REQUEST FOR COUNCIL ACTION
Order ☐ Ordinance ☐ Resolution ☒ Motion ☐ Information ☐ No. 2024-3947 | |
Subject: Resolution to declare the City’s intent to prepare and adopt a biennial budget process as required by ORS 294.323(1).
| Staff: Kady Strode Department: Finance File No. |
Business Session | Order On Agenda: |
Hearing Type: Administrative | |
Date Action Requested: (December 2, 2024)
Recommendation: Adopt Resolution No. 2024-3947.
Executive Summary: Per ORS 294.323(1) Oregon Budget Law requires the governing body of a municipal corporation to enact a resolution to provide for the preparation of the budget and budget documents for a period of 24 months. ORS 294.323(2) states that a governing body shall certify to the assessor for each fiscal year of the budget period the ad valorem property tax amount or rate for the ensuing fiscal year. Additionally, ORS 294.414(5) requires that positions on the Budget Committee must be appointed to four-year terms, which one-fourth of the terms ending each year, as near as practical.
Fiscal Impact: The City’s budget will now be prepared in two-year increments instead of one-year increments.
Strategic Assessment: Moving to a biennial budget will allow for better alignment of our capital projects planning and spending, align with the State’s budget for known PERS rates, provide a longer-term outlook and planning capability, and frees up staff capacity for focus on other Council initiatives.
Budget Committee appointments will move to a four-year staggered term per ORS 294.414(5). In order to appropriately stagger the committee terms, terms ending in December 31st, 2025 will be extended one additional year to December 31st, 2026 in order to align with the new committee appointment structure.
RESOLUTION NO. 2024-3947
A Resolution to declare the City’s intent to prepare and adopt a biennial budget process as required by ORS 294.323(1). |
Recitals:
1. WHEREAS, Oregon Budget Law (ORS 294.305 to 294.565) was amended by 2001 Legislation to allow local governments to adopt biennial budgets, and
2. WHEREAS, Oregon Budget Law as provided in ORS 294.323(2) requires that when a governing body of a municipal corporation prepares a biennial budget, the governing body shall certify to the assessor for each fiscal year of the budget period the ad valorem property tax amount or rate for the ensuing fiscal year, and
3. WHEREAS, Oregon Budget Law as provided in ORS 294.414(5) requires that the positions on the Budget Committee must be appointed to four-year terms.
The City of Newberg Resolves as Follows:
Section 1. Pursuant to ORS 294.305 to 294.565, the City hereby elects to adopt a biennial budget beginning FY 2025-2027.
Effective Date of this resolution is the day after the adoption date, which is: December 3, 2024.
Adopted by the City Council of Newberg, Oregon, this 2nd day of December 2024.
__________________________
Rachel Thomas, City Recorder
Attest by the Mayor this _______ day of December, 2024.
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Bill Rosacker, Mayor