Budget Committee Workshop February16, 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

3 What is a local government? Local Governments Community Colleges CountiesCities Special Districts Education Services Districts Schools

4 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.

5 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.

6 Budget Process Business Manager Superintendent Board of Directors Budget Management Budget Authorization Responsible for compilations Supervises budget development Appoints budget officer ORS

7 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

8 Preparing Proposed Budget by Fund Budget Funds: General fund Daily operationsWages 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 bonds2006 bond repayment Reserve fund A specific purpose PERS litigation Records Expenditures for: Such as:

9 Budget Detail Sheet

10 Expenditures by Function Function Description Instruction Support Services Enterprise and Community Services Facilities Acquisitions and Construction Other Uses (Debt Service) Contingency Unappropriated Ending Fund Balance

11 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

12 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

13 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)

14 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

15 Budget Process Publish notice of meeting Elect presiding officer Receive budget message Review proposed budget Consider public input Make changes if needed Approve Budget Budget Committee The Budget Committee’s work is finished…..

16 Board of Directors Publishes notice of public hearing Holds a public hearing Adopts the budget Makes appropriations Levies taxes Adopting the Budget

17 Operates under adopted budget beginning July 1. School District Operations

18 Questions or Comments Joseph Hunter, Superintendent Mary Knigge, Business Manager