REPRESENTATIVES Webster, Boccieri, Peterson, Cates, Jolivette, Hughes, Allen, Husted, Calvert, Hoops, Faber, Carey, Carano, Coates

To amend sections 118.13, 3315.40, 3316.12, 3318.07,

1

5705.281, 5705.29, 5705.30, 5705.31, 5705.32,

2

5705.34, 5705.341, 5705.35, 5705.38, and 5705.51 of

3

the Revised Code to permit a county budget

4

commission to waive the requirement that a taxing

5

authority adopt a tax budget for a subdivision or

6

taxing unit.

7

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 118.13, 3315.40, 3316.12, 3318.07,	8
5705.281, 5705.29, 5705.30, 5705.31, 5705.32, 5705.34, 5705.341,	9
5705.35, 5705.38, and 5705.51 of the Revised Code be amended to	10
read as follows:	11

Sec. 118.13.  (A) No appropriation measure may be adopted	12
contrary to the financial plan approved by the financial planning	13
and supervision commission. Any existing appropriation measure	14
inconsistent with the approved financial plan is ineffective for	15
purposes of any expenditures to the extent it authorizes	16
expenditures in excess of the revenues available after approval of	17
the financial plan, and shall be amended promptly by the	18
legislative authority of the municipal corporation, county, or	19
township to be consistent with the financial plan. Any	20
appropriation measure prior to approval by the legislative	21
authority of the municipal corporation, county, or township shall	22
be submitted to the commission or, when authorized by the	23
commission, the financial supervisor for review to determine	24
whether the measure is consistent with the financial plan. The	25
municipal corporation, county, or township, through the	26
appropriate representatives of the legislative authority and the	27
fiscal officer, shall cooperate with the commission or the	28
financial supervisor in such review. The commission or the	29
financial supervisor shall advise of any modifications in such	30
appropriation measure deemed necessary to conform to the financial	31
plan.	32

(B) Prior to giving a certificate of estimated resources or	33
amendment thereof to the municipal corporation, county, or	34
township, the county budget commission shall consult with the	35
commission, and the commission shall revise such certificate or	36
amended certificate in any respect in which the certificate or	37
amended certificate is, in its judgment, inconsistent with the	38
financial plan.	39

(C) Any tax budget of the municipal corporation, county, or	40
township shall be consistent with the financial plan approved by	41
the commission. Before submitting the tax budget to the county	42
auditor, the municipal corporation, county, or township shall	43
submit such tax budget to the commission and shall cooperate with	44
the commission in its review of such tax budget. The municipal	45
corporation, county, or township shall make such modifications in	46
the tax budget as the commission determines to be necessary to	47
conform to the financial plan. If the municipal corporation,	48
county, or township fails to make such modifications, the	49
commission shall certify to the budget commission the	50
modifications necessary to conform to the financial plan, and the	51
budget commission shall make such modifications. This division	52
does not apply to a county, township, or municipal corporation for	53
which the county budget commission has waived the requirement to	54
adopt a tax budget pursuant to section 5705.281 of the Revised	55
Code.	56

(D) Nothing in this section, and no delay or failure or	57
refusal to act under or comply with the provisions of this	58
section, delays, modifies, or affects the expenditure restrictions	59
contained in section 118.12 of the Revised Code.	60

(E) For purposes of the financial plan, tax budgets, and	61
certificates of estimated resources, the revenue estimates shall	62
not include revenues conditioned upon future favorable action by	63
the electorate of the municipal corporation, county, or township	64
or by the general assembly or congress, other than appropriations	65
of moneys for existing and continuing programs at current levels.	66
The estimate of revenues for any month shall separately state and	67
designate as conditional those revenues which are conditioned upon	68
the future issuance of debt obligations, transfers of funds,	69
advances from funds, payments or reimbursements from the sale of	70
debt obligations, sale of capital assets of the municipal	71
corporation, county, or township, increases in utility rates and	72
other charges, or imposition or increase in taxes, and shall be	73
accompanied by documentation showing that the council or official	74
with authority to act to achieve realization of such conditional	75
revenues havehas acted in time for realization of such revenues	76
in the month or months indicated. In any event, there shall not	77
be included any source or amount which in the judgment of the	78
commission, or when authorized by the commission, the financial	79
supervisor, is uncertain of realization to form a proper basis for	80
financial planning or budgeting.	81

Sec. 3315.40.  The board of education of a city, local,	82
exempted village, or joint vocational school district or the	83
governing board of any educational service center may establish an	84
education foundation fund. Moneys in the fund shall consist of	85
proceeds paid into the fund under division (B) of section 3313.36	86
of the Revised Code. In addition, by resolution adopted by a	87
majority of its members, a city, local, exempted village, or joint	88
vocational board may annually direct the school district treasurer	89
to pay into the education foundation fund an amount from the	90
school district general fund not to exceed one-half of one per	91
cent of the total estimated appropriations included inof the	92
school district's tax budget adopted pursuant to section 5705.28	93
of the Revised Codedistrict as estimated by the board at the time	94
the resolution is adopted or as set forth in the annual	95
appropriation measure as most recently amended or supplemented;	96
and any governing board, by resolution adopted by a majority of	97
its members, may annually direct the service center treasurer to	98
pay into the education foundation fund an amount not to exceed	99
one-half of one per cent of the funds received by the governing	100
board pursuant to section 3317.11 of the Revised Code.	101

Income from the investment of moneys in the fund shall be	102
paid into the fund. A board, by resolution adopted by a majority	103
of its members, may accept a trust created under section 3315.41	104
of the Revised Code for the investment of money in the educational	105
foundation fund and direct the school district or service center	106
treasurer to pay to the trustee, the initial trust principal	107
contemplated by the instrument creating the trust. A board that	108
has accepted a trust created under section 3315.41 of the Revised	109
Code may do any of the following by resolution adopted by a	110
majority of its members: direct the school district or service	111
center treasurer to pay additional amounts to the trust principal,	112
amend the trust, revoke the trust, or provide for payment of	113
compensation to the trustee.	114

Moneys in the fund shall be expended only by resolution	115
adopted by a majority of the members of the board for operating or	116
capital costs of any existing or new and innovative program	117
designed to enhance or promote education within the district or	118
service center, such as scholarships for students or teachers.	119

A board of education or governing board may appoint a	120
committee of administrators to administer the education foundation	121
fund and to make recommendations for the use of the fund. Members	122
of the committee shall serve at the discretion of the appointing	123
board. Members shall receive no compensation, but may be	124
reimbursed for actual and necessary expenses incurred in the	125
performance of their official duties.	126

Sec. 3316.12.  (A) No appropriation measure may be adopted	127
nor any expenditure made contrary to the financial recovery plan	128
adopted by a school district financial planning and supervision	129
commission. Any existing appropriation measure inconsistent with	130
the adopted financial recovery plan is ineffective for purposes of	131
any expenditures to the extent that it authorizes expenditures in	132
excess of the revenues available after adoption of the financial	133
recovery plan, and, if not amended by the commission, shall be	134
amended promptly by the board of education of the school district	135
to be consistent with the plan. Any appropriation measure prior	136
to approval by the board of education of the school district shall	137
be submitted to the commission for review to determine whether the	138
measure is consistent with the financial recovery plan. The	139
school district, through the appropriate representatives of the	140
board of education and the fiscal officer, shall cooperate with	141
the commission in this review. The commission shall report any	142
modifications in the appropriation measure considered necessary to	143
conform to the financial recovery plan.	144

(B) Prior to giving a certificate of estimated resources or	145
amendment of it to the school district, the county budget	146
commission shall consult with the commission, and the commission	147
shall revise the certificate or amended certificate in any respect	148
in which the certificate or amended certificate is, in its	149
judgment, inconsistent with the financial recovery plan.	150

(C) Any tax budget of the school district shall be	151
consistent with the financial recovery plan approved by the	152
commission. Before submitting a tax budget to the county auditor,	153
the school district board of education shall submit the tax budget	154
to the commission for amendments. The commission shall make such	155
modifications in the tax budget as the commission determines to be	156
necessary to conform to the financial recovery plan. This division	157
does not apply to a school district for which the county budget	158
commission has waived the requirement to adopt a tax budget	159
pursuant to section 5705.281 of the Revised Code.	160

(D) For purposes of the financial recovery plan, tax	161
budgets, and certificates of estimated resources, the revenue	162
estimates shall not include revenues conditioned upon future	163
favorable action by the electorate of the school district or by	164
the general assembly or congress, other than appropriations of	165
moneys for existing and continuing programs at current levels. The	166
estimate of revenues for any month shall separately state and	167
designate as conditional those revenues that are conditioned upon	168
the future issuance of debt obligations, transfers of funds,	169
advances from funds, payments or reimbursements from the sale of	170
debt obligations, sale of capital assets of the school district,	171
increases in or implementation of fees or other charges, or	172
imposition of or increases in taxes, and shall be accompanied by	173
documentation showing that the officials with authority to act to	174
achieve realization of such conditional revenues have acted in	175
time for realization of such revenues in the month or months	176
indicated. In any event, there shall not be included any source	177
or amount that in the judgment of the commission is uncertain of	178
realization to form a proper basis for financial planning or	179
budgeting.	180

Sec. 3318.07.  The board of elections shall certify the	181
result of the election to the tax commissioner, to the auditor of	182
the county or counties in which the school district is located, to	183
the treasurer of the school district board, and to the Ohio school	184
facilities commission. The necessary tax levy for debt service on	185
the bonds shall be included in the annual tax budget that is	186
certified to the county budget commission or, if adoption of the	187
tax budget is waived under section 5705.281 of the Revised Code,	188
included among the tax rates required to be provided to the budget	189
commission under that section.	190

Sec. 5705.281. IfNotwithstanding section 5705.28 of the	191
Revised Code, the county budget commission has provided for the	192
apportionment of the county undivided local government fund and	193
the county undivided local government revenue assistance fund	194
under an alternative method or formula basis pursuant to sections	195
5747.53 and 5747.63 of the Revised Code for any fiscal year, the	196
commission, by an affirmative vote of a majority of the	197
commission, including an affirmative vote by the county auditor,	198
may waive the requirement that the taxing authority of a	199
subdivision or other taxing unit entitled to a share of such fund	200
adopt a tax budget as provided under section 5709.285705.28 of	201
the Revised Code, or may permitbut shall require such a taxing	202
authority to adopt a tax budget containing onlyprovide such	203
information as may be required by the commission to apportion	204
those funds under the alternative method or formula,	205
notwithstanding any provision for a tax budget in the resolution	206
approving the alternative method or formulaperform its duties	207
under this chapter, including the rate of each of the	208
subdivision's or taxing unit's tax levies as divided under section	209
5705.04 of the Revised Code.	210

Sec. 5705.29. This section does not apply to a subdivision or	211
taxing unit for which the county budget commission has waived the	212
requirement to adopt a tax budget pursuant to section 5705.281 of	213
the Revised Code. The tax budget shall present the following	214
information in such detail as is prescribed by the auditor of	215
state, unless an alternative form of the budget is permitted under	216
section 5705.281 of the Revised Code:	217

(A)(1) A statement of the necessary current operating	218
expenses for the ensuing fiscal year for each department and	219
division of the subdivision, classified as to personal services	220
and other expenses, and the fund from which such expenditures are	221
to be made. Except in the case of a school district, this	222
estimate may include a contingent expense not designated for any	223
particular purpose, and not to exceed three per cent of the total	224
amount of appropriations for current expenses. In the case of a	225
school district, this estimate may include a contingent expense	226
not designated for any particular purpose and not to exceed	227
thirteen per cent of the total amount of appropriations for	228
current expenses.	229

(2) A statement of the expenditures for the ensuing fiscal	230
year necessary for permanent improvements, exclusive of any	231
expense to be paid from bond issues, classified as to the	232
improvements contemplated by the subdivision and the fund from	233
which such expenditures are to be made;	234

(3) The amounts required for the payment of final judgments;

235

(4) A statement of expenditures for the ensuing fiscal year	236
necessary for any purpose for which a special levy is authorized,	237
and the fund from which such expenditures are to be made;	238

(5) Comparative statements, so far as possible, in parallel	239
columns of corresponding items of expenditures for the current	240
fiscal year and the two preceding fiscal years.	241

(B)(1) An estimate of receipts from other sources than the	242
general property tax during the ensuing fiscal year, which shall	243
include an estimate of unencumbered balances at the end of the	244
current fiscal year, and the funds to which such estimated	245
receipts are credited;	246

(2) The amount each fund requires from the general property	247
tax, which shall be the difference between the contemplated	248
expenditure from the fund and the estimated receipts, as provided	249
in this section. The section of the Revised Code under which the	250
tax is authorized shall be set forth.	251

(3) Comparative statements, so far as possible, in parallel	252
columns of taxes and other revenues for the current fiscal year	253
and the two preceding fiscal years.	254

(C)(1) The amount required for debt charges;

255

(2) The estimated receipts from sources other than the tax	256
levy for payment of such debt charges, including the proceeds of	257
refunding bonds to be issued to refund bonds maturing in the next	258
succeeding fiscal year;	259

(3) The net amount for which a tax levy shall be made,	260
classified as to bonds authorized and issued prior to January 1,	261
1922, and those authorized and issued subsequent to such date, and	262
as to what portion of the levy will be within and what in excess	263
of the ten-mill limitation.	264

(D) An estimate of amounts from taxes authorized to be	265
levied in excess of the ten-mill limitation on the tax rate, and	266
the fund to which such amounts will be credited, together with the	267
sections of the Revised Code under which each such tax is exempted	268
from all limitations on the tax rate.	269

(E)(1) A board of education may include in its budget for	270
the fiscal year in which a levy proposed under section 5705.194,	271
5705.21, or 5705.213, or the original levy under section 5705.212	272
of the Revised Code is first extended on the tax list and	273
duplicate an estimate of expenditures to be known as a voluntary	274
contingency reserve balance, which shall not be greater than	275
twenty-five per cent of the total amount of the levy estimated to	276
be available for appropriation in such year.	277

(2) A board of education may include in its budget for the	278
fiscal year following the year in which a levy proposed under	279
section 5705.194, 5705.21, or 5705.213, or the original levy under	280
section 5705.212 of the Revised Code is first extended on the tax	281
list and duplicate an estimate of expenditures to be known as a	282
voluntary contingency reserve balance, which shall not be greater	283
than twenty per cent of the amount of the levy estimated to be	284
available for appropriation in such year.	285

(3) Except as provided in division (E)(4) of this section,	286
the full amount of any reserve balance the board includes in its	287
budget shall be retained by the county auditor and county	288
treasurer out of the first semiannual settlement of taxes until	289
the beginning of the next succeeding fiscal year, and thereupon,	290
with the depository interest apportioned thereto, it shall be	291
turned over to the board of education, to be used for the purposes	292
of such fiscal year.	293

(4) A board of education, by a two-thirds vote of all	294
members of the board, may appropriate any amount withheld as a	295
voluntary contingency reserve balance during the fiscal year for	296
any lawful purpose, provided that prior to such appropriation the	297
board of education has authorized the expenditure of all amounts	298
appropriated for contingencies under section 5705.40 of the	299
Revised Code. Upon request by the board of education, the county	300
auditor shall draw a warrant on the district's account in the	301
county treasury payable to the district in the amount requested.	302

(F)(1) A board of education may include a spending reserve	303
in its budget for fiscal years ending on or before June 30, 2002.	304
The spending reserve shall consist of an estimate of expenditures	305
not to exceed the district's spending reserve balance. A	306
district's spending reserve balance is the amount by which the	307
designated percentage of the district's estimated personal	308
property taxes to be settled during the calendar year in which the	309
fiscal year ends exceeds the estimated amount of personal property	310
taxes to be so settled and received by the district during that	311
fiscal year. Moneys from a spending reserve shall be appropriated	312
in accordance with section 133.301 of the Revised Code.	313

(2) For the purposes of computing a school district's	314
spending reserve balance for a fiscal year, the designated	315
percentage shall be as follows:	316

(G) Except as otherwise provided in this division, the	323
county budget commission shall not reduce the taxing authority of	324
a subdivision as a result of the creation of a reserve balance	325
account. Except as otherwise provided in this division, the	326
county budget commission shall not consider the amount in a	327
reserve balance account of a township, county, or municipal	328
corporation as an unencumbered balance or as revenue for the	329
purposes of division (E)(3) or (4) of section 5747.51 or division	330
(E)(3) or (4) of section 5747.62 of the Revised Code. The county	331
budget commission may require documentation of the reasonableness	332
of the reserve balance held in any reserve balance account. The	333
commission shall consider any amount in a reserve balance account	334
that it determines to be unreasonable as unencumbered and as	335
revenue for the purposes of sections 5747.51 and 5747.62 of the	336
Revised Code and may take such amounts into consideration when	337
determining whether to reduce the taxing authority of a	338
subdivision.	339

Sec. 5705.30.  This section does not apply to a subdivision	340
for which the county budget commission has waived the requirement	341
to adopt a tax budget under section 5705.281 of the Revised Code.	342

In addition to the information required by section 5705.29 of	343
the Revised Code, the budget of each subdivision and school	344
library district shall include such other information as is	345
prescribed by the auditor of state unless an alternative form of	346
the budget is permitted under section 5705.281 of the Revised	347
Code. At least two copies of the budget shall be filed in the	348
office of the fiscal officer of the subdivision for public	349
inspection not less than ten days before its adoption by the	350
taxing authority, and such taxing authority shall hold at least	351
one public hearing thereon, of which public notice shall be given	352
by at least one publication not less than ten days prior to the	353
date of hearing in the official publication of such subdivision,	354
or in a newspaper having general circulation in the subdivision.	355
The budget, after adoption, shall be submitted to the county	356
auditor on or before the twentieth day of July, or in the case of	357
a school district, by the twentieth day of January. The tax	358
commissioner may prescribe a later date for the submission of a	359
subdivision's tax budget. Any subdivision that fails to submit	360
its budget to the county auditor on or before the twentieth day of	361
July, unless the commissioner on or before the twentieth day of	362
July prescribes a later date for submission of the budget by that	363
subdivision, shall not receive an apportionment from the undivided	364
local government fund distribution for the ensuing calendar year,	365
unless upon review of the matter the commissioner determines that	366
the budget was adopted by the subdivision on or before the	367
fifteenth day of July, but was not submitted to the county auditor	368
by the twentieth day of July or the later time prescribed by the	369
commissioner because of ministerial error by the subdivision or	370
its officers, employees, or other representatives.	371

Sec. 5705.31.  The county auditor shall present to the county	372
budget commission the annual tax budgets submitted under sections	373
5705.01 to 5705.47 of the Revised Code, together with an estimate	374
prepared by the auditor of the amount of any state levy, the rate	375
of any school tax levy as previously determined, the tax	376
commissioner's estimate of the amount to be received in the county	377
library and local government support fund, the tax rates provided	378
under section 5705.281 of the Revised Code if adoption of the tax	379
budget was waived under that section, and such other information	380
as the commission requests or the tax commissioner prescribes. The	381
budget commission shall examine such budget and ascertain the	382
total amount proposed to be raised in the county for the purposes	383
of each subdivision and other taxing units in the county.	384

The commission shall ascertain that the following levies have	385
been properly authorized and, if so authorized, shall approve them	386
without modification:	387

(A) All levies in excess of the ten-mill limitation;

388

(B) All levies for debt charges not provided for by levies	389
in excess of the ten-mill limitation, including levies necessary	390
to pay notes issued for emergency purposes;	391

(C) The levies prescribed by division (B) of sections 742.33	392
and 742.34 of the Revised Code;	393

(D) Except as otherwise provided in this division, a minimum	394
levy within the ten-mill limitation for the current expense and	395
debt service of each subdivision or taxing unit, which shall equal	396
two-thirds of the average levy for current expenses and debt	397
service allotted within the fifteen-mill limitation to such	398
subdivision or taxing unit during the last five years the	399
fifteen-mill limitation was in effect unless such subdivision or	400
taxing unit requests an amount requiring a lower rate. Except as	401
provided in section 5705.312 of the Revised Code, if the levies	402
required in divisions (B) and (C) of this section for the	403
subdivision or taxing unit equal or exceed the entire minimum levy	404
of the subdivision as fixed, the minimum levies of the other	405
subdivisions or taxing units shall be reduced by the commission to	406
provide for the levies and an operating levy for the subdivision.	407
Such additional levy shall be deducted from the minimum levies of	408
each of the other subdivisions or taxing units, but the operating	409
levy for a school district shall not be reduced below a figure	410
equivalent to forty-five per cent of the millage available within	411
the ten-mill limitation after all the levies in divisions (B) and	412
(C) of this section have been provided for.	413

If a municipal corporation and a township have entered into	414
an annexation agreement under section 709.192 of the Revised Code	415
in which they agree to reallocate their shares of the minimum	416
levies established under this division and if that annexation	417
agreement is submitted along with the annual tax budget of both	418
the township and the municipal corporation, then, when determining	419
the minimum levy under this division, the auditor shall allocate,	420
to the extent possible, the minimum levy for that municipal	421
corporation and township in accordance with their annexation	422
agreement.	423

(E) The levies prescribed by section 3709.29 of the Revised	424
Code.	425

Divisions (A) to (E) of this section are mandatory and	426
commissions shall be without discretion to reduce such minimum	427
levies except as provided in such divisions.	428

If any debt charge is omitted from the budget, the commission	429
shall include it therein.	430

Sec. 5705.32.  (A) The county budget commission shall adjust	431
the estimated amounts required from the general property tax for	432
each fund, as shown by suchthe tax budgets or other information	433
required to be provided under section 5705.281 of the Revised	434
Code, so as to bring the tax levies required therefor within the	435
limitations specified in sections 5705.01 to 5705.47 of the	436
Revised Code, for such levies, but no levy shall be reduced below	437
a minimum fixed by law. The commission may revise and adjust the	438
estimate of balances and receipts from all sources for each fund	439
and shall determine the total appropriations that may be made	440
therefrom.	441

(B) The commission shall fix the amount of the county	442
library and local government support fund to be distributed to	443
each board of public library trustees that has qualified under	444
section 5705.28 of the Revised Code for participation in the	445
proceeds of such fund. The amount paid to all libraries in the	446
county from such fund shall never be a smaller per cent of the	447
fund than the average of the percentages of the county's	448
classified taxes that were distributed to libraries in 1982, 1983,	449
and 1984, as determined by the county auditor. The commission	450
shall base the amount for distribution on the needs of such	451
library for the construction of new library buildings, parts of	452
buildings, improvements, operation, maintenance, or other	453
expenses. In determining the needs of each library board of	454
trustees, and in calculating the amount to be distributed to any	455
library board of trustees on the basis of its needs, the	456
commission shall make no reduction in its allocation from the fund	457
on account of additional revenues realized by a library from	458
increased taxes or service charges voted by its electorate, from	459
revenues received through federal or state grants, projects, or	460
programs, or from grants from private sources.	461

(C) Notwithstanding the fact that alternative methods of	462
financing such needs are available, after fixing the amount to be	463
distributed to libraries, the commission shall fix the amount, if	464
any, of the county library and local government support fund to be	465
distributed to each board of township park commissioners, the	466
county, and each municipal corporation in accordance with the	467
following:	468

(1) Each municipal corporation in the county shall receive a	469
per cent of the remainder that equals the per cent that the county	470
auditor determines the classified property taxes originating in	471
such municipal corporation in 1984 were of the total of all of the	472
county's classified property taxes in 1984. The commission may	473
deduct from this amount any amount that the budget commission	474
allows to the board of township park commissioners of a township	475
park district, the boundaries of which are coextensive with or	476
contained within the boundaries of the municipal corporation.	477

(2) The county shall receive a per cent of the remainder	478
that equals the per cent that the county auditor determines the	479
classified property taxes originating outside of the boundaries of	480
municipal corporations in the county in 1984 were of the total of	481
all of the county's classified property taxes in 1984. The	482
commission may deduct from this amount any amount that the budget	483
commission allows to the board of township park commissioners of a	484
township park district, the boundaries of which are not	485
coextensive with or contained within those of any municipal	486
corporation in the county.	487

(D) The commission shall separately set forth the amounts	488
fixed and determined under divisions (B) and (C) of this section	489
in the "official certificate of estimated resources," as provided	490
in section 5705.35 of the Revised Code, and separately certify	491
such amount to the county auditor who shall be guided thereby in	492
the distribution of the county library and local government	493
support fund for and during the fiscal year. In determining such	494
amounts, the commission shall be guided by the estimate certified	495
by the tax commissioner and presented by the auditor under section	496
5705.31 of the Revised Code, as to the total amount of revenue to	497
be received in the county library and local government support	498
fund during such fiscal year.	499

(E)(1) At least five days before the date of any meeting at	500
which the budget commission plans to discuss the distribution of	501
the county library and local government support fund, it shall	502
notify each legislative authority and board of public library	503
trustees, county commissioners, and township park commissioners	504
eligible to participate in the distribution of the fund of the	505
date, time, place, and agenda for the meeting. Any legislative	506
authority or board entitled to notice under this division may	507
designate an officer or employee of such legislative authority or	508
board to whom the commission shall deliver the notice.	509

(2) Before the final determination of the amount to be	510
allotted to each subdivision from any source, the commission shall	511
permit representatives of each subdivision and of each board of	512
public library trustees to appear before it to explain its	513
financial needs.	514

(F) If any public library receives and expends any funds	515
allocated to it under this section for the construction of new	516
library buildings or parts of buildings, such library shall be	517
free and open to the inhabitants of the county in which it is	518
located. Any board of library trustees that receives funds under	519
this section and section 5747.48 of the Revised Code shall have	520
its financial records open for public inspection at all reasonable	521
times.	522

Sec. 5705.34.  When the budget commission has completed its	523
work with respect to a tax budget or other information required to	524
be provided under section 5705.281 of the Revised Code, it shall	525
certify its action to the taxing authority, together with an	526
estimate by the county auditor of the rate of each tax necessary	527
to be levied by the taxing authority within its subdivision or	528
taxing unit, and what part thereof is in excess of, and what part	529
within, the ten-mill tax limitation. The certification shall also	530
indicate the date on which each tax levied by the taxing authority	531
will expire.	532

If a taxing authority levies a tax for a fixed sum of money	533
or to pay debt charges for the tax year for which the tax budget	534
is prepared, and a payment on account of that tax is payable to	535
the taxing authority for the tax year under section 5727.85 or	536
5727.86 of the Revised Code, the county auditor, when estimating	537
the rate at which the tax shall be levied in the current year,	538
shall estimate the rate necessary to raise the required sum less	539
the estimated amount of any payments made for the tax year to a	540
taxing unit for fixed-sum levies under sections 5727.85 and	541
5727.86 of the Revised Code. The estimated rate shall be the rate	542
of the levy that the budget commission certifies with its action	543
under this section.	544

Each taxing authority, by ordinance or resolution, shall	545
authorize the necessary tax levies and certify them to the county	546
auditor before the first day of October in each year, or at such	547
later date as is approved by the tax commissioner, except that the	548
certification by a board of education shall be made by the first	549
day of April or at such later date as is approved by the	550
commissioner, and except that a township board of park	551
commissioners that is appointed by the board of township trustees	552
and oversees a township park district that contains only	553
unincorporated territory shall authorize only those taxes approved	554
by, and only at the rate approved by, the board of township	555
trustees as required by division (C) of section 511.27 of the	556
Revised Code. If the levying of a tax to be placed on the	557
duplicate of the current year is approved by the electors of the	558
subdivision under sections 5705.01 to 5705.47 of the Revised Code;	559
if the rate of a school district tax is increased due to the	560
repeal of a school district income tax and property tax rate	561
reduction at an election held pursuant to section 5748.04 of the	562
Revised Code; or if refunding bonds to refund all or a part of the	563
principal of bonds payable from a tax levy for the ensuing fiscal	564
year are issued or sold and in the process of delivery, the budget	565
commission shall reconsider and revise its action on the budget of	566
the subdivision or school library district for whose benefit the	567
tax is to be levied after the returns of such election are fully	568
canvassed, or after the issuance or sale of such refunding bonds	569
is certified to it.	570

Sec. 5705.341.  Any person required to pay taxes on real,	571
public utility, or tangible personal property in any taxing	572
district or other political subdivision of this state may appeal	573
to the board of tax appeals from the action of the county budget	574
commission of any county which relates to the fixing of uniform	575
rates of taxation and the rate necessary to be levied by each	576
taxing authority within its subdivision or taxing unit and which	577
action has been certified by the county budget commission to the	578
taxing authority of any political subdivision or other taxing	579
district within the county.	580

Such appeal shall be in writing and shall specify, in detail,	581
set forth the tax rate complained of and the reason that such a	582
tax rate is not necessary to produce the revenue needed by the	583
taxing district or political subdivision for the ensuing fiscal	584
year as those needs are set out in the tax budget of said taxing	585
unit or, if adoption of a tax budget was waived under section	586
5705.281 of the Revised Code, as set out in such other information	587
the district or subdivision was required to provide under that	588
section, or that the action of the budget commission appealed from	589
does not otherwise comply with sections 5705.01 to 5705.47 of the	590
Revised Code. The notice of appeal shall be filed with the board	591
of tax appeals, and a true copy thereof shall be filed with the	592
tax commissioner, the county auditor, and with the fiscal officer	593
of each taxing district or political subdivision authorized to	594
levy the tax complained of, and such notice of appeal and copies	595
thereof must be filed within thirty days after the budget	596
commission has certified its action as provided by section 5705.34	597
of the Revised Code. Such notice of appeal and the copies thereof	598
may be filed either in person or by certified mail. If filed by	599
certified mail, the date of the United States postmark placed on	600
the sender's receipt by the postal employee to whom the notice of	601
appeal is presented shall be treated as the date of filing.	602

Prior to filing the appeal provided by this section, the	603
appellant shall deposit with the county auditor of the county or,	604
in the event the appeal concerns joint taxing districts in two or	605
more counties, with the county auditor of the county with the	606
greatest valuation of taxable property the sum of five hundred	607
dollars to cover the costs of the proceeding. The county auditor	608
shall forthwith issue hisa pay-in order and pay such money into	609
the county treasury to the credit of the general fund. The	610
appellant shall produce the receipt of the county treasurer for	611
such deposit and shall file such receipt with the notice of	612
appeal.	613

The board of tax appeals shall forthwith consider the matter	614
presented on appeal from the action of the county budget	615
commission and may modify any action of the commission with	616
reference to the fixing of tax rates, to the end that no tax rate	617
shall be levied above that necessary to produce the revenue set	618
out in the budget ofneeded by the taxing district or political	619
subdivision as necessary for the ensuing fiscal year and to the	620
end that the action of the budget commission appealed from shall	621
otherwise be in conformity with sections 5705.01 to 5705.47 of the	622
Revised Code. The findings of the board of tax appeals shall be	623
substituted for the findings of the budget commission and shall be	624
certified to the county auditor and the taxing authority of the	625
taxing district or political subdivision affected as the action of	626
such budget commission under sections 5705.01 to 5705.47 of the	627
Revised Code and to the tax commissioner.	628

The board of tax appeals shall promptly prepare a cost bill	629
listing the expenses incurred by the board in conducting any	630
hearing on the appeal and certify the cost bill to the county	631
auditor of the county receiving the deposit for costs, who shall	632
forthwith draw hisa warrant on the general fund of the county in	633
favor of the person or persons named in the bill of costs	634
certified by the board of tax appeals.	635

In the event the appellant prevails, the board of tax appeals	636
promptly shall direct the county auditor to refund the deposit to	637
the appellant and the costs shall be taxed to the taxing district	638
or political subdivision involved in the appeal. The county	639
auditor shall withhold from any funds then or thereafter in his	640
the auditor's possession belonging to the taxing district or	641
political subdivision named in the order of the board of tax	642
appeals and shall reimburse the general fund of the county.	643

If the appellant fails, the costs shall be deducted from the	644
deposit provided for in this section and any balance which remains	645
shall be refunded promptly to the appellant by warrant of the	646
county auditor drawn on the general fund of the county.	647

Nothing in this section or any section of the Revised Code	648
shall permit or require the levying of any rate of taxation,	649
whether within the ten-mill limitation or whether the levy has	650
been approved by the electors of the taxing district, the	651
political subdivision or the charter of a municipal corporation in	652
excess of such ten-mill limitation, unless such rate of taxation	653
for the ensuing fiscal year is clearly required by a budget or	654
appropriation measure of the taxing district or political	655
subdivision properly and lawfully advertised, adopted, and filed	656
pursuant to the provisions of sections 5705.01 to 5705.47 of the	657
Revised Codeunder this chapter.	658

In the event more than one appeal is filed involving the same	659
taxing district or political subdivision, all such appeals may be	660
consolidated by the board of tax appeals and heard at the same	661
time.	662

Nothing herein contained shall be construed to bar or	663
prohibit the tax commissioner from initiating an investigation or	664
hearing on itsthe commissioner's own motion.	665

The tax commissioner shall adopt and issue such orders,	666
rules, and instructions, not inconsistent with law, as hethe	667
commissioner deems necessary, as to the exercise of the powers and	668
the discharge of the duties of any particular county budget	669
commission, county auditor, or other officer which relate to the	670
budget, the assessment of property, or the levy and collection of	671
taxes. The commissioner shall cause the orders and instructions	672
issued by himthe commissioner to be obeyed.	673

Sec. 5705.35.  (A) The certification of the budget	674
commission to the taxing authority of each subdivision or taxing	675
unit, as set forth in section 5705.34 of the Revised Code, shall	676
show the various funds of such subdivisions other than funds to be	677
created by transfer and shall be filed by the county budget	678
commission with such taxing authority on or before the first day	679
of March in the case of school districts and on or before the	680
first day of September in each year in the case of all other	681
taxing authorities. There shall be set forth on the credit side	682
of each fund the estimated unencumbered balances and receipts, and	683
if a tax is to be levied for such fund, the estimated revenue to	684
be derived therefrom, the rate of the levy, and what portion	685
thereof is within, and what in excess of, the ten-mill tax	686
limitation, and on the debit side, the total appropriations that	687
may be made therefrom. Subject to division (G) of section 5705.29	688
of the Revised Code, any reserve balance in an account established	689
under section 5705.13 of the Revised Code for the purpose	690
described in division (A)(1) of that section, and the principal of	691
a nonexpendable trust fund established under section 5705.131 of	692
the Revised Code and any additions to principal arising from	693
sources other than the reinvestment of investment earnings arising	694
from that fund, are not unencumbered balances for the purposes of	695
this section. There shall be attached to the certification a	696
summary, which shall be known as the "official certificate of	697
estimated resources," that shall state the total estimated	698
resources of each fund of the subdivision that are available for	699
appropriation in the fiscal year, other than funds to be created	700
by transfer, and a statement of the amount of the total tax	701
duplicate of the school district to be used in the collection of	702
taxes for the following calendar year. Before the end of the	703
fiscal year, the taxing authority of each subdivision and other	704
taxing unit shall revise its tax budget, if one was adopted, so	705
that the total contemplated expenditures from any fund during the	706
ensuing fiscal year will not exceed the total appropriations that	707
may be made from such fund, as determined by the budget commission	708
in its certification; and such revised budget shall be the basis	709
of the annual appropriation measure.	710

(B)(1) Except as otherwise provided in division (B)(2) of	711
this section, revenues from real property taxes scheduled to be	712
settled on or before the tenth day of August and the fifteenth day	713
of February of a fiscal year under divisions (A) and (C) of	714
section 321.24 of the Revised Code, and revenue from taxes levied	715
on personal property used in business scheduled to be settled on	716
or before the thirty-first day of October and the thirtieth day of	717
June of a fiscal year under divisions (B) and (D) of section	718
321.24 of the Revised Code shall not be available for	719
appropriation by a board of education prior to the fiscal year in	720
which such latest scheduled settlement date occurs, except that	721
moneys advanced to the treasurer of a board of education under	722
division (A)(2)(b) of section 321.34 of the Revised Code shall be	723
available for appropriation in the fiscal year in which they are	724
paid to the treasurer under such section. If the date for any	725
settlement of taxes is extended under division (E) of section	726
321.24 of the Revised Code, the latest date set forth in divisions	727
(A) to (D) of that section shall be used to determine in which	728
fiscal year the revenues are first available for appropriation.	729

(2) Revenues available for appropriation by a school	730
district during a fiscal year may include amounts borrowed in that	731
fiscal year under section 133.301 of the Revised Code in	732
anticipation of the collection of taxes that are to be included in	733
the settlements made under divisions (C) and (D) of section 321.24	734
of the Revised Code in the ensuing fiscal year.	735

Sec. 5705.38.  (A) This division does not apply to school	736
district appropriation measures. On or about the first day of	737
each year, the taxing authority of each subdivision or other	738
taxing unit shall pass an appropriation measure, and thereafter	739
during the year it may pass any supplemental appropriation	740
measures as it finds necessary, based on the revised tax budget	741
andor the official certificate of estimated resources or	742
amendments of the certificate. If adoption of a tax budget was	743
waived under section 5705.281 of the Revised Code, appropriation	744
measures shall be based on the official certificate of estimated	745
resources. If it desires to postpone the passage of the annual	746
appropriation measure until an amended certificate is received	747
based on the actual balances, it may pass a temporary	748
appropriation measure for meeting the ordinary expenses of the	749
taxing unit until no later than the first day of April of the	750
current year, and the appropriations made in the temporary measure	751
shall be chargeable to the appropriations in the annual	752
appropriation measure for that fiscal year when passed.	753

(B) A board of education shall pass its annual appropriation	754
measure by the first day of October. If, by the first day of	755
October, a board has not received either the amended certificates	756
of estimated resources required by division (B) of section 5705.36	757
of the Revised Code or certifications that no amended certificates	758
need be issued, the adoption of the annual appropriation measure	759
shall be delayed until the amended certificates or certifications	760
are received. Prior to the passage of the annual appropriation	761
measure, the board may pass a temporary appropriation measure for	762
meeting the ordinary expenses of the district until it passes an	763
annual appropriation measure, and appropriations made in the	764
temporary measure shall be chargeable to the appropriations in the	765
annual appropriation measure for that fiscal year when passed.	766
During the fiscal year and after the passage of the annual	767
appropriation measure, a district may pass any supplemental	768
appropriation measures as it finds necessary, based on the revised	769
tax budget andor the official certificate of estimated resources	770
or amendments of the certificate. School district appropriation	771
measures shall be in the form as the auditor of state, after	772
consultation with the tax commissioner, prescribes.	773

(C) Appropriation measures shall be classified so as to set	774
forth separately the amounts appropriated for each office,	775
department, and division, and, within each, the amount	776
appropriated for personal services. In the case of a municipal	777
university, the board of directors of which have assumed, in the	778
manner provided by law, custody and control of the funds of the	779
university, funds shall be appropriated as a lump sum for the use	780
of the university.	781

Sec. 5705.51.  (A) As used in this section:

782

(1) "Indirect debt limit" means such limitation, in effect	783
at the time of issuance, upon the issuance of unvoted general	784
obligation bonds, notes, or certificates of indebtedness by a	785
subdivision as results from a restriction on the amount of unvoted	786
taxes which may be levied annually upon the general tax lists and	787
duplicates.	788

(2) "Direct debt limit" means those respective limitations	789
on the principal amount of net indebtedness which may be created	790
or incurred by a municipal corporation, school district, county,	791
or township, imposed by sections 133.05, 133.06, 133.07, and	792
133.09 of the Revised Code.	793

(3) "Ten-mill limit" means unvoted taxes of ten mills	794
annually on each dollar of tax valuation of property on the	795
general tax lists and duplicates.	796

(4) "One per cent limit" means unvoted taxes at such rates	797
upon the tax value as amounts to one per cent annually of the true	798
value in money of property that is listed on the general tax lists	799
and duplicates.	800

(5) "Exempt obligations" means unvoted general obligation	801
bonds, notes, and certificates of indebtedness of a municipal	802
corporation, school district, county, or township that are	803
excluded, exempted, or not considered in calculating or	804
ascertaining the direct debt limit of such a subdivision; and also	805
includes unvoted general obligation bonds, notes, and certificates	806
of indebtedness of a municipal corporation if the ordinance	807
authorizing their issuance provides that the debt charges thereon,	808
or, in the case of bond anticipation notes, the debt charges on	809
the bonds in anticipation of which they are issued, shall be paid	810
from lawfully available municipal income taxes to the extent	811
needed to meet such debt charges, and contains a covenant, hereby	812
authorized, to appropriate annually from such municipal income	813
taxes such amount as is necessary to meet such annual debt	814
charges, and further makes provision that any ad valorem property	815
taxes which are provided for pursuant to section 133.22 or 133.23	816
of the Revised Code shall, in addition to any other reduction	817
permitted by those sections, be reduced by the amount of such	818
municipal income taxes to be applied to such debt charges in	819
compliance with such covenant.	820

(B) For the purposes of calculating the indirect debt limit,	821
the debt charges on outstanding or proposed exempt obligations	822
required to be taken into consideration in determining the	823
indirect debt limit shall first be allocated to the computed	824
amount of taxes in excess of the ten-mill limit that would result	825
if ad valorem property taxes were levied to the full extent of the	826
one per cent limit, and any balance of such debt charges shall be	827
allocated to the ten-mill limit. This section does not enlarge	828
the direct debt limits.	829

(C) Upon request of the bond issuing authority or the fiscal	830
officer of a subdivision, the appropriate county auditor or county	831
auditors shall promptly certify all data necessary to make the	832
determinations under division (B) of this section and to ascertain	833
the indirect debt limits, including, for each overlapping	834
subdivision, the tax value and the true value in money of property	835
on the general tax lists and duplicates of the subdivision, stated	836
separately for each classification of property the tax value of	837
which is determined by applying a different percentage to true	838
value, the applicable debt charges, and such other data as is	839
necessary for the purpose. For such purpose, the aggregate true	840
value in money of each such classification of property may be	841
determined by application of the appropriate mathematical factor	842
to the aggregate tax value of such classification of property on	843
the general tax lists and duplicates. The fiscal officer of each	844
overlapping subdivision and the tax commissioner shall promptly	845
provide to the county auditor such additional information as is	846
needed by the county auditor to make the certification required by	847
this division, including certification to the county auditor by	848
each such fiscal officer as to the then exempt obligations of the	849
subdivision. The certificate of the county auditor shall be	850
conclusive as to the data therein set forth for the purposes of	851
determining the indirect debt limit. The calculations and	852
certifications provided for in this section relating to the one	853
per cent limit need not be made or provided where the annual debt	854
charges required to be taken into consideration in ascertaining	855
the indirect debt limit will not exceed the ten-mill limit.	856

(D) A municipal corporation which has outstanding exempt	857
obligations supported by municipal income taxes as provided in	858
division (A)(5) of this section shall, to the extent necessary	859
therefor, levy and continue to levy such income tax and apply the	860
proceeds thereof in accordance with its covenants made in the	861
issuance of such obligations, and to such extent such tax shall	862
not be subject to diminution by initiative or referendum, or	863
diminution by statute unless provision is made therein for an	864
adequate substitute therefor, other than unvoted taxes on the	865
general tax lists and duplicates, assigned by law to such purpose.	866

(E) If the tax budget or the official certificate of	867
estimated resources of a subdivision shows that funds available	868
for the purpose, including municipal income taxes under division	869
(D) of this section, but excluding unvoted taxes within the	870
ten-mill limit, will be insufficient to pay the debt charges on	871
all outstanding obligations of the subdivision that have been	872
shown as exempt obligations on any certificate by the fiscal	873
officer delivered to the county auditor pursuant to division (C)	874
of this section, whether or not qualifying as such in any	875
subsequent certificate, sections 5705.31 and 5705.32 of the	876
Revised Code shall be specially applied as follows with respect to	877
the debt charges on such obligations:	878

(1) The amount of such debt charges and the debt charges on	879
other unvoted general obligations of the subdivision, not	880
otherwise provided for, shall be charged against the minimum levy	881
of such subdivision provided pursuant to division (D) of section	882
5705.31 of the Revised Code to the full amount of such minimum	883
levy, if necessary, without preserving to such subdivision any	884
operating levy within the ten-mill limit;	885

(2) If the debt charges on such obligations, and on any	886
other outstanding unvoted general obligations of the subdivision	887
not otherwise provided for, exceed the minimum levy of such	888
subdivision, there shall be levied millage upon the tax value of	889
property on the general tax lists and duplicates of the	890
subdivision in excess of the ten-mill limit, but within the one	891
per cent limit as to any property, in such amounts as are	892
necessary to make up such deficiency to the extent that such	893
deficiency does not exceed the debt charges, not otherwise	894
provided for, on the exempt obligations referred to in this	895
division;	896

(3) Only if the debt charges on such exempt obligations of	897
the subdivision are not fully provided for after application of	898
divisions (E)(1) and (2) of this section, the balance of such debt	899
charges shall be provided by adjustment of other minimum levies	900
pursuant to division (D) of section 5705.31 of the Revised Code.	901

If the subdivision is a municipal corporation that by charter	902
provides a tax-rate limitation pursuant to section 5705.18 of the	903
Revised Code, divisions (E)(1), (2), and (3) of this section shall	904
be applied only in a manner consistent with the applicable charter	905
provisions. If a levy for current operating expenses, whether or	906
not part of a levy for other purposes, is to be provided under	907
such charter in lieu of a minimum levy provided by division (D) of	908
section 5705.31 of the Revised Code, as a first step, such charter	909
levy shall be reduced by the amount of the levy for debt charges	910
on such exempt obligations only if and to the extent provided by	911
such charter, and if no part of such debt charges is to be paid	912
from a levy within the limitations imposed by the charter, the	913
full amount of such debt charges shall be considered the	914
deficiency under division (E) (2) of this section. The levy for	915
such debt charges under such subdivision shall not exceed any	916
applicable charter limitation. Any references in applicable	917
charter provisions to the limitations provided by the constitution	918
or laws or to a ten-mill limitation of Section 2, Article XII,	919
Ohio Constitution, shall be viewed by the county budget commission	920
as meaning the one per cent limit applicable under this section.	921
Division (E)(3) of this section shall not be applied to reduce any	922
levy within a charter tax-rate limitation.	923

This section does not alter the right of holders of exempt	924
obligations to share equally in taxes levied within the ten-mill	925
limit nor the general obligation character of such exempt	926
obligations, and the full faith and credit of the subdivision is	927
pledged thereto.	928

(F) If any levy is made under division (E)(2) of this	929
section, the amount of millage to be applied to tax values on the	930
general tax lists and duplicates shall be determined for each	931
classification of property the tax value of which is computed by	932
applying a different percentage to true value. The millage rates	933
applied to such classifications of property shall be calculated to	934
produce revenues in the aggregate amount to be provided under	935
division (E)(2) of this section, provided that no such millage	936
shall be added to the taxes on property that is already taxed to	937
the full extent of the one per cent limit, and the millage on each	938
other classification of property shall not result in a tax thereon	939
in excess of the one per cent limit, but the millage amount levied	940
under division (E)(2) of this section shall be the same as to all	941
classifications of property which may be taxed at the same millage	942
without exceeding the one per cent limit. In any event, the	943
millage amount levied under division (E)(2) of this section on all	944
land and improvements thereon in the subdivision shall be the	945
same.	946

(G) Nothing in this section shall be applied to impair the	947
authority of a municipal corporation under section 5705.18 of the	948
Revised Code. Levies which are authorized by the charter of a	949
municipal corporation without necessity for further vote and which	950
are available for debt charges shall continue to be treated as	951
levies outside the ten-mill limit and outside the one per cent	952
limit in determining the indirect debt limit.	953

Section 2.  That existing sections 118.13, 3315.40, 3316.12,	954
3318.07, 5705.281, 5705.29, 5705.30, 5705.31, 5705.32, 5705.34,	955
5705.341, 5705.35, 5705.38, and 5705.51 of the Revised Code are	956
hereby repealed.	957