As Reported by the House Local Government and Townships Committee 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 426 5
1997-1998 6
REPRESENTATIVES CLANCY-CATES-BATEMAN-GARCIA-GRENDELL-PRINGLE- 8
SCHULER-WILLIAMS-CORBIN-SAWYER-REID-SCHUCK-VESPER-VAN VYVEN- 9
ROMAN-HOTTINGER-PADGETT-TAYLOR-LEWIS-CALLENDER-CAREY- 10
OPFER-MOTTLEY-TERWILLEGER-SULZER-O'BRIEN 11
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A B I L L
To amend sections 3316.03, 5705.12, 5705.29, 15
5705.35, 5705.36, 5747.51, and 5747.62; to amend, 16
for the purpose of adopting a new section number 17
as indicated in parentheses, section 5705.13 18
(5705.121); to enact new section 5705.13 and 19
section 5705.131; and to repeal sections 305.23, 20
505.83, and 505.831 of the Revised Code to permit 21
taxing authorities of subdivisions to create 22
accounts in which funds may be reserved for 23
budget stabilization, self-insurance claim 24
payments, the payment of claims under 25
retrospective ratings plans for workers' 27
compensation, accumulated employee leave, 28
capital projects, and nonexpendable trusts, and 29
to specify that certain amounts in such reserves 31
shall not affect revenue distributions to 32
certain subdivisions through local government 33
funds. 34
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 36
Section 1. That sections 3316.03, 5705.12, 5705.29, 38
5705.35, 5705.36, 5747.51, and 5747.62 be amended, section 39
5705.13 (5705.121) be amended for the purpose of adopting a new 40
section number as indicated in parentheses, and new section 41
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5705.13 and section 5705.131 of the Revised Code be enacted to 42
read as follows:
Sec. 3316.03. (A) The auditor of state shall declare a 51
school district to be in a state of fiscal watch if the auditor 52
of state determines that all of the following conditions are 53
satisfied with respect to the school district: 54
(1) An operating deficit has been certified for the 56
current fiscal year by the auditor of state under section 57
3313.483 of the Revised Code, and the certified operating deficit 59
exceeds eight per cent of the school district's general fund 60
revenue for the preceding fiscal year; 61
(2) The unencumbered cash balance in the school district's 64
general fund at the close of the preceding fiscal year, less any 65
advances of property taxes, was less than eight per cent of the 66
expenditures made from the general fund for the preceding fiscal 67
year;
(3) A majority of the voting electors have not voted in 69
favor of levying a tax under section 5705.194 or 5705.21 or 70
Chapter 5748. of the Revised Code that the auditor of state 71
expects will raise enough additional revenue in the next 72
succeeding fiscal year that divisions (A)(1) and (2) of this 73
section will not apply to the district in such next succeeding 74
fiscal year.
(B) The auditor of state, after consulting with the 76
superintendent of public instruction, shall issue an order 77
declaring a school district to be in a state of fiscal emergency 78
if the school district board fails, pursuant to section 3316.04 79
of the Revised Code, to submit a plan acceptable to the state
superintendent of public instruction within one hundred twenty 80
days of the auditor's declaration pursuant to division (A) of 81
this section, or if the auditor of state determines that all of 82
the following conditions are satisfied with respect to the school 84
district:
(1) The board of education of the school district is not 86
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able to demonstrate, to the auditor of state's satisfaction, the 87
district's ability to repay outstanding loans received pursuant 88
to section 3313.483 of the Revised Code or to repay securities 89
issued pursuant to section 133.301 of the Revised Code in 90
accordance with applicable repayment schedules unless the board 91
requests additional loans under section 3313.483 and section 92
133.301 of the Revised Code in an aggregate principal amount 94
exceeding fifty per cent of the sum of the following: 95
(a) The aggregate original principal amount of loans 98
received in the preceding fiscal year under section 3313.483 of 99
the Revised Code;
(b) The aggregate amount borrowed by the district under 101
section 133.301 of the Revised Code, excluding any additional 102
amount borrowed as authorized under division (C) of that section. 103
(2) An operating deficit has been certified for the 105
current fiscal year by the auditor of state under section 106
3313.483 of the Revised Code, and the certified operating deficit 108
exceeds fifteen per cent of the school district's general fund 109
revenue for the preceding fiscal year. In determining the amount 110
of an operating deficit under division (B)(2) of this section, 111
the auditor of state shall credit toward the amount of that 112
deficit only the amount that may be borrowed from the spending 113
reserve balance as determined under section 133.301 and division 114
(G)(F) of section 5705.29 of the Revised Code;. 115
(3) A majority of the voting electors have not voted in 117
favor of levying a tax under section 5705.194 or 5705.21 or 118
Chapter 5748. of the Revised Code that the auditor of state 119
expects will raise enough additional revenue in the next 120
succeeding fiscal year that divisions (A)(1) and (2) of this 121
section will not apply to the district in such next succeeding 122
fiscal year.
(4) The school district is one that, at the time of the 124
auditor of state's determination under this section, had an 125
average daily membership of more than ten thousand students as 126
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most recently reported to the department of education pursuant to 128
division (A) of section 3317.03 of the Revised Code. 129
(C) In making the determinations under this section, the 131
auditor of state may use financial reports required under section 133
117.43 of the Revised Code; tax budgets, certificates of 134
estimated resources and amendments thereof, annual appropriating 135
measures and spending plans, and any other documents or 136
information prepared pursuant to Chapter 5705. of the Revised 137
Code; and any other documents, records, or information available 138
to the auditor of state that indicate the conditions described in 139
divisions (A) and (B) of this section.
(D) The auditor of state shall certify the action taken 141
under division (A) or (B) of this section to the board of 142
education of the school district, the director of budget and 143
management, the mayor or county auditor who could be required to 144
act pursuant to division (B)(1) of section 3316.05 of the Revised
Code, and to the superintendent of public instruction. 145
(E) A determination by the auditor of state under this 147
section that a fiscal emergency condition does not exist is final 148
and conclusive and not appealable. A determination by the 149
auditor of state under this section that a fiscal emergency 150
exists is final, except that the board of education of the school 151
district affected by such a determination may appeal the
determination of the existence of a fiscal emergency condition to 152
the court of appeals having territorial jurisdiction over the 153
school district. The appeal shall be heard expeditiously by the 154
court of appeals and for good cause shown shall take precedence 155
over all other civil matters except earlier matters of the same 156
character. Notice of such appeal must be filed with the auditor
of state and such court within thirty days after certification by 157
the auditor of state to the board of education of the school 158
district provided for in division (D) of this section. In such 159
appeal, determinations of the auditor of state shall be presumed 160
to be valid and the board of education shall have the burden of 161
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proving, by clear and convincing evidence, that each of the 162
determinations made by the auditor of state as to the existence
of a fiscal emergency condition under this section was in error. 163
If the board of education fails, upon presentation of its case, 164
to prove by clear and convincing evidence that each such 165
determination by the auditor of state was in error, the court 166
shall dismiss the appeal. The board of education and the auditor 167
of state may introduce any evidence relevant to the existence or
nonexistence of such fiscal emergency conditions. The pendency 168
of any such appeal shall not affect or impede the operations of 169
this chapter; no restraining order, temporary injunction, or 170
other similar restraint upon actions consistent with this chapter 171
shall be imposed by the court or any court pending determination 172
of such appeal; and all things may be done under this chapter 173
that may be done regardless of the pendency of any such appeal.
Any action taken or contract executed pursuant to this chapter 174
during the pendency of such appeal is valid and enforceable among 175
all parties, notwithstanding the decision in such appeal. If the 176
court of appeals reverses the determination of the existence of a 177
fiscal emergency condition by the auditor of state, the 178
determination no long LONGER has any effect, and any procedures 179
undertaken as a result of the determination shall be terminated. 180
Sec. 5705.12. In addition to the funds provided for by 189
sections 5705.09 and, 5705.121, 5705.13, AND 5705.131 of the 191
Revised Code, the taxing authority of a subdivision may 192
establish, with the approval of and in the manner prescribed by 193
the auditor of state, such other funds as are desirable, and may 194
provide by ordinance or resolution that money derived from 195
specified sources other than the general property tax shall be 196
paid directly into such funds. The auditor of state shall 197
consult with the tax commissioner before giving his approval 198
APPROVING SUCH FUNDS.
Sec. 5705.13 5705.121. A municipal corporation may 207
establish in the manner provided by law a sanitary police pension 209
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fund, an urban redevelopment tax increment equivalent fund, or a 210
cemetery fund. A township may establish by law a cemetery fund. 211
Sec. 5705.13. (A) A TAXING AUTHORITY OF A SUBDIVISION, BY 213
RESOLUTION OR ORDINANCE, MAY ESTABLISH A RESERVE BALANCE ACCOUNT 215
TO ACCUMULATE CURRENTLY AVAILABLE RESOURCES FOR ANY OF THE 216
FOLLOWING PURPOSES:
(1) TO STABILIZE SUBDIVISION BUDGETS AGAINST CYCLICAL 218
CHANGES IN REVENUES AND EXPENDITURES; 219
(2) EXCEPT AS OTHERWISE PROVIDED BY THIS SECTION, TO 221
PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A SELF-INSURANCE PROGRAM 222
FOR THE SUBDIVISION, IF THE SUBDIVISION IS PERMITTED BY LAW TO 223
ESTABLISH SUCH A PROGRAM;
(3) TO PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A 225
RETROSPECTIVE RATINGS PLAN FOR WORKERS' COMPENSATION. 226
THE ORDINANCE OR RESOLUTION ESTABLISHING A RESERVE BALANCE 228
ACCOUNT SHALL STATE THE PURPOSE FOR WHICH THE RESERVE BALANCE 229
ACCOUNT IS ESTABLISHED, THE FUND IN WHICH THE ACCOUNT IS TO BE 230
ESTABLISHED, AND THE TOTAL AMOUNT OF MONEY TO BE RESERVED IN THE 231
ACCOUNT.
A SUBDIVISION THAT PARTICIPATES IN A RISK-SHARING POOL, BY 233
WHICH GOVERNMENTS POOL RISKS AND FUNDS AND SHARE IN THE COSTS OF 234
LOSSES, SHALL NOT ESTABLISH A RESERVE BALANCE ACCOUNT TO PROVIDE 235
SELF-INSURANCE FOR THE SUBDIVISION. 236
A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT HAVE MORE 238
THAN THREE RESERVE BALANCE ACCOUNTS AT ANY TIME. NOT MORE THAN 240
ONE RESERVE BALANCE ACCOUNT MAY BE ESTABLISHED FOR EACH OF THE 241
PURPOSES PERMITTED UNDER THIS SECTION. MONEY TO THE CREDIT OF A 242
RESERVE BALANCE ACCOUNT MAY BE EXPENDED ONLY FOR THE PURPOSE FOR 243
WHICH THE ACCOUNT WAS ESTABLISHED.
A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE 245
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION SHALL BE ESTABLISHED 246
IN THE GENERAL FUND OF THE SUBDIVISION, AND THE AMOUNT OF MONEY 247
TO BE RESERVED IN THAT ACCOUNT IN ANY FISCAL YEAR SHALL NOT 248
EXCEED FIVE PER CENT OF THE GENERAL FUND REVENUE FOR THE 249
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PRECEDING FISCAL YEAR. SUBJECT TO DIVISION (G) OF SECTION 250
5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT 251
ESTABLISHED UNDER DIVISION (A)(1) OF THIS SECTION SHALL NOT BE 252
CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF THE 253
SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION 254
(A)(1) OF SECTION 5705.36 OF THE REVISED CODE. 255
AT ANY TIME, A TAXING AUTHORITY OF A SUBDIVISION, BY 257
RESOLUTION OR ORDINANCE, MAY REDUCE OR ELIMINATE THE RESERVE 259
BALANCE IN A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE 260
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION. 261
A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE 263
DESCRIBED IN DIVISION (A)(2) OR (3) OF THIS SECTION SHALL BE 265
ESTABLISHED IN THE GENERAL FUND OF THE SUBDIVISION OR BY THE 267
ESTABLISHMENT OF A SEPARATE INTERNAL SERVICE FUND ESTABLISHED TO 268
ACCOUNT FOR THE OPERATION OF THE SELF-INSURANCE OR RETROSPECTIVE 269
RATINGS PLAN PROGRAM, AND SHALL BE BASED ON SOUND ACTUARIAL 270
PRINCIPLES. THE TOTAL AMOUNT OF MONEY IN A RESERVE BALANCE 271
ACCOUNT FOR SELF-INSURANCE MAY BE EXPRESSED IN DOLLARS OR AS THE 272
AMOUNT DETERMINED TO REPRESENT AN ADEQUATE RESERVE ACCORDING TO 273
SOUND ACTUARIAL PRINCIPLES. 274
A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 276
ORDINANCE, MAY RESCIND A RESERVE BALANCE ACCOUNT ESTABLISHED 277
UNDER THIS DIVISION. IF A RESERVE BALANCE ACCOUNT IS RESCINDED, 278
MONEY THAT HAS ACCUMULATED IN THE ACCOUNT SHALL BE TRANSFERED TO 279
THE FUND OR FUNDS FROM WHICH THE MONEY ORIGINALLY WAS 280
TRANSFERRED.
(B) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 282
ORDINANCE, MAY ESTABLISH A SPECIAL REVENUE FUND FOR THE PURPOSE 284
OF ACCUMULATING RESOURCES FOR THE PAYMENT OF ACCUMULATED SICK 285
LEAVE AND VACATION LEAVE, AND FOR PAYMENTS IN LIEU OF TAKING 286
COMPENSATORY TIME OFF, UPON THE TERMINATION OF EMPLOYMENT OR THE 287
RETIREMENT OF OFFICERS AND EMPLOYEES OF THE SUBDIVISION. 288
NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 OF THE
REVISED CODE, THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, 289
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MAY TRANSFER MONEY TO THE SPECIAL REVENUE FUND FROM ANY OTHER 291
FUND OF THE SUBDIVISION FROM WHICH SUCH PAYMENTS MAY LAWFULLY BE 292
MADE. THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, MAY 293
RESCIND A SPECIAL REVENUE FUND ESTABLISHED UNDER THIS DIVISION.
IF A SPECIAL REVENUE FUND IS RESCINDED, MONEY THAT HAS 294
ACCUMULATED IN THE FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS 295
FROM WHICH THE MONEY ORIGINALLY WAS TRANSFERRED. 296
(C) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 298
ORDINANCE, MAY ESTABLISH A CAPITAL PROJECTS FUND FOR THE PURPOSE 299
OF ACCUMULATING RESOURCES FOR THE ACQUISITION, CONSTRUCTION, OR 300
IMPROVEMENT OF FIXED ASSETS OF THE SUBDIVISION. MORE THAN ONE 301
CAPITAL PROJECTS FUND MAY BE ESTABLISHED AND MAY EXIST AT ANY 302
TIME. THE ORDINANCE OR RESOLUTION SHALL IDENTIFY THE SOURCE OF 303
THE MONEY TO BE USED TO ACQUIRE, CONSTRUCT, OR IMPROVE THE FIXED 304
ASSETS IDENTIFIED IN THE RESOLUTION OR ORDINANCE, THE AMOUNT OF
MONEY TO BE ACCUMULATED FOR THAT PURPOSE, THE PERIOD OF TIME OVER 305
WHICH THAT AMOUNT IS TO BE ACCUMULATED, AND THE FIXED ASSETS THAT 306
THE TAXING AUTHORITY INTENDS TO ACQUIRE, CONSTRUCT, OR IMPROVE 307
WITH THE MONEY TO BE ACCUMULATED IN THE FUND. 308
A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT ACCUMULATE 310
MONEY IN A CAPITAL PROJECTS FUND FOR MORE THAN FIVE YEARS AFTER 312
THE RESOLUTION OR ORDINANCE ESTABLISHING THE FUND IS ADOPTED. IF 313
THE SUBDIVISION HAS NOT ENTERED INTO A CONTRACT FOR THE 314
ACQUISITION, CONSTRUCTION, OR IMPROVEMENT OF FIXED ASSETS FOR 315
WHICH MONEY WAS ACCUMULATED IN SUCH A FUND BEFORE THE END OF THAT 316
FIVE-YEAR PERIOD, THE FISCAL OFFICER OF THE SUBDIVISION SHALL 318
TRANSFER ALL MONEY IN THE FUND TO THE FUND OR FUNDS FROM WHICH
THAT MONEY ORIGINALLY WAS TRANSFERRED OR THE FUND THAT ORIGINALLY 319
WAS INTENDED TO RECEIVE THE MONEY. 320
A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR 322
ORDINANCE, MAY RESCIND A CAPITAL PROJECTS FUND. IF A CAPITAL 324
PROJECTS FUND IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE 325
FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH THE 326
MONEY ORIGINALLY WAS TRANSFERRED.
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NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 OF 328
THE REVISED CODE, THE TAXING AUTHORITY OF A SUBDIVISION, BY 329
RESOLUTION OR ORDINANCE, MAY TRANSFER MONEY TO THE CAPITAL 331
PROJECTS FUND FROM ANY OTHER FUND OF THE SUBDIVISION THAT MAY
LAWFULLY BE USED FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, OR 333
IMPROVING THE FIXED ASSETS IDENTIFIED IN THE RESOLUTION OR 334
ORDINANCE.
Sec. 5705.131. A TAXING AUTHORITY OF A SUBDIVISION MAY 336
ESTABLISH A NONEXPENDABLE TRUST FUND FOR THE PURPOSE OF RECEIVING 337
DONATIONS OR CONTRIBUTIONS THAT THE DONOR OR CONTRIBUTOR REQUIRES 338
TO BE MAINTAINED INTACT. THE PRINCIPAL OF SUCH FUND MAY BE 339
INVESTED, AND THE INVESTMENT EARNINGS ON THE PRINCIPAL SHALL BE 340
CREDITED TO THE FUND. THE PRINCIPAL OF THE FUND, AND ANY 341
ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE 343
REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THE FUND, SHALL 344
NOT BE CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF
THE SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION 345
(A)(1) OF SECTION 5705.36 OF THE REVISED CODE. ONLY INVESTMENT 347
EARNINGS ARISING FROM INVESTMENT OF THE PRINCIPAL OR INVESTMENT
OF SUCH ADDITIONS TO PRINCIPAL MAY BE CONSIDERED AN UNENCUMBERED 348
BALANCE OR REVENUE OF THE SUBDIVISION UNDER THAT DIVISION. 349
Sec. 5705.29. The tax budget shall present the following 358
information in such detail as is prescribed by the auditor of 359
state, unless an alternative form of the budget is permitted 360
under section 5705.281 of the Revised Code: 361
(A)(1) A statement of the necessary current operating 363
expenses for the ensuing fiscal year for each department and 364
division of the subdivision, classified as to personal services 365
and other expenses, and the fund from which such expenditures are 366
to be made. Except in the case of a school district, this 367
estimate may include a contingent expense not designated for any 368
particular purpose, and not to exceed three per cent of the total 369
amount of appropriations for current expenses. In the case of a 370
school district, this estimate may include a contingent expense 371
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not designated for any particular purpose and not to exceed 372
thirteen per cent of the total amount of appropriations for 373
current expenses. 374
(2) A statement of the expenditures for the ensuing fiscal 376
year necessary for permanent improvements, exclusive of any 377
expense to be paid from bond issues, classified as to the 378
improvements contemplated by the subdivision and the fund from 379
which such expenditures are to be made; 380
(3) The amounts required for the payment of final 382
judgments; 383
(4) A statement of expenditures for the ensuing fiscal 385
year necessary for any purpose for which a special levy is 386
authorized, and the fund from which such expenditures are to be 387
made; 388
(5) Comparative statements, so far as possible, in 390
parallel columns of corresponding items of expenditures for the 391
current fiscal year and the two preceding fiscal years. 392
(B)(1) An estimate of receipts from other sources than the 394
general property tax during the ensuing fiscal year, which shall 395
include an estimate of unencumbered balances at the end of the 396
current fiscal year, and the funds to which such estimated 397
receipts are credited; 398
(2) The amount each fund requires from the general 400
property tax, which shall be the difference between the 401
contemplated expenditure from the fund and the estimated 402
receipts, as provided in this section. The section of the 403
Revised Code under which the tax is authorized shall be set 404
forth. 405
(3) Comparative statements, so far as possible, in 407
parallel columns of taxes and other revenues for the current 408
fiscal year and the two preceding fiscal years. 409
(C)(1) The amount required for debt charges; 411
(2) The estimated receipts from sources other than the tax 413
levy for payment of such debt charges, including the proceeds of 414
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refunding bonds to be issued to refund bonds maturing in the next 415
succeeding fiscal year; 416
(3) The net amount for which a tax levy shall be made, 418
classified as to bonds authorized and issued prior to January 1, 419
1922, and those authorized and issued subsequent to such date, 420
and as to what portion of the levy will be within and what in 421
excess of the ten-mill limitation. 422
(D) An estimate of amounts from taxes authorized to be 424
levied in excess of the ten-mill limitation on the tax rate, and 425
the fund to which such amounts will be credited, together with 426
the sections of the Revised Code under which each such tax is 427
exempted from all limitations on the tax rate. 428
(E)(1) A board of education may include in its budget for 430
the fiscal year in which a levy proposed under section 5705.194, 431
5705.21, or 5705.213, or the original levy under section 5705.212 432
of the Revised Code is first extended on the tax list and 433
duplicate an estimate of expenditures to be known as a voluntary 434
contingency reserve balance, which shall not be greater than 435
twenty-five per cent of the total amount of the levy estimated to 436
be available for appropriation in such year. 437
(2) A board of education may include in its budget for the 439
fiscal year following the year in which a levy proposed under 440
section 5705.194, 5705.21, or 5705.213, or the original levy 441
under section 5705.212 of the Revised Code is first extended on 442
the tax list and duplicate an estimate of expenditures to be 443
known as a voluntary contingency reserve balance, which shall not 444
be greater than twenty per cent of the amount of the levy 445
estimated to be available for appropriation in such year. 446
(3) Except as provided in division (E)(4) of this section, 448
the full amount of any reserve balance the board includes in its 449
budget shall be retained by the county auditor and county 450
treasurer out of the first semiannual settlement of taxes until 451
the beginning of the next succeeding fiscal year, and thereupon, 452
with the depository interest apportioned thereto, it shall be 453
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turned over to the board of education, to be used for the 454
purposes of such fiscal year. 455
(4) A board of education may, by a two-thirds vote of all 457
members of the board, MAY appropriate any amount withheld as a 458
voluntary contingency reserve balance during the fiscal year for 459
any lawful purpose, provided that prior to such appropriation the 460
board of education has authorized the expenditure of all amounts 461
appropriated for contingencies under section 5705.40 of the 462
Revised Code. Upon request by the board of education, the county 463
auditor shall draw a warrant on the district's account in the 464
county treasury payable to the district in the amount requested. 465
(F)(1) As used in this division, "police or fire 467
department equipment expenditures" includes expenditures for 468
equipment used to provide ambulance or emergency medical services 469
operated by a police or fire department. 470
A board of township trustees may include in its budget an 473
estimate of expenditures to be known as a reserve balance for 474
police or fire department equipment or road maintenance equipment 475
expenditures. This reserve balance shall not exceed ten per cent 476
of the total estimated appropriations included in the township 477
budget estimate. If, in accordance with division (A) of section 478
505.83 of the Revised Code, the board of township trustees has 479
unanimously adopted a resolution establishing the reserve balance 480
account and specifying the reason for its creation and has 481
certified the resolution to the county auditor, the full amount 482
of the reserve balance, as allowed by the budget commission, 483
shall be turned over to the township each year by the county 484
auditor and county treasurer out of the second semiannual 485
settlement of taxes until the date specified in the resolution, 486
which shall not be later than five years from the date of the 487
first such deposit in the account, or until the reserve amount 488
has been reached, whichever occurs first. 489
(2) Upon receipt of a certified copy of a resolution to 491
rescind the creation of a township reserve balance account 492
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pursuant to division (B) of section 505.83 of the Revised Code, 493
the county auditor shall close the account and transfer the 494
account moneys and depository interest apportioned to it to the 495
township's general fund. 496
(G) A board of education may include in its budget a 498
spending reserve, which shall consist of an estimate of 499
expenditures not to exceed the district's spending reserve 500
balance. A district's spending reserve balance is the amount by 501
which fifty per cent of the district's estimated personal 502
property taxes to be settled during the calendar year in which 503
the fiscal year ends exceeds the estimated amount of personal 504
property taxes to be so settled and received by the district 505
during that fiscal year. Moneys from a spending reserve shall be 506
appropriated in accordance with section 133.301 of the Revised 507
Code. 508
(H) As used in this division: 510
(1) "Police or fire department equipment expenditures" 512
includes expenditures for equipment used to provide ambulance or 513
emergency medical services operated by a police or fire 514
department.
(2) "Detention facility" means any place used for the 516
confinement of a person charged with or convicted of any crime or 518
alleged or found to be a delinquent or unruly child.
The legislative authority of a municipal corporation may 520
include in its budget an estimate of expenditures to be known as 521
a reserve balance for police or fire department equipment 522
expenditures, for constructing, acquiring, equipping, or 523
repairing a detention facility, or for road maintenance equipment 524
expenditures by creating, by ordinance or resolution, a reserve 525
balance account. Money credited to the account may be derived 526
from any general fund sources or from the proceeds of a special 527
levy that may be used for the purpose for which the account is 528
established. The ordinance or resolution shall state that money 529
in the account may be expended only for the purpose for which the 530
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account is established, that the account will be maintained until 532
a specified date not to exceed five years from the date of the 533
first deposit in the account, and that the total amount of money 534
in all reserve balance accounts derived from general fund sources 535
shall not exceed ten per cent of the current total estimated 536
expenditures from the municipal corporation's general fund, and 537
the total amount of money in all reserve balance accounts derived 538
from a special levy shall not exceed ten per cent of the current 539
total estimated expenditures from the special levy. The 540
legislative authority shall certify a copy of the ordinance or 541
resolution to the county auditor. Upon receiving the certified 542
copy, the county auditor and county treasurer shall turn over to 543
the municipal corporation, out of the second semiannual 545
settlement of taxes, any amount of the reserve balance to be
derived from property tax sources, but only until the date 547
specified in the ordinance or resolution or until the reserve 548
amount as indicated in the ordinance or resolution has been 549
reached, whichever occurs first.
A legislative authority may create a separate reserve 550
balance account under this division for police department 551
equipment expenditures, fire department equipment expenditures, 552
or ambulance or emergency medical services equipment 553
expenditures, or any combination thereof. Each such account is 554
subject to the provisions of this section regarding a single 555
account for all such purposes. 556
Upon receiving a certified copy of an ordinance or 558
resolution to rescind the creation of a municipal reserve balance 559
account, the county auditor shall close the account and transfer 560
all money in the account to the municipal general fund, if the 561
account is derived from the general fund, or to the fund to which 562
proceeds of the special levy are credited, if the account is 563
derived from the proceeds of a special levy. 564
(I) A board of county commissioners that has adopted a 567
resolution establishing a reserve balance account under section 568
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305.23 of the Revised Code may include in its budget an estimate 570
of expenditures to be known as a reserve balance for the purpose 571
for which the account was established under that section. The 572
reserve shall not exceed ten per cent of the total estimated 573
appropriations included in the budget estimate of the general 574
fund in the case of a reserve balance account established under 575
division (A) of that section, or ten per cent of the total 577
estimated appropriations included in the budget estimate of the 578
special fund in which the account is established in the case of a 579
reserve balance account established under division (B) of that 580
section. If the board of county commissioners has certified a 581
copy of a resolution to the county auditor pursuant to that 582
section, the county auditor and county treasurer shall deposit 583
the amount of the annual reserve balance into the reserve balance 584
account out of the second semiannual settlement of taxes until 585
the date specified in that resolution, or until the reserve 586
amount specified in the resolution has been reached, whichever 587
occurs first.
Upon receiving a certified copy of a resolution rescinding 589
a reserve balance account, the county auditor shall close the 590
account and transfer all money in the account to a special fund 591
created for the purpose of receiving that money. Money deposited 593
into the fund from the reserve balance account shall be expended 594
only for the purpose for which the account was established. 595
(J) The (G) EXCEPT AS OTHERWISE PROVIDED IN THIS DIVISION, 597
THE county budget commission shall not reduce the taxing 599
authority of a board of township trustees, a board of county 600
commissioners, or the legislative authority of a municipal 601
corporation SUBDIVISION as a result of the creation of a reserve 602
balance account, and. EXCEPT AS OTHERWISE PROVIDED IN THIS 603
DIVISION, THE COUNTY BUDGET COMMISSION shall not consider the 604
amount in a reserve balance account OF A TOWNSHIP, COUNTY, OR 605
MUNICIPAL CORPORATION as an unencumbered balance or as revenue 607
for the purposes of division (E)(3) or (4) of section 5747.51 or 608
16
division (E)(3) or (4) of section 5747.62 of the Revised Code. 609
THE COUNTY BUDGET COMMISSION MAY REQUIRE DOCUMENTATION OF THE 610
REASONABLENESS OF THE RESERVE BALANCE HELD IN ANY RESERVE BALANCE 611
ACCOUNT. THE COMMISSION SHALL CONSIDER ANY AMOUNT IN A RESERVE 612
BALANCE ACCOUNT THAT IT DETERMINES TO BE UNREASONABLE AS
UNENCUMBERED AND AS REVENUE FOR THE PURPOSES OF SECTIONS 5747.51 613
AND 5747.62 OF THE REVISED CODE AND MAY TAKE SUCH AMOUNTS INTO 614
CONSIDERATION WHEN DETERMINING WHETHER TO REDUCE THE TAXING 615
AUTHORITY OF A SUBDIVISION.
Sec. 5705.35. (A) The certification of the budget 625
commission to the taxing authority of each subdivision or taxing 626
unit, as set forth in section 5705.34 of the Revised Code, shall 627
show the various funds of such subdivisions other than funds to 628
be created by transfer and shall be filed by the county budget 629
commission with such taxing authority on or before the first day 630
of March in the case of school districts and on or before the 631
first day of September in each year in the case of all other 632
taxing authorities. There shall be set forth on the credit side 633
of each fund the estimated unencumbered balances and receipts, 634
and if a tax is to be levied for such fund, the estimated revenue 635
to be derived therefrom, the rate of the levy, and what portion 636
thereof is within, and what in excess of, the ten-mill tax 637
limitation, and on the debit side, the total appropriations that 638
may be made therefrom. SUBJECT TO DIVISION (G) OF SECTION 639
5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT 640
ESTABLISHED UNDER SECTION 5705.13 OF THE REVISED CODE FOR THE 642
PURPOSE DESCRIBED IN DIVISION (A)(1) OF THAT SECTION, AND THE 643
PRINCIPAL OF A NONEXPENDABLE TRUST FUND ESTABLISHED UNDER SECTION 645
5705.131 OF THE REVISED CODE AND ANY ADDITIONS TO PRINCIPAL
ARISING FROM SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT 646
EARNINGS ARISING FROM THAT FUND, ARE NOT UNENCUMBERED BALANCES 647
FOR THE PURPOSES OF THIS SECTION. There shall be attached 649
thereto TO THE CERTIFICATION a summary, which shall be known as 651
the "official certificate of estimated resources," which THAT 652
17
shall state the total estimated resources of each fund of the 654
subdivision that are available for appropriation in the fiscal 655
year, other than funds to be created by transfer, and a statement 656
of the amount of the total tax duplicate of the school district 657
to be used in the collection of taxes for the following calendar 658
year. Before the end of the fiscal year, the taxing authority of 659
each subdivision and other taxing unit shall revise its tax 660
budget so that the total contemplated expenditures from any fund 661
during the ensuing fiscal year will not exceed the total 662
appropriations that may be made from such fund, as determined by 663
the budget commission in its certification; and such revised 664
budget shall be the basis of the annual appropriation measure. 665
(B)(1) Except as otherwise provided in division (B)(2) of 667
this section, revenues from real property taxes scheduled to be 668
settled on or before the tenth day of August and the fifteenth 669
day of February of a fiscal year under divisions (A) AND (C) and 671
(A) of section 321.24 of the Revised Code, and revenue from taxes 672
levied on personal property used in business scheduled to be 673
settled on or before the thirty-first day of October and the 674
thirtieth day of June of a fiscal year under divisions (B) AND 675
(D) and (B) of section 321.24 of the Revised Code shall not be 677
available for appropriation by a board of education prior to the 678
fiscal year in which such latest scheduled settlement date 679
occurs, except that moneys advanced to the treasurer of a board 680
of education under division (A)(2)(b) of section 321.34 of the 681
Revised Code shall be available for appropriation in the fiscal 682
year in which they are paid to the treasurer under such section. 683
If the date for any settlement of taxes is extended under 684
division (E) of section 321.24 of the Revised Code, the latest 685
date set forth in divisions (A) to (D) of that section shall be 686
used to determine in which fiscal year the revenues are first 687
available for appropriation. 688
(2) Revenues available for appropriation by a school 690
district during a fiscal year may include amounts borrowed in 691
18
that fiscal year under section 133.301 of the Revised Code in 692
anticipation of the collection of taxes that are to be included 693
in the settlements made under divisions (C) and (D) of section 694
321.24 of the Revised Code in the ensuing fiscal year. 695
Sec. 5705.36. (A)(1) On or about the first day of each 704
fiscal year, the fiscal officer of each subdivision and other 705
taxing unit shall certify to the county auditor the total amount 706
from all sources available for expenditures from each fund set up 707
in the tax budget or, if adoption of a tax budget was waived 708
under section 5705.281 of the Revised Code, from each fund 709
created by or on behalf of the taxing authority. The amount 710
certified shall include any UNENCUMBERED balances that existed at 711
the end of the preceding year, EXCLUDING ANY OF THE FOLLOWING: 712
(a) SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE 715
REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT ESTABLISHED UNDER 716
SECTION 5705.13 OF THE REVISED CODE FOR THE PURPOSE DESCRIBED IN 717
DIVISION (A)(1) OF THAT SECTION; 718
(b) THE PRINCIPAL OF A NONEXPENDABLE TRUST FUND 720
ESTABLISHED UNDER SECTION 5705.131 OF THE REVISED CODE AND ANY 721
ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE 722
REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THAT FUND. 723
A school district's certification shall separately show the 725
amount of any notes and unpaid and outstanding expenses on the 726
preceding thirtieth day of June that are to be paid from property 727
taxes that are to be settled during the current fiscal year under 728
divisions (C) and (D) of section 321.24 of the Revised Code, and 729
the amount of any spending reserve available for appropriation 730
during the current fiscal year under section 133.301 of the 731
Revised Code. The budget commission, taking into consideration 732
the balances and revenues to be derived from taxation and other 733
sources, shall revise its estimate of the amounts that will be 734
credited to each fund from such sources, and shall certify to the 735
taxing authority of each subdivision an amended official 736
certificate of estimated resources. If the subdivision collects 737
19
revenue available for the purposes of such fiscal year from a new 738
source that is not included in an official certificate, or if the 739
actual balances and receipts in any fund exceed the certified 740
estimate, then upon the certification by its fiscal officer of 741
the amount of the excess balances and receipts, the commission 742
shall certify an amended official certificate including them. 743
(2) Upon a determination by the treasurer of a board of 745
education that the revenue to be collected by a school district 746
will be greater or less than the amount included in an official 747
certificate, the treasurer shall certify the amount of the 748
deficiency or excess to the commission, and the commission shall 749
certify an amended official certificate reflecting the deficiency 750
or excess. 751
(3) Upon a determination by the county auditor that the 753
revenue to be collected by the county will be greater or less 754
than the amount included in an official certificate, the county 755
auditor shall certify the amount of the deficiency or excess to 756
the commission, and if the commission determines that the 757
auditor's certification is reasonable, the commission shall 758
certify an amended official certificate reflecting the deficiency 759
or excess. 760
(4) Upon a determination by the fiscal officer of a 762
municipal corporation that the revenue to be collected by the 763
municipal corporation will be greater or less than the amount 764
included in the AN official certificate, the fiscal officer shall 766
certify the amount of the excess or deficiency to the commission, 767
and if the commission determines that the fiscal officer's 768
certification is reasonable, the commission shall certify an 769
amended official certificate reflecting the deficiency or excess. 770
(5) The total appropriations made during the fiscal year 772
from any fund shall not exceed the amount set forth as available 773
for expenditure from such fund in the official certificate of 774
estimated resources, or any amendment thereof, certified prior to 775
the making of the appropriation or supplemental appropriation. 776
20
(B) At the time of settlement of taxes against which notes 778
have been issued under section 133.301 or division (D) of section 779
133.10 of the Revised Code and at the time a tax duplicate is 780
delivered pursuant to section 319.28 or 319.29 of the Revised 781
Code, the county auditor shall determine whether the total amount 782
to be distributed to each school district from such settlement or 783
duplicate, when combined with the amounts to be distributed from 784
any subsequent settlement, will increase or decrease the amount 785
available for appropriation during the current fiscal year from 786
any fund. The county auditor shall certify this finding to the 787
budget commission, which shall certify an amended official 788
certificate reflecting the finding or certify to the school 789
district that no amended certificate needs to be issued. 790
Sec. 5747.51. (A) Within ten days after the fifteenth day 799
of July of each year, the tax commissioner shall make and certify 800
to the county auditor of each county an estimate of the amount of 801
the local government fund to be allocated to the undivided local 802
government fund of each county for the ensuing calendar year and 803
the estimated amount to be received by the undivided local 804
government fund of each county from the taxes levied pursuant to 805
section 5707.03 of the Revised Code for the ensuing calendar 806
year. 807
(B) At each annual regular session of the county budget 809
commission convened pursuant to section 5705.27 of the Revised 810
Code, each auditor shall present to the commission the 811
certificate of the commissioner, the annual tax budget and 812
estimates, and the records showing the action of the commission 813
in its last preceding regular session. The estimates shown on 814
the certificate of the commissioner of the amount to be allocated 815
from the local government fund and the amount to be received from 816
taxes levied pursuant to section 5707.03 of the Revised Code 817
shall be combined into one total comprising the estimate of the 818
undivided local government fund of the county. The commission, 819
after extending to the representatives of each subdivision an 820
21
opportunity to be heard, under oath administered by any member of 821
the commission, and considering all the facts and information 822
presented to it by the auditor, shall determine the amount of the 823
undivided local government fund needed by and to be apportioned 824
to each subdivision for current operating expenses, as shown in 825
the tax budget of the subdivision. This determination shall be 826
made pursuant to divisions (C) to (I) of this section, unless the 827
commission has provided for a formula pursuant to section 5747.53 828
of the Revised Code. 829
Nothing in this section prevents the budget commission, for 832
the purpose of apportioning the undivided local government fund, 833
from inquiring into the claimed needs of any subdivision as 834
stated in its tax budget, or from adjusting claimed needs to 835
reflect actual needs. For the purposes of this section, "current 836
operating expenses" means the lawful expenditures of a 837
subdivision, except those for permanent improvements and except 838
payments for interest, sinking fund, and retirement of bonds, 839
notes, and certificates of indebtedness of the subdivision. 840
(C) The commission shall determine the combined total of 842
the estimated expenditures, including transfers, from the general 843
fund and any special funds other than special funds established 844
for road and bridge; street construction, maintenance, and 845
repair; state highway improvement; and gas, water, sewer, and 846
electric public utilities operated by a subdivision, as shown in 847
the subdivision's tax budget for the ensuing calendar year. 848
(D) From the combined total of expenditures calculated 850
pursuant to division (C) of this section, the commission shall 851
deduct the following expenditures, if included in these funds in 852
the tax budget: 853
(1) Expenditures for permanent improvements as defined in 855
division (E) of section 5705.01 of the Revised Code; 856
(2) In the case of counties and townships, transfers to 858
the road and bridge fund, and in the case of municipalities, 859
transfers to the street construction, maintenance, and repair 860
22
fund and the state highway improvement fund; 861
(3) Expenditures for the payment of debt charges; 863
(4) Expenditures for the payment of judgments. 865
(E) In addition to the deductions made pursuant to 867
division (D) of this section, revenues accruing to the general 868
fund and any special fund considered under division (C) of this 869
section from the following sources shall be deducted from the 870
combined total of expenditures calculated pursuant to division 871
(C) of this section: 872
(1) Taxes levied within the ten-mill limitation, as 874
defined in section 5705.02 of the Revised Code; 875
(2) The budget commission allocation of estimated county 877
library and local government support fund revenues to be 878
distributed pursuant to section 5747.48 of the Revised Code; 879
(3) Estimated unencumbered balances as shown on the tax 881
budget as of the thirty-first day of December of the current year 882
in the general fund, but not any estimated balance in any special 883
fund considered in division (C) of this section; 884
(4) Revenue, including transfers, shown in the general 886
fund and any special funds other than special funds established 887
for road and bridge; street construction, maintenance, and 888
repair; state highway improvement; and gas, water, sewer, and 889
electric public utilities, from all other sources except those 890
that a subdivision receives from an additional tax or service 891
charge voted by its electorate or receives from special 892
assessment or revenue bond collection. For the purposes of this 893
division, where the charter of a municipal corporation prohibits 894
the levy of an income tax, an income tax levied by the 895
legislative authority of such municipal corporation pursuant to 896
an amendment of the charter of that municipal corporation to 897
authorize such a levy represents an additional tax voted by the 898
electorate of that municipal corporation. For the purposes of 899
this division, any measure adopted by a board of county 900
commissioners pursuant to section 322.02, 324.02, 4504.02, or 901
23
5739.021 of the Revised Code, including those measures upheld by 902
the electorate in a referendum conducted pursuant to section 903
322.021, 324.021, 4504.021, or 5739.022 of the Revised Code, 904
shall not be considered an additional tax voted by the 905
electorate. 906
Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE 909
REVISED CODE, MONEY in a reserve balance account established by a 910
county or, township, OR MUNICIPAL CORPORATION under section 912
305.23, 505.83, or 505.831 5705.13 of the Revised Code or by a 913
municipal corporation pursuant to an ordinance or resolution that 914
has been included as a reserve balance in the county's, 915
township's, or municipal corporation's budget under section 916
5705.29 of the Revised Code shall not be considered an 917
unencumbered balance or revenue under division (E)(3) or (4) of 918
this section.
If a COUNTY, TOWNSHIP, OR municipal corporation has created 920
and maintains a NONEXPENDABLE TRUST fund exclusively for the 921
purpose of investing the principal of the fund and using the 924
investment earnings to fund expenditures UNDER SECTION 5705.131 925
OF THE REVISED CODE, the principal of the fund, and any additions 926
to the principal arising from sources other than the reinvestment 927
of investment earnings arising from such a fund, shall not be 928
considered an unencumbered balance or revenue under division 929
(E)(3) or (4) of this section. Only investment earnings arising 930
from investment of the principal or INVESTMENT OF SUCH additions 932
to principal may be considered an unencumbered balance or revenue 933
under those divisions.
(F) The total expenditures calculated pursuant to division 935
(C) of this section, less the deductions authorized in divisions 936
(D) and (E) of this section, shall be known as the "relative 937
need" of the subdivision, for the purposes of this section. 938
(G) The budget commission shall total the relative need of 940
all participating subdivisions in the county, and shall compute a 941
relative need factor by dividing the total estimate of the 942
24
undivided local government fund by the total relative need of all 943
participating subdivisions. 944
(H) The relative need of each subdivision shall be 946
multiplied by the relative need factor to determine the 947
proportionate share of the subdivision in the undivided local 948
government fund of the county; provided, that the maximum 949
proportionate share of a county shall not exceed the following 950
maximum percentages of the total estimate of the undivided local 951
government fund governed by the relationship of the percentage of 952
the population of the county that resides within municipal 953
corporations within the county to the total population of the 954
county as reported in the reports on population in Ohio by the 955
department of development as of the twentieth day of July of the 956
year in which the tax budget is filed with the budget commission: 957
Percentage of Percentage share 958
municipal population of the county 959
within the county: shall not exceed: 960
Less than forty-one per cent Sixty per cent 963
Forty-one per cent or more but Fifty per cent 965
less than eighty-one per
cent
Eighty-one per cent or more Thirty per cent 966
Where the proportionate share of the county exceeds the 969
limitations established in this division, the budget commission 970
shall adjust the proportionate shares determined pursuant to this 971
division so that the proportionate share of the county does not 972
exceed these limitations, and it shall increase the proportionate 973
shares of all other subdivisions on a pro rata basis. In 974
counties having a population of less than one hundred thousand, 975
not less than ten per cent shall be distributed to the townships 976
therein. 977
(I) The proportionate share of each subdivision in the 979
undivided local government fund determined pursuant to division 980
(H) of this section for any calendar year shall not be less than 981
25
the product of the average of the percentages of the undivided 982
local government fund of the county as apportioned to that 983
subdivision for the calendar years 1968, 1969, and 1970, 984
multiplied by the total amount of the undivided local government 985
fund of the county apportioned pursuant to former section 5735.23 986
of the Revised Code for the calendar year 1970. For the purposes 987
of this division, the total apportioned amount for the calendar 988
year 1970 shall be the amount actually allocated to the county in 989
1970 from the state collected intangible tax as levied by section 990
5707.03 of the Revised Code and distributed pursuant to section 991
5725.24 of the Revised Code, plus the amount received by the 992
county in the calendar year 1970 pursuant to division (B)(1) of 993
former section 5739.21 of the Revised Code, and distributed 994
pursuant to former section 5739.22 of the Revised Code. If the 995
total amount of the undivided local government fund for any 996
calendar year is less than the amount of the undivided local 997
government fund apportioned pursuant to former section 5739.23 of 998
the Revised Code for the calendar year 1970, the minimum amount 999
guaranteed to each subdivision for that calendar year pursuant to 1,000
this division shall be reduced on a basis proportionate to the 1,001
amount by which the amount of the undivided local government fund 1,002
for that calendar year is less than the amount of the undivided 1,003
local government fund apportioned for the calendar year 1970. 1,004
(J) On the basis of such apportionment, the county auditor 1,006
shall compute the percentage share of each such subdivision in 1,007
the undivided local government fund and shall at the same time 1,008
certify to the tax commissioner the percentage share of the 1,009
county as a subdivision. No payment shall be made from the 1,010
undivided local government fund, except in accordance with such 1,011
percentage shares. 1,012
Within ten days after the budget commission has made its 1,014
apportionment, whether conducted pursuant to section 5747.51 or 1,015
5747.53 of the Revised Code, the auditor shall publish a list of 1,016
the subdivisions and the amount each is to receive from the 1,017
26
undivided local government fund and the percentage share of each 1,018
subdivision, in a newspaper or newspapers of countywide 1,019
circulation, and send a copy of such allocation to the tax 1,020
commissioner. 1,021
The county auditor shall also send by certified mail, 1,023
return receipt requested, a copy of such allocation to the fiscal 1,024
officer of each subdivision entitled to participate in the 1,025
allocation of the undivided local government fund of the county. 1,026
This copy shall constitute the official notice of the commission 1,027
action referred to in section 5705.37 of the Revised Code. 1,028
All money received into the treasury of a subdivision from 1,030
the undivided local government fund in a county treasury shall be 1,031
paid into the general fund and used for the current operating 1,032
expenses of the subdivision. 1,033
If a municipal corporation maintains a municipal 1,035
university, such municipal university, when the board of trustees 1,036
so requests the legislative authority of the municipal 1,037
corporation, shall participate in the money apportioned to such 1,038
municipal corporation from the total local government fund, 1,039
however created and constituted, in such amount as requested by 1,040
the board of trustees, provided such sum does not exceed nine per 1,041
cent of the total amount paid to the municipal corporation. 1,042
If any public official fails to maintain the records 1,044
required by sections 5747.50 to 5747.55 of the Revised Code, or 1,045
by the rules issued by the tax commissioner, the auditor of 1,046
state, or the treasurer of state, pursuant to such sections, or 1,047
fails to comply with any law relating to the enforcement of such 1,048
sections, the local government fund money allocated to the county 1,049
shall be withheld until such time as the public official has 1,050
complied with such sections or such law or the rules issued 1,051
pursuant thereto. 1,052
Sec. 5747.62. (A) As used in this section and section 1,061
5747.63 of the Revised Code, "subdivision" means a municipal 1,062
corporation, township, park district, or county. 1,063
27
(B) At each annual regular session of the county budget 1,065
commission convened pursuant to section 5705.27 of the Revised 1,066
Code, each auditor shall present to the commission the 1,067
certificate of the commissioner, the annual tax budget and 1,068
estimates, and the records showing the action of the commission 1,069
in its last preceding regular session. The commission, after 1,070
extending to the representatives of each subdivision an 1,071
opportunity to be heard, under oath administered by any member of 1,072
the commission, and considering all the facts and information 1,073
presented to it by the auditor, shall determine the amount of the 1,074
undivided local government revenue assistance fund needed by and 1,075
to be apportioned to each subdivision for current operating 1,076
expenses, as shown in the tax budget of the subdivision. This 1,077
determination shall be made pursuant to divisions (C) to (H) of 1,078
this section, unless the commission has provided for a formula 1,079
pursuant to section 5747.63 of the Revised Code. Nothing in this 1,080
section prevents the budget commission, for the purpose of 1,081
apportioning the undivided local government revenue assistance 1,082
fund, from inquiring into the claimed needs of any subdivision as 1,083
stated in its tax budget, or from adjusting claimed needs to 1,084
reflect actual needs. For the purposes of this section, "current 1,085
operating expenses" means the lawful expenditures of a 1,086
subdivision, except those for permanent improvements and except 1,087
payments for interest, sinking fund, and retirement of bonds, 1,088
notes, and certificates of indebtedness of the subdivision. 1,089
(C) The commission shall determine the combined total of 1,091
the estimated expenditures, including transfers, from the general 1,092
fund and any special funds other than special funds established 1,093
for road and bridge; street construction, maintenance, and 1,094
repair; state highway improvement; and gas, water, sewer, and 1,095
electric public utilities operated by a subdivision, as shown in 1,096
the subdivision's tax budget for the ensuing calendar year. 1,097
(D) From the combined total of expenditures calculated 1,099
pursuant to division (C) of this section, the commission shall 1,100
28
deduct the following expenditures, if included in these funds in 1,101
the tax budget: 1,102
(1) Expenditures for permanent improvements as defined in 1,104
division (E) of section 5705.01 of the Revised Code; 1,105
(2) In the case of counties and townships, transfers to 1,107
the road and bridge fund, and in the case of municipalities, 1,108
transfers to the street construction, maintenance, and repair 1,109
fund and the state highway improvement fund; 1,110
(3) Expenditures for the payment of debt charges; 1,112
(4) Expenditures for the payment of judgments. 1,114
(E) In addition to the deductions made pursuant to 1,116
division (D) of this section, revenues accruing to the general 1,117
fund and any special fund considered under division (C) of this 1,118
section from the following sources shall be deducted from the 1,119
combined total of expenditures calculated pursuant to division 1,120
(C) of this section: 1,121
(1) Taxes levied within the ten-mill limitation, as 1,123
defined in section 5705.02 of the Revised Code; 1,124
(2) The budget commission allocation of estimated county 1,126
library and local government support fund revenues to be 1,127
distributed pursuant to section 5747.48 of the Revised Code; 1,128
(3) Estimated unencumbered balances as shown on the tax 1,130
budget as of the thirty-first day of December of the current year 1,131
in the general fund, but not any estimated balance in any special 1,132
fund considered in division (C) of this section; 1,133
(4) Revenue, including transfers, shown in the general 1,135
fund and any special funds other than special funds established 1,136
for road and bridge; street construction, maintenance, and 1,137
repair; state highway improvement; and gas, water, sewer, and 1,138
electric public utilities, from all other sources except those 1,139
that a subdivision receives from an additional tax or service 1,140
charge voted by its electorate or receives from special 1,141
assessment or revenue bond collection. For the purposes of this 1,142
division, where the charter of a municipal corporation prohibits 1,143
29
the levy of an income tax, an income tax levied by the 1,144
legislative authority of such municipal corporation pursuant to 1,145
an amendment of the charter of that municipal corporation to 1,146
authorize such a levy represents an additional tax voted by the 1,147
electorate of that municipal corporation. For the purposes of 1,148
this division, any measure adopted by a board of county 1,149
commissioners pursuant to section 322.02, 324.02, 4504.02, or 1,150
5739.021 of the Revised Code, including those measures upheld by 1,151
the electorate in a referendum conducted pursuant to section 1,152
322.021, 324.021, 4504.021, or 5739.022 of the Revised Code, 1,153
shall not be considered an additional tax voted by the 1,154
electorate. 1,155
Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE 1,158
REVISED CODE, MONEY in a reserve balance account established by a 1,159
county or, township, OR MUNICIPAL CORPORATION under section 1,161
305.23, 505.83, or 505.831 of the Revised Code or by a municipal 1,162
corporation pursuant to an ordinance or resolution that has been 1,163
included as a reserve balance in the county's, township's, or 1,164
municipal corporation's budget under section 5705.29 5705.13 of 1,165
the Revised Code shall not be considered an unencumbered balance 1,167
or revenue under division (E)(3) or (4) of this section. 1,168
If a COUNTY, TOWNSHIP, OR municipal corporation has created 1,170
and maintains a NONEXPENDABLE TRUST fund exclusively for the 1,171
purpose of investing the principal of the fund and using the 1,173
investment earnings to fund expenditures UNDER SECTION 5705.131 1,174
OF THE REVISED CODE, the principal of the fund, and any additions
to the principal arising from sources other than the reinvestment 1,176
of investment earnings arising from such a fund, shall not be 1,177
considered an unencumbered balance or revenue under division 1,178
(E)(3) or (4) of this section. Only investment earnings arising 1,179
from investment of the principal or INVESTMENT OF SUCH additions 1,181
to principal may be considered an unencumbered balance or revenue 1,183
under those divisions.
(F) The total expenditures calculated pursuant to division 1,185
30
(C) of this section, less the deductions authorized in divisions 1,186
(D) and (E) of this section, shall be known as the "relative 1,187
need" of the subdivision, for the purposes of this section. 1,188
(G) The budget commission shall total the relative need of 1,190
all participating subdivisions in the county, and shall compute a 1,191
relative need factor by dividing the total estimate of the 1,192
undivided local government revenue assistance fund by the total 1,193
relative need of all participating subdivisions. 1,194
(H) The relative need of each subdivision shall be 1,196
multiplied by the relative need factor to determine the 1,197
proportionate share of the subdivision in the undivided local 1,198
government revenue assistance fund of the county, provided that 1,199
the maximum proportionate share of a county shall not exceed the 1,200
following maximum percentages of the total estimate of the 1,201
undivided local government revenue assistance fund governed by 1,202
the relationship of the percentage of the population of the 1,203
county that resides within municipal corporations within the 1,204
county to the total population of the county as reported in the 1,205
reports on population in Ohio by the department of development as 1,206
of the twentieth day of July of the year in which the tax budget 1,207
is filed with the budget commission: 1,208
Percentage of Percentage share 1,209
municipal population of the county 1,210
within the county: shall not exceed: 1,211
Less than forty-one per cent Sixty per cent 1,214
Forty-one per cent or more but Fifty per cent 1,216
less than eighty-one per
cent
Eighty-one per cent or more Thirty per cent 1,218
Where the proportionate share of the county exceeds the 1,221
limitations established in this division, the budget commission 1,222
shall adjust the proportionate shares determined pursuant to this 1,223
division so that the proportionate share of the county does not 1,224
exceed these limitations, and it shall increase the proportionate 1,225
31
shares of all other subdivisions on a pro rata basis. In 1,226
counties having a population of less than one hundred thousand, 1,227
not less than ten per cent shall be distributed to the townships 1,228
therein. 1,229
(I) On the basis of such apportionment, the county auditor 1,231
shall compute the percentage share of each such subdivision in 1,232
the undivided local government revenue assistance fund and shall 1,233
at the same time certify to the tax commissioner the percentage 1,234
share of the county as a subdivision. No payment shall be made 1,235
from the undivided local government revenue assistance fund, 1,236
except in accordance with such percentage shares. 1,237
Within ten days after the budget commission has made its 1,239
apportionment, whether conducted pursuant to this section or 1,240
section 5747.63 of the Revised Code, the auditor shall publish a 1,241
list of the subdivisions and the amount each is to receive from 1,242
the undivided local government revenue assistance fund and the 1,243
percentage share of each subdivision, in a newspaper or 1,244
newspapers of countywide circulation, and send a copy of such 1,245
apportionment to the tax commissioner. 1,246
The county auditor shall also send by certified mail, 1,248
return receipt requested, a copy of such apportionment to the 1,249
fiscal officer of each subdivision entitled to participate in the 1,250
allocation of the undivided local government revenue assistance 1,251
fund of the county. This copy shall constitute the official 1,252
notice of the commission action referred to in section 5705.37 of 1,253
the Revised Code. 1,254
All money received by a subdivision from the county 1,256
undivided local government revenue assistance fund shall be paid 1,257
into the subdivision's general fund and used for current 1,258
operating expenses. 1,259
If any public official fails to maintain the records 1,261
required by sections 5747.61 to 5747.63 of the Revised Code, or 1,262
by the rules issued by the tax commissioner, the auditor of 1,263
state, or the treasurer of state, pursuant to such sections, or 1,264
32
fails to comply with any law relating to the enforcement of such 1,265
sections, the local government revenue assistance fund money 1,266
allocated to the county shall be withheld until such time as the 1,267
public official has complied with such sections or such law or 1,268
the rules issued pursuant thereto. 1,269
Section 2. That existing sections 3316.03, 5705.12, 1,271
5705.13, 5705.29, 5705.35, 5705.36, 5747.51, and 5747.62 and 1,272
sections 305.23, 505.83, and 505.831 of the Revised Code are 1,273
hereby repealed.
Section 3. Section 5705.29 of the Revised Code is 1,275
presented in this act as a composite of the section as amended by 1,276
both Am. Sub. H.B. 86 and Sub. H.B. 194 of the 121st General 1,277
Assembly, with the new language of neither of the acts shown in 1,279
capital letters. This is in recognition of the principle stated 1,280
in division (B) of section 1.52 of the Revised Code that such 1,281
amendments are to be harmonized where not substantively 1,282
irreconcilable and constitutes a legislative finding that such is 1,283
the resulting version in effect prior to the effective date of 1,284
this act.