Mission
The Finance Department is committed to ensuring Molalla's fiscal strength through expert stewardship of public resources. The Finance Department provides comprehensive financial services that maintain the City's stability and integrity while ensuring full compliance with Oregon budget law. The team manages municipal finances according to rigorous accounting principles, carefully preparing and overseeing the City's annual budget to support Molalla's continued growth and community services.
Department Overview
The Finance Department operates with a dedicated team of professionals, led by a Finance Director and supported by an assistant. Together, the team oversees manages Molalla's financial operations—from general ledger, accounts receivable, accounts payable, processing payroll to utility billing, and strategic banking and investments. The department ensures the City's financial operations are in compliance with state laws and regulations, bond covenants, established financial policies, and professional accounting principals and standards.
Measuring Focus, Basis of Accounting & Budgeting
The “basis of accounting” and “basis of budgeting” determine when revenues and expenditures are recognized for the purposes of financial reporting and budget control. The City of Molalla employs a hybrid basis of accounting that is called “modified accrual”. Under this system revenues are recognized when they become measurable and available; expenditures are recognized when the obligation to pay is incurred. Where capital expenditures are concerned, this can lead to significant increases and decreases in total expenditure from year to year. Capital expenses tend to be large and unevenly timed. Enterprise funds are accounted for in the same way under the “modified accrual”.