Budget Law and Process

BUDGET LAW

State law requires all municipalities to prepare and adopt a budget. The City of Sandy prepares a two year budget, referred to as a biennial budget. Additional information related to budgeting in the State of Oregon be found by clicking the following links: Local Budgeting in Oregon and Local Budget Law.

THE BUDGET PROCESS

The Budget Officer (City Manager) creates the proposed budget. The proposed budget is present to the Budget Committee for consideration, deliberation, and approval. The committee consists of seven (7) citizen members appointed by the City Council, City Councilors, and the Mayor. Public notice is provided and testimony at these meetings is encouraged.

Once the budget is approved by the Budget Committee, the Council considers, deliberates, and adopts the budget.  Prior to their consideration, there is a public notice with a budget summary and several opportunities for public testimony.  The Council may make changes to the budget, but the amount of the estimated expenditure for each fund may not be increased more than 10 percent unless a summary of the revised budget is again published and another public hearing is held. Changes cannot be made to the tax rate once the Budget Committee approves the rate. 

BUDGET APPROPRIATIONS

The majority of City funds (e.g. General Fund and Enterprise Funds) are budgeted at the organizational unit level. This is generally described as an administrative subdivision of the local government which is responsible for specific services. Examples of this includes Finance, Library, Police, Water Operations, and Water Capital.

Other funds (e.g. Aquatic/Recreation and Debt Service Funds) are budgeted at the objection classification level. This includes personnel services, materials and services, debt service, etc.

Expenditures cannot exceed the appropriated amount, which is set via resolution at the time the budget is adopted. 
 

CHANGES TO THE ADOPTED BUDGET

The budget changes after adoption are permitted under Oregon Revised Statutes (ORS) Chapter 294; Appropriation Transfers (294.463) and Supplemental Budgets (294.471 & 294.473).