Budget Committee WorkshopFebruary16, 2010

Oregon’s local budget law is a group of statutes that require local governments to prepare and adopt annual budgets following a very specific process.

Local budget law does several specific things:

It sets standard procedures for preparing, presenting, and using budgets for most of Oregon’s local governments.

It encourages citizen involvement in the preparation of the budget before it is formally adopted.

It provides a method for estimating expenses, resources, and proposed taxes.

It offers a way of outlining the programs and services provided by the local governments and the fiscal policy used to carry them out.

Oregon Revised Statutes 294

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What is a local government?

Local Governments

CommunityColleges

Counties Cities

Special Districts

Education Services Districts

Schools

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The Budget

• Is a financial plan for one fiscal year,

• Shows estimated requirements (costs) of items or services to purchase,

• Shows estimated resources (revenues),

• Authorizes expenditures & limits how much can be spent,

• Justifies the levy of property taxes.

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Local Budget Law Process

• Phase 1• Budget officer prepares proposed budget.• Budget must comply with Department of Revenue format.

• Phase 2• Form budget committee.• Publish special public notices.• Approve proposed budget.

• Phase 3• Adopting the budget.• Certify property taxes to the county assessor.

• Phase 4• Local government operates under adopted budget.• Changes to adopted budget must be approved before money is spent.

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Budget Process

Business Manager

Superintendent

Board of Directors

Budget M

anagement

Bud

get A

utho

riza

tion

Responsible for compilations

Supervises budget development

Appoints budget officer

ORS 294.331

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Administration Checklist

Prepare budget calendar Gather and evaluate budget requests Develop estimates of revenues and

expenditures Estimate ad valorem taxes Prepare budget proposal Prepare budget message Publish required notices & budget summary Provide citizens with information

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Preparing Proposed Budget by Fund

Budget Funds:

General fund Daily operations Wages and utilities

Special revenue fund Specific purposes Grants and food service

Capital project fund Building & acquiring GOB proceeds or

capital facilities purchasing land

Debt service fund Repayment of bonds 2006 bond repayment

Reserve fund A specific purpose PERS litigation

Records Expenditures for: Such as:

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Budget Detail Sheet

CENTRAL SD 13JANNUAL BUDGET FOR THE 2006-2007 FISCAL YEARRevenue Revenue Budget Revenue REVENUE Proposed Approved Adopted

2003-04 2004-05 2005-06 ACCT SOURCE 2006-2007 2006-2007 2006-20071000 LOCAL SOURCE REVENUE

2,793,896 2,503,263 2,534,456 R1111 Taxes-current year 1,352,000

114,748 126,722 R1112 Taxes-prior year 85,500

884 10,542 50,000 R1500 Earnings on investments 50,000

2,954,407 2,706,258 2,584,456 1000 LOCAL SOURCE REVENUE 1,487,500

5000 OTHER SOURCE REVENUE

940,305 1,677,670 500,000 R5400 Resources-beginning fund balance 1,415,231

972,705 1,677,670 500,000 5000 OTHER SOURCE REVENUE 1,415,231

3,927,111 4,383,928 3,084,456 TOTAL REVENUE 2,902,731

DEBT SERVICEFUND 301 REVENUE

2003-04 Actual Exp

2004-05 Actual Exp

Budget 2005-2006

Function Object

Proposed 2006-2007

Approved 2006-2007

Adopted2006-2007

9,383,469 1,555,000 1,705,000 610 REDEMPTION OF PRINCIPAL 1,820,000

1,002,751 720,596 629,456 620 INTEREST 582,731

132,616 640 DUES & FEES

10,518,836 2,275,596 2,334,456 TOTAL 5110 2,402,731

750,000 820 RESERVED FOR NEW YEAR 500,000

750,000 TOTAL 7000 Unappropriated Fund Balance 500,000

10,518,836 2,275,596 3,084,456 FUND TOTAL 2,902,731

FUND 301 EXPENDITURESANNUAL BUDGET FOR THE 2006/2007 FISCAL YEAR

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Expenditures by Function

Function

1000

2000

3000

4000

5000

6000

7000

Description

Instruction

Support Services

Enterprise and Community Services

Facilities Acquisitions and Construction

Other Uses (Debt Service)

Contingency

Unappropriated Ending Fund Balance

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Budget Committee Candidate

• Budget committee candidate must:• Not be an officer or employee of the district,

• Be qualified voter of the district and controlled by zone,

• Not receive compensation,

• Be appointed by the Board and

• Serve three year staggered terms.

ORS 294.336

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Budget Committee Duties

The official duties of the budget committee:

• Meet publicly to review the proposed budget

• Provide opportunity for the public to ask questions

• Approve a balanced budget

• Approve the maximum amount or rate of property taxes

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Budget Committee – cont’d

• Budget committee member does not have authority to:• Approve new personnel

• Negotiate employee contracts or salary schedules,

• Establish or eliminate specific programs or services, or

• Establish district policy.

(These functions are reserved for the Board & Superintendent)

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Budget Committee Meetings

Must be open to the public

Members have equal authorityMajority must be present

Discuss budget business only

Majority required to approve motion

Include equal number of members

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Budget Process

Publish notice of meeting

Elect presiding officer

Receive budget message

Review proposedbudget

Consider public input

Make changes if needed

Approve Budget

Budget Committee

The Budget Committee’s work is finished…..

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Board of Directors

Publishes notice of public hearing

Holds a public hearing

Adopts the budget

Makes appropriations

Levies taxes

Adopting the Budget

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Operates under adopted budget beginning July 1.

School District Operations

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Questions or Comments

Joseph Hunter, Superintendent

503-838-0030

jhunter@central.k12.or.us

Mary Knigge, Business Manager

503-606-2263

mknigge@central.k12.or.us