US Laws, Codes, Statutes & Cases

Chapter 294 — County and Municipal Financial Administration

 

2005 EDITION

 

 

MUNICIPAL FINANCIAL ADMINISTRATION

 

PUBLIC FINANCIAL ADMINISTRATION

 

GENERAL PROVISIONS

 

294.004     Definitions

 

COUNTY AND MUNICIPAL FINANCIAL ADMINISTRATION

 

(Generally)

 

294.005     Definitions for ORS 294.005 to 294.025

 

294.010     Surrender of warrants upon payment

 

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

 

294.025     Effect of wrongful payment; liability of officer

 

294.027     Provisions relating to warrants and payment of claims

 

294.028     Payment of warrants by depository

 

294.029     Provisions of ORS 294.027 and 294.028 not mandatory

 

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

 

294.033     Investment of deferred compensation funds

 

294.035     Investment of surplus funds of political subdivisions; approved investments

 

294.040     Restriction on investments under ORS 294.035

 

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

 

294.047     Loss of principal on liquidation of investments

 

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

 

294.050     County borrowing money from county general road fund

 

294.052     Definitions; investment by municipality of proceeds of bonds or certificates of participation

 

294.053     Investment by county in master warrants of county

 

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

 

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

 

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

 

294.070     Expenditure of Taylor Grazing Act funds; advisory board

 

294.080     Disposition of interest earned on funds held by county treasurer

 

294.085     Examining books and papers of county officers

 

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

 

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

 

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

 

294.120     Use of facsimile signatures

 

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

 

294.135     Investment maturity dates

 

294.145     Prohibited conduct for custodial officer

 

294.155     Annual audit report; monthly report

 

294.160     Opportunity for public comment on new fee or fee increase

 

COUNTY ASSESSMENT FUNDING ASSISTANCE PROGRAM

 

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

 

294.178     Assessment grant to county; determination of grant amount

 

294.181     Alternative method for certification

 

294.184     County Assessment Function Funding Assistance Account; sources; purpose

 

294.187     County Assessment and Taxation Fund; sources; purpose

 

PUBLICATION OF FINANCIAL REPORTS

 

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

 

LOCAL BUDGET LAW

 

294.305     Sections constituting Local Budget Law

 

294.311     Definitions for ORS 294.305 to 294.565

 

294.316     Application

 

294.321     Purposes

 

294.323     Budget period

 

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

 

294.331     Budget officer

 

294.336     Budget committee

 

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

 

294.352     Estimates of expenditures required; form and contents

 

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

 

294.361     Contents of estimate of budget resources

 

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

 

294.371     Estimate of unappropriated ending fund balance for each fund

 

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

 

294.381     Determination of estimated tax revenues

 

294.386     Financial summary

 

294.391     Budget message

 

294.396     Time of making budget message and document

 

294.401     Budget committee meeting; distribution of budget message and document; copies of document to be available

 

294.406     Budget committee hearings; approval of budget document

 

294.411     Submission of budget document to tax supervising and conservation commission in certain cases prior to publication and approval by budget committee

 

294.413     Format for notices and summaries

 

294.416     Publication of budget summary, financial summary, statement of accounting basis and notices of meeting and availability of budget document

 

294.418     Alternative budget publication procedure

 

294.421     Manner of publication; alternative requirements in certain cases

 

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

 

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

 

294.435     Governing body to adopt budget, make appropriations, declare and categorize property tax amount or rate; greater tax, encumbrance or expenditure limited; exception

 

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

 

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

 

294.443     Certain interest to be included in budget; method

 

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

 

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

 

294.450     Transfers of appropriations within fund or from one fund to another; appropriation of pass-through revenues

 

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

 

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

 

294.470     Internal service funds

 

294.475     Elimination of unnecessary fund; disposition of balance

 

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

 

294.483     Supplemental budget not required in certain cases; appropriation required for debt service on certain bonds

 

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

 

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

 

294.495     Department of Revenue to construe Local Budget Law; rules

 

294.500     Declaratory ruling by Department of Revenue as to its rules under Local Budget Law

 

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

 

294.510     Order for revision of budgetary procedures; enforcement

 

294.515     Appeal by municipal corporation from Department of Revenue order

 

294.520     Priority of appeals under Local Budget Law

 

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

 

294.555     Filing copy of budget and certain documents with county assessor and Department of Revenue

 

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

 

TAX SUPERVISING AND CONSERVATION COMMISSION

 

294.605     Definitions for ORS 294.605 to 294.705

 

294.608     Populous counties; commission establishment or financial summary publication

 

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

 

294.615     Oath of commissioner

 

294.620     Office of commission; employment and compensation of assistants

 

294.625     Jurisdiction of commission

 

294.630     Tax supervising and conservation commission account

 

294.635     Submission of budget estimates by levying boards

 

294.640     Hearing on budget

 

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

 

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

 

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

 

294.660     Compiling information as to indebtedness; including in annual report

 

294.665     Levying board to submit audit report or financial statements annually

 

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

 

294.675     Calling joint meetings of levying boards

 

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

 

294.685     Annual report by commission

 

294.690     Records and files of commission open to public inspection

 

294.695     Attorney General as legal advisor and counsel to commission

 

294.700     Proceedings to collect penalties

 

294.705     Tax supervising and conservation fund

 

294.710     Procedures for establishing commission; annual appropriations

 

LOCAL GOVERNMENT EMPLOYER BENEFIT TRUST FUND

 

294.725     Definitions for ORS 294.725 to 294.755

 

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

 

294.735     Payments to fund by political subdivisions; benefit cost rate determinations; effect of negative balance; refunds

 

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

 

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

 

294.750     Experience and liability of successor political subdivisions; unpaid assessment

 

294.755     Payment on quarterly basis; remedies for collection

 

LOCAL GOVERNMENT INVESTMENT POOL

 

294.805     Definitions for ORS 294.805 to 294.895

 

294.810     Local governments authorized to place limited funds in pool

 

294.815     Period of investments; withdrawal of funds

 

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

 

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

 

294.831     Investment objective; limit on maturity dates

 

294.835     Standard of care; investment in certain stocks prohibited

 

294.840     Investment policies; review; separate policies for individual local government units

 

294.845     Investment officer to invest, reinvest pool funds

 

294.847     Prohibited conduct for investment officer

 

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

 

294.855     Legal opinions; investment counseling services; mortgage services

 

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

 

294.865     Monthly deductions from income received for payment of expenses

 

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

 

294.875     Monthly report of investments of pool funds; distribution

 

294.880     Program examination and audit; report; distribution

 

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

 

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

 

294.890     Board members serve without compensation; selection of chairperson

 

294.895     Board duties, generally

 

COUNCILS OF GOVERNMENTS

 

294.900     “Council of governments” defined

 

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

 

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

 

294.915     Notice of budget committee meeting; public availability of documents

 

294.920     Hearing on budget document

 

294.925     Supplemental budget; conditions; term; publication

 

294.930     Duties of Department of Revenue

 

MISCELLANEOUS

 

294.950     County revenue sharing with cities

 

294.960     Collection and disposition of amounts due counties

 

PENALTIES

 

294.990     Penalties

 

GENERAL PROVISIONS

 

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

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

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

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

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

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

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

 

COUNTY AND MUNICIPAL FINANCIAL ADMINISTRATION

 

(Generally)

 

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

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

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

 

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

 

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

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

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

 

      294.020 [Repealed by 1979 c.763 §7]

 

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

 

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

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

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

 

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

 

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

 

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

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

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

 

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

 

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

      (2) This section does not:

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

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

      (3) Investments authorized by this section are:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (j) 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 United States with available obligations that any county, municipality, political subdivision or school district may invest in under ORS 294.035 (3)(a) and 294.040. The list shall be distributed, upon request, to any county, municipality, political subdivision or school district. [1973 c.157 §3; 1975 c.359 §4; 1995 c.245 §4; 2005 c.443 §22]

 

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

 

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

 

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

 

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

      (a) “Bond” has the meaning given that term in ORS 288.605.

      (b) “Certificate of participation” has the meaning given that term in ORS 288.605.

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

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

      (a) Produce a guaranteed rate of return;

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

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

 

      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 287.482 to 287.488. [1959 c.208 §1]

 

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

 

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

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

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

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

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

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

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

 

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

 

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

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

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

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

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

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

 

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

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

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

 

      294.085 Examining books and papers of county officers. (1) 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 295.005, 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 295.005 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 officer’s governing body. This subsection shall not apply to municipal corporations or political subdivisions exempt from municipal audits in ORS 297.435.

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

 

      294.160 Opportunity for public comment on new fee or fee increase. (1) After July 14, 1995, the governing body of a city, county or other unit of local government shall provide an opportunity for interested persons to comment on the enactment of any ordinance or resolution prescribing a new fee or a fee increase or an increase in the rate or other manner in which the amount of a fee is determined or calculated.

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

 

COUNTY ASSESSMENT FUNDING ASSISTANCE PROGRAM