294 - oregonlegislature.gov · 294.005 definitions for ors 294.005 to 294.025 294.010 surrender of...

Chapter 2942007 EDITION

County and Municipal Financial Administration

GENERAL PROVISIONS294.004 Definitions

COUNTY AND MUNICIPAL FINANCIALADMINISTRATION

(Generally)294.005 Definitions for ORS 294.005 to 294.025294.010 Surrender of warrants upon payment294.015 Payment on lost, stolen or destroyed

warrants upon affidavit of owner, payeeor representative

294.025 Effect of wrongful payment; liability ofofficer

294.027 Provisions relating to warrants and pay-ment of claims

294.028 Payment of warrants by depository294.029 Provisions of ORS 294.027 and 294.028 not

mandatory294.030 Deductions for bonds from compensation

of municipal and other employees; pur-chasing bonds in advance

294.033 Investment of deferred compensationfunds

294.035 Investment of surplus funds of politicalsubdivisions; approved investments

294.040 Restriction on investments under ORS294.035

294.046 List of approved securities for investmentunder ORS 294.035; distribution

294.047 Loss of principal on liquidation of invest-ments

294.048 Borrowing money when premature with-drawal or liquidation of certain invest-ments would cause loss

294.050 County borrowing money from countygeneral road fund

294.052 Definitions; investment by municipalityof proceeds of bonds

294.053 Investment by county in master warrantsof county

294.055 Use by counties of moneys received fromfederal government under the MineralLeasing Act

294.060 Apportionment of moneys received bycounties from federal forest reserves toroad and school funds

294.065 Use by counties of moneys received fromfederal government under the federalFlood Control Act

294.070 Expenditure of Taylor Grazing Act funds;advisory board

294.080 Disposition of interest earned on fundsheld by county treasurer

294.085 Examining books and papers of countyofficers

294.090 County orders and vouchers to be num-bered to correspond to warrants drawn

294.095 Action or proceeding with respect to bud-get or levy; fiscal year with respect towhich taken

294.100 Public official expending money in excessof amount or for different purpose thanprovided by law unlawful; civil liability

294.120 Use of facsimile signatures294.125 Investment of funds authorized by order

of governing body; limitations294.135 Investment maturity dates294.145 Prohibited conduct for custodial officer294.155 Annual audit report; monthly report294.160 Opportunity for public comment on new

fee or fee increase

COUNTY ASSESSMENT FUNDING ASSISTANCE PROGRAM

294.175 Definitions; county expenditures for as-sessment; determination of adequacy;certification of adequacy; appeal of denialof certification; effect of certification

294.178 Assessment grant to county; determi-nation of grant amount

294.181 Alternative method for certification294.184 County Assessment Function Funding

Assistance Account; sources; purpose294.187 County Assessment and Taxation Fund;

sources; purpose

PUBLICATION OF FINANCIAL REPORTS294.250 Publication by county governing body of

schedule of expenditures and statementof proceedings; manner of publication;notice

LOCAL BUDGET LAW294.305 Sections constituting Local Budget Law294.311 Definitions for ORS 294.305 to 294.565294.316 Application294.321 Purposes294.323 Budget period294.326 Compliance with Local Budget Law re-

quired prior to expenditure or tax certi-fication; exceptions

294.331 Budget officer294.336 Budget committee294.341 Governing body of certain municipal cor-

porations to be budget committee; excep-tion

294.352 Estimates of expenditures required; formand contents

294.356 Preparation of estimates by school, edu-cation service and community collegedistricts and by municipal corporationsoperating public utility or hospital

294.361 Contents of estimate of budget resources294.366 Reserving receipts from revenue-

producing property or facility; deposit inspecial fund

294.371 Estimate of unappropriated ending fundbalance for each fund

Title 28 (2007 Edition)

PUBLIC FINANCIAL ADMINISTRATION

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

294.381 Determination of estimated tax revenues294.386 Financial summary294.391 Budget message294.396 Time of making budget message and doc-

ument294.401 Budget committee meeting; distribution

of budget message and document; copiesof document to be available

294.406 Budget committee hearings; approval ofbudget document

294.411 Submission of budget document to taxsupervising and conservation commissionin certain cases prior to publication andapproval by budget committee

294.413 Format for notices and summaries294.416 Publication of budget summary, financial

summary, statement of accounting basisand notices of meeting and availability ofbudget document

294.418 Alternative budget publication procedure294.421 Manner of publication; alternative re-

quirements in certain cases294.425 Sufficiency of publication of budget docu-

ments; notice to governing body and as-sessor of publication error

294.430 Hearing by governing body on budgetdocument as approved by budget commit-tee; alternative procedure in certain cases

294.435 Governing body to adopt budget, makeappropriations, declare and categorizeproperty tax amount or rate; greater tax,encumbrance or expenditure limited; ex-ception

294.437 Local option tax approved after adoptionof budget; supplemental budget

294.440 School or community college district ex-pending federal or state funds in emer-gency

294.443 Certain interest to be included in budget;method

294.445 Basis of accounting used by municipalcorporation; change of basis

294.447 Inclusions in accrued revenues of schooldistricts, education service districts, com-munity college districts and communitycollege service districts using accrual ba-sis of accounting; State School Fundgrant calculations

294.450 Transfers of appropriations within fundor from one fund to another; appropri-ation of pass-through revenues

294.455 Authorization to expend or borrow mon-eys after destruction of property or na-tural disaster; authorization by chiefexecutive officer to protect public healthor safety

294.460 Loans from one fund to another; com-mingling cash balances of funds

294.470 Internal service funds294.475 Elimination of unnecessary fund; disposi-

tion of balance294.480 Supplemental budget in certain cases; no

increase in property taxes permitted294.483 Supplemental budget not required in cer-

tain cases294.485 Tax certification contrary to law voidable

by Oregon Tax Court; appeal procedure

294.490 Department of Revenue not to interferewith fiscal policy of municipal corporation

294.495 Department of Revenue to construe LocalBudget Law; rules

294.500 Declaratory ruling by Department of Re-venue as to its rules under Local BudgetLaw

294.505 Division of Audits to issue notification ofbudgetary irregularities; Department ofRevenue to advise municipal corporationof correct procedures

294.510 Order for revision of budgetary proce-dures; enforcement

294.515 Appeal by municipal corporation fromDepartment of Revenue order

294.520 Priority of appeals under Local BudgetLaw

294.525 Reserve fund established without vote;review of need for reserve fund; unex-pended balances; application to systemdevelopment charges

294.555 Filing copy of budget and certain docu-ments with county assessor and Depart-ment of Revenue

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

TAX SUPERVISING ANDCONSERVATION COMMISSION

294.605 Definitions for ORS 294.605 to 294.705294.608 Populous counties; commission establish-

ment or financial summary publication294.610 Tax supervising and conservation com-

mission; members; appointment; quali-fications; term; removal; filling vacancies

294.615 Oath of commissioner294.620 Office of commission; employment and

compensation of assistants294.625 Jurisdiction of commission294.630 Tax supervising and conservation com-

mission account294.635 Submission of budget estimates by levying

boards294.640 Hearing on budget294.645 Consideration of budget by commission;

certifying objections or recommendationsto levying board; procedure where munic-ipality holds hearing in place of commis-sion

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

294.655 Hearing on special tax levies and bond is-sues proposed for elector approval

294.660 Compiling information as to indebtedness;including in annual report

294.665 Levying board to submit audit report orfinancial statements annually

294.670 Commission may inquire into manage-ment, books and systems; rules

294.675 Calling joint meetings of levying boards294.680 Certifying excessive or unauthorized ex-

penditures to district attorney; action bydistrict attorney

294.685 Annual report by commission294.690 Records and files of commission open to

public inspection


MUNICIPAL FINANCIAL ADMINISTRATION

294.695 Attorney General as legal advisor andcounsel to commission

294.700 Proceedings to collect penalties294.705 Tax supervising and conservation fund294.710 Procedures for establishing commission;

annual appropriations

LOCAL GOVERNMENT EMPLOYERBENEFIT TRUST FUND

294.725 Definitions for ORS 294.725 to 294.755294.730 Fund created; State Treasurer as custo-

dian; use of moneys; distribution of earn-ings

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

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

294.745 Analysis of fund receipts and expendi-tures; report to Legislative Assembly

294.750 Experience and liability of successor poli-tical subdivisions; unpaid assessment

294.755 Payment on quarterly basis; remedies forcollection

LOCAL GOVERNMENT INVESTMENT POOL

294.805 Definitions for ORS 294.805 to 294.895294.810 Local governments authorized to place

limited funds in pool294.815 Period of investments; withdrawal of

funds294.820 Establishment of investment pools by

intergovernmental agreement; conditions;powers

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

294.831 Investment objective; limit on maturitydates

294.835 Standard of care; investment in certainstocks prohibited

294.840 Investment policies; review; separate pol-icies for individual public bodies

294.845 Investment officer to invest, reinvest poolfunds

294.847 Prohibited conduct for investment officer294.850 Contracts with persons to perform invest-

ment functions; compensation; bond

294.855 Legal opinions; investment counselingservices; mortgage services

294.860 Custody of investment documents; col-lection of income; distribution to localgovernments; calculation and allocationof profit and loss; defaulted payments ofprincipal and interest, collection, compro-mise

294.865 Monthly deductions from income receivedfor payment of expenses

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

294.875 Monthly report of investments of poolfunds; distribution

294.880 Program examination and audit; report;distribution

294.882 Merger or subsequent separation of localgovernment investment pool and stateinvestment fund; preconditions

294.885 Oregon Short Term Fund Board; mem-bers; appointment; term; vacancies

294.890 Board members serve without compensa-tion; selection of chairperson

294.895 Board duties, generally

COUNCILS OF GOVERNMENTS294.900 “Council of governments” defined294.905 Budget committee; membership; term;

vacancies; officers; meetings to be public294.910 Estimates of expenditures; organization

and format; matters to be included294.915 Notice of budget committee meeting;

public availability of documents294.920 Hearing on budget document294.925 Supplemental budget; conditions; term;

publication294.930 Authority of Department of Revenue;

budget records maintained by council ofgovernments

MISCELLANEOUS294.950 County revenue sharing with cities294.960 Collection and disposition of amounts due

counties

PENALTIES294.990 Penalties


MUNICIPAL FINANCIAL ADMINISTRATION 294.027

GENERAL PROVISIONS294.004 Definitions. For the purposes of

this chapter, unless the context requiresotherwise:

(1) “Local government” means anycounty, municipality, political subdivision orschool district.

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

(3) “Deferred compensation plan” meansa plan, established by any employer that isa county, municipality, political subdivisionor school district, that has as its purposesthe deferral of compensation to employees ofsuch employer and the deferral of incometaxation on such deferred compensation.

(4) “Deferred employee compensation”means funds under an agreement providingfor payment at a future date by a municipalcorporation for services currently renderedby an eligible employee in fixed or variableamounts for life or for a guaranteed numberof years after retirement or termination ofemployment.

(5) “Nationally recognized statistical rat-ing organization” has the meaning given thatterm in Rule 15c3-1 under the Securities Ex-change Act of 1934, as amended.

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

COUNTY AND MUNICIPAL FINANCIALADMINISTRATION

(Generally)294.005 Definitions for ORS 294.005 to

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

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

(2) “Subdivision” means any county, mu-nicipal corporation, quasi-municipal corpo-ration, or civil or political subdivision in thisstate.

294.010 Surrender of warrants uponpayment. Subject to ORS 294.015, no war-rant issued by a subdivision shall be paidunless such warrant is surrendered and de-livered to the officer charged with the pay-ment thereof, contemporaneously withpayment or prior thereto.

294.015 Payment on lost, stolen or de-stroyed warrants upon affidavit of owner,payee or representative. A warrant may bepaid without surrender or delivery thereof if

the one claiming to be the lawful owner ofthe warrant:

(1) Satisfies the officer by whom paymentis to be made that the warrant has been lost,stolen or destroyed prior to the owner havingreceived value therefor or having negotiatedthe warrant; and

(2) Furnishes to the issuing officer awritten statement signed by such personspecifically alleging that the owner is thelawful owner, payee or legal representativeof the lawful owner or payee of the originalinstrument giving the date of issue, thenumber, amount, for what services or claimthe original instrument was issued and thatthe original instrument has been lost, de-stroyed or stolen, and has not been paid.However, if the lawful owner, payee or legalrepresentative is (a) a bank or national bank,(b) the federal government or (c) this stateor any board, department, commission orsubdivision of this state, or any officerthereof in the officer′s official capacity, acertificate may be furnished in lieu of an af-fidavit or affirmation. The issuing officermay also, in the officer′s discretion, requirethe bank or national bank to furnish a satis-factory indemnity agreement executed by thebank or national bank. [Amended by 1979 c.763§6]

294.020 [Repealed by 1979 c.763 §7]

294.025 Effect of wrongful payment;liability of officer. When any warrant ispaid, other than as authorized by ORS294.005 to 294.025, such wrongful paymentdoes not relieve the political body issuing thewarrant from liability to the true and lawfulowner thereof. However, the officer or per-son making such wrongful payment and thesureties on the official bond of the officer orperson, if any, shall be responsible to thepolitical body represented by the officer orperson in making such payment, for the fullamount of the loss occasioned thereby.[Amended by 2005 c.22 §222]

294.027 Provisions relating to war-rants and payment of claims. (1) In addi-tion to any other provisions of law for theissuance and payment of warrants of anymunicipal or quasi-municipal corporation orcivil subdivision of this state other thanschool districts, the governing body thereofmay by resolution authorize such practiceswith respect to the form, issuance, delivery,indorsement and payment of warrants as itshall deem convenient, efficient and in thepublic interest, conforming substantially tothose specified in subsection (1) or (2) of thissection or in ORS 294.028.

(2) Such governing body may authorizethe use of check-warrant forms, to be drawnby its appropriate warrant issuing officer orofficers upon the custodian of its funds, so


294.028 PUBLIC FINANCIAL ADMINISTRATION

prepared that such custodian may, by sub-scribing a direction to the depository of suchfunds to pay the same to the order of thepayee, convert the instrument to a check or,by subscribing an indorsement that suchwarrant is not paid for want of funds, con-vert the same to an interest-bearing warrantand such governing body may direct thatsuch check-warrants shall not be deliveredto the payees therein named until such di-rection or indorsement shall have been sub-scribed by the custodian of its funds.

(3) Such governing body may provide thatwhen funds are available for the payment ofapproved claims, the approval of claims forpayment shall, without the issuance of anywarrant, be authority to the custodian of itsfunds to pay such claims by check. [1953 c.664§1]

294.028 Payment of warrants by de-pository. When authorized by the governingbody, any custodian of funds of any munici-pal or quasi-municipal corporation or civilsubdivision of this state other than a schooldistrict may direct the depository of suchfunds to pay any warrant drawn upon suchcustodian upon presentment of such warrantto such depository, to the same extent andwith the same effect as though such warrantwere a check drawn upon such depository bysuch custodian. Such direction shall be inwriting and shall identify by name and sig-nature the warrant issuing officer or officersand such depository may rely upon such di-rection and identification in the payment ofsuch warrants. [1953 c.664 §2]

294.029 Provisions of ORS 294.027 and294.028 not mandatory. Nothing containedin ORS 294.027 or 294.028 shall be deemed torequire any municipal or quasi-municipalcorporation or civil subdivision of this stateor any custodian of public funds to exerciseany of the powers conferred by such sections.[1953 c.664 §3]

294.030 Deductions for bonds fromcompensation of municipal and otheremployees; purchasing bonds in advance.(1) The governing body of a municipal corpo-ration, quasi-municipal corporation or civilsubdivision of the state may, with the ap-proval of the relevant employees of the mu-nicipal corporation, quasi-municipalcorporation or civil subdivision, make de-ductions from their salaries and wages forthe purpose of purchasing for them UnitedStates War Savings Bonds or other federalobligations.

(2) The governing body shall take properprecautions for the depositing, securing anddisbursing of the sums so deducted and forthe delivering of all bonds or other obli-gations purchased.

(3) Balances to the credit of the accountsin which the sums so deducted are depositedmay be used for the purchase in advance,from the federal government or from anyfederal reserve bank or other authorized fed-eral agency, of war savings bonds or otherobligations of the federal government, eitherin blank or in inscribed form, in convenientdenominations to meet the requirements ofthe purchasers thereof.

294.033 Investment of deferred com-pensation funds. Funds set aside by any lo-cal government pursuant to a deferredcompensation plan may be invested in anyinvestment enumerated in ORS 294.035 andare not subject to the collateral requirementsof ORS chapter 295. [1977 c.470 §3; 1997 c.179 §26;2005 c.91 §1]

294.035 Investment of surplus fundsof political subdivisions; approved invest-ments. (1) Subject to ORS 294.040 and294.135 to 294.155, the custodial officer mayinvest any sinking fund, bond fund or surplusfunds in the custody of the custodial officerin the bank accounts, classes of securities atcurrent market prices, insurance contractsand other investments listed in this section,but only after obtaining from the governingbody of the county, municipality, politicalsubdivision or school district a written orderthat has been entered in the minutes orjournal of the governing body.

(2) This section does not:(a) Limit the authority of the custodial

officer to invest surplus funds in other in-vestments when the investment is specif-ically authorized by another statute.

(b) Apply to a sinking fund or a bondfund established in connection with conduitrevenue bonds issued by a county, munic-ipality, political subdivision or school districtfor private business entities or nonprofitcorporations.

(3) Investments authorized by this sectionare:

(a) Lawfully issued general obligations ofthe United States, the agencies and instru-mentalities of the United States or enter-prises sponsored by the United StatesGovernment.

(b) Lawfully issued debt obligations ofthe agencies and instrumentalities of theState of Oregon and its political subdivisionsthat have a long-term rating of A or anequivalent rating or better or are rated onthe settlement date in the highest categoryfor short-term municipal debt by a nationallyrecognized statistical rating organization.

(c) Lawfully issued debt obligations of theStates of California, Idaho and Washingtonand political subdivisions of those states ifthe obligations have a long-term rating of



AA or an equivalent rating or better or arerated on the settlement date in the highestcategory for short-term municipal debt by anationally recognized statistical rating or-ganization.

(d) Time deposit open accounts, certif-icates of deposit and savings accounts in in-sured institutions as defined in ORS 706.008,in credit unions as defined in ORS 723.006or in federal credit unions, if the institutionor credit union maintains a head office or abranch in this state.

(e) Share accounts and savings accountsin credit unions in the name of, or for thebenefit of, a member of the credit union pur-suant to a plan of deferred compensation.

(f) Fixed or variable life insurance or an-nuity contracts as defined by ORS 731.170and guaranteed investment contracts issuedby life insurance companies authorized to dobusiness in this state.

(g) Trusts in which deferred compensa-tion funds from other public employers arepooled, if:

(A) The purpose is to establish a deferredcompensation plan;

(B) The trust is a public instrumentalityof such public employers and described insection (2)(b) of the Investment Company Actof 1940, 15 U.S.C. 80a-2(b), as amended, ineffect on September 20, 1985, or the trust isa common trust fund described in ORS709.170;

(C) Under the terms of the plan the netincome from or gain or loss due to fluctu-ation in value of the underlying assets of thetrust, or other change in such assets, is re-flected in an equal increase or decrease inthe amount distributable to the employee orthe beneficiary thereof and, therefore, doesnot ultimately result in a net increase or de-crease in the worth of the public employeror the state; and

(D) The fidelity of the trustees and otherswith access to such assets, other than a trustcompany, as defined in ORS 706.008, is in-sured by a surety bond that is satisfactory tothe public employer, issued by a companyauthorized to do a surety business in thisstate and in an amount that is not less than10 percent of the value of such assets.

(h)(A) Banker′s acceptances, if the bank-er′s acceptances are:

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

(ii) Eligible for discount by the FederalReserve System; and

(iii) Issued by a qualified financial insti-tution whose short-term letter of credit rat-ing is rated in the highest category by one

or more nationally recognized statistical rat-ing organizations.

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

(i) A financial institution that is locatedand licensed to do banking business in theState of Oregon; or

(ii) A financial institution that is whollyowned by a financial holding company or abank holding company that owns a financialinstitution that is located and licensed to dobanking business in the State of Oregon.

(C) A custodial officer shall not permitmore than 25 percent of the moneys of a lo-cal government that are available for invest-ment, as determined on the settlement date,to be invested in banker′s acceptances of anyqualified financial institution.

(i)(A) Corporate indebtedness subject toa valid registration statement on file withthe Securities and Exchange Commission orissued under the authority of section 3(a)(2)or 3(a)(3) of the Securities Act of 1933, asamended. Corporate indebtedness describedin this paragraph does not include banker′sacceptances. The corporate indebtednessmust be issued by a commercial, industrialor utility business enterprise, or by or onbehalf of a financial institution, including aholding company owning a majority interestin a qualified financial institution.

(B) Corporate indebtedness must be ratedon the settlement date P-1 or Aa or betterby Moody′s Investors Service or A-1 or AAor better by Standard & Poor′s Corporationor equivalent rating by any nationally recog-nized statistical rating organization.

(C) Notwithstanding subparagraph (B) ofthis paragraph, the corporate indebtednessmust be rated on the settlement date P-2 orA or better by Moody′s Investors Service orA-2 or A or better by Standard & Poor′sCorporation or equivalent rating by any na-tionally recognized statistical rating organ-ization when the corporate indebtedness is:

(i) Issued by a business enterprise thathas its headquarters in Oregon, employsmore than 50 percent of its permanent work-force in Oregon or has more than 50 percentof its tangible assets in Oregon; or

(ii) Issued by a holding company owningnot less than a majority interest in a quali-fied financial institution, as defined in para-graph (h) of this subsection, located andlicensed to do banking business in Oregon orby a holding company owning not less thana majority interest in a business enterprisedescribed in sub-subparagraph (i) of this sub-paragraph.

(D) A custodial officer may not permitmore than 35 percent of the moneys of a lo-



cal government that are available for invest-ment, as determined on the settlement date,to be invested in corporate indebtedness, andmay not permit more than five percent of themoneys of a local government that are avail-able for investment to be invested in corpo-rate indebtedness of any single corporateentity and its affiliates or subsidiaries.

(j) Securities of any open-end or closed-end management investment company or in-vestment trust, if the securities are of thetypes specified in paragraphs (a) to (c), (h)and (i) of this subsection and if the invest-ment does not cause the county, municipal-ity, political subdivision or school district tobecome a stockholder in a joint company,corporation or association. A trust companyor trust department of a national bank whileacting as indenture trustee may invest fundsheld by it as indenture trustee in any open-end or closed-end management investmentcompany or investment trust for which thetrust company or trust department of a na-tional bank or an affiliate of the trust com-pany or trust department of a national bankacts as investment adviser or custodian orprovides other services. However, the securi-ties of the investment company or invest-ment trust in which the funds are investedmust be of the types specified in paragraphs(a) to (c), (h) and (i) of this subsection andthe investment must not cause the county,municipality, political subdivision or schooldistrict whose funds are invested to becomea stockholder in a joint company, corpo-ration or association. For purposes of thisparagraph, companies are affiliated if theyare members of the same affiliated group un-der section 1504 of the Internal RevenueCode of 1986 (26 U.S.C. 1504).

(k) Repurchase agreements whereby thecustodial officer purchases securities from afinancial institution or securities dealer sub-ject to an agreement by the seller to repur-chase the securities. The repurchaseagreement must be in writing and executedin advance of the initial purchase of the se-curities that are the subject of the repur-chase agreement. Only securities describedin paragraph (a) of this subsection may beused in conjunction with a repurchaseagreement and such securities shall have amaturity of not longer than three years. Theprice paid by the custodial officer for suchsecurities may not exceed amounts or per-centages prescribed by written policy of theOregon Investment Council or the OregonShort Term Fund Board created by ORS294.885.

(L) Shares of stock of any company, as-sociation or corporation, including but notlimited to shares of a mutual fund, but onlyif the moneys being invested are funds set

aside pursuant to a local government de-ferred compensation plan and are held intrust for the exclusive benefit of participantsand their beneficiaries. [Amended by 1957 c.53§1; 1957 c.689 §1; 1965 c.404 §1; 1973 c.157 §1; 1973 c.288§1; 1974 c.36 §9; 1975 c.359 §3; 1977 c.300 §1; 1981 c.804§84; 1981 c.880 §13; 1983 c.456 §2; 1985 c.256 §2; 1985 c.440§1; 1985 c.690 §2; 1987 c.493 §1; 1991 c.459 §379; 1993 c.59§1; 1993 c.452 §1; 1993 c.721 §1; 1995 c.79 §102; 1995 c.245§2; 1997 c.249 §91; 1997 c.631 §446; 1999 c.601 §1; 2001c.377 §43; 2003 c.405 §1; 2005 c.443 §§13,13a]

294.040 Restriction on investmentsunder ORS 294.035. The bonds listed in ORS294.035 (3)(a) to (c) may be purchased only ifthere has been no default in payment of ei-ther the principal of or the interest on theobligations of the issuing county, port, schooldistrict or city, for a period of five years nextpreceding the date of the investment.[Amended by 1995 c.245 §3; 2005 c.443 §21]

294.045 [Amended by 1959 c.224 §1; 1973 c.157 §2;repealed by 1975 c.359 §7]

294.046 List of approved securities forinvestment under ORS 294.035; distrib-ution. The State Treasurer shall prepare andkeep current a list of agencies and instru-mentalities of the United States with avail-able obligations that any county,municipality, political subdivision or schooldistrict may invest in under ORS 294.035(3)(a) and 294.040. The list shall be distrib-uted, upon request, to any county, munic-ipality, political subdivision or schooldistrict. [1973 c.157 §3; 1975 c.359 §4; 1995 c.245 §4;2005 c.443 §22]

294.047 Loss of principal on liquidationof investments. Whenever the custodial of-ficer is forced to liquidate investments madepursuant to ORS 294.035 and 294.040 to meetcurrent cash demands and such liquidationresults in a loss of invested principal becausethe securities were liquidated prior to matu-rity under market conditions unfavorable tosuch liquidation, the loss shall be chargedagainst current or future investment earn-ings and the custodial officer shall not bepersonally liable to make good such loss.[1959 c.612 §1; 1963 c.465 §1; 1975 c.359 §5]

294.048 Borrowing money when pre-mature withdrawal or liquidation of cer-tain investments would cause loss. Whenfunds invested under ORS 294.035 (3)(d) arerequired to meet current cash demands andwhen withdrawal or liquidation of such in-vestments at the time would cause a loss be-cause the investment would be withdrawn orliquidated prior to maturity, the custodialofficer may, after receiving the approval ofthe governing body, borrow funds on short-term promissory notes that shall be securedby pledging or assigning the investmentsheld under ORS 294.035 (3)(d). The notesshall mature in not more than six monthsafter date of issue. If a lender demandsphysical possession of the certificates of de-



posit or other evidence of an investmentpledged or assigned under this section, thecustodial officer shall deliver the certificateor other evidence to the lender. [1967 c.411 §1;1975 c.359 §6; 1995 c.245 §5; 2005 c.443 §23]

294.050 County borrowing money fromcounty general road fund. The countycourt or board of county commissioners mayborrow money from the general road fund ofthe county to supplement depleted electionaccounts within the general fund of thecounty if there is no money within theemergency fund of the county to supplementthe depleted accounts within the generalfund. The amount so borrowed shall be re-turned to the general road fund during thefollowing fiscal year from the first fundsavailable in the general fund, or from theemergency fund. [Amended by 1959 c.664 §29; 1969c.616 §1]

294.052 Definitions; investment bymunicipality of proceeds of bonds. (1) Asused in this section:

(a) “Bond” has the meaning given thatterm in ORS 287A.001.

(b) “Municipality” means a unit of localgovernment within Oregon including, but notlimited to, cities, counties, school districts,special districts, public corporations andintergovernmental corporations organizedunder the authority of ORS 190.010.

(2) Notwithstanding ORS 294.135 or294.145 or any other law or charter pro-vision, a municipality may invest proceeds ofbonds and amounts held in a bond paymentreserve or proceeds fund or account in floatagreements, debt service deposit agreements,forward investment agreements, guaranteedinvestment contracts or other investmentagreements if the agreements or contracts:

(a) Produce a guaranteed rate of return;(b) Are fully collateralized by direct obli-

gations of, or obligations guaranteed by, theUnited States; and

(c) Require that the collateral be held bythe municipality, an agent of the municipal-ity or a third-party safekeeping agent. [1999c.559 §21; 2001 c.537 §7; 2007 c.783 §117]

294.053 Investment by county in mas-ter warrants of county. A county treasurermay invest any sinking fund, bond fund orsurplus of funds in the custody of the countytreasurer in master warrants of that countyissued under ORS 287A.482 to 287A.488. [1959c.208 §1]

294.055 Use by counties of moneys re-ceived from federal government underthe Mineral Leasing Act. All funds re-ceived from the United States Governmentunder the Mineral Leasing Act and Actsamendatory thereof and distributed to coun-ties pursuant to ORS 293.565 shall be used

for the support of public schools or for theconstruction and maintenance of public roadsin such counties.

294.060 Apportionment of moneys re-ceived by counties from federal forest re-serves to road and school funds. (1) Themoneys received by each county under ORS293.560 shall be divided 75 percent to theroad fund and 25 percent to the school fundof the county and, subject to subsection (2)of this section, the moneys shall be expendedas other moneys in those funds are expended.

(2) The moneys apportioned to the countyroad fund may be applied in payment of anyoutstanding road bonds or may be placed inany county road bond sinking fund for thepurpose of being so applied.

(3) Notwithstanding the division of re-ceipts specified in subsection (1) of this sec-tion, in any county east of the summit of theCascade Mountains with a population of lessthan 9,000 and more than 6,500, according tothe 1990 federal decennial census, moneysfrom the road fund in excess of $2 millionmay be transferred to the school fund whenthe amount of money credited to the roadfund under subsection (1) of this section ex-ceeds the amount needed for county roads,as determined by the board of county com-missioners. Any amount received by a schooldistrict from the school fund of the countythat is in excess of the 25 percent requiredunder subsection (1) of this section may notbe considered as a receipt that would reducethe district′s apportionments from the StateSchool Fund.

(4) Notwithstanding the division of re-ceipts specified in subsection (1) of this sec-tion, in any county east of the summit of theCascade Mountains with a population of lessthan 58,000 and more than 55,000, accordingto the 1990 federal decennial census, if themoneys credited to the road fund under sub-section (1) of this section exceed the amountneeded for county roads, as determined bythe county governing body, the portion ofsuch moneys in excess of an amount speci-fied by the county governing body may betransferred to the school fund of the countyor may be transferred directly to the schooldistricts of the county in accordance withprocedures established by the county govern-ing body. The county governing body maydistribute moneys under this subsectionamong the several school districts withoutregard to the percentage of the resident av-erage daily membership in each school dis-trict. Moneys transferred under thissubsection may be transferred upon the con-dition that any school district receiving ashare of such moneys must use the moneysonly for a purpose described in ORS 328.205(1)(a) or (c). Any amount received by a school



district from the county under this subsec-tion that is in excess of the 25 percent re-quired under subsection (1) of this sectionmay not be considered as a receipt thatwould reduce the district′s apportionmentsfrom the State School Fund.

(5) Notwithstanding the division of re-ceipts specified in subsection (1) of this sec-tion, in any county east of the summit of theCascade Mountains with a population of lessthan 6,500, according to the 1990 federaldecennial census, moneys received by thecounty under ORS 293.560 may be dividedbetween the road fund and the school fundof the county as specified under an agree-ment between the county governing body andthe education service district board of thecounty that provides for a different appor-tionment of those moneys. Any amount re-ceived by a school district from the schoolfund of the county that is in excess of the 25percent required under subsection (1) of thissection may not be considered as a receiptthat would reduce the district′s apportion-ments from the State School Fund.

(6) Notwithstanding the division of re-ceipts specified in subsection (1) of this sec-tion, in any county west of the summit of theCascade Mountains with a population of lessthan 19,500 and more than 6,500, accordingto the 1990 federal decennial census, moneysfrom the road fund in excess of $1 millionmay be transferred to the school fund whenthe amount of money credited to the roadfund under subsection (1) of this section ex-ceeds the amount needed for county roads,as determined by the board of county com-missioners. Any amount received by a schooldistrict from the school fund of the countythat is in excess of the 25 percent requiredunder subsection (1) of this section may notbe considered as a receipt that would reducethe district′s apportionments from the StateSchool Fund.

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

Note: Section 4, chapter 894, Oregon Laws 2007,provides:

Sec. 4. (1) Notwithstanding ORS 294.060 and368.705, moneys described in ORS 294.060 (1) that arereceived by Douglas County and deposited into its roadfund may be expended for the patrolling of DouglasCounty roads by Douglas County law enforcement offi-cials.

(2) Notwithstanding ORS 294.060 and 368.705, mon-eys described in ORS 294.060 (1) that are received byLane County and deposited into its road fund may beexpended for the patrolling of Lane County roads byLane County law enforcement officials.

(3) This section is repealed on January 2, 2014.

(4) This section applies to moneys described insubsections (1) and (2) of this section that are receivedbefore, on or after the effective date of this 2007 Act[September 27, 2007]. [2007 c.894 §4]

294.065 Use by counties of moneys re-ceived from federal government underthe federal Flood Control Act. All moneysreceived from the United States Governmentunder the federal Flood Control Act, andActs amendatory thereof and supplementalthereto, and distributed to counties pursuantto ORS 293.570, shall be used for the benefitof the public schools and public roads of thecounties receiving the funds.

294.070 Expenditure of Taylor GrazingAct funds; advisory board. (1) Except formoneys required to be expended through thecounty general fund as required by subsec-tion (5) of this section, all moneys paid to acounty under ORS 293.575 shall be depositedwith the county treasurer and credited to aspecial fund designated the Range Improve-ment Fund of Grazing District No. .The county treasurer as ex officio districttreasurer shall disburse the moneys in theRange Improvement Fund only upon thewritten order of the grazing advisory board.

(2) Except as provided in subsection (4)of this section, money from grazing fees ofgrazing districts shall be expended withinsuch district as the grazing advisory boardmay direct and shall be expended only forrange improvements, such as fences, reser-voirs, wells, water development, maintenanceand other range improvements approved bythe grazing advisory board.

(3) Pending approval by the grazing advi-sory board of the expenditure of such money,all or any part of it may be invested inUnited States Government securities. In suchcase the securities shall be held by thecounty treasurer in lieu of such money soinvested and subject to liquidation and ex-penditure when recommended by the grazingadvisory board.

(4) In counties receiving funds fromgrazing districts containing Indian landsceded to the United States for dispositionunder public land laws, funds therefrom shallbe expended only for the benefit of publicschools and public roads of such county.

(5) In counties in which there are leasedlands but no grazing district, such fundsshall be expended by the county courtthrough the county general fund.

(6) As used in this section, “grazing ad-visory board” means a board appointed bythe governing body of any county receivingfunds under ORS 293.575 and authorized toexpend those funds as provided in this sec-tion. [Formerly 606.230; 1969 c.255 §1; 1977 c.115 §1;1981 c.42 §1; 1991 c.67 §73]



294.080 Disposition of interest earnedon funds held by county treasurer. (1)Except as provided in subsections (2) and (3)of this section, the county treasurer shallcredit to the general fund of the county allinterest received from any investment madefrom the general cash balance of any fundsin the hands of the county treasurer. If theentire investment is made from a specificfund, however, the treasurer shall credit theinterest to the fund from which the invest-ment was made.

(2) The county fiscal officer of a commu-nity college district, as defined in ORS341.005, shall credit to the general fund ofthe district all interest received from any in-vestment made by funds in the hands of thecounty fiscal officer. If the entire investmentis made from a specific fund, however, thecounty fiscal officer shall credit the interestto the fund from which the investment wasmade.

(3) Interest earned by investment of anymoneys received by the county treasurerfrom any source, which moneys have beendesignated for a particular municipal corpo-ration as defined in ORS 294.311, shall becredited to the account of the particular mu-nicipal corporation and not to any countyfund. [1963 c.316 §1; 1971 c.513 §54; 1979 c.762 §8; 1997c.308 §33]

294.085 Examining books and papersof county officers. (1) The county court orboard of county commissioners, while sittingfor county business at the regular terms inJanuary and July of each year, shall care-fully examine all books and papers relatingto the financial affairs of the county officesof county clerk, clerk of the county court,treasurer and sheriff of the county.

(2) The county clerk and clerk of thecounty court shall exhibit the numbered or-ders and vouchers referred to in ORS294.090, together with the stubs of the war-rants, and all other books and papers relat-ing to the financial affairs of the county, forthe inspection of the county court or boardof county commissioners at the time providedfor in subsection (1) of this section. [Amendedby 1985 c.565 §49]

294.090 County orders and vouchers tobe numbered to correspond to warrantsdrawn. The county clerk and clerk of thecounty court shall number all orders andvouchers with numbers to correspond withwarrants drawn.

294.095 Action or proceeding with re-spect to budget or levy; fiscal year withrespect to which taken. Wherever it isprovided by law that any action or proceed-ing of any county, city, school district orother municipal corporation or body politicshall be taken with respect to a budget or

tax levy for the calendar year, or for a fiscalyear closing on any day other than June 30,each such action or proceeding shall betaken with respect to the fiscal year com-mencing on July 1 and closing on June 30.

294.100 Public official expendingmoney in excess of amount or for differ-ent purpose than provided by law unlaw-ful; civil liability. (1) It is unlawful for anypublic official to expend any moneys in ex-cess of the amounts provided by law, or forany other or different purpose than providedby law.

(2) Any public official who expends anypublic moneys in excess of the amounts orfor any other or different purpose than au-thorized by law shall be civilly liable for thereturn of the money by suit of the districtattorney of the district in which the offenseis committed, or at the suit of any taxpayerof such district, if the expenditure consti-tutes malfeasance in office or willful orwanton neglect of duty.

(3) On the demand in writing of 10 tax-payers of any municipal corporation with apopulation exceeding 100,000 inhabitants,filed with the tax supervising and conserva-tion commission in the county in which themunicipal corporation is situated, which de-mand sets forth that a public official has un-lawfully expended public moneys in excessof the amount or for any other or differentpurpose than provided by law and that theexpenditure constitutes malfeasance in officeor willful or wanton neglect of duty, the taxsupervising and conservation commissionshall make an investigation of the facts as tothe expenditure. If the tax supervising andconservation commission finds that publicmoneys have been unlawfully expended andthat the expenditure constitutes malfeasancein office or willful or wanton neglect of duty,the commission shall proceed at law in thecourts against the public official who hasunlawfully expended the moneys for the re-turn of the moneys unlawfully expended tothe treasury of the municipal corporation. Aright of action hereby is granted to the taxsupervising and conservation commission forthe purposes of this section.

(4) This section does not apply to the ex-penditure of revenues that are allowed to beaccrued from a fiscal year to the prior fiscalyear under ORS 294.447. [Amended by 2001 c.399§1; 2002 s.s.4 c.1 §§9,10]

294.105 [Amended by 1963 c.9 §15; 1973 c.315 §1; re-pealed by 1983 c.537 §7]

294.110 [Repealed by 1953 c.306 §18]294.115 [1953 c.655 §1; repealed by 1963 c.576 §44]

294.120 Use of facsimile signatures. (1)When authorized to use facsimile signaturesby the governing body of any county, city,district organized for public purposes or any



other public corporation or political subdivi-sion of the state, any person authorized tosign any check, warrant or other instrumenton behalf of the county, city, district, publiccorporation or political subdivision may, inthe discretion of the person, sign the check,warrant or other instrument by facsimilesignature affixed by rubber stamp or by anymechanical equipment or device.

(2) Where the use of facsimile signaturesis authorized under this section, the holderor drawee of any check, warrant or otherinstrument bearing or purporting to bear afacsimile signature shall be under no duty todetermine the authority of the person whoaffixed the facsimile signature to use facsim-ile signatures. [1955 c.261 §1]

294.125 Investment of funds author-ized by order of governing body; limita-tions. (1) Subject to ORS 294.040 and 294.135to 294.155, the custodial officer of anycounty, municipality, school district or otherpolitical subdivision of this state may, afterhaving obtained a written order from thegoverning body of the county, municipality,school district or other political subdivision,which order shall be spread upon the min-utes or journal of the governing body, investany sinking fund, bond fund or surplus fundsbelonging to that county, municipality,school district or other political subdivisionin the bank accounts, classes of securities atcurrent market prices, insurance contractsand other investments described in ORS294.035. However, notwithstanding any pro-vision of ORS 190.003 to 190.250, except asprovided in ORS 294.035:

(a) No custodial officer of any politicalsubdivision of this state may accept for in-vestment or invest the funds of any otherpolitical subdivision of this state; and

(b) No such political subdivision maytender funds for investment to the custodialofficer of any other such political subdivi-sion.

(2) Subject to ORS 294.040, 294.135 to294.155 and subsection (1) of this section, thecustodial officer of a port organized underORS chapter 777 or 778 may invest anysinking fund, bond fund or surplus funds be-longing to the port in interest-bearing re-venue bonds issued by an export tradingcorporation formed by the port under ORS777.755 to 777.800. A custodial officer of aport shall not invest in the aggregate morethan $3 million in revenue bonds issued byan export trading corporation. [1981 c.880 §5;1983 c.200 §17; 1995 c.245 §6]

294.135 Investment maturity dates. (1)An investment made by a custodial officerunder ORS 294.035 (3)(a) to (f) and (h) to (j)or 294.125 may not exceed a maturity of 18

months or the date of anticipated use of thefunds by the county, municipality, schooldistrict or other political subdivision towhich the funds belong, whichever period isshorter. However:

(a) The custodial officer may make in-vestments having a maturity longer than 18months when the governing body of thecounty, municipality, school district or otherpolitical subdivision to which the funds be-long has adopted a written investment policythat, prior to adoption, was submitted to theOregon Short Term Fund Board for reviewand comment to the governing body, that in-cludes guidelines concerning maximum in-vestment maturity dates and that provides byits terms for readoption not less than annu-ally; or

(b) When the funds in question are beingaccumulated for an anticipated use that willoccur more than 18 months after the fundsare invested, then, upon the approval of thegoverning body of the county, municipality,school district or other political subdivision,the maturity of the investment or invest-ments made with the funds may occur whenthe funds are expected to be used.

(2) The maximum term of any repurchaseagreement transaction may not exceed 90days. [1981 c.880 §§6, 8; 1987 c.389 §1; 1989 c.303 §1; 1995c.245 §7; 2003 c.41 §1; 2005 c.443 §24]

294.145 Prohibited conduct for custo-dial officer. In making investments pursuantto ORS 294.035, the custodial officer shallnot:

(1) Make a commitment to invest fundsor sell securities more than 14 business daysprior to the anticipated date of settlement ofthe purchase or sale transaction;

(2) Enter into any agreement to investfunds or sell securities for future delivery fora fee other than interest;

(3) Lend securities to any person or in-stitution, except on a fully collateralized ba-sis, and except when such lending isspecifically permitted under an investmentpolicy adopted pursuant to ORS 294.135(1)(a);

(4) Pay for any securities purchased bythe custodial officer until the officer has re-ceived sufficient evidence of title thereof.Evidence of title shall be consistent withmodern investment, banking and commercialpractices and may include physical pos-session, book entry and automated recorda-tion of such title. However, the custodialofficer may instruct one or more custodianbanks, as defined in ORS 295.001, to acceptor release securities as that custodial officerconsiders advisable to be held in safekeepingfor collection of principal and interest orother income; or



(5) Deliver securities to the purchaserthereof upon sale prior to receiving paymentin full therefor. However, the custodial offi-cer may deliver the securities to any custo-dian bank, defined in ORS 295.001 uponinstructions to hold the same pending receiptby the institution of full payment therefor.[1981 c.880 §7; 1991 c.88 §5; 1995 c.245 §8]

294.155 Annual audit report; monthlyreport. (1) The custodial officer for a localgovernment that holds and invests funds onbehalf of another government unit shall atleast once a year submit an audited report tothat government unit for which funds areinvested. An audit report shall be submittedto the local governmental unit or unitswithin 30 days after receipt of the audit re-port by the custodial officer′s governingbody. This subsection shall not apply to mu-nicipal corporations or political subdivisionsexempt from municipal audits in ORS297.435.

(2) The custodial officer shall prepare areport not less than monthly to each county,municipality, school district and other poli-tical subdivision the segregated funds ofwhich the custodial officer is then investing,as to changes made in the investments of thefunds of that body during the precedingmonth. If requested by that body, the custo-dial officer shall furnish to it details on theinvestment transactions for its fund. Thecustodial officer shall also provide copies ofany investment policy which has beenadopted to the custodial officer′s governingbody upon request. [1981 c.880 §9; 1995 c.245 §9]

294.160 Opportunity for public com-ment on new fee or fee increase. (1) Thegoverning body of a city, county or otherunit of local government shall provide anopportunity for interested persons to com-ment on the enactment of any ordinance orresolution prescribing a new fee or a fee in-crease or an increase in the rate or othermanner in which the amount of a fee is de-termined or calculated.

(2) Where a local government exercisesauthority to assume the responsibility for aprogram delivered by the state, the localgovernment shall provide an opportunity tocomment on the difference between the feeamount charged by the state for such serviceand the proposed local fee for the service.[1995 c.576 §5; 2007 c.71 §90]

COUNTY ASSESSMENT FUNDING ASSISTANCE PROGRAM

294.175 Definitions; county expendi-tures for assessment; determination ofadequacy; certification of adequacy; ap-peal of denial of certification; effect ofcertification. (1) As used in this section andORS 294.178 to 294.187:

(a) “Department” means the Departmentof Revenue.

(b) “Expenditures” has the meaning giventhe term for purposes of ORS 294.305 to294.520 and may be further defined by ruleof the department. “Expenditures” does notinclude any item or class of items that can-not reasonably be allocated to an organiza-tional unit.

(c) “Expenditures for assessment andtaxation” means expenditures for any of theactivities, functions or services required of acounty in the assessment, equalization, levy,collection or distribution of property taxesunder ORS chapters 305, 306, 307, 308, 308A,309, 310, 311, 312 and 321. “Expenditures forassessment and taxation” specifically in-cludes expenditures for appraising principalor secondary industrial properties, the re-sponsibility for the making of which has beendelegated by the department to a county un-der ORS 306.126 (3).

(d) “Grant” has the meaning given theterm for purposes of ORS 294.305 to 294.520,and is further described under ORS 294.178.

(2) On or before May 1 of each year, eachcounty shall file with the department a truecopy of its estimates of expenditures for as-sessment and taxation for the ensuing yearas prepared for purposes of ORS 294.352 butin accordance with any rules adopted by thedepartment.

(3) Upon receipt of the estimate, the de-partment shall review the estimate to deter-mine its adequacy to provide the resourcesneeded to achieve compliance with ORS308.232 and 308.234, ORS chapter 309 andother laws requiring equality and uniformityin the system of property taxation within thecounty in order that the same equality anduniformity may be achieved throughout thestate.

(4) If, upon initial review of the estimate,the department determines that the proposedexpenditures, or any of them, are not at thelevel or of the type needed to achieve ade-quacy, the department shall notify thecounty governing body. The notice shall con-tain an explanation of the reasons for thedetermination and may describe specificitems or classifications of expenditure whichthe department has determined are required,or are not required, in order to achieve ade-quacy. The notice shall fix the date uponwhich a conference with the county govern-ing body or representatives of the countygoverning body shall be held.

(5)(a) Subject to paragraph (b) of thissubsection, if, upon initial review, or uponor after conference held on the date specifiedin the notice under subsection (4) of thissection, or another date or dates convenient



to the department and the county governingbody, the department determines that theexpenditures as initially filed, or that theexpenditures as agreed upon at the confer-ence, are at the level and of the type neededto achieve adequacy for that year or over aperiod of years under a plan presented asdescribed under ORS 294.181, the departmentshall certify to the county governing bodythat its estimate of expenditures for assess-ment and taxation so determined are ade-quate and that the county will be included inthe computation made under ORS 294.178 forthe purpose of determining the amount ofthat county′s quarterly grant. The depart-ment shall include in the certification an es-timate of the percentage share of the fundsavailable in the County Assessment FunctionFunding Assistance Account that the countywill receive under ORS 294.178 and an esti-mate of the total amount of the grant thatwill be forthcoming to the county from thataccount for the ensuing year on account ofthe certification.

(b) The department shall not certify ex-penditures under this subsection that the de-partment determines are in excess of theexpenditures necessary to meet the require-ments of subsection (3) of this section.

(6) Any certification issued under sub-section (5) of this section shall be issued asof the June 15 following the filing of the es-timate of expenditures under subsection (2)of this section. If, as of June 15, agreementhas not been reached between the depart-ment and the county governing body uponthe estimate, the department shall issue adenial of certification.

(7) A county may appeal the determi-nation of the department under subsection(5)(b) of this section or the denial of certi-fication issued under subsection (6) of thissection to the Director of the Oregon De-partment of Administrative Services. Appealshall be filed within 10 days after the datethat the denial of certification is issued. Thesole issue upon appeal shall be the adequacyof expenditures for assessment and taxationas filed with the department under subsec-tion (2) of this section, and the determi-nation, if any, made by the department undersubsection (5)(b) of this section. If the Ore-gon Department of Administrative Servicesdoes not issue an order approving the ex-penditures before July 1 of the fiscal year forwhich the expenditures are proposed, thecertification for purposes of ORS 294.175 to294.187 shall be considered denied. [1989 c.796§2; 1995 c.748 §11; 1997 c.782 §2; 1999 c.314 §88; 2003 c.169§9]

294.178 Assessment grant to county;determination of grant amount. (1) Beforeissuing any certificate under ORS 294.175,

the Department of Revenue shall estimatethe amount available in the County Assess-ment Function Funding Assistance Accountcreated under ORS 294.184 for distributionas grants to counties for the ensuing fiscalyear.

(2) The estimate shall be used to deter-mine the estimated percent of the moneysavailable in the County Assessment FunctionFunding Assistance Account that eachcounty will receive as grants and the totalestimated grant that each county will receivefor the ensuing fiscal year. The estimates sodetermined shall serve as the estimates re-quired to be included in any certification is-sued under ORS 294.175 for that county.

(3) On or before the 25th day of themonth following the close of each fiscalquarter, the department shall pay a percent-age of the moneys in the County AssessmentFunction Funding Assistance Account as ofthe close of that fiscal quarter to eachcounty to which a certificate has been issuedunder ORS 294.175.

(4) Except as provided under subsection(5) of this section, the percentage to be paidto each county under subsection (3) of thissection shall be the percentage that the ex-penditures of the county certified by the de-partment to the county governing body underORS 294.175 bears to the total of all expend-itures of all counties certified by the depart-ment to counties under ORS 294.175. Indetermining the expenditures of a county orin determining the total of all expendituresfor purposes of this subsection:

(a) No expenditures shall be includedthat have not been certified under ORS294.175.

(b) No expenditures of any county thatdid not file an estimate of expenditures underORS 294.175 shall be included.

(c) No expenditures of any county forwhich certification has been denied shall beincluded.

(d) No expenditures of any county thatdoes not make its appropriation under ORS294.435 based upon 100 percent of the ex-penditures certified shall be included.

(e) No expenditures of any county thatdoes not certify compliance under ORS294.181 shall be included.

(5) If the expenditures of a county arenot included for a fiscal quarter on accountof subsection (4) of this section, no grantshall be made to that county under subsec-tion (3) of this section for that fiscal quarter.If grant funds are denied to any county un-der this subsection for any fiscal quarter, thepercentage determined under subsection (4)of this section shall be redetermined, exclud-ing from the computation for that fiscal



quarter the certified expenditures of thecounty for which grant funds are denied tothe end that all of the funds available in theCounty Assessment Function Funding As-sistance Account as of the close of the fiscalquarter may be distributed. [1989 c.796 §3; 1997c.782 §3; 2003 c.273 §1]

294.181 Alternative method for certi-fication. (1) If, at a conference held pursuantto notice under ORS 294.175, it becomes ap-parent that a county will be unable to meetthe level of expenditures necessary toachieve adequacy for the tax year for whichthe filing under ORS 294.175 was made, theDepartment of Revenue may certify to thecounty governing body expenditures for as-sessment and taxation at the level containedin the county′s estimate on file with the de-partment or as adjusted by the conferenceagreement.

(2) The department shall not certify ex-penditures under subsection (1) of this sec-tion if the county does not present to thedepartment at the conference a plan toachieve adequacy in assessment and taxationwithin a number of years specified by theDepartment of Revenue.

(3) Any county for which expendituresare certified pursuant to this section shallcertify to the department, not less than 15days prior to the close of the fiscal quarter,that the county is in compliance with theconference agreement and the plan developedat the conference agreement. [1989 c.796 §4]

294.184 County Assessment FunctionFunding Assistance Account; sources;purpose. (1) There is created under ORS293.445 a suspense account to be known asthe County Assessment Function FundingAssistance Account. The account shall con-sist of:

(a) All moneys paid over by the countytreasurers as provided under ORS 294.187;and

(b) All interest earned upon any moneysin the account.

(2) Of the moneys in the account as ofthe last day of each fiscal quarter, the mon-eys necessary to pay the following Depart-ment of Revenue expenses shall betransferred to a suspense account of the de-partment created under ORS 293.445 and arecontinuously appropriated to the departmentfor:

(a) Expenses incurred in carrying out thepurposes of ORS 294.175 to 294.184; and

(b) Appraisal expenses incurred by thedepartment in appraising principal and sec-ondary industrial properties identified underORS 306.126 and property of centrally as-sessed companies under ORS 308.505 to308.665.

(3) The total amount of moneys trans-ferred to the suspense account of the depart-ment under subsection (2) of this section maynot exceed 10 percent of the moneys in theaccount as of the last day of the fiscal quar-ter for which the transfer is being made.

(4) The remainder of the moneys in theaccount as of the last day of the fiscal quar-ter shall be used for the purpose of makingthe grant payments to counties as requiredunder ORS 294.178 and are continuously ap-propriated to the department for that pur-pose. [1989 c.796 §6; 1999 c.701 §2a; 2001 c.303 §13]

294.187 County Assessment and Taxa-tion Fund; sources; purpose. (1) There iscreated in the county treasury of eachcounty a fund to be known as the CountyAssessment and Taxation Fund. The fundshall consist of:

(a) Moneys deposited and credited to thefund under ORS 311.508.

(b) Moneys deposited and credited to thefund under ORS 205.323.

(c) Interest earned upon moneys creditedto the fund.

(2) The county treasurer shall pay overthe moneys in the fund, determined as of thelast day of the fiscal quarter, to the StateTreasurer on or before the 10th day of themonth following the last day of the fiscalquarter.

(3) The State Treasurer shall deposit andcredit the moneys received under subsection(2) of this section to the County AssessmentFunction Funding Assistance Account re-ferred to in ORS 294.184.

(4) If the county treasurer fails to payover moneys, as required under subsection(2) of this section, then any unpaid moneysshall be a debt due and owing by the countyto the state and the county shall pay the le-gal rate of interest thereon from the due dateuntil paid. Payment of interest under thissection shall not relieve the county treasurerfrom any penalty imposed by law for failureto make the payments, and in addition, thecounty treasurer shall be liable under ORS311.375 (4)(a) and (b).

(5) ORS 294.305 to 294.565 do not applyto a fund created under this section. [1989c.796 §7; 2003 c.273 §2]

294.205 [Amended by 1963 c.544 §13; repealed by1971 c.267 §16]

294.210 [Amended by 1963 c.544 §14; repealed by1971 c.267 §16]

294.215 [Repealed by 1971 c.267 §16]294.220 [Repealed by 1971 c.267 §16]294.225 [Repealed by 1971 c.267 §16]294.230 [Amended by 1957 c.153 §1; 1959 c.243 §1;

1963 c.504 §1; 1983 c.310 §17; 1991 c.683 §2; repealed by1999 c.654 §37]



294.235 [Amended by 1957 c.153 §2; repealed by 1999c.654 §37]



PUBLICATION OF FINANCIALREPORTS

294.250 Publication by county govern-ing body of schedule of expenditures andstatement of proceedings; manner ofpublication; notice. (1) The county govern-ing body of each county shall cause to bemade out and published at the expense of thecounty by the last day of each month aschedule of those expenditures of the countywhich singly exceed $500 for the previousmonth. The schedule shall also include ex-penditures made to claimants who receive inexcess of $500 for the previous month in re-turn for a combination of articles or serviceswhich individually cost less than $500. Thepublication shall also include a concisestatement of the proceedings of the govern-ing body in the transaction of county busi-ness entered of record during the previousmonth.

(2) The schedule of expenditures shallstate the names of all claimants, the generalpurpose of the article or service for whichpayment is claimed in each bill and theamount ordered paid. The statement of pro-ceedings shall be a true reflection of actionstaken at any public meeting of the countygoverning body.

(3) Except as otherwise provided in thissubsection, the county shall not be requiredto publish any claim for personal services ofregular county officers and employees occu-pying budgeted positions. Once each year thecounty shall publish the name and grossmonthly salary of all regular officers andemployees occupying budgeted positions.

(4) The publications required by this sec-tion shall not apply to any counties havinga tax supervising and conservation commis-sion.

(5) The publications required by this sec-tion shall be made by posting on the bulletinboard of the county courthouse and at allpublic libraries in the county. The countyshall also publish at least once each monthin a newspaper of general circulation in thecounty a notice stating that the informationrequired to be published under this sectionis posted and available for review at thecounty courthouse and public libraries. Thenotice shall also state that copies of all orpart of the posted information may be ob-tained from the county upon request andupon payment of a fee not exceeding the ac-tual costs incurred by the county in making

copies of the posted information. [Amended by1963 c.360 §1; 1979 c.651 §1; 1987 c.435 §1; 1991 c.285 §1]

294.255 [Repealed by 1991 c.285 §2]294.260 [Repealed by 1991 c.285 §2]

LOCAL BUDGET LAW294.305 Sections constituting Local

Budget Law. ORS 294.305 to 294.565 shallbe known as the Local Budget Law.


294.311 Definitions for ORS 294.305 to294.565. As used in ORS 294.305 to 294.565,unless the context requires otherwise:

(1) “Accrual basis” means the recordingof the financial effects on a municipal corpo-ration of transactions and other events andcircumstances that have cash consequencesfor the municipal corporation in the periodsin which those transactions, events and cir-cumstances occur, rather than only in theperiods in which cash is received or paid bythe municipal corporation.

(2) “Activity” means a specific and dis-tinguishable service performed by one ormore organizational components of a munici-pal corporation to accomplish a function forwhich the municipal corporation is responsi-ble.

(3) “Appropriation” means an authori-zation granted by the governing body tomake expenditures and to incur obligationsfor specific purposes. An appropriation islimited to a single fiscal year for municipalcorporations preparing annual budgets, or tothe budget period for municipal corporationspreparing biennial budgets.

(4) “Basis of accounting” means the cashbasis, the modified accrual basis or the ac-crual basis.

(5) “Budget” means a plan of financialoperation embodying an estimate of expendi-tures for a given period or purpose and theproposed means of financing the estimatedexpenditures.

(6) “Budget document” means the esti-mates of expenditures and budget resourcesas set forth on the estimate sheets, tax levyand the financial summary.

(7) “Budget period” means, for municipalcorporations with the power to levy a taxupon property, the two-year period com-mencing on July 1 and closing on June 30 ofthe second calendar year next following, andfor all other municipal corporations, an ac-counting period of 24 months ending on thelast day of any month.

(8) “Budget resources” means resourcesto which recourse can be had to meet obli-gations and expenditures during the fiscalyear or budget period covered by the budget.



(9) “Cash basis” means a basis of ac-counting under which transactions are re-cognized only in the period during whichcash is received or disbursed.

(10) “Current budget period” means thebudget period in progress.

(11) “Current year” means the fiscal yearin progress.

(12) “Encumbrance accounting” meansthe method of accounting under which out-standing encumbrances are recognized as re-ductions of appropriations and the relatedcommitments are carried in a reserve for en-cumbrances until liquidated, either by re-placement with an actual liability or bycancellation. This method of accounting maybe used as a modification to the accrual basisof accounting in accordance with generallyaccepted accounting principles.

(13) “Encumbrances” means obligationsin the form of purchase orders, contracts orsalary commitments which are chargeable toan appropriation and for which a part of theappropriation is reserved. Obligations ceaseto be encumbrances when paid or when theactual liability is set up.

(14) “Ensuing budget period” means thebudget period following the current budgetperiod.

(15) “Ensuing year” means the fiscal yearfollowing the current year.

(16) “Expenditure” means, if the accountsare kept on the accrual basis or the modifiedaccrual basis, decreases in net financial re-sources and may include encumbrances. Ifthe accounts are kept on the cash basis, theterm covers only actual disbursement, thedrawing of the check or warrant for thesepurposes and not encumbrances, except thatdeferred employee compensation shall be in-cluded as a personal service expenditurewhere an approved deferred employee com-pensation plan is in effect for a municipalcorporation.

(17) “Fiscal year” means for municipalcorporations with the power to impose advalorem property taxes, the fiscal year com-mencing on July 1 and closing on June 30,and for all other municipal corporations, anaccounting period of 12 months ending onthe last day of any month.

(18) “Fund balance” means the excess ofthe assets of a fund over its liabilities andreserves except in the case of funds subjectto budgetary accounting where, prior to theend of a fiscal period, it represents the ex-cess of the fund′s assets and estimated re-venues for the period over its liabilities,reserves and appropriations for the period.

(19) “Governing body” means the citycouncil, board of commissioners, board of di-

rectors, county court or other managingboard of a municipal corporation including aboard managing a municipally owned publicutility or a dock commission.

(20) “Grant” means a donation or con-tribution of cash to a governmental unit bya third party.

(21) “Intergovernmental entity” means anentity created under ORS 190.010 (5). Theterm includes any council of governmentscreated prior to the enactment of ORS190.010 (5).

(22) “Internal service fund” means a fundproperly authorized to finance, on a cost re-imbursement basis, goods or services pro-vided by one organizational unit of amunicipal corporation to other organiza-tional units of the municipal corporation.

(23) “Liabilities” means probable futuresacrifices of economic benefits, arising frompresent obligations of a municipal corpo-ration to transfer assets or provide servicesto other entities in the future as a result ofpast transactions or events. The term doesnot include encumbrances.

(24)(a) “Modified accrual basis” meansthe accrual basis of accounting adapted tothe governmental fund-type measurement fo-cus. Under this basis of accounting, revenuesand other financial resource increments,such as bond proceeds, are recognized whenthey become susceptible to accrual, that is,when they become both measurable andavailable to finance expenditures in the cur-rent period.

(b) As used in this subsection,“available” means collectible in the currentperiod or soon enough thereafter to be usedto pay liabilities of the current period. Underthis basis of accounting, expenditures are re-cognized when the fund liability is incurredexcept for:

(A) Inventories of material and suppliesthat may be considered expenditures eitherwhen purchased or when used; and

(B) Prepaid insurance and similar itemsthat may be considered expenditures eitherwhen paid for or when consumed.

(25) “Municipal corporation” means anycounty, city, port, school district, union highschool district, community college districtand all other public or quasi-public corpo-rations including a municipal utility or dockcommission operated by a separate board orcommission. “Municipal corporation” in-cludes an intergovernmental entity or coun-cil of governments that proposes to imposeor imposes ad valorem property taxes.

(26) “Net working capital” means thesum of the cash, cash equivalents, invest-ments, accounts receivable expected to be



converted to cash during the ensuing year orensuing budget period, inventories, suppliesand prepaid expenses less current liabilitiesand, if encumbrance accounting is adopted,reserve for encumbrances. The term is notapplicable to the cash basis of accounting.

(27) “Object” means, as used in expendi-ture classification, articles purchased includ-ing, but not limited to, land, buildings,equipment and vehicles, or services obtainedincluding, but not limited to, administrativeservices, clerical services, professional ser-vices, property services and travel, as distin-guished from the results obtained fromexpenditures.

(28) “Object classification” means agrouping of expenditures on the basis ofgoods or services purchased, including, butnot limited to, personal services, materials,supplies and equipment.

(29) “Operating taxes” has the meaninggiven that term in ORS 310.055.

(30) “Organizational unit” means any ad-ministrative subdivision of a municipal cor-poration, especially one charged withcarrying on one or more functions or activ-ities.

(31) “Population” means the number ofinhabitants of a municipal corporation ac-cording to certified estimates of populationmade by the State Board of Higher Educa-tion.

(32) “Program” means a group of relatedactivities aimed at accomplishing a majorservice or function for which the municipal-ity is responsible.

(33) “Public utility” means those publicutility operations authorized by ORS chapter225.

(34) “Publish” or “publication” meansany one or more of the following methods ofgiving notice or making information or doc-uments available to members of the generalpublic:

(a) Publication in one or more newspa-pers of general circulation within the juris-dictional boundaries of the municipalcorporation.

(b) Posting through the United StatesPostal Service by first class mail, postageprepaid, to each street address within thejurisdictional boundaries of the municipalcorporation.

(c) Hand delivery to each street addresswithin the jurisdictional boundaries of themunicipal corporation.

(35) “Receipts” means cash received un-less otherwise qualified.

(36) “Reserve for encumbrances” meansa reserve representing the segregation of a

portion of a fund balance to provide for un-liquidated encumbrances.

(37) “Revenue” means the gross receiptsand receivables of a governmental unit de-rived from taxes, licenses, fees and from allother sources, but excluding appropriations,allotments and return of principal from in-vestment of surplus funds.

(38) “Special revenue fund” means a fundproperly authorized and used to finance par-ticular activities from the receipts of specifictaxes or other revenues. [1963 c.576 §3; 1971 c.513§55; 1975 c.319 §2; 1977 c.102 §4; 1977 c.305 §1; 1979 c.686§1; 1997 c.308 §3; 1997 c.541 §322; 1999 c.632 §1; 2001 c.104§102; 2001 c.135 §3; 2003 c.235 §1]

294.315 [Repealed by 1963 c.576 §44]

294.316 Application. The provisions ofORS 294.305 to 294.565 do not apply to thefollowing municipal corporations and enti-ties:

(1) Drainage districts organized underORS chapter 547;

(2) District improvement companies or-ganized under ORS chapter 554;

(3) Highway lighting districts organizedunder ORS chapter 372;

(4) Irrigation districts organized underORS chapter 545;

(5) Road districts organized under ORSchapter 371;

(6) Soil and water conservation districtsorganized under ORS chapter 568 that willnot levy an ad valorem tax during the ensu-ing year or ensuing budget period;

(7) Municipal public utilities operatingunder separate boards or commissions, au-thorized under ORS chapter 225 and citycharters, and people′s utility districts organ-ized under ORS chapter 261, both operatingwithout ad valorem tax support during theensuing year or ensuing budget period;

(8) Housing authorities organized underORS 446.515 to 446.547 and ORS chapter 456that are not carrying out urban renewal ac-tivities using a division of ad valorem taxesunder ORS 457.440 during the ensuing yearor ensuing budget period;

(9) Water control districts organized un-der ORS chapter 553 that will not levy an advalorem tax during the ensuing year or en-suing budget period;

(10) Hospital financing authorities organ-ized under ORS 441.525 to 441.595;

(11) Export trading corporations organ-ized under ORS 777.755 to 777.800;

(12) Diking districts organized under ORSchapter 551;

(13) Health districts organized underORS 440.315 to 440.410; and



(14) Intergovernmental entities createdunder ORS 190.010, including councils ofgovernments described in ORS 294.900 to294.930, except that an intergovernmentalentity or a council of governments that pro-poses to impose ad valorem property taxesfor the ensuing year or budget period is sub-ject to ORS 294.305 to 294.565 for the budgetprepared for that year or period. [1963 c.576§35; 1965 c.451 §1; 1979 c.621 §8a; 1979 c.686 §9; 1981 c.918§5; 1983 c.200 §18; 1985 c.361 §1; 1999 c.632 §2; 2001 c.135§4; 2001 c.251 §3; 2003 c.235 §2]

294.320 [Repealed by 1963 c.576 §44]

294.321 Purposes. The purposes of ORS294.305 to 294.565 are:

(1) To establish standard procedures forthe preparation, presentation, administrationand appraisal of budgets of municipal corpo-rations;

(2) To provide for a brief description ofthe programs of a municipal corporation andthe fiscal policy which is to accomplish theseprograms;

(3) To provide for estimation of revenues,expenditures and proposed taxes;

(4) To provide specific methods for ob-taining public views in the preparation offiscal policy;

(5) To provide for the control of revenuesand expenditures for the promotion of effi-ciency and economy in the expenditure ofpublic funds; and

(6) To enable the public, taxpayers andinvestors to be apprised of the financial poli-cies and administration of the municipalcorporation in which they are interested.[1963 c.576 §2; 1997 c.308 §4; 1997 c.541 §323]

294.323 Budget period. (1) A municipalcorporation, by ordinance, resolution orcharter, may provide that the budget andbudget documents for the municipal corpo-ration be prepared for a period of 24 months.Unless so authorized by ordinance, resolu-tion or charter, a municipal corporation maynot prepare a budget and budget documentsfor a period longer than one fiscal year.

(2) When the governing body of a munic-ipal corporation prepares a biennial budget,the governing body shall certify to the as-sessor for each fiscal year of the budget pe-riod the ad valorem property tax amount orrate for the ensuing fiscal year. [2001 c.135 §2]

Note: 294.323 was added to and made a part of294.305 to 294.565 by legislative action but was notadded to any smaller series therein. See Preface to Or-egon Revised Statutes for further explanation.


294.326 Compliance with Local BudgetLaw required prior to expenditure or taxcertification; exceptions. (1) Except as pro-vided in subsections (3) to (11) of this sec-

tion, it is unlawful for any municipalcorporation to expend money or to certify tothe assessor an ad valorem tax rate or esti-mated amount of ad valorem taxes to be im-posed in any year unless the municipalcorporation has complied with ORS 294.305to 294.565.

(2) To the extent that any of subsections(3) to (11) of this section apply in a givencase, the municipal corporation need notcomply with ORS 294.305 to 294.565.

(3) Subsection (1) of this section does notapply to the expenditure in the year of re-ceipt of grants, gifts, bequests or devisestransferred to a municipal corporation intrust for specific purposes or to other specialpurpose trust funds at the disposal of munic-ipal corporations. However, subsection (1) ofthis section does apply to the expenditure ofgrants, gifts, bequests or devises transferredto a municipal corporation for undesignatedgeneral purposes or to the expenditure ofgrants, gifts, bequests or devises transferredto a municipal corporation in trust for spe-cific purposes which were received in a prioryear. Expenditure of grants, gifts, bequestsand devises exempt from subsection (1) ofthis section by this subsection is lawful onlyafter enactment by the governing body of themunicipal corporation of appropriation ordi-nances or resolutions authorizing the ex-penditure.

(4) Subsection (1) of this section does notapply whenever the governing body of a mu-nicipal corporation has declared the exist-ence of an unforeseen occurrence orcondition which could not have been fore-seen at the time of the preparation of thebudget for the current year or current bud-get period or could not have foreseen apressing necessity for the expenditure or hasreceived a request for services or facilities,the cost of which is supplied by a private in-dividual, corporation or company or by an-other governmental unit necessitating agreater expenditure of public money for anyspecific purpose or purposes than the amountbudgeted in order to provide the services forwhich the governing body of the municipalcorporation was responsible. The governingbody may make excess expenditures for thespecific purpose or purposes beyond theamount budgeted and appropriated to the ex-tent that maintenance, repair or self-insurance reserves authorized by ORS294.366 or nontax funds are available or maybe made available. The expenditures arelawful only after the enactment of appropri-ate appropriation ordinances or resolutionsauthorizing the expenditures. The ordinanceor resolution must state the need for the ex-penditure, the purpose for the expenditureand the amount appropriated.



(5) Subsection (1) of this section does notapply to the expenditure during the currentyear or current budget period of the proceedsof the sale of the following bonds, as definedin ORS 287A.001, or to the expenditure dur-ing the current year or current budget periodof other funds to pay debt service on thosebonds:

(a) Bonds that are issued under ORS287A.150 and for which the referral perioddescribed in ORS 287A.150 ended after thepreparation of the budget of the current yearor current budget period;

(b) Bonds that were approved by theelectors during the current year or currentbudget period; or

(c) Bonds issued during the current yearor current budget period to refund previouslyissued bonds or obligations.

(6) Subsection (1) of this section does notapply to:

(a) Expenditures of funds received fromthe sale of conduit revenue bonds or otherborrowings issued for private business enti-ties or nonprofit corporations by publicbodies, as defined in ORS 287A.001, or theState of Oregon or to pay debt service on thebonds;

(b) Expenditures of funds that have beenirrevocably placed in escrow for the purposeof defeasing and paying bonds;

(c) Expenditures of assessments or otherrevenues to redeem bonds that are payablefrom the assessments or other revenues,when the assessments or other revenues arereceived as a result of prepayments or otherunforeseen circumstances; or

(d) Expenditures of funds that are heldas debt service reserves for bonds if the ex-penditures are made to:

(A) Pay debt service on the bonds;(B) Redeem the bonds; or(C) Fund an escrow or trust account to

defease or pay the bonds.(7) Subsection (1) of this section does not

apply to expenditures of funds received fromassessments against benefited property forlocal improvements as defined in ORS223.001 to the extent that the cost of the im-provements is to be paid by owners of bene-fited property.

(8) Subsection (1) of this section does notapply to the expenditure of funds accumu-lated to pay deferred employee compensation.

(9) Subsection (1) of this section does notapply to refunds or the interest on refundsgranted by counties under ORS 311.806.

(10) Subsection (1) of this section doesnot apply to refunds received by a municipalcorporation when purchased items are re-

turned after an expenditure has been made.Expenditure of refunded amounts to whichthis subsection applies is lawful only afterthe governing body of the municipal corpo-ration has enacted, after public hearing, ap-propriate appropriation ordinances orresolutions authorizing the expenditure.

(11) Subsection (1) of this section doesnot apply to a newly formed municipal cor-poration during the fiscal year in which itwas formed. If a new municipal corporationis formed between March 1 and June 30,subsection (1) of this section does not applyto the municipal corporation during the fis-cal year immediately following the fiscalyear in which it was formed. [1963 c.576 §4; 1965c.451 §2; 1977 c.102 §2; 1979 c.310 §1; 1987 c.280 §1; 1991c.902 §110; 1995 c.333 §8; 1997 c.308 §5; 1997 c.541 §324;1999 c.632 §3; 2001 c.135 §5; 2003 c.195 §25; 2005 c.443 §14;2007 c.783 §118]

294.330 [Repealed by 1963 c.576 §44]

294.331 Budget officer. The governingbody of each municipal corporation shall,unless otherwise provided by county or citycharter, designate one person to serve asbudget officer. The budget officer, or theperson or department designated by charterand acting as budget officer, shall prepare orsupervise the preparation of the budget doc-ument. The budget officer shall act under thedirection of the executive officer of the mu-nicipal corporation, or where no executiveofficer exists, under the direction of the gov-erning body. [1963 c.576 §5]

294.335 [Repealed by 1963 c.576 §44]

294.336 Budget committee. (1) Exceptas provided in ORS 294.341, the governingbody of each municipal corporation shall es-tablish a budget committee in accordancewith the provisions of this section.

(2) The budget committee shall consist ofthe members of the governing body and anumber, equal to the number of members ofthe governing body, of electors of the munic-ipal corporation appointed by the governingbody; if there are electors fewer than thenumber required, the governing body and theelectors who are willing to serve shall be thebudget committee; and if there are no elec-tors willing to serve, the governing bodyshall be the budget committee.

(3) The members of the budget committeeshall receive no compensation for their ser-vices as members of such committee.

(4) Appointive members of the budgetcommittee may not be officers, agents oremployees of the municipal corporation.

(5) Appointive members of a budget com-mittee that prepares an annual budget shallbe appointed for terms of three years. Theterms shall be staggered so that, as near aspracticable, one-third of the terms of the ap-pointive members end each year.



(6) Appointive members of a budget com-mittee that prepares a biennial budget shallbe appointed for terms of four years. Theterms shall be staggered so that, as near aspracticable, one-fourth of the terms of theappointive members end each year.

(7) If any appointive member is unable toserve the term for which the member wasappointed, or an appointive member resignsprior to completion of the term for which themember was appointed, the governing bodyof the municipal corporation shall fill thevacancy by appointment for the unexpiredterm.

(8) If the number of members of the gov-erning body is reduced or increased by lawor charter amendment, the governing bodyof the municipal corporation shall reduce orincrease the number of appointive membersof the budget committee so that the numberthereof shall be equal to but not greater thanthe number of members of the governingbody. To effect a reduction, the governingbody of the municipal corporation may re-move such number of appointive members asmay be necessary. The removals shall bemade so that the number remaining will bedivided into three, if the terms of the ap-pointive members are governed by subsection(5) of this section, or four, if the terms of theappointive members are governed by subsec-tion (6) of this section, equal or approxi-mately equal groups as to terms. In case ofan increase, additional appointive membersshall be appointed for such terms so thatthey, together with the members previouslyappointed, will be divided into three or four,as appropriate under this section, equal orapproximately equal groups as to terms.

(9) The budget committee shall at its firstmeeting after its appointment elect a presid-ing officer from among its members. [1963 c.576§6; 1973 c.61 §1; 1979 c.310 §2; 1997 c.308 §6; 2001 c.135§32]

294.340 [Repealed by 1963 c.576 §44]

294.341 Governing body of certainmunicipal corporations to be budgetcommittee; exception. (1) The governingbody of each municipal corporation having apopulation exceeding 200,000 and that is lo-cated in a county having a tax supervisingand conservation commission shall be thebudget committee for the municipal corpo-ration unless the governing body of the mu-nicipal corporation elects by resolution tocreate a budget committee as provided inORS 294.336.

(2) The governing body of a city with apopulation of more than 400,000 is the budgetcommittee of an urban renewal agency cre-ated by the city under ORS 457.035. [1963 c.576§7; 1997 c.308 §7; 2005 c.417 §1; 2007 c.670 §1]

294.345 [Amended by 1953 c.715 §2; 1955 c.250 §1;1957 c.673 §3; repealed by 1963 c.576 §44]

294.347 [1953 c.715 §3; repealed by 1963 c.576 §44]294.348 [1957 c.673 §2; repealed by 1963 c.576 §44]294.350 [Amended by 1953 c.715 §2; 1957 c.673 §4;

repealed by 1963 c.576 §44]294.351 [1963 c.576 §8; 1965 c.451 §3; 1971 c.516 §1;

1979 c.310 §3; repealed by 1979 c.686 §2 (294.352 enactedin lieu of 294.351)]

294.352 Estimates of expenditures re-quired; form and contents. (1) Each mu-nicipal corporation shall prepare estimatesof expenditures for the ensuing year or en-suing budget period.

(2) The estimates required by subsection(1) of this section shall be prepared by or-ganizational unit or by program.

(3) Estimates required by subsection (1)of this section and prepared by organiza-tional unit shall be detailed under separateobject classifications of personal services,materials and services and capital outlay.Separate estimates shall be made for specialpayments, debt service, interfund revenuetransfers, operating expenses and generalcapital outlays which cannot reasonably beallocated to an organizational unit.

(4) Estimates required by subsection (1)of this section and prepared by program shallbe arranged for each activity of a program.Estimates under each activity shall be de-tailed under separate object classificationsof personal services, materials and servicesand capital outlay. Separate estimates shallbe made for each program for special pay-ments, debt service, interfund revenue trans-fers, operating expenses and general capitaloutlays which cannot reasonably be allocatedto an activity within a function. For commonand union high school districts and commu-nity colleges, estimates required by this sub-section shall be further detailed by objectwithin each object classification.

(5) Estimates of expenditures for personalservices, other than services of persons whoreceive an hourly wage or who are hired ona part-time basis, shall list the salary foreach officer and employee, except that em-ployees of like classification and salaryrange, (such range not to exceed that estab-lished by the governing body of the munici-pal corporation in accordance with its policyfor setting salaries) in each organizationalunit or activity may be listed by the numberof those employees, the limits of each salaryrange and the amount of their combined sal-aries.

(6) The general capital outlay estimateshall include separate amounts for land,buildings, improvements to land other thanbuildings and machinery and equipmentwhich cannot be reasonably allocated to anorganizational unit or activity.



(7) The debt service estimates shall in-clude separate amounts for principal and in-terest of each bond issue in each fund.

(8) There may be included in each fundan estimate for general operating contingen-cies.

(9) If the estimates required by subsec-tion (1) of this section are not prepared byfund, there shall be prepared a summarywhich cross-references programs or organiza-tional units to the appropriations required byORS 294.435. [1979 c.686 §3 (enacted in lieu of294.351); 2001 c.135 §6]

294.355 [Repealed by 1963 c.576 §44]

294.356 Preparation of estimates byschool, education service and communitycollege districts and by municipal corpo-rations operating public utility or hospi-tal. (1) Each school district, each educationservice district and each community collegedistrict shall prepare its estimates of ex-penditures required by ORS 294.352 in ac-cordance with the classification of revenueand expenditure accounts prescribed by rulesof the State Board of Education with the ap-proval of the Department of Revenue. TheDepartment of Revenue shall be responsiblefor determining compliance.

(2) The term “organizational unit” shallnot apply to hospitals, school districts, edu-cation service districts and community col-leges in preparing estimates of expendituresunder ORS 294.352 or making appropriationsunder ORS 294.435. The term “organizationalunit” shall not apply to hospitals in prepar-ing the budget summary required by ORS294.416.

(3) Notwithstanding ORS 294.352 (5),each municipal corporation which operates apublic utility or hospital shall prepare its es-timates for such operations in accordancewith the generally accepted system of ac-counts for such operation or in accordancewith the general system of accounts con-tained in ORS 294.311 to 294.520. [1963 c.576§§8a,9; 1971 c.513 §56; 1979 c.686 §4; 1993 c.112 §1]

294.360 [Amended by 1957 c.673 §5; 1963 c.576 §22;renumbered 294.416]

294.361 Contents of estimate of budgetresources. (1) Each municipal corporationshall estimate in detail its budget resourcesfor the ensuing year or ensuing budget pe-riod by funds and sources.

(2) Budget resources include but are notlimited to:

(a) The balance of cash, cash equivalentsand investments (in the case of a municipalcorporation on the cash basis) or the networking capital (in the case of a municipalcorporation on the accrual or modified ac-crual basis of accounting) that will remain in

each fund on the last day of the current yearor current budget period;

(b) Taxes;(c) Fees;(d) Licenses;(e) Fines;(f) Interest on deposits or on securities

of any kind;(g) Endowments;(h) Annuities;(i) Penalties;(j) Sales of property or other assets or

products of any kind;(k) Delinquent taxes;(L) Judgments;(m) Damages;(n) Rent;(o) Premiums on sales of bonds;(p) Reimbursement for services, road or

other work performed for others;(q) Transfer or reverter of unused bal-

ances of any kind;(r) Reimbursement for services provided

other funds;(s) Rebates;(t) Refunds of moneys heretofore paid on

any account;(u) Apportionment, grant, contribution,

payment or allocation from the federal orstate government or any unit of government;

(v) Taxes for the ensuing year or ensuingbudget period;

(w) Interfund revenue transfers; and(x) Revenues from any and all other

sources of whatsoever kind or character.(3) Budget resources do not include:(a) The estimate for the ensuing year or

ensuing budget period of discounts underORS 311.505.

(b) The estimate of uncollectible amountsof taxes, fees or charges for the ensuing yearor ensuing budget period.

(c) Moneys accumulated under an ap-proved employee deferred compensation planand interest or investment returns earned onsuch moneys.

(d) Grants, gifts, bequests or devisestransferred to a municipal corporation intrust for specific uses in the year of transfer.However, such grants, gifts, bequests or de-vises shall be included as budget resourcesif, by the time the budget committee ap-proves the budget, the amount thereof thatwill be received in the ensuing year or ensu-ing budget period can be reasonably esti-mated. Such grants, gifts, bequests or devises



may be placed in a trust and agency fund, tothen be appropriated from such fund orfunds. [1963 c.576 §10; subsection (4) enacted as 1965c.604 §11; 1969 c.612 §3; 1977 c.102 §3; 1979 c.310 §4; 1997c.308 §8; 1999 c.632 §4; 1999 c.1051 §268; 2001 c.135 §7;2005 c.22 §223]

294.363 [1971 c.516 §10; repealed by 1979 c.686 §10]294.365 [Amended by 1957 c.310 §2; 1959 c.262 §2;

1961 c.299 §1; 1961 c.678 §1; 1963 c.576 §23; renumbered294.421]

294.366 Reserving receipts fromrevenue-producing property or facility;deposit in special fund. (1) Any port ordock commission may reserve any portion ofthe receipts from any revenue-producingproperty or facility. Any city may reserveany portion of the receipts from any publicutility operation of such city. Any such port,dock commission or city may reserve anyproceeds from the sale of any such propertyfor future maintenance, alteration, repair,equipment, relocation or replacement of suchproperties or facilities of the general natureand type from which the proceeds or receiptswere received or for insurance funds or re-tirement pension funds, as the governingbody may deem necessary or appropriate.However, if money is received from the saleof property that has been purchased with theproceeds from the sale of bonds or utilitycertificates, the governing body shall firstapply the receipts from the sale of suchproperty to the payment of any applicableoutstanding bonded indebtedness before allo-cation of any portion of the receipts to a re-serve fund.

(2) Moneys reserved under subsection (1)of this section shall be placed in a specialfund or funds. [1963 c.576 §12; 2005 c.22 §224]


294.371 Estimate of unappropriatedending fund balance for each fund. A mu-nicipal corporation may include in its budgetan estimate of unappropriated ending fundbalance for each fund, for use in the fiscalperiod following that for which the budget isbeing prepared. The estimate authorized bythis section represents cash or net workingcapital which will be carried over into theyear following the ensuing fiscal year or en-suing budget period for which the budget isbeing prepared. It shall not in any way re-duce the cash balance or net working capitalwhich becomes part of the budget resourcesprovided in ORS 294.361 (1) to (3). The un-appropriated ending fund balance authorizedby this section shall become a budget re-source at the close of the ensuing fiscal yearor ensuing budget period for the succeedingyear or budget period. Except as provided inORS 294.326 (3) and 294.455, no appropriationnor expenditure shall be made in the year orbudget period for which the budget is appli-

cable for the amount estimated pursuant tothis section. [1963 c.576 §13; 1965 c.451 §4; 1997 c.308§9; 2001 c.135 §8]

294.375 [Repealed by 1963 c.576 §44]

294.376 Expenditure and resource es-timate sheets; made part of budget docu-ment. (1) The sheet or sheets containing theestimate of expenditures shall also show inparallel columns the actual expenditures forthe two fiscal years next preceding the cur-rent year or the actual expenditures for thetwo budget periods preceding the currentbudget period, the estimated expenditures forthe current year or current budget periodand the estimated expenditures for the ensu-ing year or ensuing budget period.

(2) The sheet or sheets containing theestimate of budget resources shall also showin parallel columns the actual budget re-sources of the two fiscal years next preced-ing the current year or the actual budgetresources for the two budget periods preced-ing the current budget period, the estimatedbudget resources for the current year orcurrent budget period and the estimatedbudget resources for the ensuing year or en-suing budget period.

(3) The estimate sheets shall be made apart of the budget document. [1963 c.576 §14;2001 c.135 §9]


294.381 Determination of estimatedtax revenues. (1) Each municipal corpo-ration that has the power to levy an advalorem property tax shall estimate, in themanner provided in this section, the amountof revenues that will be received in the en-suing year or ensuing budget period throughthe imposition of taxes upon the taxableproperty within the municipal corporation.

(2) Subject to the additional adjustmentsrequired under subsection (3) of this section,the estimated ad valorem taxes that will bereceived in the ensuing year or ensuing bud-get period shall not exceed the following:

(a) The amount derived by multiplyingthe estimated assessed value for the ensuingyear or each fiscal year of the ensuing bud-get period of the taxable property within themunicipal corporation, after boundarychanges have been filed in final approvedform with the county assessor and the De-partment of Revenue as provided in ORS308.225, by whichever of the following is ap-plicable to the municipal corporation:

(A) The municipal corporation′s perma-nent rate limit on operating taxes, as definedin ORS 310.202 (7); or

(B) The municipal corporation′s statutoryrate limit on operating taxes, as defined inORS 310.202 (10).



(b) If the municipal corporation is au-thorized to levy a local option tax that wasauthorized by the electors as a dollaramount, the dollar amount of such local op-tion tax that is authorized to be levied in theensuing year or ensuing budget period.

(c) If the municipal corporation is au-thorized to levy a local option tax that wasauthorized by the electors as a tax rate, theamount derived by multiplying the author-ized rate of such local option tax for the en-suing year or ensuing budget period by theestimated assessed value for the ensuing yearor each fiscal year of the ensuing budget pe-riod of the taxable property within the mu-nicipal corporation.

(d) The municipal corporation′s estimateof the amount required to pay the principaland interest on bonded indebtedness that isnot subject to limitation under section 11(11) or section 11b, Article XI of the OregonConstitution. The estimate may include anamount equal to the total of any such pay-ments that are due and payable in the fiscalperiod following the fiscal period for whichthe budget is being prepared and before asufficient amount of property taxes to paythat bonded indebtedness are collected inthat fiscal period, pursuant to ORS 294.371.The estimate may also include amounts toreimburse the municipal corporation for thepayment of principal and interest on exemptbonded indebtedness that the municipal cor-poration made from other moneys becausecollections of taxes levied for exempt bondedindebtedness were not sufficient to pay thatexempt bonded indebtedness.

(e) The municipal corporation′s estimateof the amount required to repay taxing dis-trict bond obligations or pension and disabil-ity plan obligations described in section 11(5), Article XI of the Oregon Constitution.

(3) The amounts determined under sub-section (2)(a), (b) and (c) of this section shallbe reduced by an amount equal to the esti-mated amount of such taxes that will not becollected as a result of:

(a) The discounts allowed under ORS311.505;

(b) The limits imposed under ORS 310.150(3); and

(c) The failure of taxpayers to pay suchtaxes in the year for which they are levied.

(4)(a) The estimated ad valorem taxes de-termined in accordance with subsection(2)(a), (b) and (c) of this section, prior to ad-justment by subsection (3) of this section,shall be used by the municipal corporationfor purposes of complying with the require-ments of ORS 310.060 (1).

(b) The amounts determined under sub-section (2)(d) and (e) of this section shall, for

purposes of complying with the requirementsof ORS 310.060 (1), be increased by anamount equal to the estimated amount oftaxes that will not be collected as a resultof:

(A) The discounts allowed under ORS311.505;

(B) The limits imposed under ORS310.150 (3); or

(C) The failure of taxpayers to pay taxesin the year for which they are levied. [1963c.576 §15: 1979 c.762 §1; 1991 c.459 §5; 1997 c.308 §10; 1997c.541 §328; 1999 c.186 §7; 1999 c.632 §5; 2001 c.135 §10;2001 c.138 §1; 2003 c.46 §1; 2005 c.443 §31; 2007 c.894 §1]

Note: Section 3, chapter 894, Oregon Laws 2007,provides:

Sec. 3. The amendments to ORS 294.381 and 310.060by sections 1 and 2 of this 2007 Act apply to tax yearsbeginning on or after July 1, 2007. [2007 c.894 §3]

294.385 [Repealed by 1963 c.576 §44]

294.386 Financial summary. Each mu-nicipal corporation shall prepare a financialsummary. The financial summary shall in-clude:

(1) A summary statement by funds show-ing the estimate of budget resources and theestimate of expenditures;

(2) A classified statement of outstandingindebtedness, but not including indebtednessthat has been defeased as provided in ORS287A.195;

(3) A classified statement of all indebted-ness authorized but not incurred; and

(4) A summary statement of the estimateof ad valorem property taxes, stated in dol-lars and cents and also stated as an esti-mated tax rate per thousand dollars ofassessed value. [1963 c.576 §16; 1979 c.686 §5; 1997c.308 §11; 1997 c.541 §329; 2007 c.783 §119]

294.390 [Repealed by 1963 c.576 §44]

294.391 Budget message. A budget mes-sage shall be prepared by or under the di-rection of the executive officer of themunicipal corporation or, where no executiveofficer exists, by or under the direction ofthe presiding officer of the governing body.The budget message shall be delivered at ameeting of the budget committee as providedin ORS 294.401 (1). The budget message shall:

(1) Explain the budget document;(2) Contain a brief description of the

proposed financial policies of the municipalcorporation for the ensuing year or ensuingbudget period;

(3) Describe in connection with the fi-nancial policies of the municipal corporation,the important features of the budget docu-ment;

(4) Set forth the reason for salientchanges from the previous year or budget



period in appropriation and revenue items;and

(5) Explain the major changes in finan-cial policy. [1963 c.576 §17; 1997 c.308 §12; 2001 c.135§11]

294.395 [Repealed by 1963 c.576 §44]

294.396 Time of making budget mes-sage and document. The budget messageand budget document shall be prepared asufficient length of time in advance to allowthe adoption of the budget by the close of thecurrent fiscal year or current budget period.[1963 c.576 §18; 2001 c.135 §12]

294.400 [Amended by 1953 c.40 §2; 1959 c.168 §1; re-pealed by 1963 c.576 §44]

294.401 Budget committee meeting;distribution of budget message and docu-ment; copies of document to be available.(1) The budget committee shall hold one ormore meetings for the following purposes:

(a) Receiving the budget message and thebudget document; and

(b) Providing members of the public withan opportunity to ask questions about andcomment upon the budget document.

(2) When more than one meeting of thebudget committee is held under subsection(1) of this section, the first meeting shall bethe meeting at which the budget messageand the budget document are received by thebudget committee. The budget committeemay provide members of the public with anopportunity to ask questions about and com-ment upon the budget document at the firstmeeting of the budget committee. If such op-portunity is not provided at the first meeting,the budget committee shall provide the pub-lic with the opportunity to ask questions andmake comments upon the budget documentat subsequent meetings.

(3) The budget officer shall publish priornotice of each meeting of the budget com-mittee held for the purpose of satisfying therequirements of subsection (1) of this section.The published notice shall contain the infor-mation required under subsection (4) of thissection. However:

(a) If more than one meeting of the bud-get committee is held for the purpose ofmeeting the requirements of subsection (1)of this section, the budget officer may pub-lish a single notice containing the requiredinformation for all of the meetings to be heldfor the purpose of meeting the requirementsof subsection (1) of this section; and

(b) If the budget committee holds two ormore meetings under subsection (1)(b) of thissection for the purpose of taking questionsand comments from the public, then:

(A) Only notice of the first meeting heldfor the purpose of taking questions and com-

ments from the public need be published inaccordance with the requirements of thissubsection, and notice of any subsequentmeeting held for the purpose of taking ques-tions and comments from the public may begiven as provided in ORS 294.406 (2); and

(B) If notice is published for a meeting tobe held for the purpose of taking questionsand comments from the public and it is sub-sequently determined that the meeting is notneeded, notice of cancellation of the meetingshall be published as provided in ORS 294.406(2).

(4) A notice meets the requirements ofthis subsection when it states:

(a) The purpose, time and place of themeeting or meetings to which the notice re-lates and the place where the budget docu-ment is available;

(b) That the meeting is a public meetingwhere deliberations of the budget committeewill take place; and

(c) If the meeting described in the noticeis a meeting at which the budget committeewill receive questions and comments frommembers of the public, that any person mayask questions about and comment on thebudget document at that time.

(5) When notice of a meeting of the bud-get committee is published by publication ina newspaper, the notice satisfies the require-ments of this section if the notice is pub-lished on not fewer than two occasionsseparated by at least five days, with the firstpublication not earlier than 30 days prior tothe meeting date and the final publicationnot later than five days prior to the meetingdate. When notice of a meeting of the budgetcommittee is published by mailing or by handdelivery, the notice satisfies the require-ments of this section if the notice is placedwith the United States Postal Service orhand delivered not later than 10 days priorto the meeting date.

(6) At any time prior to the meeting ofthe budget committee at which the budgetcommittee will receive the budget messageand the budget document, the budget officermay provide a copy of the budget documentto each member of the budget committee forthe information and use of the individualmember.

(7) Except when copies of the budgetdocument were provided to the members ofthe budget committee under subsection (6) ofthis section, the budget officer shall submitto the members of the budget committee thebudget document at the first meeting heldunder subsection (1) of this section for theiruse and consideration.

(8) The budget officer shall file a copy ofthe budget document in the office of the



governing body of the municipal corporationimmediately following presentation of thebudget document to the members of the bud-get committee under subsection (6) or (7) ofthis section. The copy shall become a publicrecord of the municipal corporation.

(9) The governing body shall either pro-vide the means of duplicating the budget orpart thereof, in those situations where thebudget document or portion thereof may bequickly reproduced, or shall provide copiesof the budget document or part thereof sothat a copy of the budget document or partthereof may be readily obtained by any indi-vidual interested in the affairs of the munic-ipal corporation. [1963 c.576 §19; 1965 c.451 §5; 1971c.516 §2; 1989 c.504 §1; 1997 c.308 §13; 1999 c.632 §6]

294.405 [Repealed by 1953 c.306 §18]

294.406 Budget committee hearings;approval of budget document. (1) Thebudget committee shall approve the budgetdocument as submitted by the budget officeror the budget document as revised and pre-pared by the budget committee. The budgetdocument as approved by the budget com-mittee shall specify the ad valorem propertytax amount or rate for all funds.

(2) In addition to the meetings held underORS 294.401 (1), the budget committee maymeet from time to time at its discretion. Allmeetings of the budget committee shall beopen to the public. Except for a meeting ofthe budget committee held under ORS294.401 (1), prior notice of each meeting ofthe budget committee shall be given at thesame time as is required for notice of meet-ings of the governing body of the municipalcorporation and may be given in the samemanner as notice of meetings of the govern-ing body or by any one or more of the meth-ods described in ORS 294.311 (34).

(3) The budget committee may demandand receive from any officer, employee ordepartment of the municipal corporation anyinformation the committee requires for therevision and preparation of the budget docu-ment. The budget committee may compel theattendance of any such officer or employeeat its meetings. [1963 c.576 §20; 1965 c.451 §6; 1997c.308 §14; 1997 c.541 §336a; 1999 c.632 §7; 2001 c.104 §103;2001 c.135 §13]

294.410 [Repealed by 1963 c.576 §44]

294.411 Submission of budget docu-ment to tax supervising and conservationcommission in certain cases prior topublication and approval by budget com-mittee. (1) Each municipal corporation hav-ing a population not exceeding 200,000,located in a county having a tax supervisingand conservation commission and not sub-mitting its budget document to the taxsupervising and conservation commission fora public hearing, pursuant to ORS 294.430

(3), shall submit its approved budget docu-ment to the tax supervising and conservationcommission in the county at least 30 daysprior to the date of the public hearing in ac-cordance with ORS 294.430. If its territorylies in two or more counties, the municipalcorporation shall submit its budget to thecommission if the real market value of allproperty subject to taxation by the municipalcorporation in the county having a commis-sion is greater than the real market value ofall property subject to taxation by the mu-nicipal corporation in any other county. Realmarket value is the real market value com-puted according to ORS 308.207 from the as-sessment rolls last in the process ofcollection.

(2) Before adopting the budget, the gov-erning body for a municipal corporation de-scribed in subsection (1) of this section shallconsider and take appropriate action on anyorders, recommendations or objections madeby the tax supervising and conservationcommission. [1963 c.576 §21; 1969 c.155 §1; 1991 c.459§6; 1997 c.308 §15; 1999 c.632 §8]

294.413 Format for notices and sum-maries. Format for publication of noticesand summaries required by ORS 294.416 shallbe prescribed by the Department of Revenue.[1971 c.516 §9; 1983 c.549 §1; 1993 c.742 §46; 1997 c.308§16]

294.415 [Renumbered 294.425]

294.416 Publication of budget sum-mary, financial summary, statement ofaccounting basis, and notices of meetingand availability of budget document. Ex-cept as provided in ORS 294.418, there shallbe published, as provided in ORS 294.421:

(1) A summary of the budget as approvedby the budget committee and compared withthe actual expenditures and budget resourcesof the preceding year or preceding budgetperiod and the budget summary of the cur-rent year or current budget period in accor-dance with forms prescribed by theDepartment of Revenue in the manner pro-vided in ORS 294.413. The summary shall beof sufficient detail to inform the citizens ofthe municipal corporation of the proposed fi-nancial plan for the ensuing year or ensuingbudget period. As a minimum requirement,the personnel services, the major expenseitems under materials and services and capi-tal outlay for each organizational unit or ac-tivity of each fund and the major items fordebt service, special payments, and operatingcontingencies for each fund shall be listedseparately. The summary shall show themajor items of budget resources. As used inthis subsection, the term “program” may besubstituted for the term “organizationalunit” for municipal corporations which pre-pare program budgets.



(2) The financial summary prepared un-der ORS 294.386 for the ensuing year or en-suing budget period and for the current yearor current budget period.

(3) A notice of the time and place atwhich the budget document as approved bythe budget committee may be discussed withthe governing body.

(4) A statement that the budget is pre-pared in accordance with the basis of ac-counting used in the preceding year orpreceding budget period unless a change inthe basis of accounting is anticipated. If achange in the basis of accounting is to bemade, there shall be an explanation of thechange and the effects of the change.

(5) A notice of the place where the com-plete budget document is available for in-spection by the general public during regularbusiness hours and where copies of the com-plete budget document may be obtained.[Formerly 294.360; 1965 c.451 §7; 1971 c.516 §3; 1979 c.686§6; 1997 c.308 §17; 2001 c.135 §14]

294.418 Alternative budget publicationprocedure. In lieu of the publication re-quirements contained in ORS 294.416, a mu-nicipal corporation may elect to publish itsbudget as provided in this section.

(1) There shall be published, as providedin ORS 294.421, a summary of the budget asapproved by the budget committee and com-pared with the budget summary of the pre-ceding year or preceding budget period andthe budget summary for the current year orcurrent budget period. As a minimum re-quirement, there shall be listed the total re-quirements for personal services, materialsand services, capital outlay, special pay-ments, debt service, transfers and operatingcontingencies for the budget. In addition,there shall be published a brief narrative de-scription of the major activities or majorprograms of the municipal corporation andthe prominent changes from the current yearor current budget period. Information shallbe furnished showing the personnel require-ment changes for each major activity or ma-jor program. The narrative shall state themajor resources for financing each major ac-tivity or program and the prominent changesfrom the current year or current budget pe-riod, or shall state that each major activityor program is financed from general re-sources of the governmental unit. The sum-mary for the ensuing year or ensuing budgetperiod and for the current year or currentbudget period shall show total budgeted re-quirements, total estimated resources otherthan ad valorem property taxes and esti-mated ad valorem property tax revenues,stated in dollars and cents. The summaryshall also state the municipal corporation′soperating tax rate and the amount or rate of

any other ad valorem property taxes to becertified to the assessor. Tax rates shall beexpressed at a rate per thousand dollars ofassessed value. The summary shall includean analysis of ad valorem property taxes forthe current and ensuing years or budget pe-riods that are outside of the municipal cor-poration′s permanent rate limit or statutoryrate limit, if applicable, showing local optiontaxes and ad valorem property taxes formeeting payments on bond, principal and in-terest thereon and for meeting other obli-gations of the municipal corporationdescribed under section 11 (5), Article XI ofthe Oregon Constitution.

(2) There shall be published with thesummary:

(a) A notice of the time and place atwhich the budget document as approved bythe budget committee may be discussed withthe governing body.

(b) A statement that the budget is pre-pared in accordance with the basis of ac-counting used in the preceding year orbudget period unless a change in the basisof accounting is anticipated; and if a changein the basis of accounting is to be made,there shall be an explanation of the changeand the effects of the change.

(c) A notice of the place where the com-plete budget document is available for in-spection by the general public during regularbusiness hours and where copies of the com-plete budget document may be obtained. [1971c.516 §5; 1979 c.686 §7; 1997 c.308 §18; 1997 c.541 §330;2001 c.135 §15]

294.420 [Renumbered 294.555]

294.421 Manner of publication; alter-native requirements in certain cases. (1)Subject to subsections (3) to (6) of this sec-tion, the summary of the budget documentapproved by the budget committee shall bepublished at least once prior to the time ap-pointed for the proposed meeting of the gov-erning body in accordance with ORS 294.430.

(2) Subject to subsections (3) to (6) of thissection, the notice of the time and place atwhich the budget document as approved bythe budget committee may be discussed shallbe published by one or more of the methodsdescribed in ORS 294.311 (34) not less thanfive days and not more than 30 days prior tothe date of the meeting required by ORS294.430.

(3) If no newspaper is published in themunicipal corporation, a municipal corpo-ration whose aggregate of estimated budgetexpenditures for the ensuing fiscal year doesnot exceed $50,000 or for the ensuing budgetperiod does not exceed $100,000 may, in lieuof the publication and notice provided insubsections (1) and (2) of this section and in



lieu of publication by one or more of themethods described in ORS 294.311 (34), postthe summaries and notices provided by ORS294.416 or 294.418 in three conspicuousplaces in the municipal corporation for atleast 20 days prior to the date of the meetingprovided in ORS 294.430 and publish the no-tice provided by subsection (4) of this sec-tion.

(4) If notice is given as provided in sub-section (3) of this section, the municipal cor-poration shall publish, by one or more of themethods described in ORS 294.311 (34), a no-tice of the following:

(a) The date, time and place of the meet-ing provided by ORS 294.430;

(b) The place where the complete budgetdocument is available for inspection by thegeneral public during regular office hours;

(c) Total budget requirements and taxesproposed to be levied;

(d) Changes in the amount or rate ofproposed ad valorem property taxes; and

(e) The place where copies of the com-plete budget or parts thereof may be ob-tained.

(5) The notice provided in subsection (4)of this section shall be published not lessthan five days and not more than 30 daysprior to the date of the meeting provided inORS 294.430.

(6) A municipal corporation having apopulation exceeding 200,000 inhabitants, ora municipal corporation with 200,000 orfewer inhabitants that requests the taxsupervising and conservation commission toconduct the public hearing outlined in ORS294.430, shall, in lieu of the publication andnotice prescribed in subsection (1) of thissection, submit its budget document, as ap-proved by the budget committee, to the taxsupervising and conservation commissionwithin its county, if there is such a commis-sion, at least 20 days prior to the legal dateof the public hearing before the tax super-vising and conservation commission on thebudget, and the budget document shallthereupon be open to inspection by any tax-payer or citizen. The municipal corporationshall also publish a notice as provided insubsections (4) and (5) of this section.[Formerly 294.365; 1965 c.451 §8; 1967 c.525 §1; 1969 c.155§2; 1971 c.516 §6; 1991 c.459 §7; 1997 c.308 §19; 1997 c.541§331; 1999 c.632 §9; 2001 c.104 §104; 2001 c.135 §16]

294.425 Sufficiency of publication ofbudget documents; notice to governingbody and assessor of publication error. (1)When a notice, budget summary or otherdocument is required to be published underany provision of ORS 294.305 to 294.565,publication of the document shall be consid-ered sufficient for all purposes if a good faith

effort is made by the budget officer of themunicipal corporation to publish by any oneor more of the methods described in ORS294.311 (34), notwithstanding any defect inthe publication, including but not limited to:

(a) Typographical or scriveners′ errors inthe published material;

(b) Failure of the published materials tobe mailed or hand delivered to each streetaddress within the jurisdictional boundariesof the municipal corporation;

(c) Arithmetic errors in computing nu-merical information, including tax levies ortax rates;

(d) Calculations of ad valorem propertytaxes not made in accordance with the ap-plicable requirements of law; or

(e) Failure to publish within the time pe-riods required by law.

(2) At the first regularly scheduled meet-ing of the governing body of the municipalcorporation that is held following the dis-covery of any publication error described insubsection (1)(a), (c) or (d) of this section, thebudget officer shall advise the governingbody in writing of the error and shall correctthe error by testimony before the governingbody at the meeting. If the error relates tothe calculation of ad valorem property taxes,the budget officer shall immediately notifythe county assessor of the error in writing,identifying the correct ad valorem propertytax. [Formerly 294.415; 1997 c.308 §20; 1997 c.541 §336b;1999 c.632 §10; 2001 c.104 §105; 2001 c.135 §17]

294.430 Hearing by governing body onbudget document as approved by budgetcommittee; alternative procedure in cer-tain cases. (1) Except as provided in sub-sections (2) and (3) of this section, thegoverning body of a municipal corporationshall meet at the time and place designatedin the notice of meeting required by ORS294.416 for the purpose of holding a publichearing on the budget document as approvedby the budget committee. At the meeting anyperson may appear for or against any item inthe budget document.

(2) Each municipal corporation having apopulation exceeding 200,000 and located ina county having a tax supervising and con-servation commission, shall, in lieu of themeeting provided for in subsection (1) of thissection, submit its budget document to thetax supervising and conservation commissionof the county. The governing body of suchmunicipal corporation or its representativesshall meet with the taxpayers thereof at apublic hearing to be called and conducted bythe tax supervising and conservation com-mission.

(3) Any municipal corporation having apopulation not exceeding 200,000 and located



in a county having a tax supervising andconservation commission, may, in lieu of themeeting provided for in subsection (1) of thissection, submit its budget document to thetax supervising and conservation commissionof the county for a public hearing. The gov-erning body of such municipal corporation orits representatives shall meet with the tax-payers thereof at a public hearing to becalled and conducted by the tax supervisingand conservation commission.

(4) If its territory lies in two or morecounties, a municipal corporation subject tosubsection (2) of this section shall, and amunicipal corporation subject to subsection(3) of this section may, submit its budgetdocument to the tax supervising and conser-vation commission for public hearing if thereal market value of all property subject totaxation by the municipal corporation in thecounty with a commission is greater than thereal market value of all property subject totaxation by the municipal corporation in anyother county. Real market value is the realmarket value computed according to ORS308.207 from the assessment rolls last in theprocess of collection. [1963 c.576 §24; 1969 c.155§3; 1991 c.459 §8; 1997 c.308 §21]

294.435 Governing body to adopt bud-get, make appropriations, declare andcategorize property tax amount or rate;greater tax, encumbrance or expenditurelimited; exception. (1) After the publichearing provided for in ORS 294.430 (1) hasbeen held, the governing body shall enact theproper ordinances or resolutions to adopt thebudget, to make the appropriations, to deter-mine, make and declare the ad valoremproperty tax amount or rate to be certifiedto the assessor for either the ensuing yearor each of the years of the ensuing budgetperiod and to itemize and categorize the advalorem property tax amount or rate as pro-vided in ORS 310.060. Consideration shall begiven to matters discussed at the publichearing. The budget estimates and proposedad valorem property tax amount or rate asshown in the budget document may beamended prior to adoption and may also beamended by the governing body followingadoption if such amendments are adoptedprior to the commencement of the fiscal yearor budget period to which the budget relates.However, the amount of estimated expendi-tures for each fund in an annual budget maynot be increased by more than $5,000 or 10percent of the estimated expenditures,whichever is greater, and the amount of es-timated expenditures for each fund in a bi-ennial budget may not be increased by morethan $10,000 or 10 percent of the estimatedexpenditures, whichever is greater, and theamount or rate of the total ad valorem prop-erty taxes to be certified by the municipal

corporation to the assessor may not exceedthe amount approved by the budget commit-tee:

(a) Unless the amended budget documentis republished as provided by ORS 294.416 or294.418 and 294.421 for the original budgetand another public hearing is held as pro-vided by ORS 294.430 (1); or

(b) Except to the extent ad valoremproperty taxes may be increased pursuant toORS 294.437.

(2) After the public hearing provided forin ORS 294.430 (2) or (3) has been held andthe certification of the tax supervising andconservation commission received, if suchcertification is required, the governing bodyshall enact the proper ordinances or resolu-tions to adopt the budget, to make the ap-propriations, to determine, make and declarethe ad valorem property tax amount or ratefor either the ensuing fiscal year or each ofthe fiscal years of the ensuing budget periodand to itemize and categorize the ad valoremproperty tax amount or rate as provided inORS 310.060. Consideration shall be givenany orders, recommendations or objectionsmade by the tax supervising and conserva-tion commission in accordance with law. Theaction taken on each order, recommendationor objection after such consideration by thegoverning body, with the reasons for suchaction, shall be included in the ordinance orresolution adopting the budget. A certifiedcopy of the ordinance or resolution shall besent to the commission within 15 days afterthe date the ordinance or resolution isadopted. The budget estimates, appropri-ations and ad valorem property tax amountor rate as shown in the budget documentmay be amended prior to adoption and mayalso be amended by the governing body fol-lowing adoption if such amendments areadopted prior to the commencement of thefiscal year or budget period to which thebudget relates. However, the amount of esti-mated expenditures for each fund may not beincreased by more than $5,000 or 10 percentof the estimated expenditures, whichever isgreater, the amount of estimated expendi-tures for each fund in a biennial budget maynot be increased by more than $10,000 or 10percent of the estimated expenditures,whichever is greater, and the amount or rateof the total ad valorem property taxes to becertified by the municipal corporation to theassessor may not exceed the amount shownin the budget document at the time of thebudget hearing:

(a) Unless the amended budget documentis resubmitted to the tax supervising andconservation commission for another publichearing, and for recommendations or ob-jections of that body; or



(b) Except to the extent ad valoremproperty taxes may be increased pursuant toORS 294.437.

(3) The appropriations required by sub-sections (1) and (2) of this section shall, as aminimum, contain one amount for each or-ganizational unit or program of each fund. Inaddition, separate amounts shall be appropri-ated in each fund for debt service, specialpayments, interfund revenue transfers, capi-tal outlay, operating expenses which cannotbe allocated to an organizational unit orprogram and operating contingencies. If thegoverning body so desires, it may appropriateseparate amounts for activities within an or-ganizational unit or program. For those mu-nicipal corporations where the term“organizational unit” has no application, theappropriations shall contain separateamounts for personal services, materials andservices, capital outlay, debt service, specialpayments, interfund revenue transfers andoperating contingency for each fund.

(4) Thereafter no greater expenditure, orencumbrance if encumbrance accounting isused, of public money shall be made for anyspecific purpose other than the amount ap-propriated therefor except as provided inORS 294.326, 294.440, 294.450 and 294.480.

(5) The determination of the amount orrate of ad valorem property taxes to be cer-tified shall be entered in the proper recordsof the governing body. Except as provided inORS 294.437, no greater tax than that so en-tered upon the record shall be certified bythe municipal corporation proposing the taxfor the purpose or purposes indicated.

(6) Nothing contained in this sectionshall preclude a governing body during thefiscal year or budget period by appropriateordinance or resolution, after public hearing,from adjusting budgeted resources and re-ducing appropriations to reflect a decrease inavailable resources.

(7)(a) The governing body shall deter-mine, make and declare ad valorem propertytaxes under subsections (1) and (2) of thissection as a rate per $1,000 of assessed valueif the taxes are operating taxes or rate-basedlocal option taxes as a rate per $1,000 of as-sessed value.

(b) The governing body shall determine,make and declare ad valorem property taxesunder subsections (1) and (2) of this sectionas an amount if the taxes are being certifiedas amount-based local option taxes, to payprincipal and interest on exempt bonded in-debtedness or to pay other government obli-gations described in section 11 (5), ArticleXI of the Oregon Constitution. [1963 c.576 §25;1965 c.451 §9; 1969 c.682 §1; 1971 c.516 §7; 1977 c.305 §2;1979 c.310 §5; 1979 c.686 §8a; 1993 c.270 §3; 1997 c.308 §22;

1997 c.541 §332; 1999 c.632 §11; 2001 c.135 §18; 2001 c.753§5; 2003 c.14 §145]

294.437 Local option tax approved af-ter adoption of budget; supplementalbudget. (1) Following the adoption of a bud-get under ORS 294.435 that does not includerevenue from a proposed local option tax, ifa municipal corporation places a local optiontax measure on the ballot for an electionheld in September and the electors of themunicipal corporation approve the measure,in order to impose the local option tax dur-ing the current fiscal year or current budgetperiod the governing body of the municipalcorporation must:

(a) Adopt an ordinance or resolution todetermine, make and declare the local optiontax and to categorize the local option taxamount or rate as provided in ORS 310.060;

(b) Receive from the assessor of thecounty in which the municipal corporation islocated (or, if the municipal corporation islocated in more than one county, from theassessor of each county in which the munic-ipal corporation is located) written approvalto file a supplemental notice of property taxas described in ORS 310.060 (9); and

(c) File with the assessor of the countyin which the municipal corporation is located(or, if the municipal corporation is located inmore than one county, with the assessor ofeach county in which the municipal corpo-ration is located) two copies of the ordinanceor resolution described in paragraph (a) ofthis subsection, two copies of the supple-mental notice of property tax required underORS 310.060 and two copies of the approvedlocal option tax measure.

(2) Following the adoption of a budgetunder ORS 294.435 that does not include re-venue from a proposed local option tax ortaxes to pay principal and interest on exemptbonded indebtedness, if a municipal corpo-ration places a local option tax measure ora general obligation bond measure on theballot for an election, other than an electionheld in September, next following adoptionof the budget and the electors of the munici-pal corporation approve the measure, in or-der to impose the tax during the secondfiscal year of a biennial budget period, thegoverning body of the municipal corporationmust:

(a) Adopt an ordinance or resolution todetermine, make and declare the tax and tocategorize the tax amount or rate as pro-vided in ORS 310.060; and

(b) Include with the certification requiredunder ORS 310.060 for the second fiscal yearof the biennial budget period, two copies ofthe ordinance or resolution described in par-agraph (a) of this subsection and two copies



of the approved local option tax measure orgeneral obligation bond measure.

(3) Funds raised by a local option tax de-scribed in this section may not be expendedby the municipal corporation unless the mu-nicipal corporation has adopted a supple-mental budget in accordance with ORS294.480. Funds may be expended only in ac-cordance with the supplemental budget soadopted.

(4) As soon as received, the county as-sessor shall forward one copy of each of thedocuments described in subsection (1)(c) ofthis section to the Department of Revenue.[2001 c.753 §4; 2007 c.350 §1]


294.440 School or community collegedistrict expending federal or state fundsin emergency. Whenever the board of di-rectors of any school district or the board ofeducation of any community college districthas declared the existence of an emergencynecessitating a greater expenditure of publicmoney for any specific purpose or purposesthan the amount appropriated therefor in or-der to provide or maintain and operate, orboth, adequate school or college facilities,supplies and personnel for the proper in-struction of the pupils who are attending orwill attend the public schools or collegewithin such district during the remainder ofthe budget year, such board may make excessexpenditures for such specific purpose orpurposes beyond the amount appropriatedtherefor to the extent that all funds for suchexcess expenditures are:

(1) Advanced or committed to such dis-trict by apportionment, grant, contributionor allocation from the United States, or anyagency thereof. In connection therewith, thedistrict may enter into and carry out anyplan of financing sponsored by the UnitedStates, or any agency thereof, upon suchterms and conditions and subject to suchlawful rules and regulations as may be pre-scribed by the United States, or a properagency thereof;

(2) Made available to a common or unionhigh school district by the education servicedistrict board from an emergency aid fundestablished under ORS 334.370. [1963 c.576 §26;1971 c.513 §58; 1983 c.740 §84]

294.443 Certain interest to be includedin budget; method. In the exercise of theauthority granted by ORS 287A.180, 328.565and 341.715, specific provision for interestmust be contained in duly adopted budgets.However, reporting of anticipated loan pro-ceeds and related principal repaymentswithin a particular fiscal year or budget pe-

riod may be accomplished in narrative formor by footnoted schedules to the duly adoptedbudget and need not be included as a budg-etary resource or requirement. Such narra-tive or footnoted disclosure must indicatethat principal repayments are a liability ofthe applicable fund from which they aremade. [1985 c.356 §3; 1993 c.97 §16; 2001 c.135 §19; 2007c.783 §120]

294.445 Basis of accounting used bymunicipal corporation; change of basis.(1) A municipal corporation shall record itsrevenues and expenditures, on a fund by fundbasis, using either the cash basis, the modi-fied accrual basis or the accrual basis of ac-counting.

(2) The selection of the basis of account-ing is left to the discretion of each municipalcorporation. Any change in the basis of ac-counting shall be clearly set forth in thebudget message for the fiscal year or budgetperiod in which the change is contemplatedand the reasons for the change and its effecton the operations of the municipal corpo-ration shall be explained. Once a new basisof accounting is adopted, it shall be followedin the year or period for which the budgetwas prepared and each succeeding year orperiod thereafter until changed in a subse-quent budget. Such change must be publishedas provided in ORS 294.416 (3). [1963 c.576 §28;1977 c.305 §3; 1997 c.308 §23; 2001 c.135 §20]

294.447 Inclusions in accrued revenuesof school districts, education service dis-tricts, community college districts andcommunity college service districts usingaccrual basis of accounting; State SchoolFund grant calculations. (1) As used inthis section “extended ADMw” means:

(a) For a school district the district ex-tended ADMw as calculated under ORS327.013.

(b) For an education service district thesum of the extended ADMw of the compo-nent school districts of the education servicedistrict.

(2) Notwithstanding ORS 294.445, aschool district or education service districtthat uses the accrual basis method of ac-counting may include as accrued revenues inthe budget and financial statement of theschool district or education service district,for any fiscal year, an amount from the nextfiscal year that is to be received in the nextfiscal year. The amount accrued under thissection may not be greater than the amountcalculated under subsection (3)(b) or (c) ofthis section multiplied by the extendedADMw of the school district or educationservice district.

(3)(a) For each fiscal year, the Depart-ment of Education shall calculate the



amount available in the State School Fundfor grants and distributions to school dis-tricts and the amount available for grantsand distributions to education service dis-tricts under ORS 327.008, 327.013 and 327.019based on the appropriations and allocationsmade to the State School Fund for that fiscalyear by the Legislative Assembly in regularsession. The department may not include inthe amount calculated to be available forschool districts under this paragraph theamounts received by the Youth CorrectionsEducation Program and the Juvenile De-tention Education Program under ORS327.026 from the State School Fund.

(b) The department shall calculate forschool districts an amount equal to (theamount calculated under paragraph (a) ofthis subsection for school districts ÷ 12) ÷the total statewide extended ADMw of allschool districts.

(c) The department shall calculate foreducation service districts an amount equalto (the amount calculated under paragraph(a) of this subsection for education servicedistricts ÷ 12) ÷ the total statewide ex-tended ADMw of all education service dis-tricts.

(d) The department may adjust the cal-culations under this subsection based oncurrent data for the factors used to calculatethe State School Fund distribution to schooldistricts and education service districts un-der ORS 327.008, 327.013 and 327.019.

(e) Notwithstanding paragraph (d) of thissubsection, the department may not adjustthe calculation under paragraph (a) of thissubsection based on changes made to the ap-propriations or allocations to the StateSchool Fund by the Legislative Assembly inspecial session or by rule of the Oregon De-partment of Administrative Services relatingto allotting funds.

(4) Notwithstanding ORS 294.445, a com-munity college district or community collegeservice district that uses the accrual basismethod of accounting may include as accruedrevenues in the budget and financial state-ment of the community college district orcommunity college service district, for anyfiscal year, an amount from the next fiscalyear that is to be received in the next fiscalyear. The amount accrued under this sectionmay not be greater than 25 percent of theamount the community college district orcommunity college service district receivedas a Community College Support Fund grantfor the fiscal year for which the revenues areto be accrued. [2002 s.s.4 c.1 §5; 2003 c.96 §§1,2]


294.450 Transfers of appropriationswithin fund or from one fund to another;appropriation of pass-through revenues.Subject to the provisions contained in thecharter of any city or county or in any lawrelating to municipal corporations:

(1) Except as provided in subsection (2)of this section, transfers of appropriationsmay be made within a given fund when au-thorized by official resolution or ordinanceof the governing body. The resolution or or-dinance shall state the need for the transfer,the purpose for the authorized expenditureand the amount of appropriation transferred.

(2) Transfers of general operating contin-gency appropriations which in aggregateduring a fiscal year or budget period exceed15 percent of the total appropriations of thefund may be made only after adoption of asupplemental budget prepared for that pur-pose. All other transfers of general operat-ing contingencies are subject to subsection(1) of this section.

(3) Transfers of appropriations or of ap-propriations and a like amount of budget re-sources may be made from the general fundof the municipal corporation to any otherfund when authorized by an official resolu-tion or ordinance of the governing body. Theresolution or ordinance shall state the needfor the transfer, the purpose for the author-ized expenditures embodied in the appropri-ation and the amount of appropriationtransferred.

(4) It shall be unlawful to transfer ap-propriations from any special revenue fundto the general fund or any other special re-venue fund.

(5) The transfers referred to in this sec-tion apply to transfers which occur after thebudget has been approved and which aremade during the fiscal year or budget periodfor which the appropriations are made.Nothing in this section shall prohibit or reg-ulate lawful transfers which have beenbudgeted in accordance with the local budgetlaw.

(6) When a municipal corporation im-poses taxes, fees or charges that, in accor-dance with applicable law or anintergovernmental agreement under ORSchapter 190, are required to be paid, on apass-through basis, to another municipal cor-poration, the municipal corporation that im-poses the taxes, fees or charges shall includethe taxes, fees or charges in its budget andshall appropriate the estimated amount gen-erated thereby. The appropriation shall takethe form of an expense of the municipal cor-poration that imposes the taxes, fees orcharges. If the actual amount collected fromthe taxes, fees or charges during a fiscal yearor budget period exceeds the estimated



amount included in the imposing municipalcorporation′s budget for the fiscal year orbudget period, then upon determining thatsuch excess exists the municipal corporationimposing the taxes, fees or charges shall ap-propriate such excess by means of a resolu-tion or ordinance of its governing body, andno further action shall be required underORS 294.305 to 294.565 to lawfully budget,appropriate or expend such excess. [1963 c.576§27; 1975 c.569 §1; 1979 c.310 §6; 1997 c.308 §24; 1999 c.632§12; 2001 c.135 §21]

294.455 Authorization to expend orborrow moneys after destruction ofproperty or natural disaster; authori-zation by chief executive officer to pro-tect public health or safety. If property hasbeen involuntarily converted or destroyedduring the current year or current budgetperiod or if, as a result of civil disturbance,fire, flood, earthquake or other calamity ornatural disaster, it is necessary for a munic-ipal corporation to expend funds, receivegrants or borrow moneys that were not in-cluded in the budget for the current year orcurrent budget period, authorization of allmatters necessary in order for the municipalcorporation to receive those grants or bor-row those moneys may be made by ordinanceor resolution of the governing body, and ap-propriations for the estimated expendituresout of any source of available funds, includ-ing but not limited to unappropriated fundbalances, shall be made by resolution or or-dinance in the same manner as provided inORS 294.450 (1), or by supplemental budgetas provided by ORS 294.480 (3) and (4). Whenprompt action is necessary to protect thepublic health or safety following the invol-untary conversion or destruction of propertyor the occurrence of a calamity or naturaldisaster and if it is not practical to convenea meeting of the governing body of the mu-nicipal corporation, the chief executive offi-cer of the municipal corporation may, bywritten order, authorize the immediate ex-penditure of funds from any available sourceto redress the situation that threatens thepublic health or safety. [1963 c.576 §27a; 1965 c.451§10; 1991 c.573 §2; 1997 c.308 §25; 2001 c.135 §22]

294.460 Loans from one fund to an-other; commingling cash balances offunds. (1) It shall be lawful to loan moneyfrom any fund to any other fund of the mu-nicipal corporation whenever the loan is au-thorized by official resolution or ordinanceof the governing body. The loans shall bemade in compliance with the applicable re-quirements and limitations of this section.Loans made under this section shall not bemade from:

(a) Debt service reserve funds created toprovide additional security for outstanding

bonds or other borrowing obligations thatthe municipal corporation has covenantedwith the holders of such bonds or other bor-rowing obligations to maintain at certainspecified levels. However, nothing in thisparagraph is intended or shall be construedto prohibit loans from any such debt servicereserve fund to the extent that the aggregateoutstanding amount of the loans does notexceed the amount by which the amount insuch debt service reserve fund exceeds theamount the municipal corporation has cove-nanted to maintain in the reserve fund withthe holders of the related bonds or otherborrowing obligations;

(b) Debt service funds created to accountfor moneys needed to make annual debt ser-vice payments on outstanding bonds or otherborrowing obligations; or

(c) Moneys credited to any fund when,under applicable constitutional provisions,the moneys are restricted to specific usesunless the purpose for which the loan is tobe made is a use allowed under such consti-tutional provisions.

(2) The resolution or ordinance authoriz-ing any interfund loan permitted under thissection shall:

(a) State the fund from which the loan isto be made, the fund to which the loan is tobe made, the purpose for which the loan isto be made and the principal amount of theloan.

(b) If the interfund loan is a capital loan,set forth a schedule under which the princi-pal amount of the loan, together with inter-est thereon at the rate provided for inparagraph (c)(B) of this subsection, is to bebudgeted and repaid to the lending fund. Theschedule shall provide for the repayment infull of the loan over a term not to exceedfive years from the date the loan is made.

(c) If the interfund loan is a capital loan,provide that the loan shall bear interest atan annual rate equal to:

(A) The rate of return on moneys in-vested in the local government investmentpool under ORS 294.805 to 294.895, as re-ported under ORS 294.875, immediately priorto the adoption of the ordinance or resolu-tion authorizing the loan; or

(B) Such other rate as the governingbody may determine.

(d) If the interfund loan is an operatingloan, provide that the money loaned shall bebudgeted and repaid to the fund from whichthe money was borrowed by the end of theensuing year or ensuing budget period.

(3) The payment of any operating loansnot repaid in the year or budget period inwhich the operating loan was made shall be



budgeted as a requirement in the ensuingyear or ensuing budget period.

(4) It shall be lawful to commingle cashbalances of funds so long as all such fundmoneys are segregated in the budget and ac-counting records.

(5) As used in this section:(a) “Capital loan” means any interfund

loan, or portion thereof, made for the pur-pose of financing the design, acquisition,construction, installation or improvement ofreal or personal property and not for thepurpose of paying operating expenses.

(b) “Operating loan” means any interfundloan, or portion thereof, that is not a capitalloan, including any interfund loan, or portionthereof, made for the purpose of paying op-erating expenses. [1963 c.576 §§27b,27c; 1979 c.310§7; 1999 c.632 §13; 2001 c.135 §23]

294.465 [1963 c.576 §29; repealed by 1999 c.632 §30]

294.470 Internal service funds. (1) Amunicipal corporation may establish by ordi-nance or resolution one or more internalservice funds. The ordinance or resolutioncreating the fund shall set forth in detail thefollowing:

(a) The appropriation or appropriationsto be charged in order to provide the initialmoney for financing the fund;

(b) The object or purpose of the fund;(c) The methods for controlling of ex-

penditures and encumbering of such funds;and

(d) The sources from which the fund shallbe replenished.

(2) No person shall expend or encumberor authorize expenditure or encumbrancefrom funds created in accordance with sub-section (1) of this section in excess of thebalance of that fund, or for a purpose forwhich there is no appropriation or source ofreimbursement authorized at that time.

(3) The anticipated expenditure for theensuing year or ensuing budget period froman internal service fund created in accor-dance with subsection (1) of this sectionshall be budgeted as any other fund in ac-cordance with ORS 294.305 to 294.565, ap-propriations shall be made for each internalservice fund in accordance with ORS 294.435and expenditures from the internal servicefund shall be regulated thereby.

(4) Notwithstanding the limitations inORS 294.305 to 294.565 applicable to increas-ing the appropriations of funds during thecurrent year or current budget period, thegoverning body may increase appropriationsof the internal service funds by ordinance orresolution.

(5) The charges for services shall becomputed to cover all costs for such servicesand the charges shall be periodically revisedto eliminate any element of profit or loss.[1963 c.576 §30; 1975 c.319 §1; 1997 c.308 §26; 2001 c.135§24]

294.475 Elimination of unnecessaryfund; disposition of balance. Subject to theprovisions contained in the charter of anycity or county or in any law relating to mu-nicipal corporations, when the necessity formaintaining any fund of the municipal cor-poration has ceased to exist and a balanceremains in the fund, the governing body shallso declare by ordinance or other order andupon such declaration such balance shallforthwith be transferred to the general fundof the municipal corporation unless otherprovisions have been made in the originalcreation of the fund. [1963 c.576 §31]

294.480 Supplemental budget in cer-tain cases; no increase in property taxespermitted. (1) Notwithstanding require-ments as to estimates of and limitation onexpenditures, the governing body of any mu-nicipal corporation may make a supplementalbudget for the fiscal year or budget periodfor which the regular budget has been pre-pared under one or more of the followingcircumstances:

(a) An occurrence or condition which hadnot been ascertained at the time of the prep-aration of a budget for the current year orcurrent budget period which requires achange in financial planning.

(b) A pressing necessity which was notforeseen at the time of the preparation of thebudget for the current year or current bud-get period which requires prompt action.

(c) Funds were made available by anotherunit of federal, state or local government andthe availability of such funds could not havebeen ascertained at the time of the prepara-tion of the budget for the current year orcurrent budget period.

(d) A request for services or facilities,the cost of which shall be supplied by a pri-vate individual, corporation or company orby another governmental unit and theamount of the request could not have beenaccurately ascertained at the time of thepreparation of the budget for the currentyear or current budget period.

(e) Proceeds from the involuntary de-struction, involuntary conversion, or sale ofproperty has necessitated the immediate pur-chase, construction or acquisition of differentfacilities in order to carry on the govern-mental operation.

(f) Ad valorem property taxes are re-ceived during the fiscal year or budget periodin an amount sufficiently greater than the



amount estimated to be collected that thedifference will significantly affect the levelof government operations to be funded bythose taxes as provided in the budget for thecurrent year or current budget period.

(g) A local option tax described in ORS294.437 is certified for extension on the as-sessment and tax roll under ORS 310.060 forthe fiscal year or budget period in which thelocal option tax measure is approved by vot-ers.

(2) A supplemental budget may not ex-tend beyond the end of the fiscal year orbudget period during which it is submitted.

(3) When the estimated expenditurescontained in a supplemental budget for a fis-cal year or budget period differ by less than10 percent of any one of the individual fundscontained in the regular budget for that fis-cal year or budget period that is beingchanged in the supplemental budget, thegoverning body of the municipal corporationmay adopt the supplemental budget at a reg-ular meeting of the governing body. Noticeof such regular meeting, including sufficientdetail on revenues and expenditures, shall bepublished by one or more of the methodspermitted under ORS 294.311 (34) not lessthan five days prior to the meeting. Follow-ing such meeting, the governing body shallmake additional appropriations and maythereafter make additional expenditures asauthorized by such appropriations.

(4) When the estimated expenditurescontained in a supplemental budget for a fis-cal year or budget period differ by 10 percentor more of any one of the individual fundscontained in the regular budget for that fis-cal year or budget period that is beingchanged in the supplemental budget, thesupplemental budget, or a summary thereof,shall be published, or, in counties having atax supervising and conservation commis-sion, shall be submitted to the tax supervis-ing and conservation commission within thecounty. The governing body, or, where ap-plicable, the tax supervising and conserva-tion commission shall then hold a publichearing on the supplemental budget. Publi-cation of the budget and notice of the hear-ing shall be given in the manner provided inORS 294.421. Following such hearing, thegoverning body shall make additional appro-priations and may thereafter make additionalexpenditures as authorized by such appropri-ations.

(5) Except as provided in ORS 294.437,the making of a supplemental budget doesnot authorize the governing body to increasethe municipal corporation′s total ad valoremproperty taxes above the amount or ratepublished with the regular budget and certi-fied to the assessor under ORS 310.060 in

conjunction with the regular budget for thefiscal year or for each fiscal year of thebudget period to which the supplementalbudget applies. [1963 c.576 §32; 1979 c.689 §1; 1991c.459 §9; 1991 c.573 §1; 1993 c.270 §5; 1997 c.308 §27; 1997c.541 §333; 1999 c.632 §14; 2001 c.104 §106; 2001 c.135 §25;2001 c.753 §6]

294.483 Supplemental budget not re-quired in certain cases. A municipal cor-poration is not required to adopt asupplemental budget to:

(1) Expend during the current year orcurrent budget period proceeds of the sale ofthe following bonds or other obligations:

(a) Bonds that are issued under ORS287A.150 and for which the referral perioddescribed in ORS 287A.150 ended after thepreparation of the budget for the currentyear or current budget period.

(b) Bonds or other obligations that wereapproved by the electors during the currentyear or current budget period.

(c) Bonds or other obligations issuedduring the current year or current budgetperiod to refund previously issued bonds orobligations.

(2) Expend during the current year orcurrent budget period other funds to pay theprincipal and interest coming due on bondsor other obligations listed in subsection (1)of this section.

(3) Expend assessments or other revenuesto redeem bonds or other obligations that arepayable from the assessments or other re-venues, when the assessments or other re-venues are received as a result ofprepayments or other unforeseen circum-stances. [1993 c.97 §4; 1995 c.333 §9; 1997 c.308 §28;2001 c.135 §26; 2003 c.195 §26; 2005 c.443 §28; 2007 c.783§121]

294.485 Tax certification contrary tolaw voidable by Oregon Tax Court; appealprocedure. (1) Any ad valorem property taxmade contrary to the provisions of ORS294.305 to 294.565 or any other law relatingto the making of tax levies shall be voidableas provided in subsection (2) of this sectionand ORS 310.070.

(2) The county assessor, county court,board of county commissioners, the Depart-ment of Revenue, tax supervising and con-servation commission or 10 or moreinterested taxpayers may appeal to the regu-lar division of the Oregon Tax Court andsuch appeal shall be perfected in the follow-ing manner only:

(a) Within 30 days after the certificationof ad valorem property taxes is filed with thecounty assessor under ORS 310.060, the ap-pealing party shall file a complaint with theclerk of the tax court at its principal officein Salem, Oregon. Such filing in the tax



court shall constitute the perfection of theappeal. Service upon the Department of Re-venue shall be accomplished by the clerk ofthe tax court filing a copy of the complaintwith the Director of the Department of Re-venue and with the secretary or clerk of themunicipal corporation. When a complaint isfiled under this section by 10 or more inter-ested taxpayers, if following perfection of thecourt′s jurisdiction to hear the case:

(A) One or more of the taxpayers with-draws from the proceedings, and five or moreof the taxpayers do not withdraw, the courtshall nevertheless retain jurisdiction to hearthe matter; or

(B) One or more of the taxpayers with-draws from the proceedings, and fewer thanfive of the taxpayers remain parties and donot withdraw, the court shall not retain ju-risdiction to hear the matter but shall dis-miss the case with prejudice.

(b) The complaint shall state the factsand the grounds upon which the plaintiffcontends the tax should be voided or modi-fied. The case shall proceed thereafter in themanner provided in ORS 305.405 to 305.494.

(3) If the tax court finds that the budgetand the tax certification in question were notprepared and made in substantial compliancewith ORS 294.305 to 294.565 and any otherapplicable law relating to the making of advalorem property taxes, it shall declare voidor modify any such tax and shall direct thatsuch action be taken, all as in the circum-stances it shall deem appropriate. [1963 c.576§33; 1967 c.78 §12; 1977 c.250 §1; 1993 c.270 §6; 1995 c.79§103; 1995 c.650 §101; 1997 c.541 §334; 1999 c.340 §7; 1999c.632 §15; 2005 c.225 §1]

294.490 Department of Revenue not tointerfere with fiscal policy of municipalcorporation. The department′s authoritypursuant to ORS 294.495 to 294.510 shall belimited to obtaining compliance with ORS294.305 to 294.565 and shall not interfere inany way with the fiscal policy of a municipalcorporation as established by its governingbody or budget committee. [1963 c.576 §34c]

294.495 Department of Revenue toconstrue Local Budget Law; rules. Not-withstanding ORS 294.695, the Departmentof Revenue shall:

(1) Construe ORS 294.305 to 294.565 andany other law relating to the making of taxlevies when requested by any interested per-son or by any officer acting under such lawsand shall instruct such officers as to theirduties under such laws. Such officers shallsubmit to the department all questions aris-ing with them which affect the constructionof laws of this state relating to local budget-ary procedures.

(2) Make such rules and regulations andprescribe such forms as it considers properto effectually carry out the purposes of ORS294.305 to 294.565 or any other law relatingto the making of tax levies. [1963 c.576 §34]

294.500 Declaratory ruling by Depart-ment of Revenue as to its rules underLocal Budget Law. The Department of Re-venue may, on petition by 10 interested tax-payers or municipal corporation, issue adeclaratory ruling with respect to the valid-ity or applicability to any person, municipalcorporation or state of facts of any rule orregulation promulgated by it. The departmentshall prescribe by rule the form, content andprocedure for submission, consideration anddisposition of such petitions. Full opportunityfor hearing shall be afforded to interestedparties. A declaratory ruling shall bind thedepartment and all parties to the proceedingson the state of facts alleged, unless it is al-tered or set aside by a court. A ruling shallbe subject to review in the Oregon Tax Courtin the manner provided by ORS 294.515 andshall be subject to the same limitations asappeals provided in ORS 294.515. [1963 c.576§34d]

294.505 Division of Audits to issue no-tification of budgetary irregularities; De-partment of Revenue to advise municipalcorporation of correct procedures. (1) TheDivision of Audits created by ORS 297.020shall notify the municipal corporation andDepartment of Revenue of any irregularitiesin the budget procedure of the municipalcorporation which is brought to its attentionin the audits prepared by the division orbrought to its attention in audits which arerequired to be filed with the division.

(2) If the Department of Revenue findsfrom the information submitted by the Divi-sion of Audits pursuant to subsection (1) ofthis section that ORS 294.305 to 294.565 havenot been followed, the Department of Re-venue shall order the municipal corporationto correct its procedures in the preparationof its subsequent budgets. The order shall setforth the irregularities and the steps neces-sary to prevent such irregularities from hap-pening in the future. Such order shall be apublic record. [1963 c.576 §34a]

294.510 Order for revision of budget-ary procedures; enforcement. (1) The De-partment of Revenue may order a municipalcorporation to revise its budget proceduresto conform with ORS 294.305 to 294.565 whenirregularities in the procedures of the mu-nicipal corporation are called to its atten-tion.

(2) The Department of Revenue may re-quire the municipal corporation in its orderto file for inspection a copy of the budget



document at any stage in the procedure ofthe budget preparation.

(3) If the municipal corporation or officeror employee thereof neglects or refuses tocomply with the department order, the de-partment may apply to the judge of the Ore-gon Tax Court for an order returnable withinfive days from the date thereof, to compelsuch municipal corporation, public officer oremployee to comply with such order or toshow cause why the order should not becomplied with.

(4) Any order issued by the judge pursu-ant to subsection (3) of this section may beappealed from as provided by ORS 305.445,except that the appeal shall be filed within10 days of the entering of the order. The Su-preme Court shall hear and determine theappeal expeditiously, as may be appropriatefor the timely and orderly completion of thebudgetary process of the municipal corpo-ration and the extension of its levy upon theassessment and tax roll.

(5) The remedy provided in this sectionis cumulative and shall not preclude the de-partment from exercising any power or rightotherwise provided by law. [1963 c.576 §34b; 1977c.221 §1]

294.515 Appeal by municipal corpo-ration from Department of Revenue or-der. Any municipal corporation aggrieved byand directly affected by an order of the De-partment of Revenue relating to the prepara-tion of budgets or the extension of any taxlevy may appeal to the Oregon Tax Court inthe manner provided by ORS 305.404 to305.560. [1963 c.576 §33a; 1979 c.689 §2; 1995 c.650 §102]

294.520 Priority of appeals under LocalBudget Law. The appeal filed with the Ore-gon Tax Court pursuant to ORS 294.485,294.500 and 294.515 shall have priority overall other cases pending before the OregonTax Court and shall be heard and decided assoon after coming to issue as is reasonablypossible. [1963 c.576 §33b]

294.525 Reserve fund established with-out vote; review of need for reserve fund;unexpended balances; application to sys-tem development charges. (1) Any munici-pal corporation, by ordinance or resolutionof its governing body, may establish one ormore reserve funds to hold moneys to be ac-cumulated and expended for the purposesspecified in ORS 280.050, without submittingthe question of establishing the reserve fundto a vote of the electors. The municipal cor-poration may cause to be credited to any re-serve fund all or any portion of the revenuesderived from taxes levied under ORS 280.060and any other taxes, charges or revenues asthe governing body may determine. The mu-nicipal corporation may also limit the cred-

iting of such taxes, charges or revenues to areserve fund to a specific period of time des-ignated by the governing body.

(2) Not less frequently than every 10thanniversary of the date upon which a reservefund is established under subsection (1) ofthis section, the governing body of the mu-nicipal corporation shall review the reservefund and determine whether the fund will becontinued or abolished. When the governingbody determines, by resolution, that it is nolonger necessary to maintain such a reservefund:

(a) Commencing with the next succeedingfiscal year, the political subdivision shalldiscontinue the levy of any taxes under ORS280.060 that would otherwise be required tobe credited to such fund; and

(b) There shall be transferred to the gen-eral fund or any other fund of the politicalsubdivision that the governing body deter-mines is appropriate:

(A) Any unexpended balance in the fundto be abolished that is not required to beheld for subsequent expenditure for the pur-poses for which the fund was established;and

(B) Any subsequent receipts from taxlevies that are otherwise required to becredited to such fund, together with anypenalties and interest thereon.

(3) This section does not apply to systemdevelopment charges imposed under ORS223.297 to 223.314, and no system develop-ment charges shall be credited to any reservefund established under this section. [1997 c.308§2; 1999 c.632 §16]

294.555 Filing copy of budget and cer-tain documents with county assessor andDepartment of Revenue. (1) On or beforeJuly 15 of each year, or upon such other dateas the Department of Revenue shall desig-nate, each civil subdivision in the state thatdoes not levy an ad valorem property tax,that is subject to the Local Budget Law andthat prepares an annual budget shall filewith the Department of Revenue a copy ofthe resolution adopting the budget and of theresolution making appropriations.

(2) On or before July 15 of the first fiscalyear of the budget period, or upon such otherdate as the Department of Revenue shalldesignate, each civil subdivision in the statethat does not levy an ad valorem propertytax, that is subject to the Local Budget Lawand that prepares a biennial budget shall filewith the Department of Revenue a copy ofthe resolution adopting the budget and of theresolution making appropriations.

(3) Each municipal corporation subject tothe Local Budget Law that certifies an advalorem property tax shall file with the



county assessor as provided in ORS 310.060the following:

(a) Two copies each of the notice re-quired to be filed under ORS 310.060 and thecategorization certification.

(b) Two copies of a statement confirmingthe ad valorem property taxes approved bythe budget committee.

(c) Two copies each of the following or-dinances or resolutions: to adopt the budget;to make the appropriations; to itemize andcategorize the taxes; and to certify the taxes.

(4) As soon as received, the county as-sessor shall forward one copy of each of thedocuments listed in subsection (2) of thissection to the Department of Revenue.

(5) Each civil subdivision and municipalcorporation that is subject to the Local Bud-get Law shall retain a true copy of its budgetfor, if an annual budget is prepared, twoyears following the end of the fiscal year or,if a biennial budget is prepared, two budgetperiods following the budget period for whichthe biennial budget was prepared. Duringthis period, the civil subdivision or municipalcorporation shall send a copy of the budgetto the county assessor, Department of Re-venue or the Division of Audits if requestedto do so by one of those entities. [Formerly294.420; 1965 c.451 §11; 1973 c.333 §1; 1977 c.884 §2; 1985c.319 §1; 1995 c.79 §104; 1997 c.154 §4; 1997 c.541 §336;2001 c.135 §27]

294.565 Failure to file copy of requiredbudget, reports or other documents; ef-fect. If any city shall fail to file its docu-ments or reports required by ORS 294.555 or297.405 to 297.555 with the Department ofRevenue or Secretary of State, as the casemay be, within 30 days after a requesttherefor has been made by certified mail tothe city, the Department of Revenue or Sec-retary of State may certify to the officer re-sponsible for disbursing funds to cities underORS 323.455, 366.785 to 366.820 and 471.810the fact of such failure to file the documentsor reports. Notwithstanding the require-ments under ORS 323.455, 366.785 to 366.820and 471.810 for prompt payment of funds duea city, such officer shall withhold paymentto the city of any funds ordinarily payable toit under ORS 323.455, 366.785 to 366.820 and471.810 until notified by the Department ofRevenue or Secretary of State that the re-quired document or report has been receivedas required by law. A copy of such certifica-tion and request shall be furnished the de-linquent city. [1973 c.252 §1; 1977 c.774 §18; 1979 c.286§5]

TAX SUPERVISING ANDCONSERVATION COMMISSION

294.605 Definitions for ORS 294.605 to294.705. As used in ORS 294.605 to 294.705,unless the context otherwise requires:

(1) “Commission” means the tax super-vising and conservation commission.

(2) “Commissioner” means a member ofthe tax supervising and conservation com-mission.

(3) “Municipal corporations” means thecounty, and any city, town, port, school dis-trict, union high school district, road district,irrigation district, water district, dock com-mission, and all other public and quasi-publicmunicipal corporations that have power tolevy a tax within the county.

(4) “Levying board” means the commoncouncil, board of commissioners, board of di-rectors, county court or other managingboard of the county, or of any city, town,port, school district, union high school dis-trict, road district, irrigation district, waterdistrict, dock commission, and of all otherpublic or quasi-public corporations that havepower to levy a tax within the county.

(5) “County court” means the countycourt or board of county commissioners ofthe county.

(6) “Fiscal year” means the calendar yearending on December 31, or any period of 12months ending during the calendar year onthe last day of any month other than De-cember.

(7) “Assessor” means the county assessoror other officer charged by law with the dutyof extending taxes upon the assessment andtax roll.

(8) “Current year” means the presentyear.

294.608 Populous counties; commis-sion establishment or financial summarypublication. (1) The governing body of eachcounty with a population of 500,000 or moreinhabitants, based on the most recentlyavailable data published or officially providedby the Portland State University PopulationResearch Center, shall elect to:

(a) Seek to establish a tax supervisingand conservation commission under ORS294.710; or

(b) Require each municipal corporationto submit to the county a copy of the finan-cial summary prepared under ORS 294.386and made available to the public under ORS294.401 (9).

(2) Each municipal corporation requiredto submit a copy of the financial summaryof the municipal corporation shall complywith the requirement prior to the date of the



first budget committee meeting of the mu-nicipal corporation under ORS 294.401.

(3) The copy of the financial summarysubmitted to the county under this sectionshall be in an electronic format that is com-patible with Internet publication. The countyshall publish all financial summaries re-ceived from municipal corporations underthis section on the Internet website of thecounty. [2005 c.750 §7]

294.610 Tax supervising and conserva-tion commission; members; appointment;qualifications; term; removal; filling va-cancies. (1) A tax supervising and conserva-tion commission shall consist of fivemembers appointed by the Governor. Thecommissioners appointed shall be citizens ofthe United States and of Oregon and resi-dents in the county for which they are ap-pointed and shall be electors therein. Thecommissioners shall serve wholly withoutcompensation.

(2) Unless sooner removed by the Gover-nor, as provided in this section, the commis-sioners shall hold office for a term of fouryears and until their successors are ap-pointed and qualified. The term of office ofthe members of the commission shall com-mence on January 1.

(3) The Governor may, for good and suf-ficient cause, remove any commissioner atany time and appoint a successor.

(4) In case of death, resignation or ina-bility of any member of the commission toserve, or of removal of any member of thecommission from office, the Governor shallmake an appointment to fill the balance ofthe unexpired term of that commissioner.[Amended by 1961 c.644 §2; 1973 c.61 §2; 1991 c.80 §1; 2005c.750 §3]

294.615 Oath of commissioner. Beforetaking office each commissioner shall takeand subscribe the following oath, before anofficer qualified to administer oaths, in sub-stantially the following form:__________________________________________

State of Oregon )) ss.

County of )I, , being first duly sworn,

depose and say that for the term of year (s), to which I have been appointed asa member of the tax supervising and conser-vation commission for County, Iwill faithfully and impartially discharge theduties of my said office; that I will supportthe Constitution of the United States and theConstitution of the State of Oregon and alllaws passed in pursuance of either; that Iwill endeavor to secure economical expendi-ture of public funds sufficient in amount toafford efficient and economical administra-

tion of government in the county for whichI have been appointed, and in each city,town, port, school district, union high schooldistrict, road district, irrigation district, wa-ter district, dock commission and all othermunicipal corporations within the territoriallimits of my county; and that I will performsaid duty without fear, favor or compulsion,and without hope of reward.

Subscribed and sworn to before me this day of , 2 .

Notary Public of OregonMy commission expires .

__________________________________________

294.620 Office of commission; employ-ment and compensation of assistants. (1)The county court shall furnish an office inthe county courthouse or other convenientplace for the use of the commission, as isfurnished to other departments.

(2) The commission may employ and fixthe salaries of such clerks and other assis-tants as in their judgment shall seem meetand proper to keep the records of the com-mission and perform any other service towhich they may be assigned by the commis-sion. Such clerks and assistants shall bepaid out of the general fund of the county inthe same manner as other county officersand employees are paid.

294.625 Jurisdiction of commission.The commission shall have jurisdiction overall municipal corporations in the countysubject to the provisions of the Local BudgetLaw. If the territory of the municipal corpo-ration lies in two or more counties, the mu-nicipal corporation shall be within thejurisdiction of the commission if the realmarket value of all property subject to taxa-tion by the municipal corporation in acounty having a commission is greater thanthe real market value of property subject totaxation by the municipal corporation in anyother county. Real market value is the realmarket value computed according to ORS308.207 from the assessment rolls last in theprocess of collection. [Amended by 1961 c.678 §3;1965 c.451 §12; 1969 c.155 §4; 1981 c.623 §1; 1991 c.459 §10]

294.630 Tax supervising and conserva-tion commission account. There hereby iscreated an account to be known as the taxsupervising and conservation commission ac-count in the general fund of each countysubject to ORS 294.605 to 294.705. The taxsupervising and conservation commissionshall on or before April 1 of each year sub-mit certified budgets for the ensuing fiscalyear to the county court or board of countycommissioners. The budget shall contain a



complete and detailed estimate of the pro-posed expenditures of the commission for allpurposes. Following the receipt of the bud-get the county court or board of countycommissioners shall include the budget assubmitted as a part of the county budget andshall make an appropriation for the taxsupervising and conservation commission ac-count sufficient to cover the proposed ex-penditures, but no appropriation shall bemade in any county in any year for suchpurpose in excess of $280,000. The countycourt or board of county commissioners shallnot reduce the amount of the budget as pre-sented by the tax supervising and conserva-tion commission, within the amount stated inthis section, nor shall it refuse to approveany lawful request for disbursement ofmoney from the tax supervising and conser-vation commission account. [Amended by 1955c.263 §1; 1961 c.644 §1; 1969 c.363 §1; 1973 c.68 §1; 1975c.116 §1; 1977 c.88 §1; 1981 c.96 §1; 1985 c.228 §1; 1989c.222 §1; 1999 c.632 §20]

294.635 Submission of budget esti-mates by levying boards. (1) In eachcounty that has a tax supervising and con-servation commission, the levying boards ofall municipal corporations shall on or beforeMay 15 of each fiscal year or on or beforeMay 15 of the first fiscal year of a budgetperiod, submit their detailed estimates of thebudget deemed necessary to be expended bythe municipal corporations, respectively, forall purposes for the next ensuing fiscal yearor ensuing budget period. The tax supervis-ing and conservation commission may, if agood and sufficient reason exists therefor andif application is made to the commission inwriting, grant any municipal corporationsuch extension of time for filing its budgetas may seem to the commission just andreasonable.

(2) The budget estimates required by thissection to be filed with the commission shallbe in writing and shall be certified to ascorrect and shall be so prepared and ar-ranged as to show in plain and succinct lan-guage each particular item of proposedexpenditure. There shall be attached to eachbudget, and made a part thereof, the levyingboard′s estimate of the probable receipts ofthe municipal corporation from all othersources than direct tax levy and bond issuesduring the fiscal years for which the budgethas been prepared. The budget estimatesshall show in parallel columns the actualexpenditures for the two fiscal years nextpreceding the current year, the estimatedexpenditures for the current year and theestimated expenditures for the next ensuingfiscal year. [Amended by 1961 c.678 §4; 1963 c.576§37; 1977 c.431 §2; 1991 c.80 §2; 2001 c.135 §28; 2005 c.750§4]

294.640 Hearing on budget. Every levy-ing board shall be entitled to a hearing bythe commission upon the budget submittedby it. The commission shall set times andplaces for such hearings, which shall be opento the public. The commission shall give no-tice, in such form and manner as it shallprescribe, of such hearing to every levyingbody entitled to such hearing. The levyingboards shall meet with the commission atsuch times and places fixed by the commis-sion for such hearings and discuss the budgetwith the commission.

294.645 Consideration of budget bycommission; certifying objections or rec-ommendations to levying board; proce-dure where municipality holds hearing inplace of commission. (1) After the hearingshave been held the commission shall care-fully consider the proposed budgets and shallby majority vote of the members of the com-mission certify in writing to the levyingboard of any municipal corporation, on orbefore June 25 of each fiscal year, or on orbefore June 25 of the first fiscal year of abudget period, any objections which thecommission may have to the adoption of thebudget, or any item therein, or any recom-mendations which the commission may desireto make regarding the budget. If the com-mission does not desire to make any recom-mendations or objections, it shall certify thatfact to the levying board. The responsibilityof the commission shall be advisory only.

(2) Certification of a budget for a munic-ipal corporation holding its own hearingshall be made in the same manner as re-quired by subsection (1) of this section, ex-cept that any recommendations or objectionsshall be certified to the levying board priorto the date of the hearing. [Amended by 1961c.678 §5; 1963 c.576 §38; 1999 c.632 §17; 2001 c.135 §29]

294.650 Striking unauthorized itemsfrom budget; reducing total amount towithin limits permitted by law and Con-stitution. (1) If in the examination of anybudget of any municipal corporation thecommission finds that any item is an ex-penditure not authorized by law to be madeby the municipal corporation, the commis-sion may order the item to be stricken fromthe budget. The levying board of the munici-pal corporation thereupon shall strike theitem from the budget and shall not thereafterlevy any tax for the payment of the same.

(2) If, after the hearing, the commissionfinds that the total amount of the tax levyof any municipal corporation exceeds theamount permitted by law or any provision ofthe Constitution of this state to be levied bythe municipal corporation, the commissionshall order that the total amount of the bud-get be reduced to within the limits permitted



by law or constitutional limitation, and shallfile certified copies of such order with thecounty assessor and county clerk. The levy-ing board of the municipal corporationthereupon shall comply with the order of thecommission by so reducing the total amountof the budget.

294.655 Hearing on special tax leviesand bond issues proposed for elector ap-proval. The commission shall conduct publichearings on all special tax levies and bondissues proposed for elector approval by thelevying boards. Any levying board proposingto ask elector approval of a special tax levyor of a bond issue shall notify the commis-sion in writing of its proposal not less than30 days prior to the filing date for theelection and set forth its reasons therefor,but the commission in its discretion maypermit such notification to be filed in suchshorter period of time as it sees fit. Upon thereceipt of the notification the commissionshall fix the time and place of hearing andnotify the levying board to attend the hear-ing and discuss the proposed special tax levyor bond issue with the commission. Thehearings provided for in this section shall bein addition to the regular budget hearingsprovided for by ORS 294.640. [Amended by 1999c.632 §18]

294.660 Compiling information as toindebtedness; including in annual report.The commission shall compile accurate sta-tistical and other information as to bondedor other indebtedness within the county andof all municipal corporations within thecounty and shall keep a permanent recordthereof. The commission shall issue a state-ment thereof as of June 30 of each year, inthe annual report of the commission. Thestatement shall show also the interestcharges for the ensuing year on account ofsuch indebtedness and the amount of princi-pal to be retired in that year.

294.665 Levying board to submit auditreport or financial statements annually.The levying board of each municipal corpo-ration under the jurisdiction of the commis-sion shall annually submit a copy of the fullreport of its independent auditor under ORS297.425, or a copy of the financial statementssubmitted to the Secretary of State underORS 297.435, as soon as practicable after theclose of each fiscal year. [Amended by 1999 c.632§19]

294.670 Commission may inquire intomanagement, books and systems; rules.(1) The commission may inquire into themanagement, books of account and systemsemployed, of each municipal corporation, andof each department thereof within its re-spective county.

(2) Notwithstanding ORS 294.495 (2), thecommission may prescribe such rules andregulations as are considered proper toeffectually carry out the purposes of ORS294.305 to 294.705. In any case where rulesadopted pursuant to this subsection conflictwith rules adopted by the Department of Re-venue, rules adopted by the department shallprevail. [Amended by 1975 c.669 §1]

294.675 Calling joint meetings of levy-ing boards. The commission may call jointmeetings of the levying boards subject toORS 294.605 to 294.705 and may require theirattendance for the purpose of discussingproblems common to two or more municipalcorporations under the jurisdiction of thecommission, including long range financialplanning, building programs, special levies,bond issues and cooperative ventures suchas joint purchasing.

294.680 Certifying excessive or unau-thorized expenditures to district attor-ney; action by district attorney. If at anytime the commission finds that any munici-pal corporation, or public official thereof, hasexpended any public money in excess of theamounts or for any other or different purposeor purposes than is authorized by law, thecommission shall certify to the district at-torney for the county that fact, and the dis-trict attorney shall proceed for the recoverythereof as by law provided.

294.685 Annual report by commission.A complete and comprehensive report of thebudgets as presented by the several levyingboards, as provided by ORS 294.635 to294.650, and of any and all other informationpertaining to the administration of govern-ment in the county and to the expendituresand conservation of public funds, shall bemade annually by the commission and pub-lished in document form for the informationof the electors and taxpayers. Copies of thereport shall be filed with the Governor andwith the county court.

294.690 Records and files of commis-sion open to public inspection. The publicshall have access to the records and files ofthe commission at the office of the commis-sion at all times during office hours.

294.695 Attorney General as legal ad-visor and counsel to commission. The At-torney General shall be the legal advisor andcounsel of the commission and shall repre-sent it in all suits and actions and other le-gal proceedings in any court in this state.The Attorney General shall receive compen-sation for any services rendered in such ca-pacity. [Amended by 1969 c.363 §2; 1973 c.775 §6]

294.700 Proceedings to collect penal-ties. The penalties provided for in ORS294.990 (2) and (3) shall be recovered by ac-



tions at law instituted in the name of thecommission by the district attorney. Anyproceedings against a municipal corporationshall be taken against the municipal corpo-ration, as such, and the penalty when recov-ered shall be deducted from any money inthe county treasury to the credit of the mu-nicipal corporation. Any proceeding againsta levying board shall be taken against theindividual members of the levying board whoare responsible for the failure, neglect or re-fusal to comply. [Amended by 1971 c.267 §14]

294.705 Tax supervising and conserva-tion fund. There is established the taxsupervising and conservation commissionfund in the county treasury. The fund shallconsist of any penalties recovered under ORS294.700.

294.710 Procedures for establishingcommission; annual appropriations. (1)Any county with a population of less than500,000 inhabitants, based on the most re-cently available data published or officiallyprovided by the Portland State UniversityPopulation Research Center, may establish,with the approval of a majority of its electorsvoting on the question, a tax supervising andconservation commission that substantiallyconforms to the provisions of ORS 294.605 to294.705.

(2) Any county with a population of500,000 or more inhabitants, based on themost recently available data published or of-ficially provided by the Portland State Uni-versity Population Research Center, mayestablish a tax supervising and conservationcommission that substantially conforms tothe provisions of ORS 294.605 to 294.705 pro-vided the county obtains the approval of amajority of the members of its governingbody voting on the question.

(3) Notwithstanding ORS 294.630, acounty under this section may establish itsown maximum annual appropriation to a taxsupervising and conservation commission inthe ordinance creating the commission. [1977c.431 §1; 1991 c.80 §3; 2005 c.750 §5]

LOCAL GOVERNMENT EMPLOYERBENEFIT TRUST FUND

294.725 Definitions for ORS 294.725 to294.755. For the purposes of ORS 294.725 to294.755:

(1) “Account balance” means the amounta political subdivision has paid into the Lo-cal Government Employer Benefit TrustFund less the amount of unemployment ben-efits paid by the Employment Department onbehalf of the political subdivision.

(2) “Account reserve ratio” means theaccount balance of the political subdivisionon June 30, divided by gross wages paid to

individuals subject to ORS chapter 657 dur-ing the four calendar quarters ending onJune 30 by the political subdivision. The ra-tio shall be expressed as a percent carried tofour decimal places.

(3) “Aggregate benefit cost rate” meansthe total unemployment benefits paid duringa cost rate period that is attributable towages paid by all political subdivisions di-vided by the gross wages paid to individualssubject to ORS chapter 657 during the costrate period by all political subdivisions. Therate shall be expressed as a percent androunded to the nearest one-tenth of one per-cent.

(4) “Benefit cost rate” means the totalunemployment benefits paid during a costrate period that is attributable to wages paidby a political subdivision divided by grosswages paid to individuals subject to ORSchapter 657 during the cost rate period bythe political subdivision. The rate shall beexpressed as a percent and carried to fourdecimal places.

(5) “Cost rate period” means the priorthree-year period ending June 30 of eachyear.

(6) “Department” means the EmploymentDepartment.

(7) “Director” means the Director of theEmployment Department.

(8) “Erroneous benefit payments” meansany amount paid to an individual to whichthe individual is not entitled due to:

(a) Any error, whether or not due tomisrepresentation or nondisclosure of mate-rial fact by the claimant; or

(b) An initial decision to pay benefitsthat is subsequently reversed by a decisionfinding the individual was not eligible for thebenefits and the decision has become final.

(9) “Local Government Employer BenefitTrust Fund” or “fund” means the fund cre-ated by ORS 294.730.

(10) “Political subdivision” means a poli-tical subdivision as defined by ORS 657.097.

(11) “Unemployment benefits” or “bene-fits” means regular and extended benefitspaid under ORS chapter 657. [1977 c.491 §3; 1989c.135 §1; 1993 c.344 §9; 2007 c.71 §91]

294.730 Fund created; State Treasureras custodian; use of moneys; distributionof earnings. (1) There is created a LocalGovernment Employer Benefit Trust Fund,separate and distinct from the General Fund.The State Treasurer shall be the custodianof such fund and the fund shall consist of:

(a) All moneys received from politicalsubdivisions under the provisions of ORS293.701, 294.725 to 294.755 and 657.513;



(b) Interest earned upon any moneys inthe fund;

(c) Moneys transferred from other fundsto cover shortages in the fund; and

(d) All other moneys received from apolitical subdivision to be applied againstbenefit payment charges for any period thepolitical subdivision has requested the Em-ployment Department to reimburse the Un-employment Compensation Trust Fund on itsbehalf.

(2) Moneys in the fund are continuouslyappropriated to the department and, notwith-standing ORS 657.505, shall be the solesource of funds for payment to the Unem-ployment Compensation Trust Fund for ben-efits attributable to a political subdivisionduring its period of participation in the fundand repayment of advances and the interestthereon due to any shortages in the fund.

(3) Interest earned upon any moneys inthe fund is continuously appropriated to thedepartment for the payment of:

(a) Administrative expenses of ORS293.701, 294.725 to 294.755 and 657.513 andexpenses incurred in the investment of thefund in the amount authorized by ORS293.718;

(b) Erroneous benefit payments deter-mined during the period in which a politicalsubdivision is a participant in the fund; and

(c) Benefits attributed to a political sub-division that has ceased to exist, has no pos-itive account balance and has no successor.

(4) When insufficient interest exists topay obligations under subsection (3) of thissection, such amounts may be paid from thefund. When the fund again begins earninginterest, all obligations paid pursuant to thissubsection shall be repaid to the fund beforeany allocation is made under subsection (5)of this section.

(5) As soon as possible after the end ofeach calendar quarter, the State Treasurershall review the applicable quarterly interestearnings and payments made therefrom anddistribute any excess interest earnings to thepolitical subdivision accounts that had apositive balance on the last day of the appli-cable quarter. Such allocation shall be in aratio that the political subdivision positiveaccount balance on the last day of the cal-endar quarter bears to the total balance ofall political subdivisions with positive ac-count balances on the last day of the calen-dar quarter. The amounts distributed for thequarter ending June 30 shall be included inthe account reserve ratio determination forsuch June 30.

(6) The Director of the Employment De-partment is authorized to requisition from

the fund such amounts determined to benecessary for the payment of benefits attrib-utable to wages of political subdivisions.

(7) Interest accrued each quarter on ad-vances pursuant to subsection (2) of thissection shall be allocated each quarter tothose political subdivision accounts with anegative balance on the last day of such cal-endar quarter. The allocation shall be in aratio that the political subdivision negativeaccount balance on the last day of the cal-endar quarter bears to the total balance ofall political subdivisions with negative ac-count balances on the last day of the calen-dar quarter. The amounts allocated for thequarter ending June 30 shall be included inthe account reserve ratio determination forsuch June 30. [1977 c.492 §4; 1983 c.53 §1; 1989 c.135§2; 1989 c.966 §22]

294.735 Payments to fund by politicalsubdivisions; benefit cost rate determi-nations; effect of negative balance; re-funds. (1) A political subdivision shall payinto the Local Government Employer BenefitTrust Fund a percentage of the gross wagesit pays to individuals in employment subjectto ORS chapter 657, except that minor ad-justments to wages in a calendar quarter onwhich payments have previously been mademay not result in either a credit to the em-ployer or an additional amount due the fund.The percentage shall be as determined insubsections (2) to (6) of this section.

(2) As soon as possible after June 30 ofeach year, the Employment Department shallfor each political subdivision determine thebenefit cost rate and the account reserve ra-tio applicable as of that June 30.

(3) The percentage rate assigned to apolitical subdivision whose account has beenpotentially chargeable with benefits for eachof the last four calendar quarters ending onthe June 30 immediately preceding the de-termination shall be the benefit cost rate ofthe political subdivision plus one-third of thedifference obtained by subtracting the poli-tical subdivision′s account reserve ratio from1.5 times the political subdivision′s benefitcost rate. The resulting rate shall be roundedup to the nearest one-tenth of one percent.A political subdivision′s rate shall be not lessthan one-tenth of one percent nor more thanfive percent.

(4) The percentage rate assigned to apolitical subdivision whose account has notbeen potentially chargeable with benefits foreach of the last four quarters ending on theimmediately preceding June 30 shall be thegreater of one percent or 1.5 times the ag-gregate benefit cost rate for the cost rateperiod ending on that June 30.

(5) Notwithstanding subsections (3) and(4) of this section, a local government em-



ployer with an account balance on June 30that is less than five percent of the taxablewage base currently in effect may not be as-signed a rate of:

(a) Less than two percent if the payrollof the employer was less than $25,000 duringthe four most recently completed calendarquarters;

(b) Less than one percent if the payrollof the employer was $25,000 or more but lessthan $50,000 during the four most recentlycompleted calendar quarters;

(c) Less than one-half of one percent ifthe payroll of the employer was $50,000 ormore but less than $100,000 during the fourmost recently completed calendar quarters;or

(d) Less than two-tenths of one percentif the payroll of the employer was $100,000or more during the four most recently com-pleted calendar quarters.

(6) Percentages determined in subsections(3) to (5) of this section shall be applicablefor the four-calendar-quarter period begin-ning July 1 of the year immediately followingthe determination.

(7)(a) In addition to the payment madeinto the fund under subsections (1) to (6) ofthis section, any political subdivision thathas a negative account balance at the end ofa calendar quarter and had a negative ac-count balance at the end of each of the threeimmediately preceding calendar quartersshall make additional payments into the fundduring each of the next four calendar quar-ters. The additional payment required shallbe computed as follows, with all computa-tions omitting cents:

(A) Multiply the gross payroll reportedby the employer during the four most recentcalendar quarters by the current percentagerate of payment into the fund.

(B) Subtract the amount of benefits at-tributable to the employer that was reim-bursed from the fund during the most recentfour calendar quarters from the product de-termined in subparagraph (A) of this para-graph.

(C) If the remainder obtained in subpara-graph (B) of this paragraph is more thanzero, subtract the remainder from the nega-tive balance of the account.

(D) If the remainder in subparagraph (B)of this paragraph is zero or less, make noadjustment to the amount of the negativebalance of the account.

(E) Divide the amounts determined in ei-ther subparagraph (C) or (D) of this para-graph by four. The resulting amount shall bethe additional payment required for eachquarter.

(b) Only one such determination shall bemade in any four-quarter period. If the nega-tive balance is eliminated before the end ofthe four quarters in which the additionalpayments were determined necessary, no fur-ther additional payments will be requiredunder this subsection.

(8) During the first four calendar quar-ters in which a political subdivision is aparticipant in the fund, additional paymentsshall be required if the account balance ofthe political subdivision is negative at theend of any of the four quarters. The addi-tional payment shall be determined in thesame manner described in subsection (7) ofthis section except that the computation insubsection (7)(a)(A) and (B) of this sectionshall include only those quarters in whichthe political subdivision was a participant inthe fund.

(9) Employers subject to the provisionsof this section may request a refund ofamounts in excess of the amount required toobtain the minimum contribution rate. [1977c.491 §5; 1981 c.5 §1; 1983 c.53 §2; 1989 c.135 §3; 1993 c.778§3; 2007 c.71 §92]

294.740 Refund of account balances;payment of deficits; erroneous benefitpayments. (1) The Employment Departmentshall refund to a political subdivision elect-ing to cancel its request as provided by ORS657.513 any account balance remaining afterthe department has made all payments to theUnemployment Compensation Trust Fund re-quired to be made on behalf of the politicalsubdivision.

(2) A political subdivision canceling a re-quest having a negative account balanceshall make such additional payments into thefund as necessary to maintain a zero accountbalance.

(3) Erroneous benefit payments deter-mined after June 30, 1978, and attributableto wages paid by a political subdivision mak-ing payments under ORS 294.735 shall be ex-cluded from the account balancedetermination and the determination of thebenefit cost rate of that political subdivision.[1977 c.491 §§6,7; 1989 c.135 §4]

294.745 Analysis of fund receipts andexpenditures; report to Legislative As-sembly. The Employment Department shallinvestigate the experience of political subdi-vision participation in operations of the fund,including the relationship of fund receipts tofund expenditures and report the results ofthe investigation to the legislature at least30 days prior to the date a regular sessionof the legislature is scheduled to convene.The report shall include any recommendedchanges in the provisions of ORS 293.701,294.725 to 294.755 and 657.513. [1977 c.491 §8;1989 c.135 §5]



294.750 Experience and liability ofsuccessor political subdivisions; unpaidassessment. (1) The experience and liabil-ities of a political subdivision that has ceasedto exist shall be acquired by the successorpolitical subdivision.

(2) Notwithstanding subsection (1) of thissection, all units of government who areparties to an agreement to form a politicalsubdivision shall be liable for any unpaid as-sessments of that political subdivision andfor such amounts as necessary to maintainthe account balance of the political subdivi-sion, if no longer in existence, at zero dol-lars. [1977 c.491 §9]

294.755 Payment on quarterly basis;remedies for collection. Political subdi-visions electing to participate in the LocalGovernment Employer Benefit Trust Fundshall pay into the fund on a quarterly basisand are subject to all remedies for the col-lection of delinquent taxes provided in ORSchapter 657. [1977 c.491 §10]

LOCAL GOVERNMENT INVESTMENT POOL

294.805 Definitions for ORS 294.805 to294.895. As used in ORS 294.805 to 294.895:

(1) “Board” means the Oregon ShortTerm Fund Board.

(2) “Council” means the Oregon Invest-ment Council created under ORS 293.706.

(3) “Funds” means funds under the con-trol or in the custody of any local govern-ment official by virtue of office that are notrequired to meet current demands.

(4) “Investment officer” means the StateTreasurer in capacity as investment officerfor the council and the investment pool.

(5) “Investment pool” means the aggre-gate of all funds from local government offi-cials that are placed in the custody of theinvestment officer for investment and rein-vestment as provided under ORS 294.805 to294.895.

(6) “Local government official” meanseach officer or employee of any agency, poli-tical subdivision or public corporation of thisstate, including the Oregon State Bar, whoby law is made the custodian of or has con-trol of any funds. [1973 c.748 §1; 1981 c.880 §14; 1987c.381 §1]

294.810 Local governments authorizedto place limited funds in pool. (1) With theconsent of the governing body, a local gov-ernment official may place in the aggregateup to $30 million of its funds in the invest-ment pool, or, if the assets of the investmentpool have been transferred pursuant to ORS294.882, in the state investment fund estab-

lished pursuant to ORS 293.721, for invest-ment and reinvestment by the investmentofficer as provided under ORS 293.701 to293.820 or 294.805 to 294.895, as the case maybe. The $30 million limitation stated in thissection shall not apply either to funds of agoverning body which are placed in the in-vestment pool on a pass-through basis or tofunds invested on behalf of another govern-ment unit. Local governments must removepass-through funds which result in an ac-count balance in the pool in excess of $30million within 10 business days. County gov-ernments must remove such excess fundswithin 20 business days. The investment of-ficer shall promptly report each instance ofnoncompliance with, or apparent abuse of,the limitations of this section to the Secre-tary of State and to the governing body ofthe local government involved.

(2) The $30 million limitation containedin subsection (1) of this section shall in-crease in proportion to the increase occur-ring after September 9, 1995, in theConsumer Price Index for All Urban Con-sumers of the Portland, Oregon, StandardMetropolitan Statistical Area, as compiled bythe United States Department of Labor, Bu-reau of Labor Statistics. [1973 c.748 §2; 1981 c.880§15; 1987 c.381 §2; 1995 c.245 §10]

294.815 Period of investments; with-drawal of funds. Subject to the right of theunit of local government to specify the pe-riod in which its funds may be held in theinvestment pool for investment and reinvest-ment, the investment officer by rule shallprescribe the time periods for investments inthe investment pool and the procedure forwithdrawal of funds. [1973 c.748 §3]

294.820 Establishment of investmentpools by intergovernmental agreement;conditions; powers. If the State Treasurerand the Oregon Investment Council termi-nate the operation of all investment poolscreated under ORS 293.824, public bodies, asdefined in ORS 287A.001, may establish bywritten agreement under ORS chapter 190one or more pools for the investment of pro-ceeds for the purposes identified in ORS293.822. In establishing one or more suchpools, the participating public bodies mayexercise those powers conferred on the StateTreasurer and the Oregon Investment Coun-cil by ORS 293.824. [1973 c.748 §4; 1979 c.608 §1;1995 c.245 §11; 2007 c.783 §122]

294.825 State Treasurer as investmentofficer; bond; employment of personnel;rules. (1) The State Treasurer is the invest-ment officer for the Oregon InvestmentCouncil and the investment pool, and shallperform functions in that capacity as au-thorized or required by law and, consistentwith law, by the council.



(2) The bond of the State Treasurer re-quired from the State Treasurer by law shallbe deemed to extend to the faithful perform-ance of all functions of the office of invest-ment officer under ORS 294.805 to 294.895.

(3) The investment officer may:(a) Subject to any applicable provision of

the State Personnel Relations Law, employ,prescribe the functions and fix the compen-sation of personnel necessary to facilitateand assist in carrying out the functions ofthe council, investment officer and invest-ment pool.

(b) Require a fidelity bond of any personemployed by the investment officer who hascharge of, handles or has access to any ofthe moneys in the investment pool. Theamounts of the bonds shall be fixed by theinvestment officer, except as otherwise pro-vided by law, and the sureties shall be ap-proved by the investment officer. Thepremiums on the bonds shall be an expenseof the State Treasurer.

(4) Subject to review by the board, theinvestment officer may, pursuant to ORSchapter 183, make reasonable rules necessaryfor the administration of ORS 294.805 to294.895. [1973 c.748 §§5,18]

294.830 [1973 c.748 §7; repealed by 1979 c.608 §2(294.831 enacted in lieu of 294.830)]

294.831 Investment objective; limit onmaturity dates. (1) The local governmentinvestment pool shall seek to obtain a com-petitive return on investments subject to thestandards set forth in ORS 294.835 and con-sistent with the liquidity requirements de-manded by the short term nature of localgovernment deposits in the pool.

(2) The investment officer shall at alltimes hold investments which mature inthree years or less, in an amount not lessthan an amount equal to the aggregate of allfunds placed with the investment officer bylocal governments under ORS 294.805 to294.895, which investments shall be from thefunds defined in ORS 293.701 (2)(p).

(3) Notwithstanding subsection (2) of thissection, the investment officer may purchaselegally issued general obligations of theUnited States and of the agencies and in-strumentalities of the United States if theseller of the obligations agrees to repurchasethe obligations within 90 days following thedate on which the investment officer makesthe investment. The price paid by the invest-ment officer for such obligations may notexceed amounts or percentages prescribed bywritten policy of the Oregon InvestmentCouncil or the Oregon Short Term FundBoard created by ORS 294.885.

(4) Investments and commitments of theinvestment pool which do not conform to thequality or maturity requirements set forth inORS 294.805 to 294.895 shall be liquidated bythe investment officer once the market valueof such investments and commitments re-aches book value, or as soon as is practicablethereafter. [1979 c.608 §3 (enacted in lieu of 294.830);1981 c.880 §16; 1987 c.381 §3; 1993 c.18 §61; 1995 c.40 §1]

294.835 Standard of care; investmentin certain stocks prohibited. (1) In invest-ing and reinvesting moneys in the invest-ment pool and in acquiring, retaining,managing and disposing of investments of theinvestment pool there shall be exercised thejudgment and care under the circumstancesthen prevailing, which individuals of pru-dence, discretion and intelligence exercise inthe management of their own affairs, not inregard to speculation but in regard to thepermanent disposition of their funds, consid-ering the probable income as well as theprobable safety of their capital. Within thelimitations of the foregoing standard andsubject to subsection (2) of this section, theremay be acquired, retained, managed and dis-posed of as investments of the investmentpool every kind of investment which individ-uals of prudence, discretion and intelligenceacquire, retain, manage and dispose of fortheir own account.

(2) Notwithstanding subsection (1) of thissection, moneys in the investment pool maynot be invested in the stock of any company,association or corporation. [1973 c.748 §8; 1979c.608 §4; 2005 c.294 §2]

294.840 Investment policies; review;separate policies for individual publicbodies. Subject to the objective set forth inORS 294.831 and the standards set forth inORS 294.835, the Oregon Investment Councilshall formulate policies for the investmentand reinvestment of moneys in the invest-ment pool and the acquisition, retention,management and disposition of investmentsof the investment pool. The council, fromtime to time, shall review those policies andmake changes therein as it considers neces-sary or desirable. The council may formulateseparate policies for any funds from any sin-gle public body included in the investmentpool. [1973 c.748 §9; 2007 c.783 §122a]

294.845 Investment officer to invest,reinvest pool funds. In amounts availablefor investment purposes and subject to thepolicies formulated by the Oregon Invest-ment Council, the investment officer shallinvest and reinvest moneys in the investmentpool and acquire, retain, manage, includingexercise of any voting rights, and dispose ofinvestments of the investment pool. [1973 c.748§10]



294.847 Prohibited conduct for invest-ment officer. In making investments pursu-ant to ORS 294.805 to 294.895, the investmentofficer shall not:

(1) Make a commitment to invest fundsor sell securities more than 14 business daysprior to the anticipated date of settlement ofthe purchase or sale transaction;

(2) Enter into any agreement to investfunds or sell securities for future delivery fora fee other than interest;

(3) Lend securities to any person or in-stitution, except on a fully collateralized ba-sis;

(4) Pay for any securities purchased bythe investment officer until the investmentofficer has received physical possession, orother sufficient evidence, as determined un-der ORS 293.751 (1), of title thereof. How-ever, the investment officer may instruct anycustodian bank, defined in ORS 295.001, toaccept securities on the investment officer′sbehalf against payment therefor previouslydeposited with the institution by the invest-ment officer; or

(5) Deliver securities to the purchaserthereof upon sale prior to receiving paymentin full therefor. However, the investment of-ficer may deliver the securities to any custo-dian bank, defined in ORS 295.001, uponinstructions to hold the same pending receiptby the institution of full payment therefor.[1981 c.880 §11; 1991 c.88 §6; 2007 c.871 §27]

Note: The amendments to 294.847 by section 27,chapter 871, Oregon Laws 2007, become operative July1, 2008, and apply to all public funds on deposit on orafter July 1, 2008. See sections 36 and 37, chapter 871,Oregon Laws 2007, as amended by sections 39 and 40,chapter 871, Oregon Laws 2007. The text that is opera-tive until July 1, 2008, is set forth for the user′s con-venience.

294.847 In making investments pursuant to ORS294.805 to 294.895, the investment officer shall not:

(1) Make a commitment to invest funds or sell se-curities more than 14 business days prior to the antic-ipated date of settlement of the purchase or saletransaction;

(2) Enter into any agreement to invest funds or sellsecurities for future delivery for a fee other than inter-est;

(3) Lend securities to any person or institution,except on a fully collateralized basis;

(4) Pay for any securities purchased by the invest-ment officer until the investment officer has receivedphysical possession, or other sufficient evidence, as de-termined under ORS 293.751 (1), of title thereof. How-ever, the investment officer may instruct any custodianbank, defined in ORS 295.001 (2), to accept securities onthe investment officer′s behalf against payment thereforpreviously deposited with the institution by the invest-ment officer; or

(5) Deliver securities to the purchaser thereof uponsale prior to receiving payment in full therefor. How-ever, the investment officer may deliver the securitiesto any custodian bank, defined in ORS 295.001 (2), uponinstructions to hold the same pending receipt by theinstitution of full payment therefor.

294.850 Contracts with persons toperform investment functions; compen-sation; bond. The Oregon Investment Coun-cil may enter into contracts with one ormore persons whom the council determinesto be qualified, whereby the persons under-take, in lieu of the investment officer, toperform the functions specified in ORS294.845 to the extent provided in the con-tract. Performance of functions under con-tract so entered into shall be paid for out ofthe gross interest or other income of the in-vestments with respect to which the func-tions are performed, and the net interest orother income of the investments after thatpayment shall be considered income of theinvestment pool. The council may require aperson contracted with to give to the statea fidelity bond in a penal sum as may befixed by law or, if not so fixed, as may befixed by the council, with corporate suretyauthorized to do business in this state. Con-tracts so entered into and functions per-formed thereunder are not subject to theState Personnel Relations Law or ORS279A.140. [1973 c.748 §11; 2003 c.794 §251]

294.855 Legal opinions; investmentcounseling services; mortgage services.(1) In the acquisition or disposition of bondswith which approving legal opinions ordinar-ily are furnished, the investment officer mayrequire an original or certified copy of thewritten opinion of a reputable bond attorneyor attorneys, or the written opinion of theAttorney General, certifying to the legalityof the bonds.

(2) The Oregon Investment Council mayarrange for the furnishing to the investmentofficer of investment counseling services.The furnishing and acquisition of those ser-vices are not subject to the State PersonnelRelations Law or ORS 279A.140.

(3) The investment officer, with the ap-proval of the council, may arrange for ser-vices with respect to mortgages in whichmoneys in the investment pool are invested.Those services shall be paid for out of thegross interest of the mortgages with respectto which the services are furnished, and thenet interest of the mortgages after that pay-ment shall be considered income of the in-vestment pool. The furnishing andacquisition of those services are not subjectto the State Personnel Relations Law or ORS279A.140. [1973 c.748 §12; 2003 c.794 §252]

294.860 Custody of investment docu-ments; collection of income; distributionto local governments; calculation and al-location of profit and loss; defaulted pay-ments of principal and interest,collection, compromise. (1) Except as pro-vided in ORS 294.850 and this subsection, allinstruments of title of all investments of the



investment pool shall remain in the custodyof the investment officer. The investment of-ficer may deposit with one or more custodialagents or banks those instruments of titlethat the State Treasurer considers advisable,to be held in safekeeping by the agents orbanks for collection of the principal and in-terest or other income, or of the proceeds ofsale or maturity. For purposes of this sec-tion, instruments of title of investments ofthe investment pool may include such evi-dence of title as the investment officer shallconsider secure and consistent with moderninvestment, banking and commercial prac-tices, and may include book entry and auto-mated recordation of such title.

(2) Except as provided in ORS 294.850and 294.855 (3) and subsections (1) and (3) ofthis section, the investment officer shall col-lect the principal and interest or other in-come of investments of the investment pool,title of which is in the investment officer′scustody, when due and payable, and shall payto the appropriate local government officialthe principal and interest or other income,within 30 days after the last day of the cal-endar quarter in which the principal and in-terest or other income accrues. Not lessoften than quarterly and without regard towhether the short-term investments weremade with moneys placed by local govern-ment officials or by other sources, the in-vestment officer shall compute the amountby which the current fair market value ex-ceeds or is less than the net purchase priceof all short-term investments administered bythe investment officer that mature more than270 days from the date computation is made.The investment officer shall compute the fairmarket value of such investments based uponthe mean value of the bid and ask price ofsuch investments as of the date of computa-tion, based upon quotations from reputabledealers or financial institutions dealing insuch investments. If the amount so computedby the investment officer totals more thanone percent of the balance of the pool, eitherin terms of a gain or loss, the investment of-ficer shall allocate the amount to all poolparticipants. Any addition to or deductionfrom amounts to be distributed shall be allo-cated among the municipalities participatingin the pool at any time during the month inproportion to their average daily balances offunds invested through the pool. Investmentsmaturing 270 days or less from the date ofcomputation shall not be subject to the fore-going computation, but for other purposesshall be valued at book value or originalpurchase price.

(3) In the event of default in the paymentof principal or interest or other income ofany investment of the investment pool, the

investment officer, with the approval of thecouncil, may:

(a) Institute the proper proceedings tocollect the matured principal or interest orother income.

(b) Accept for exchange purposes refund-ing bonds or other evidences of indebtednessat interest rates to be agreed upon by theinvestment officer and obligor.

(c) Make compromises, adjustments ordisposition of the matured principal or inter-est or other income as the investment officerconsiders advisable for the purpose of pro-tecting the moneys invested.

(d) Make compromises or adjustments asto future payments of principal or interestor other income as the investment officerconsiders advisable for the purposes of pro-tecting the moneys invested. [1973 c.748 §13; 1979c.475 §2; 1987 c.381 §4; 1991 c.88 §1; 1995 c.40 §2]

294.865 Monthly deductions from in-come received for payment of expenses.The State Treasurer may deduct monthly amaximum of 0.435 basis points of the mostrecent market value of assets under themanagement of the investment pool.Amounts so deducted shall pay the StateTreasurer for expenses of the State Treas-urer as investment officer and to the extentthe amounts deducted are so used shall bedeposited into the Miscellaneous ReceiptsAccount established in the General Fund forthe State Treasurer, and are continuouslyappropriated for payment of the expenses ofthe State Treasurer as investment officer.[1973 c.748 §6; 1975 c.740 §9; 1977 c.266 §11; 1991 c.88 §2;1995 c.288 §2; 1999 c.1043 §3; 2001 c.716 §25]

294.870 Separate accounts for localgovernments; reports on investmentchanges and monthly financial state-ments required. (1) The investment officershall keep, for each public body with fundsin the investment pool, a separate account,which shall record the individual amountsand the totals of all investments of its mon-eys in the investment pool.

(2) The investment officer shall reportmonthly to the local government official ofa public body with funds in the investmentpool the changes in its account made duringthe preceding month for the investment pool.The investment officer shall also furnish afinancial report monthly to each participat-ing governmental unit investor in the localgovernment investment pool. The financialreport shall include, but not be limited to,such comparative data for the preceding sixmonths operation of the investment pool aswill provide a basis for analyzing trends andcomparing operating results and financialposition. A monthly statement shall be dis-tributed within 30 days after the end of that



month. [1973 c.748 §§14,15; 1979 c.608 §5; 1989 c.569§4; 2007 c.783 §122b]

294.875 Monthly report of investmentsof pool funds; distribution. Not later than15 days after the last day of each month, theinvestment officer shall submit to the OregonInvestment Council and the Oregon ShortTerm Fund Board a report of the investmentsmade during the preceding month. The reportshall include a detailed summary of invest-ment, reinvestment, purchase, sale and ex-change transactions, setting forth, amongother matters, the investments bought, soldand exchanged, the dates thereof, the pricespaid and obtained, the names of the dealersinvolved and a statement of the accounts re-ferred to in ORS 294.870 (1). The reportsshall include a description of every invest-ment in the portfolio of assets in the invest-ment pool showing issuer, coupon, purchasedate, maturity date, yield to maturity, bookvalue, market value as of the end of themonth for which the report is rendered andthe method used to value pool investments;a computation of the average life of theportfolio of assets in the investment poolweighted according to the market value ofeach investment that matures more than 270days from the report date as of the end of themonth for which the report is rendered; anda computation of the annualized rate of re-turn of the investment pool portfolio, net ofexpense. A copy of the reports shall be madeavailable to each county, municipality,school district and other political subdivisionthe funds of which are then being investedby the investment officer. The investment of-ficer may send copies of the report to in-vestment bankers and brokers recommendedby the council. [1973 c.748 §16; 1981 c.880 §17; 1987c.381 §5]

294.880 Program examination and au-dit; report; distribution. An examinationand audit of the investment pool shall bemade separately from the audit of the treas-urer for submission to the Oregon Invest-ment Council, local public bodies that areinvestors in the pool, the Legislative Assem-bly and the board at least once a year andat other times as the council may require.An audit report shall be submitted to the in-dividuals and public bodies specified within60 days after the end of the fiscal year or assoon as practical. The report shall include astatement prepared by the State Treasurerof the investment rules governing invest-ments authorized by the council. [1973 c.748§17; 1979 c.608 §6; 2007 c.783 §122c]

294.882 Merger or subsequent sepa-ration of local government investmentpool and state investment fund; precon-ditions. (1) It is recognized that a time maycome when the interest of local governmentsdiminishes to the extent that participation in

the local government investment pool nolonger warrants its operation as a separatefund. If the local government investment pooldecreases to a level below $125 million, theState Treasurer may transfer the assets ofthe pool to the state investment fund estab-lished under ORS 293.701 (2)(o). In thatevent, the local government investment poolparticipant accounts will be treated as areother state funds and accounts in receivinga proportionate share of the earnings of thatinvestment fund. Notwithstanding ORS294.860, 294.865, 294.870, 294.875 or 294.880,when the State Treasurer transfers the as-sets of the local government investment poolto the state investment fund, the distrib-utions of income to local governments, pay-ment of related expenses and the reporting,program examination and audit functionswith respect to the investment pool partic-ipant accounts shall be administered in ac-cordance with ORS 293.718, 293.751, 293.756,293.761, 293.766, 293.771, 293.776 and 293.820.

(2) The State Treasurer, at the discretionof the treasurer may reestablish the localgovernment investment pool as a separatefund, if the participant accounts increase toover $125 million and in the State Treasur-er′s judgment, sufficient interest by localgovernment exists to insure the local gov-ernment investment pool will remain over$125 million. Prior to reestablishing the poolas a separate fund, the State Treasurer shallfirst present a plan for operation, includingthe reasons for such action, to the OregonInvestment Council at a regularly scheduledmeeting for its review and comment. TheState Treasurer shall publish notice in theSecretary of State′s administrative rules bul-letin of the treasurer′s intent to reestablishthe pool as a separate fund at least 30 daysprior to the meeting at which the OregonInvestment Council shall review the pro-posal, and notice of the meeting time and lo-cation of the Oregon Investment Council atwhich the proposal will be discussed. [1979c.608 §9; 1980 c.19 §7; 1983 c.456 §3; 1993 c.18 §62; 1997c.129 §1; 1999 c.1043 §7]

294.885 Oregon Short Term FundBoard; members; appointment; term; va-cancies. (1) There is created the OregonShort Term Fund Board consisting of sevenmembers.

(2) One member shall be the State Treas-urer or the treasurer′s designated represen-tative. Three members who are qualified bytraining and experience in the field of in-vestment or finance and who do not hold anyother public office or employment, shall beappointed by the State Treasurer. Threemembers, who are treasurers, finance or fis-cal officers or business managers of anycounty, city or school district, shall be ap-pointed by the Governor. In making the ap-



pointment, the Governor may considerpersons recommended by:

(a) The Association of Oregon Counties.(b) The League of Oregon Cities.(c) The Oregon School Boards Associ-

ation.(3) The term of office of each appointed

member of the board is four years, but eachappointed member serves at the pleasure ofthe appointing authority. A vacancy in theappointed membership occurring other thanby expiration of term shall be filled in thesame manner as the original appointment,but for the unexpired term only. [1973 c.748 §19;1979 c.608 §7; 1981 c.880 §18; 1989 c.1006 §2]

294.890 Board members serve withoutcompensation; selection of chairperson.(1) A member of the Oregon Short TermFund Board shall serve without compensa-tion.

(2) The board shall select one of itsmembers as chairperson, for a term and withthe powers and duties necessary for the per-formance of the functions of the office as theboard shall determine. [1973 c.748 §20]

294.895 Board duties, generally. TheOregon Short Term Fund Board shall:

(1) Advise the Oregon Investment Coun-cil and the investment officer in the man-agement of the investment pool and in theinvestment of all funds defined in ORS293.701 (2)(p) and invested pursuant to ORS293.721.

(2) Review the rules promulgated by theinvestment officer as authorized under ORS294.825 (4).

(3) Consult with the council and the in-vestment officer on any matter relating tothe investment and reinvestment of funds inthe investment pool and on any matter re-lating to the investment or reinvestment offunds defined in ORS 293.701 (2)(p) and in-vested pursuant to ORS 293.721. [1973 c.748 §21;1981 c.880 §19; 1993 c.18 §63]

COUNCILS OF GOVERNMENTS294.900 “Council of governments” de-

fined. As used in ORS 294.900 to 294.930,“council of governments” means an entityorganized by units of local government underan intergovernmental agreement under ORS190.003 to 190.130, which does not act underthe direction and control of any single mem-ber government and does provide services di-rectly to individuals. [1987 c.666 §1]

Note: 294.900 to 294.930 were enacted into law bythe Legislative Assembly but were not added to or madea part of ORS chapter 294 or any series therein by leg-islative action. See Preface to Oregon Revised Statutesfor further explanation.

294.905 Budget committee; member-ship; term; vacancies; officers; meetingsto be public. (1) A council of governmentsshall establish a budget committee in accor-dance with the provisions of this section.

(2) The budget committee shall consist ofthe members of the governing body of thecouncil of governments and an equal numberof representatives of the services provided bythe council of governments. If there arefewer representatives of the services thanthe number of members of the governingbody of the council, the governing body andthe representatives willing to serve shall bethe budget committee. If there are no repre-sentatives willing to serve, the governingbody shall be the budget committee.

(3) The members of the budget committeeshall receive no compensation for their ser-vices as members of such committee.

(4) Appointive members of the budgetcommittee shall not be officers, agents oremployees of the council of governments orproviders of the services.

(5) The appointive members of the budgetcommittee shall be appointed for terms ofthree years. The terms shall be staggered sothat one-third or approximately one-third ofthe terms of the appointive members endeach year.

(6) If any appointive member is unable toserve the term for which the member wasappointed, or an appointive member resignsprior to completion of the term for which themember was appointed, the governing bodyof the council of governments shall fill thevacancy by appointment for the unexpiredterm.

(7) The budget committee, at its firstmeeting after its appointment, shall elect achairperson and a secretary from among itsmembers.

(8) Meetings of the budget committeeshall comply with the requirements of ORS192.610 to 192.710. [1987 c.666 §2]

Note: See note under 294.900.

294.910 Estimates of expenditures; or-ganization and format; matters to be in-cluded. (1) Each council of governmentsshall prepare estimates of expenditures forthe ensuing year.

(2) The estimates required by subsection(1) of this section shall be prepared by or-ganizational unit or by program.

(3) Estimates required by subsection (1)of this section and prepared by organiza-tional unit shall be detailed under separateobject classifications of personal services,materials and services and capital outlay.Separate estimates shall be made for specialpayments, debt service, interfund revenue



transfers, operating expenses and generalcapital outlays which cannot reasonably beallocated to an organizational unit.

(4) Estimates required by subsection (1)of this section and prepared by program shallbe arranged for each activity of a program.Estimates under each activity shall be de-tailed under separate object classificationsof personal services, materials and servicesand capital outlay. Separate estimates shallbe made for each program for special pay-ments, debt service, interfund revenue trans-fers, operating expenses and general capitaloutlays which cannot reasonably be allocatedto an activity within a function.

(5) Estimates of expenditures for personalservices, other than services of persons whoreceive an hourly wage or who are hired ona part-time basis, shall list the salary foreach officer and employee, except that em-ployees of like classification and salary rangein each organizational unit or activity maybe listed by the number of those employees,the limits of each salary range and theamount of their combined salaries.

(6) The general capital outlay estimateshall include separate amounts for land,buildings, improvements to land other thanbuildings and machinery and equipmentwhich cannot be reasonably allocated to anorganizational unit or activity.

(7) The debt service estimates shall in-clude separate amounts for principal and in-terest of each bond issue in each fund.

(8) If the estimates required by subsec-tion (1) of this section are not prepared byfund, there shall be prepared a summarywhich cross-references programs or organiza-tional units to the appropriations required byORS 294.435. [1987 c.666 §3]


294.915 Notice of budget committeemeeting; public availability of documents.(1) Not less than eight days and not morethan 14 days prior to the meeting of thebudget committee of the council of govern-ments, notice of the meeting shall be pub-lished in a newspaper of general circulationwithin each county represented by the coun-cil of governments. The notice shall containthe purpose, time and place of the meetingand the place where the budget document isavailable. The notice shall also state that themeeting is a public meeting where deliber-ations of the budget committee will takeplace and that any person may discuss pro-posed programs with the budget committeeat that time.

(2) The governing body shall either pro-vide the means of duplicating the budget orpart thereof, in those situations where thebudget document or portion thereof may be

quickly reproduced, or shall provide copiesof the budget document or part thereof sothat a copy of the budget document or partthereof may be readily obtained by any indi-vidual interested in the affairs of the councilof governments. [1987 c.666 §4]


294.920 Hearing on budget document.(1) Each council of governments shall hold apublic hearing on the budget document asapproved by the budget committee.

(2) Not less than eight days and not morethan 14 days prior to the meeting held asrequired by subsection (1) of this section,notice of the meeting shall be published in anewspaper of general circulation within eachcounty represented by the council of govern-ments. The notice shall contain the time andplace of the meeting and the place where thebudget document, as approved by the budgetcommittee, is available. The notice shall alsostate that the meeting is a public meetingwhere any person may appear for or againstany item in the budget document. [1987 c.666§5]


294.925 Supplemental budget; condi-tions; term; publication. (1) Notwithstand-ing requirements as to estimates of andlimitation on expenditures, any council ofgovernments may make a supplemental bud-get for the fiscal year for which the regularbudget has been prepared under one or moreof the following circumstances:

(a) An occurrence or condition which hadnot been ascertained at the time of the prep-aration of a budget for the current yearwhich requires a change in financial plan-ning.

(b) A pressing necessity which was notforeseen at the time of the preparation of thebudget for the current year which requiresprompt action.

(c) Funds were made available by anotherunit of federal, state or local government andthe availability of such funds could not havebeen ascertained at the time of the prepara-tion of the budget for the current year.

(d) A request for services or facilities,the cost of which shall be supplied by a pri-vate individual, corporation or company orby another governmental unit and theamount of the request could not have beenaccurately ascertained at the time of thepreparation of the budget for the currentyear.

(e) The involuntary destruction, involun-tary conversion, or sale of property has ne-cessitated the immediate purchase,construction or acquisition of different facil-ities in order to carry on the governmentaloperation.



(2) A supplemental budget shall not ex-tend beyond the end of the fiscal year duringwhich it is submitted.

(3) The supplemental budget shall bepublished. [1987 c.666 §6; 1989 c.171 §40]


294.930 Authority of Department ofRevenue; budget records maintained bycouncil of governments. (1) The Depart-ment of Revenue shall exercise the samepowers and authority with regard to councilsof governments and the budgets and budgetcommittees of councils of governments as thedepartment exercises under ORS 294.495 to294.510 with regard to municipal corpo-rations.

(2) Each council of governments shallkeep for a period of two years following theend of the fiscal year for which the budgetwas adopted:

(a) A copy of the budget as finallyadopted;

(b) Copies of the notices required to bepublished under ORS 294.915 and 294.920;and

(c) A copy of the resolution adopting thebudget.

(3) If requested by the Department ofRevenue, the Division of Audits or a countyassessor within the two-year period describedin subsection (2) of this section, a council ofgovernments shall send copies of the budget,notices and resolution to the entity makingthe request. [1987 c.666 §7; 2007 c.198 §1]

Note: The amendments to 294.930 by section 1,chapter 198, Oregon Laws 2007, apply to fiscal yearsbeginning on or after July 1, 2007. See section 2, chapter198, Oregon Laws 2007. The text that applies to fiscalyears beginning before July 1, 2007, is set forth for theuser′s convenience.

294.930. (1) The Department of Revenue shall exer-cise the same powers and authority with regard tocouncils of governments and the budgets and budgetcommittees of councils of governments as the depart-ment exercises under ORS 294.495 to 294.510 with regardto municipal corporations.

(2) On or before July 15 of each year, or upon suchother date as the Department of Revenue shall desig-nate, each council of governments shall file with theDepartment of Revenue a true copy of its budget asfinally adopted, a copy of the notices required to bepublished under ORS 294.915 (1) and 294.920 (2) and acopy of the resolution adopting the budget.

(3) The copies of budgets filed with the Departmentof Revenue under subsection (2) of this section shall beturned over to the Division of Audits created by ORS297.010 on or before the end of the fiscal year for whichthe budget was prepared, and shall be retained by theDivision of Audits for a period of two years followingthe end of the fiscal year for which the budget wasprepared.


MISCELLANEOUS294.950 County revenue sharing with

cities. (1) Subject to the limitation containedin subsection (3) of this section, a countymay give, out of its general fund, moneysthat are not otherwise obligated for countypurposes to any city situated in whole or inpart within the county. Such moneys may beused by the city for general municipal pur-poses.

(2) Subject to the limitation contained insubsection (3) of this section, a county mayshare the proceeds of any tax or excise de-scribed in section 3a, Article IX of the Ore-gon Constitution, with any city situated inwhole or in part within the county for thepurposes stated in that section.

(3) In any fiscal year, moneys given to acity under this section shall not exceed theamount of revenue raised in any manner bythe county within the boundaries of thatcity.

(4) Any sharing of revenues between acounty and city under this section is de-clared to be for a public purpose. [1981 c.335§2]

294.960 Collection and disposition ofamounts due counties. Pursuant to ORS293.250, a county may collect any moneysowed to the county pursuant to a judgmentobtained under ORS 169.151. The countyshall provide to the Department of Revenuethe amount owed and the name, Social Secu-rity number and address of the person whoowes the moneys. [2001 c.641 §1]

Note: 294.960 was enacted into law by the Legisla-tive Assembly but was not added to or made a part ofORS chapter 294 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

PENALTIES294.990 Penalties. (1) Any officer

willfully violating any of the provisions ofORS 51.340 shall, upon conviction thereof, befined not more than $25 for each offense, tobe paid into the county treasury for the ben-efit of the common schools.

(2) Unless the time is extended by thecommission, any municipal corporation sub-ject to ORS 294.605 to 294.705 which fails,neglects or refuses to submit its annual orbiennial budget to the commission on or be-fore May 15 of each fiscal year, or on or be-fore May 15 of the first fiscal year of abudget period, as provided in ORS 294.635,shall forfeit to the use of the tax supervisingand conservation commission fund $50 foreach day of such failure, refusal or neglect.

(3) Any levying board subject to ORS294.605 to 294.705 which fails, neglects orrefuses to attend any budget hearing at the



time and place fixed by the commission, orto be represented by counsel thereat, shallforfeit to the use of the tax supervising andconservation commission fund $25 for eachmember of such levying board responsible for

such failure, neglect or refusal. [Amended by1953 c.306 §17; 1971 c.267 §15; 1999 c.654 §26; 2001 c.135§30]


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