The following has been excerpted from the 2001 edition of the Local Budgeting in Oregon Supplemental. The entire supplemental can be accessed at the Oregon Department of Revenueís website   http://egov.oregon.gov/DOR/PTD/docs/local-b/504-400.pdf

Local Budgeting in Oregon is a supplement to the Local Budgeting Manual (hereafter called the Manual). This booklet will introduce you to the requirements of Oregon's Local Budget Law, but it is not a substitute for the Manual. 

What is a budget?

A budget is a financial plan containing estimates of expenditures and revenues for a single fiscal year (July 1 through June 30). Besides outlining programs for the coming year, the budget controls the local government's spending authority. Since the budgeting process encourages citizen input, the budget is also a vehicle for obtaining public opinion about proposed programs and fiscal policies of your district.

The content and detail of each budget will vary substantially because of differences in the purpose, size and complexity of local governments.

Who is on the budget committee?

The budget committee consists of the members of the local governing body (such as county commissioners or school board members) and an equal number of citizens at large. The citizens are appointed by the governing body and serve terms of three years. Terms are staggered so that about one-third of the appointed terms end each year.

The nine steps

Budgeting is not something you do once a year. It's a continuous operation, and it takes 12 months to complete a cycle. The budgeting process is actually in three parts: The budget is prepared, approved, and finally adopted. Your budget must be prepared far enough in advance so that it can be adopted before June 30. After adopting the budget, the governing body will make the necessary appropriations and certify the tax levy to the county assessor.

To simplify this rather complex process, we've divided budgeting into nine steps.

Preparing the budget

1. Budget officer appointed. Each local government must have a budget officer, either appointed by the governing body or designated in the local government's charter. The budget officer is under the supervision of either the executive officer or the governing body.
2. Proposed budget prepared. The budget officer is responsible for preparing or supervising the preparation of the proposed budget for presentation to the budget committee.  

3. Budget officer publishes notice. When the proposed budget and the budget message are ready, the budget officer publishes a "Notice of Budget Committee Meeting." If notice is published in a newspaper of general circulation, it must be published at least twice, five to 30 days before the scheduled budget committee meeting date, separated by at least five days. If notice is hand delivered or mailed, only one notice is required not later than 10 days prior to the meeting.
4. Budget committee meets. At least one meeting must be held to (1) receive the budget message and budget document, and (2) hear the public. The budget officer provides a copy of the porposed budget to each member of the budget committee. The copies may be distributed any time before the advertised budget committee meeting. It is also acceptable to wait and distribute the budget at the advertised meeting. When the budget is given to the budget committee, it becomes a public record and must be made available to the public.
   
   A majority of the budget committee members cannot get together in person, by telephone, or e-mail before the advertised meeting to discuss the budget. All budget discussions must be held at public meetings.

At the budget committee meeting, the budget message is delivered. The budget message explains the proposed budget and significant changes in the local governmentís financial position. At this meeting, the budget committee may provide members of the public the opportunity to ask questions about or comment on the budget. If public comment is not allowed at this meeting, the budget committee must provide the public with the opportunity at subsequent meetings.

After the initial meeting, the budget committee may meet as many times as needed to revise and complete the budget. If two or more meetings are held to take comment from the public, only the first meeting to do so must meet the publication requirements explained in step three. Notice of additional meetings for this or any other purpose may be provided in the same time frame and manner as notices of meetings of the governing body. Notice of other meetings of the budget committee must be provided as required by Oregon public meeting law. All meetings are open to the public.

5. Committee approves budget. When the budget committee is satisfied with the proposed budget, including any additions to or deletions from the one prepared by the budget officer, the budget is approved. If the budget requires an ad valorem tax to be in balance, the budget committee must approve an amount or rate of total ad valorem property taxes to be certified to the assessor.  

6. Budget summary and notice of budget hearing published.  After the budget is approved, a budget hearing must be held by the governing body. The budget officer must publish a summary of the budget approved by the budget committee and notice of budget hearing five to 30 days before the scheduled hearing. This information must either appear in a newspaper of general circulation, be mailed, or hand delivered.

If no newspaper is published in your district and estimated expenditures for the ensuing year do not exceed $50,000, you may provide the budget summary and notice of budget hearing by posting it in three conspicuous places within the district for at least 20 days prior to the date of the hearing.

If the district posts the budget summary and notice of budget hearing, then five to 30 days before the scheduled hearing, a second notice of budget hearing must be published in a newspaper of general circulation, mailed, or hand delivered. The second notice need not contain the summarized financial information found in the first notice. It should briefly repeat significant information about the scheduled budget hearing, and indicate where the complete budget document is available for inspection.

See the Manual for details on publication requirements.

7. Budget hearing held. The budget hearing must be held by the governing body on the date specified on the public notices.

The purpose of the hearing is to receive citizens' testimony on the budget approved by the budget committee. Additional hearings may be held. All hearings are open to the public. 

Adopting the budget

8. Budget adopted, appropriations made, tax levy declared and categorized. By law, the governing body may make changes in the approved budget before or after it is adopted, but no later than the beginning of the fiscal year to which the budget relates. However, without first publishing a revised budget summary and holding another budget hearing:
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a. Taxes may not be increased beyond the amount approved by the budget committee, and

b. Estimated expenditures in a fund may not be increased by more than $5,000 or 10 percent, whichever is greater.

After the budget hearing, and after considering relevant testimony, the governing body adopts the budget. It should not be formally adopted until the latter part of June so last-minute revisions to revenue or expenditure estimates can be incorporated.

The governing body must enact a resolution or ordinance to (1) formally adopt the budget, (2) make appropriations, and if needed, (3) levy and (4) categorize any tax. The budget is the basis for making appropriations and certifying the tax levy. The resolution or ordinance must be adopted no later than June 30. See the Manual for the format of the resolution or ordinance.

9. Budget filed and levy certified. The final step in the budget cycle is to certify any necessary property tax levy.

Districts levying a property tax must submit to the county assessor's office on or before July 15:

    --two copies of notice of levy and the categorization certification, and
    --two copies of the four resolutions.

At the same time, one copy of the complete budget should go to the county clerk. School districts also submit a copy of the budget to the county education service district office and to the Oregon Department of Education

Each local government that does not levy a property tax must send a copy of the resolution adopting its budget and making appropriations to the Department of Revenue on or before July 15. Send a copy of the complete budget to the county clerk.