstanding ORS 294.445, a school
district or education service district that uses the accrual basis method of
accounting may include as accrued revenues in the budget and financial
statement of the school district or education service district, for any fiscal
year, an amount from the next fiscal year that is to be received in the next
fiscal year. The amount accrued under this section may not be greater than the
amount calculated under subsection (3)(b) or (c) of this section multiplied by
the extended ADMw of the school district or education service district.
     (3)(a) For each fiscal year, the
Department of Education shall calculate the amount available in the State
School Fund for grants and distributions to school districts and the amount
available for grants and distributions to education service districts under ORS
327.008, 327.013 and 327.019 based on the appropriations and allocations made
to the State School Fund for that fiscal year by the Legislative Assembly in
regular session. The department may not include in the amount calculated to be
available for school districts under this paragraph the amounts received by the
Youth Corrections Education Program and the Juvenile Detention Education
Program under ORS 327.026 from the State School Fund.
     (b) The department shall calculate for
school districts an amount equal to (the amount calculated under paragraph (a)
of this subsection for school districts ¸ 12) ¸the total statewide extended ADMw of all
school districts.
     (c) The department shall calculate for
education service districts an amount equal to (the amount calculated under
paragraph (a) of this subsection for education service districts ¸ 12) ¸the total statewide extended ADMw of all
education service districts.
     (d) The department may adjust the
calculations under this subsection based on current data for the factors used
to calculate the State School Fund distribution to school districts and
education service districts under ORS 327.008, 327.013 and 327.019.
     (e) Notwithstanding paragraph (d) of this
subsection, the department may not adjust the calculation under paragraph (a)
of this subsection based on changes made to the appropriations or allocations
to the State School Fund by the Legislative Assembly in special session or by
rule of the Oregon Department of Administrative Services relating to allotting
funds.
     (4) Notwithstanding ORS 294.445, a
community college district or community college service district that uses the
accrual basis method of accounting may include as accrued revenues in the
budget and financial statement of the community college district or community
college service district, for any fiscal year, an amount from the next fiscal
year that is to be received in the next fiscal year. The amount accrued under
this section may not be greater than 25 percent of the amount the community
college district or community college service district received as a Community
College Support Fund grant for the fiscal year for which the revenues are to be
accrued. [2002 s.s.4 c.1 §5; 2003 c.96 §§1,2]
     Note: 294.447 was added to and made a part of
294.305 to 294.565 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     294.450
Transfers of appropriations within fund or from one fund to another;
appropriation of pass-through revenues. Subject to the provisions contained in the charter of any city or
county or in any law relating to municipal corporations:
     (1) Except as provided in subsection (2)
of this section, transfers of appropriations may be made within a given fund
when authorized by official resolution or ordinance of the governing body. The
resolution or ordinance shall state the need for the transfer, the purpose for the
authorized expenditure and the amount of appropriation transferred.
     (2) Transfers of general operating
contingency appropriations which in aggregate during a fiscal year or budget
period exceed 15 percent of the total appropriations of the fund may be made
only after adoption of a supplemental budget prepared for that purpose. All
other transfers of general operating contingencies are subject to subsection
(1) of this section.
     (3) Transfers of appropriations or of
appropriations and a like amount of budget resources may be made from the
general fund of the municipal corporation to any other fund when authorized by
an official resolution or ordinance of the governing body. The resolution or
ordinance shall state the need for the transfer, the purpose for the authorized
expenditures embodied in the appropriation and the amount of appropriation
transferred.
     (4) It shall be unlawful to transfer
appropriations from any special revenue fund to the general fund or any other
special revenue fund.
     (5) The transfers referred to in this
section apply to transfers which occur after the budget has been approved and
which are made during the fiscal year or budget period for which the
appropriations are made. Nothing in this section shall prohibit or regulate
lawful transfers which have been budgeted in accordance with the local budget
law.
     (6) 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
corporationÂ’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. [1963 c.576 §27; 1975 c.569 §1; 1979 c.310 §6; 1997 c.308 §24; 1999
c.632 §12; 2001 c.135 §21]
     294.455
Authorization to expend or borrow moneys after destruction of property or
natural disaster; authorization by chief executive officer to protect public
health or safety. 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 if it is
not practical to convene a meeting of the governing body of the municipal
corporation, 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 public health or safety. [1963
c.576 §27a; 1965 c.451 §10; 1991 c.573 §2; 1997 c.308 §25; 2001 c.135 §22]
     294.460
Loans from one fund to another; commingling cash balances of funds. (1) It shall be lawful to loan money from
any fund to any other fund of the municipal corporation whenever the loan is
authorized by official resolution or ordinance of the governing body. The loans
shall be made in compliance with the applicable requirements and limitations of
this section. Loans made under this section shall not be made from:
     (a) Debt service reserve funds created to
provide additional security for outstanding bonds or other borrowing
obligations that the municipal corporation has covenanted with the holders of
such bonds or other borrowing obligations to maintain at certain specified
levels. However, nothing in this paragraph is intended or shall be construed to
prohibit loans from any such debt service reserve fund to the extent that the
aggregate outstanding amount of the loans does not exceed the amount by which the
amount in such debt service reserve fund exceeds the amount the municipal
corporation has covenanted to maintain in the reserve fund with the holders of
the related bonds or other borrowing obligations;
     (b) Debt service funds created to account
for moneys needed to make annual debt service payments on outstanding bonds or
other borrowing obligations; or
     (c) Moneys credited to any fund when,
under applicable constitutional provisions, the moneys are restricted to
specific uses unless the purpose for which the loan is to be made is a use
allowed under such constitutional provisions.
     (2) The resolution or ordinance
authorizing any interfund loan permitted under this section shall:
     (a) State the fund from which the loan is
to be made, the fund to which the loan is to be made, the purpose for which the
loan is to be made and the principal amount of the loan.
     (b) If the interfund loan is a capital
loan, set forth a schedule under which the principal amount of the loan,
together with interest thereon at the rate provided for in paragraph (c)(B) of
this subsection, is to be budgeted and repaid to the lending fund. The schedule
shall provide for the repayment in full of the loan over a term not to exceed
five years from the date the loan is made.
     (c) If the interfund loan is a capital
loan, provide that the loan shall bear interest at an annual rate equal to:
     (A) The rate of return on moneys invested
in the local government investment pool under ORS 294.805 to 294.895, as
reported under ORS 294.875, immediately prior to the adoption of the ordinance
or resolution authorizing the loan; or
     (B) Such other rate as the governing body
may determine.
     (d) If the interfund loan is an operating
loan, provide that the money loaned shall be budgeted and repaid to the fund
from which the money was borrowed by the end of the ensuing year or ensuing
budget period.
     (3) The payment of any operating loans not
repaid in the year or budget period in which the operating loan was made shall
be budgeted as a requirement in the ensuing year or ensuing budget period.
     (4) It shall be lawful to commingle cash
balances of funds so long as all such fund moneys are segregated in the budget
and accounting records.
     (5) As used in this section:
     (a) “Capital loan” means any interfund
loan, or portion thereof, made for the purpose of financing the design,
acquisition, construction, installation or improvement of real or personal
property and not for the purpose of paying operating expenses.
     (b) “Operating loan” means any interfund
loan, or portion thereof, that is not a capital loan, including any interfund
loan, or portion thereof, made for the purpose of paying operating expenses. [1963
c.576 §§27b,27c; 1979 c.310 §7; 1999 c.632 §13; 2001 c.135 §23]
     294.465 [1963 c.576 §29; repealed by 1999 c.632 §30]
     294.470
Internal service funds. (1)
A municipal corporation may establish by ordinance or resolution one or more
internal service funds. The ordinance or resolution creating the fund shall set
forth in detail the following:
     (a) The appropriation or appropriations to
be charged in order to provide the initial money for financing the fund;
     (b) The object or purpose of the fund;
     (c) The methods for controlling of
expenditures and encumbering of such funds; and
     (d) The sources from which the fund shall
be replenished.
     (2) No person shall expend or encumber or
authorize expenditure or encumbrance from funds created in accordance with
subsection (1) of this section in excess of the balance of that fund, or for a
purpose for which there is no appropriation or source of reimbursement
authorized at that time.
     (3) The anticipated expenditure for the
ensuing year or ensuing budget period from an internal service fund created in
accordance with subsection (1) of this section shall be budgeted as any other
fund in accordance with ORS 294.305 to 294.565, appropriations shall be made
for each internal service fund in accordance with ORS 294.435 and expenditures
from the internal service fund shall be regulated thereby.
     (4) Notwithstanding the limitations in ORS
294.305 to 294.565 applicable to increasing the appropriations of funds during
the current year or current budget period, the governing body may increase
appropriations of the internal service funds by ordinance or resolution.
     (5) The charges for services shall be
computed to cover all costs for such services and the charges shall be
periodically revised to eliminate any element of profit or loss. [1963 c.576 §30;
1975 c.319 §1; 1997 c.308 §26; 2001 c.135 §24]
     294.475
Elimination of unnecessary fund; disposition of balance. Subject to the provisions contained in the
charter of any city or county or in any law relating to municipal corporations,
when the necessity for maintaining any fund of the municipal corporation has
ceased to exist and a balance remains in the fund, the governing body shall so
declare by ordinance or other order and upon such declaration such balance
shall forthwith be transferred to the general fund of the municipal corporation
unless other provisions have been made in the original creation of the fund. [1963
c.576 §31]
     294.480
Supplemental budget in certain cases; no increase in property taxes permitted. (1) Notwithstanding requirements as to
estimates of and limitation on expenditures, the governing body of any
municipal corporation may make a supplemental budget for the fiscal year or
budget period for which the regular budget has been prepared under one or more
of the following circumstances:
     (a) An occurrence or condition which had
not been ascertained at the time of the preparation of a budget for the current
year or current budget period which requires a change in financial planning.
     (b) A pressing necessity which was not
foreseen at the time of the preparation of the budget for the current year or
current budget period which requires prompt action.
     (c) Funds were made available by another
unit of federal, state or local government and the availability of such funds
could not have been ascertained at the time of the preparation of the budget
for the current year or current budget period.
     (d) A request for services or facilities,
the cost of which shall be supplied by a private individual, corporation or
company or by another governmental unit and the amount of the request could not
have been accurately ascertained at the time of the preparation of the budget
for the current year or current budget period.
     (e) Proceeds from the involuntary
destruction, involuntary conversion, or sale of property has necessitated the
immediate purchase, construction or acquisition of different facilities in
order to carry on the governmental operation.
     (f) Ad valorem property taxes are received
during the fiscal year or budget period in an amount sufficiently greater than
the amount estimated to be collected that the difference will significantly
affect the level of government operations to be funded by those taxes as
provided in the budget for the current year or current budget period.
     (g) A local option tax described in ORS
294.437 is certified for extension on the assessment and tax roll under ORS
310.060 for the fiscal year or budget period in which the local option tax
measure is approved by voters.
     (2) A supplemental budget may not extend
beyond the end of the fiscal year or budget period during which it is
submitted.
     (3) When the estimated expenditures
contained in a supplemental budget for a fiscal year or budget period differ by
less than 10 percent of any one of the individual funds contained in the
regular budget for that fiscal year or budget period that is being changed in
the supplemental budget, the governing body of the municipal corporation may
adopt the supplemental budget at a regular meeting of the governing body.
Notice of such regular meeting, including sufficient detail on revenues and
expenditures, shall be published by one or more of the methods permitted under
ORS 294.311 (34) not less than five days prior to the meeting. Following such
meeting, the governing body shall make additional appropriations and may
thereafter make additional expenditures as authorized by such appropriations.
     (4) When the estimated expenditures
contained in a supplemental budget for a fiscal year or budget period differ by
10 percent or more of any one of the individual funds contained in the regular
budget for that fiscal year or budget period that is being changed in the
supplemental budget, the supplemental budget, or a summary thereof, shall be
published, or, in counties having a tax supervising and conservation
commission, shall be submitted to the tax supervising and conservation commission
within the county. The governing body, or, where applicable, the tax
supervising and conservation commission shall then hold a public hearing on the
supplemental budget. Publication of the budget and notice of the hearing shall
be given in the manner provided in ORS 294.421. Following such hearing, the
governing body shall make additional appropriations and may thereafter make
additional expenditures as authorized by such appropriations.
     (5) Except as provided in ORS 294.437, the
making of a supplemental budget does not authorize the governing body to
increase the municipal corporationÂ’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. [1963 c.576 §32; 1979 c.689 §1; 1991 c.459 §9; 1991 c.573 §1; 1993
c.270 §5; 1997 c.308 §27; 1997 c.541 §333; 1999 c.632 §14; 2001 c.104 §106;
2001 c.135 §25; 2001 c.753 §6]
     294.483
Supplemental budget not required in certain cases. A municipal corporation is not required to
adopt a supplemental budget to:
     (1) Expend during the current year or
current budget period proceeds of the sale of the following bonds or other
obligations:
     (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 for the current year or current budget
period.
     (b) Bonds or other obligations that were
approved by the electors during the current year or current budget period.
     (c) Bonds or other obligations issued
during the current year or current budget period to refund previously issued
bonds or obligations.
     (2) Expend during the current year or
current budget period other funds to pay the principal and interest coming due
on bonds or other obligations listed in subsection (1) of this section.
     (3) Expend assessments or other revenues
to redeem bonds or other obligations 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. [1993 c.97 §4; 1995 c.333 §9;
1997 c.308 §28; 2001 c.135 §26; 2003 c.195 §26; 2005 c.443 §28; 2007 c.783 §121]
     294.485
Tax certification contrary to law voidable by
     (2) The county assessor, county court,
board of county commissioners, the Department of Revenue, tax supervising and
conservation commission or 10 or more interested taxpayers may appeal to the
regular division of the Oregon Tax Court and such appeal shall be perfected in
the following manner only:
     (a) Within 30 days after the certification
of ad valorem property taxes is filed with the county assessor under ORS
310.060, the appealing party shall file a complaint with the clerk of the tax
court at its principal office in
     (A) One or more of the taxpayers withdraws
from the proceedings, and five or more of the taxpayers do not withdraw, the
court shall nevertheless retain jurisdiction to hear the matter; or
     (B) One or more of the taxpayers withdraws
from the proceedings, and fewer than five of the taxpayers remain parties and
do not withdraw, the court shall not retain jurisdiction to hear the matter but
shall dismiss the case with prejudice.
     (b) The complaint shall state the facts
and the grounds upon which the plaintiff contends the tax should be voided or
modified. The case shall proceed thereafter in the manner provided in ORS
305.405 to 305.494.
     (3) If the tax court finds that the budget
and the tax certification in question were not prepared and made in substantial
compliance with ORS 294.305 to 294.565 and any other applicable law relating to
the making of ad valorem property taxes, it shall declare void or modify any
such tax and shall direct that such action be taken, all as in the
circumstances it shall deem appropriate. [1963 c.576 §33; 1967 c.78 §12; 1977
c.250 §1; 1993 c.270 §6; 1995 c.79 §103; 1995 c.650 §101; 1997 c.541 §334; 1999
c.340 §7; 1999 c.632 §15; 2005 c.225 §1]
     294.490
Department of Revenue not to interfere with fiscal policy of municipal
corporation. The departmentÂ’s
authority pursuant to ORS 294.495 to 294.510 shall be limited to obtaining
compliance with ORS 294.305 to 294.565 and shall not interfere in any way with
the fiscal policy of a municipal corporation as established by its governing
body or budget committee. [1963 c.576 §34c]
     294.495
Department of Revenue to construe Local Budget Law; rules. Notwithstanding ORS 294.695, the Department
of Revenue shall:
     (1) Construe ORS 294.305 to 294.565 and
any other law relating to the making of tax levies when requested by any
interested person or by any officer acting under such laws and shall instruct
such officers as to their duties under such laws. Such officers shall submit to
the department all questions arising with them which affect the construction of
laws of this state relating to local budgetary procedures.
     (2) Make such rules and regulations and
prescribe such forms as it considers proper to effectually carry out the
purposes of ORS 294.305 to 294.565 or any other law relating to the making of
tax levies. [1963 c.576 §34]
     294.500
Declaratory ruling by Department of Revenue as to its rules under Local Budget
Law. The Department of
Revenue may, on petition by 10 interested taxpayers or municipal corporation,
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. The department shall prescribe by rule the form, content and
procedure for submission, consideration and disposition of such petitions. Full
opportunity for hearing shall be afforded to interested parties. A declaratory
ruling shall bind the department and all parties to the proceedings on the
state of facts alleged, unless it is altered or set aside by a court. A ruling
shall be subject to review in the Oregon Tax Court in the manner provided by
ORS 294.515 and shall be subject to the same limitations as appeals provided in
ORS 294.515. [1963 c.576 §34d]
     294.505
Division of Audits to issue notification of budgetary irregularities;
Department of Revenue to advise municipal corporation of correct procedures. (1) The Division of Audits created by ORS
297.020 shall notify the municipal corporation and Department of Revenue of any
irregularities in the budget procedure of the municipal corporation which is
brought to its attention in the audits prepared by the division or brought to
its attention in audits which are required to be filed with the division.
     (2) If the Department of Revenue finds
from the information submitted by the Division of Audits pursuant to subsection
(1) of this section that ORS 294.305 to 294.565 have not been followed, the
Department of Revenue shall order the municipal corporation to correct its
procedures in the preparation of its subsequent budgets. The order shall set
forth the irregularities and the steps necessary to prevent such irregularities
from happening in the future. Such order shall be a public record. [1963 c.576 §34a]
     294.510
Order for revision of budgetary procedures; enforcement. (1) The Department of Revenue may order a
municipal corporation to revise its budget procedures to conform with ORS
294.305 to 294.565 when irregularities in the procedures of the municipal corporation
are called to its attention.
     (2) The Department of Revenue may require
the municipal corporation in its order to file for inspection a copy of the
budget document at any stage in the procedure of the budget preparation.
     (3) If the municipal corporation or
officer or employee thereof neglects or refuses to comply with the department
order, the department may apply to the judge of the Oregon Tax Court for an
order returnable within five days from the date thereof, to compel such
municipal corporation, public officer or employee to comply with such order or
to show cause why the order should not be complied with.
     (4) Any order issued by the judge pursuant
to subsection (3) of this section may be appealed from as provided by ORS
305.445, except that the appeal shall be filed within 10 days of the entering
of the order. The Supreme Court shall hear and determine the appeal
expeditiously, as may be appropriate for the timely and orderly completion of
the budgetary process of the municipal corporation and the extension of its
levy upon the assessment and tax roll.
     (5) The remedy provided in this section is
cumulative and shall not preclude the department from exercising any power or
right otherwise provided by law. [1963 c.576 §34b; 1977 c.221 §1]
     294.515
Appeal by municipal corporation from Department of Revenue order. Any municipal corporation aggrieved by and
directly affected by an order of the Department of Revenue relating to the
preparation of budgets or the extension of any tax levy may appeal to the
Oregon Tax Court in the manner provided by ORS 305.404 to 305.560. [1963 c.576 §33a;
1979 c.689 §2; 1995 c.650 §102]
     294.520
Priority of appeals under Local Budget Law. The appeal filed with the Oregon Tax Court pursuant to ORS 294.485,
294.500 and 294.515 shall have priority over all other cases pending before the
Oregon Tax Court and shall be heard and decided as soon after coming to issue
as is reasonably possible. [1963 c.576 §33b]
     294.525
Reserve fund established without vote; review of need for reserve fund;
unexpended balances; application to system development charges. (1) Any municipal corporation, by ordinance
or resolution of its governing body, may establish one or more reserve funds to
hold moneys to be accumulated and expended for the purposes specified in ORS
280.050, without submitting the question of establishing the reserve fund to a
vote of the electors. The municipal corporation may cause to be credited to any
reserve fund all or any portion of the revenues derived from taxes levied under
ORS 280.060 and any other taxes, charges or revenues as the governing body may
determine. The municipal corporation may also limit the crediting of such
taxes, charges or revenues to a reserve fund to a specific period of time
designated by the governing body.
     (2) Not less frequently than every 10th
anniversary of the date upon which a reserve fund is established under
subsection (1) of this section, the governing body of the municipal corporation
shall review the reserve fund and determine whether the fund will be continued
or abolished. When the governing body determines, by resolution, that it is no
longer necessary to maintain such a reserve fund:
     (a) Commencing with the next succeeding
fiscal year, the political subdivision shall discontinue the levy of any taxes
under ORS 280.060 that would otherwise be required to be credited to such fund;
and
     (b) There shall be transferred to the
general fund or any other fund of the political subdivision that the governing
body determines is appropriate:
     (A) Any unexpended balance in the fund to
be abolished that is not required to be held for subsequent expenditure for the
purposes for which the fund was established; and
     (B) Any subsequent receipts from tax
levies that are otherwise required to be credited to such fund, together with
any penalties and interest thereon.
     (3) This section does not apply to system
development charges imposed under ORS 223.297 to 223.314, and no system
development charges shall be credited to any reserve fund established under
this section. [1997 c.308 §2; 1999 c.632 §16]
     294.555
Filing copy of budget and certain documents with county assessor and Department
of Revenue. (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 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, 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 the documents listed in subsection
(2) of this section to the Department of Revenue.
     (5) Each civil subdivision and municipal
corporation that is subject to the Local Budget Law shall retain a true copy of
its budget for, if an annual budget is prepared, two years following the end of
the fiscal year or, if a biennial budget is prepared, two budget periods
following the budget period for which the biennial budget was prepared. During
this period, the civil subdivision or municipal corporation shall send a copy
of the budget to the county assessor, Department of Revenue or the Division of
Audits if requested to do so by one of those entities. [Formerly 294.420; 1965
c.451 §11; 1973 c.333 §1; 1977 c.884 §2; 1985 c.319 §1; 1995 c.79 §104; 1997
c.154 §4; 1997 c.541 §336; 2001 c.135 §27]
     294.565
Failure to file copy of required budget, reports or other documents; effect. If any city shall fail to file its documents
or reports required by ORS 294.555 or 297.405 to 297.555 with the Department of
Revenue or Secretary of State, as the case may be, within 30 days after a
request therefor has been made by certified mail to the city, the Department of
Revenue or Secretary of State may certify to the officer responsible for
disbursing funds to cities under ORS 323.455, 366.785 to 366.820 and 471.810
the fact of such failure to file the documents or reports. Notwithstanding
the requirements under ORS 323.455, 366.785 to 366.820 and 471.810 for prompt
payment of funds due a city, such officer shall withhold payment to the city of
any funds ordinarily payable to it under ORS 323.455, 366.785 to 366.820 and
471.810 until notified by the Department of Revenue or Secretary of State that
the required document or report has been received as required by law. A copy of
such certification and request shall be furnished the delinquent city. [1973
c.252 §1; 1977 c.774 §18; 1979 c.286 §5]
TAX
SUPERVISING AND CONSERVATION COMMISSION
     294.605
Definitions for ORS 294.605 to 294.705. As used in ORS 294.605 to 294.705, unless the context otherwise
requires:
     (1) “Commission” means the tax supervising
and conservation commission.
     (2) “Commissioner” means a member of the
tax supervising and conservation commission.
     (3) “Municipal corporations” means the
county, and any city, town, port, school district, union high school district,
road district, irrigation district, water district, dock commission, and all
other public and quasi-public municipal corporations that have power to levy a
tax within the county.
     (4) “Levying board” means the common
council, board of commissioners, board of directors, county court or other
managing board of the county, or of any city, town, port, school district,
union high school district, road district, irrigation district, water district,
dock commission, and of all other public or quasi-public corporations that have
power to levy a tax within the county.
     (5) “County court” means the county court
or board of county commissioners of the county.
     (6) “Fiscal year” means the calendar year
ending on December 31, or any period of 12 months ending during the calendar
year on the last day of any month other than December.
     (7) “Assessor” means the county assessor or
other officer charged by law with the duty of extending taxes upon the
assessment and tax roll.
     (8) “Current year” means the present year.
     294.608
Populous counties; commission establishment or financial summary publication. (1) The governing body of each county with a
population of 500,000 or more inhabitants, based on 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 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).
     (2) Each municipal corporation required to
submit a copy of the financial summary of the municipal corporation shall
comply with the requirement prior to the date of the first budget committee
meeting of the municipal corporation under ORS 294.401.
     (3) The copy of the financial summary
submitted to the county under this section shall be in an electronic format
that is compatible with Internet publication. The county shall publish all
financial summaries received from municipal corporations under this section on
the Internet website of the county. [2005 c.750 §7]
     294.610
Tax supervising and conservation commission; members; appointment;
qualifications; term; removal; filling vacancies. (1) A tax supervising and conservation
commission shall consist of five members appointed by the Governor. The
commissioners appointed shall be citizens of the
     (2) Unless sooner removed by the Governor,
as provided in this section, the commissioners shall hold office for a term of
four years and until their successors are appointed and qualified. The term of
office of the members of the commission shall commence on January 1.
     (3) The Governor may, for good and
sufficient cause, remove any commissioner at any time and appoint a successor.
     (4) In case of death, resignation or
inability of any member of the commission to serve, or of removal of any member
of the commission from office, the Governor shall make an appointment to fill
the balance of the unexpired term of that commissioner. [Amended by 1961 c.644 §2;
1973 c.61 §2; 1991 c.80 §1; 2005 c.750 §3]
     294.615
Oath of commissioner. Before
taking office each commissioner shall take and subscribe the following oath,
before an officer qualified to administer oaths, in substantially the following
form:
______________________________________________________________________________
State of
                                  ) ss.
     I, ________, being first duly sworn,
depose and say that
for the term of ___
year (s), to which I have been appointed as a member of the tax supervising and
conservation commission for ______ County, I will faithfully and
impartially discharge the duties of my said office; that I will support the
Constitution of the United States and the Constitution of the State of Oregon
and all laws passed in pursuance of either; that I will endeavor to secure
economical expenditure of public funds sufficient in amount to afford efficient
and economical administration of government in the county for which I have been
appointed, and in each city, town, port, school district, union high school
district, road district, irrigation district, water district, dock commission
and all other municipal corporations within the territorial limits of my
county; and that I will perform said duty without fear, favor or compulsion,
and without hope of reward.
_______________
     Subscribed and sworn to before me this ___
day of______, 2__.
_______________
Notary Public of
     My commission expires______.
______________________________________________________________________________
     294.620
Office of commission; employment and compensation of assistants. (1) The county court shall furnish an office
in the county courthouse or other convenient place for the use of the
commission, as is furnished to other departments.
     (2) The commission may employ and fix the
salaries of such clerks and other assistants as in their judgment shall seem
meet and proper to keep the records of the commission and perform any other
service to which they may be assigned by the commission. Such clerks and
assistants shall be paid out of the general fund of the county in the same
manner as other county officers and employees are paid.
     294.625
Jurisdiction of commission.
The commission shall have jurisdiction over all municipal corporations in the
county subject to the provisions of the Local Budget Law. If the territory of
the municipal corporation lies in two or more counties, the municipal
corporation shall be within the jurisdiction of the commission if the real
market value of all property subject to taxation by the municipal corporation
in a county having a commission is greater than the real market value of 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. [Amended by 1961 c.678 §3;
1965 c.451 §12; 1969 c.155 §4; 1981 c.623 §1; 1991 c.459 §10]
     294.630
Tax supervising and conservation commission account. There hereby is created an account to be
known as the tax supervising and conservation commission account in the general
fund of each county subject to ORS 294.605 to 294.705. The tax supervising and
conservation commission shall on or before April 1 of each year submit
certified budgets for the ensuing fiscal year to the county court or board of
county commissioners. The budget shall contain a complete and detailed estimate
of the proposed expenditures of the commission for all purposes. Following the
receipt of the budget the county court or board of county commissioners shall
include the budget as submitted as a part of the county budget and shall make
an appropriation for the tax supervising and conservation commission account
sufficient to cover the proposed expenditures, but no appropriation shall be
made in any county in any year for such purpose in excess of $280,000. The
county court or board of county commissioners shall not reduce the amount of
the budget as presented by the tax supervising and conservation commission,
within the amount stated in this section, nor shall it refuse to approve any
lawful request for disbursement of money from the tax supervising and
conservation commission account. [Amended by 1955 c.263 §1; 1961 c.644 §1; 1969
c.363 §1; 1973 c.68 §1; 1975 c.116 §1; 1977 c.88 §1; 1981 c.96 §1; 1985 c.228 §1;
1989 c.222 §1; 1999 c.632 §20]
     294.635
Submission of budget estimates by levying boards. (1) In each county that has a tax
supervising and conservation commission, the levying boards of all municipal
corporations shall on or before May 15 of each fiscal year or on or before May
15 of the first fiscal year of a budget period, submit their detailed estimates
of the budget deemed necessary to be expended by the municipal corporations,
respectively, for all purposes for the next ensuing fiscal year or ensuing
budget period. The tax supervising and conservation commission may, if a good
and sufficient reason exists therefor and if application is made to the
commission in writing, grant any municipal corporation such extension of time
for filing its budget as may seem to the commission just and reasonable.
     (2) The budget estimates required by this
section to be filed with the commission shall be in writing and shall be
certified to as correct and shall be so prepared and arranged as to show in
plain and succinct language each particular item of proposed expenditure. There
shall be attached to each budget, and made a part thereof, the levying boardÂ’s
estimate of the probable receipts of the municipal corporation from all other
sources than direct tax levy and bond issues during the fiscal years for which
the budget has been prepared. The budget estimates shall show in parallel
columns the actual expenditures for the two fiscal years next preceding the
current year, the estimated expenditures for the current year and the estimated
expenditures for the next ensuing fiscal year. [Amended by 1961 c.678 §4; 1963
c.576 §37; 1977 c.431 §2; 1991 c.80 §2; 2001 c.135 §28; 2005 c.750 §4]
     294.640
Hearing on budget. Every
levying board shall be entitled to a hearing by the commission upon the budget
submitted by it. The commission shall set times and places for such hearings,
which shall be open to the public. The commission shall give notice, in such
form and manner as it shall prescribe, of such hearing to every levying body
entitled to such hearing. The levying boards shall meet with the commission at
such times and places fixed by the commission for such hearings and discuss the
budget with the commission.
     294.645
Consideration of budget by commission; certifying objections or recommendations
to levying board; procedure where municipality holds hearing in place of
commission. (1) After the
hearings have been held the commission shall carefully consider the proposed
budgets and shall by majority vote of the members of the commission certify in
writing to the levying board of any municipal corporation, on or before June 25
of each fiscal year, or on or before June 25 of the first fiscal year of a
budget period, any objections which the commission may have to the adoption of
the budget, or any item therein, or any recommendations which the commission may
desire to make regarding the budget. If the commission does not desire to make
any recommendations or objections, it shall certify that fact to the levying
board. The responsibility of the commission shall be advisory only.
     (2) Certification of a budget for a
municipal corporation holding its own hearing shall be made in the same manner
as required by subsection (1) of this section, except that any recommendations
or objections shall be certified to the levying board prior to the date of the
hearing. [Amended by 1961 c.678 §5; 1963 c.576 §38; 1999 c.632 §17; 2001 c.135 §29]
     294.650
Striking unauthorized items from budget; reducing total amount to within limits
permitted by law and Constitution. (1) If in the examination of any budget of any municipal corporation
the commission finds that any item is an expenditure not authorized by law to
be made by the municipal corporation, the commission may order the item to be
stricken from the budget. The levying board of the municipal corporation
thereupon shall strike the item from the budget and shall not thereafter levy
any tax for the payment of the same.
     (2) If, after the hearing, the commission
finds that the total amount of the tax levy of any municipal corporation
exceeds the amount permitted by law or any provision of the Constitution of
this state to be levied by the municipal corporation, the commission shall
order that the total amount of the budget be reduced to within the limits
permitted by law or constitutional limitation, and shall file certified copies
of such order with the county assessor and county clerk. The levying board of
the municipal corporation thereupon shall comply with the order of the
commission by so reducing the total amount of the budget.
     294.655
Hearing on special tax levies and bond issues proposed for elector approval. The commission shall conduct public hearings
on all special tax levies and bond issues proposed for elector approval by the
levying boards. Any levying board proposing to ask elector approval of a
special tax levy or of a bond issue shall notify the commission in writing of
its proposal not less than 30 days prior to the filing date for the election
and set forth its reasons therefor, but the commission in its discretion may
permit such notification to be filed in such shorter period of time as it sees
fit. Upon the receipt of the notification the commission shall fix the time and
place of hearing and notify the levying board to attend the hearing and discuss
the proposed special tax levy or bond issue with the commission. The hearings
provided for in this section shall be in addition to the regular budget
hearings provided for by ORS 294.640. [Amended by 1999 c.632 §18]
     294.660
Compiling information as to indebtedness; including in annual report. The commission shall compile accurate
statistical and other information as to bonded or other indebtedness within the
county and of all municipal corporations within the county and shall keep a
permanent record thereof. The commission shall issue a statement thereof as of
June 30 of each year, in the annual report of the commission. The statement
shall show also the interest charges for the ensuing year on account of such
indebtedness and the amount of principal to be retired in that year.
     294.665
Levying board to submit audit report or financial statements annually. The levying board of each municipal
corporation under the jurisdiction of the commission shall annually submit a
copy of the full report of its independent auditor under ORS 297.425, or a copy
of the financial statements submitted to the Secretary of State under ORS
297.435, as soon as practicable after the close of each fiscal year. [Amended
by 1999 c.632 §19]
     294.670
Commission may inquire into management, books and systems; rules. (1) The commission may inquire into the
management, books of account and systems employed, of each municipal
corporation, and of each department thereof within its respective county.
     (2) Notwithstanding ORS 294.495 (2), the
commission may prescribe such rules and regulations as are considered proper to
effectually carry out the purposes of ORS 294.305 to 294.705. In any case where
rules adopted pursuant to this subsection conflict with rules adopted by the
Department of Revenue, rules adopted by the department shall prevail. [Amended
by 1975 c.669 §1]
     294.675
Calling joint meetings of levying boards. The commission may call joint meetings of the levying boards subject
to ORS 294.605 to 294.705 and may require their attendance for the purpose of
discussing problems common to two or more municipal corporations under the
jurisdiction of the commission, including long range financial planning,
building programs, special levies, bond issues and cooperative ventures such as
joint purchasing.
     294.680
Certifying excessive or unauthorized expenditures to district attorney; action
by district attorney. If at
any time the commission finds that any municipal corporation, or public
official thereof, has expended any public money in excess of the amounts or for
any other or different purpose or purposes than is authorized by law, the
commission shall certify to the district attorney for the county that fact, and
the district attorney shall proceed for the recovery thereof as by law
provided.
     294.685
Annual report by commission.
A complete and comprehensive report of the budgets as presented by the several
levying boards, as provided by ORS 294.635 to 294.650, and of any and all other
information pertaining to the administration of government in the county and to
the expenditures and conservation of public funds, shall be made annually by
the commission and published in document form for the information of the
electors and taxpayers. Copies of the report shall be filed with the Governor
and with the county court.
     294.690
Records and files of commission open to public inspection. The public shall have access to the records
and files of the commission at the office of the commission at all times during
office hours.
     294.695
Attorney General as legal advisor and counsel to commission. The Attorney General shall be the legal
advisor and counsel of the commission and shall represent it in all suits and
actions and other legal proceedings in any court in this state. The Attorney
General shall receive compensation for any services rendered in such capacity. [Amended
by 1969 c.363 §2; 1973 c.775 §6]
     294.700
Proceedings to collect penalties. The penalties provided for in ORS 294.990 (2) and (3) shall be
recovered by actions at law instituted in the name of the commission by the
district attorney. Any proceedings against a municipal corporation shall be
taken against the municipal corporation, as such, and the penalty when
recovered shall be deducted from any money in the county treasury to the credit
of the municipal corporation. Any proceeding against a levying board shall be
taken against the individual members of the levying board who are responsible
for the failure, neglect or refusal to comply. [Amended by 1971 c.267 §14]
     294.705
Tax supervising and conservation fund. There is established the tax supervising and conservation commission
fund in the county treasury. The fund shall consist of any penalties recovered
under ORS 294.700.
     294.710
Procedures for establishing commission; annual appropriations. (1) Any county with a population of less than
500,000 inhabitants, based on the most recently available data published or
officially provided by the Portland State University Population Research
Center, may establish, with the approval of a majority of its electors voting
on the question, a tax supervising and conservation commission that
substantially conforms to the provisions of ORS 294.605 to 294.705.
     (2) Any county with a population of
500,000 or more inhabitants, based on the most recently available data
published or officially provided by the Portland State University Population
Research Center, may establish a tax supervising and conservation commission
that substantially conforms to the provisions of ORS 294.605 to 294.705
provided the county obtains the approval of a majority of the members of its
governing body voting on the question.
     (3) Notwithstanding ORS 294.630, a county
under this section may establish its own maximum annual appropriation to a tax
supervising and conservation commission in the ordinance creating the
commission. [1977 c.431 §1; 1991 c.80 §3; 2005 c.750 §5]
LOCAL GOVERNMENT
EMPLOYER BENEFIT TRUST FUND
     294.725
Definitions for ORS 294.725 to 294.755. For the purposes of ORS 294.725 to 294.755:
     (1) “Account balance” means the amount a
political subdivision has paid into the Local Government Employer Benefit Trust
Fund less the amount of unemployment benefits paid by the Employment Department
on behalf of the political subdivision.
     (2) “Account reserve ratio” means the
account balance of the political subdivision on June 30, divided by gross wages
paid to individuals subject to ORS chapter 657 during the four calendar
quarters ending on June 30 by the political subdivision. The ratio shall be
expressed as a percent carried to four decimal places.
     (3) “Aggregate benefit cost rate” means
the total unemployment benefits paid during a cost rate period that is
attributable to wages paid by all political subdivisions divided by the gross
wages paid to individuals subject to ORS chapter 657 during the cost rate
period by all political subdivisions. The rate shall be expressed as a percent
and rounded to the nearest one-tenth of one percent.
     (4) “Benefit cost rate” means the total
unemployment benefits paid during a cost rate period that is attributable to
wages paid by a political subdivision divided by gross wages paid to
individuals subject to ORS chapter 657 during the cost rate period by the
political subdivision. The rate shall be expressed as a percent and carried to
four decimal places.
     (5) “Cost rate period” means the prior
three-year period ending June 30 of each year.
     (6) “Department” means the Employment
Department.
     (7) “Director” means the Director of the
Employment Department.
     (8) “Erroneous benefit payments” means any
amount paid to an individual to which the individual is not entitled due to:
     (a) Any error, whether or not due to
misrepresentation or nondisclosure of material fact by the claimant; or
     (b) An initial decision to pay benefits
that is subsequently reversed by a decision finding the individual was not
eligible for the benefits and the decision has become final.
     (9) “Local Government Employer Benefit
Trust Fund” or “fund” means the fund created by ORS 294.730.
     (10) “Political subdivision” means a
political subdivision as defined by ORS 657.097.
     (11) “Unemployment benefits” or “benefits”
means regular and extended benefits paid under ORS chapter 657. [1977 c.491 §3;
1989 c.135 §1; 1993 c.344 §9; 2007 c.71 §91]
     294.730
Fund created; State Treasurer as custodian; use of moneys; distribution of earnings. (1) There is created a Local Government
Employer Benefit Trust Fund, separate and distinct from the General Fund. The
State Treasurer shall be the custodian of such fund and the fund shall consist
of:
     (a) All moneys received from political
subdivisions under the provisions of ORS 293.701, 294.725 to 294.755 and
657.513;
     (b) Interest earned upon any moneys in the
fund;
     (c) Moneys transferred from other funds to
cover shortages in the fund; and
     (d) All other moneys received from a
political subdivision to be applied against benefit payment charges for any
period the political subdivision has requested the Employment Department to
reimburse the Unemployment Compensation Trust Fund on its behalf.
     (2) Moneys in the fund are continuously
appropriated to the department and, notwithstanding ORS 657.505, shall be the
sole source of funds for payment to the Unemployment Compensation Trust Fund
for benefits attributable to a political subdivision during its period of
participation in the fund and repayment of advances and the interest thereon
due to any shortages in the fund.
     (3) Interest earned upon any moneys in the
fund is continuously appropriated to the department for the payment of:
     (a) Administrative expenses of ORS
293.701, 294.725 to 294.755 and 657.513 and expenses incurred in the investment
of the fund in the amount authorized by ORS 293.718;
     (b) Erroneous benefit payments determined
during the period in which a political subdivision is a participant in the
fund; and
     (c) Benefits attributed to a political
subdivision that has ceased to exist, has no positive account balance and has
no successor.
     (4) When insufficient interest exists to
pay obligations under subsection (3) of this section, such amounts may be paid
from the fund. When the fund again begins earning interest, all obligations
paid pursuant to this subsection shall be repaid to the fund before any
allocation is made under subsection (5) of this section.
     (5) As soon as possible after the end of
each calendar quarter, the State Treasurer shall review the applicable
quarterly interest earnings and payments made therefrom and distribute any
excess interest earnings to the political subdivision accounts that had a
positive balance on the last day of the applicable quarter. Such allocation shall
be in a ratio that the political subdivision positive account balance on the
last day of the calendar quarter bears to the total balance of all political
subdivisions with positive account balances on the last day of the calendar
quarter. The amounts distributed for the quarter ending June 30 shall be
included in the account reserve ratio determination for such June 30.
     (6) The Director of the Employment
Department is authorized to requisition from the fund such amounts determined
to be necessary for the payment of benefits attributable to wages of political
subdivisions.
     (7) Interest accrued each quarter on
advances pursuant to subsection (2) of this section shall be allocated each
quarter to those political subdivision accounts with a negative balance on the
last day of such calendar quarter. The allocation shall be in a ratio that the
political subdivision negative account balance on the last day of the calendar
quarter bears to the total balance of all political subdivisions with negative
account balances on the last day of the calendar quarter. The amounts allocated
for the quarter ending June 30 shall be included in the account reserve ratio
determination for such June 30. [1977 c.492 §4; 1983 c.53 §1; 1989 c.135 §2;
1989 c.966 §22]
     294.735
Payments to fund by political subdivisions; benefit cost rate determinations;
effect of negative balance; refunds. (1) A political subdivision shall pay into the Local Government
Employer Benefit Trust Fund a percentage of the gross wages it pays to
individuals in employment subject to ORS chapter 657, except that minor
adjustments to wages in a calendar quarter on which payments have previously
been made may not result in either a credit to the employer or an additional
amount due the fund. The percentage shall be as determined in subsections (2)
to (6) of this section.
     (2) As soon as possible after June 30 of
each year, the Employment Department shall for each political subdivision
determine the benefit cost rate and the account reserve ratio applicable as of
that June 30.
     (3) The percentage rate assigned to a
political subdivision whose account has been potentially chargeable with
benefits for each of the last four calendar quarters ending on the June 30
immediately preceding the determination shall be the benefit cost rate of the
political subdivision plus one-third of the difference obtained by subtracting
the political subdivisionÂ’s account reserve ratio from 1.5 times the political
subdivisionÂ’s benefit cost rate. The resulting rate shall be rounded up to the
nearest one-tenth of one percent. A political subdivisionÂ’s rate shall be not
less than one-tenth of one percent nor more than five percent.
     (4) The percentage rate assigned to a
political subdivision whose account has not been potentially chargeable with
benefits for each of the last four quarters ending on the immediately preceding
June 30 shall be the greater of one percent or 1.5 times the aggregate benefit
cost rate for the cost rate period ending on that June 30.
     (5) Notwithstanding subsections (3) and
(4) of this section, a local government employer with an account balance on
June 30 that is less than five percent of the taxable wage base currently in
effect may not be assigned a rate of:
     (a) Less than two percent if the payroll
of the employer was less than $25,000 during the four most recently completed
calendar quarters;
     (b) Less than one percent if the payroll
of the employer was $25,000 or more but less than $50,000 during the four most
recently completed calendar quarters;
     (c) Less than one-half of one percent if
the payroll of the employer was $50,000 or more but less than $100,000 during
the four most recently completed calendar quarters; or
     (d) Less than two-tenths of one percent if
the payroll of the employer was $100,000 or more during the four most recently
completed calendar quarters.
     (6) Percentages determined in subsections
(3) to (5) of this section shall be applicable for the four-calendar-quarter
period beginning July 1 of the year immediately following the determination.
     (7)(a) In addition to the payment made
into the fund under subsections (1) to (6) of this section, any political
subdivision that has a negative account balance at the end of a calendar
quarter and had a negative account balance at the end of each of the three
immediately preceding calendar quarters shall make additional payments into the
fund during each of the next four calendar quarters. The additional payment
required shall be computed as follows, with all computations omitting cents:
     (A) Multiply the gross payroll reported by
the employer during the four most recent calendar quarters by the current
percentage rate of payment into the fund.
     (B) Subtract the amount of benefits
attributable to the employer that was reimbursed from the fund during the most
recent four calendar quarters from the product determined in subparagraph (A)
of this paragraph.
     (C) If the remainder obtained in
subparagraph (B) of this paragraph is more than zero, subtract the remainder
from the negative balance of the account.
     (D) If the remainder in subparagraph (B)
of this paragraph is zero or less, make no adjustment to the amount of the
negative balance of the account.
     (E) Divide the amounts determined in
either subparagraph (C) or (D) of this paragraph by four. The resulting amount
shall be the additional payment required for each quarter.
     (b) Only one such determination shall be
made in any four-quarter period. If the negative balance is eliminated before
the end of the four quarters in which the additional payments were determined
necessary, no further additional payments will be required under this
subsection.
     (8) During the first four calendar
quarters in which a political subdivision is a participant in the fund,
additional payments shall be required if the account balance of the political
subdivision is negative at the end of any of the four quarters. The additional
payment shall be determined in the same manner described in subsection (7) of
this section except that the computation in subsection (7)(a)(A) and (B) of this
section shall include only those quarters in which the political subdivision
was a participant in the fund.
     (9) Employers subject to the provisions of
this section may request a refund of amounts in excess of the amount required
to obtain the minimum contribution rate. [1977 c.491 §5; 1981 c.5 §1; 1983 c.53
§2; 1989 c.135 §3; 1993 c.778 §3; 2007 c.71 §92]
     294.740
Refund of account balances; payment of deficits; erroneous benefit payments. (1) The Employment Department shall refund
to a political subdivision electing to cancel its request as provided by ORS
657.513 any account balance remaining after the department has made all
payments to the Unemployment Compensation Trust Fund required to be made on
behalf of the political subdivision.
     (2) A political subdivision canceling a
request having a negative account balance shall make such additional payments
into the fund as necessary to maintain a zero account balance.
     (3) Erroneous benefit payments determined
after June 30, 1978, and attributable to wages paid by a political subdivision
making payments under ORS 294.735 shall be excluded from the account balance
determination and the determination of the benefit cost rate of that political
subdivision. [1977 c.491 §§6,7; 1989 c.135 §4]
     294.745
Analysis of fund receipts and expenditures; report to Legislative Assembly. The Employment Department shall investigate
the experience of political subdivision participation in operations of the
fund, including the relationship of fund receipts to fund expenditures and
report the results of the investigation to the legislature at least 30 days
prior to the date a regular session of the legislature is scheduled to convene.
The report shall include any recommended changes in the provisions of ORS
293.701, 294.725 to 294.755 and 657.513. [1977 c.491 §8; 1989 c.135 §5]
     294.750
Experience and liability of successor political subdivisions; unpaid
assessment. (1) The
experience and liabilities of a political subdivision that has ceased to exist
shall be acquired by the successor political subdivision.
     (2) Notwithstanding subsection (1) of this
section, all units of government who are parties to an agreement to form a
political subdivision shall be liable for any unpaid assessments of that
political subdivision and for such amounts as necessary to maintain the account
balance of the political subdivision, if no longer in existence, at zero
dollars. [1977 c.491 §9]
     294.755
Payment on quarterly basis; remedies for collection. Political subdivisions electing to
participate in the Local Government Employer Benefit Trust Fund shall pay into
the fund on a quarterly basis and are subject to all remedies for the
collection of delinquent taxes provided in ORS chapter 657. [1977 c.491 §10]
LOCAL GOVERNMENT INVESTMENT
POOL
     294.805
Definitions for ORS 294.805 to 294.895. As used in ORS 294.805 to 294.895:
     (1) “Board” means the Oregon Short Term
Fund Board.
     (2) “Council” means the Oregon Investment
Council created under ORS 293.706.
     (3) “Funds” means funds under the control
or in the custody of any local government official by virtue of office that are
not required to meet current demands.
     (4) “Investment officer” means the State
Treasurer in capacity as investment officer for the council and the investment
pool.
     (5) “Investment pool” means the aggregate
of all funds from local government officials that are placed in the custody of
the investment officer for investment and reinvestment as provided under ORS
294.805 to 294.895.
     (6) “Local government official” means each
officer or employee of any agency, political subdivision or public corporation
of this state, including the Oregon State Bar, who by law is made the custodian
of or has control of any funds. [1973 c.748 §1; 1981 c.880 §14; 1987 c.381 §1]
     294.810
Local governments authorized to place limited funds in pool. (1) With the consent of the governing body,
a local government official may place in the aggregate up to $30 million of its
funds in the investment pool, or, if the assets of the investment pool have
been transferred pursuant to ORS 294.882, in the state investment fund
established pursuant to ORS 293.721, for investment and reinvestment by the
investment officer as provided under ORS 293.701 to 293.820 or 294.805 to
294.895, as the case may be. The $30 million limitation stated in this section
shall not apply either to funds of a governing body which are placed in the
investment pool on a pass-through basis or to funds invested on behalf of
another government unit. Local governments must remove pass-through funds which
result in an account balance in the pool in excess of $30 million within 10
business days. County governments must remove such excess funds within 20
business days. The investment officer shall promptly report each instance of
noncompliance with, or apparent abuse of, the limitations of this section to
the Secretary of State and to the governing body of the local government
involved.
     (2) The $30 million limitation contained
in subsection (1) of this section shall increase in proportion to the increase
occurring after September 9, 1995, in the Consumer Price Index for All Urban
Consumers of the
     294.815
Period of investments; withdrawal of funds. Subject to the right of the unit of local government to specify the
period in which its funds may be held in the investment pool for investment and
reinvestment, the investment officer by rule shall prescribe the time periods
for investments in the investment pool and the procedure for withdrawal of
funds. [1973 c.748 §3]
     294.820
Establishment of investment pools by intergovernmental agreement; conditions;
powers. If the State
Treasurer and the Oregon Investment Council terminate the operation of all
investment pools created under ORS 293.824, public bodies, as defined in ORS
287A.001, may establish by written agreement under ORS chapter 190 one or more
pools for the investment of proceeds for the purposes identified in ORS
293.822. In establishing one or more such pools, the participating public
bodies may exercise those powers conferred on the State Treasurer and the
Oregon Investment Council by ORS 293.824. [1973 c.748 §4; 1979 c.608 §1; 1995
c.245 §11; 2007 c.783 §122]
     294.825
State Treasurer as investment officer; bond; employment of personnel; rules. (1) The State Treasurer is the investment
officer for the Oregon Investment Council and the investment pool, and shall
perform functions in that capacity as authorized or required by law and,
consistent with law, by the council.
     (2) The bond of the State Treasurer
required from the State Treasurer by law shall be deemed to extend to the
faithful performance of all functions of the office of investment officer under
ORS 294.805 to 294.895.
     (3) The investment officer may:
     (a) Subject to any applicable provision of
the State Personnel Relations Law, employ, prescribe the functions and fix the
compensation of personnel necessary to facilitate and assist in carrying out
the functions of the council, investment officer and investment pool.
     (b) Require a fidelity bond of any person
employed by the investment officer who has charge of, handles or has access to
any of the moneys in the investment pool. The amounts of the bonds shall be
fixed by the investment officer, except as otherwise provided by law, and the
sureties shall be approved by the investment officer. The premiums on the bonds
shall be an expense of the State Treasurer.
     (4) Subject to review by the board, the
investment officer may, pursuant to ORS chapter 183, make reasonable rules
necessary for the administration of ORS 294.805 to 294.895. [1973 c.748 §§5,18]
     294.830 [1973 c.748 §7; repealed by 1979 c.608 §2
(294.831 enacted in lieu of 294.830)]
     294.831
Investment objective; limit on maturity dates. (1) The local government investment pool
shall seek to obtain a competitive return on investments subject to the
standards set forth in ORS 294.835 and consistent with the liquidity
requirements demanded by the short term nature of local government deposits in
the pool.
     (2) The investment officer shall at all
times hold investments which mature in three years or less, in an amount not
less than an amount equal to the aggregate of all funds placed with the
investment officer by local governments under ORS 294.805 to 294.895, which
investments shall be from the funds defined in ORS 293.701 (2)(p).
     (3) Notwithstanding subsection (2) of this
section, the investment officer may purchase legally issued general obligations
of the
     (4) Investments and commitments of the
investment pool which do not conform to the quality or maturity requirements
set forth in ORS 294.805 to 294.895 shall be liquidated by the investment
officer once the market value of such investments and commitments reaches book
value, or as soon as is practicable thereafter. [1979 c.608 §3 (enacted in lieu
of 294.830); 1981 c.880 §16; 1987 c.381 §3; 1993 c.18 §61; 1995 c.40 §1]
     294.835
Standard of care; investment in certain stocks prohibited. (1) In investing and reinvesting moneys in
the investment pool and in acquiring, retaining, managing and disposing of
investments of the investment pool there shall be exercised the judgment and
care under the circumstances then prevailing, which individuals of prudence,
discretion and intelligence exercise in the management of their own affairs,
not in regard to speculation but in regard to the permanent disposition of
their funds, considering the probable income as well as the probable safety of
their capital. Within the limitations of the foregoing standard and subject to
subsection (2) of this section, there may be acquired, retained, managed and
disposed of as investments of the investment pool every kind of investment
which individuals of prudence, discretion and intelligence acquire, retain,
manage and dispose of for their own account.
     (2) Notwithstanding subsection (1) of this
section, moneys in the investment pool may not be invested in the stock of any
company, association or corporation. [1973 c.748 §8; 1979 c.608 §4; 2005 c.294 §2]
     294.840
Investment policies; review; separate policies for individual public bodies. Subject to the objective set forth in ORS
294.831 and the standards set forth in ORS 294.835, the Oregon Investment
Council shall formulate policies for the investment and reinvestment of moneys
in the investment pool and the acquisition, retention, management and
disposition of investments of the investment pool. The council, from time to
time, shall review those policies and make changes therein as it considers
necessary or desirable. The council may formulate separate policies for any
funds from any single public body included in the investment pool. [1973 c.748 §9;
2007 c.783 §122a]
     294.845
Investment officer to invest, reinvest pool funds. In amounts available for investment purposes
and subject to the policies formulated by the Oregon Investment Council, the
investment officer shall invest and reinvest moneys in the investment pool and
acquire, retain, manage, including exercise of any voting rights, and dispose
of investments of the investment pool. [1973 c.748 §10]
     294.847
Prohibited conduct for investment officer. In making investments pursuant to ORS 294.805 to 294.895, the
investment officer shall not:
     (1) Make a commitment to invest funds or
sell securities more than 14 business days prior to the anticipated date of
settlement of the purchase or sale transaction;
     (2) Enter into any agreement to invest
funds or sell securities for future delivery for a fee other than interest;
     (3) Lend securities to any person or
institution, except on a fully collateralized basis;
     (4) Pay for any securities purchased by
the investment officer until the investment officer has received physical
possession, or other sufficient evidence, as determined under ORS 293.751 (1),
of title thereof. However, the investment officer may instruct any custodian
bank, defined in ORS 295.001, to accept securities on the investment officerÂ’s
behalf against payment therefor previously deposited with the institution by
the investment officer; or
     (5) Deliver securities to the purchaser
thereof upon sale prior to receiving payment in full therefor. However, the
investment officer may deliver the securities to any custodian bank, defined in
ORS 295.001, upon instructions to hold the same pending receipt by the
institution of full payment therefor. [1981 c.880 §11; 1991 c.88 §6; 2007 c.871
§27]
     Note: The amendments to 294.847 by section 27,
chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all public
funds on deposit on or after July 1, 2008. See sections 36 and 37, chapter 871,
Oregon Laws 2007, as amended by sections 39 and 40, chapter 871, Oregon Laws
2007. The text that is operative until July 1, 2008, is set forth for the userÂ’s
convenience.
     294.847 In making investments pursuant to ORS
294.805 to 294.895, the investment officer shall not:
     (1) Make a commitment to invest funds or
sell securities more than 14 business days prior to the anticipated date of
settlement of the purchase or sale transaction;
     (2) Enter into any agreement to invest
funds or sell securities for future delivery for a fee other than interest;
     (3) Lend securities to any person or
institution, except on a fully collateralized basis;
     (4) Pay for any securities purchased by
the investment officer until the investment officer has received physical
possession, or other sufficient evidence, as determined under ORS 293.751 (1),
of title thereof. However, the investment officer may instruct any custodian
bank, defined in ORS 295.001 (2), to accept securities on the investment
officerÂ’s behalf against payment therefor previously deposited with the
institution by the investment officer; or
     (5) Deliver securities to the purchaser
thereof upon sale prior to receiving payment in full therefor. However, the
investment officer may deliver the securities to any custodian bank, defined in
ORS 295.001 (2), upon instructions to hold the same pending receipt by the
institution of full payment therefor.
     294.850
Contracts with persons to perform investment functions; compensation; bond. The Oregon Investment Council may enter into
contracts with one or more persons whom the council determines to be qualified,
whereby the persons undertake, in lieu of the investment officer, to perform
the functions specified in ORS 294.845 to the extent provided in the contract.
Performance of functions under contract so entered into shall be paid for out
of the gross interest or other income of the investments with respect to which
the functions are performed, and the net interest or other income of the
investments after that payment shall be considered income of the investment
pool. The council may require a person contracted with to give to the state a
fidelity bond in a penal sum as may be fixed by law or, if not so fixed, as may
be fixed by the council, with corporate surety authorized to do business in
this state. Contracts so entered into and functions performed thereunder are
not subject to the State Personnel Relations Law or ORS 279A.140. [1973 c.748 §11;
2003 c.794 §251]
     294.855
Legal opinions; investment counseling services; mortgage services. (1) In the acquisition or disposition of
bonds with which approving legal opinions ordinarily are furnished, the
investment officer may require an original or certified copy of the written
opinion of a reputable bond attorney or attorneys, or the written opinion of
the Attorney General, certifying to the legality of the bonds.
     (2) The Oregon Investment Council may
arrange for the furnishing to the investment officer of investment counseling
services. The furnishing and acquisition of those services are not subject to
the State Personnel Relations Law or ORS 279A.140.
     (3) The investment officer, with the
approval of the council, may arrange for services with respect to mortgages in
which moneys in the investment pool are invested. Those services shall be paid
for out of the gross interest of the mortgages with respect to which the
services are furnished, and the net interest of the mortgages after that payment
shall be considered income of the investment pool. The furnishing and
acquisition of those services are not subject to the State Personnel Relations
Law or ORS 279A.140. [1973 c.748 §12; 2003 c.794 §252]
     294.860
Custody of investment documents; collection of income; distribution to local
governments; calculation and allocation of profit and loss; defaulted payments
of principal and interest, collection, compromise. (1) Except as provided in ORS 294.850 and
this subsection, all instruments of title of all investments of the investment
pool shall remain in the custody of the investment officer. The investment
officer may deposit with one or more custodial agents or banks those
instruments of title that the State Treasurer considers advisable, to be held in
safekeeping by the agents or banks for collection of the principal and interest
or other income, or of the proceeds of sale or maturity. For purposes of this
section, instruments of title of investments of the investment pool may include
such evidence of title as the investment officer shall consider secure and
consistent with modern investment, banking and commercial practices, and may
include book entry and automated recordation of such title.
     (2) Except as provided in ORS 294.850 and
294.855 (3) and subsections (1) and (3) of this section, the investment officer
shall collect the principal and interest or other income of investments of the
investment pool, title of which is in the investment officerÂ’s custody, when
due and payable, and shall pay to the appropriate local government official the
principal and interest or other income, within 30 days after the last day of
the calendar quarter in which the principal and interest or other income
accrues. Not less often than quarterly and without regard to whether the
short-term investments were made with moneys placed by local government
officials or by other sources, the investment officer shall compute the amount
by which the current fair market value exceeds or is less than the net purchase
price of all short-term investments administered by the investment officer that
mature more than 270 days from the date computation is made. The investment
officer shall compute the fair market value of such investments based upon the
mean value of the bid and ask price of such investments as of the date of
computation, based upon quotations from reputable dealers or financial
institutions dealing in such investments. If the amount so computed by the
investment officer totals more than one percent of the balance of the pool,
either in terms of a gain or loss, the investment officer shall allocate the
amount to all pool participants. Any addition to or deduction from amounts to
be distributed shall be allocated among the municipalities participating in the
pool at any time during the month in proportion to their average daily balances
of funds invested through the pool. Investments maturing 270 days or less from
the date of computation shall not be subject to the foregoing computation, but
for other purposes shall be valued at book value or original purchase price.
     (3) In the event of default in the payment
of principal or interest or other income of any investment of the investment
pool, the investment officer, with the approval of the council, may:
     (a) Institute the proper proceedings to
collect the matured principal or interest or other income.
     (b) Accept for exchange purposes refunding
bonds or other evidences of indebtedness at interest rates to be agreed upon by
the investment officer and obligor.
     (c) Make compromises, adjustments or
disposition of the matured principal or interest or other income as the
investment officer considers advisable for the purpose of protecting the moneys
invested.
     (d) Make compromises or adjustments as to
future payments of principal or interest or other income as the investment
officer considers advisable for the purposes of protecting the moneys invested.
[1973 c.748 §13; 1979 c.475 §2; 1987 c.381 §4; 1991 c.88 §1; 1995 c.40 §2]
     294.865
Monthly deductions from income received for payment of expenses. The State Treasurer may deduct monthly a
maximum of 0.435 basis points of the most recent market value of assets under
the management of the investment pool. Amounts so deducted shall pay the State
Treasurer for expenses of the State Treasurer as investment officer and to the
extent the amounts deducted are so used shall be deposited into the
Miscellaneous Receipts Account established in the General Fund for the State
Treasurer, and are continuously appropriated for payment of the expenses of the
State Treasurer as investment officer. [1973 c.748 §6; 1975 c.740 §9; 1977
c.266 §11; 1991 c.88 §2; 1995 c.288 §2; 1999 c.1043 §3; 2001 c.716 §25]
     294.870
Separate accounts for local governments; reports on investment changes and
monthly financial statements required. (1) The investment officer shall keep, for each public body with funds
in the investment pool, a separate account, which shall record the individual
amounts and the totals of all investments of its moneys in the investment pool.
     (2) The investment officer shall report
monthly to the local government official of a public body with funds in the
investment pool the changes in its account made during the preceding month for
the investment pool. The investment officer shall also furnish a financial
report monthly to each participating governmental unit investor in the local
government investment pool. The financial report shall include, but not be
limited to, such comparative data for the preceding six months operation of the
investment pool as will provide a basis for analyzing trends and comparing
operating results and financial position. A monthly statement shall be
distributed within 30 days after the end of that month. [1973 c.748 §§14,15;
1979 c.608 §5; 1989 c.569 §4; 2007 c.783 §122b]
     294.875
Monthly report of investments of pool funds; distribution. Not later than 15 days after the last day of
each month, the investment officer shall submit to the Oregon Investment
Council and the Oregon Short Term Fund Board a report of the investments made
during the preceding month. The report shall include a detailed summary of
investment, reinvestment, purchase, sale and exchange transactions, setting
forth, among other matters, the investments bought, sold and exchanged, the
dates thereof, the prices paid and obtained, the names of the dealers involved
and a statement of the accounts referred to in ORS 294.870 (1). The reports
shall include a description of every investment in the portfolio of assets in
the investment pool showing issuer, coupon, purchase date, maturity date, yield
to maturity, book value, market value as of the end of the month for which the
report is rendered and the method used to value pool investments; a computation
of the average life of the portfolio of assets in the investment pool weighted
according to the market value of each investment that matures more than 270
days from the report date as of the end of the month for which the report is
rendered; and a computation of the annualized rate of return of the investment
pool portfolio, net of expense. A copy of the reports shall be made available
to each county, municipality, school district and other political subdivision
the funds of which are then being invested by the investment officer. The
investment officer may send copies of the report to investment bankers and
brokers recommended by the council. [1973 c.748 §16; 1981 c.880 §17; 1987 c.381
§5]
     294.880
Program examination and audit; report; distribution. An examination and audit of the investment
pool shall be made separately from the audit of the treasurer for submission to
the Oregon Investment Council, local public bodies that are investors in the
pool, the Legislative Assembly and the board at least once a year and at other
times as the council may require. An audit report shall be submitted to the
individuals and public bodies specified within 60 days after the end of the
fiscal year or as soon as practical. The report shall include a statement
prepared by the State Treasurer of the investment rules governing investments
authorized by the council. [1973 c.748 §17; 1979 c.608 §6; 2007 c.783 §122c]
     294.882
Merger or subsequent separation of local government investment pool and state
investment fund; preconditions.
(1) It is recognized that a time may come when the interest of local
governments diminishes to the extent that participation in the local government
investment pool no longer warrants its operation as a separate fund. If the
local government investment pool decreases to a level below $125 million, the
State Treasurer may transfer the assets of the pool to the state investment
fund established under ORS 293.701 (2)(o). In that event, the local government
investment pool participant accounts will be treated as are other state funds
and accounts in receiving a proportionate share of the earnings of that
investment fund. Notwithstanding ORS 294.860, 294.865, 294.870, 294.875 or
294.880, when the State Treasurer transfers the assets of the local government
investment pool to the state investment fund, the distributions of income to
local governments, payment of related expenses and the reporting, program
examination and audit functions with respect to the investment pool participant
accounts shall be administered in accordance with ORS 293.718, 293.751,
293.756, 293.761, 293.766, 293.771, 293.776 and 293.820.
     (2) The State Treasurer, at the discretion
of the treasurer may reestablish the local government investment pool as a
separate fund, if the participant accounts increase to over $125 million and in
the State TreasurerÂ’s judgment, sufficient interest by local government exists
to insure the local government investment pool will remain over $125 million.
Prior to reestablishing the pool as a separate fund, the State Treasurer shall
first present a plan for operation, including the reasons for such action, to
the Oregon Investment Council at a regularly scheduled meeting for its review
and comment. The State Treasurer shall publish notice in the Secretary of StateÂ’s
administrative rules bulletin of the treasurerÂ’s intent to reestablish the pool
as a separate fund at least 30 days prior to the meeting at which the Oregon
Investment Council shall review the proposal, and notice of the meeting time
and location of the Oregon Investment Council at which the proposal will be
discussed. [1979 c.608 §9; 1980 c.19 §7; 1983 c.456 §3; 1993 c.18 §62; 1997
c.129 §1; 1999 c.1043 §7]
     294.885
     (2) One member shall be the State
Treasurer or the treasurerÂ’s designated representative. Three members who are
qualified by training and experience in the field of investment or finance and
who do not hold any other public office or employment, shall be appointed by
the State Treasurer. Three members, who are treasurers, finance or fiscal
officers or business managers of any county, city or school district, shall be
appointed by the Governor. In making the appointment, the Governor may consider
persons recommended by:
     (a) The Association of Oregon Counties.
     (b) The League of Oregon Cities.
     (c) The
     (3) The term of office of each appointed
member of the board is four years, but each appointed member serves at the
pleasure of the appointing authority. A vacancy in the appointed membership
occurring other than by expiration of term shall be filled in the same manner
as the original appointment, but for the unexpired term only. [1973 c.748 §19;
1979 c.608 §7; 1981 c.880 §18; 1989 c.1006 §2]
     294.890
Board members serve without compensation; selection of chairperson. (1) A member of the Oregon Short Term Fund
Board shall serve without compensation.
     (2) The board shall select one of its
members as chairperson, for a term and with the powers and duties necessary for
the performance of the functions of the office as the board shall determine. [1973
c.748 §20]
     294.895
Board duties, generally. The
Oregon Short Term Fund Board shall:
     (1) Advise the Oregon Investment Council
and the investment officer in the management of the investment pool and in the
investment of all funds defined in ORS 293.701 (2)(p) and invested pursuant to
ORS 293.721.
     (2) Review the rules promulgated by the
investment officer as authorized under ORS 294.825 (4).
     (3) Consult with the council and the
investment officer on any matter relating to the investment and reinvestment of
funds in the investment pool and on any matter relating to the investment or
reinvestment of funds defined in ORS 293.701 (2)(p) and invested pursuant to
ORS 293.721. [1973 c.748 §21; 1981 c.880 §19; 1993 c.18 §63]
COUNCILS OF
GOVERNMENTS
     294.900
“Council of governments” defined. As used in ORS 294.900 to 294.930, “council of governments” means an
entity organized by units of local government under an intergovernmental
agreement under ORS 190.003 to 190.130, which does not act under the direction
and control of any single member government and does provide services directly
to individuals. [1987 c.666 §1]
     Note: 294.900 to 294.930 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
294 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     294.905
Budget committee; membership; term; vacancies; officers; meetings to be public. (1) A council of governments shall establish
a budget committee in accordance with the provisions of this section.
     (2) The budget committee shall consist of
the members of the governing body of the council of governments and an equal
number of representatives of the services provided by the council of
governments. If there are fewer representatives of the services than the number
of members of the governing body of the council, the governing body and the
representatives willing to serve shall be the budget committee. If there are no
representatives willing to serve, the governing body shall be the budget
committee.
     (3) The members of the budget committee
shall receive no compensation for their services as members of such committee.
     (4) Appointive members of the budget
committee shall not be officers, agents or employees of the council of
governments or providers of the services.
     (5) The appointive members of the budget
committee shall be appointed for terms of three years. The terms shall be
staggered so that one-third or approximately one-third of the terms of the
appointive members end each year.
     (6) If any appointive member is unable to
serve the term for which the member was appointed, or an appointive member
resigns prior to completion of the term for which the member was appointed, the
governing body of the council of governments shall fill the vacancy by
appointment for the unexpired term.
     (7) The budget committee, at its first
meeting after its appointment, shall elect a chairperson and a secretary from
among its members.
     (8) Meetings of the budget committee shall
comply with the requirements of ORS 192.610 to 192.710. [1987 c.666 §2]
     Note: See note under 294.900.
     294.910
Estimates of expenditures; organization and format; matters to be included. (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 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 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
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.
     (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. [1987 c.666 §3]
     Note: See note under 294.900.
     294.915
Notice of budget committee meeting; public availability of documents. (1) Not less than eight days and not more
than 14 days prior to the meeting of the budget committee of the council of
governments, notice of the meeting shall be published in a newspaper of general
circulation within each county represented by the council of governments. The
notice shall contain the purpose, time and place of the meeting and the place
where the budget document is available. The notice shall also state that the
meeting is a public meeting where deliberations of the budget committee will
take place and that any person may discuss proposed programs with the budget
committee at that time.
     (2) 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 council of governments. [1987
c.666 §4]
     Note: See note under 294.900.
     294.920
Hearing on budget document.
(1) Each council of governments shall hold a public hearing on the budget
document as approved by the budget committee.
     (2) Not less than eight days and not more
than 14 days prior to the meeting held as required by subsection (1) of this
section, notice of the meeting shall be published in a newspaper of general
circulation within each county represented by the council of governments. The
notice shall contain the time and place of the meeting and the place where the
budget document, as approved by the budget committee, is available. The notice
shall also state that the meeting is a public meeting where any person may appear
for or against any item in the budget document. [1987 c.666 §5]
     Note: See note under 294.900.
     294.925
Supplemental budget; conditions; term; publication. (1) Notwithstanding requirements as to
estimates of and limitation on expenditures, any council of governments may
make a supplemental budget for the fiscal year 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 which requires a change in financial planning.
     (b) A pressing necessity which was not
foreseen at the time of the preparation of the budget for the current year
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 ascertained at the time of the preparation of the budget
for the current year.
     (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.
     (e) The involuntary destruction,
involuntary conversion, or sale of property has necessitated the immediate
purchase, construction or acquisition of different facilities in order to carry
on the governmental operation.
     (2) A supplemental budget shall not extend
beyond the end of the fiscal year during which it is submitted.
     (3) The supplemental budget shall be
published. [1987 c.666 §6; 1989 c.171 §40]
     Note: See note under 294.900.
     294.930
Authority of Department of Revenue; budget records maintained by council of
governments. (1) The
Department of Revenue shall exercise the same powers and authority with regard
to councils of governments and the budgets and budget committees of councils of
governments as the department exercises under ORS 294.495 to 294.510 with
regard to municipal corporations.
     (2) Each council of governments shall keep
for a period of two years following the end of the fiscal year for which the
budget was adopted:
     (a) A copy of the budget as finally
adopted;
     (b) Copies of the notices required to be
published under ORS 294.915 and 294.920; and
     (c) A copy of the resolution adopting the
budget.
     (3) If requested by the Department of
Revenue, the Division of Audits or a county assessor within the two-year period
described in subsection (2) of this section, a council of governments shall
send copies of the budget, notices and resolution to the entity making the
request. [1987 c.666 §7; 2007 c.198 §1]
     Note: The amendments to 294.930 by section 1,
chapter 198, Oregon Laws 2007, apply to fiscal years beginning on or after July
1, 2007. See section 2, chapter 198, Oregon Laws 2007. The text that applies to
fiscal years beginning before July 1, 2007, is set forth for the userÂ’s
convenience.
     294.930. (1) The Department of Revenue shall exercise
the same powers and authority with regard to councils of governments and the
budgets and budget committees of councils of governments as the department
exercises under ORS 294.495 to 294.510 with regard to municipal corporations.
     (2) On or before July 15 of each year, or upon
such other date as the Department of Revenue shall designate, each council of
governments shall file with the Department of Revenue a true copy of its budget
as finally adopted, a copy of the notices required to be published under ORS
294.915 (1) and 294.920 (2) and a copy of the resolution adopting the budget.
     (3) The copies of budgets filed with the
Department of Revenue under subsection (2) of this section shall be turned over
to the Division of Audits created by ORS 297.010 on or before the end of the
fiscal year for which the budget was prepared, and shall be retained by the
Division of Audits for a period of two years following the end of the fiscal
year for which the budget was prepared.
     Note: See note under 294.900.
MISCELLANEOUS
     294.950
County revenue sharing with cities. (1) Subject to the limitation contained in subsection (3) of this
section, a county may give, out of its general fund, moneys that are not
otherwise obligated for county purposes to any city situated in whole or in
part within the county. Such moneys may be used by the city for general
municipal purposes.
     (2) Subject to the limitation contained in
subsection (3) of this section, a county may share the proceeds of any tax or
excise described in section 3a, Article IX of the Oregon Constitution, with any
city situated in whole or in part within the county for the purposes stated in
that section.
     (3) In any fiscal year, moneys given to a
city under this section shall not exceed the amount of revenue raised in any
manner by the county within the boundaries of that city.
     (4) Any sharing of revenues between a
county and city under this section is declared to be for a public purpose. [1981
c.335 §2]
     294.960
Collection and disposition of amounts due counties. Pursuant to ORS 293.250, a county may
collect any moneys owed to the county pursuant to a judgment obtained under ORS
169.151. The county shall provide to the Department of Revenue the amount owed
and the name, Social Security number and address of the person who owes the moneys.
[2001 c.641 §1]
     Note: 294.960 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 294 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
PENALTIES
     294.990
Penalties. (1) Any officer
willfully violating any of the provisions of ORS 51.340 shall, upon conviction
thereof, be fined not more than $25 for each offense, to be paid into the
county treasury for the benefit of the common schools.
     (2) Unless the time is extended by the
commission, any municipal corporation subject to ORS 294.605 to 294.705 which
fails, neglects or refuses to submit its annual or biennial budget to the
commission on or before May 15 of each fiscal year, or on or before May 15 of
the first fiscal year of a budget period, as provided in ORS 294.635, shall
forfeit to the use of the tax supervising and conservation commission fund $50
for each day of such failure, refusal or neglect.
     (3) Any levying board subject to ORS 294.605
to 294.705 which fails, neglects or refuses to attend any budget hearing at the
time and place fixed by the commission, or to be represented by counsel
thereat, shall forfeit to the use of the tax supervising and conservation
commission fund $25 for each member of such levying board responsible for such
failure, neglect or refusal. [Amended by 1953 c.306 §17; 1971 c.267 §15; 1999
c.654 §26; 2001 c.135 §30]
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