150-504-420 (Rev. 2-02)

LocalBudgeting

Manual

FinancialPlan

FinancialPlan

Property Tax Division

O F R E V E N U ED E P A R T M E N T

O R E G O N

i

Table of ContentsIntroduction ......................................................................................................................................... 1

Chapter 1

The Budget Process: Who’s Involved? ............................................................................................. 3

Chapter 2

Formation, Dissolution, and Boundary Changes ........................................................................... 7

Chapter 3

The Budget Process: An Outline ....................................................................................................... 9

Chapter 4

Proposing the Budget ....................................................................................................................... 13

Chapter 5

Types of Funds .................................................................................................................................. 15

Chapter 6

The Budget Document ...................................................................................................................... 19

Chapter 7

Approving the Budget ...................................................................................................................... 29

Chapter 8

Publication Requirements ................................................................................................................ 33

Chapter 9

Estimated Property Taxes To Be Received .................................................................................... 37

Chapter 10

Types of Property Taxes ................................................................................................................... 41

Chapter 11

Tax Elections ...................................................................................................................................... 45

Chapter 12

Adopting the Budget ........................................................................................................................ 49

Chapter 13

Certifying Taxes Imposed ................................................................................................................ 55

Chapter 14

Budget Changes After Adoption .................................................................................................... 57

Chapter 15

Biennial Budgets ................................................................................................................................ 63

Appendix A: Glossary ..................................................................................................................... 67

Appendix B: Outline of Budget Process ...................................................................................... 71

Appendix C: Taxing Powers and Limitations of Local Governments ................................... 75

Appendix D: Permanent Rate Limits ........................................................................................... 79

Appendix E: Gap Bonds .................................................................................................................. 97

Appendix F: Community College Local Option Limits ............................................................ 99

Index ................................................................................................................................................. 101

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Most local governments in Oregon, from the smallestcemetery district to the largest city, must prepare andadopt an annual budget. Schools, counties, cities, ruralfire protection districts, and most special districts are allsubject to the same budget provisions. Only districtsspecifically exempted in the law do not have to prepareand adopt an annual budget. (See Chapter 3, page __,for a list of exempt local governments.)

Budget provisions are determined by Oregon’s LocalBudget Law. It is found in Chapter 294 of the OregonRevised Statutes. The law sets out several specific pro-cedures that must be followed during the budgetingprocess. The budget must be completed by June 30—the day before the start of the fiscal year to which thebudget applies. Without a budget for the new fiscal yearin place, the local government’s authority to spendmoney or incur obligations expires on June 30. A localgovernment’s ability to impose a property tax is alsotied to the budgeting process. Compliance with LocalBudget Law is critical for local governments.

What is Local Budget Law?

Many states have specific laws which require local gov-ernments to prepare and adopt annual budgets. Oregon’sLocal Budget Law does several very special things:

• It establishes standard procedures for preparing, pre-senting and administering the budgets of Oregon’s lo-cal governments.

• It encourages citizen involvement in the preparationof the budget before its formal adoption.

• It provides a method of estimating revenues, expen-ditures and proposed taxes.

• It offers a way of outlining the programs and servicesprovided by local governments and the fiscal policyused to carry them out.

Budgeting in Oregon is a joint effort between the peopleaffected by the budget and the appointed and electedofficials responsible for providing the services.

Citizen involvement in the budget process varies fromone community to the next. It is up to each local gov-ernment to prepare a budget that clearly outlines its fis-cal policies and is satisfactory to its patrons. If a budgetis clear and concise, taxpayers better understand howtheir tax dollars are spent.

Oregon’s Local Budget Law is set out in Oregon Re-vised Statutes 294.305 to 294.565.

The full text of these statutes can be found on the Ore-gon Legislature Web site at www.leg.state.or.us.

Biennial Budgets

Municipal corporations have the option of budgetingon a 24-month budget, which is called a biennial bud-get, or they can budget by fiscal year. For the differencesthat biennial budgeting will entail, see Chapter 15—Bi-ennial Budgets. Throughout this manual, we refer to thebudget period as “fiscal year” but if a local governmentadopts a biennial budget, the period referred to is a 24-month period.

What is a Budget?

A budget is a financial plan containing estimates of rev-enues and expenditures for a single fiscal year. Eachlocal government operates within a fiscal year begin-ning on July 1 and ending the following June 30.

Budgeting allows a local government to evaluate itsneeds in light of the revenue sources available to meetthose needs. A complete budget justifies the impositionof ad valorem (according to value) property taxes.

Questions?

Telephone: Salem 503-945-8293

TTY (hearing or speech impaired only). These numbersare answered by machine only and are not for voice use.The toll-free number within Oregon is 1-800-886-7204. InSalem, the number is 503-945-8617.

¿Habla español? Línea de mensaje. Las personas quenecesitan asistencia en español pueden dejar un mensaje.El número disponible todo el año en Salem es 503-945-8618.

A message line is available all year for those who need as-sistance in Spanish. The number in Salem is 503-945-8618.

Americans with Disabilities Act (ADA). In compliancewith ADA, this information is available in alternativeformats upon request. The toll-free number in Oregonis 1-800-356-4222. In Salem, it is 503-378-4988.

Internet: www.dor.state.or.us

Introduction

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Many state agencies and organizations are involved inthe budget process. This chapter explains the duties andresponsibilities of each agency or organization.

The Oregon Department of Revenue andLocal Budgeting

The authority of the Department of Revenue in its over-sight role in the budgeting process of local governmentis found in ORS 294.490 and ORS 294.495.

The department has the statutory authority to ensurecompliance with Local Budget Law and all other lawsrelating to the imposition of property taxes by munici-pal corporations (ORS 294.490). The same statute pro-hibits the department from interfering with the fiscalpolicy of any local government.

Sole authority to interpret and administer Local Bud-get Law and to issue rules for compliance is also givento the department by statute (ORS 294.495).

Publications

The Department of Revenue uses several methods tofulfill its statutory duties. Instructions such as thismanual provide detailed budgeting guidelines andstatutory interpretations. Local Budgeting in Oregon, anoverview of the budgeting process, is especially help-ful to the public and budget committee members. In-formation circulars, distributed to county assessors’offices, provide timely information on specific issues.All of these publications are also available on thedepartment’s Web site at www.dor.state.or.us.

Forms

The Department of Revenue has the authority to pre-scribe forms to carry out Local Budget Law (ORS294.495) or any other law authorizing the imposition ofproperty taxes. The department has developed budgetand publication forms that comply with the law. Localgovernments must use these forms or use the same for-mats for the forms they produce. In addition, schooldistricts, community colleges, and hospitals have spe-cific requirements for preparing the estimate of expen-ditures (ORS 294.356).

Each year a packet of current tax certification forms issent to the budget officer of every local government onthe Department of Revenue mailing list. It is importantthat local officials use the current tax certificationforms. Tax certification forms are revised annually. Out-dated forms should be destroyed. The local governmentshould make sure that the person responsible for pre-paring the budget receives all the current forms. Each

local government is responsible for keeping the Depart-ment of Revenue updated on name and addresschanges.

Budget detail forms are available from the Departmentof Revenue on request.

The most current version of the Notice of PropertyTax... (Forms LB-50, UR-50, and ED-50), provided bythe department must be used by all local governmentsimposing a property tax.

Summary

The Department of Revenue is responsible for interpret-ing and administering Local Budget Law and laws re-lated to the imposition of property tax. Any localgovernment with questions about these laws and theirrequirements should contact the Department of Rev-enue at 503-945-8293 for help. These laws are complexand ever-changing. It is important that local govern-ments stay informed of law changes and requirements.

Secretary of State Audits Division

All Oregon local governments are subject to the Munici-pal Audit Law, ORS 297.405 to 297.555. The law requiresan annual audit of the financial statements of countiesand school districts.

A local government, other than a county or school dis-trict, with combined revenues and expenditures of lessthan $150,000, and whose chief fiscal officer is bondedfor the total amount of money received during the yearmay file unaudited financial statements with the Sec-retary of State within 90 days after its fiscal year ends.

Forms used to file unaudited financial statements areavailable at no charge from the Audits Division of theSecretary of State.

A local government, other than a county or school dis-trict, with combined revenues and expenditures ofmore than $150,000 but less than $500,000, and whosefinancial statements have been reviewed by a licensedmunicipal auditor may file “review reports” with theSecretary of State within 180 days after its fiscal or cal-endar year ends.

A local government, including counties and school dis-tricts, that must have its financial statements reviewedor audited, must contract with an accountant licensedas a municipal auditor by the Oregon Board of Accoun-tancy to do the review or audit. The Board of Accoun-tancy maintains a list of licensed municipal auditors.Write to the Board of Accountancy for a copy of this list-ing. Its address is 3218 Pringle Road SE, Suite 110, Sa-lem OR 97302-6307.

Chapter 1—The Budget Process: Who’s Involved?

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Audits and reviews must be made as directed by admin-istrative rules adopted by the Secretary of State. The rulesreferring to reviews are known as “Minimum Standardsfor Reviews of Oregon Municipal Corporations.” Theserules prescribe the financial statements that must be in-cluded in audit or review reports, the minimum proce-dures that must be followed, and the standards that mustbe followed in an audit or review. Copies of these rulesmay be obtained from the Secretary of State, Division ofAudits, 255 Capitol Street NE, Suite 500, Salem OR 97310.

Copies of all financial statements, whether unaudited,reviewed, or audited, must be filed with the Secretaryof State. They are public records available for inspectionby anyone who is interested. Copies of these reportsmay be obtained at a small charge.

A filing fee must accompany all reports filed with theSecretary of State. The amount of the fee is set by law.It is determined by the amount of expenditures of themunicipal corporation. The Division of Audits uses thefiling fee to administer the Municipal Audit Law. TheDivision of Audits offers technical help in accountingand financial reporting. Address written inquiries to theSecretary of State, Division of Audits, 255 Capitol StreetNE, Suite 500, Salem OR 97310.

Tax Supervising and Conservation commissions

Tax supervising and conservation commissions super-vise local government budgeting and taxing activities.They are established under ORS 294.610, and are re-quired in counties over 500,000 population. Currently,only Multnomah County has such a commission.

The commission is directed by five commissioners ap-pointed by the governor for four-year terms. They servewithout compensation. The commission appoints ad-ministrative employees, and the attorney general servesas legal counsel. Operating expenses are limited by stat-ute and are allocated through the county’s general fund.

The commission’s functions are:

1. To encourage providing enough public funds to op-erate local governments efficiently.

2. To oversee compliance with laws governing localbudgets, taxes, and public debt.

3. To schedule public hearings where citizens may ex-press views on financial plans and taxes.

4. To publish for voters, taxpayers, and investors anannual comprehensive report of budgets and otherfinancial information, and to maintain permanentrecords of indebtedness of all municipal corpora-tions in the county.

The commission reviews and certifies budgets from allunits within its jurisdiction. Annual, biennial, and

supplemental budgets are reviewed: (1) for compliancewith local finance laws, (2) to examine program content,(3) to judge whether estimates are reasonable, and (4) tocoordinate financial planning among the various localgovernments. The commission must certify all budgetsbefore adoption by the local governing bodies.

The commission must also conduct hearings on bud-gets, local option taxes and bond proposals. These pro-posals must be discussed with governing bodies. It hasauthority to inquire into the management, accounts,and systems used by local governments. It may call ajoint meeting of taxing bodies to discuss financial plan-ning and cooperative ventures. The commission stressescontinuing consultation with local officials to improvefinancial management systems.

County Assessor’s Duties

The county assessor is responsible for determining thevalue of the real and personal property in the county(ORS 308.232). The assessor is also responsible for ap-plying any exemptions or special assessments that areallowed by law, such as for farmland.

By July 15, the assessor receives local government taxcertification and categorization forms. The assessor maygrant a government an extension of time to file its taxand category notice if requested in writing. This is notan extension of time to adopt a budget. The extensioncannot extend beyond October 1.

The assessor is responsible for checking taxes to makesure they are legal. The assessor uses tax amounts cer-tified by the district for exempt bonds and fixed-dollarlocal option levies to calculate tax rates for these levies(ORS 310.090). A tax rate is figured by dividing the levyamount by the assessed value of the district.

The assessor is responsible for extending taxes to eachtaxable property within the county. The calculated taxrates and the district’s permanent rate limit for opera-tions are applied to each property served by the district.If the amount of tax to be collected from a property ina category is more than the limits set in the constitution,the tax is reduced. Local option taxes are reduced first.If reducing the local option tax amount lowers the taxesto the limit for the category no further tax reduction isdone. However, if reducing the local option taxes tozero does not reach the limit in a category, then theother tax amounts are reduced proportionately.

After calculating the taxes to be imposed on all taxableproperty in the county, the assessor certifies the assess-ment and tax roll to the county clerk. The clerk issues awarrant to collect the taxes. The assessment and tax rollis then turned over to the tax collector.

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County Tax Collector’s Duties

The county tax collector is responsible for collection ofproperty taxes. The tax collector issues the property taxstatements and receives the payments. If taxpayers failto pay on time, the collector computes the delinquentinterest they owe. After taxes have been delinquent forfour years, the tax collector begins foreclosure proceed-ings on the property.

The tax collector prepares a tax percentage distributionschedule (ORS 311.390) from the information providedby the assessor. The schedule is prepared from theamount of tax to be imposed for each local governmentafter the constitutional limits are applied. The distribu-tion schedule is given to the county treasurer.

County Treasurer’s Duties

The treasurer distributes the tax money and the inter-est earned on it to the districts using the percentage dis-tribution schedule (ORS 311.390). When taxes are paid,all districts will receive a proportionate share. All dis-tricts also share the loss when taxes are not paid or re-funds are made.

When disbursing tax moneys, the treasurer sends eachdistrict a statement showing the amount of taxes beingdistributed. The statement is broken down to show theamount of taxes collected for the current year and eachprevious year. Percentage schedules differ from year toyear so all distributions must be made according to theschedule for the year to which the tax applies.

A local government may designate the county treasureras the paying agent for its bonded debt (ORS 288.570).If it does, then the local government must furnish a copyof its budget and audit report to the county treasurer.

Any tax collected for the local government to paybonded debt is then transferred to the treasurer. The taxrevenue is placed in a special account for paying prin-cipal and interest on the bonds. Interest earned in theaccount through investments is credited to the account.

The treasurer then must send financial statements onthe bond account to the local government. If the accountis short of funds to make payments, the local govern-ment must transfer the needed funds to the treasurerto make up the shortfall.

County Clerk’s Duties

The county clerk is the official keeper of all public recordsfor the county. The county clerk also is the chief electionsofficial of the county. In this capacity, the clerk’s office mustcheck ballot measures for timeliness and word count.

The Department of Revenue can provide review of ballotmeasure wording to help ensure ballots follow electionand tax laws. The district has the final responsibility forwriting the ballot question.

The names, telephone numbers, and addresses ofcounty officials for most Oregon counties can be foundthrough the individual county Web sites. A link to thosecounties that have Web sites can be found atwww.state.or.us/local.

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General requirements affecting special districts (all lo-cal governments except cities, counties and educationdistricts) are found in Chapter 198 of the Oregon Re-vised Statutes. Specific requirements for each type ofspecial district are found in the different enabling stat-utes. Most special districts and corresponding enablingstatutes are listed in ORS 198.010. Additional districtsare defined in ORS 198.710. See Appendix C for a list-ing of local government taxing powers and limitations.

ORS Chapter 198 provides requirements for formationof new special districts, dissolution procedures, andboundary changes resulting from annexations, with-drawal of property, mergers, and consolidations (ORS198.705 to 198.955). The definitions for each of theseterms are provided in ORS 198.705.

The responsibility for entering documents for formationand changes of organization is outlined in ORS 198.780.This section also requires that copies of the documentsmust be filed with the Department of Revenue, the Secre-tary of State, and the clerk and assessor of each county inwhich any district affected by the document is located.Any error in the final documents requires a corrected or-der or resolution. The corrected or amended documentsare filed with the same organizations as the original.

Counties should look in ORS Chapter 202 for require-ments on boundary changes, formations, and dissolu-tions. Counties under the jurisdiction of localgovernment boundary commissions find their informa-tion in ORS Chapter 199.

Boundary changes, mergers, and consolidation proceduresfor cities are in Chapter 222 of the Oregon Revised Statutes.

School districts can find information on boundary changesand mergers in Chapter 330 of the Oregon Revised Statutes.

The Department of Revenue must approve for taxationpurposes all taxing district boundary changes as pro-vided by ORS 308.225. To be eligible for the tax roll inthe following fiscal year, a local government seeking ap-proval for a boundary change must file final descrip-tions and maps with the department by March 31. If alocal government fails to file for approval by the dead-line, the county assessor cannot reflect the boundarychanges on the tax roll for the following fiscal year. Thismeans that no taxes can be collected from the new ter-ritory until the following fiscal year.

Maps and descriptions need to be filed by March 31 evenif the boundary change will be effective between April 1and June 30. These are called “proposed boundarychanges.” If the map and description are approved and thechange becomes final on or before June 30, the assessorwill be able to show the changes on the upcoming tax roll.

To meet all the requirements, a new district or a districtwith a major boundary change should check with thecounty assessor and the Department of Revenue’s Car-tographic Unit well before March 31. This filing is in ad-dition to the requirements in ORS 198.780.

A good source of information on this subject is theDepartment of Revenue publication Boundary ChangeInformation, 150-504-405.

Chapter 2—Formation, Dissolution,and Boundary Changes

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Exceptions to Local Budget Law

Most local governments in Oregon must prepare andadopt an annual budget. There are a few exceptions.The following districts are either totally or partiallyexempted from Local Budget Law requirements(ORS 294.316):

1. Diking districts organized under Chapter 551.

2. District improvement companies organized underORS 554.

3. Drainage districts organized under ORS 547.

4. Export trading corporations organized underORS 777.755 to 777.800.

5. Highway lighting districts organized underORS 372.

6. Hospital financing authorities organized underORS 441.525 to 441.595.

7. Housing authorities organized under ORS Chapter456 that are not carrying out urban renewal activi-ties using tax increment financing underORS 457.440 during the ensuing year.

8. Irrigation districts organized under ORS 545.

9. Municipal public utilities operating under separateboards or commissions, authorized under ORSChapter 225 and city charters, and people’s utilitydistricts organized under ORS Chapter 261, both op-erating without ad valorem tax support during theensuing year.

10. Organizations formed under the provisions ofORS 190.003 to 190.110. These organizations, re-ferred to as “councils of governments,” are subjectto separate budget requirements under ORS 294.900to 294.930.

11. Road districts organized under ORS 371.Note: Road districts that impose a property taxmust submit tax certification documents. Countyroad districts organized under ORS 371.097 are sub-ject to local budget law.

12. Soil and water conservation districts organized un-der ORS Chapter 568 that will not impose an advalorem tax during the ensuing year.

13. Water control districts, organized under ORS 553,that will not impose taxes during the ensuing year.

14. Health districts organized under ORS 440.315 to440.410. Health districts must adopt an annual bud-get; their budget processes are outlined in ORSChapter 440 (2001 revision).

In addition to the local governments listed, a newlyformed local government is not required to prepare abudget under Local Budget Law during the first fiscalyear it is formed. If a local government is formed be-tween March 1 and June 30, it does not have to preparea budget for the upcoming fiscal year [ORS 294.326(11)].

Urban Renewal Agencies

Urban renewal agencies are subject to the Local Bud-get Law and must complete the process separately fromthe parent municipality (county or city).

Purpose of Local Budget Law

Budgeting is not simply something a local governmentdoes once a year. It is a continuous process taking 12months to complete a cycle. The budgeting process hasfive parts. The budget is: 1) prepared, 2) approved, 3)adopted, 4) executed, and 5) reviewed by audit. Thebudget must be prepared far enough in advance sothat it can be adopted before June 30 of the currentfiscal year. After adopting the budget, the governingbody makes the necessary appropriations and certifiesthe tax to be imposed to the county assessor.

Local governments that aren’t subject to Local BudgetLaw may be subject to other statutory and constitu-tional limits. They may choose to follow the local bud-get process in preparing their budgets.

Oregon’s Local Budget Law has two important objectives:

• It establishes standard procedures for preparing, pre-senting, and administering the budget, and

• It provides for citizen involvement in preparing thebudget and public exposure of the budget before itsformal adoption.

To give the public ample opportunity to participate inthe budgeting process, Local Budget Law requires thata budget officer be appointed and a budget committeebe formed. The budget officer draws together necessaryinformation and prepares the proposed budget. Thebudget committee then reviews and may revise the pro-posed budget before it is formally approved. Noticesare published, budgets are made available for review,and public meetings are held. These requirements en-courage public participation in budget-making. Theyalso give public exposure to budgeted programs andfiscal policies before the governing body of a local gov-ernment adopts the budget.

Citizen involvement in the budget cycle varies from onecommunity to another. It is up to each local governmentto prepare a budget that clearly outlines its fiscal poli-cies and is satisfactory to the patrons of the district. If a

Chapter 3—The Budget Process: An Outline

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budget is clear and concise, taxpayers have a better un-derstanding of what services their tax dollars are buy-ing. Local governments may also find citizen inputinformative and rewarding.

To provide an overview of the budget cycle, the majorsteps of the budgeting process are outlined below. AnOregon Revised Statute outline of the budget processis in Appendix B of this manual.

Outline of the Budget Process

1. Budget Officer Appointed (ORS 294.331).

Each local government must have a budget officer, ei-ther appointed by the governing body or designatedby the local government’s charter. The budget officeris under the supervision of either the executive officeror the governing body.

2. Proposed Budget Prepared (ORS 294.331).

The budget officer is responsible for preparing orsupervising preparation of the proposed budget topresent to the budget committee.

3. Budget Officer Publishes Notice (ORS 294.401).

The budget officer publishes a “Notice of Budget Com-mittee Meeting” after the proposed budget is pre-pared. The notice may contain the dates, times, andplaces of several meetings, if the budget officer antici-pates that more than one meeting will be needed.

If the notice is published in a newspaper of generalcirculation, it must be published at least twice, fiveto 30 days before the scheduled budget committeemeeting date. The publications must be separatedby at least five days. If notice is hand–delivered ormailed, only one notice is required not later than 10days prior to the meeting.

4. Budget Committee Meets (ORS 294.401).

The budget officer may make the proposed budgetavailable to each member of the budget committeeat any time before the meeting. The budget officermay choose to distribute the budget at the meeting,rather than earlier. At the time the budget is madeavailable to the committee, a copy must be filed inthe office of the governing body of the district. Thebudget becomes a public record at this point andmust be made available to anyone who is interestedin viewing it.

The budget message is delivered at the first budgetcommittee meeting for budget deliberations. Thebudget message explains the proposed budget andany significant changes in the local government’sfinancial position. After the initial meeting, the bud-get committee may meet as many times as neededto revise and complete the budget. After the budgetis approved, the budget committee is allowed to

meet for training and advisory reviews throughoutthe year. All meetings are subject to Oregon’s Pub-lic Meetings Law (ORS Chapter 192).

5. Budget Committee Approves Budget(ORS 294.406).

When the budget committee is satisfied with thebudget, including additions to or deletions from theone proposed by the budget officer, it is approved.The budget approved by the committee specifies theamount or rate of ad valorem taxes for each fundreceiving tax revenue. Approval of the budget andof the amount or rate of tax should be by motion andbe recorded in the minutes of the meeting.

6. Budget Summary and Notice of Budget HearingPublished (ORS 294.421).

After the budget is approved, a budget hearing mustbe held by the governing body of the local govern-ment. The governing body must publish a “FinancialSummary and Notice of Budget Hearing” five to 30days before the scheduled hearing. This informationmust either appear in a newspaper of general circu-lation, be mailed or hand delivered. If no newspaperis published in the local government and the total es-timated expenditures in the approved budget do notexceed $50,000, the summary and hearing notice maybe posted for at least 20 days prior to the meeting.

If the local government posts the summary and no-tice, a second notice of budget hearing must bepublished in a newspaper of general circulation,mailed or hand delivered five to 30 days before thescheduled hearing (ORS 294.421). See Chapter 8 formore details on publication requirements.

7. Budget Hearing Held (ORS 294.430).

The budget hearing must be held by the governingbody on the date specified in the public notices. Thepurpose of the hearing is to listen to citizens’ testi-mony on the approved budget. Additional hearingsmay be held. All hearings are open to the public.

8. Budget Adopted, Appropriations Made, TaxesDeclared, and Categorized (ORS 294.435).

By law, the governing body may make changes in theapproved budget before it is adopted. Prior to thebeginning of the fiscal year to which the budget re-lates, the governing body can also make changes tothe adopted budget. However, there are limitations:

a. Taxes may not be increased over the amount ap-proved by the budget committee.

b. Estimated expenditures in a fund cannot be in-creased over the amount approved by the bud-get committee by more than $5,000 or 10 percent,whichever is greater.

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c. Estimated expenditures in a fund in a biennialbudget cannot exceed the amount approved bythe budget committee by more than $10,000 or 10percent, whichever is greater.

These limitations cannot be exceeded without firstpublishing a revised Financial Summary and hold-ing another budget hearing.

After the budget hearing, and after considering rel-evant testimony, the governing body adopts thebudget. It is recommended that the budget shouldnot be formally adopted until the latter part ofJune so last-minute revisions to revenue or expen-diture estimates can be incorporated.

The governing body prepares a resolution or ordi-nance that formally adopts the budget, makes ap-propriations and, if needed, levies and categorizestax. The budget is the basis for making appropria-tions and certifying the taxes. The resolutions or or-dinances adopting the budget and makingappropriations must be adopted no later than June30 [OAR 150-294.435(4)].

9. Taxes Certified (ORS 294.555).

The next step in the budget cycle is to certify thetaxes to the county assessor. Taxes must be certifiedevery year, even if the district operates on a biennialbudget. School districts also submit a copy of thebudget and tax certification forms to their educationservice district office and to the Oregon Departmentof Education.

The documents submitted to the assessor’s office in-clude the following:

• Two copies of the notice of levy and the catego-rization certification (Form LB/ED/UR-50)which contains the statement of the budget com-mittee approved tax amounts and/or tax rates,

• Two copies of the resolution statements thatadopt the budget, make appropriations, and im-pose and categorize taxes, and

• Two copies of any successful tax ballot measures.

10. Post-Adoption.

After the previous nine steps have been completed,changes to the budget are restricted by statute.

• ORS 294.326 provides for authorizing appropria-tions as an exception to the budget process.

• ORS 294.450 governs the transfer of appropria-tions within a fund or from the general fund toanother fund.

• ORS 294.455 provides for the expenditure offunds to repair or replace property that has beendamaged or destroyed. It also allows funds to beexpended because of a civil disturbance or natu-ral disaster.

• ORS 294.460 is concerned with loans from onefund to another.

• ORS 294.480 specifies the conditions under whicha local government must adopt a supplementalbudget.

• ORS 294.483 provides exceptions for certain debtservice expenditures.

For more details, read Chapter 14, Budget ChangesAfter Adoption.

This is an overview of the budget cycle. For more detailedinformation on each stage of the budget cycle, refer to thesection of this manual that is devoted to each specific stage.

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A local government’s budget is a public document. Any-thing connected with the budget is subject to public in-spection. Temper the detail of the budget with commonsense to make the document informative and uncompli-cated. The budget is a guide to the management of thelocal government. It also provides information and en-courages public participation in government.

The type of budget selected by the local governmentis a policy decision to be made by the governingbody. The budget must comply with all the require-ments of Local Budget Law. A budget is a financialplan that includes estimates of expenditures and rev-enues for a single fiscal year. Each local governmentoperates in a fiscal year that begins July 1 and endsJune 30 [ORS 294.311(17)]. For biennial budgets, seeChapter 15.

The budgeting process provides procedures for evalu-ating local government needs and identifying revenuesources to meet those needs. A completed budget pro-vides a justification for imposing ad valorem taxes.

Budget Officer

The budget officer prepares the proposed budget for thecoming fiscal year. As ORS 294.331 states: “The govern-ing body of each municipal corporation shall, unlessotherwise provided by county or city charter, designateone person to serve as budget officer. The budget officer,or the person or department designated by charter andacting as budget officer, shall prepare or supervise thepreparation of the budget document. The budget officershall act under the direction of the executive officer ofthe municipal corporation, or where no executive officerexists, under the direction of the governing body.”

The budget officer does not have to live within theboundaries of the local government, unless required bythe local government’s charter (OF 448-V; 12-26-63).The budget officer cannot be an appointive member ofthe budget committee because appointed members ofthe budget committee cannot be officers, agents, or em-ployees of the local government [ORS 294.336(4)]. (SeeChapter 7 for more details on the budget committee.)

Budget Calendar

Schedule the steps of budget preparation to allow suf-ficient time to complete the entire budget process be-fore June 30 (ORS 294.396). The Department ofEducation provides a suggested budget calendar toguide school districts. Since budget calendars are builtaround mandated requirements, review and revisethem when the laws change.

Schedule the appointment of budget committee mem-

bers on the calendar. Before budget preparation begins,schedule audit review and timely financial reporting.

Base the calendar on the sequence of events that influ-ence budget-making. This allows scheduling meetings,hearings, and publication requirements. Tax electionsneed not fit into a sequence, but a financial plan shouldbe considered before a ballot measure is scheduled. Thesuccess or failure of a local option tax or a bond issuecan determine the direction a governing body will takein planning.

Budget MessageA budget message is prepared annually by the execu-tive officer of the district. If there is no executive officer,the budget message is prepared by the presiding officerof the governing body (ORS 294.391). The budget officermay prepare the message under the direction of theexecutive officer or governing body presiding officer.The extent of the budget message depends upon thesize and complexity of the budget, and any changes thathave been made.

The budget message must:1. Explain the budget document.

2. Include a brief description of the proposed financialpolicies of the for the coming fiscal year.

3. Describe the important features of the budget docu-ment in connection with the financial policies of thelocal government.

4. Explain the reason for changes from the previousyear in appropriation and revenue items.

5. Explain the major changes in financial policy.

Any change in the basis of accounting must beexplained in the budget message for the year in whichthe change is planned [ORS 294.445(2)].

The budget message is delivered to the budget com-mittee at its first meeting to deliberate on and approvethe budget.

Budget DocumentFirst and Second Preceding Year’s Data

Expenditure and resource estimate detail sheets are partof the budget document under ORS 294.376. These de-tailed estimate sheets show the actual expenditures andresources for the two preceding fiscal years for eachfund (ORS 294.376). This requirement provides a two-year record of what actually happened. It compares theearlier actual resources and expenditures with thoseestimated and budgeted for both the current year andthe upcoming fiscal year.

Chapter 4—Proposing the Budget

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The historical data are figures confirmed by audit. Dis-play the audit-confirmed revenues and expendituresin the budget at the same level of detail used for theestimates of the current year and coming fiscal year.

A fund dissolved by the governing body must remaina part of the budget’s historical record for the preced-ing years. If two funds are created from one previouslyexisting fund, separate the historical data so previousresources and expenditures for each fund can be iden-tified. The dissolution or combination of funds can beexplained in the budget message.

Historical data provide a base for estimating the up-coming fiscal year expenditures and resources. They arealso compared to the current year estimates when mak-ing decisions during the budget process.

Current Year Budgeted Resources/Expenditures

On the estimate sheets, also show the estimated expen-ditures and resources adopted for the current fiscal year.These amounts come from the current budget document,but should be updated for any changes authorized bygoverning body resolutions or ordinances, includingsupplemental budgets adopted during the current year.

This requirement gives full disclosure of all budgetedfigures for the current year so comparisons can be madeto estimates shown for the coming fiscal year.

Proposed Resources/Expenditures for UpcomingFiscal Year

For each fund, show the proposed estimated resourcesand expenditures for the upcoming fiscal year. Theseare the estimates that the budget officer makes based onanticipated needs of the local government. The budgetofficers for cities, counties, or other large local govern-ments may work with the department heads to preparethese estimated figures.

All budget forms prescribed by the Department of Rev-enue are designed in compliance with the law. Samplebudget detail forms and explanations are provided laterin Chapter 6. Facsimile versions of the budget detailsheets may be used. Many districts prefer to preparethese forms using computerized spreadsheets.

Public Meeting Law: ORS 192.610 to 192.690

Policy statement (ORS 192.620) states:

“The Oregon form of government requires an in-formed public aware of the deliberations and deci-sions of the governing bodies and the informationupon which such decisions were made. It is the intentof ORS 192.610 to 192.690 that decisions of governingbodies be arrived at openly.”

Follow the Public Meeting Law for all budget meetingswhere deliberations toward a decision are made. The

Attorney General’s Public Records and Meetings Manual isavailable for a fee from the Oregon Department of Jus-tice, 1162 Court Street NE, Salem OR 97310. This manualsummarizes the requirements for regular, special, andemergency meetings, and for executive sessions. A sec-tion is included on the requirements for taking minutesand on enforcement provisions.

Local Budget Law meetings fall within the Public Meet-ing Law. Take a few moments to review these statutes.When a local government needs to schedule budgetcommittee meetings or budget hearings after the spe-cial notice requirements of local budget law have beendone, the Public Meeting Law provides the require-ments for public notice.

Public Inspection of the Budget Document

The statutes clearly explain requirements for providingcopies of the budget document for public inspection.ORS 294.401(8) provides:

“The budget officer shall file a copy of the budgetdocument in the office of the governing body of themunicipal corporation immediately following presen-tation of the budget document to members of thebudget committee under subsection (6) or (7) of thissection. The copy shall become a public record of themunicipal corporation.” (emphasis added)

Every state and local government agency is subject tothe Public Records Law. The basic premise of this lawis stated in ORS 192.420:

“Every person has a right to inspect any public recordof a public body in this state, except as otherwise ex-pressly provided by ORS 192.501 to 192.505.”

Anyone may examine any portion or all of the budgetdocument. While disclosure is the prescribed policy, thepublic records law makes it clear that agencies can“adopt reasonable rules necessary for the protection ofrecords and to prevent interference with the regular dis-charge of duties . . .” ORS 192.430.

ORS 294.401(9) states:

“The governing body shall either provide the meansof duplicating the budget or part thereof . . . , or shallprovide copies of the budget document or partthereof so that a copy of the budget document or partthereof may be readily obtained by any individual in-terested in the affairs of the municipal corporation.”

Copies of the complete budget document must be pro-vided according to ORS 294.416, 294.418 and 294.421.

A local government may charge a reasonable fee forphotocopying the budget document [ORS 192.440(3)and OAR 150-294.401(7)].

A good source of information on this subject is theAttorney General’s Public Records and Meetings Manual.

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Fund, as defined by Oregon Administrative Rule 150-294.352(1)-(A), is a fiscal and accounting entity of self-balancing accounts to record cash and other financialresources, related liabilities, balances and changes, allsegregated for specific, regulated activities and objec-tives.

The use of funds for budgeting is required by state andfederal laws and rules, charters, local government reso-lutions and ordinances. Funds are a principle of goodaccounting.

To establish funds, use the definition listed above. A lo-cal governing body should determine the funds neces-sary for financial operation, then prepare resolutionsauthorizing them. The estimates of expenditures andrevenues for the day-to-day operation of a local govern-ment are shown in the General Fund.

The local governing body may create funds to controlthe use of restricted or dedicated revenues. However,it is recommended that local governments maintainonly those funds required to meet legal and operatingrequirements. Unnecessary funds complicate budgets.

Several statutes which authorize local governments toimpose taxes or to provide special services require thatseparate funds be created. Examples of such funds are:The Bancroft Bond Fund (ORS 223.285), County SchoolFund (ORS 328.005), Bond Proceeds Fund (ORS287.070), Debt Service Fund (ORS 287.006), and ReserveFund (ORS 294.525).

Funds are usually created under the following condi-tions:

• Special fund—required by law or by a contractualagreement. Certain statutes require a fund be createdto administer certain receipts.

• Capital project fund—created to receive and disbursethe proceeds from a bond issue. Bonds are authorizedfor specific purposes. Spending money from a bondissue for other than authorized purposes is illegal, soa separate fund is set up to account for bond pro-ceeds. A capital projects fund is temporary. When theproject for which the bonds were issued is completed,any remaining money must be transferred to the debtservice fund unless otherwise authorized by law.

• Enterprise fund—created for utilities (water andsewer) operated by a local government. A utility ser-vice is generally self-supporting. A separate fundmakes it possible to set up separate accounting dataon the operations of the utility. This information canbe used to set up the service charges for the utility. Itcan also provide better controls and information onthe management of the resources and expenditures.

In some cases, statutes authorizing local option taxes re-quire establishing a separate fund. The general require-ment is that the proceeds of all special purpose taxesmust be used for the specific purpose authorized, andgenerally separate funds are established for them (ORS311.350). The Oregon Constitution, Article IX, section 3,states: “No tax shall be levied except in accordance withlaw. Every law imposing a tax shall state distinctly thepurpose to which the revenue shall be applied.”

Cities operating under home rule charters usually providefor a general fund and several additional special funds. Thenumber and type of such funds depend upon the activi-ties of the local government and how its charter is orga-nized. When cities engage in activities authorized by statelaw, funds should be set up as provided by these statutes.

Major types of funds are used in setting up budget andaccounting records:

General Fund,Special Revenue Fund,Capital Project Fund,Debt Service Fund,Internal Service Fund,Enterprise Fund, andTrust and Agency Fund.

Any of these fund types may be used, depending uponthe complexity and level of activity for each local gov-ernment. The choice of fund structure is a fiscal policydecision of the local government.

General Fund

The purpose of a General Fund is to record financialtransactions relating to all activities for which specifictypes of funds are not required. It is the general operat-ing fund for the local government. Most local govern-ments have a General Fund. Many small localgovernments have only a General Fund.

Special Revenue Fund

Special Revenue Funds should be set up only for spe-cial tax levies and other dedicated revenues when re-quired by statutes, charter provisions, or the termsunder which revenue is dedicated. Try to keep the num-ber of special revenue funds to a minimum.

Capital Project Fund

A Capital Project Fund is used to record all resourcesand expenditures used to finance building or acquisi-tions of capital facilities that are nonrecurring major ex-penditure items. Resources include the proceeds fromthe sale of general obligation bonds or tax revenue from

Chapter 5—Types of Funds

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local option taxes. Also included are any grants, trans-fers from other funds, or other revenues authorized forfinancing capital projects. A separate fund is normallyestablished when a capital project or series of projectsis authorized by the voters. It is dissolved when theproject is completed. Several related projects financedfrom one bond issue may be accounted for in one fundif there are no provisions to the contrary in the autho-rization to sell the bonds.

Establish a Capital Project Fund for the expenditure ofbond sale proceeds. If voter approval is received afterthe regular budget is adopted and bonds are sold dur-ing the fiscal year, a supplemental budget is not re-quired to expend the proceeds [ORS 294.326(5)].However, it is good fiscal practice for the governingbody to establish a special fund to account for the pro-ceeds and adopt a resolution or ordinance authorizingthe expenditure.

If the bond sale receives voter approval prior to theadoption of the regular budget, then the expenditure ofthe proceeds must be included in the regular budget.Also, if the bonds were sold in the preceding year andthe proceeds carried forward to the current year, thenthe expenditure of the proceeds must be budgeted inthe regular budget.

Bond proceeds may be used to pay attorneys’ fees andother expenses related to the preparation, authoriza-tion, issuance and sale of the bonds (ORS 287.012).These expenses cannot be paid from the Debt ServiceFund; that fund can only be used to pay bond princi-pal and interest.

Debt Service Fund

A Debt Service Fund is a fund to account for the pay-ment of principal and interest on all general obligationlong-term debt, including that payable exclusivelyfrom revenue-producing enterprises [OAR 150-294.352(1)-(A)]. There may be several bond issues ac-counted for in one debt service fund, but you shouldestablish separate funds for general obligation andrevenue bonds. Set up separate accounts for each bondissue. Transactions to record the redemption of exist-ing bonds with proceeds of refunding bonds are alsorecorded in debt service funds.

Resources dedicated to repay bonds cannot be divertedor used for any other purpose [ORS 287.006(3), 287.072,328.260(3), etc.]. Transfers from a Debt Service Fund arenot allowed in most cases. There are two conditionsunder which a transfer may be made:

1. Transfer is lawful from this fund to repay aninterfund loan.

2. If a surplus remains after all interest and principalare paid, the fund may be dissolved and the balance

transferred to any fund originally designated by thegoverning body, or as included in the bond contract(ORS 294.475).

Oregon Revised Statute Chapters 287 and 288 relategenerally to borrowing and bonding of counties, cities,and other local governments. Refer to the statute underwhich your local government was formed for more spe-cific bonding information. Appendix C lists local gov-ernments’ taxing powers and limitations.

Most Oregon Revised Statute chapters under which lo-cal governments are formed allow for the issuance ofgeneral obligation bonds after voter approval. They alsoset limits on the amount of indebtedness a local govern-ment may incur, and provide for payment of bond prin-ciple and interest through the levy of taxes.

Disclosure concerning the issuance of municipal bondsis very important. It requires complete and accurate fi-nancial and economic information from all issuers. TheOregon Municipal Debt Advisory Commission was es-tablished to help local governments deal with the dis-closure requirements.

The commission consists of seven members: the statetreasurer; representatives from cities, counties, schooldistricts, and special districts; and two public members.Staffing of the commission is provided by the DebtManagement Division of the Oregon State Treasury.

The Debt Management Division publishes the OregonBond Manual which offers advice to issuers who wishto prepare for their own bond sale. The manual is avail-able for a fee from Debt Management Division, 159 StateCapitol, Salem OR 97310.

Advance Refunding Bonds—Budget Requirements

Public bodies, which includes local governments, havethe authority to refund outstanding bond issues beforetheir call dates. This is known as advance refunding(ORS 288.605 to 288.695).

Advance refunding means selling new bonds beforeany right to call or otherwise retire the old bond issuearises. The proceeds of the advance refunding bond saleare used to buy low-risk government securities to placein escrow to secure the old bonds. The public body isprohibited from levying a tax to pay on the old bondsafter the amount owed on the old bonds is secured byinvesting the advance refunding bond proceeds, plusother funds set aside to pay the old bonds. If a tax couldbe levied to pay the old bonds, a tax may be levied topay the principal and interest on the advance refund-ing bonds (ORS 288.665).

Debt service on the new bonds must be budgeted, be-cause it will be paid by a tax levy or from the advancerefunding bond proceeds and interest. The advance re-fund bond proceeds may also be used to pay adminis-

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trative costs, expenses, or fees in connection with theadvance refunding transaction [ORS 288.645(2)].

Revenues irrevocably placed in escrow for the purposeof defeasing and paying the bonds, or revenues re-ceived as a result of prepayments or other unforeseencircumstances used to redeem bonds or other obliga-tions are not required to be budgeted [ORS 294.326(6)].

Bancroft Bonds

The Bancroft Bonding Act (ORS 223.205 and 223.210 to223.295) is a financing method that may be used by cit-ies, counties, and certain special districts with specificstatutory bonding authority.

The purpose of the Bancroft Bonding Act is to providea way for property owners to pay for improvements,such as streets, water supply systems, storm sewers,etc., in equal annual installments spread out over a pe-riod of years.

A “Bancroft Bond Redemption Fund” is a type of debtservice fund required to record the debt payments forprincipal and interest.

Internal Service Fund

An Internal Service Fund finances and accounts for ser-vices furnished by one department or agency to anotherdepartment or agency of the local government.Amounts expended from the fund are restored fromeither operating earnings or as operating expendituresfrom other funds to the internal service fund. The origi-nal working capital is then kept intact.

Enterprise Fund

An Enterprise Fund is a fund established to finance andaccount for acquiring, operating, and maintaining facili-ties and services which are self-supporting from usercharges and fees. Examples of Enterprise Funds are forwater, gas and electrical utilities, swimming pools, air-ports, parking garages, and transit systems. Separatefunds should be established for each utility or enterprise.

Trust and Agency Fund

Assets are sometimes held, or revenue received, by localgovernments in a fiduciary capacity to be used for a cer-tain specified purpose. For example, investments or se-curities may be given to the local government withprovisions that the income be used to aid the library orpark system. In other cases, the municipality may chargea certain amount for perpetual repair of cemetery lots,with such amount to be invested and only the earningsused for the designated purposes. These revenues and ex-penditures are accounted for in a Trust and Agency Fund.Most Trust and Agency Funds are not exempt from local

budget law. Expenditures can be made from these fundsonly if the funds are included in the adopted budget andappropriations.

Reserve Fund

A local government may set up a Reserve Fund, a typeof special revenue fund, to accumulate money for financ-ing the cost of any service, project, property or equipmentthat the district can legally perform or acquire (ORS294.525). Under Local Budget Law, a Reserve Fund is theappropriate way to save money from year to year.

Any local government by resolution or ordinance canset up a Reserve Fund. The governing body may specifya time limit in which money can be added to the fund.At least every ten years after the establishment of a re-serve fund, the governing body reviews the fund todecide if it should be continued or abolished. Any un-expended or unobligated balance left in the fund afterit is abolished can be transferred to the General Fundor any other fund designated by the governing body.

Money in a Reserve Fund can only be used for the pur-pose for which the fund was established. Expendituresare made directly from a Reserve Fund.

School districts have special statutory authority to set upreserve funds for the purchase of automotive equipment.Schools should refer to ORS 328.470 for more details.

Separate Funds for Local Option Taxes

Establish a separate fund for each local option tax pro-viding money for a specific purpose. The money re-ceived must be retained and spent only for the purposefor which the tax was approved. The requirements inthis law provide fiscal integrity for the local option taxto carry out the purpose named in the ballot measure.

If expenditures from a specific purpose local option taxfund are no longer needed, the governing body may abol-ish the fund and transfer the balance and any future pro-ceeds to the General Fund or any other fund designatedby the governing body. The tax imposed for the specialfund then must be discontinued when it is abolished.

During the period of a voter-approved local option tax,impose only the amount of tax necessary to meet re-quirements and balance the fund each year. Althougha local government has the power to impose a tax, thebudget must always justify the tax (ORS 294.326).

The authorized period for a local option tax is consecu-tive years. If it is not levied for one of those years, theauthority to impose is not extended. It is assumed thatif no tax is certified, the local government intended toimpose $00.00 for that year. Local governments can al-ways impose less than their taxing authority.

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Basis of Accounting

Local governments (municipal corporations) are re-quired by ORS 294.445 to maintain accounting recordsby fund using a cash, modified accrual, or accrual ba-sis of accounting. The selection of the basis of account-ing is up to each local government.

Any change in the basis of accounting must be ex-plained in the budget message for the year in which thechange is planned. You must explain the reasons for thechange and its effect on the fiscal operations of the dis-trict. Once a new basis of accounting is adopted, thatbasis is used in the fiscal year for which the budget wasprepared [ORS 294.445(2)].

Estimating Resources

Each local government must estimate and budget all ofits anticipated resources for the upcoming fiscal year[ORS 294.361(1)]. The budget must be constructed sothat the total resources equal the total requirements foreach fund [OAR 150-294.352(1)-(B)]. For biennial bud-gets, see Chapter 15.

Budget resources include but are not limited to: the cashbalance, cash equivalents, and investments or net work-ing capital that will be carried forward from the previ-ous fiscal year; prior–year taxes; current–year taxes;fees; fines; interest on deposits or securities of any kind;endowments; annuities; sales of property or other as-sets; grants; interfund transfers; and revenues from anyand all other sources [ORS 294.361(2)].

Budget resources do not include moneys accumulatedunder an approved employee deferred compensation planand the interest earned on such moneys, the estimate forthe ensuing year of discounts under ORS 311.505, or theestimates of uncollectible amounts of taxes, fees, or chargesfor the ensuing year [ORS 294.361(3)].

Beginning Cash Estimates

“Each municipal corporation shall estimate in detail itsbudget resources for the ensuing year by funds andsources” [ORS 294.361(1)]. Generally, an “estimate” is:defined as a rough calculation or an opinion formedfrom imperfect data. All resources should be basedupon a “good faith” estimate (OF 1439-V; 6-15-71).Estimate the beginning cash balance as follows:

1. Establish the cash balance on hand at the time thebudget is prepared.

2. To this amount, add the amount of revenue esti-mated to be received from all sources to the end ofthe current fiscal year.

3. From the sum of numbers 1 and 2, subtract a reason-able estimate of expenditures for the rest of the fis-cal year.

The remainder will be the estimate of the beginningcash balance to be used in preparing the budget for thenext fiscal year.

Previously Levied Taxes

Every local government that imposes a property tax re-ceives revenue from taxes that were imposed in previousyears from the collection of delinquent taxes. These prioryears’ taxes are treated as nontax resources in the budget.

The amount of prior years’ taxes can be estimated us-ing history. The county tax collector can also help thedistrict with estimating the amount of prior years’ taxes.

The money collected from the taxes of all districts isplaced in the unsegregated tax collection account. Moneyis disbursed from this account using a percentage distri-bution schedule (ORS 311.390). This schedule shows thepercent that each local government’s taxes imposed rep-resents of the total of all taxes imposed in the county.

At the same time current taxes are being collected, de-linquent taxes from prior years are also being collectedand placed in the unsegregated tax collection account.Prior year’s taxes are disbursed by the county treasurerusing the percentage distribution schedule from theyear for which the taxes are paid.

When county treasurers disburse tax moneys to localgovernments, most provide a statement to accompanyeach payment. The statement breaks down the paymentto show the amount collected for the current year andthe respective amounts for each prior year. Thetreasurer’s statement provides accountability for taxesand a clear audit trail for the county records. Each lo-cal government should have the information necessaryto make full disclosure of the correct receipt of tax mon-eys and disbursement to the funds that levied the tax.

Local governments should account for property tax rev-enues by allocating the moneys on a consistent percent-age basis to each fund that imposed a tax based on theamount of tax imposed by the assessor for each fund (ORS310.170). Proper accounting methods and schedules of taxcollections provide accurate historical information to sup-port resource estimates for the following fiscal year.

Grants

Grants for general purposes must be budgeted as a re-source if the district is aware of the grant before June30. Specific purpose grants must also be budgeted as a

Chapter 6—The Budget Document

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resource if they are known or anticipated during theregular budget process.

If an unanticipated general purpose grant is receivedduring the fiscal year, a supplemental budget must beprepared in order to increase appropriations to spendthe grant money.

Specific purpose grants may be treated in a differentmanner. If an unanticipated specific purpose grant is re-ceived and will be spent during the fiscal year, no supple-mental budget is required. The governing body mayspend the grant money after enacting an ordinance orresolution authorizing the expenditure [ORS 294.326(3)].

Budget Transfers

The budget may include the transfer of revenue be-tween funds. Money received in a fund through a trans-fer from another fund must be budgeted as a resourceto the receiving fund. The originating fund budgets thetransfer as a requirement. This way the total budgetstays in balance (ORS 294.361).

Bond Proceeds

When voter approval to issue bonds is received duringthe fiscal year and the bond proceeds will be expendedduring that same fiscal year, the proceeds do not haveto be budgeted. It is recommended that a fund for thebond proceeds be established and a resolution appro-priating the proceeds be prepared.

If the bonds are approved in one fiscal year and the pro-ceeds are to be spent in the upcoming fiscal year, theproceeds must be budgeted in the regular budget. Anyproceeds that are to be carried forward from one fiscalyear to the next must also be included in the regularbudget [ORS 294.326(5)].

Insurance Proceeds

Funds received to repair or replace property, such asinsurance proceeds, do not have to be budgeted. Tospend the money, the governing body may either en-act an ordinance or resolution (ORS 294.455) or enact asupplemental budget [ORS 294.480(1)(e)].

Interfund Loans

During the fiscal year the governing body may loanmoney from one fund to another to cover a revenueshortfall. The loan must be authorized through an or-dinance or resolution. A supplemental budget is notrequired.

A loan cannot be made from a debt service fund ex-cept for loans from a debt service reserve fund cre-ated to provide additional covenanted security foroutstanding bonds or other borrowing obligations if

the amount in the fund exceeds the amountcovenanted and the aggregate outstanding amountof such loans does not exceed the excess amount inthe fund (ORS 294.460).

If the loan is an operating loan and it is not repaid inthe fiscal year in which it was made, the repaymentmust be budgeted in the upcoming fiscal year. Operat-ing loans must be repaid no later than the fiscal year fol-lowing the year in which they were made. If the loanis a capital loan, it must be repaid in full over a termnot to exceed five years. The repayment must be bud-geted according to a schedule and at a rate of interestset forth at the time the loan is made (ORS 294.460). Thefund that received the loan budgets the repayment asa requirement. The fund that gave the loan budgets therepayment as a resource.

A capital loan is any interfund loan, or portion thereof,made for the purpose of financing the design, acquisi-tion, construction, installation, or improvement of realor personal property and not for the purpose of payingoperating expenses.

An operating loan is any interfund loan, or portionthereof, that is not a capital loan, and that is made forthe purpose of paying operating expenses.

Tax Anticipation Notes

Local governments are authorized to contract indebt-edness by issuing short-term promissory notes for thepurposes of meeting current expenses, retiring out-standing bonds, or paying the interest on the bonds(ORS 287.442, ORS 328.565, and ORS 341.715).

Tax anticipation notes are a form of short-term borrow-ing. They are issued in anticipation of the collection ofproperty taxes. The anticipated loan proceeds and therelated principal repayments within a fiscal year are notbudgeted as resources or expenditures. However, theymust be reported in narrative form or by footnotedschedules to the adopted budget (ORS 294.443).

The interest due on the principal must be budgeted asan anticipated expenditure. Also, any interest antici-pated to be earned from the principal must be budgetedas a resource.

Refunded Money

When a district returns merchandise that has been paidfor, the money refunded for the merchandise does nothave to be budgeted. The governing body can spendthis refunded money after holding a public hearing andadopting a resolution or ordinance to appropriate themoney [ORS 294.326(10)].

Emergency Funds—Schools or Community Colleges

If the governing body of any school district or commu-nity college district declares that an emergency exists, re-

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quiring a greater expenditure of public money, the lawallows for spending over the amount appropriated in thebudget. These districts are allowed to make such specificexpenditures of federal and state funds (ORS 294.440).

Budgeting a Deficit Resource

Do not budget a negative resource [OAR 150-294.361(1)-(B)]. A deficit line item entry distorts the actual total of rev-enues. Budget only the amount of revenue estimated toactually be received by the fund. If there is an anticipateddeficit in a fund, it is treated as a requirement of that fund.

If actual resources fall short of the amount estimated,expenditures cannot be made in excess of the availablerevenues. Deficit fund balances are a violation of LocalBudget Law.

Classifying and Estimating Expenditures

Each local government must prepare estimates of ex-penditures and budget requirements for the upcomingfiscal year. Governments that have the authority to im-pose ad valorem property taxes must use a fiscal yearthat runs from July 1 to June 30 [ORS 294.311(13)].

Local Budget Law requires that expenditures be shownin the budget in certain ways. The budget is brokendown into funds which are discussed in Chapter 5. Theexpenditures for each fund must be identified in one oftwo ways—organizational unit or program—dependingon how the district is structured.

Subdividing a fund into organizational units or pro-grams makes the budget more understandable.

Organizational Unit

Some local governments are structured in organiza-tional units. An organizational unit is an administrativesubdivision of the local government which is respon-sible for specific services, functions or activities. Theseare usually identified as departments, divisions, offices,etc. [ORS 294.311(28)]. For example, a city may be struc-tured into organizational units such as: Police Depart-ment, Public Works Department, Office of the CityRecorder, etc.

School districts, ESDs, and community colleges do notuse organizational units when preparing expenditureestimates. They must prepare expenditure estimatesaccording to the classification of accounts prescribedby rules of the State Board of Education. Program Bud-geting and Accounting Manual for School Districts, pub-lished by the Department of Education details all therequirements of the board’s rules for school districts[ORS 294.356(1)].

Hospitals may not use organizational units when pre-paring expenditure estimates, making appropriations orpublishing the budget summary [ORS 294.356(2)].

Program

Many districts are structured by program. A program isa group of related activities aimed at accomplishing amajor service or function [ORS 294.311(30)]. Programscould include services and functions such as: fire control,sewage disposal, instruction, road maintenance, etc.Most special districts are formed to provide one or twomajor services. These districts have a program structure.

Whether a local government is structured by organiza-tional units or programs, the budget must contain thefollowing:

1. The estimated expenditures of the General Fundand all special revenue funds arranged by organi-zational unit or program and activity. They must becategorized by personal services, materials and ser-vices, capital outlay, etc. Spending estimates must bedetailed under separate object classifications (ORS294.352).

School districts and community colleges are re-quired to further detail expenditure estimates byobject within object classification [ORS 294.352(4)].Information on this breakdown can be found in theProgram Budgeting and Accounting Manual for SchoolDistricts.

2. Estimated expenditures for special payments, operat-ing expenses and general capital outlay which cannotbe allocated by organizational unit or program.

3. Estimated expenditures for personal services. Per-sonal services includes salaries, fringe benefits, andmiscellaneous costs associated with salary expendi-tures, such as overtime. Federal program employ-ees and part-time employees are included whenfiguring personal services.

In addition, detail must be provided on the salaryfor each officer and employee, except hourly wageand part-time employees. Employees of like classi-fication and salary range may be listed by the num-ber of those employees, the limits of each salaryrange and the amount of their combined salaries[ORS 294.352(5)].

4. A separate schedule detailing the salaries of personswho perform services for two or more organiza-tional units, programs, or activities (Form LB-40).For instance, one of the county clerical staff mayprovide services to the administration office and thepolice department.

5. Estimated expenditures for materials and services.These may include a separate estimate for: (a) con-tractual services, (b) materials (such as office sup-plies), and (c) other charges (such as education ortravel). Estimates should be detailed and itemizedto disclose all proposed expenditures.

22

6. Estimated expenditures for capital outlay. Capitaloutlay is defined, as “Expenditures that result in theacquisition of or addition to fixed assets.” Fixed as-sets are defined as “Assets of a long-term characterthat are intended to continue to be held or used,such as land, buildings, machinery, furniture, andother equipment.” (Source: Leon E. Hay, Accountingfor Governmental and Nonprofit Entities, seventh edi-tion, Richard D. Irwin, Inc., 1985.)

7. Estimated expenditures for repaying bond principaland interest for each bond issue. Bond issues shouldbe separately shown with separate estimates forprincipal and interest payments [ORS 294.352(7)].Each bond issue should be identified by both the is-sue date and the exact payment date. Any unappro-priated ending fund balance associated with thebond issue must be itemized by the payment datesand amount, and separately identified.

In addition to these items, the budget may contain thefollowing budget requirements:

Unappropriated Ending Fund Balance

A local government may include an estimate for unappro-priated ending fund balance in its budget. The purpose ofthis estimate is to provide the local government with acash or working capital balance with which to begin thefollowing fiscal year (ORS 294.371 and OAR 150-294.371).

When calculating the amount of the unappropriatedending fund balance, determine the cash requirementsof the local government between July 1 and the timesufficient revenues become available to meet cash flowneeds. The maximum amount that may be budgeted inan unappropriated ending fund balance is an estimateof the difference between the cash requirements andthe other resources available. The unappropriated end-ing fund balance is not included in the resolution mak-ing appropriations.

No expenditures can be made from an unappropriatedending fund balance during the year in which it is bud-geted, except in an emergency situation created by civildisturbance or natural disaster (ORS 294.455). If anemergency develops and the revenue in the unappro-priated ending fund balance is needed, it may be ap-propriated with a resolution or ordinance or through asupplemental budget.

Toward the end of the fiscal year in which an unappro-priated ending fund balance is budgeted, the budget of-ficer should monitor actual cash flow carefully. Arevenue shortfall during the year may mean that spend-ing may have to be reduced in order to have sufficientcash in the unappropriated ending fund balance. If ex-penses cannot be reduced, then the amount in the un-appropriated ending fund balance may be less than

planned. This is allowed as long as expenditures remainwithin the fund’s appropriation authority and there hasbeen a revenue shortfall.

General Operating Contingency

An estimate for general operating contingency may beincluded in any operating fund. The general operatingcontingency is not a fund. It is a line item appropria-tion within an operating fund [ORS 294.352(8)]. The es-timate for general operating contingencies is based onthe assumption that unforeseen spending may becomenecessary in an operating fund. Its purpose and properuse are explained in Administrative Rule 150-294.352(8).

Each operating fund is allowed one appropriation fora general operating contingency. A nonoperating fundcannot have an appropriation for a general operatingcontingency. A Debt Service Fund is an example of anonoperating fund.

The contingency estimate must be reasonable, based onpast experience, and in line with the purpose of the par-ticular fund involved. It cannot be made in place of anestimate for expenditures which are known to be nec-essary and can be anticipated. It must not be used tocover up improper or loose budgeting practices.

The general operating contingency is shown in the bud-get as a line item, separate from any of the three majorobject classifications. For example, in the general fundit would be in a nondepartmental category along withinterfund transfers and the unappropriated endingfund balance.

A resolution or ordinance must be passed before any ofthe general operating contingency can be transferred.The transfer must be made to an existing appropriation.The operating contingency then is reduced and the re-ceiving item increased by the same amount so the fundremains in balance.

There is no statutory limit of the amount which may beappropriated for the general operating contingency.However, the amount which may be transferred fromcontingency is limited to 15 percent of the total appro-priations authorized in the fund [ORS 294.450(2)]. Thislaw states that transfers which in total exceed 15 per-cent may be made only after adopting a supplementalbudget for that purpose.

For example, if the total appropriations for a fund is$100,000, including $20,000 for the general operating con-tingency, only $15,000, or 15 percent of the appropriations,may be transferred from the contingency appropriation byresolution or ordinance. The remaining $5,000 can betransferred only through a supplemental budget.

Reserve for Future Expenditure

An estimate of an amount “reserved for future expen-diture” may be included in a Reserve Fund, Form LB-

23

11. This is a line item requirement which identifiesfunds to be “saved” for use in future fiscal years. Debtservice funds cannot include this type of requirement(Department of Justice letter of advice, August 26, 1970).

The amount reserved for future expenditure is not ap-propriated in the resolution or ordinance making ap-propriations since the initial intent is not to spend it. Ifthe need arises during the fiscal year to spend thisamount, a supplemental budget must be prepared.

Pass-through Payments

Through intergovernmental agreement or statute, alocal government can impose taxes, fees, or chargesthat are paid, on a pass-through basis, to another lo-cal government. The local government that imposesthe taxes, fees, or charges budgets them as resources.The pass-through payment to the other local govern-ment is budgeted as an expenditure and appropri-ated accordingly. If the actual amount collected fromthe taxes, fees, or charges exceeds the estimatedamounts in the budget, the local government thatimposed the taxes, fees, or charges may appropriatethe additional revenue simply through enacting aresolution or ordinance [ORS 294.460(6)].

Budget Forms

The Department of Revenue has the authority to makerules and prescribe budget forms. These forms fornoneducation districts can be obtained by contactingthe Finance and Taxation Unit of the Department ofRevenue or on the department’s Web site atwww.dor.state.or.us. The Department of Education pro-vides the forms for education districts. If any govern-ment chooses to design its own form, the format mustmeet the requirements of Local Budget Law.

Budget Document Detail Sheets

The budget document detail sheets are the heart of thebudget. They show in detail the planned requirementsand resources the local government needs to carry outits purpose. The forms described below are for use bynonschool local governments. School districts shouldrefer to the Program Budgeting and Accounting Manual forSchool Districts, published by the Oregon Departmentof Education, for their budget detail sheets.

Form LB-10 is used primarily for special revenue funds,except reserve funds. Special funds include specific-pur-pose funds for local option taxes and other special projectfunds. Resources and expenditures are specific to thefund and generally limited to just a few line items. Of-ten, items can be listed and totaled on one page.

Form LB-11 is used to show the resources and expendi-tures specific to a reserve fund. In the case of reservefunds, all or part of the amount in the fund may be “re-

served for future expenditure.” After the fund is estab-lished, no amount in this fund can be expended for anyother reason unless the fund is dissolved.

Form LB-20 is used to list all estimated budget re-sources, including the taxes necessary to balance thebudget for each fund requiring taxes. All resources mustbe budgeted and totaled for each fund. The amountbudgeted as an unappropriated ending fund balance inthe preceding year, all moneys in saving accounts, timecertificates of deposit, and all earned interest must beincluded in the budget.

Form LB-30 is designed to show fund summaries bymajor object classifications and nondepartmental ap-propriations separately. An LB-30 summary should im-mediately follow each fund in the detailed budgetdocument. Placing the summary with each fund pro-vides continuity and a standardized format whichmakes the budget document easier to understand.

Funds with organizational units should be summarizedby major object classification. Nondepartmental appro-priations, which cannot be budgeted as any part of anyorganizational unit, are listed separately.

Form LB-31 is used for detailed expenditure estimatesthat should be listed by category and by major objectclassification. How this form is completed depends onthe size of the budget. Major object classifications couldbe detailed on separate LB-31 forms, or continuously onone form with a fund total on the final page. The fundshould then be totally summarized on Form LB-30.

Budgets with long, detailed expenditures should havesubtotal categories within the major object classifica-tions. The primary objective is to provide easily under-stood expenditure estimates.

Form LB-35 is designed only for bonded debt principaland interest payments. Each payment must be listedindividually as a line item, showing the payment duedate and the corresponding issue date of the bonds.This fully discloses all of the expenditures.

The “Unappropriated Balance for the Following Year,”together with other revenues received, cannot exceed theamount necessary for principal and interest paymentsbetween July 1 and when the first tax revenues are re-ceived. Itemize all payments showing the bond issue date,payment due dates, and the exact payment amounts.

This form can be used for general obligation, revenue, orBancroft bond funds. Be sure to check the box on the topof the form to indicate the type of bonds. Separate fundsare required, depending upon the type of bonds issued.A local government’s outstanding general obligationbonds may be combined in one fund. Revenue bonds arebudgeted separately from general obligation bonds, butORS 223.285 requires that Bancroft bonds be budgetedin a fund entitled “Bancroft Bond Redemption Fund.”

24

Form LB-36 is a supplement to Form LB-35. If there isnot enough room on Form LB-35 to disclose all bond in-terest and principal payments, use Form LB-36 to showdetailed information. Show the bond issue date, duedate, and the exact amount for each payment. The un-appropriated ending fund balance that will pay prin-cipal and interest in the following year should be shownin the lower portion of the form. Summarize the totalsof principal payments, interest payments and unappro-priated fund balance on Form LB-35.

Form LB-40 is prescribed for supplemental informationonly, and not for budget resource or expenditure re-quirements. It shows total salaries for specific positionsthat are allocated on a cost basis to more than one fundor organizational unit. For example, portions of a citymanager’s salary may be allocated to the General Fundand the Utility Fund.

The following is not a complete balanced budget. Fundsare displayed to provide a representative example formost commonly used forms.

25

1

2

3

4

5

6

7

8

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Cash on hand* (cash basis), or

Beginning Fund Balance:

Working capital* (accrual basis)

Previously levied taxes estimated to be received

Earning from temporary investments

Transferred from other funds

Total resources, except taxes to be levied

Taxes necessary to balance

Taxes collected in year levied

9

10

11

12. 12TOTAL RESOURCES

Adopted BudgetThis Year

____________

Historical DataActual

First PrecedingYear __________

Adopted ByGoverning Body

Budget for Next Year _____________________________

Proposed ByBudget Officer

Approved ByBudget Committee

DESCRIPTION

RESOURCES AND REQUIREMENTS

RESOURCES

REQUIREMENTS

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1. 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16. UNAPPROPRIATED ENDING FUND BALANCE

17 17. TOTAL REQUIREMENTS 17

150-504-010 (Rev. 9-94)

SPECIAL FUNDRESOURCES AND REQUIREMENTS

(Name of Municipal Corporation)

*Includes Unappropriated Balance budgeted last year.Page ______________

Fund

FORMLB-10

SITE AND STATION SAMPLE RURAL FIRE PROTECTION DISTRICT

1999-00

Second PrecedingYear __________

- General

Expansion/Improvements

Furnishings

61,951 152,278 900

9,623 3,554 1,500

85,308 45,000 18,000

156,882 200,832 20,400

-0-

-0- -0-

156,882 200,832 20,400

4,604 199,549 17,400 -0- -0- 3,000

152,278 1,283 -0-

156,882 20,400200,832

3,000 3,000 3,000

1,000 1,000 1,000

10,000 10,000 10,000

14,000 14,000 14,000

-0- -0- -0-

14,000 14,000 14,000

12,000 12,000 12,000

2,000 2,000 2,000

-0- -0- -0-

14,000 14,000 14,000

1996-97 1997-98 1998-99

1

2

3

4

5

6

7

8

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Cash on hand* (cash basis), or

Beginning Fund Balance:

Working capital* (accrual basis)

Previously levied taxes estimated to be received

Earning from temporary investments

Transferred from other funds

Total resources, except taxes to be levied

Taxes necessary to balance

Taxes collected in year levied

9

10

11

12. 12TOTAL RESOURCES

Second PrecedingYear __________

Adopted BudgetThis Year

__________

Historical DataActual

First PrecedingYear __________

Adopted ByGoverning Body

Budget for Next Year _____________________________

Proposed ByBudget Officer

Approved ByBudget Committee

DESCRIPTION

RESOURCES AND REQUIREMENTS

RESOURCES

REQUIREMENTS

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1. 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16. RESERVED FOR FUTURE EXPENDITURE

17 17. TOTAL REQUIREMENTS 17

150-504-011 (Rev. 10-97)

RESERVE FUNDRESOURCES AND REQUIREMENTS

Fund (Name of Municipal Corporation)

*Includes Unappropriated Balance budgeted last year. Page ______________

Year this reserve fund will be reviewed to be continued or abolished. Date can not be more than 10 years after establishment.

Review Year ___________________

This fund is authorized and established by resolution / ordinance number_____________ , on (date) ____________________ for the followingspecified purposes:

FORMLB-11

EQUIPMENT SAMPLE RURAL FIRE PROTECTION DISTRICT

1996-97 1997-98 1998-99

General

2000May 8, 19909-90

To purchase fire suppression equipment

Ambulance

Fire apparatus

Turnout gear

1999-00

20,400

-0- -0- 3,000

27,200 48,000

661 1,604 1,700

26,539 20,000 24,500

27,200 48,804

-0-

-0- -0-

-0- -0- 26,220

74,200

-0- -0- 10,500

-0- -0- 4,000

27,200 48,804 33,480

27,200 48,804 74,200

33,400 33,400 34,300

2,000 2,000 1,900

15,000 15,000 15,000

50,400 50,400 51,200

50,400 50,400 51,200

4,000 4,000 4,000

-0- -0- -0-

-0- -0- -0-

26,300 26,300 26,300

20,100 20,100 20,900

50,400 50,400 51,200

27,200 48,804 74,200

}This sectionmust becompleted

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Budget Detail Sheets—Examples

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ResourcesEqualRequirements

←

26

First PrecedingYear __________

TOTAL EXPENDITURES

1.

EXPENDITURE SUMMARYBY FUND, ORGANIZATIONAL UNIT OR PROGRAMFORM

LB-30

150-504-030 (Rev. 9-94) Page ___________

26.

HISTORICAL DATAActual Adopted Budget

This Year_____________

Second PrecedingYear __________

2

3

4

5

6

7

23

24

25

26

28

2

3

4

5

6

7

28

Proposed ByBudget Officer

Approved ByBudget Committee

Adopted ByGoverning Body

Budget For Next Year ___________________________EXPENDITURE DESCRIPTION

PERSONAL SERVICES

TOTAL

MATERIALS AND SERVICES

2

3.

4.

5.

6.

10.10

12

13

14

15

16

17

21

22

9

18

20

29

14.

15.

16.

17.

18.

13.

TOTAL PERSONAL SERVICES

22.

23.

24.

25.

29. 29

13

14

15

16

17

18

20

22

23

24

25

26

Name of Municipal CorporationName of Organizational Unit—Fund

1

8

1

8.

1.

11

19

27

11.

12.

19.

9.

20.

21.

27.

TOTAL MATERIALS AND SERVICES

CAPITAL OUTLAY

TOTAL CAPITAL OUTLAY

TRANSFERRED TO OTHER FUNDS

General Operating Contingency

TOTAL TRANSFERS & CONTINGENCIES

28. UNAPPROPRIATED ENDING FUND BALANCE

8

10

11

12

9

19

21

27

7.

GENERAL SAMPLE RURAL FIRE PROTECTION DISTRICT

1999-00

1996-97 1997-98 1998-99

Fire Chief

Clerk

Workers’ Compensation

Employee benefits

Insurance

Office supplies/travel

Utilities

Gas, tires, batteries

Maintenance & repairs — vehicle

Contract services

Fire hose

Site & Station Special Fund

Equipment Reserve Fund

3,464 3,592 3,749

6,754 2,570 3,000

28,000 26,038 27,283

14,543 14,359 16,000

5,018 5,383 6,000

2,142 3,378 5,000

9,284 10,556 13,600

15,579 16,377 20,500

58,326 59,117 75,250

-0- 2,080 2,000

-0- 2,931 5,000

2,931 5,000

11,760 9,064 14,150

58,108 45,000 18,000

50 -0- 24,500

7,500

58,158 45,000 50,000

144,484 133,086 157,533

38,172 37,658 16,795

182,656 170,744 174,328

17,782 17,796 18,534 19,677 19,677 19,677

4,048 4,048 4,318

5,100 4,000 4,700

2,400 2,400 2,400

31,225 30,125 31,095

18,000 18,000 18,000

6,500 7,000 7,000

6,000 6,000 6,000

14,000 14,500 14,500

15,000 15,000 15,000

13,500 12,600 12,600

5,000 6,000 6,000

5,000 6,000 6,000

10,000 10,000 10,000

15,000 15,000 15,000

28,340 28,340 27,370

53,340 53,340 52,370

162,565 162,565 162,565

24,225 24,225 24,225

186,790 186,790 186,790

73,000 73,100 73,100

1

2

3

4

5

6

7

8

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Available cash on hand* (cash basis), or

Beginning Fund Balance:

Net working capital* (accrual basis)

Previously levied taxes estimated to be received

Interest

9

10

11

13. 13

OTHER RESOURCES

1

2

3

4

5

6

7

8

9

10

11

13

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

15. 15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

32 32. TOTAL RESOURCES 32

150-504-020 (Rev. 9-94) *Includes Unappropriated Balance budgeted last year. Page ______________

12

14

31

Total resources, except taxes to be levied

Taxes necessary to balance

Taxes collected in year levied

12.

14.

31.

12

14

31

Second PrecedingYear __________

Adopted BudgetThis Year

__________

Historical DataActual

First PrecedingYear __________

Adopted ByGoverning Body

Budget for Next Year _____________________________

Proposed ByBudget Officer

Approved ByBudget CommitteeRESOURCE DESCRIPTION

RESOURCES

(Name of Municipal Corporation)Fund

FORMLB-20

GENERAL SAMPLE RURAL FIRE PROTECTION DISTRICT

1996-97 1997-98 1998-99

Ambulance service

County — 911 Revenue

1999-00

10,007 9,179 9,000

2,018 1,654 1,500

25,347 23,858 25,000

6,000 6,000 6,000

51,112 38,172 40,000

94,484 78,863 81,500

92,828

174,328 88,172 91,881

182,656 170,744

9,500 9,500 9,500

1,500 1,500 1,200

28,000 28,000 28,000

6,000 6,000 6,000

40,000 40,000 40,300

85,000 85,000 85,000

101,790

186,790 88,172 91,881

186,790 186,790

101,790 101,790

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ResourcesEqualRequirements

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Examples—continued

27

13.

BONDED DEBTRESOURCES AND REQUIREMENTSFORM

LB-35

Bond Debt Payments are for:

Revenue Bonds orGeneral Obligation Bonds

150-504-035 (Rev. 12-95)

Fund Name of Municipal Corporation

Page ___________* If this form is used for revenue bonds, resource lines 8 and 9 may not be used. The district does not have authority to levy for these bonds.

HISTORICAL DATAActual Adopted Budget

This Year_____________

Second PrecedingYear ___________

First PrecedingYear __________

1

10

2

3

4

5

6

7

8

9

1

2

3

4

5

6

7

8

910

11

12

13

14

1

10

2

3

4

5

6

7

8

9

1

2

3

4

5

6

7

8

9

1011

12

13

14

Proposed ByBudget Officer

Approved ByBudget Committee

Adopted ByGoverning Body

Budget For Next Year ___________________________DESCRIPTION OFRESOURCES AND REQUIREMENTS

Resources

TOTAL RESOURCES

Requirements

TOTAL REQUIREMENTS

Bond Principal Payments

Total Principal

Bond Interest Payments

Issue Date Budgeted Payment Date

Issue Date Budgeted Payment Date

Issue Date Payment Date

Unappropriated Balance for Following Year By

Beginning Fund Balance:

1. Cash on Hand (Cash Basis), or

2. Working Capital (Accrual Basis)

3. Previously Levied Taxes Estimated to be Received

4. Earnings from Temporary Investments

5. Transferred from Other Funds

6.

7. Total Resources, Except Taxes to be Levied

8. Taxes Necessary to Balance *

9. Taxes Collected in Year Levied *

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

14.

10.

Total Unappropriated Ending Fund Balance13.

Total Interest

X

SAMPLE RURAL FIRE PROTECTION DISTRICTDEBT SERVICE

1996-97 1997-98 1998-99

1999-00

1987 (equip.) 3-1-00

1987 (bldg.) 3-1-00

1987 (equip.) 9-1-99 & 3-1-00

1989 (bldg.) 9-1-99 & 3-1-00

1987 9-1-00

1989 9-1-00

10,564 9,789 8,400

4,397 3,487 3,400

99,200

97,939 99,924

147,000 144,600 141,000

49,061 44,676 41,800

24,000 24,000 24,000

28,000 28,000 28,000

52,000 52,000 52,000

31,200 30,800 29,200

32,400 31,600 30,800

63,600 62,400 60,000

14,000

15,000

29,000 30,20031,400

141,000 144,600147,000 136,000 136,000136,000

136,000 136,000136,000

34,100 31,400 30,000

9,000 9,000 9,000

4,000 4,000 6,000

42,500 42,500 46,500

93,500 93,500 89,500

29,500 29,500 31,500

24,000 24,000 24,000

28,000 28,000 28,000

52,000 52,000 52,000

27,500 27,500 27,500

29,500 29,500 29,500

57,000 57,000 57,000

12,900 12,900 12,900

14,100 14,100 14,100

27,000 27,000 27,000

Examples—continued

←

ResourcesEqualRequirements

Complete PaymentSchedule Information

←

}Check theappropriatebox.

↑↑

28

29

Budget Committee

The governing body of each local government must es-tablish a budget committee (ORS 294.336). There is anexception to this in Multnomah County, where there isa tax supervising and conservation commission. Therethe governing body serves as the budget committee forany local government with a population exceeding200,000 (ORS 294.341).

The budget committee is composed of the governingbody and an equal number of electors appointed bythe governing body. All members of the budget com-mittee have equal authority. An elector is a qualifiedvoter who has the right to vote for the adoption ofany measure. If the governing body cannot find asufficient number of electors who are willing toserve, those who are willing and the governing bodybecome the budget committee. If no willing electorscan be found, the governing body is the budget com-mittee [ORS 294.336(2)].

The appointive members of the budget committeecannot be officers, agents or employees of the localgovernment [ORS 294.336(4)]. Spouses of officers,agents or employees of the local government are notbarred from serving on the budget committee if theyare qualified electors and not themselves officers,agents, or employees.

Appointive members of the budget committee are ap-pointed for three-year terms. The terms must be stag-gered so that about one-third of the terms end each year[ORS 294.336(5)]. When a new local government is ap-pointing its first budget committee, the terms may befor one year, two years and three years for each thirdof the appointive members. After the first two years, thelocal government will then be able to appoint all newmembers to three-year terms (OF 444-V; 3-6-64).

If an appointive member of the budget committee isunable to complete the term, or resigns before theterm is over, the governing body must appoint an-other elector to serve out the unexpired portion ofthe term [ORS 294.336(6)].

No member of the budget committee (including gov-erning body members) may receive any compensa-tion for their services as a member of the committee[ORS 294.336(3)].

The budget committee may meet from time to timethroughout the year at its discretion for purposes suchas training. All of these meetings are open to the pub-lic and notice of the meeting must be given in the samemanner as notice for meetings of the governing body,

or through one of the local budget law publicationmethods [ORS 294.406(2)].

Purpose of the Budget Committee

The budget committee meets publicly to review thebudget document as proposed by the budget officer.The budget committee receives the budget and budgetmessage and provides an opportunity for the public toask questions about and comment on the budget. Thecommittee also approves a budget and, if ad valoremproperty taxes are required, approves an amount or rateof tax for all funds that receive property taxes.

Public notice of the budget committee meetings mustbe given. If the public notice is published in a news-paper of general circulation, it must be published atleast twice, five to 30 days before the meeting. The pub-lications must be separated by at least five days. If thenotice is hand delivered or mailed, only one notice isrequired not later than 10 days prior to the meeting.The notice must give the address, time, and purposeof the meeting [ORS 294.401(4)]. See Chapter 8 for moreinformation on publication.

The budget officer may make the proposed budgetavailable to the budget committee at any time before thefirst budget committee meeting advertised in the notice.Committee members may not discuss or deliberate onthe budget outside of a public meeting. The budget of-ficer may choose to make the budget available at thefirst budget committee meeting (ORS 294.401). Imme-diately following the release of the proposed budget tothe budget committee, whether before or at the meet-ing, the budget officer must file a copy of the budget inthe office of the governing body. This copy becomes apublic record.

The budget committee must have a quorum, or major-ity of the total membership of the committee, presentin order to hold a meeting. A majority is one more thanhalf the number of the membership [OAR150-294.336-(B)]. For example, if the budget committeehas 10 members, six must be present to hold a meeting.

The budget committee elects a presiding officer fromamong the members at the first meeting [ORS294.336(8)]. The budget committee also hears the bud-get message that was prepared by the executive officerof the local government or the governing body chair.One of the committee’s most important duties is to hearand consider any testimony presented by the publicabout the budget.

The budget committee may approve the proposed bud-get at the first meeting. However, it can take several

Chapter 7—Approving the Budget

30

meetings to do so. When the budget officer prepares thebudget calendar, several budget committee meetingscan be scheduled. The public notice then contains thedate, time and place of each of the meetings. If moremeetings are needed than were scheduled, give noticeof those meetings in the same manner as notice of meet-ings of the governing body or by one or more of thepublication methods used for the initial budget commit-tee meetings [ORS 294.406(2)].

The budget committee reviews and, if necessary, revisesthe proposed budget submitted by the budget officer.Budget committee members should develop a generalunderstanding of the budget process, the departmentsand programs included in the budget document, andthe legal constraints imposed on the local government’stax levy after budget committee approval. Local Budget-ing in Oregon is recommended as a good resource forbudget committee members on the basics of taxationand budget law.

The budget committee generally studies the budget bycomparing the two previous years’ actual data, the cur-rent budgeted data, and the figures proposed by the bud-get officer. The budget committee may ask questions ofthe executive officer or other staff, and request additionalinformation. The committee is entitled to receive any in-formation it needs in order to make decisions about thebudget (ORS 294.406). The committee uses the informa-tion to approve expenditures and balance each fund.

Budget Committee Functions

Among the most common items discussed are the ques-tions of taxation (how much?) and allocating revenuesand expenditures (where will the spending occur?).

Once this initial process has taken place and the expen-ditures have been allocated among the programs, theseproposed expenditures must be compared to the pro-posed nontax revenues. The difference in these twoamounts becomes the “taxes estimated to be received”(ORS 294.381).

The budget committee must also consider the amountof taxes that will not be received. Property taxes shownin the budget will not be the same as the property taxcertification that is submitted to the assessor.

There are three reasons for this:

• First, not all taxpayers pay their taxes in the yearbilled.

• Second, discounts are given for timely property taxpayments.

• Third, the Oregon Constitution sets limits on theamount of property tax that can be collected from anindividual property.

The total of these amounts—taxes estimated to be re-ceived, uncollected amounts, discounts allowed, and

loss due to constitutional limit—cannot exceed the lo-cal government’s taxing authority. Taxing authority in-cludes the amount of tax revenue that will be raised bythe local government’s permanent rate limit, local op-tion tax authority, other taxing district obligation au-thority (Gap bonds and qualifying pension anddisability), and general obligation bond tax authority.

The budget committee establishes and approves theamount and/or rate of property taxes to be imposed.This is a very important responsibility of the budget com-mittee. The budget committee may choose to impose lesstax than the local government’s taxing authority. Theamount and/or rate of tax approved can only be changedby the governing body under specific conditions.

The taxes to be imposed are documented in a state-ment which is filed with the county assessor when thetax certification is made by July 15. The statement oftaxes approved may show either the tax rate (perma-nent, operating or local option) or the amount of taxesthat the local government wants to impose for opera-tions. It should also include the amount of tax for anybonded debt.

If the amount of tax revenue needed exceeds the localgovernment’s permanent rate taxing authority, the com-mittee must decide if the additional amount neededshould be requested from the voters in the form of alocal option tax. If the committee decides to stay withinits existing taxing authority, it may be necessary to re-duce budgeted requirements.

Any budget committee action must have the approval ofa majority of its members. To take action requires the af-firmative vote of a majority of the total budget commit-tee membership [OAR 150-294.336-(B)]. If only sixmembers of a 10-member committee are present, then theyall must vote in the affirmative to take action. The budgetcommittee may reduce or increase the estimates proposedby the budget officer. The budget is approved only once.

If any changes are necessary after the committee ap-proves the budget, the governing body must make therevisions when adopting the budget. The governingbody’s power to change the approved budget is limited.It cannot increase expenditures in a fund by more than$5,000 or 10 percent, whichever is greater. Also, it can-not increase the tax amount approved by the budgetcommittee. If the governing body wants to exceed ei-ther of these limits, it must publish a revised budgetsummary (financial summary) and hearing notice, andhold another hearing (ORS 294.435).

The governing body has the final responsibility for al-locating the resources of the budget to the programs ordepartments of the local government. This authority ispart of the responsibility given the governing body toadopt the budget and to make appropriations by whichthe budget is administered [ORS 294.435(1)]. Chapter 12has more details on adopting the budget.

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The governing body may inform the appointive membersof the budget committee if different figures are approvedwhen the budget is adopted. This is a policy decision ofthe local government and not a statutory requirement.

Fiscal Powers of the Budget Committee

The budget committee, as a whole or through majorityaction, has the power to:

1. Specify the amount of tax revenue or tax rate for allfunds.

2. Establish a maximum for total expenditures for eachfund. This maximum is subject to any revisionwhich the governing body is authorized to makeafter the budget hearing.

3. Approve the total taxes for each fund as an amountand/or rate.

4. Approve the budget.

When the budget committee has approved the budget,it is turned over to the governing body and enters intothe adoption stage of the budget process.

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Publishing budget information is one of the most im-portant steps in the budget process. The budget officermust be familiar with the statutes (ORS 294.401, 294.416,294.418 and 294.421) governing publication of the meet-ing notices and the budget summary. This chapter ex-plains the statutory publication requirements. Forbiennial budgets, see Chapter 15.

Notice of Budget Committee Meeting

The budget officer must publish a “Notice of BudgetCommittee Meeting” by one of the following methods:

• Printing in a newspaper of general circulation withinthe boundaries of the local government.

• First-class mailing through the U.S. Postal Service toeach street address within the boundaries of the lo-cal government.

• Hand delivery to each street address within the localgovernment boundaries.

The notice must contain the date, time, and location ofthe first budget committee meeting scheduled for receiv-ing the proposed budget, hearing the budget message,and taking questions and comments from the public.

If more than one meeting is planned, the budget com-mittee may decide that the purpose of the first meetingis only to hear the budget message and receive the bud-get document, and that no public comment will betaken. In that case, a subsequent meeting would bescheduled for the purpose of taking public comment,and notice of both meetings would be published. Thepublished notice tells people which meeting they mustattend if they wish to ask questions or make commentson the budget. If more meetings are needed to take pub-lic comment and questions than were initially pub-lished, notice of the additional meetings is given in thesame timeframe and manner as required for notice ofother meetings of the governing body.

If notice is published for a meeting to be held for thepurpose of taking questions and comments from thepublic and it is subsequently determined that the meet-ing is not needed, notice of cancellation of the meetingmust also be published [ORS 294.401(3)].

If the notice is published in a newspaper of general cir-culation, it must be published twice, five to 30 days be-fore the committee meeting. The publications must beseparated by at least five days. If the notice is mailedor hand delivered, only one notice is required not laterthan 10 days before the meeting [ORS 294.401(4)]. Thisnotice must be published by one of the three methodslisted above. It cannot be posted.

Notice of Budget Hearing and BudgetSummary

Each local government must publish a summary of thebudget approved by the budget committee. The sum-mary contains information on the approved budget, thecurrent year’s budget, and the preceding year’s actualexpenditures and resources (ORS 294.421).

At the same time the budget summary is published, anotice of the budget hearing is published. The hearingnotice gives the place and time of the hearing (ORS294.416). The same publication methods described for thenotice of budget committee meeting are used. The bud-get summary and notice are published not less than fivedays or more than 30 days before the budget hearing.

The local government also prepares a financial sum-mary by fund that states the estimated budget resourcesand expenditures, the outstanding indebtedness and in-debtedness authorized but not yet incurred, and an es-timated tax levy (ORS 294.386).

There is an exception to the publication requirementsjust described. If no newspaper of general circulationis published within the boundaries of the local govern-ment and the budget expenditures for the coming yeardo not exceed $50,000, the notice of the budget hearingmay be posted. Post the notice in three conspicuousplaces within the boundaries of the local governmentfor at least 20 days before the hearing. These are placeswhere many people are likely to go—such as the postoffice or grocery store.

When the budget summary and notice are posted, thelocal government is required to publish in any news-paper of general circulation, mail, or hand deliver thefollowing information: 1) the date, time and place of thebudget hearing, 2) the place where the budget docu-ment can inspected or obtained by the public duringregular office hours, 3) the total approved budget re-quirements and tax amounts, and 4) any change in thetax amount from the prior year. This notification is donefive to 30 days before the date of the hearing.

The Department of Revenue provides forms and in-structions each year for publishing the budget and fi-nancial summary and notice of budget hearing. LocalBudget Law and Notice of Property Tax Forms and Instruc-tions contains all the required publication forms.

Exception—Counties with Tax Supervising andConservation Commission (Multnomah County)

A local government with a population greater than200,000 in a county with a tax supervising and conser-

Chapter 8—Publication Requirements

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vation commission (TSCC), or one with a populationless than 200,000 that requests TSCC to conduct thebudget hearing, does not publish its budget summaryand hearing notice as described above. Instead, the lo-cal government submits its approved budget to theTSCC 20 days before the public hearing that will beheld by TSCC [ORS 294.421(6)].

The local government is required to publish by one ofthe publication methods the following information:

• the date, time and place of the TSCC budget hearing,the place where the budget document can inspectedor obtained by the public during regular office hours,

• the total approved budget requirements and taxamounts, and

• any change in the tax amount from the prior year.

This notification is done five to 30 days before the dateof the hearing.

How to Count Days for Publication

Local Budget Law sets the number of days that a no-tice must be published before a budget committee meet-ing or budget hearing.

ORS 193.060 states, “The time for the publication oflegal notices shall be computed so as to exclude thefirst day of publication and to include the day onwhich the act or event of which notice is given is tohappen, or which completes the full period requiredfor publication.”

For example, if your notice appeared in the paper on May15 and your meeting was on May 25, you would havegiven 10 days notice. Count May 25, but not May 15.

The Publication Forms

The Department of Revenue supplies forms to be usedto publish notice of the budget committee meeting andto present the budget summary and notice of budgethearing. These forms are “Notice of Budget CommitteeMeeting,” LB-1, LB-2, LB-3, and LB-4. Urban renewaldistricts use forms UR-1 and UR-2 which correspond toLB-1 and LB-2. No urban renewal forms correspond toLB-3 and LB-4. For education districts, forms ED-1,ED-2, and ED-3 correspond to LB-1, LB-2, and LB-3; noform corresponds to LB-4. The publication forms andinstructions are included in the Local Budget Law andNotice of Property Tax Forms and Instructions booklets.

The budget summary and notice of budget hearing maybe published in a narrative format which is explainedlater in this chapter.

Budget Committee Meeting

The form “Notice of Budget Committee Meeting” hastwo formats that can be used. The format option you

use depends on the number of committee meetings thatare planned and when public input will be received.Option A is used when the budget committee will re-ceive the budget message and take public comment atthe same meeting. Option B is used when public com-ment will be taken after the first meeting.

Budget Hearing

Form LB-1, UR-1, or ED-1 notifies the public of the bud-get hearing date and time and where to obtain a copyof the budget. The local government should use a streetaddress, rather than a post office box, so a copy of thebudget can be picked up. Include the street addresswhere the hearing will be held.

The Financial Summary has two columns, one for theadopted budget for the current year and one for thebudget committee-approved amounts for the comingfiscal year. The two columns allow district patrons tocompare the current financial plan and the proposed fi-nancial plan for the coming fiscal year.

The anticipated requirements and revenues from allfunds are summarized on Form LB-1, UR-1, or ED-1.The totals on the Financial Summary must equal thesum of the requirements and revenues on the LB-2, UR-2, or ED-2 and LB-3 or ED-3.

The total amount of property taxes estimated to be re-ceived by all funds is shown along with the amount oftaxes anticipated not to be received.

You must anticipate the amount of taxes that will notbe received. Break this amount into two parts. The firstpart shows:• the amount of taxes the district anticipates losing due

to the constitutional tax limitations.

The second part shows:• the amount of taxes that will not be received because

of the 3 percent discount given to taxpayers for pay-ing on time [ORS 311.505(3)], and

• the taxes not received because some taxpayers do notpay taxes in the year they are billed.

Urban renewal forms do not have these lines.

The amount of taxes anticipated not to be received doesnot show in the budget document itself. The only placethis amount is shown is on the publication forms. Thebudget document shows the amount of tax revenue es-timated to be received. More information on figuringtaxes anticipated not to be received is in Chapter 9.

The taxes estimated to be received and the taxes an-ticipated not to be received cannot exceed the localgovernment’s taxing authority. This is the total amountof tax or tax rate that the local government can certifyto the county assessor. Remember, these taxes shouldinclude any tax amount or rate that the local govern-ment is planning to put up for voter approval.

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All local governments must disclose the status of indebt-edness by showing the debt outstanding or debt autho-rized, but not yet incurred. The lower portion of FormLB-1, UR-1, or ED-1 provides for this disclosure. If a lo-cal government has no debt to disclose, this portion ofthe form is not required to be published (ORS 294.386).

Form LB-1, UR-1, and ED-1 are amended only when re-published. For more information on errors in the publi-cation forms, see “Correcting Publication Errors” below.

Form LB-2, UR-2, or ED-2 is used to summarize indi-vidual budget funds as approved by the budget commit-tee that do not require property taxes. Requirements mustbalance with the resources. Only the completed portionof the form must be published.

Form LB-3 or ED-3 is used to summarize individualbudget funds that require property taxes as approvedby the budget committee. Requirements must balancewith the resources. Only the completed portion of theform must be published.

This form shows the property taxes required and thetaxes anticipated not to be received by individual fund.The taxes anticipated not to be received is broken downinto two parts as is done on the Form LB-1 or ED-1. Theamount of taxes lost because of the constitutional limitmay vary among funds. The percentage of taxes not tobe collected because of the discount and failure to payshould be the same for each fund.

The total resources and requirements of each fundshown on the LB-2, UR-2, or ED-2 and LB-3 or ED-3 areadded together and summarized on the LB-1, UR-1, orED-1. For this reason, it is suggested that these formsbe completed first.

Form LB-4 is a more detailed publication of organizationalunits or programs within a fund. This form will only beused by local governments that have departments or pro-grams within a fund, such as a city with police, fire, andadministrative departments within the general fund. Thisform follows the same format as the Form LB-2, exceptthere are no resources. Each organizational unit or pro-gram is summarized by category and totaled in the cor-responding fund on the LB-2 or LB-3 forms.

The Local Budget Law and Notice of Property Tax Forms andInstructions booklets give detailed instructions for com-pleting the forms and samples to use as reference. Thereare separate booklets for municipal corporations, urbanrenewal districts, and education districts.

Narrative Publication—An Alternative

Local Budget Law permits the use of a narrative publi-cation (ORS 294.418). The purpose is to give meaningto the budget figures while highlighting significant fea-tures in the budget.

The notice must include the time and place (includingthe street address) at which the budget document maybe discussed with the governing body. This is the no-tice of budget hearing.

The notice of budget hearing must show the placewhere the complete budget document can be inspectedby the public during business hours. It must also showwhere copies of the complete budget document may beobtained.

The narrative must include a statement clarifying thatthe budget was prepared using the same basis of ac-counting as the current operating year. If the basis of ac-counting changed, explain the change and its effects.

At the minimum, the narrative summary must list thetotal requirements for personal services, materials andservices, capital outlay, special payments, debt service,transfers, and operating contingencies for the budget.Also, the publication must include a brief narrative de-scription of the major activities or major programs ofthe local government and the significant changes fromthe current year. State all changes in the personnel re-quirements for each major activity or major program.In addition, state

• the major resources for financing each major activityor program and the significant changes from the cur-rent year, or

• that each major activity or program is financed fromgeneral resources of the local government.

The narrative summary for the coming year and for thecurrent year must show total budget requirements, to-tal estimated resources other than property taxes, andthe estimated property tax revenue for all funds statedin dollars and cents. The estimated property tax rev-enues must show estimates of both the taxes to be re-ceived and the taxes not to be received, as well as thetotal. The summary must also state the localgovernment’s operating tax rate and the amount or rateof any other property taxes to be certified to the asses-sor. The tax rates must be expressed in a rate per thou-sand dollars of assessed value. Include local optiontaxes approved or yet to be approved by the voters, andthe tax amount for meeting principal and interest pay-ments on bonds.

The manner of publication and publication time re-quirements are the same for the narrative publicationas they are for the standard financial summary publi-cation described earlier in this chapter (ORS 294.421).

Correcting Publication Errors

The governing body of a local government should becareful when publishing the financial summary. All an-ticipated property tax revenues approved by the bud-get committee must be published and summarized. Itis strongly recommended that the budget officer verify

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that publication occurred and that the correct numberswere published.

Errors in the published budget summary are bound tooccur. Correctable errors include typographical errors, fail-ure to mail or hand deliver the notice and summary toeach street address, arithmetic errors, errors in calculationof tax revenues and failure to publish within the time pe-riods required by law (ORS 294.425). It should be notedthat these errors are errors in the published documents.The budget officer cannot change the expenditures, rev-enues or taxes approved by the budget committee.

If an error occurs, the budget officer can correct the er-ror as follows. At the first regularly scheduled meetingof the governing body after the error occurs, the bud-get officer informs the governing body in writing of theerror. The budget officer corrects the error in testimonybefore the governing body. If the error relates to the taxamount certified to the assessor, the budget officer no-tifies the assessor in writing that an error occurred. Thebudget officer submits a corrected tax certificationdocument with the notification. Corrections must besubmitted to the assessor before October 1.

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Operating Taxes—Permanent Rate

Most local governments’ operating tax revenue comesfrom its permanent tax rate limitation. In general, thesimplest way to estimate the amount of tax revenue thatwill be generated by the permanent rate is to multiplythe permanent rate by the estimated assessed value of thelocal government for the upcoming year. For a listing ofpermanent rates by district, see Appendix D.

If the local government has annexed new territory dur-ing the current year, the estimated assessed value of thatterritory should also be included in the calculation oftax revenue. The local government’s permanent rate ismultiplied by the estimated assessed value of the an-nexed territory for the coming year to determine theamount of tax revenue that will be generated by theannexed territory. This amount is added to the amountof tax revenue to be raised for the existing territory.

Assessed value of most property within the local govern-ment will grow at approximately 3 percent each year. Inareas with substantial new construction, the annual in-crease in assessed value will be higher than 3 percent. Inareas where the real estate market is stable or decliningthe assessed value may not increase. The county asses-sor can help project an estimate of assessed value.

The amount of tax that will be raised by the permanentrate is not the amount of tax that will actually be receivedby the local government. There are three reasons for this.First, not all taxpayers pay their taxes in the year billed.Second, discounts are given for timely property tax pay-ments. Third, the Oregon Constitution sets limits on theamount of property tax that can be collected from an in-dividual property.

To estimate the tax revenue that will actually be received,subtract from the amount to be raised by the permanentrate amounts for “loss due to constitutional limit” and“discounts allowed, other uncollected amounts” [ORS294.381(3)]. (More details on computing these amountsare given later in this chapter.) This is the estimatedamount of tax revenue that will actually be available.

The estimate of property taxes not to be received isshown only on the publication forms. This estimate isnever shown in the budget as a negative resource [OAR150-294.361(1)-(B)].

Imposing Less Than Full Taxing Authority

A local government may need less tax revenue for oper-ating purposes than its permanent rate is estimated toraise. The local government may choose to certify lessthan its full taxing authority to the assessor. When thisis done, the assessor computes a tax rate based on the

dollar amount requested in the certification. The com-puted rate will be used on the tax roll unless it is morethan the local government’s permanent rate. If the com-puted rate is higher, the lesser, permanent rate will beused on the roll. The taxes imposed under this methodwill never be more than the amount requested, eventhough the permanent rate could raise more tax revenue.

The amount of tax revenue that is needed for operat-ing purposes is computed by adding together theamount of revenue needed to balance the budget, theamount of tax that will not be collected because of dis-counts and failure to pay, and the amount that will notbe received because of the constitutional limit. This stepis done, as mentioned above, because the amount of thetax that will be certified to the assessor is not theamount of tax that will actually be collected.

If the local government intends to certify a rate, the taxamount for operating purposes is then divided by theestimated assessed value of the local government for thecoming year. This will result in an operating rate whichis carried out to the seventh decimal place and multipliedby 1,000. This is the rate that is certified to the assessorin place of the local government’s permanent rate.

Example:

operating taxes $100,000estimated assessed value $17,000,000

=

.0058823 × 1,000 = operating rate $5.8823

In this example, the local government’s permanent ratelimit is $7.15. It was estimated to generate $121,550 intax revenue using the same estimated assessed value.

It is possible that the actual assessed value for the up-coming fiscal year will be greater than the assessedvalue estimated. If this is the case, more tax revenue willbe generated than the local government needed to bal-ance its budget. This additional revenue can be held tomake up for other revenue shortfalls and become cashcarry-forward or it may be appropriated through asupplemental budget.

Constitutional Limit

Article XI, section 11b, of the Oregon Constitution limitsthe amount of taxes that can be collected from an indi-vidual property. The constitution breaks property taxesdown into categories based on the kind of services that thetaxes are supporting—education services, including sup-port services, and general government services. It alsoprovides that certain property taxes will not be limited.

The Department of Revenue refers to the tax categoriesas education, general government, and excluded fromlimitation. Governing bodies must determine into which

Chapter 9—Estimating Property Taxes to be Received

38

categories their property taxes should be placed. This isdone by a resolution or ordinance at the same time thebudget is adopted (ORS 294.435). The tax categories arealso certified to the county assessor when the tax certifi-cation documents are submitted (ORS 310.060).

Once the tax categories have been determined, the lo-cal government can estimate the loss of tax revenue, ifany, that will result because of the constitutional limits.

Figuring Loss Due to Constitutional Limit

Determining the amount of property taxes that will belost because of the constitutional limit can be a compli-cated process.

The simplest method is to use the prior year’s loss withan adjustment for anticipated tax revenue growth andvalue increases. Late in October or early November eachyear, the tax collector sends local governments informa-tion on how much tax was actually billed (imposed) forthe government (ORS 311.391). The “loss” is the differ-ence between the amount of the tax revenue estimatedto be raised and the amount of tax actually imposed.

If the taxing situation for the local government and allthe other governments with which it shares territory re-mains the same, the percent of loss due to the constitu-tional limits should remain stable.

However, if the taxing situation is changing, such as otherlocal governments losing or gaining taxing authority, thepercentage of loss will change for each government. Also,if real market value (the value on which the limits aretested) is declining, more loss could be experienced.

Discounts and Other Amounts Not Collected

Some taxpayers fail to pay their property taxes on time.Others pay on time and receive a discount. It happenseach year in all of Oregon’s 36 counties. As a result, lo-cal governments that impose property taxes must con-sider the amounts for nonpayment when they estimatethe taxes to be received.

The amount of tax revenue lost varies from year to yearand from county to county. There is no formula to de-termine the exact amount that will not be collected eachyear. If the estimate is too high, the amount of taxes re-ceived will be higher than the amount estimated in thebudget. If the estimate is too low, not enough tax willbe collected to meet the requirements in the budget, anda shortfall in total resources could occur.

If a local government has more than one fund receiv-ing tax revenue, all of its taxing funds should use thesame percentage for taxes to be collected.

Figuring Loss Due to Discount and Uncollectibles

The amount of tax that will be lost because of the dis-counts and failure-to-pay is determined by using a per-

centage of taxes anticipated to be collected. This percent-age is developed from historical data. The county tax col-lector may be able to provide tax collection percentages.

Start with the amount of taxes estimated to be raised bythe permanent or operating rate. If the local govern-ment receives tax “offset” revenue, the amount of theoffset is subtracted from the taxes estimated to beraised. Loss due to discount and uncollectibles is notcomputed for offset amounts [ORS 294.381(4)] becausethese amounts are not billed with the property taxes.

The offset moneys come from either Eastern OregonPrivilege Tax (EOPT) or Western Oregon Privilege Tax(WOPT) collected on harvested timber. They are called“offsets” because they are subtracted, or offset, from thelocal government’s permanent or operating tax rate be-fore taxes are imposed on each property tax account.The timber tax offsets are applied only to the permanentrates or operating rates of noneducation local govern-ments. Offset amounts do not reduce the tax rates forgeneral obligation bonds, local option taxes, or othertaxing district obligations.

Next, multiply the taxes estimated to be raised, adjustedif necessary for offsets, by the tax collection percentage.This gives the amount of taxes estimated to be received.

Example:

The county budget officer is estimating the taxes thatwill be received.

The amount of tax estimated to be raised for the countyis $890,448. This amount is based on the estimated tax thatthe permanent rate will raise, and includes tax amountsfor local option taxes and bonds. From this, subtract theamount of the county’s offset of $20,000 from WOPT.

The county-wide collection rate is 90 percent.

$890,448 estimated to be raised(20,000) offset amount

$870,448 taxes estimated to be billed× .90 collection rate for county

$783,403 estimated taxes to be received

$870,448(783,403)

$87,045 loss due to discount and uncollectibles

Legislation enacted in 1999 changed the way timber taxoffsets will be distributed in the future. Beginning in taxyear 2000-01, WOPT offsets will only be distributed tothe county. Beginning in tax year 2001-02, EOPT offsetswill only be distributed to the county. Other taxing dis-tricts will no longer receive WOPT or EOPT offsets.

Publishing Property Taxes Not to be Received

The only place that the amount of taxes estimated notto be received is shown is on the publication forms, LB-1

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and LB-3, or ED-1 and ED-3. Chapter 8 explains publi-cation requirements.

When publishing the budget and financial summary,the local government is showing the tax approved bythe budget committee. It is also showing its patronshow much money is estimated to be received fromthe tax imposed. Note: the amounts received fromtimber tax offsets are not shown separately in thepublication forms.

Example:

Total property taxes estimated to be received $803,403

Plus: estimates taxes not to be received—Loss due to constitutional limits -0-—Discounts allowed, other uncollected

amounts 87,045Total tax $890,448

Tax Elections and Estimate of Tax Not to beReceived

When planning to take a local option tax question to thevoters, remember to include an estimate of the amountnot to be received when determining the amount of taxesor rate to be requested. This also applies when new dis-tricts are seeking voter approval for a permanent ratelimit or bonds. You may use the same method of estimat-ing taxes not to be received as discussed above.

The amount of taxing authority asked for in a ballot is notthe amount of tax revenue that will actually be receivedfor the same reasons that the amount of tax imposed is notthe same as the amount actually received. If the tax or ratein the ballot is for a specific purpose, such as purchase ofa piece of equipment, the budget officer will need to askfor more than the exact price of the equipment. Otherwise,insufficient revenue for the purchase will be received.

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Chapter 10—Types of Property TaxesMany local governments rely heavily on local propertytaxes to finance the services they offer. In some cases,services are paid for entirely by property taxes.

Property taxes, or ad valorem taxes, are available to alllocal governments that have the power to impose taxes.Each local government should refer to its enabling stat-utes to determine its statutory taxing authority.

Four types of property tax are available, each fulfillinga specific purpose or function.

• Permanent rate limit taxes.• Local option taxes.• Bonded debt taxes.• Other qualified obligations.

Definitions of these taxes are found in Oregon Admin-istrative Rule (OAR) 150-294.311.

Both the Oregon Constitution and Oregon law limit theamount and type of tax a local government may impose.The constitution allows a local government to annuallycollect through its permanent rate limit the amount ofproperty taxes generated when that rate is applied to theassessed value of the local government. Revenue fromthe permanent rate can be used for any legal purpose.

When a local government has no permanent rate orwhen the permanent rate does not provide enough rev-enue to meet estimated expenditures, the local govern-ment may ask voters to approve a local option tax.Education service districts are not authorized by law toimpose local option taxes [ORS 280.040(2)].

Local option taxes can be used for general or specificpurposes. Local option taxes used for general operat-ing purposes can be imposed from one to five years.Local option taxes used for capital projects may be im-posed for the expected useful life of the capital project,or 10 years, whichever is less.

The Oregon Revised Statutes allow local governmentsto impose taxes for general obligation or limited taxbond principal and interest without annual voter ap-proval. Levy approval is considered to have beengained when voters originally approved the bonds. Thedebt service levy amount is limited to the repayment ofprincipal and interest necessary to retire the bonds.

An election on a tax measure is approved if 50 percentof the registered voters cast a ballot in favor or the elec-tion is in November of an even-numbered year and amajority of those voting approve the measure. This isreferred to as the “double majority” requirement.

Statutory Tax Limits

Some local governments are subject to statutory taxlimitations. The maximum amount of tax that these cer-

tain local governments can impose for general opera-tions is the lesser of the amount their permanent ratewill raise, plus any local option taxes, or the tax allowedunder the statutory limit. Statutory limits are usually apercentage of the local government’s real market value.For a listing of local governments with statutory tax lim-its, see Appendix C.

Statutory limits do not authorize a local government toimpose a tax. Taxing authority comes from voter ap-proval. Local governments with permanent rates re-ceived voter approval at some point in the past. Newlocal governments must seek voter approval to imposea permanent tax rate; local option taxes must also re-ceive a nod from voters.

The assessor is prohibited from extending on the tax rollany tax that exceeds statutory or constitutional limits(ORS 310.070).

Permanent Tax Rates

A permanent rate is an ad valorem property tax rate ex-pressed in dollars per thousand of assessed value. Noaction of the local government can increase this limit.This rate is levied against the assessed value of prop-erty to raise taxes for general operating purposes. Per-manent tax rate limits were either computed by theDepartment of Revenue for districts existing prior to1997-98; were established by formula for merged, di-vided, or consolidate districts; or are voter-approved fordistricts formed in or after 1997-98.

Only new local governments or local governments thathave never levied a property tax before can seek voterapproval of a permanent tax rate. These local govern-ments can take the question to the voters on any spe-cial or regular election date. See Chapter 11 for detailson tax elections.

Consolidation or Merger

If two or more local governments consolidate or merge,the newly combined local government is given a calcu-lated permanent rate limit. A merger occurs when twoor more districts formed under the same statutory au-thority, providing the same services, agree to operate asone district. One of the districts is the “surviving” dis-trict. A consolidation occurs when two or more districtsagree to dissolve and form a new district providing thesame services as the old districts.

The constitutional limitation in section 11 (3)(d), ArticleXI, applies to the new district. The amount raised by thenew district cannot exceed the amount that would havebeen raised by the separate districts using their perma-nent rate authority.

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To estimate the permanent rate of the new district:

Step 1. For each district, multiply the permanent rate ofthat district by its estimated taxable assessed value todetermine the amount that could have been raised. Usethe estimated taxable assessed value for the first taxyear following the merger or consolidation.

Step 2. Total the amounts calculated in Step 1 to arriveat the total taxes that could have been raised if themerger or consolidation had not taken place.

Step 3. Total the estimated taxable assessed values usedfor each district in Step 1 to arrive at the total assessedvalue of the new district. Again, use the estimated tax-able assessed value for the first tax year following themerger or consolidation.

Step 4. Divide the total estimated taxes that could havebeen raised as calculated in Step 2 by the total estimatedassessed value of the new district as calculated in Step3. The result is the estimated new permanent rate of thenew district. This is the rate the new district uses dur-ing budget preparation.

Step 5. The assessor will repeat the above calculationwhen the actual assessed value is known. The assessornotifies the district of the permanent rate limit calculated.

For budgeting and certifying a rate for the new district inthe first year, the district will estimate the rate using Steps1-4 above. The estimated rate will be extended over thevalue of the new district as long as it is equal to or less thanthe permanent rate calculated by the assessor. Using thiscalculated permanent rate does not require an election.

Division

When a local government divides, the new entities result-ing from the division are limited to a rate that is the sameas the rate of the local government before it divided. Inaddition, the rates cannot raise more tax revenue thanwould have been raised by the local government in theyear of division if it had not been divided.

For more information on boundary changes, see the De-partment of Revenue publication Boundary Change In-formation.

Local Option Taxes

When approved by the voters, local option taxes canbe imposed in addition to the taxes generated by thelocal government’s permanent rate. Local optiontaxes used for general operations can be imposed for upto five years. If the local option taxes are to be used forcapital projects, they can be imposed for up to 10 yearsor the useful life of the project, whichever is less.

“Capital project” is defined in ORS 280.060. It means:

• the acquisition of land upon which to construct animprovement,

• the acquisition of buildings,• the acquisition or construction of improvements,• additions to a building that increase its square

footage,• construction of a building,• the acquisition and installation of machinery and

equipment which will become an integral part of abuilding, or

• the purchase of furnishings, equipment or other tan-gible property with an expected useful life of morethan one year.

Determining the useful life of a capital project is notcomplicated when only one type of capital project is tobe financed by the local option tax. For example, if thetax is requested to purchase a fire truck with a usefullife of nine years, the local option tax can be imposedfor no more than nine years.

However, if the proposed local option tax is to pay forseveral capital projects with different useful lives, thenthe following formula is used to determine the maximumnumber of years the local option tax can be imposed.

Average useful life × Cost = Weight

Total weight ÷ Total cost = Maximum years allowedfor tax

Example:

Item Cost × Useful Life = Weight

2 computers $10,000 2 years 20,0002 patrol cars 80,000 5 years 400,00010 work stations 50,000 5 years 250,000

Totals $140,000 670,000

670,000140,000

= 4.78 or rounded down to 4 years which isthe maximum number of years thelocal option tax can be imposed.

Local option taxes for capital projects with a term of morethan 5 years must be submitted to voters separately fromlocal option taxes with a term of 5 years or less.

If a school district imposes a local option tax and theresulting revenue exceeds the amount determined bythe formula in ORS 327.013(10), the district’s StateSchool Fund grant will be reduced.

General Obligation Bond Taxes

Approval of a general obligation or Bancroft bond is-sue by the voters carries with it authority to levy taxesto pay the bond principal and interest. However, a lo-cal government cannot impose a tax that exceeds theamount necessary to:

1. meet the principal and interest of a single fiscal year,plus

2. any unappropriated ending fund balance necessaryto meet principal and interest payments between

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July 1 and the first tax revenue receipts (turnovers)in November of the following year.

The total tax must include an estimate of taxes not tobe received due to the discount and uncollectibleamounts. (ORS 287.006, 287.072, 328.260, etc.). There isno loss from the constitutional limit on tax collectionsbecause these types of bond levies are not limited.

If other resources are available to the Debt Service Fund,the local government can impose only the taxes neces-sary to balance the fund.

Local governments with questions about their bondingauthority and limitations should refer to the Oregon Re-vised Statute under which they are organized.

Other Qualified Obligations Taxes

A few local governments are able to impose taxes to payfor other qualified taxing district obligations. This debtis often referred to as “gap bonds.” To qualify, the ob-ligations had to have been in existence before Decem-ber 5, 1996, and meet the requirements specified instatute. No new gap bonds can be created.

The portion of the taxing authority being used to repaythe qualified obligations was not reduced when Mea-sure 50 was implemented in 1997-98. Local govern-ments that identified gap bonds when certifying taxesin 1997-98 are the only ones that can impose this typeof tax. This tax authority can continue to be imposeduntil the debt it is repaying is satisfied.

The amount of tax that can be imposed in any year torepay gap bonds is limited to the amount of principal

and interest due on the debt, or the amount of obliga-tion required by the City of Portland’s pension and dis-ability plan.

When the debt is satisfied, the taxing authority for the debtwill be incorporated into the local government’s perma-nent rate. Local governments should contact the Depart-ment of Revenue when “gap bonds” are satisfied so thepermanent rate can be recalculated. For a listing of quali-fying gap bonds and the permanent rates that will replacethem when they are satisfied, see Appendix F.

Urban Renewal Taxes

When an urban renewal agency adopts a renewal planand selects tax increment financing (TIF), the taxablevalue of the property within the urban renewal planarea is identified. This value is referred to as the “fro-zen” base value. The growth in value above the frozenbase is called “increment” or “excess” value. Theamount of revenue available to the urban renewalagency is the amount determined by multiplying the“excess” value by the combined billing tax rates of tax-ing districts which overlap the plan area. This is knownas the “division of tax” or “tax increment” revenue.

The 1997 legislature created what is called a “speciallevy” in addition to TIF for “existing” plans. An “exist-ing plan” is defined as a plan that existed in December1996, and, 1) chose an option, and 2) established a maxi-mum amount of indebtedness by July 1998. For exist-ing plans, an additional amount may be generatedthrough a special levy up to the plan’s maximum au-thority (ORS 457.435).

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A local government may call a tax election when therevenue needed to balance the budget is more than thegovernment’s existing taxing authority.

The tax election process is not tied directly to the bud-get process. However, the two processes are usuallyclosely coordinated. Taxing authority may be voted onbefore the budget process begins, during the budgetprocess, or after the end of the budget process.

The budget committee should include any anticipatedadditional tax authority in its approved budget. In-clude the amount of additional tax being requestedeven if the election has not been held. Holding the elec-tion after the budget committee meetings, but before theadoption hearing, allows the governing body to adopta budget using known taxing authority. If the tax re-quest passes, no revision to the budget is needed beforeit is adopted. If the tax fails, the budget can be revised,or another election scheduled.

If the governing body decides to increase the tax amountabove the amount approved by the budget committeeand hold a second election, republication of the budgetsummary and another budget hearing are required.

When a local government’s taxing authority has notbeen finally determined by June 30 because of a tax elec-tion scheduled in September, the local governmentshould take the following steps:

• By June 30, enact a resolution or ordinance adoptingthe budget and making appropriations incorporatingthe additional taxes, and

• By July 15, send a written request to the county as-sessor for an extension of time to certify tax.

After the election, the local government then adopts theresolution or ordinance to impose and categorize thetaxes. All of the tax certification documents are submit-ted to the assessor by the extension date granted.

More details on how to adopt a budget by June 30 whenthe tax hasn’t been approved by voters are given inOAR 150-294.435(1)(B).

Elections Division

Laws governing the conduct of elections in Oregon areadministered by the Elections Division of the Secretaryof State. Administrative rules and directives are issuedby the Secretary of State to provide uniform electionsadministration.

The Elections Division distributes a series of electionmanuals, including the City Elections Manual, CountyElections Manual, and District Elections Manual, to all 36county clerks who serve as county elections officers.

Chapter 11—Tax ElectionsCopies are then available locally. Persons responsiblefor coordinating elections for a local government shouldwork closely with the county elections officer so elec-tions run smoothly. In most counties, the county clerkwill provide a copy of the appropriate manual to eachvoting district in the county. The Elections Division willalso answer questions and help solve problems.

The manuals provide current election dates and a cal-endar for special districts showing the final filing datesfor various types of elections. Information is also pro-vided on emergency elections for special districts andschool districts. An elections timeline for special dis-tricts, cities, and counties shows the activities as theyoccur in the general order of the election cycle.

Required forms are in the elections manuals and mayhelp answer questions about types of elections, ballot for-mat, and content required by law. For additional help ontaxing ballot measures, call the Department of Revenue.

Remember that the county clerk and the Secretary ofState administer election laws. The Department of Rev-enue administers property tax laws.

An approved ballot measure must follow all electionand taxation laws. If a voter-approved measure fails tomeet the requirements of the law, the Department ofRevenue must void a part or all of the tax (ORS 310.070).

Refer to OAR 150-280.075 for detailed ballot wordingrequirements.

Preparation of a Tax Ballot Measure

The ballot title for a tax measure consists of:

1. Caption: limited to 10 words. It is a title identifyingthe measure.

2. Question: 20-word limit. The question asks the vot-ers if they will allow the district to impose an amountof tax or a tax rate. Examples are: to establish a per-manent rate for local governments that have neverlevied a tax, and to authorize a local option tax forgeneral operating purposes or a specific purpose.State this in a question format which can be answered“yes” or “no.” In addition, a “yes” response to thequestion must mean the voters approve the measure,while a “no” response must mean the voters do notapprove the measure. Note that the word “district”can be substituted if the full name of the local gov-ernment is in the ballot measure summary.

The ballot question must state the length, in years,that the proposed local option tax is to be imposedand the first fiscal year in which the local option taxwill be imposed [ORS 280.070(5)].

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Directly following the question for local optiontaxes this statement is required, “This measure maycause property taxes to increase more than threepercent.” This statement is not included in the 20-word limit [ORS 280.070(4)].

3. Summary: 175-word limit. The explanation is inplain, factual, and nontechnical language. It de-scribes the specifics of the question without advo-cating a “yes” or “no” response to the question.

The first sentence of the summary is the followingstatement, unless the election is held in Novemberof an even-numbered year: “This measure may bepassed only at an election with at least a 50 percentvoter turnout.” (ORS 250.036) This statement is notincluded in the 175-word limit.

The summary must include the total amount of taxto be raised by the measure. If the local option tax isin the form of a rate, the summary must also give anestimate of the amount of tax to be raised each yearin which the tax will be imposed. This statement isnot included in the 175-word limit [ORS 280.075(2)].

When asking for approval of a fixed-dollar amount tax,you may decide to include an estimated tax impact inthe summary. An estimated tax impact gives the esti-mated rate per $1,000 that is expected to result fromthe amount requested. This information allows votersto estimate how the new tax will affect their property.

If an estimated tax impact is given in the summary, in-clude the following statement: “The estimated tax costfor this measure is an ESTIMATE ONLY based on in-formation available from the county assessor at thetime of the estimate.” This statement is not counted aspart of the 175-word limit. This statement applies onlyto fixed-dollar amount local option tax measures.

In some local governments, an ordinance or resolutionis required declaring the intent to hold an election. Thereare also publication requirements for the ballot measure.See the Secretary of State’s Local Election Manual for fur-ther information, or contact your county elections officer.

Local Option Tax for One Year

Ballot language asks voters to approve taxes repre-sented as either an amount in dollars and cents or a taxrate per $1,000 of assessed value (ORS 280. 075). Thefollowing example is for rate local option tax.

Sample caption:

One-Year Local Option Tax.

Sample question:

Shall (district name) impose $(rate) per $1,000 of as-sessed value for operating purposes for (number ofyears) beginning (fiscal year)? This measure may causeproperty taxes to increase more than three percent.

Sample summary:

This measure may be passed only at an election withat least a 50 percent voter turnout. (Note: The first sen-tence of the summary is not required if the election isheld in November of an even-numbered year. If it is re-quired, it is not counted in the 175 word limit.)

Next, include the summary of 175 words or less. An es-timate of the amount the rate will raise must be in-cluded, however the estimate of the amount is notincluded in the 175 word limit.

Local Option Taxes for Multiple Years

A local government can request a dollar amount or a taxrate for either operating purposes or capital projects.Local option taxes to be used for general operations canbe imposed for up to five years. If the local option taxis to be used for capital projects, it can be imposed forup to 10 years or the useful life of the project, which-ever is less.

Fixed-Dollar—Multiple-Year Tax

Sample caption:

Six-Year Capital Projects Local Option Tax.

Sample question:

Shall (district name) impose $(dollar amount) for (num-ber of) years for purchase of a fire truck beginning in(fiscal year)? This measure may cause property taxes toincrease more than three percent.

Begin the summary with the same statement describedunder one-year local option tax. Show the total amountof money to be raised by the multiple-year tax in thesummary portion of the ballot measure, as required byORS 280.075(1).

Rate—Multiple-Year Tax

The contents of the question and the summary are dif-ferent than the fixed-dollar multiple-year tax. The cap-tion can be worded the same; the question is different.

Sample question:

Shall (district name) impose $(rate) per $1,000 of as-sessed value for (number of) years to purchase a firetruck beginning (fiscal year)? This measure may causeproperty taxes to increase more than three percent.

Unless the election is in November of an even-num-bered year, the ballot summary must begin with thestatement: “This measure may be passed only at an elec-tion with at least a 50 percent voter turnout.” The sum-mary for a rate multiple–year tax must contain anestimate of the amount of taxes to be raised in each yearthat the tax will be imposed. [ORS 280.075(2)].

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If the approved tax rate raises more than the estimatedamount shown in the ballot summary, the excess rev-enue is treated as a budget resource for the followingfiscal year.

Permanent Rate Election

New local governments and ones that have never im-posed a property tax before are allowed to seek voterapproval for a permanent rate [Article XI, section11(3)(c)(A)]. The question must include the followinginformation:• The tax rate per $1,000 of assessed value of the pro-

posed permanent rate limitation.• The first fiscal year in which the proposed permanent

rate limitation will be imposed.

The following ballot language is recommended:

Sample caption:

Permanent Rate Limitation

Sample question:

Shall (district name) establish $(rate) per $1,000 of as-sessed value as a permanent rate limit beginning (fis-cal year)?

Unless the election is in November of an even-num-bered year, the ballot summary must begin with thestatement: “This measure may be passed only at an elec-tion with at least a 50 percent voter turnout.” Estimatesof tax amounts are usually not included in this type ofmeasure because the estimate would only be valid forthe first year in which the permanent rate is imposed.If one is included, the disclaimer language that the taxcost is an estimate only must be used.

Bond Election

Ballot questions seeking approval of exempt bondswhen the principal and interest will be paid by prop-erty taxes must include this statement directly after thequestion:

“Question: (herein the question is stated) If the bondsare approved, they will be payable from taxes on prop-erty or property ownership that are not subject to thelimits of sections 11 and 11b, Article XI of the OregonConstitution.” ORS 250.037(1)

Unless the election is in November of an even-num-bered year, the ballot summary must begin with thestatement: “This measure may be passed only at an elec-tion with at least a 50 percent voter turnout.” (ORS250.036) The ballot summary must also contain a rea-sonably detailed, simple and understandable descrip-tion of the use of the bond proceeds [ORS 250.037(3)].

Election Dates for Tax Purposes,ORS 255.345

1. Second Tuesday in March.2. Third Tuesday in May.3. Third Tuesday in September.4. First Tuesday after the first Monday in November.

Emergency Elections

Oregon law provides that emergency elections can beheld under extraordinary circumstances. See the follow-ing laws for specific requirements:

• County emergency elections, ORS 203.085(2).• City emergency elections, ORS 221.230(2).• Special district elections, ORS 255.345(2).• Schools, ESDs, and community colleges, ORS 255.355.

Contact the county clerk or county elections officer forfiling and notification requirements.

All local governments, including cities and counties,must conduct tax elections through the county electionsoffice. Submit “Notice of Measure Election” to thecounty elections office the specified number of daysbefore the election date. The notice must give the elec-tion date and the ballot measure itself.

The elections officer will publish the notice of electionin the next available edition of the newspaper. The no-tice will include a statement that a voter may file a pe-tition for review of the ballot title.

Filing with County Assessor

Local governments should submit to the county asses-sor by July 15 as part of the tax certification documentstwo copies of tax measures that are voter-approved. Theassessor will forward one copy to the Department ofRevenue. Do not submit sample ballots for measuresnot approved by voters.

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Budget Hearing

After the “Notice of Budget Hearing and FinancialSummary” is published, the budget hearing must takeplace at the time and place published. The governingbody conducts the hearing and receives testimony frompersons present. It gives consideration to matters dis-cussed at the hearing (ORS 294.430). Keep careful min-utes of the budget hearing proceedings.

The governing body does not have to adopt the budget,make appropriations, or declare and categorize the tax atthe budget hearing. If the governing body refrains fromadopting the budget until as close as possible to June 30,it allows for adjusting the budget to reflect changes in theresources or expenditures from what was estimated ear-lier. Formally adopting the budget, making appropria-tions, declaring and categorizing the taxes can be done atany regularly scheduled and properly advertised publicmeeting of the governing body after the budget hearingand before July 1. For biennial budgets, see Chapter 15.

How to Adopt the Budget

Once the budget hearing has been held and testimonyhas been heard and considered, the governing bodyenacts a resolution or ordinance adopting the budget(ORS 294.435).

The adopted budget must include:

1. The detailed expenditures and resources for eachfund, organizational unit, program, or activity;

2. The detailed actual information for the first and sec-ond preceding years;

3. The adopted budget information for the currentyear;

4. The proposed and approved budget figures for theupcoming year; and

5. The adopted figures as they were finally enacted[ORS 294.376 and 294.435(2)].

The governing body can adopt the budget only after thebudget hearing. The budget hearing should be sched-uled and the budget document prepared far enough inadvance to allow the budget to be adopted before thebeginning of the new fiscal year on July 1.

Considerations in Adopting the Budget

The governing body must take all information availableinto consideration when adopting the budget. This in-formation includes the public testimony, both for andagainst the budget, presented at the budget hearing.The governing body must consider any new informa-tion affecting the upcoming year’s resources or expen-ditures [ORS 294.435(1)].

Chapter 12—Adopting the BudgetIt is important that the governing body carefully con-sider the budget it adopts. Only limited changes to thebudget are allowed after it has been adopted. Generally,changes are not allowed for resources and expendituresthat the governing body had knowledge of beforeadopting the budget. It is for this reason that all infor-mation must be collected during the budget process andincluded in the budget document upon final adoption.

Fiscal Powers of the Governing Body

The governing body of the local government has thepower to:

Before July 1:

• Impose taxes (ORS 294.435).—Republish the financial summary and hold a sec-

ond hearing before July 1 to raise the tax amountabove the rate or amount approved by the bud-get committee.

—Reduce the tax amount.• Adjust resources (ORS 294.435).

—Take notice of underestimated resources and:•Make a corresponding reduction in the

taxes, or•Provide for additional expenditures (see

“Adjust requirements” below).—Take notice of overestimated resources and make a

corresponding reduction in expenditures.

• Adjust requirements (ORS 294.435).—Reduce or eliminate any requirement or proposed

expenditure.—Increase expenditures by not more than $5,000 or

10 percent, whichever is greater, of budget com-mittee approved total in each or any fund.

—Increase expenditures by more than $5,000 or 10percent of any fund by republishing the budgetand holding a second hearing before July 1.

• Amend the adopted budget before July 1 (ORS294.435).

After July 1:

• Adopt a supplemental budget (ORS 294.480).

The supplemental budget is based on unforeseencircumstances or anticipated resources realized af-ter the regular budget was adopted.

• Make resolution transfers (ORS 294.450).

Transfer appropriations and resources within anyfund or from the general fund to any other fund.Transfers from special funds to the general fund arelimited to those provided for in the adopted budget.

• Approve or disapprove any expenditure.

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• Make resolutions to expend specific purpose grants,gifts, bequests, or devises received after the budgetwas adopted (ORS 294.326).

• Make resolutions to expend proceeds of certainbonds [ORS 294.326(5)].

• Make resolutions to authorize the payment of debtservice on certain bonds [ORS 294.483(2)].

Significance of the July 1 Date

An appropriation is the authorization of the governingbody to spend money and incur obligations for specificpurposes. Appropriations are limited to a single fiscalyear (ORS 294.311). That means all spending authorityof a local government ends each June 30. A local gov-ernment does not have legal spending authority for thenew fiscal year until the budget is adopted and appro-priated by resolution or ordinance.

Since July 1 is the beginning of a new fiscal year, it iscritical that a local government have an adopted bud-get and proper appropriations on July 1. Without anadopted budget and proper appropriations, the localgovernment has no legal authority to spend money orincur debt. The governing body must keep this in mindif it appears that the budget will not be adopted untilafter July 1. Spending by the governing body for the newfiscal year without proper appropriations is unlawful.All governing body members should be familiar withORS 294.100; this statute discusses the personal liabil-ity of a public official of a municipal corporation mak-ing unlawful expenditures.

Resolution or Ordinance

The resolution is a formal expression of the opinion orwill of an official body. An ordinance has the characterof an enactment of law by an established authority. Forpurposes of the Local Budget Law, a resolution or or-dinance by the local governing body provides the legalauthority to establish or dissolve funds, make appro-priations for expenditures, adopt a budget, impose andcategorize taxes, and all other legal actions pertainingto budgeting or making tax levies.

Sample resolutions are shown at the end of this chap-ter. Example 1 is for organization unit–style budgets. Itcontains separate statements for imposing and catego-rizing taxes. Example 2 is for program–style budgets.It gives an example of a combined resolution statementfor imposing and categorizing taxes. It also shows taxesimposed as a rate.

Formally Adopting the Budget

Sometime after the public hearing, at a regularly sched-uled meeting, the governing body must enact theproper resolutions or ordinances to adopt the budget,make appropriations, and declare and categorize the

taxes. Adopt the budget by June 30. The resolution orordinance adopting the budget should state the totalamount of all the budget requirements.

Making Appropriations

Include a schedule of appropriations in the resolutionor ordinance making appropriations. This schedule pro-vides the local government with legal spending author-ity throughout the fiscal year.

The schedule must identify the appropriations in accor-dance with ORS 294.435(3). Some common errors to beavoided are:

• Do not simply refer to the adopted budget whenmaking the appropriations in the resolution. For ex-ample: “Be it resolved that appropriations arehereby made as outlined in the adopted budget.”This is an example of an incorrect schedule of ap-propriations.

• Do not lump appropriations into “miscellaneous,”“other,” or “special” categories. Use the appropria-tion categories allowed by Local Budget Law.

ORS 294.435(3) specifies how appropriations must bemade in the resolution or ordinance. The object classi-fications (major expenditure categories) in the budgetprovide an informative breakdown of the budget. Theyalso serve as a basis for the appropriations. Make aseparate appropriation for each organizational unit orprogram of each fund. Chapter 6, The Budget Docu-ment, explains organizational units and programs.Where programs or organizational units do not exist,appropriate amounts for personal services, materialsand services, and capital outlay.

Items that cannot be specifically identified to an orga-nizational unit, or program (transfers, debt service, op-erating contingency, etc.) must be appropriatedseparately in the fund. Also appropriate items sepa-rately when the terms “organizational units” or “pro-grams” do not apply. Refer to examples on pages 55 and56.

Remember, an unappropriated ending fund balancemay be included in the detailed budget requirements.However, do not appropriate it. It is not intended to bespent in the fiscal year in which it is budgeted. For con-trol purposes, the unappropriated ending fund balancemay be listed or footnoted in the appropriation resolu-tion.

For local governments where the term “organizationalunit” or “program” has no application, the appropria-tions must have separate amounts for:

• personal services,• materials and services,• capital outlay,• debt service,

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• special payments,• interfund revenue transfers, and• a general operating contingency, if applicable, for the

fund.

Requirements Not Appropriated

Both the unappropriated ending fund balance and re-served for future expenditure are requirements. Theyare not appropriated expenditures. Show them as lineitems and include them in the total for each fund whendetermining the taxes estimated to be received. Theymust be included in the totals for each fund in the pub-lication of the budget’s financial summary.

However, do not appropriate the unappropriated end-ing fund balance or the reserved for future expendi-ture budgetary requirement in the resolution orordinance. They may be shown as a footnote in the reso-lution. They are not intended to be spent and, therefore,should not be appropriated.

Limits and Penalties Associated with Appropriations

After the budget is adopted, the local government muststay within the appropriations set for the fiscal year. Itis illegal to overspend an appropriation [ORS 294.100and 294.435(4)]. The fiscal officer must pay close atten-tion to each appropriation throughout the year to avoidoverspending.

Since Local Budget Law directs that appropriationsmust be made for each fund by organizational unit, pro-gram or object classification, it is not necessary that eachline item be strictly enforced in its expenditure. If oneline item is overexpended, adjust one or more of theother line items to keep expenditures within the limitsof the appropriation.

Example:

General Fund RequirementsMaterials and Services

Office supplies $1,000Contract services 800Utilities 2,000

Total $3,800

Resolution Making AppropriationGeneral Fund

Materials and Services $3,800

During the fiscal year, it is found that contract servicesexpenses will exceed the budgeted amount by $100. How-ever, the utilities expenses will be less than budgeted. Nogoverning body action is needed to pay the $900 contractservices expense as long at the total appropriation of$3,800 for Materials and Services is not exceeded.

ORS 294.435(4) states that when proper appropriationshave been fixed, “Thereafter no greater expenditure, or

encumbrance . . . of public money shall be made for anyspecific purpose other than the amount appropriatedtherefore except as provided in ORS 294.326, 294.440,294.450 and 294.480.”

The penalties for unlawful spending of public moneyare established under ORS 294.100. “It is unlawful forany public official to expend any money in excess of theamounts, or for any other or different purpose than pro-vided by law.”

The public official “shall be civilly liable for the returnof the money by suit of the district attorney of the dis-trict where the offense is committed, or at the suit of anytaxpayer of such district.”

Declaring the Ad Valorem Taxes

Local governments that are using ad valorem propertytaxes to balance their budgets must declare the taxamount or rate of each levy by resolution or ordinance.The resolution or ordinance should state the amountof all property taxes or the rate being certified to thecounty assessor [ORS 294.435(1)]. Property taxes areimposed for the tax year on the assessed value of alltaxable property within the district.

The amount and/or rate of property taxes declared inthe resolution or ordinance must be the same amountand/or rate shown on the Notice of Property Tax (FormLB-50/ED-50). See Chapter 13 for more information oncertifying ad valorem property taxes.

Declaring Urban Renewal Taxes

Every year an existing urban renewal plan must declarethe amount of revenue it wishes to receive from divi-sion of tax and/or a special levy. The tax the plan canask for is determined by its “option.” Implementing leg-islation for Measure 50 created three options for financ-ing urban renewal indebtedness for existing plans. Themunicipality that activated the agency was directed tochoose, by ordinance, one of the three options for eachexisting urban renewal plan that included a provisionfor a division of ad valorem tax. The option chosen bythe municipality cannot be changed [ORS 457.435(4)].New plans are not given a choice of options, they onlyreceive the full division of tax amount.

The governing body of the agency must pass a resolu-tion declaring the amount of tax they wish to receive forthe year and submit that resolution and a matchingForm UR-50 to the assessor by July 15.

Categorizing Tax

The governing body must declare through resolution orordinance the tax limitation category(ies) into which thelocal government’s tax is to be placed (ORS 294.435).The tax categories are education, general government,

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and excluded from limitation. This resolution or ordi-nance is the basis for the certification of tax limitationcategory that is submitted to the assessor (ORS 294.555).

The categorization of tax may be included in the reso-lution or ordinance imposing the ad valorem tax. Sucha resolution would show the amount of ad valorem taxby fund by category. For example, a nonschool localgovernment could declare the tax by fund and categoryas follows:

General ExcludedGovernment fromLimitation Limitation

General Fund $200,000Debt Service Fund $111,000Category Total $200,000 $111,000

Total Tax $311,000

See Chapter 13 for more information about tax limita-tion categories and certifying ad valorem property taxesto the assessor.

Adopting the Budget Without Total TaxingAuthority Approval

If a tax request election is held after July 1, the govern-ing body must still adopt and appropriate the budget be-fore June 30. This legal requirement gives the localgovernment authority to make expenditures after July 1.

The governing body must adopt and appropriate thebudget in full, anticipating approval of the tax bal-lot measure. However, the district should not re-solve to impose or categorize the tax until it hasvoter approval.

Extension to Certify Taxes/Late Tax Failure

Adopt and appropriate the budget by June 30, even ifa part of the taxing authority still requires voter ap-proval. The local government must request by July 15an extension from the assessor to certify its taxes. Thewritten request must state the reason for the request andif the district will be levying to pay for bonded debt. Noother documents need to be submitted to the assessorat this time [OAR 150-294.555(2)-(A)].

The assessor may grant an extension up to October 1[ORS 310.060(8)]. Tax notices submitted after October 1cannot be placed on the tax roll.

If the local option tax fails, the governing body, by or-dinance or resolution after a public hearing, adjustsbudgeted resources and reduces appropriations to re-flect a decrease in available resources [OAR150-294.435(1)-(B)]. The governing body can reduce ex-penditures and revenues without republishing the bud-get summary.

Reducing appropriations and amending the budget es-timates after a local option tax fails require decisionsby the governing body. The tax failure could change thefinancial plan for the fiscal year. It is advisable to be-gin this decision-making process with enough timebefore the election to prepare an amended budget.Then if the voters reject the local option tax request, theamended budget is ready in time to meet the extendedfiling deadline provided by the assessor.

The figures in the adopted column of the budget detailsheets must match the figures appropriated in theamended resolution. The governing body must adoptthe amended budget, which will reflect any reductionin appropriations by fund, and resolve to impose thetaxes as approved by the voters in the amended budget.

An authorized official of the municipal corporationdates and signs the resolution. The amended budget,revised appropriations and taxing authority then be-come official for the rest of the current fiscal year.

When the local government’s taxing authority is finallydetermined, it must submit the following to the countyassessor by the extended filing date:

The documents submitted to the assessor’s office in-clude the following:• two copies of the notice of property tax, which in-

cludes the categorization certification and the state-ment of the budget committee approved taxamounts;

• two copies of the resolution statements that adopt thebudget, make appropriations, and declare and cat-egorize taxes; and

• two copies of the ballot measure for any tax that re-ceived voter approval.

Distribution of the Tax CertificationDocuments

By each July 15, a local government that is subject toLocal Budget Law, and imposes an ad valorem tax ora “tax on property,” submits the required documentsto the county assessor and, where applicable, the taxsupervising and conservation commission. The docu-ments include:

• Two copies of the notice of property tax containingthe categorization certification and the statement ofthe budget committee approved tax amounts.

• Two copies of the resolution statements that adopt thebudget, make appropriations, and declare and catego-rize taxes.

• Two copies of the ballot measure for any tax that re-ceived voter approval.

• Your complete budget only if requested by the asses-sor or the Department of Revenue.

These statutory requirements are found and cross-refer-enced in ORS 294.555(2) and ORS 310.060. Administrative

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Rule 150-294.555(2)-(B) offers a more detailed explanationof the required procedure and documentation.

All local governments that impose an ad valorem taxmust submit two copies of the tax certification documentand resolutions to the assessor in the county where theprinciple office of the local government is located.

If a local government is located in more than onecounty, in addition to the distribution described above,one copy of all the documents must be sent to each as-sessor of the other counties in which the governmentis located [ORS 310.060(7)].

If a local government, which is subject to Local BudgetLaw, cannot levy or chooses not to impose an ad valo-rem tax, it must file a copy of the resolution adoptingand appropriating the budget with the Department ofRevenue [ORS 294.555(1)]. Send resolutions to Depart-ment of Revenue, Property Tax Division, PO Box 14380NE, Salem OR 97309–5075.

Not later than September 30 of each year, provide acomplete copy of the budget document to the clerk ofthe county where the principal office of the taxing dis-trict is located. If the taxing district is located in morethan one county, provide a copy to the clerk of eachcounty in which any part of the district is located [ORS310.060(7)].

When required, submit one copy of the budget documentto the tax supervising and conservation commission.

Furnish a copy of the budget document to the countytreasurer if the treasurer makes payments for bonds is-sued by the local government.

School districts are required to submit copies of thebudget document to the Department of Education andtheir educational service districts.

Do not submit copies of the budget document to thecounty assessor unless requested to do so.

Examples of Resolutions Required by ORS 294.435

Example 1—Organizational Unit Budget:

Resolution Adopting the Budget

Be it resolved that the City Council of the City of Baylor hereby adopts the budget for fiscal year 2000-2001 in thesum of $788,406 now on file at the City Hall.

Resolution Making Appropriations

Be it resolved that the amounts for the fiscal year beginning July 1, 2000, and for the purposes shown below arehereby appropriated as follows:

General Fund

Administration Department $50,703Police Department 131,103Fire Department 27,170Non-Departmental:

Transfer to Fire Equipment Reserve 7,500General Operating Contingency 5,000

Fund Total $221,476

Utility Fund

Personal Services $112,730Materials and Services 118,700Capital Outlay 1,000Transfer to Debt Service Fund 2,462Fund Total $234,892

Debt Service Fund

Debt Service $113,000Fund Total $113,000

Community Center Fund

Materials and Services $7,000Transfer to Debt Service Fund 4,300Fund Total $11,300

Street Fund

Materials and Services $38,500Capital Outlay 35,000Contingency 5,000Fund Total $78,500

Fire Equipment Reserve Fund

Capital Outlay $-0-

Resolution Imposing Taxes

Be it resolved that the City Council of Baylor hereby imposes the taxes provided for in the adopted budget in theaggregate amount of $230,995; and that these taxes are hereby imposed for tax year 2000-2001 upon the assessedvalue of all taxable property within the district.

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Resolution Categorizing Taxes

Be it resolved that the City Council of Baylor hereby categorizes the taxes as follows:

ExcludedGeneral from

Government Limitation

General Fund $131,064Debt Service Fund $99,931

See Example 2 for how to impose taxes as a rate, and how to combine the statements imposing and categorizing taxes.

Example 2—Program Budget:

Resolution Adopting the Budget

Be it resolved that the Board of Directors for Fire District #20 hereby adopts the budget for 2000-2001 in the sumof $162,661 now on file at the District Fire Station.

Resolution Making Appropriations

Be it resolved that the amounts for the fiscal year beginning July 1, 2000, and for the purposes shown below arehereby appropriated as follows:

General Fund

Personal Services $26,495Materials and Services 37,576Capital Outlay 51,830Transfer to Equipment Reserve 5,000General Operating Contingency 4,000Fund Total $124,901

Equipment Reserve Fund

Capital Outlay $27,000Fund Total $27,000

Debt Service Fund

Debt Service $10,760Fund Total $10,760

Note: This district’s appropriations are by category (object classification), since the district has no organizationalunits.

Resolution Imposing and Categorizing Taxes—Combined

Be it resolved that the Board of Directors for Fire District #20 hereby imposes the taxes provided for in the adoptedbudget at the rate of $2.34 per $1,000 of assessed value for operations and in the amount of $9,450 for bonds;and that these taxes are hereby imposed and categorized for tax year 2000-2001 upon the assessed value of alltaxable property within the district.

ExcludedGeneral from

Government Limitation

General Fund $2.34/$1000Debt Service Fund $9,450

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Chapter 13—Certifying Taxes ImposedBy July 15 each year, every local government that has theauthority to impose ad valorem property taxes or im-pose a tax on property must give notice of the tax to thecounty assessor [ORS 310.060(1)]. If the local govern-ment needs an extension of time to file its notice of taxes,the extension must be requested in writing by July 15.

Notice of Ad Valorem Property Taxes

After the budget has been adopted, the local governmentmust notify the county assessor by July 15 of the amountand/or rate of ad valorem taxes that it will be imposing.This is done by submitting Form LB-50 for non-schoolsor Form ED-50 for education districts. These forms areprovided each year by the Department of Revenue. Usethe form for the correct fiscal year and carefully followthe instructions when completing the forms.

By July 15 of each year, urban renewal agencies providenotice to the assessor of the amount of urban renewaldivision of tax and/or the amount of special levy foreach plan. In addition to the amounts being requested,the agency notifies the assessor that the agency has theresponsibility and the authority to place such amountson the tax roll (ORS 457.440). This is done by submit-ting Form UR-50, Notice to Assessor.

The assessor and the Department of Revenue use the in-formation on the LB-50, ED-50, or UR-50 to verify that thelocal government’s tax is within constitutional and statu-tory limits as required in ORS 310.070. If it is found thatthe tax exceeds the constitutional or statutory limits, theDepartment of Revenue notifies the local government andthe county assessor that the tax must be reduced.

If the Department of Revenue determines that a localgovernment has not complied with Local Budget Law,it can request that the local government reduce its tax.The local government may contend that Local BudgetLaw was followed and refuse to reduce its tax. The de-partment may then file an appeal with the Oregon TaxCourt. The department has 30 days from the time thenotice of tax is submitted to the county assessor to filean appeal (ORS 294.485).

Statement of Taxes Approved by the BudgetCommittee

A statement of the taxes approved by the budget com-mittee is part of the notification of taxes filed with theassessor (ORS 294.555). This statement sets a limit on thetaxes that the assessor can extend on the roll, regardlessof what the local government’s full taxing authority maybe. The governing body can impose more tax than ap-proved by the budget committee only after republish-

ing the amended budget summary and holding anotherhearing [ORS 294.435(1)].

The statement of taxes approved by the budget commit-tee is contained in Form LB-50 and Form ED-50; eitheris filed with the county assessor by July 15.

Notice of Other Taxes on Property

Fees, charges, assessments, and non ad valorem taxesmay fall within the definition of “taxes on property”given in ORS 310.140(1).

“Tax on property” means any tax, fee, charge or assess-ment imposed by any government unit upon propertyor upon a property owner as a direct consequence ofownership of that property, but does not include in-curred charges or assessment for local improvements...”

“Taxes on property” are subject to the limitations imposedby Article XI, section 11b, of the Oregon Constitution.

If a local government determines that a fee, charge, as-sessment, or non ad valorem tax is a “tax on property,”then it must be certified to the county assessor by July15 so that it can be subjected to the constitutional limi-tation and collected by the property tax system.

The local government must submit to the assessor acomplete list of the properties, by assessor’s accountnumber, on which fees, charges, or assessments are tobe imposed. It must show the amount of the fee, charge,or assessment which is imposed uniformly to each prop-erty, such as, $3 on each account. If the fee, charge, orassessment is not uniform, it must show the amount im-posed on each property, such as, $1.50 per acre fee—Account 12345 $45, Account 12356 $40.50 [ORS310.060(3)(a)].

The required listings are submitted to the county asses-sor with Form LB-50 (Notice of Property Tax . . .).

Certification of Limitation Category

Local governments are also required to notify the asses-sor of the tax limitation category in which their ad va-lorem tax or other tax on property is to be placed [ORS310.060(2)(h)&(3)(b)].

Tax limitation categories are required by Article XI, sec-tion 11b, of the Oregon Constitution and further ex-plained in ORS 310.150. There are three categories intowhich taxes can be placed:

1. Taxes imposed to support the public school systemgo in the “Education” category;

2. Taxes imposed to support other government opera-tions go in the “General Government” category; and

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3. Taxes levied to pay exempt bonded indebtedness goin the “Excluded from Limitation” category.

Oregon Revised Statutes 310.140 through 310.155 willhelp local governments determine the category(ies) inwhich to place their taxes.

The certification of tax limitation category is containedin the Form LB-50/UR-50/ED-50 which is filed with thecounty assessor by July 15.

Budget Document and Notice of Tax

Local governments that are subject to Local Budget Laware required as part of their tax notification to submittwo copies of the resolution adopting and appropriat-

ing the budget, and imposing and categorizing the taxto the county assessor. See the Chapter 12 section onDistribution of the Tax Certification Documents formore details.

Do not submit copies of the budget document to thecounty assessor unless specifically requested.

Submit a complete copy of the budget document to thecounty clerk by September 30. If your district is locatedin more than one county, provide a copy to the clerkof each county in which it is located.

School districts must submit a hard copy of their com-plete budget documents to their education service dis-trict and the Department of Education by July 15.

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Chapter 14—Budget Changes After AdoptionAfter July 1 when local government is operating withinthe adopted budget for the current fiscal year, changesin appropriated expenditures are sometimes necessary.Appropriations may have to be decreased or increased.For biennial budgets, see Chapter 15.

Budget Reduction

If a local government will not realize the amount of re-sources it estimated, and this shortfall will not be offset byreceipts of another resource in the same fund, the amountof the appropriations and expenditures should be reduced.

A governing body after a public hearing can adjustbudgeted resources and reduce expenditures by ordi-nance or resolution to reflect a decrease in resources[ORS 294.435(6)]. A shortfall in revenue can be re-vealed by periodic financial reports, a procedurewhich should be a fundamental administrative prac-tice of all local governments.

Resolution Transfers

An appropriation is the authority granted by the gov-erning body to make expenditures and to incur obliga-tions for specific purposes. It is limited to one fiscal year[ORS 294.311(3)]. Appropriations are also a legal limi-tation on the amount of expenditures that can be madeduring the fiscal year [ORS 294.435(4)]. A localgovernment’s appropriations are detailed in the reso-lution or ordinance making appropriations. Examplesare shown at the end of Chapter 12.

It often becomes necessary after the budget is adoptedto increase the total expenditures of a fund or an objectclassification. One way to accomplish this is to transferappropriation authority, and in some cases, resources.A transfer of appropriation is a decrease of one exist-ing appropriation and a corresponding increase of an-other existing appropriation [OAR 150-294.450(3)(1)].

To transfer appropriations and resources, the govern-ing body must pass a resolution or ordinance. The reso-lution or ordinance must state the need for the transfer,the purpose of the expenditure, and the amount to betransferred [ORS 294.450(1)&(3)].

Transfers can occur either within a fund, or from thegeneral fund to any other fund. Resolution transferscannot move appropriations between special revenuefunds or from a special revenue fund to the generalfund [ORS 294.450(4)]. For the purposes of resolution

transfers, all funds except the general fund are consid-ered special revenue funds [OAR 150-294.450(3)].

Intrafund Transfers

Appropriations can be transferred within a fund from anexisting appropriation to another existing appropriation[OAR 150-294.450(3)]. For example, within a generalfund, appropriations can be transferred by resolutionfrom the existing materials and services appropriation tothe existing capital outlay appropriation. The materialsand services category is decreased and capital outlay isincreased by a corresponding amount. The net change inthe fund’s total appropriations is zero.

During the fiscal year, an appropriation category can-not be created through a resolution, except as providedin ORS 294.326 or OAR 150-294.450(3). If a new appro-priation category is needed during the fiscal year, asupplemental budget will probably be required.

Intrafund resolution transfers do not require the trans-fer of resources. No additional revenue is received bythe fund, the expenditures are just shifted around.

Interfund Transfers

Appropriations can be transferred during the fiscal yearfrom the general fund to another fund by a resolutionor ordinance. A transfer of resources is usually requiredwhen appropriations are moved between funds. Re-sources by themselves cannot be transferred betweenfunds. If the general fund does not have an appropria-tion category for “transfer to other funds,” one may becreated as part of the resolution or ordinance [OAR150-294.450(3)(4)]. This is the only circumstance underwhich a budget appropriation category may be createdby resolution or ordinance during the fiscal year.

Appropriations in the receiving fund are increased bythe amount of the transfer, and the resources availableto that fund are also increased by the amount trans-ferred from the general fund. Appropriations in the gen-eral fund are reduced as are the resources. Expendituresin the general fund are then limited by the reduced ap-propriation authority and reduced resources.

Example:

As the fiscal year begins, the city has set up its GeneralFund and Utility Fund appropriations by resolution asshown on the following page.

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Existing Appropriations in Resolution

General Fund Utility FundAdministration $50,703 Personal Services $112,730Police 131,103 Materials & Services 118,700Fire 27,170 Capital Outlay 1,000Nondepartmental: Transfer/Debt Service 2,462

Transfer/TruckReserve 7,500Contingency 5,000

Total $221,476 Total $234,892

Total Appropriations $456,368

Because of the required repair of a major water leak, $2,000 of “contingency” in the General Fund will be transferredto the Utility Fund, and the budgeted transfer to the Debt Service Fund out of the Utility Fund will not be made.

Step 1—Intrafund Transfer

General Fund Appropriation TransferExisting Changes Adjusted

Administration $50,703 -0- $50,703Police 131,103 -0- 131,103Fire 27,170 -0- 27,170Nondepartmental:

Transfer/Truck Reserve 7,500 -0- 7,500Contingency 5,000 (2,000) 3,000Transfer/Utility (new) -0- 2,000 2,000

Total $221,476 -0- $221,476

The General Fund contingency appropriation of $2,000 is transferred to the newly created appropriation categoryof “transfer to the Utility Fund.” This creates a new requirement and allows the transfer of $2,000 of the GeneralFund resources to the Utility Fund.

Utility Fund Appropriation TransferExisting Changes Adjusted

Personal Services $112,730 -0- $112,730Materials & Services 118,700 -0- 118,700Capital Outlay (increased) 1,000 2,462 3,462Transfer/Debt Service (reduced) 2,462 (2,462) -0-Total $234,892 -0- $234,892

The Utility Fund debt service transfer appropriation is moved to capital outlay.

Step 2—Interfund Transfer

Appropriation Transferred from General Fund and Received in Utility FundAdjusted Changes Final

Personal Services $112,730 -0- $112,730Materials & Services (increased) 118,700 $1,500 120,200Capital Outlay (increased) 3,462 500 3,962

Total $234,892 $2,000 $236,892Utility Fund ResourcesTransfer from GF (new) -0- $2,000 $2,000

The Utility Fund is increased in appropriations and resources so the additional expenditures can be made.

Total Appropriations After TransfersGeneral Fund $221,476Utility Fund 236,892

$458,368

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Borrowing and Interfund Loans

Interfund Loans

Local Budget Law allows a local government to loanmoney from one fund to another. ORS 294.460 allowslocal governments to borrow internally, provided sucha loan is authorized by an official resolution or ordi-nance. The resolution or ordinance must state the fundfrom which the loan is made, the fund to which the loanis made, the purpose of the loan, and the principalamount of the loan. If interest is to be charged, this factshould also be stated in the resolution or ordinance. Ifthe loan is an operating loan, this action must providethat the loan will be repaid to the fund from which itwas borrowed by the end of the fiscal year, or be bud-geted for repayment in the coming fiscal year.

If the loan is a capital loan, the resolution or ordinancemust set forth a schedule under which the principal andinterest is to be budgeted and repaid. It must also statethe rate of interest. Capital loans must be repaid in fullwithin five years of the date of the loan.

If the loan will be repaid in the current fiscal year, noother action by the governing body is necessary to re-pay the loan. The current budget is not adjusted toshow the loan transaction. The local government’s ac-counting records will show the loan and repayment.

If the loan will be repaid in the coming fiscal year(s), theloan repayment must be budgeted and separate appro-priations established for the repayment. Do not show theloan amount as a deficit resource [OAR 150-294.361(1)(B)].This is not an acceptable budgeting practice.

Loans may not be made from debt service funds. Loansmay not be made from moneys credited to any fundwhen, under applicable constitutional provisions, themoneys are restricted to specific uses unless the pur-pose for which the loan is to be made is a use allowedunder such constitutional provisions. Also, loans madefrom debt service reserve funds created to provide ad-ditional security for outstanding bonds or other bor-rowing obligations are limited to amounts that are inexcess of the amount the municipal corporation hascovenanted to maintain in the reserve fund.

Short-Term Notes

Local governments are permitted to secure short-termnotes or issue warrants to meet current expenses, or to re-tire bonds or warrants and their interest, whenever pro-vided for in an adopted budget (ORS 288.165). Loanamounts are limited to 80 percent of the property taxes notyet received by the local government in that fiscal year.The loan may also include up to 80 percent of the fullamount of any other budgeted or unpledged revenues thegoverning body will receive during the fiscal year. Beforeany formal action is taken by the governing body, ORS288.165 should be studied for more information.

If the governing body obligates a local government be-yond 12 months, the indebtedness could be consideredan addition to the outstanding debt. Debts are gener-ally restricted by the Oregon Constitution, statute, orcharter. Any indebtedness (including bonds and notes)is governed by the general indebtedness limitations ofthe charter or statutes.

Interest payments must be budgeted when a local gov-ernment expects short-term borrowing (ORS 294.443).The loan and repayment schedule may be reported innarrative form or as a footnote to the budget. The nar-rative or footnote must indicate that the principal andpayments are liabilities of the fund from which they aremade. The principal and repayment need not be in-cluded as a budgeted resource or expense.

Local Budget Law has no statutory limitations for anylocal government to enter into an installment contract.Local Budget Law does not authorize any local govern-ment to obligate itself to make payments beyond a pe-riod of more than one year. Any authority to enter intosuch an installment contract must be found in the stat-utes or charter of the local government.

Supplemental Budgets

During the fiscal year, circumstances may require ex-penses to be paid that were not budgeted. Or a districtmay receive revenue it did not plan for in its budget. Asupplemental budget is required to pay the additionalexpenses and spend the extra revenue. Supplementalbudgets are good only through June 30 of the fiscal yearin which they are adopted. The supplemental budgetmust be adopted and appropriated before any addi-tional money can be spent (OAR 150-294.480).

Although a supplemental budget is usually associatedwith the expenditure of new appropriations and increasedrevenues, it can also be used for other purposes. For ex-ample, a supplemental budget is required when transfer-ring revenues from a special fund to the general fund toincrease existing appropriations. Preparing a supplemen-tal budget does not authorize the governing body to im-pose additional ad valorem taxes [ORS 294.480(5)].

When Can a Supplement Budget Be Prepared?

A local government may prepare a supplemental bud-get only if one or more of the following circumstancesexists (ORS 294.480):

• An occurrence or condition that was not known at thetime the budget was prepared requires a change infinancial planning.

• A situation that was not foreseen at the time the bud-get was prepared requires prompt action.

• Funds are made available by another unit of federal,state or local government; the funds were not knownat the time the budget was prepared.

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• A request for services or facilities is received. The costwill be paid for by a private individual, corporationor company, or by another governmental unit, andthe amount of the request could not have been knownat the time the budget was prepared.

• Proceeds from the involuntary destruction, involun-tary conversion, or sale of property has necessitatedthe immediate purchase, construction or acquisitionof different facilities in order to carry on the govern-mental operation.

• A sufficiently greater amount of ad valorem taxesthan estimated to be collected are received during thefiscal year. The difference will significantly affect thelevel of government operations to be funded by thosetaxes as provided in the budget for the current year.

There are specific instances when a supplemental budgetis not required to make additional appropriations. See Ex-ceptions to Local Budget Law at the end of this chapter.

When is a Supplemental Budget Not Allowed?

In a November 17, 1967, letter the attorney generalopined that a supplemental budget cannot be used tospend revenues that could have been estimated andadopted in the regular budget.

A supplemental budget cannot authorize spending anunappropriated ending fund balance, except when ne-cessitated by involuntary conversion or a civil distur-bance or natural disaster (ORS 294.371, 294.455). It alsocannot be used to spend the tax raised above the esti-mated amount stated in the ballot for a rate local op-tion tax [ORS 280.075(2)].

Process and Preparation

After it has been decided that a supplemental budgetis necessary and appropriate, the process for preparingit must be determined. A supplemental budget may ad-just one fund or several.

For the purpose of preparing a supplemental budget,fund expenditures in the current budget do not includeunappropriated ending fund balance, interfund trans-fers, or contingency amounts.

Less than 10 percent

When the supplemental budget will adjust a current bud-get fund by less than 10 percent of that fund’s expendi-tures, then the process used to adopt the supplementalbudget is fairly simple. If the supplemental budget is ad-justing more than one fund, the adjustment to each fundmust be less than 10 percent to use the simpler process.

The simple process for adjustments of less than 10 per-cent is:

1. The supplemental budget is adopted by the govern-ing body at a regularly scheduled board meeting.The budget committee is not required.

2. Notice of the regular meeting at which the supple-mental budget will be adopted is published by oneof the publication methods not less than five daysbefore the meeting. The notice includes the name ofeach fund being adjusted and the amount of changein each fund’s resources and expenditures.

3. At the meeting, a resolution adopting the supplemen-tal budget and making appropriations is approved.

10 percent or more

When the supplemental budget will adjust a currentbudget fund by 10 percent or more of the expendituresof that fund or will create a new fund, then a longer pro-cess must be used to adopt the supplemental budget.

1. A special hearing must be held to discuss and adoptthe supplemental budget. The hearing is held by thegoverning body. The budget committee is not re-quired to be involved.

2. Five to 30 days before the hearing, a notice of hear-ing and a summary of the proposed supplementalbudget is published using one of the publicationmethods. Follow the guidelines outlined in Chapter8—Publication Requirements, Notice of BudgetHearing and Budget Summary. The Department ofRevenue provides a form that can be used to pub-lish the supplemental budget. The form is titledNotice of Supplemental Budget Hearing,150-504-022, and is included in the packet of bud-get forms sent to budget officers each year.

3. The governing body may resolve to adopt and appro-priate the supplemental budget following the hearing.

Adjusting the Current Budget

When preparing the budget for the coming fiscal year,revise the figures in the current adopted budget to re-flect the changes made by any supplemental budgets.

Exceptions to Local Budget Law

In order to lawfully spend money, a local governmentmust comply with the requirements of Local BudgetLaw [ORS 294.326(2)].

However, certain expenditures have been made excep-tions to the requirements of Local Budget Law. Be sureto refer to ORS 294.326 for all the exceptions. The mostcommon exceptions are:

1. Expenditures in the year of receipt of grants, gifts,bequests or devises transferred to the local govern-ment in trust for a specific purpose may be madeafter enactment of a resolution or ordinance autho-rizing the expenditure [ORS 294.326(3)].

However, expenditure in the year of receipt ofundesignated general purpose grants, gifts, be-quests or devises can only be made after adoptionof a supplemental budget.

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Specific purpose grants, gifts, bequests or devisesthat will be spent, in whole or in part, in the fiscalyear following receipt, must be included as a re-source in the regular budget of the upcoming year.

2. Expenditures of proceeds from the sale of certainbonds may be made during the current year with-out a supplemental budget [ORS 294.326(5) and294.483(2)].

It is recommended that a special revenue fund or acapital projects fund be established to account forthe bond proceeds and that a resolution or ordi-nance be enacted to appropriate the proceeds.

3. Expenditures to pay debt service on certain bondswhich are authorized and issued during the fiscalyear may be made without adopting a supplemen-tal budget (ORS 294.483).

It is recommended that a debt service fund be estab-lished to account for the bond principal and inter-est expenditures and that a resolution or ordinancebe enacted to appropriate the debt service payment.

4. Expenditure of funds irrevocably placed in escrowfor the purpose of defeasing and paying bonds [ORS294.326(6)].

5. Expenditure of funds to deal with involuntary conver-sion or damage or destruction from a civil disturbanceor natural disaster may be made after enactment of aresolution or ordinance authorizing the expenditure orafter adoption of a supplemental budget (ORS 294.455).

6. Expenditures of money refunded after a purchasehas been returned may be made after enactment ofa resolution or ordinance authorizing the expendi-ture [ORS 294.326(10)].

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Chapter 15 – Biennial BudgetsBiennial Budgets

Municipal corporations have the option of budgetingon a 24-month “biennial” budget period or by fiscalyear. The governing body, by ordinance, resolution, orcharter, may provide that the budget and budget docu-ments be prepared for a budget period of 24 months.Unless so authorized, the budget period is one fiscalyear. For local governments with the authority to levytax upon property, the biennial budget period begins onJuly 1 and ends on June 30 of the second ensuing cal-endar year (ORS 294.311). Unless specified in this chap-ter or elsewhere in this manual, all other provisions oflaw remain the same for both fiscal year and biennialbudgets except the length of the budget period.

Budget Committee

Appointed members of a budget committee that pre-pares a biennial budget serve for terms of four years. Theterms must be staggered so that, as near as practicable,one-fourth of the terms end each year (ORS 294.336).

If an existing local government adopts a biennial bud-get period, there will be a period of transition from fis-cal year budgets to biennial budgets. During thisperiod, appointive members of the budget committeewho are already serving may serve out their three-yearterms. New members or members who are reappointedto another term may receive four-year terms. However,the governing body may decide to appoint these newmembers for shorter terms or to shorten the terms ofsitting members to less than three years in order to es-tablish the staggered schedule with one-fourth of theterms ending each year.

Proposed Budget Document

Estimating Expenditures and Resources

All estimates of resources and expenditures and otherbudget requirements in a proposed biennial budgetmust be for the entire 24-month budget period. Totalresources must equal total requirements. Estimates ofcash carryforward, beginning balance or net workingcapital should be the net total from the preceding bud-get period.

If resources include revenue from property taxes, thebudget should reflect the amount expected to be re-ceived from both tax years covered by the budget pe-riod. When estimating the amount to be received,estimate the amounts for both years separately as pro-vided in ORS 294.381. Estimates of prior year taxes tobe received should reflect the total amount expectedduring both years of the coming biennium.

Grants must be budgeted if the district is aware ofthem and there is a reasonable expectation that theywill be received any time during the coming bien-nium. The amount of the grants must be estimatedin good faith.

First and Second Preceding Budget Period’s Data andCurrent Year Data

Expenditure and resource estimate detail sheets shouldshow the actual expenditures and resources for the twopreceding 24-month budget periods (two biennia) andthe estimated data for the current budget period.

During the transition from fiscal year to biennial bud-gets, the detail sheets should show a mixture of single–year budget data and two–year budget data. Do notattempt to “double” the actual or estimated data froma fiscal year budget to make it comparable to the pro-posed budget. The discrepancy between fiscal year andbiennial figures can be explained in a footnote or in thebudget message.

Debt Service on Bonds (ORS 294.483)

A municipal corporation that has outstanding generalobligation or Bancroft bonds, then adopts a biennialbudget must budget and appropriate amounts suffi-cient to pay the debt service on those bonds in the suc-ceeding 24-month budget period. If bonds are approvedby the voters and sold during a budget period, debtservice can be paid in that budget period without be-ing budgeted. However, unless the property taxes wereapproved by the budget committee and included in theregular budget, no new tax levy can be imposed dur-ing the biennium to pay the debt service on bonds ap-proved during the biennium.

Bond Proceeds (ORS 294.483)

When voter approval to issue bonds is received duringa budget period and proceeds from the bond will beexpended during that same budget period, the proceedsdo not have to be budgeted. If bonds are approved inone budget period and the proceeds will be spent in asucceeding budget period, those proceeds must be in-cluded in the budget for the succeeding budget period.

Interfund Loans

Operating loans made from one fund to another thatare not repaid in the budget period in which they aremade must have the repayment budgeted in the en-suing budget period. Operating loans must be repaidno later than the budget period following the one inwhich they are made.

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Method of Accounting (ORS 294.445)

Any change in the basis of accounting must be clearlyset forth in the biennial budget message. Once a newbasis of accounting is adopted, it must be followed forthe entire biennial budget period. Examples of basis ofaccounting are cash, accrual, and modified accrual.Changing from fiscal year budgeting to biennial bud-geting is not a change in the method of accounting.

Budget Committee Approves Tax Levies

The budget document as approved by the budget com-mittee must specify the amount or rate of ad valoremtaxes for each fund for both years of a biennial budgetperiod. The amount or rate of tax for each fund mustbe stated separately for each tax year. The amount orrate of tax for each fund need not be the same for eachyear. In particular, the amount of tax levied for a debtservice fund is highly unlikely to be the same for twoconsecutive years because principal and interest pay-ments tend to fluctuate as the debt is paid.

Publication Requirements

Budget Summary (ORS 294.416, 294.418)

The summary of the budget document that is approvedby the budget committee must be published as providedin ORS 294.416 or 294.418 (ORS 294.421). In that notice,the resources and expenditures approved by the budgetcommittee must be compared to the actual expendituresand resources of the preceding budget period and to thebudget summary of the current budget period.

During the transition from fiscal year to biennial bud-gets, the published budget summaries should show amixture of single-year budget data and two-year bud-get data. Do not attempt to double the actual or esti-mated data from a fiscal year budget to make itcomparable to the proposed budget. The discrepancybetween fiscal year and biennial figures can be ex-plained in a footnote.

Posting the Budget Summary and Notice of BudgetHearing (ORS 294.421)

If the budget approved by the budget committee is fora biennial budget period, and

• there is no newspaper of general circulation pub-lished in the district, and

• the estimated expenditures in the ensuing budget pe-riod do not exceed $100,000, then

• the district may post the budget summary and noticeof budget hearing in three conspicuous places withinthe district for a period of at least 20 days before thehearing in lieu of publishing in a newspaper, or byhand delivery or first–class mail.

Governing Body Actions After Approval byBudget Committee

Adopt Budget and Make Appropriations(ORS 294.435)

After the budget hearing, the governing body must en-act ordinances or resolutions to adopt the budget, tomake appropriations, and to levy and to categorize theproperty taxes. The amount of the adopted budget andof appropriations must be the amount budgeted for all24 months of the ensuing budget period. Taxes must belevied and categorized separately for both years of theensuing year of budget period (ORS 310.060).

Changes to Expenditures or Taxes (ORS 294.435)

The budget estimates and proposed amount or rate ofad valorem property tax shown in the approved bud-get may be amended by the governing body prior tothe start of the budget period. If the governing bodyincreases the estimated expenditures for any fund ina biennial budget as approved by the budget commit-tee by more than $10,000 or 10 percent, whichever isgreater, or if the governing body increases the amountor rate of ad valorem taxes for either year, theamended budget must be republished and anotherpublic hearing held.

Once a biennial budget has been adopted, the govern-ing body cannot increase the tax amount for either yearof that budget period.

Governing Body Actions After Adoption

Contingency (ORS 294.450)

A supplemental budget is required before transfers ofgeneral operating contingency appropriations in excessof 15 percent of the total appropriations of the fundduring a biennial budget period. This applies to trans-fers made after the budget has been approved and thosethat are made during the budget period for which theappropriations are made. Transfers from contingencytotaling 15 percent or less during the biennium can bemade by resolution or ordinance.

Pass-Through Payments (ORS 294.450)

When one local government must pass through revenuefrom taxes, fees or charges to another local government,it must be budgeted. The local government making thepass-through of revenue must include in its budget anamount estimated to be received during both years ofthe budget period and appropriate the entire amountto be passed through during the budget period. If theactual amount collected during the budget period ex-ceeds the estimated amount, the governing body mustpass a resolution or ordinance to appropriate the excess.

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Interfund Loan (ORS 294.460)

If an interfund loan is for the purpose of paying oper-ating expenses, the ordinance or resolution authoriz-ing the loan must provide that the loan be repaid inthe same budget period or in the ensuing budget pe-riod. If it is to be repaid in the ensuing budget period,then the payment must be part of the budget for theensuing period.

Internal Service Fund (ORS 294.470)

If a local government includes an internal service fundin a biennial budget, it must budget and appropriate theanticipated expenditure for the entire biennial budgetperiod. Unlike other funds in the budget, the govern-ing body may increase appropriations of an internalservice fund during the current budget period by reso-lution or ordinance.

Supplemental Budget (ORS 294.480)

A supplemental budget that amends a biennial budgetis for the remainder of the 24-month budget period inwhich it is submitted. When determining the process foradopting a supplemental budget under ORS 294.480(3)and (4), the governing body must consider whether theestimated expenditures being changed by the supple-mental budget differ by 10 percent or more from thetotal appropriated for the biennium in the fund beingchanged. If the supplemental budget will adjust afund’s current biennial expenditures by less than 10percent, the governing body may use the simple pro-cess described in Chapter 14, in which the supplemen-tal budget is adopted at a regular meeting of thegoverning body. If the supplemental budget will adjusta fund’s current expenditures by 10 percent or more, aspecial hearing is required.

A supplemental budget cannot authorize an increase ina local government’s total ad valorem property taxesabove the amount or rate published with the originalbiennial budget and certified to the assessor for eitherfiscal year of the budget period.

Budget Document

File With Department of Revenue (ORS 294.555)

A local government that does not levy an ad valoremproperty tax but that is subject to Local Budget Law andthat prepares a biennial budget must file with the De-partment of Revenue a copy of the resolutions adopt-ing the budget and making appropriations. This copymust be filed on or before July 15 of the first fiscal yearof the budget period.

File With Tax Supervising and ConservationCommission (ORS 294.635)

A municipal corporation that is subject to a tax super-vising and conservation commission and that adopts abiennial budget must submit its detailed estimates ofthe biennial budget to the commission on or before May15 of the first fiscal year of the budget period. The com-mission will certify any objections it has to the adop-tion of the biennial budget on or before June 25 of thefirst fiscal year of the budget period.

Retention (ORS 294.555)

A local government that is subject to Local Budget Lawand that prepares a biennial budget must retain a truecopy of its budget until the end of the two budget pe-riods following the budget period for which the bien-nial budget was prepared.

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Appendix A—GlossaryAccrual basis. Method of accounting recognizing trans-actions when they occur without regard toward cashflow timing [ORS 294.311(1)].

Activity. That portion of the work of an organizationalunit relating to a specific function or class of functions,a project or program, a subproject or subprogram, orany convenient division of these [ORS 294.311(2)].

Adopted budget. Financial plan that is the basis for ap-propriations. Adopted by the governing body (ORS294.435).

Ad valorem tax. A property tax computed as a percent-age of the value of taxable property. See “Assessed Value.”

Appropriation. Authorization for spending a specificamount of money for a specific purpose during a fiscalyear. It is based on the adopted budget, includingsupplemental budgets, if any. It is presented in a reso-lution or ordinance adopted by the governing body[ORS 294.311(3)].

Approved budget. The budget that has been approvedby the budget committee. The data from the approvedbudget is published in the Financial Summary beforethe budget hearing (ORS 294.406).

Assessed value. The value set on real and personal prop-erty as a basis for imposing taxes. It is the lesser of theproperty’s maximum assessed value or real market value.

Assessment date. The date on which the real marketvalue of property is set—January 1.

Audit. The annual review and appraisal of a municipalcorporation’s accounts and fiscal affairs conducted byan accountant under contract or the Secretary of State(ORS 297.425).

Audit report. A report in a form prescribed by the Sec-retary of State made by an auditor expressing an opin-ion about the propriety of a local government’s financialstatements, and compliance with requirements, ordersand regulations.

Bequest. A gift by will of personal property; a legacy.

Biennial budget. A budget for a 24-month period.

Billing rate. The tax rate used to compute ad valoremtaxes for each property. When applicable, it is derivedfrom subtracting the timber offset rate from the perma-nent or operating rate.

Budget. Written report showing the local government’scomprehensive financial plan for one fiscal year. It mustinclude a balanced statement of actual revenues and ex-penditures during each of the last two years, and esti-mated revenues and expenditures for the current andupcoming year [ORS 294.311(4)].

Budget committee. Fiscal planning board of a local gov-ernment, consisting of the governing body plus anequal number of legal voters appointed from the dis-trict (ORS 294.336).

Budget message. Written explanation of the budget andthe local government’s financial priorities. It is preparedand presented by the executive officer or chairpersonof the governing body (ORS 294.391).

Budget officer. Person appointed by the governing bodyto assemble budget material and information and tophysically prepare the proposed budget (ORS 294.331).

Budget period. For local governments on a biennialbudget, the 24-month period beginning July 1 and end-ing June 30 of the second following calendar year. Seealso “Fiscal year.”

Budget transfers. Amounts moved from one fund tofinance activities in another fund. They are shown as ex-penditures in the originating fund and revenues in thereceiving fund.

Capital outlay. Items which generally have a useful lifeof one or more years, such as machinery, land, furniture,equipment, or buildings [ORS 294.352(6)].

Capital projects fund. A fund used to account for re-sources, such as bond sale proceeds, to be used for ma-jor capital item purchase or construction [OAR150-294.352(1)].

Cash basis. System of accounting under which rev-enues are accounted for only when received in cash,and expenditures are accounted for only when paid[ORS 294.311(7)].

Category of limitation. The three categories in whichtaxes on property are placed before the constitutionallimits can be tested—education, general government,excluded from limitation (ORS 310.150).

Consolidated billing tax rate. The consolidated billingtax rate is a combined total of the billing rates for all tax-ing districts in the code area but does not include thebilling rate for any urban renewal special levies or non-ad valorem taxes, fees, or other charges.

Constitutional limits. The maximum amount of tax onproperty that can be collected from an individual propertyin each category of limitation (Art. XI, sect. 11b, Or Const.).

Current assets. Assets which are available to financecurrent operations or to pay current liabilities.

Debt service fund. A fund established to account forpayment of general long-term debt principal and inter-est [OAR 150-294.352(1)].

Devise. A gift by will of the donor of real property.

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District. See “Local government.”

Division of tax. Division of tax refers to the process of,and revenue from, apportioning tax to urban renewalagencies based on the relationship of the excess to fro-zen value, a.k.a. tax increment revenue.

Double majority. A term that refers to an election whereat least 50 percent of the registered voters eligible tovote in the election cast a ballot and more than 50 per-cent voting approve the question.

Education category. The category for taxes that will beused to support the public school system and are notused to pay exempt bonded indebtedness [ORS310.150(2)].

Encumbrance. An obligation chargeable to an appro-priation and for which part of the appropriation is re-served [ORS 294.311(10)].

Enterprise fund. A fund established to account for op-erations that are financed and operated in a mannersimilar to private business enterprises. They are usuallyself-supporting. Examples of enterprise funds are thosefor water, gas, and electric utilities, swimming pools,airports, parking garages, transit systems, and ports[OAR 150-294.352(1)].

Excluded from limitation category. The category fortaxes used to pay principal and interest on exemptbonded indebtedness [ORS 310.150(2)].

Exempt bonded indebtedness. 1) Bonded indebtednessauthorized by a specific provision of the Oregon Con-stitution, or 2) bonded indebtedness issued as a generalobligation on or before November 6, 1990, incurred forcapital construction or capital improvements, or 3)bonded indebtedness issued as a general obligation af-ter November 6, 1990, incurred for capital constructionor capital improvements with the approval of the elec-tors of the local government. Bonded indebtedness is-sued to refund or refinance any bonded indebtednessdescribed above is also included [ORS 310.140(15)].

Existing plan. An existing urban renewal plan is de-fined as a plan that existed in December 1996, and, 1)chose an option and, 2) established a maximum amountof indebtedness by July 1998 and has not been amendedto increase the land area or maximum indebtedness[ORS 457.101(4)(a)].

Expenditures. Total amount incurred if accounts arekept on an accrual basis; total amount paid if accountsare kept on a cash basis [ORS 294.311(12)].

Fiscal year. A 12-month period to which the annualoperating budget applies. At the end of the period, agovernment determines its financial position and the re-sults of its operations. It is July 1 through June 30 forlocal governments [ORS 294.311(13)].

Fund. A fiscal and accounting entity with self-balanc-ing accounts to record cash and other financial re-sources, related liabilities, balances and changes, allsegregated for specific, regulated activities and objec-tives.

Fund balance. The fund equity of government funds.

Fund type. One of nine fund types: General, special rev-enue, debt service, capital projects, special assessment,enterprise, internal service, trust and agency, and re-serve [OAR 150-294.352(1) and ORS 280.100].

Gap bonds. Any portion of a local government’s prop-erty tax levy that is used to repay qualified taxing dis-trict obligations. Qualified taxing district obligationsinclude principal and interest on any bond or formal,written borrowing of moneys issued before December5, 1996, for which ad valorem property tax revenueshave been pledged or explicitly committed or that aresecured by a covenant to levy. Also included are pen-sion and disability plan obligations that commit prop-erty taxes and impose property taxes to fulfill thoseobligations.

General fund. A fund used to account for most fiscalactivities except for those activities required to be ac-counted for in another fund [OAR 150-294.352(1)].

General government category. The category for taxesused to support general government operations that arenot for the purposes of paying exempt bonded indebt-edness [ORS 310.150(2)].

Governing body. County court, board of commission-ers, city council, school board, board of trustees, boardof directors, or other managing board of a local govern-ment unit [ORS 294.311(15)].

Grant. A donation or contribution in cash by one gov-ernmental unit to another unit which may be made tosupport a specified purpose or function, or general pur-pose [ORS 294.311(16)].

Interfund loans. Loans made by one fund to anotherand authorized by resolution or ordinance (ORS294.460).

Internal service fund. A fund used to account for fis-cal activities when goods or services are provided byone department or agency to other departments oragencies on a cost-reimbursement basis (ORS 294.470).

Legal opinion. The opinion as to legality rendered byan authorized official, such as the Oregon attorney gen-eral or city attorney.

Levy. Amount of ad valorem tax certified by a local gov-ernment for the support of governmental activities.

Liabilities. Debt or other legal obligation arisingfrom transactions in the past which must be liqui-

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dated, renewed, or refunded at a future date; does notinclude encumbrances.

Local government. Any city, county, port, school dis-trict, community college, public or quasi-public corpo-ration (including a municipal utility or dockcommission) operated by a separate board or commis-sion; a municipal corporation or municipality [ORS294.311(19)].

Local option tax. Taxing authority voter-approved bya double majority that is in addition to the taxes gen-erated by the permanent tax rate. Local option taxescan be for general operations, a specific purpose orcapital projects. They are limited to five years unlessthey are for a capital project, then they are limited tothe useful life of the project or 10 years, whichever isless.

Maximum assessed value (MAV). The maximum tax-able value limitation placed on real or personal prop-erty by the constitution. It can increase a maximum of3 percent each year. The 3 percent limit may be ex-ceeded if there are qualifying improvements made tothe property, such as a major addition or new construc-tion.

Maximum authority. The limitation on the amount ofauthority for an existing urban renewal plan area [ORS457.435(3)(a)]. Plans that are not existing plans will nothave a maximum authority amount. The assessor cal-culated this amount for the 1997-98 tax year for eachexisting plan based on the taxes each urban renewalplan area would have been entitled to prior to Measure50. This amount is adjusted each year based on thegrowth of excess value in the plan area.

Maximum indebtedness. The amount of the principalof the indebtedness necessary to complete an urban re-newal plan. This does not include indebtedness in-curred to refund or refinance existing indebtedness[ORS 457.010(9)]. It is specified in dollars and cents andbased on good faith estimates of the scope and costs ofthe anticipated project or projects. All existing plans arerequired to have an ordinance which establishes amaximum indebtedness.

Municipal corporation. See “Local government.”

Municipality. See “Local government.”

Net working capital. The sum of the cash balance, ac-counts receivable expected to be realized during the en-suing year, inventories, supplies, prepaid expenses lesscurrent liabilities and, if encumbrance method of ac-counting is used, reserve for encumbrances [ORS294.311(20)].

New plan. Urban renewal plan areas established afterDecember 6, 1996. New plans receive whatever amountsare generated by the division of tax calculations.

Non-existing urban renewal plan. Plans that were ineffect as of December 1996, but failed to adopt an op-tion, establish maximum indebtedness, or were sub-stantially amended to add land area or increasemaximum indebtedness. They receive the full divisionof tax amount.

Object classification. A grouping of expenditures, suchas personal services, materials and services, capital out-lay, debt services, and other types of requirements [ORS294.311(22)].

Offset rate. The rate determined by dividing the localgovernment’s timber offset amount by the assessedvalue of the local government. This rate is used to re-duce the local government’s permanent or operatingrate. Offset rates are not applied to education districts’permanent or operating rates.

Operating rate. The rate determined by dividing thelocal government’s operating tax amount by the esti-mated assessed value of the local government. This rateis needed when a local government wants to imposeless tax than its permanent rate will raise.

Option, urban renewal. Financing arrangement chosenby existing urban renewal plans. Cannot be changed.The options are as follows:

Option 1 [ORS 457.435(2)(a)], allows the plan tocollect sufficient amounts to pay the obligations ofthe plan from a division of tax as computed underORS 457.440. If the amount collected from the di-vision of tax is insufficient, a special levy may beimposed against all taxable property of the munici-pality that activated the urban renewal agency. Thespecial levy when added to the amount computedfor the division of tax cannot exceed the maximumauthority of the plan. The amount of the speciallevy can be an amount less than the difference.Option 1 plans will receive all of the amounts fromthe division of tax regardless of how they certify.

Option 2 [ORS 457.435(2)(b)], provides for a speciallevy to be imposed against all taxable property ofthe municipality that activated the urban renewalagency. The amount cannot exceed the plan’s maxi-mum authority. The amount certified will be ex-tended as a levy to the extent it does not exceed theplan’s maximum authority. Under Option 2, no di-vision of tax occurs. Under Option 2, all the revenuegenerated by a district’s tax rate goes to the taxingdistrict. If the taxing district has a rate calculated forit, the rate is calculated as if there were no excessvalue. The Cascade Lock Plan in Hood RiverCounty is the only Option 2 Urban Renewal Plan.

Option 3 [ORS 457.435(2)(c)], provides that Option3 plans can obtain funds from both the division oftax and a special levy. Like Option 1, the agencymay limit the amount to be received from the spe-

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cial levy, but unlike Option 1 the agency limited theamount of funds received from the division of taxwhen the Option was chosen [ORS 457.435(1) (2)(c)and (4)(a)]. In the ordinance choosing Option 3, theamount to be received from the division of tax wasestablished. That amount applies to all futureyears. For Option 3 plans, the assessor must calcu-late an amount of excess value up to, but not ex-ceeding, the actual excess value, sufficient togenerate the amount to be raised from the divisionof tax and return any “unused” excess value. Theunused excess value is added to the frozen valuefor that year. This unused excess is treated as fro-zen value when calculating the revenues raised forother taxing districts. If the amount collected fromthe division of tax is insufficient, a special levy maybe imposed.

Ordinance. A formal legislative enactment by the gov-erning board of a municipality.

Organizational unit. Any administrative subdivision ofthe local government, especially one charged with car-rying on one or more specific functions (such as a de-partment, office or division) [ORS 294.311(23)].

Payroll expenses. Expenses related to the compensationof salaried employees, such as, health and accident in-surance premiums, Social Security and retirement con-tributions, civil service assessments.

Permanent rate limit. The maximum rate of ad valoremproperty taxes that a local government can impose.Taxes generated from the permanent rate limit can beused for any purpose. No action of the local govern-ment can increase a permanent rate limit.

Prior years’ tax levies. Taxes levied for fiscal years pre-ceding the current one.

Program. A group of related activities to accomplish amajor service or function for which the local govern-ment is responsible [ORS 294.311(25)].

Program budget. A budget based on the programs ofthe local government.

Property taxes. Ad valorem tax certified to the countyassessor by a local government unit.

Proposed budget. Financial and operating plan pre-pared by the budget officer. It is submitted to the pub-lic and the budget committee for review.

Publication. Public notice given by publication in anewspaper of general circulation within the boundariesof the local government; mailing through the U.S. PostalService by first class mail to each street address withinthe boundaries of the local government; and hand de-livery to each street address within the boundaries ofthe local government.

Real Market Value (RMV). The amount in cash whichcould reasonably be expected by an informed sellerfrom an informed buyer in an arm’s-length transactionas of the assessment date. In most cases, the value usedto test the constitutional limits (ORS 308.205).

Reserve fund. Established to accumulate money fromyear to year for a specific purpose, such as purchase ofnew equipment (ORS 280.100).

Resolution. A formal order of a governing body; lowerlegal status than an ordinance.

Resource. Estimated beginning funds on hand plus an-ticipated receipts (ORS 294.361).

Special levy. A special levy is an ad valorem tax, im-posed for an urban renewal plan area. It is not a resultof a division of tax but rather imposed directly for theplan area and is attributed to urban renewal on the taxstatement, unlike the division of tax amount.

Special revenue fund. A fund used to account for theproceeds of specific revenue sources (other than specialassessments, expendable trusts, or major capitalprojects) that are legally restricted to expenditure forspecific purposes [OAR 150-294.352(1)].

Supplemental budget. A financial plan prepared tomeet unexpected needs or to spend revenues not antici-pated when the regular budget was adopted. It cannotbe used to authorize a tax (ORS 294.480).

Tax increment financing. A financial mechanism forurban renewal plans which captures the tax from thegrowth in property value within a designated geo-graphical area.

Tax on property. Any tax, fee, charge or assessmentimposed by any government unit upon property orupon a property owner as a direct consequence of own-ership of that property [ORS 310.140(1)].

Tax rate. The amount of tax stated in terms of a unit of taxfor each $1,000 of assessed value of taxable property.

Tax roll. The official list showing the amount of taxesimposed against each taxable property.

Tax year. The fiscal year from July 1 through June 30.

Trust fund. A fund used to account for fiscal activitiesof assets held in trust by a local government.

Unappropriated ending fund balance. Amount setaside in the budget to be used as a cash carryover to thenext year’s budget. It provides the local governmentwith cash until tax money is received from the countytreasurer in November. This amount cannot be trans-ferred by resolution or used through a supplementalbudget, unless necessitated by a qualifying emergency(ORS 294.371).

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Appendix B—Outline of Budget ProcessORS/OAR

I. Time of Making Budget 294.396A. Budget message. 294.391

II. Budget OfficerA. Appointed by the governing body. 294.331B. Under supervision of executive officer or governing body. 294.331C. Prepares or supervises preparation of budget. 294.331D. Publishes notice of meeting of budget committee including notice of where a

copy of the budget is available. If published in a newspaper of generalcirculation, the notice is published twice, at least five days apart, between fiveto 30 days before the meeting. If published by mailing or hand delivery, thenotice is published not later than 10 days before the meeting.

294.401(5)

E. Provides copy of budget to committee. 291.401(2)&(6)F. Files copy of budget in office of governing body immediately following

presentation of budget to committee.291.401(8)

III. Budget DocumentA. Coming year budget shown: 294.376

1. Proposed2. Approved3. Adopted

B. Current year budget shown. 294.376C. First preceding year actual resources and expenditures. 294.376D. Second preceding year actual resources and expenditures. 294.376E. Each fund to contain estimates of expenditures for: 150-294.352(1)

1. Personal services 294.3522. Materials and services 294.3523. Capital outlay 294.3524. Special payments and interfund transfers 294.352

5. General operating contingencies 294.352150-294.352(8)

IV Budget Resources 150-294.361(1)

A. Estimate of beginning cash balances for the ensuing year.B. Estimate for delinquent tax collection included if fund has been tax-supported. 294.361(2)C. Transfers budgeted as requirements in other funds. 294.361(2)D. Resources must be equal to requirements. 150-294.352(1)(B)E. Excess of actual revenues over actual expenditures in second preceding year

must equal the beginning balance in first preceding year.

V. Debt Service FundA. Each issue identified for principal and interest payments. 294.352(7)B. Requirement shown in unappropriated ending fund balance. (For payments

between end of coming fiscal year and receipt of taxes in second coming year.)294.371150-294.371

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ORS/OAR

VI. Budget CommitteeA. A budget committee is established by each local government subject to Local

Budget Law.294.336(1)

B. Committee shall consist of the members of the governing body and an equalnumber of qualified electors.

294.336(2)

C. Committee shall at its first meeting elect a presiding officer from its members. 294.336(8)D. The purpose of the budget committee is to receive the budget document and

budget message, and to provide the public with an opportunity to askquestions and comment on the budget.

294.401(1)

E. Duty of the committee to review, or revise and approve the budget document. 294.406(1)F. Committee may compel any official or employee of the municipality to furnish

information regarding the budget.294.406(3)

VII. Financial SummaryA. Items in Financial Summary, LB-1, UR-1, or ED-1 agree with amounts on

LB-2, UR-2, or ED-2, plus LB-3/ED-3.B. Items on LB-2, UR-2, or ED-2 and LB-3 or ED-3 agree with amounts on budget

detail sheets.294.386(1)

C. Summary of indebtedness is shown on Form LB-1, UR-1, or ED-1 294.386(2)&(3)

VIII. Publication of Notice of Budget HearingA. Notice of budget hearing advertised five to 30 days prior to hearing. 294.421(2)B. If budget requirements do not exceed $50,000 and no newspaper is published

in district, the financial summary and notice of hearing can be posted for atleast 20 days prior to the hearing.

294.421(3)

C. If notice is posted, a special notice of hearing must be published. 294.421(4)

IX. After Public Hearing of BudgetA. Changes, if made after hearing, cannot increase estimated expenditures of any

fund more than $5,000 or 10 percent, whichever is greater, of the amountsapproved by the budget committee.

294.435(1)

B. Budget adopted prior to June 30. 294.396C. Levy the taxes. 294.435(1)

150-294.435(1)-(A)D. Make appropriations: 294.435(3)

150-294.435(3)1. By organizational unit or program.2. When organizational unit or program do not apply by;

a. personal servicesb. materials and servicesc. capital outlayd. transferse. general operating contingencyf. debt service

73

ORS/OAR

X. Certify Tax to Assessor by July 15 150-310.060(A)

A. Two copies of the notice of tax; LB-50, UR-50, or ED-50. 294.555(2)(a)310.060(2)

1. Total tax certified can not exceed amount approved by the budgetcommittee.

294.435(1)150-294.435(1)-(A)

2. Local option taxes are detailed on LB-50 or ED-50 showing: 310.060(2)(b) and (c)a. Purpose of tax.b. Date of approval by voters.c. Total amount or rate to be imposed.d. Amount to be imposed each year.e. First year of tax.f. Last year of tax.

3. Levies for the payment of bond principal and interest. 310.060(2)(d) and (e)4. Categorization of tax. 294.555(2)(a)

B. Two copies of the resolutions adopting the budget, making appropriations,levying tax, and categorizing tax.

C. Two copies of successful tax ballot measures.

D. File a copy of the budget with the county clerk by September 30. 310.060(7)E. School districts must submit a hard copy of their complete budget documents

to their education service district and the Department of Education by July 15.

XI. Supplemental Budgets 150-294.480

A. One or more of the following circumstances must exist:1. An occurrence, condition or need which had not been ascertained at the

time the budget was adopted.294.480(1)(a)&(b)

2. Funds were made available by another unit of federal, state or localgovernment or the costs are to be born by a private individual corporationor company, and the availability of funds could not have been known atthe time the budget was adopted.

294.480(1)(c)

3. Proceeds from the involuntary destruction, involuntary conversion, or saleof property has necessitated the immediate purchase, construction, oracquisition of different facilities in order to carry on the governmentoperation.

294.480(1)(e)

4. Ad valorem taxes are received during the fiscal year in an amount greaterthan the amount estimated to be collected.

294.480(1)(f)

B. A supplemental budget shall not authorize any levy of taxes. 294.480(5)C. A supplemental budget shall not extend beyond the end of the fiscal year

during which it is submitted.294.480(2)

74

ORS/OAR

XII. OtherA. Interfund Transfers. 294.450

150-294.450(3)1. Transfers may be made between appropriations within a fund by board

resolution.2. Contingency appropriation transfers not to exceed 15 percent of total fund

without supplemental budget.294.450(2)

3. Transfers of appropriations, or appropriations and a like amount ofresources, may be made from the General Fund to any other fund by boardresolution.

294.450(3)

B. Basis of accounting. 294.4451. Cash2. Accrual3. Modified Accrual

75

Appendix C—Taxing Powers andLimitations of Local Governments

Local government taxes are subject to both constitutional (Article XI, Section 11) and statutorylimitations. RMV means real market value (ORS 308.205).

Local Government Tax (T) or Bond (B)ORS

Reference

1. Airport district T: Ad valorem tax. Limited to 1/2 of 1%(.005) of RMV.

838.060(1)

2. Cemetery T: Ad valorem tax. Constitutional rate limit. 265.140(9)

3. Cities T: Ad valorem tax. Constitutional rate limit. Art. XI, sec. 11

a. Community houses T: Local option tax or bonds voter-approved.

276.732276.734276.736

b. Park commission T: Limited to 1/2 mill (.0005) of assessedvalue.

226.200

c. Park property T: Local option tax for special purposes, 1/2

mill of assessed value. Requires voterapproval.

226.220

d. Parking facilities B: General obligation bond within city’sdebt limit, or revenue bonds.

223.825

4. Community colleges,general fund

T: Ad valorem tax. Constitutional rate limit.Local option taxes limited to amount ofloss resulting from Measure 50implementation in 1997-98.

341.305341.308280.057

5. Counties T: Ad valorem tax. Constitutional rate limit. Art. XI, sec. 11

a. County fairmaintenance

T: Limited to 1/160 of 1% (.0000625) of RMVunless approved by voters for a specificlevy.

565.330

b. General road fund T: Ad valorem tax. 368.705

c. Veterans T: Limited to 1/80 of 1% (.000125) of RMV. 408.720

6. County service district T: Ad valorem tax. Constitutional rate limit.B: General obligation bonds within debt

limit.

451.547451.490

a. Facilities T: Limited to 50 cents per year per $1,000of RMV for a period not to exceed fiveyears.

B: General obligation bonds within debtlimit and revenue bonds.

451.540(1)

451.545

7. Diking district T: Ad valorem tax. Constitutional rate limit. 551.100(2)

8. Drainage district T: Acreage assessment. 547.455547.475547.480547.485

76

9. Drainage road district T: Acreage assessment on a benefited basisat maximum of $1.00 per acre.

371.065

10. Education service district T: Ad valorem tax. Constitutional rate limit.No authority to impose a local optiontax.

334.270280.040

a. Equalization financing T: Grant and Wallowa counties only. 334.390

11. Health districts T: Ad valorem tax. Constitutional rate limit.Additional limit of 1/4 of 1% (.0025) ofRMV plus amount for bonds andinterest.

440.395

12. Highway lighting district T: Assessments may be imposed upon allreal property on any reasonable basis.Limit is $1.00 per year per front-foot.May also levy a special assessment topay initial construction and installationcost.

372.170

13. Irrigation district T: Acreage assessment. 545.381

14. Library T: Ad valorem tax. Constitutional rate limit.Limited to 1/4 of 1% of RMV.

357.266

15. Mass transit T: Ad valorem tax. Constitutional rate limit.B: General obligation bonds.

267.305

a. Facilities T: Limited to 3/20 of 1% (.0015) of RMV tobe credited to a revolving fund.

267.310

16. Metropolitan service T: Ad valorem tax. Limited to 1/2 of 1%(.005) of RMV plus amount for bondsand interest.

268.500

17. Park and recreation district T: Ad valorem tax. Limited to 1/2 of 1%(.0050) of RMV plus amount for bondsand interest.

266.420266.540

18. People’s utility district T: Tax limited to 1/20 of 1% (.0005) of RMV.The accumulated percentages for the 10-year period over 10 successive yearsshall not exceed 1/4 of 1% (.0025).

261.385

19. Pesticide restricted andprotected area

T: Ad valorem tax. Limited to 1/40 of 1%(.00025) of RMV.

634.242

20. Port districts T: Ad valorem tax. Limited to 1/4 of 1%(.0025) of RMV plus amount for bondsand interest.

777.430777.470

21. Port of Portland T: Ad valorem tax. Constitutional rate limit. 778.065

22. Public library T: Ad valorem tax. Constitutional rate limit. 357.410(6)

23. Road districts

a. County road district T: Ad valorem tax. Constitutional rate limit.Subject to Local Budget Law whenimposing an ad valorem tax.

371.097

77

b. Road assessment district(counties of 19-25,000only)

T: Assessment done on an ad valorembasis. Limited to 1/4 of 1% (.0025) ofRMV plus 1/4 of 1% (.0025) of RMV uponvoter approval.

371.500

c. Special road district T: Ad valorem tax. Constitutional rate limit. 371.344

24. Rural fire protection district

a. Fire purposes T: Ad valorem tax. Constitutional rate limit.B: General obligation bonds upon voter

approval 1/4 of 1% (.0125) of RMV.

478.410

b. Road lighting T: Ad valorem tax. Constitutional rate limit.Limited to 1/10 of 1% (.001) of RMV. 1/4 of1% (.0025) of RMV; additional uponvoter approval

478.450

25. Sanitary authorities T: Ad valorem tax. Constitutional rate limit. 450.885

26. Sanitary districts T: Ad valorem tax. Constitutional rate limit. 450.170

27. School districts T: Ad valorem tax. Constitutional rate limit.Amount of local option tax exempt frombeing counted as local revenue is limitedto 10% of State School Fund grants or$500 per ADMw. See 327.013(10).

328.542280.040327.013

28. Soil conservation districts T: Ad valorem tax. Constitutional rate limit. 568.806

a. Wind erosion control T: Local option tax. 568.880

29. Television translator T: No power to levy ad valorem taxes.

30. Urban renewal agencies T: Depends on option chosen in 1998. Seestatute.

457.435

31. Water control districts T: Preliminary assessments 5/100 of 1%(.0005) of RMV for no more than 3years. Construction assessment for nomore than 10 years. Maintenance andoperations assessment. Improvementassessment limited to 1% of constructionassessment. Local option tax forgovernmental contracts 1/2 of 1% (.005)of RMV.

B: General obligation bonds upon voterapproval.

553.510553.730

553.610

32. Water district, domesticsupply

a. Water purposes T: Ad valorem tax. Constitutional rate limit.Limited to 1/4 of 1% (.0025) of RMV, plusamount for bonds and interest.

264.300

b. Fire purposes (fireapparatus)

T: Local option tax limited to 3/20 of 1%(.0015) of RMV.

264.340(2)

78

c. Fire purposes T: Local option tax limited to 4/10 of 1%(.0040) of RMV.

264.340(2)

d. Street lighting,installation

T: Limited to 3/20 of 1% (.0015) of RMV.Assessments for installation of highwaylighting system.

264.350(3)

e. Street lightingmaintenance andoperations

L: Limited to 1/20 of 1% (.0005) of RMV. Feefor maintenance and purchase of energy.Voter approval required.

264.350(3)264.350(5)

33. Water improvement T: Ad valorem tax. Constitutional rate limit.Maximum rate fixed upon creation ofthe district or as amended by voters.Service charges, fees, or tolls based oncost of operation.

552.625552.630

a. Revolving fund T: Local option tax limited to 3/20 of 1%(.0015) of RMV.

552.635

b. Bonds B: General obligation bonds outstandingdebt 21/2% of RMV; not to exceed 50years for maturity.

552.645

34. Weather modificationdistricts

T: Ad valorem tax. Limited to 1/4 of 1%(.0025) of RMV.

558.340

35. Weed control T: Ad valorem tax. Local option taximposed by county to be used for weedcontrol fund. Special assessment forweed control activities.

570.560570.562

36. Vector (mosquito) controldistrict

T: Ad valorem tax. Constitutional rate limit.Limited to 2/10 of 1% (.002) of RMV; inlieu of, or in addition to tax, the districtmay ask the county to levy within thesame limitation.

452.153452.160

37. Zone 2 fire patrol, county T: Ad valorem tax. Constitutional rate limit.Limited to 1/4 of 1% (.0025) of RMV.Local option tax of 1/4 of 1% in additionto above; requires voter approval.

B: General obligation bonds limited to 1/4 of1% (.0125) of RMV.

476.330

Note: Every effort was made to make this a comprehensive list. Reader should be aware that there maybe additional statutory or charter limits not listed here. Always refer to the actual statute whencalculating a limitation.

79

Appendix D - Permanent Rates LimitsFy 2001-02. Includes SB 123 recalculated rates, andother changes due to mergers, consolidations, etc.where applicable.

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Baker CountyBaker County 3.7286Unity Community Hall Rec 0.0000Baker Valley Vector Control 0.3423Baker County Library 0.5334Durkee Community Building 0.1326Hereford Community Building 0.4540Eagle Valley Cemetery 0.4142Haines Cemetery 0.3537Pine Valley Cemetery 0.1357Baker County RFPD 0.6734Eagle Valley RFPD 0.8500Haines RFPD 0.8500Keating RFPD 0.0000North Powder Jt RFPD 0.6633Pine Valley RFPD 0.5535Powder River RFPD 0.0000Baker 5J School 4.6051Huntington 16J School 4.5332North Powder 8J School 4.9135Pine-Eagle 61 School 4.9514Malheur ESD 0.3077Union/Baker Region 13 ESD 0.7313Treasure Valley Comm College 1.2235Baker City 6.3314Haines City 1.7562Halfway City 1.0373Huntington City 9.6028Richland City 1.1624Sumpter City 0.7987

Benton CountyBenton County 2.2052Vineyard Mountain Park & Rec 0.0856Brownley Marshal Road 0.9301Chinook Drive Road 0.9533Country Estates Road 0.5606Mary’s River Road 2.9414Mcdonald Forest Road 0.6298North F St Road 1.2086Oakwood Heights Road 0.5876Ridgewood Road 0.6435Rosewood Road 1.4916

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Skyline Terrace Road 0.0000Vineyard Mountain Road 1.5244Westwood Hills Road 1.3605Junction City J Water Control 0.2523North Albany County Service 0.0000Benton County Library 0.3947Alsea Cemetery 0.1654Adair 3 RFPD 1.7512Alsea 7J RFPD 1.1363Blodgett-Summit 9 RFPD 1.0638Corvallis 1J RFPD 2.1140Hoskins-Kings Valley 8J RFPD 2.4165Monroe 5J RFPD 1.6854North Albany 2 RFPD 1.4071Palestine 6 RFPD 1.2493Philomath 4 RFPD 1.5080Alsea 7J School 5.0811Central 13J School 4.8834Corvallis 509J School 4.4614Greater Albany 8J School 4.5855Harrisburg 7J School 4.6552Monroe 1J School 4.6341Philomath 17J School 4.8664Linn-Benton ESD 0.3049Willamette Regional ESD 0.2788Lane Community College 0.6191Linn-Benton Community College 0.5019Adair Village City 2.5894Albany City 6.3984Corvallis City 5.1067Monroe City 3.5566Philomath City 5.3005

Clackamas CountyClackamas County (Rural) 2.9766Clackamas County (City) 2.4042Lake Grove Park & Rec 0.0420South Clackamas Rec 0.0000N Clackamas Park & Rec 0.5382Portland J Port 0.0701Barlow 9 Road 0.0000Canby 8 Road 0.0000Estacada 7 Road 0.0000Gladstone 5 Road 0.0000Happy Valley 11 Road 0.0000Johnson City 16 Road 0.0000Lake Oswego 3J Road 0.0000

80

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Milwaukie 4J Road 0.0000Molalla 10 Road 0.0000Oregon City 1 Road 0.0000Portland 12J Road 0.0000Rivergrove Road 0.0000Sandy Road 0.0000Tualatin Road 0.0000West Linn 2 Road 0.0000Wilsonville Road 0.0000Government Camp 2 Sanitary 0.2905Oak Lodge 2 Sanitary 0.0000Unified Sewerage Agency J 0.0000Alder Creek 29 Water 0.0000Boring 24 Water 0.0000Clackamas River 2 Water 0.0000Colton 11 Water 0.0000Country Club Water 0.0000Damascus 20 Water 0.0632Lake Grove 15 Water 0.0000Mossy Brae 12 Water 0.0000Mt View 25 Water 0.0000Mulino 23 Water 1.4774Oak Lodge 4 Water 0.0000Palatine Hill J Water 0.0038Pleasant Home J Water 0.0000River 2 Water (Clairmont 18 Bond) 0.0000Rivergrove 14J Water 0.0000Riverside Water 0.0000Shadowood 17 Water 0.0000Sleepy Hollow Water 0.0000Southwood Park 21 Water 0.0000Sunrise Water Authority 0.0000Wildwood Annex Water 0.0000Clackamas Bend 3 Water Control 0.0000Clackamas River 4 Water Control 0.0000Eagle Creek Drainage 0.0000Shady Dell 2 Water Control 0.3249Clackamas Vector Control 0.0065Service Dist 1 0.0000Clackamas County Service 1a 0.0000Clackamas County Service 1b 0.0000Metro J Service 0.0966Dunthorpe-Riverdale 5 Service 0.0000Tri-City Service 0.0000S Clackamas Trans 0.0000Tri-Met Transit 0.0000Clackamas Co Enhanced Law Enf 0.7198

Estacada Cemetery 0.0592Aurora 63J RFPD 0.8443Boring 59 RFPD 2.3771Canby 62 RFPD 1.5456Clackamas 1 RFPD 2.4012Clackamas 68 RFPD 1.4996Colton 70 RFPD 1.5601Estacada 69 RFPD 2.4029Hoodland 74 RFPD 2.6385Lake Grove 57 RFPD 1.9092Molalla 73 RFPD 0.7833Monitor 58J RFPD 0.5341Riverdale Multnomah 11J RFPD 1.2361Rosemont 67 RFPD 0.4801Sandy 72 RFPD 2.1775Silverton 2J RFPD 1.0397Tualatin Valley Jt RFPD 1.5252Canby 86 (Canby Elem Bond) 0.0000Canby 86 School 4.5765Centennial 28J School 4.7448Colton 53 School 4.9801Estacada 108 School 4.1476Gladstone 115 School 4.8650Gresham 26 (Damascus-Union Bond) 0.0000Gresham 26 (Orient 6 Bond) 0.0000Gresham-Barlow 26J School 4.5268Lake Oswego 7J School 4.4707Lake Oswego 7J School (Bond) 0.0000Molalla 4 (Code 86-038 Bond) 0.0000Molalla 4 (Code 86-040 Bond) 0.0000Molalla 4 (Dickie Prairie Bond) 0.0000Molalla 4 (Molalla 35 Bond) 0.0000Molalla 4 (UH4 Bond) 0.0000Molalla River 4 School 4.7001Multnomah Portland 1J School 4.7743Newberg 29J School 4.6616North Clackamas 12 School 4.8701Oregon City 62 School 4.9629Oregon Trail (Welches 13 Bond) 0.0000Oregon Trail School 4.6397Riverdale 51J School 3.8149Sherwood 88J School 4.8123Silver Falls 7J School 4.5458Tigard Tualatin 23J School 4.9892West Linn 3J School 4.8684Clackamas ESD 0.3687Jefferson ESD 0.2398Multnomah ESD 0.4576Northwest Regional ESD 0.1538

Clackamas County (continued)

81

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1000

of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1000

of Assessed Value)

Willamette Regional ESD 0.2788Yamhill ESD 0.3615Clackamas Community College 0.5582Mt Hood Community College 0.4416Portland Community College 0.2828Barlow City 0.5894Canby City 3.4886Estacada City 2.6749Gladstone City 4.8174Happy Valley City 0.6710Johnson City 0.0000Lake Oswego City (Ins School) 5.0353Lake Oswego City (Out School) 4.5884Lake Oswego City (Bonds) 0.0000Milwaukie City 6.5379Molalla City 5.3058Oregon City 5.0571Portland City 4.5770Rivergrove City 0.0000Sandy City 4.1152Tualatin City 2.2665West Linn City 2.1200Wilsonville City 2.5206Clackamas County UR Special Levy 0.0000Gladstone UR Special Levy 0.0000Lake Oswego UR Special Levy 0.0000Oregon City UR Special Levy 0.0000Wilsonville UR Special Levy 0.0000Portland UR Special Levy 0.0000Tualatin UR Special Levy 0.0000

Clatsop CountyClatsop County 1.5338Sunset Empire Park & Rec 0.9280Astoria Port 0.1256Astoria Road 0.0000Cannon Beach Road 0.2590Gearhart Road 0.0602Road District 1 1.0175Seaside Road 0.3036Warrenton Road 0.2106Westport Sewer 0.0000Arch Cape Sanitary 0.0000Shoreline Sanitary 0.0000Arch Cape Water 0.0000Burnside Water 0.0000Falcon Cove J Water 0.7344Sunset Lake Water 0.0000Wauna Water 0.0000

Wickiup Water 0.0000Clatsop Co Extension Service 0.0534Clatsop Co Rural Law Enf 0.7195Sunset Empire Transportation 0.1620Cannon Beach Jt RFPD 0.3521Elsie Vinemaple RFPD 1.3009Gearhart RFPD 0.3194Hamlet RFPD 1.2429John Day-Fernhill RFPD 1.1763Knappa-Svensen Burnside RFPD 1.1845Lewis & Clark RFPD 1.0928Mist-Birkenfeld Jt RFPD 2.0875Nehalem Jt RFPD 0.8942Olney-Walluski RFPD 0.8900Seaside RFPD 0.5475Warrenton RFPD 0.6318Westport-Wauna RFPD 1.9226Clatsop Care Center Health 0.1763Clatsop County Ambulance 0.0000Union Health 0.1365Astoria 1 School 4.9407Clatskanie 6J School 4.6062Jewell 8 School 3.7690Knappa School 4.6062Seaside Admin 10 School 4.4105Warrenton-Hammond 30 School 4.5902Northwest Regional ESD 0.1538Clatsop Community College 0.7785Astoria City 8.1738Cannon Beach City 0.7049Gearhart City 1.0053Seaside City 3.1696Warrenton City 1.6701Astoria UR Special Levy 0.0000Seaside UR Special Levy 0.0000

Columbia CountyColumbia County 1.3956Clatskanie Park & Rec 0.3483Greater St Helens Park & Rec 0.2347Scappoose Park 0.0000St Helens Port 0.0886Columbia County Road 0.0000Columbia Swcd 0.0000Columbia Vector 0.1279Columbia 4h & Extension 0.0571Columbia River Pud 0.0000Clatskanie Pud 0.0000Clatskanie Library 0.2868

82

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Columbia County (continued)Scappoose Library 0.2536Rainier Cemetery 0.0709Clatskanie RFPD 1.7198Mist-Birkenfeld Jt RFPD 2.0875Rainier RFPD 1.5350Scappoose 31J RFPD 1.1145St Helens RFPD 3.2845Vernonia RFPD 0.9535Columbia Health 0.0107Columbia Co Emer Communication 0.2554Clatskanie 6J School 4.6062Rainier 13 School 5.4360Scappoose 1J School 4.9725St Helens 502 School 5.0297Vernonia 47J School 5.0121Northwest Regional ESD 0.1538Portland Community College 0.2828Clatskanie City 6.2088Columbia City 1.1346Prescott City 0.3086Rainier City 5.2045St Helens City 1.9078Scappoose City 3.2268Vernonia City 5.8163Rainier UR Special Levy 0.0000

Coos CountyCoos County 1.0799Millicoma River Park & Rec 0.4577Bandon Port 0.3249Coos Bay Port 0.6119Coquille River (J) Port 0.1116Baker Riverton Special Road 1.4144Carlson Heights Road 0.2007Coos Ranchettes Road 2.0474Garden Drive Road 1.0710Gladewood Heights Road 0.0000Pacific Riviera Road 0.5775Shorewood Road 0.5951Stewart’s Road 1.0865Bunker Hill Sanitary 1.9952Charleston Sanitary 0.3116Lakeside Water 0.7065SRCA Water 1.5369Coos County Library 0.7289Coos 4h Extension 0.0888Bandon 8 RFPD 1.2534Bridge 16 RFPD 0.7390

Bunker Hill 1 RFPD 2.1873Charleston 6 RFPD 4.0715Coquille 3 RFPD 0.8670Dora Sitkum RFPD 0.9846Fairview 14 RFPD 2.1741Greenacres 7 RFPD 1.6791Hauser 12 RFPD 1.9584Lakeside 4J RFPD 0.9945Libby 13 RFPD 2.6049Millington 5 RFPD 1.3449Myrtle Point 18 RFPD 1.4450North Bay 9 RFPD 1.1197Sumner 11 RFPD 1.5650Timber Park 17 RFPD 2.2285Bay Area Hospital 0.0000Coquille Valley Hospital 1.5299Southern Coos Health 0.8892Myrtle Point Health 0.2035Powers Health 1.8723Bandon 54 School 3.9702Coos Bay 9 School 4.5276Coquille 8 School 4.2522Myrtle Point 41 School 4.5152North Bend 13 School 4.1626Port Orford-Langlois 2J School 3.9596Powers 31 School 4.4483South Coast 7 ESD 0.4432Southwestern Oregon Comm College 0.7017Bandon City 0.4580Coos Bay City 6.3643Coquille City 6.1038Lakeside City 0.0000Myrtle Point City 7.9950North Bend City 6.1831Powers City 7.3946Coos County UR Special Levy 0.0000Bandon UR Special Levy 0.0000Coos Bay UR Special Levy 0.0000North Bend UR Special Levy 0.0000

Crook CountyCrook County (Bond) 0.0000Crook County (City) 3.8702Crook County (Rural) 4.6128Crook Co Park & Rec 0.7569Prineville Lake Acres Road 1.8913Ochoco West Sanitary 1.0607Juniper Canyon Water 0.0000Ochoco West Water 1.7539

83

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1000

of Assessed Value)

Crook Vector Control 0.2114Agricultural Extension Service 0.1207Crook County Cemetery 0.0994Crook County RFPD#1 1.5900Brothers 15J School 4.6712Crook Co School 4.7870Deschutes ESD 0.0964Central Oregon Comm College 0.6204Prineville City 3.0225

Curry CountyCurry County 0.5996Brookings Port 0.1316Gold Beach Port 0.4132Port Orford Port 0.3591Mountain Drive Road 1.4700Camellia Park Sanitary 0.0000Harbor Sanitary 0.0000Knoxtown Sanitary 0.5687Wedderburn Sanitary 0.7676Harbor Water 0.0000Langlois Water 1.4414Nesika Beach Water 0.0000Ophir Water 0.0000Curry SWCD 0.0000Curry Co 4H Service 0.1021Agness Library 0.6634Chetco Community Library 0.4256Curry Public Library 0.6609Langlois Library 0.7707Port Orford Library 0.4975Langlois Cemetery 0.0847Pistol River Cemetery 0.1254Port Orford Cemetery 0.0451Rogue River Cemetery 0.0772South Curry Cemetery 0.0368Cape Ferrelo RFPD 0.4811Dawson Tract RFPD 0.3345Gold Beach-Wedderburn RFPD 1.2609Harbor RFPD 0.2332Langlois RFPD 1.5974Ophir RFPD 0.4077Pistol River RFPD 0.9873Port Orford RFPD 1.3202Sixes RFPD 0.5150Squaw Valley North Bank RFPD 0.6312Suburban RFPD 0.3345Upper Chetco RFPD 0.7126Winchuck RFPD 0.8971

Brookings-Harbor Health 0.0000Curry Health 0.7425Brookings-Harbor 17 School 3.2494Central Curry 1 School 3.5528Port Orford-Langlois 2J School 3.9596South Coast 7 ESD 0.4432Southwestern Oregon Comm College 0.7017Brookings City 3.7631Gold Beach City 2.3360Port Orford City 2.2688

Deschutes CountyDeschutes County 1.2783Deschutes County Sheriff (City) 0.0000Deschutes County Sheriff (Rural) 0.0000Bend Metro Park & Rec 1.4610Central Oregon Park & Rec 0.3717La Pine Park & Rec 0.0000Sisters Oar Rec 0.2200Beaver Special Road 1.2013Bend Cascade V Est Tr 2 Road 1.3569Cascade View Spec Road 1.5000Crooked River Ranch J Road 0.8140D.R.R.H. Unit8 Pt3 Road 0.0000Fall River Est Special Road 0.9786Forest View Sub Special Road 1.2765Howell Hilltop Acres Spec Road 2.2525Lazy River Special Road 4.2147McArdle Special Road 0.0000Newberry Estate Special Road 0.7831OR Winter Wonderland 1 Road 0.0000Panoramic Access Special Road 1.1860Ponderosa Pine East Road 1.0469River Bend Estates Special Road 3.1949River Forest Acres Special Road 1.5610Special District 1 Road 1.9820Special District 4 Road 0.0000Special District 6 DRRH Road 1.3502Special District 8 Road 1.6239Squawk Creek Special Road 0.0000Sun Mountain Ranches Spec Road 3.6500Vandevert Acres Special Road 1.6123OR Winter Wonderland Ii Sanitary 0.0000Sunrise Village Sanitary 0.0000Starwood Sanitary 0.0000Lapine Special Sewer 0.0000Laidlaw Water 0.0000Ponderosa Water 0.0000Terrebone Water 0.0000

84

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Deschutes County (continued)Chaparral Water Control 0.0000Four River Vector Control 0.2895Deschutes Co Extension Service 0.0224Black Butte Ranch Service 1.0499Bend Library 0.0000Deschutes Library 0.5500Lapine Library 0.0000Redmond Library 0.0000Sisters Library 0.0000Sun River Library 0.0000Black Butte Ranch RFPD 1.4677Cloverdale RFPD 1.0924Crooked River Ranch Jt RFPD 1.8379Deschutes 1 Jt RFPD 1.7542Deschutes 2 RFPD 1.4366Lapine RFPD 1.5397Sisters Camp Sherman Jt RFPD 2.7317Central Oregon Hospital 0.1323Deschutes Co Operation 911 0.1618Bend 1 (73 Bond) 0.0000Bend 1 School 4.7641Brothers 15J School 4.6712Redmond 2J School 5.0251Sisters 6J School 4.0997Deschutes ESD 0.0964Central Oregon Community College 0.6204Bend City 2.8035Redmond City 6.1643Sisters City 2.6417

Douglas CountyDouglas County 1.1124Lower Umpqua Park & Rec 0.2416North Douglas Park & Rec 0.4702Riddle Park & Rec 0.0000River Bend Park & Rec 0.0000Sutherlin Park & Rec 0.0000Yoncalla Park 0.1552Coquille River (J) Port 0.1116Umpqua Port 0.3441Bar L Ranch Road 5.2396Humphrey Add Road 7.1340Oakwood Road 0.0000Overlook-Scotview Road 2.5000Raccoon Road 2.5000Roaring Camp Road 0.0000Sable Drive Road 0.6933Spring Brook Road 2.4881

Standley Road 1.7264Sunshine Acres Road 0.0000Terrace Drive Road 1.3978Upper Cleveland Rapid Road 2.6898Canyonville Sanitary 0.0000Gardiner Sanitary 1.4191Green Sanitary 0.0000Rice Hill Sanitary 0.0000Roseburg Urb Sanitary 0.0000Tri City Sanitary 0.5658Union Gap Sanitary 0.0000Winchester Bay Sanitary 0.0000Canyonville Water 0.0000Indian Spring Water 0.0000Lawson Acres Water 0.0000Ridgewood Water 0.0000Roberts Creek Water 0.0000South Side Water 0.0000Tri City Water 0.1720Union Cap Water 0.0000Winchester Water 0.0000Winston-Dillard Water 0.0000Lookinglass-Olalla Water Control 0.0000Sutherlin Water Control 0.5079Riddle Cemetery 0.0412Azalea RFPD 0.9752Calapooya RFPD 1.5555Camas Valley RFPD 0.6937Canyonville/South Umpqua RFPD 0.6857Days Creek RFPD 0.7881Douglas 2 RFPD 3.1651Drain RFPD 1.3079Elkton RFPD 1.1029Fair Oaks RFPD 1.1058Gardiner RFPD 2.0026Glendale RFPD 0.5718Glide RFPD 1.0708Kellogg RFPD 0.8100Lakeside 4J RFPD 0.9945Lookingglass RFPD 0.5077Milo Volunteer RFPD 1.6845Myrtle Creek RFPD 0.4937Oakland RFPD 1.0211Rice Hill RFPD 1.1308Riddle RFPD 1.4623Scottsburg RFPD 0.9970Siuslaw 1J RFPD 1.5417Ten-Mile RFPD 1.5689Tiller RFPD 2.8082

85

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Tri-City RFPD 1.2746Umpqua RFPD 0.0000Winchester Bay RFPD 1.6546Winston-Dillard 5 RFPD 4.6453Yoncalla RFPD 1.1080Lower Umpqua Hospital 3.9729Glendale Ambulance 0.0000Camas Valley 21 School 4.6977Days Creek 15 School 4.8367Elkton 34 School 4.3624Fern Ridge 28J School 4.8240Glendale 77 School 4.7431Glide 12 School 4.5037North Douglas 22 School 4.7844Oakland 1 School 4.6397Reedsport 105 School 4.3788Riddle 70 School 4.6635Roseburg 4 School 4.0327South Lane 45J School 4.7532South Umpqua 19 School 4.7091Sutherlin 130 School 4.0815Winston-Dillard 116 School 4.3994Yoncalla 32 School 4.6884Siuslaw 97J School 3.8928South Coast 7 ESD 0.4432Douglas ESD 0.5296Lane ESD 0.2232Lane Community College 0.6191Southwestern Oregon Comm College 0.7017Umpqua Community College 0.4551Canyonville City 3.2303Drain City 1.5235Elkton City 2.3277Glendale City 4.7127Myrtle Creek City 6.5088Oakland City 6.4096Reedsport City 6.1882Riddle City 6.4885Roseburg City (Outside Downtown) 8.4774Roseburg City (Downtown) 8.9230Roseburg City (Serafin) 5.0864Sutherlin City 5.6335Winston City 4.2718Yoncalla City 1.4587

Gilliam CountyGilliam County 3.8450Arlington Port 0.1425Northern Oregon Regional Corrections 0.0000

North Gilliam Cemetery 0.1610South Gilliam Cemetery 0.3699North Gilliam County RFPD 0.5311South Gilliam RFPD 0.3332North Gilliam Health 0.9425South Gilliam Health 0.8293Arlington 3 School 3.1662Arlington 3 School (Bond) 0.0000Condon 25J School 3.3143Morrow 1 School 4.0342North Central ESD 2.0193Arlington City 7.1192Condon City 7.2820

Grant CountyGrant County 2.8819Grant County Park & Rec 0.7484Grant Co Extension Service 0.2598Dayville Cemetery 0.2570Fox Cemetery 0.7619Long Creek Cemetery 0.3230Mid-County Cemetery 0.3010Monument Cemetery 0.5660Prairie Cemetery 0.1673John Day RFPD 0.5941Mt Vernon RFPD 1.0012Prairie RFPD 0.4901Blue Mountain Hospital 2.1329Dayville 16J School 2.2213Grant (John Day) 3 School 1.6468Long Creek 17 School 1.6643Monument 8 School 1.8868Prairie City 4 School 1.5913Grant ESD 3.7557Canyon City 3.9998Dayville City 1.1554John Day City 2.9915Long Creek City 2.2776Monument City 2.7052Mt Vernon City 2.5348Prairie City 4.0826Seneca City 6.0017

Harney CountyHarney County 4.5016High Desert Park & Rec 0.4143Harney County Hospital 1.9314Crane 4 School 2.4165Crane UH1J School 2.4397

86

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AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Diamond 7 School 2.9315Double O 28 School 0.8176Drewsey 13 School 1.8867Frenchglen 16 School 1.7223Harney (Burns) 3 School 4.8662Pine Creek 5 School 3.2660South Harney 33 School 1.2358Suntex 10 School 1.3219Harney ESD 0.8969Burns City 4.6390Hines City 4.2922

Hood River CountyHood River County 1.4171Hood River Park & Rec 0.3498Cascade Locks Port 0.0256Hood River Port 0.0332Odell Sanitary 0.0000Parkdale Sanitary 0.0000Hood River Co Transit 0.0723Northern OR Regional Corrections 0.0000Dee RFPD 1.4819Odell RFPD 1.1187Parkdale RFPD 1.5587Pine Grove RFPD 0.9442West Side RFPD 0.7810Hood River County 911 0.5644Hood River 1 School 4.8119Region 9 Wasco ESD 0.4678Mt Hood Community College 0.4416Cascade Locks City 2.7050Hood River City 2.8112Hood River UR Special Levy 0.0000

Jackson CountyJackson County 2.0099Bear Creek Sanitry (Talent Bond) 0.0000White City Sanitary 0.0000Charlotte Ann Water 0.0000Jacksonville Water 0.0000Kings Highway Water 0.0000Jackson Vector 0.0429Rogue Valley Transportation 0.1772White City Enhanced Law Enf 2.0211Applegate Valley Jt RFPD 1.6787Colestein RFPD 1.9455Evans Valley RFPD 1.2905Jackson (Central Point) 3 RFPD 3.1194

Jackson (Shady Cove Trail) 4 RFPD 2.0181Lake Creek (Jackson) RFPD 1.4740Medford RFPD 2.4938Prospect RFPD 0.9902Rogue River RFPD 1.9313Talent 5 RFPD 3.1976Ashland 5 School 4.1601Butte Falls 91 School 4.5749Central Point 6 School 4.4134Jackson (Eagle Point) 9 School 4.7170Medford 549 School 4.4123Phoenix 4 School 4.2422Pinehurst 94 School 4.8235Prospect 59 School 4.3628Rogue River 35 School 4.0787Three Rivers (Applegate 40 Bond) 0.0000Three Rivers 40J School 3.7262Jackson ESD 0.3524Rogue Community College 0.5128Ashland City 4.2865Butte Falls City 7.2494Central Point City 5.8328Eagle Point City 2.4584Gold Hill City 1.6792Jacksonville City 1.8417Medford City 5.2953Phoenix City 3.6463Rogue River City 3.1492Shady Cove City 0.5474Talent City 3.2316Medford UR Special Levy 0.0000Talent UR Special Levy 0.0000Jackson County UR Special Levy 0.0000

Jefferson CountyJefferson County 3.5662Crooked River Ranch J Road 0.8140Camp Sherman 18 Road 0.1389Deschutes Valley Water 0.0000Metolius Irrigation 0.0000Jefferson County Library 0.4349Crooked River Ranch Jt RFPD 1.8379Deschutes 1 Jt RFPD 1.7542Jefferson County 1 RFPD 1.1847Sisters Camp Sherman Jt RFPD 2.7317Mt View Hospital 0.2508Deschutes County Operation 911 0.1618Ashwood 8 School 5.1380Black Butte 41 School 3.0137

Harney County (continued)

87

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Jefferson Culver 4 School 4.8766Jefferson Culver 4 School (94 Bond) 0.0000Jefferson Madras 509J School 4.5871Redmond 2J School 5.0251Redmond 2J (1989 Bond) 0.0000Sisters 6J (1989 Bond) 4.0997Deschutes ESD 0.0964Jefferson ESD 0.2398Central Oregon Community College 0.6204Culver City 6.2643Madras City 4.1262Metolius City 3.6296

Josephine CountyJosephine County 0.5867Harbeck-Fruitdale Sanitary 0.0000Redwood Sanitary Dist 0.0000Josephine Co Extension 0.0459Applegate Valley Jt RFPD 1.6787Illinois Valley 1 RFPD 1.8701Williams RFPD 1.0552Wolf Creek RFPD 2.1865Grants Pass 7 School 4.5248Three Rivers 40J School 3.7262Jackson ESD 0.3524Rogue Community College 0.5128Cave Junction City 1.8959Grants Pass City 4.1335

Klamath CountyKlamath County 1.7326Bonanza Big Springs Park & Rec 0.1769Malin Park & Rec 1.2834Merrill Park & Rec 0.8202Poe Valley Park & Rec 0.2544Wiard Park & Rec 0.2161Antelope Meadows Road 1.5571Cedar Trails Road 1.1206Goldfinch Road 2.7952Jack Pine Village Road 0.0000Keno Pines Road 2.0114Klamath Forest Estates Road 2.7820Klamath River Acres Road 1.5621Nimrod River Park Road 0.0000Pine Grove Highland Road 1.6482Rainbow Park Road 1.6658River Pines Estate Road 1.4276Sprague River Pines Road 0.0000Sun Forest Estates Road 1.1280

Two Rivers North Road 0.9922Valley Acres Road 1.7158Woodland Park Road 1.0654Yonna Woods Road 0.0000Bly Sanitary 1.6015Crescent Sanitary 0.8858Modoc Point Sanitary 0.0000Nimrod Park Sanitary 0.0000South Suburban Sanitary 0.0000Bly Water 1.4626Mayina Water 0.0000Pine Grove Water 2.2500Basin View Drainage 0.0000Klamath County Drainage 0.0000Bly Vector Control 1.7031Bonanza Vector 0.8796Chiloquin Vector 0.1807Klamath Vector 0.1805Poe Valley Vector 1.8726Basin Transit 0.4822Bonanza Cemetery 0.0968Malin Cemetery 0.1000Merrill Cemetery 0.1100Mt Laki Cemetery 0.1041Klamath County Library 0.4900Bly RFPD 2.8261Bonanza RFPD 0.6202Chemult RFPD 2.2397Chiloquin RFPD 0.9040Crescent RFPD 1.6326Crescent-Odell Lakes RFPD 2.2470Harriman RFPD 1.1866Keno RFPD 1.6149Klamath 1 RFPD 2.8822Klamath 3 RFPD 0.9869Klamath 4 RFPD 1.1013Klamath 5 RFPD 1.9583Lapine RFPD 1.6384Malin RFPD 0.3948Merrill RFPD 0.3948North Klamath Co RFPD 0.0000Klamath Co Emergency Comm 0.1541Klamath Falls 1 School 3.1127Klamath County School 4.0519Jackson ESD 0.3524Central Oregon Community College 0.6204Klamath Community College 0.4117Bonanza City 1.7706Chiloquin City 5.2766

88

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Klamath Falls City 5.4423Malin City 5.0642Merrill City 3.1210Klamath Falls UR Special Levy 0.0000

Lake CountyLake County 3.7619Christmas Valley Park & Rec 2.0019Lake View Suburban Sanitary 0.6729Christmas Valley Water 1.3392Lakeview Sub Dom Water 2.1171Lake County Extension 0.2392Lake County Library 0.4546Lake County Cemetery 0.2289Christmas Valley RFPD 2.2278Lakeview Suburban RFPD 0.8342New Pine Creek RFPD 2.5355Silver Lake RFPD 1.1763Thomas Creek-Westside RFPD 0.9054Lake County Health 2.0311North Lake Health 0.8500Adel 21 School 4.3686Lake (Lakeview) 7 School 4.5724North Lake 14 School 3.8550Paisley 11 School 4.5517Plush 18 School 2.5416Lake ESD 0.6364Central Oregon Community College 0.6204Lakeview City 6.5437Paisley City 1.5739

Lane CountyLane County 1.2793River Road Park & Rec 3.0559Willamalane Park & Rec 1.9732Siuslaw Port 0.1474Blue River Water 0.9488Glenwood Water 4.1425Heceta Water 0.0000Marcola Water 0.4037McKenzie Palisades Water 0.3620Rainbow Water 2.0631River Road Water 1.9694Junction City J Water Control 0.2523River Road Sub 1 Water Control 0.2796Metro Waste Water Service 0.0000Emerald Pud 0.0000Fern Ridge Library 0.3824

Siuslaw Public Library 0.5163Bailey-Spencer RFPD 2.3930Coburg RFPD 1.3277Creswell RFPD 1.0180Dexter RFPD 1.4151Eugene 1 RFPD 2.5417Goshen RFPD 1.7196Junction City RFPD 0.9844Lake Creek RFPD (Lane) 3.0757Lane County 1 RFPD 1.9848Lane Rural Fire & Rescue 2.1174Lorane RFPD 2.2952Lowell RFPD 2.6970Mapleton RFPD 1.3869McKenzie RFPD 1.6106Mohawk Valley RFPD 1.9126Monroe 5J RFPD 1.6854Pleasant Hill RFPD 1.1031Santa Clara RFPD 1.0439Siuslaw 1J RFPD 1.5417Southern Lane County RFPD 1.0476Swisshome-Deadwood RFPD 2.1452Upper McKenzie RFPD 1.1951Willakenzie RFPD 3.0669Zumwalt RFPD 2.3419Western Lane Ambulance 0.3198Alsea 7J School 5.0811Bethel 52 School 4.5067Blachly 90 School 5.1023Creswell 40 School 4.6426Crow-Applegate-Lorane 66 School 4.9255Fern Ridge 28J School 4.8240Harrisburg 7J (Wyatt 63 Bond) 0.0000Harrisburg 7J School 5.1193Junction 69 School 4.5604Lane (Eugene) 4J School 4.7485Lincoln CU School 4.9092Lowell 71 School 5.0409Mapleton 32 School 4.8917Marcola 79J School 4.6687McKenzie 68 School 4.6915Monroe 1J School 4.6341Oakridge 76 School 4.8223Pleasant Hill 1 School 4.6414Siuslaw 97J School 3.8928South Lane 45J School 4.7532Springfield 19 School 4.6412Lane ESD 0.2232Linn-Benton ESD 0.3129

Klamath County (continued)

89

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Lane Community College 0.6191Coburg City 3.7506Cottage Grove City 7.2087Creswell City 2.6705Eugene City 7.0058Eugene City Annex (152-05) 7.0058Florence City 2.8610Junction City 6.0445Lowell City 2.1613Oakridge City 7.1996Springfield City 4.7403Veneta City 5.6364West Fir City 9.3036

Lincoln CountyLincoln County 2.8202Alsea Port 0.0333Newport Port 0.0609Toledo Port 0.2345Bayshore Road 0.5064Belle Mer Sigl Tract Road 0.0000Boulder Creek Retreat Road 1.4585California Street Road 0.8500Coronado Shores Road 0.0000Echo Mtn Park Road 0.0000For Far Road 0.8966Gleneden Beach Road 0.2258Idaho Point Road 1.0000Lake Point Road 0.4669Little Switzerland Road 2.1525Lost Creek Park Road 1.6015Makai Special Road 1.0534Miroco Road 0.4097Pacific Shores Road 0.8125Panther Creek Road 0.8608Peterson Park Road 0.0000Pine Street Road 0.0000Salmon River Park Road 1.2000Sandpiper Village Road 0.5676Starr Creek Road 0.9978Surfland 1 Road 0.3458Waldport 3 Road 0.6960Westwood Road 0.7250Windy Bend Special Road 0.2095Cape Foulweather Sanitary 0.0000Gleneden Beach Sanitary 0.0000Olalla Acres Sanitary 0.0000Roads End Sanitary 0.0000Salishan Sanitary 0.0000

Sal-La-Sea Sanitary 0.0000Siletz Keys Sanitary 1.7346Beverly Beach Water 0.8626Car-mel Beach Water 0.0000Devils Lake WID (In) 0.2499Devils Lake WID (Out) 0.1280Kernville-Gndl Beach-Lincoln Water 0.0000Lower Siletz Water 0.0000Miroco Water 0.0000Otter Rock Water 0.0000Panther Creek Water 1.1397Seal Rock Water 0.1259SW Lincoln Water 0.0000Lincoln Co Extension 0.0451Lincoln Co Waste Disposal 0.0000Lincoln County Library 0.2465Lincoln County Transportation 0.0974Alsea 7J RFPD 1.1363Central Oregon Coast RFPD 0.8209Depoe Bay RFPD 0.8323Newport RFPD 0.9634North Lincoln Jt Fire & Rescue 0.6783Seal Rock RFPD 0.4634Siletz RFPD 1.3331Toledo RFPD 1.0522Yachats RFPD 0.2896Lincoln Hospital 0.0000North Lincoln Hospital 0.5184Pacific Communities Hospital 0.3625Lincoln Cu School 4.9092Linn-Benton ESD 0.3129Oregon Coast Community College 0.1757Depoe Bay City 0.0000Lincoln City 4.0996Newport City 5.5938Siletz City 0.2376Toledo City 5.1800Waldport City 2.3328Yachats City 0.1717Waldport UR Special Levy 0.0000

Linn CountyLinn County 1.2736Jefferson Park & Rec 0.2914Lebanon Aquatic Park 0.2400Lyons-Mehama J Water 0.0000Santiam Water 0.0000Linn Swcd 0.0000Dever-Connor Water Control 0.1614

90

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Linn County (continued)Grand Prairie Water Control 0.0000Grand Prairie Water Control II 0.0000North Lebanon Water Control 0.1420South Santiam J Water Control 1.0044Little Muddy Creek 0.0000Oakville Community Center 0.0000Chemeketa Library 0.0818Sweet Home Cemetery 0.2166Albany 1 RFPD 2.1500Brownsville 2 RFPD 1.1985Corvallis 1J RFPD 2.1140Gates 4J RFPD 1.3967Halsey-Shedd 5 RFPD 0.9894Harrisburg 6 RFPD 1.1299Idanha-Detroit 7J RFPD 1.6592Jefferson 8J RFPD 1.1955Lebanon 9 RFPD 2.2600Lyons 10 RFPD 1.6469Mill City 11J RFPD 1.3048Mohawk Valley RFPD 1.9126Scio 12 RFPD 1.2745Stayton 13J RFPD 1.3133Sweet Home 14 RFPD 0.4012Sweet Home Fire & Ambulance 1.5000Tangent 15 RFPD 2.5739Central Linn 552 School 4.6179Corvallis 509J School 4.4614Greater Albany 8J School 4.5855Harrisburg 7 (Wyatt Bond) 0.0000Harrisburg 7 School 4.6552Jefferson 14JSchool 4.8468Lane (Eugene) 4J School 4.7485Lebanon 9 (Hamilton Creek Bond) 0.0000Lebanon Community 9 School 4.9925Marcola 79J School 4.6687North Santiam 27J School 4.3973Santiam Canyon 129J School 4.8880Scio 95 (Scio 95 Bond) 0.0000Scio 95 School 4.5080Sweet Home 55 School 5.0057Lane ESD 0.2232Linn-Benton ESD 0.3049Willamette Regional ESD 0.2788Chemeketa Community College 0.6259Lane Community College 0.6191Linn-Benton Community College 0.5019Albany City 6.3984Brownsville City 6.9597

Brownsville (Bond) 0.0000Gates City 0.2824Halsey City 5.6014Harrisburg City 3.1875Idanha City 2.5029Lebanon City 5.1364Lebanon City (Bond) 0.0000Lyons City 1.8926Mill City 4.1578Millersburg City 0.0000Scio City 4.9057Sodaville City 0.4552Sweet Home City 1.4157Tangent City 0.0000Waterloo City 0.0000

Malheur CountyMalheur County 2.5823Dell-Brogan Cemetery 0.5253Fairview Cemetery 0.1171Hilltop Memorial Cemetery 0.4080Ironside Cemetery 0.6616Jordan Valley Cemetery 0.3780Owyhee Cemetery 0.1208Valley View Cemetery 0.3454Adrian RFPD 0.3699Annex RFPD 0.4926Nyssa RFPD 0.3625Ontario RFPD 0.6667Quinn RFPD 0.0000Malheur Memorial Hospital 0.8634Pioneer Nursing Home Hospital 0.0000Adrian 61 School 3.7424Annex 29 School 4.0643Arock 81 School 4.6844Burnt River 30J School 5.2650Crane UH1J School 2.4397Harper 66 (Code 16,17,44) School 3.8880Harper 66 (Code 23) School 1.6575Huntington 16J School 4.5332Jordan Valley 3 School 5.0446Juntura 12 (Code 22) School 1.7094Juntura 12 (Code 5&21) School 4.7692Mcdermitt 51 School 4.5972Nyssa 26 School 3.8654Ontario 8 School 3.9293Vale 84 School 4.0433Harney ESD 0.8969Malheur ESD 0.3077

91

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AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Malheur ESD (Code 22,23) 0.1396Union/Baker Region 13 ESD 0.7313Treasure Valley Comm College 1.2235Adrian City 0.0000Jordan Valley City 1.1650Nyssa City 6.5148Ontario City 4.8347Vale City 7.6847

Marion CountyMarion County 3.0252Jefferson Park & Rec 0.2914Labish Village Sewer & Drainage 0.0000Brooks Sewer 0.0000Beaver Creek Water Control 0.0000Keizer Water 0.0000Lyons-Mehama J Water 0.0000Santiam Water 0.0000South Santiam J Water Control 1.0044Suburban East Salem Water 0.0000Marion Soil And Water Conservation 0.0500East Salem Sewer & Drainage 0.0000Keizer Service 0.0000Fargo Interchange Service 0.0000Salem Area J Transit 0.7609North Marion Irrigation 0.0000Chemeketa Library 0.0818Silver Falls Library 0.5748Aumsville RFPD 1.3612Aurora 63J RFPD 0.8443Drakes Crossing RFPD 1.7548Gates 4J RFPD 1.3967Hubbard RFPD 0.8042Idanha-Detroit 7J RFPD 1.6592Jefferson 8J RFPD 1.1955Keizer RFPD 1.3526Marion 1 RFPD 1.9045Mill City 11J RFPD 1.3048Monitor 58J RFPD 0.5341Mount Angel RFPD 1.0146Polk 1J RFPD 1.3291Saint Paul RFPD 1.0622Salem Suburban Jt RFPD 1.0958Silverton 2J RFPD 1.0397Stayton 13J RFPD 1.3133Sublimity RFPD 1.7948Turner RFPD 1.7997Woodburn RFPD 1.6009Cascade 5 School 4.6405

Central 13J School 4.8834Gervais 1 School 4.6427Jefferson 14J School 4.8468Marion (Woodburn) 103 School 4.5247Mount Angel 91 School 4.6268North Marion 15 School 3.3333North Santiam 29J School 4.3973Salem 24J School 4.5210Santiam Canyon 129J School 4.8880Silver Falls (Victor Point Bond) 0.0000Silver Falls 7J School 4.5458St Paul 45 School 4.7763Linn-Benton ESD 0.3049Willamette Regional ESD 0.2788Chemeketa Community College 0.6259Aumsville City 3.6327Aurora City 2.4849Detroit City 1.1521Donald City 0.8752Gates City 0.2824Gervais City 8.0853Hubbard City 3.9772Idanha City 2.5029Jefferson City 2.1583Keizer City 2.0838Mill City 4.1578Mount Angel City 4.1918Salem City 5.8315Scotts Mills City 0.4292Silverton City 3.6678St Paul City 0.6157Stayton City 3.3280Sublimity City 0.7135Turner City 3.5116Woodburn City 6.0534Keizer UR Special Levy 0.0000Salem UR Special Levy 0.0000

Morrow CountyMorrow County 4.1347Boardman Park & Rec 0.2989Irrigon Park & Rec 0.4061Morrow County Unified Rec 0.4560Willow Creek Park 0.3813Port of Morrow 0.0841Heppner Water Control 0.1693Morrow Vector Control 0.1899Oregon Trail Library 0.2536Boardman Cemetery 0.0284

92

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AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Morrow County (continued)Heppner Cemetery 0.5413Ione-Lexington Cemetery 0.2401Irrigon Cemetery 0.1022Boardman RFPD 0.7464Heppner RFPD 0.7906Irrigon RFPD 0.8389Ione RFPD 0.7385Morrow County Health 0.6050Morrow 1 School 4.0342Umatilla ESD 0.5633Blue Mountain Community College 0.6611Boardman City 4.2114Heppner City 10.6209Ione City 4.4288Irrigon City 3.6782Lexington City 0.7289

Multnomah CountyMultnomah County 4.3434Portland J Port 0.0701Skyline Crest Road 0.4775Ramsey-Walmer Road 0.7267Unified Sewerage Agency J 0.0000Alto Park Water 1.5985Burlington Water 3.4269Corbett Water 0.5781Interlachen Water 0.0000Lusted Water 0.2423Mt Scott 3 J Water 0.0000Palatine Hill J Water 0.0038Pleasant Home J Water 0.0000Powell Valley Water 0.0000Richland Water 0.0000Sylvan Water 0.0000Valley View Water 1.7389West Slope J Water 0.0000Dunthorpe-Riverdale 1 Service 0.0000Metro J Service 0.0966Tri-Met Transit 0.0000Rockwood Utility 0.0000Clackamas 1J RFPD 2.4012Multnomah 10 RFPD 2.8527Multnomah 14 RFPD 1.2624Riverdale Multnomah 11J RFPD 1.2361Sauvie Island 30 RFPD 0.7894Scappoose 31J RFPD 1.1145Tualatin Valley Jt RFPD 1.5252

Beaverton 48J School 4.6930Centennial 28J School 4.7448Corbett 39 (Corb/Bnvl 1994 Bond) 0.0000Corbett 39 Bond 0.0000Corbett 39 School 4.5941David Douglas 40 School 4.6394Gresham 26 (Gresham 4 Bond) 0.0000Gresham 26 (Orient 6 Bond) 0.0000Gresham-Barlow 26J School 4.5268Hillsboro 1J (North Plains Bond) 0.0000Hillsboro 1J School 4.9749Lake Oswego 7J School 4.4707Parkrose 3 School 4.8906Portland 1J School 4.7743Reynolds 7 School 4.4626Riverdale 51J School 3.8149Scappoose 1J (Bond) 0.0000Scappoose 1J (Sauvie Islnd Bond) 0.0000Scappoose 1J School 4.9725Clackamas ESD 0.3687Northwest Regional ESD 0.1538Multnomah ESD 0.4576Mt Hood Community College 0.4416Portland Community College 0.2828Fairview City 3.4902Gresham City 3.6129Lake Oswego City (Ins School) 5.0353Lake Oswego City (Out School) 4.5884Lake Oswego City (Bonds) 0.0000Maywood Park City 0.0000Milwaukie City 6.5379Portland City 4.5770Troutdale City 3.7652Wood Village City 3.1262Lake Oswego UR Special Levy 0.0000Portland UR Special Levy 0.0000

Polk CountyPolk County 1.7160Grande Ronde Sanitary 0.0000Ash Creek Water Control 0.1069Salem Area J Transit 0.7609Chemeketa Library 0.0818Dallas Cemetery 0.0547Fir Crest Cemetery 0.0472Hilltop Cemetery 0.1132Pedee Cemetery 0.1520Amity Jt RFPD 0.8403

93

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Dayton Jt RFPD 1.2302Hoskins-Kings Valley 8J RFPD 2.4165Polk 1J RFPD 1.3291Salem Suburban Jt RFPD 1.0958Sheridan Jt RFPD 1.1188Southwest RFPD 0.8612Spring Valley RFPD 0.5366Willamina Jt RFPD 0.8936Amity 4J School 4.7796Central 13J School 4.8834Dallas 2 School 4.5527Falls City 57 School 4.2052Perrydale 21 School 4.5657Philomath 17J School 4.8664Salem 24J School 4.5210Sheridan 48J School 4.7882Willamina 30J School 5.0022Linn-Benton ESD 0.3049Willamette Regional ESD 0.2788Yamhill ESD 0.3615Chemeketa Community College 0.6259Dallas City 4.1954Falls City 2.9202Independence City 4.5897Monmouth City 3.6107Salem City 5.8315Willamina City 4.2039Salem UR Special Levy 0.0000

Sherman CountySherman County 8.7141Biggs Service 4.0061Northern OR Regional Corrections 0.0000Moro RFPD 0.8464North Sherman County RFPD 0.8452South Sherman County RFPD 0.5747Sherman County Health 0.4780Sherman 1J School 3.4203North Central ESD 2.0193Grass Valley City 3.1383Moro City 5.5232Rufus City 2.8447Wasco City 3.0306

Tillamook CountyTillamook County 1.4986North County Rec 0.3861Garibaldi Port 0.2620

Nehalem Port 0.1136Tillamook Bay Port 0.0364Three-Rivers 7 Road 2.8719Cloverdale Sanitary 0.1726Nehalem Bay Sanitary 0.4088Neskowin Regional Sanitary 0.0000Netarts-Oceanside Sanitary 0.0360Twin Rocks Sanitary 0.0000Beaver Water 0.0000Cloverdale Water 1.3883Fairview Water 0.1498Falcon Cove J Water 0.7344Neah-kah-nie Water 0.6438Neskowin Water 0.3831Netarts Bay Water 0.0000Oceanside Water 0.0000Oceanside Water (Bond) 0.0000Pacific City Water 0.0374Twin Rocks Water 4.3077Watseco Barview Water 0.0000Wilson River Water 1.5060Hebo Jt Sanitary And Water 0.0000Tillamook Co 4H & Extension 0.0690Cannon Beach Jt RFPD 0.3521Garibaldi RFPD 0.4813Nedonna RFPD 0.2668Nehalem Jt RFPD 0.8942Nestucca RFPD 0.9176Netarts/Oceanside RFPD 1.6207North Lincoln Jt Fire & Rescue 0.6783Tillamook RFPD 0.6999Nehalem Bay Health 0.0309Tillamook Co Emergency 911 0.1883Tillamook 9 School 5.0969Neah-kah-nie 56 School 4.5002Nestucca Valley 101J School 4.8580Willamina 30J School 5.0022Tillamook County Transportation 0.2000Northwest Regional ESD 0.1538Yamhill ESD 0.3615Tillamook Bay Community College 0.2636Bay City 1.5375Garibaldi City 2.8468Manzanita City 0.4233Nehalem City 1.4658Rockaway City 0.9880Rockaway City (Bond) 0.0000Tillamook City 1.8021Wheeler City 2.2213

94

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Umatilla CountyUmatilla County 2.8487Helix Park & Rec 0.4805Watson-Athena Park 0.0826Pilot Rock Park & Rec 0.0880Port of Umatilla 0.1539Rieth Water Supply 4.2916Birch Creek Water Control 0.1446Lower McKay Creek Water Control 0.2094Milton-Freewater Water Control 0.0737Riverside-Mission Water Control 0.8388Umatilla Rvr No 1 Water Control 0.5724Umatilla Rvr No 2 Water Control 1.1621West Umatilla Vector Control 0.2021East Umatilla Chemical Control 0.0421Umatilla Co Special Library 0.3682Athena 1 Cemetery 0.3174Echo 7 Cemetery 0.3816Helix 4 Cemetery 0.1730Hermiston 8 Cemetery 0.0923Milton Freewater 3 Cemetery 0.0566Pilot Rock 5 Cemetery 0.1741Stanfield 6 Cemetery 0.0971Weston 2 Cemetery 0.3254E Umatilla 7-412 RFPD 1.0012Echo 7-403 RFPD 0.5853Helix 7-411 RFPD 0.4397Hermiston 7-404 RFPD 1.2025Lower McKay 7-409 RFPD 3.7237McKay Dam 7-410 RFPD 2.8080Pilot Rock 7-401 RFPD 0.7807Riverside 7-406 RFPD 2.7521Stanfield 7-402 RFPD 2.0651Umatilla 7-405 RFPD 0.8511Umatilla Hospital 0.4820East Umatilla Health 0.1443Athena-Weston 29J School 4.3937Echo 5 School 4.6747Helix 1 School 4.5542Hermiston 8 School 4.8877Milton-Freewater (Ferndale Bond) 0.0000Milton-Freewater (M-F 31 Bond) 0.0000Milton-Freewater 7 School 4.7953Pendleton 16 School 4.4537Pilot Rock 2 School 4.7632Stanfield 61 School 4.1263Ukiah 80 School 4.8146Umatilla 6 School 4.9224Umatilla ESD 0.5633

Blue Mountain Community College 0.6611Adams City 4.1176Athena City 7.5678Echo City 4.2332Helix City 6.8007Hermiston City 6.0860Milton-Freewater City 3.7499Pendleton City 6.5771Pilot Rock City 2.8958Stanfield City 2.5894Ukiah City 2.6800Umatilla City 2.9191Weston City 5.6614Milton-Freewater UR Spec Levy 0.0000

Union CountyUnion County 2.8515Elgin Park & Rec 0.8222Island City Area Sanitary 0.5814Union Co Vector Control 0.0239Union Co 4H Extension 0.1619Cove Cemetery 0.1462Elgin Cemetery 0.1233Island City Cemetery 0.0931La Grande Cemetery 0.2828North Powder Cemetery 0.3197Summerville Cemetery 0.3433Union Cemetery 0.3953Cove RFPD 0.6231Elgin RFPD 0.4985Imbler RFPD 0.9000La Grande RFPD 0.9355North Powder Jt RFPD 0.6633Union RFPD 1.2292Athena-Weston 29J School 4.3937Baker 5J School 4.6051Cove 15 School 4.8120Elgin 23 School 5.0890Imbler 11 School 4.7110La Grande 1 School 4.6282North Powder 8J School 4.9135Union 5 School 5.0640Umatilla ESD 0.5633Union/Baker Region 13 ESD 0.7313Cove City 0.4007Elgin City 6.9383Imbler City 0.3669Island City 1.5171La Grande City 7.4392

95

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

North Powder City 4.3114Summerville City 0.3964Union City 1.5752

Wallowa CountyWallowa County 2.5366Wallowa Lake Service 0.0000Wallowa County 4-H & Extension 0.1625Wallowa County Animal Control 0.0567Enterprise Cemetery 0.1091Joseph Cemetery 0.0561Lostine Cemetery 0.3204Wallowa Cemetery 0.3075Alder Cemetery 0.2228Wallowa RFPD 0.4703Wallowa Co Health Care 1.0497Joseph 6 School 1.4439Wallowa 12 School 1.6597Enterprise 21 School 1.6911Troy 54 School 0.9362Wallowa Region 18 ESD 3.7930Enterprise City 5.0089Joseph City 2.9867Lostine City 0.3534Wallowa City 3.7643

Wasco CountyWasco County 4.2523Dufur Park & Rec 0.5453Northern Wasco Park & Rec 0.6799Port of The Dalles 0.2007Northern Ore Regional Corrections 0.0000Juniper Flat RFPD 2.3486Mosier RFPD 0.4771Mid-Columbia Fire & Rescue 2.1004Chenowith 9 School 4.7194Dufur 29 School 4.4659Dufur 29 School (Bond) 0.0000Fossil 21J School 4.3963Jefferson (Madras) 509J School 4.5871Sherman 1J School 3.4203South Wasco County 1 School 4.6651The Dalles 12 School 5.4894Jefferson ESD 0.2398Region 9 ESD 0.4678North Central ESD 2.0193Central Oregon Community College 0.6204Columbia Gorge Community College 0.2703Antelope City 1.6944

Dufur City 2.0377Maupin City 5.3573Mosier City 1.4128Shaniko City 0.0000The Dalles City 3.0155

Washington CountyWashington County 2.2484Tualatin Hills Park & Rec 1.3073Portland J Port 0.0701Rainbow Lanes Special Road 0.4888URban Road Maintenance 0.2456Unified Sewerage Agency J 0.0000Raleigh Water 0.0000Rivergrove 14 J Water 0.0000Tualatin Valley Water 0.0000Tualatin Water (Metzger Bond) 0.0000Tualatin Water (Wolf Creek Bond) 0.0000West Slope J Water 0.0000Wolsborn Farm Water 0.0000Metro J Service 0.0966Tri-Met Transit 0.0000Enhanced Sheriff Patrol 0.6365Banks RFPD 1.0831Cornelius RFPD 0.6164Forest Grove RFPD 1.2766Gaston Jt RFPD 1.0921Tualatin Valley Jt RFPD 1.5252Washington County 2 RFPD 1.1219Banks 13 School 5.0152Beaverton 48J School 4.6930Forest Grove 15 School 4.9142Gaston 511J School 5.0494Hillsboro 1J (Farmington Bond) 0.0000Hillsboro 1J (Hillsboro 7 Bond) 0.0000Hillsboro 1J (North Plains Bond) 0.0000Hillsboro 1J (Reedville Bond) 0.0000Hillsboro 1J School 4.9749Lake Oswego 7J School 4.4707Multnomah Portland 1J School 4.7743Newberg 29J School 4.6616Scappoose 1J School 4.9725Sherwood 88J School 4.8123Tigard Tualatin 23J (Sherwood Bond) 0.0000Tigard Tualatin 23J School 4.9892Vernonia 47J School 5.0121West Linn 3J School 4.8684Clackamas ESD 0.3687Multnomah ESD 0.4576

96

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

Northwest Regional ESD 0.1538Yamhill ESD 0.3615Portland Community College 0.2828Banks City 1.9700Beaverton City 4.6180Cornelius City 3.9836Durham City 0.4927Forest Grove City 3.9554Gaston City 6.6146Hillsboro City 3.6665King City 1.5261Lake Oswego City (Out School) 4.5884Lake Oswego City (Bonds) 0.0000North Plains City 2.1712Portland City 4.5770Rivergrove City 0.0000Sherwood City 3.2975Tigard City 2.5131Tualatin City 2.2665Wilsonville City 2.5206Lake Oswego UR Special Levy 0.0000Wilsonville UR Special Levy 0.0000Portland UR Special Levy 0.0000Tualatin UR Special Levy 0.0000Hillsboro UR Special Levy 0.0000

Wheeler CountyWheeler County 8.5266Wheeler Co 4-H Extension 0.5584NE Wheeler County Health 1.0084Condon 25J School 3.3143Dayville 16J School 2.2213Fossil 21J School 4.3963Mitchell 55 School 3.9020Wheeler (Spray) 1 School 4.3311Grant ESD 3.7557North Central ESD 2.0193Fossil City 4.8542Mitchell City 2.5433Spray City 6.0888

Washington County (continued) Yamhill CountyYamhill County 2.5775Chehalem Park & Rec 0.9076Otter Creek Hylands Road 0.4193Grande Ronde Sanitary 0.0000Yamhill SWCD 0.0354Yamhill Co Extension 0.0449Chemeketa Library 0.0818Amity Jt RFPD 0.8403Carlton RFPD 0.5336Dayton Jt RFPD 1.2302Dundee RFPD 0.5580Gaston Jt RFPD 1.0921McMinnville RFPD 0.9576Newberg RFPD 0.4329Sheridan Jt RFPD 1.1188Willamina Jt RFPD 0.8936Yamhill RFPD 0.9081Amity 4J School 4.7796Dayton 8 School 5.0892Gaston 511J School 5.0494Hillsboro 1J (Farmington Bond) 0.0000Hillsboro 1J School 4.9749McMinnville 40 School 4.1494Nestucca Valley 101J School 4.8580Newberg 29J School 4.6616Sheridan 48J School 4.7882Sherwood 88J School 4.8123Willamina 30J School 5.0022Yamhill-Carlton 1 School 4.7818Northwest Regional ESD 0.1538Yamhill ESD 0.3615Chemeketa Community College 0.6259Portland Community College 0.2828Amity City 3.6105Carlton City 5.0098Dayton City 1.7057Dundee City 2.3115Lafayette City 3.4857McMinnville City 5.0200Newberg City 4.3827Sheridan City 2.1307Willamina City 4.2039Yamhill City 3.7389

DISTRICT NAME PERMANENTRATE

AUTHORITY(Dollars per $1,000of Assessed Value)

97

Appendix E—Gap Bond SectionCertain districts exempted a portion of their tax base orother permanent continuing levy authority from the Op-erating Tax Rate Limit (the maximum rate of operatingtaxes that a district may impose) and statewide reductioncalculations of Measure 50 in 1997-98 because that por-tion was used to repay qualified taxing district obliga-tions. Qualified taxing district obligations are commonlycalled Gap Bonds. Districts with Gap Bonds have a Op-erating Tax Rate Limit that is lower than it should be be-cause the 1997-97 Gap Bond levy was not included in thelimit calculation. The Gap Bonds eventually will be paidoff. When this happens, the district’s Operating Tax RateLimit will be increased for the following fiscal year (sec-tion 11(5)(d), Article XI of the Oregon Constitution).

To qualify as a Gap Bond tax the 1997-98 levy was usedto repay:

1. Principal and interest for any bond issued beforeDecember 5, 1996, and secured by a pledge or ex-plicit commitment of ad valorem property taxes ora covenant to levy or collect ad valorem propertytaxes;

2. Principal and interest for any other formal, writtenborrowing of monies executed before December 5,1996, for which ad valorem property tax revenueshave been pledged or explicitly committed, or thatare secured by a covenant to levy or collect ad va-lorem property taxes;

3. Principal and interest for any bond issued to refundan obligation described in paragraph (a) or (b) ofthis subsection.

The term Gap Bond includes qualified obligations thatmay have a form other than a bond. Nonetheless, theterm Gap Bond refers to all qualified obligations. Eachyear after 1997-98 the district may levy whatever is nec-essary to meet its Gap Bond obligation. Districts can notestablish new Gap Bond authority. If a district did notinclude a Gap Bond levy in 1997-98, it may not levy forGap Bonds.

When the district has paid off all or a portion of the GapBonds that were included in the 1997-98 Gap Bond levy,

the district needs to send a letter to the county asses-sor of each county in which the district imposes taxesat least 30 days prior to the end of the fiscal year, witha copy directed to the Property Tax Division of the De-partment of Revenue. This starts the process of havingthe district’s Operating Rate Limitation increased.

The letter shall include the following information:

a. Name of the taxing district.b. Levy amount identified as Gap Bonds on the 1997-

98 M-50 Form.c. Amount of Gap Bond debt paid by that levy which

has been retired during the current tax year.

Upon receipt of its copy, the Department of Revenuewill calculate the increase in the Operating Tax RateLimit for the district. The department first will calcu-late the percentage the Measure 5 operating tax was re-duced in the Measure 50 calculations to arrive at theMeasure 50 tax without compression. This will result ina reduction percentage. This reduction percentage willbe multiplied by the amount of Gap Bond authoritybeing retired. This result will then be divided by the1997-98 value used to calculate the operating rate limi-tation of the taxing district. The resulting rate will thenbe added to the existing Operating Tax Rate Limit to ar-rive at the increased Operating Tax Rate Limit for thefollowing tax year.

The Department of Revenue then will send a letter tothe district and a copy of the letter to the countyassessor(s) including the following information:

a. The name of the district;b. The Operating Tax Rate Limit before recalculation;c. The new Operating Tax Rate Limit increase after re-

calculation;d. The tax year for which the new Operating Tax Rate

Limit increase will first apply.

The final Operating Tax Rate Limits after all Gap Bonddebt is repaid and the calculations, as done by theDepartment of Revenue, are shown in the table on thenext page.

98

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1,78

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44,

420,

848,

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0.34

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3,67

22,

379,

309

0.53

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13,6

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3.81

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3.95

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1,49

5,62

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131,

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9,36

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9171

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11,7

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4,93

412

6,64

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2.61

678

125,

297,

490

1.01

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,233

136,

881

1.09

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Des

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368,

220

5,77

2,31

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645,

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6354

360,

119

6,00

5,43

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24,8

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-9.0

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28,2

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1.18

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152,

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220,

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180,

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9,35

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30.

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124,

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304,

132

0.34

98

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871,

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922,

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0,63

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9696

26,8

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9,26

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83,9

954,

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900

4,13

1,67

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4.73

874

2,09

3,86

4,86

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9732

71,6

154,

203,

291

2.00

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1,98

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1,64

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3620

1,52

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0.69

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144,

992

113,

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6309

588

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1.28

9011

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124,

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1.41

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Low

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176,

416

156,

506

-11.

2861

370

,547

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2.21

8433

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190,

268

2.69

70

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Lake

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21,7

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38,9

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8,90

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5,15

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11,6

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83,6

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4416

584,

684

5,73

7,19

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4917

Polk

Polk

1J RFP

D93

,435

711,

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631,

215

-11.

2232

347

4,88

7,79

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3291

82,9

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116,

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2,89

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99

Appendix F—Community CollegeLocal Option Limits

1997-98 1997-98 Limit onMeasure 5 Measure 50 Local OptionAuthority Authority Levy

Clackamas Community College $8,759,125 $7,309,672 $1,449,453Clatsop Community College $2,627,280 $2,133,278 $494,002Southwestern Oregon Comm College $3,310,149 $2,892,975 $417,174Central Oregon Community College $5,941,089 $5,565,873 $375,216Umpqua Community College $1,944,620 $1,673,814 $270,806Rogue Community College $6,666,834 $5,722,572 $944,262Klamath Community College $1,156,945 $942,058 $214,887Lane Community College $10,110,196 $8,743,824 $1,366,372Oregon Coast Community College $714,129 $606,982 $107,147Linn-benton Community College $4,692,817 $4,215,383 $477,434Treasure Valley Comm College $1,318,172 $1,143,050 $175,122Chemeketa Community College $10,731,411 $9,109,754 $1,621,657Mt Hood Community College $6,820,105 $5,846,064 $974,041Portland Community College $17,616,507 $14,674,934 $2,941,573Tillamook Bay Community College $602,457 $529,600 $72,857Blue Mountain Community College $2,303,572 $2,079,155 $224,417Columbia Gorge Community College $313,535 $273,519 $40,016

$85,628,943 $73,462,507 $12,166,436

Source: Research Section, Oregon Department of Revenue 7-May-99

100

101

IndexAccounting, basis of ..................................................... 19

Budget message ........................................................... 13Adopted budget

considerations before adopting ................................. 49limitations on increases .............................................. 49required items .............................................................. 49

Appropriations .............................................................. 50limits and penalties ..................................................... 51resolution making ....................................................... 53

Assessor, countyresponsibilities ............................................................... 4

Audit requirements ........................................................ 3

Ballot measure language ....................... see “Elections”Basis of accounting, changes ...................................... 19Beginning cash estimates ............................................ 19Bequests ........................................................ see “Grants”Biennial budgets ................................................. 1, 10, 63Bond proceeds ............................................................... 20Bonded indebtedness ...................................... 20, 24, 42Borrowing

interfund loans....................................................... 20, 55short-term notes..................................................... 20, 55

Boundary changes .............................................. 7, 37, 41filing deadline ................................................................ 7

Budget ............................................................................. 19distribution ............................................................. 10, 53document ...................................................................... 19organizational unit ...................................................... 21process ............................................................................. 9program ........................................................................ 21reduction after adoption............................................. 57supplemental ............................................................... 60transfers after adoption .............................................. 57

Budget calendar ............................................................ 13Budget committee

appointed members .................................................... 29fiscal powers ................................................................ 31functions ....................................................................... 30

Budget detail sheets ..................................................... 23current budget data ..................................................... 14examples ................................................................. 25–27preceding years’ data .................................................. 13

Budget messagerequired information .................................................. 13

Budget officerresponsibilities ............................................................. 13who can be .................................................................... 13

Budgeted transfers ........................................................ 20

Capital outlay ................................................................ 22Capital project

definition ...................................................................... 42Capital projects fund ................................................... 15Category of limitation ...................................... 37, 52, 55Certifying taxes ............................................................. 55

categorizing taxes .................................................. 52, 55extension ................................................................. 45, 52notice of taxes ............................................................... 55

Clerk, countycopy of budget document .......................................... 53responsibilities ............................................................... 5

Constitutional limits .................................................... 37Contingency, general operating ................................. 22

Debt service fund ......................................................... 16Devices .......................................................... see “Grants”

Education category ....................................................... 37Elections

ballot language ............................................................ 45dates .............................................................................. 47emergency .................................................................... 47

Emergency moneys ................................................. 20, 59Enterprise fund ............................................................. 17Estimated taxes to be received

computing .............................................................. 37–39publishing ..................................................................... 38

Errors, publicationcorrections .................................................................... 35

Expenditures .................................................................. 21Extension to certify taxes ........... see “Certifying taxes”

Failure of late tax .......................................................... 52Financial summary ................................................. 33–34Fiscal year ............................................................. 1, 13, 50Funds

capital projects fund .................................................... 15debt service fund ......................................................... 16enterprise fund ............................................................ 17general fund ................................................................. 15internal service fund ................................................... 17local option taxes ......................................................... 17reserve fund ................................................................. 17special revenue fund ................................................... 15trust and agency fund ................................................. 17

“Gap” bonds ............................................................ 43, 91General fund .................................................................. 15

102

General government category .................................... 37

Gifts ............................................................... see “Grants”

Governing bodyadopting the budget .................................................... 49fiscal powers ................................................................ 49

Grants ........................................................................ 19, 61

Hearing notice, budget ................................................ 33

Insurance proceeds ....................................................... 20

Interfund loans ........................................................ 20, 55

Interfund transfersafter adoption of budget ............................................. 57budgeted ....................................................................... 20

Internal service fund .................................................... 17

Late tax election ........................... see “Certifying taxes”

Levyelections ........................................................................ 45necessary to balance budget ...................................... 30

Levying less than full authority ................................. 37

Local Budget Lawexemptions from ............................................................ 9process............................................................................. 9

Local option taxes ................................................... 42, 46

Loss due to limitation .................................................. 38

Natural disasterexpenditures ........................................................... 11, 61

Net working capital .............................. see “Resources”

Newspaper publishing ................................................ 33

Notice of budget committee meeting ....................... 33

Materials and services ................................................. 21

Organizational unit ...................................................... 21

Pass-through payments ............................................... 23

Permanent rate .................................................. 41, 75, 89

Personal services ........................................................... 21

Posting notice, financial summary ............................ 33

Previously levied taxes ................................................ 19

Program ........................................................................... 21

Proposed budget ........................................................... 13

Public meetings law ..................................................... 14

Publication requirementsbudget committee meeting ........................................ 33budget hearing ............................................................. 33corrections .................................................................... 35counting days ............................................................... 34forms ............................................................................. 34narrative ........................................................................ 35posting .......................................................................... 33

Reserve fund .................................................................. 17Resolutions

adopting .................................................................. 10, 49categorizing .................................................................. 52imposing tax ................................................................. 51making appropriations ............................................... 50transferring appropriations ....................................... 57

Resources ........................................................................ 19beginning cash estimate ............................................. 19deficit ............................................................................. 21net working capital ..................................................... 19

Special revenue fund ................................................... 15Supplemental budget

exceptions ..................................................................... 61process ........................................................................... 60qualifying situations or conditions ........................... 60

Tax anticipation notes ............................................ 20, 55Tax collector, county

responsibilities ............................................................... 4Tax

bonded debt levy ................................................... 42, 47limitations, constitutional and statutory ............ 52, 55one-year local option .................................................. 46serial local option ........................................................ 46

Tax on propertycertifying ....................................................................... 55

Tax supervising and conservation commission .......... 4Taxes estimated to be received

computing amount ................................................ 37–38publishing ..................................................................... 34

Transfers ................................. see “Interfund transfers”Treasurer, county

responsibilities ............................................................... 5Trust fund ....................................................................... 17

Unappropriated ending fund balance ...................... 22Urban renewal ............................................... 9, 43, 51, 55Useful life ......................................................................... 4