Budget Committee

The Molalla Budget Committee plays a vital role in overseeing the City's financial planning and ensuring responsible use of taxpayer dollars.

The committee consists of the Molalla City Council plus an equal number of citizen members who are approved and appointed by the Council, as mandated by Oregon State Law (ORS 294.336).

Budgeting in the State of Oregon, Chapter 294.311 paragraph 5 of Oregon State Law defines a budget as:

"A plan of financial operation embodying an estimate of expenditures for a given period of purpose and the proposed means of financing the estimated expenditures".

Budget Law

Local Budget Law for local government has set out the purpose of ORS 294.305 (Sections constituting Local Budget Law) to 294.565 (Failure to file copy of required budget, reports or other documents), defines the six major purposes of local budget law:

1. To establish standard procedures for preparation, presentation, administration, and appraisal of municipal corporations;
2. To provide for a brief description of the programs of a municipal corporation and the fiscal policy which is to accomplish these programs;
3. To provide for estimation of revenues, expenditures and proposed taxes;
4. To provide specific methods for obtaining public views in the preparation of fiscal policy;
5. To provide for the control of revenues and expenditures for the promotion of efficiency and economy in the expenditure of public funds;
6. To enable the public, taxpayers and investors to be apprised of the financial policies and administration of the municipal corporation in which they are interested. 

Fiscal Year

Local government in Oregon operate on a fiscal year that begins July 1st and ends the following year, June 30th. The budgeting process requires local governments to evaluate plans and priorities with regard to the financial resources available to meet City needs. In Oregon, a budget is necessary to justify the need for a given tax rate and amount of property taxes.