To amend sections 3316.03, 5705.12, 5705.29, 5705.35, 5705.36, 5747.51, and 5747.62; to amend, for the purpose of adopting a new section number as indicated in parentheses, section 5705.13 (5705.121); to enact new section 5705.13 and section 5705.131; and to repeal sections 305.23, 505.83, and 505.831 of the Revised Code to permit taxing authorities of subdivisions to create accounts in which funds may be reserved for budget stabilization, self-insurance claim payments, the payment of claims under retrospective ratings plans for workers' compensation, accumulated employee leave, capital projects, and nonexpendable trusts, and to specify that certain amounts in such reserves shall not affect revenue distributions to certain subdivisions through local government funds.

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

Sec. 3316.03. (A) The auditor of state shall declare a school district to be in a state of fiscal watch if the auditor of state determines that all of the following conditions are satisfied with respect to the school district:

(1) An operating deficit has been certified for the current fiscal year by the auditor of state under section 3313.483 of the Revised Code, and the certified operating deficit exceeds eight per cent of the school district's general fund revenue for the preceding fiscal year;

(2) The unencumbered cash balance in the school district's general fund at the close of the preceding fiscal year, less any advances of property taxes, was less than eight per cent of the expenditures made from the general fund for the preceding fiscal year;

(3) A majority of the voting electors have not voted in favor of levying a tax under section 5705.194 or 5705.21 or Chapter 5748. of the Revised Code that the auditor of state expects will raise enough additional revenue in the next succeeding fiscal year that divisions (A)(1) and (2) of this section will not apply to the district in such next succeeding fiscal year.

(B) The auditor of state, after consulting with the superintendent of public instruction, shall issue an order declaring a school district to be in a state of fiscal emergency if the school district board fails, pursuant to section 3316.04 of the Revised Code, to submit a plan acceptable to the state superintendent of public instruction within one hundred twenty days of the auditor's declaration pursuant to division (A) of this section, or if the auditor of state determines that all of the following conditions are satisfied with respect to the school district:

(1) The board of education of the school district is not able to demonstrate, to the auditor of state's satisfaction, the district's ability to repay outstanding loans received pursuant to section 3313.483 of the Revised Code or to repay securities issued pursuant to section 133.301 of the Revised Code in accordance with applicable repayment schedules unless the board requests additional loans under section 3313.483 and section 133.301 of the Revised Code in an aggregate principal amount exceeding fifty per cent of the sum of the following:

(a) The aggregate original principal amount of loans received in the preceding fiscal year under section 3313.483 of the Revised Code;

(b) The aggregate amount borrowed by the district under section 133.301 of the Revised Code, excluding any additional amount borrowed as authorized under division (C) of that section.

(2) An operating deficit has been certified for the current fiscal year by the auditor of state under section 3313.483 of the Revised Code, and the certified operating deficit exceeds fifteen per cent of the school district's general fund revenue for the preceding fiscal year. In determining the amount of an operating deficit under division (B)(2) of this section, the auditor of state shall credit toward the amount of that deficit only the amount that may be borrowed from the spending reserve balance as determined under section 133.301 and division (G)(F) of section 5705.29 of the Revised Code;.

(3) A majority of the voting electors have not voted in favor of levying a tax under section 5705.194 or 5705.21 or Chapter 5748. of the Revised Code that the auditor of state expects will raise enough additional revenue in the next succeeding fiscal year that divisions (A)(1) and (2) of this section will not apply to the district in such next succeeding fiscal year.

(4) The school district is one that, at the time of the auditor of state's determination under this section, had an average daily membership of more than ten thousand students as most recently reported to the department of education pursuant to division (A) of section 3317.03 of the Revised Code.

(C) In making the determinations under this section, the auditor of state may use financial reports required under section 117.43 of the Revised Code; tax budgets, certificates of estimated resources and amendments thereof, annual appropriating measures and spending plans, and any other documents or information prepared pursuant to Chapter 5705. of the Revised Code; and any other documents, records, or information available to the auditor of state that indicate the conditions described in divisions (A) and (B) of this section.

(D) The auditor of state shall certify the action taken under division (A) or (B) of this section to the board of education of the school district, the director of budget and management, the mayor or county auditor who could be required to act pursuant to division (B)(1) of section 3316.05 of the Revised Code, and to the superintendent of public instruction.

(E) A determination by the auditor of state under this section that a fiscal emergency condition does not exist is final and conclusive and not appealable. A determination by the auditor of state under this section that a fiscal emergency exists is final, except that the board of education of the school district affected by such a determination may appeal the determination of the existence of a fiscal emergency condition to the court of appeals having territorial jurisdiction over the school district. The appeal shall be heard expeditiously by the court of appeals and for good cause shown shall take precedence over all other civil matters except earlier matters of the same character. Notice of such appeal must be filed with the auditor of state and such court within thirty days after certification by the auditor of state to the board of education of the school district provided for in division (D) of this section. In such appeal, determinations of the auditor of state shall be presumed to be valid and the board of education shall have the burden of proving, by clear and convincing evidence, that each of the determinations made by the auditor of state as to the existence of a fiscal emergency condition under this section was in error. If the board of education fails, upon presentation of its case, to prove by clear and convincing evidence that each such determination by the auditor of state was in error, the court shall dismiss the appeal. The board of education and the auditor of state may introduce any evidence relevant to the existence or nonexistence of such fiscal emergency conditions. The pendency of any such appeal shall not affect or impede the operations of this chapter; no restraining order, temporary injunction, or other similar restraint upon actions consistent with this chapter shall be imposed by the court or any court pending determination of such appeal; and all things may be done under this chapter that may be done regardless of the pendency of any such appeal. Any action taken or contract executed pursuant to this chapter during the pendency of such appeal is valid and enforceable among all parties, notwithstanding the decision in such appeal. If the court of appeals reverses the determination of the existence of a fiscal emergency condition by the auditor of state, the determination no long LONGER has any effect, and any procedures undertaken as a result of the determination shall be terminated.

Sec. 5705.12. In addition to the funds provided for by sections 5705.09 and, 5705.121, 5705.13, AND 5705.131 of the Revised Code, the taxing authority of a subdivision may establish, with the approval of and in the manner prescribed by the auditor of state, such other funds as are desirable, and may provide by ordinance or resolution that money derived from specified sources other than the general property tax shall be paid directly into such funds. The auditor of state shall consult with the tax commissioner before giving his approval APPROVING SUCH FUNDS.

Sec. 5705.13 5705.121. A municipal corporation may establish in the manner provided by law a sanitary police pension fund, an urban redevelopment tax increment equivalent fund, or a cemetery fund. A township may establish by law a cemetery fund.

Sec. 5705.13. (A) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY ESTABLISH A RESERVE BALANCE ACCOUNT TO ACCUMULATE CURRENTLY AVAILABLE RESOURCES FOR ANY OF THE FOLLOWING PURPOSES:

(1) TO STABILIZE SUBDIVISION BUDGETS AGAINST CYCLICAL CHANGES IN REVENUES AND EXPENDITURES;

(2) EXCEPT AS OTHERWISE PROVIDED BY THIS SECTION, TO PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A SELF-INSURANCE PROGRAM FOR THE SUBDIVISION, IF THE SUBDIVISION IS PERMITTED BY LAW TO ESTABLISH SUCH A PROGRAM;

(3) TO PROVIDE FOR THE PAYMENT OF CLAIMS UNDER A RETROSPECTIVE RATINGS PLAN FOR WORKERS' COMPENSATION.

THE ORDINANCE OR RESOLUTION ESTABLISHING A RESERVE BALANCE ACCOUNT SHALL STATE THE PURPOSE FOR WHICH THE RESERVE BALANCE ACCOUNT IS ESTABLISHED, THE FUND IN WHICH THE ACCOUNT IS TO BE ESTABLISHED, AND THE TOTAL AMOUNT OF MONEY TO BE RESERVED IN THE ACCOUNT.

A SUBDIVISION THAT PARTICIPATES IN A RISK-SHARING POOL, BY WHICH GOVERNMENTS POOL RISKS AND FUNDS AND SHARE IN THE COSTS OF LOSSES, SHALL NOT ESTABLISH A RESERVE BALANCE ACCOUNT TO PROVIDE SELF-INSURANCE FOR THE SUBDIVISION.

A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT HAVE MORE THAN THREE RESERVE BALANCE ACCOUNTS AT ANY TIME. NOT MORE THAN ONE RESERVE BALANCE ACCOUNT MAY BE ESTABLISHED FOR EACH OF THE PURPOSES PERMITTED UNDER THIS SECTION. MONEY TO THE CREDIT OF A RESERVE BALANCE ACCOUNT MAY BE EXPENDED ONLY FOR THE PURPOSE FOR WHICH THE ACCOUNT WAS ESTABLISHED.

A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE DESCRIBED IN DIVISION (A)(1) OF THIS SECTION SHALL BE ESTABLISHED IN THE GENERAL FUND OF THE SUBDIVISION, AND THE AMOUNT OF MONEY TO BE RESERVED IN THAT ACCOUNT IN ANY FISCAL YEAR SHALL NOT EXCEED FIVE PER CENT OF THE GENERAL FUND REVENUE FOR THE PRECEDING FISCAL YEAR. SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT ESTABLISHED UNDER DIVISION (A)(1) OF THIS SECTION SHALL NOT BE CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF THE SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION (A)(1) OF SECTION 5705.36 of the Revised Code.

AT ANY TIME, A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY REDUCE OR ELIMINATE THE RESERVE BALANCE IN A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE DESCRIBED IN DIVISION (A)(1) OF THIS SECTION.

A RESERVE BALANCE ACCOUNT ESTABLISHED FOR THE PURPOSE DESCRIBED IN DIVISION (A)(2) OR (3) OF THIS SECTION SHALL BE ESTABLISHED IN THE GENERAL FUND OF THE SUBDIVISION OR BY THE ESTABLISHMENT OF A SEPARATE INTERNAL SERVICE FUND ESTABLISHED TO ACCOUNT FOR THE OPERATION OF THE SELF-INSURANCE OR RETROSPECTIVE RATINGS PLAN PROGRAM, AND SHALL BE BASED ON SOUND ACTUARIAL PRINCIPLES. THE TOTAL AMOUNT OF MONEY IN A RESERVE BALANCE ACCOUNT FOR SELF-INSURANCE MAY BE EXPRESSED IN DOLLARS OR AS THE AMOUNT DETERMINED TO REPRESENT AN ADEQUATE RESERVE ACCORDING TO SOUND ACTUARIAL PRINCIPLES.

A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY RESCIND A RESERVE BALANCE ACCOUNT ESTABLISHED UNDER THIS DIVISION. IF A RESERVE BALANCE ACCOUNT IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE ACCOUNT SHALL BE TRANSFERED TO THE FUND OR FUNDS FROM WHICH THE MONEY ORIGINALLY WAS TRANSFERRED.

(B) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY ESTABLISH A SPECIAL REVENUE FUND FOR THE PURPOSE OF ACCUMULATING RESOURCES FOR THE PAYMENT OF ACCUMULATED SICK LEAVE AND VACATION LEAVE, AND FOR PAYMENTS IN LIEU OF TAKING COMPENSATORY TIME OFF, UPON THE TERMINATION OF EMPLOYMENT OR THE RETIREMENT OF OFFICERS AND EMPLOYEES OF THE SUBDIVISION. NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 of the Revised Code, THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, MAY TRANSFER MONEY TO THE SPECIAL REVENUE FUND FROM ANY OTHER FUND OF THE SUBDIVISION FROM WHICH SUCH PAYMENTS MAY LAWFULLY BE MADE. THE TAXING AUTHORITY, BY RESOLUTION OR ORDINANCE, MAY RESCIND A SPECIAL REVENUE FUND ESTABLISHED UNDER THIS DIVISION. IF A SPECIAL REVENUE FUND IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH THE MONEY ORIGINALLY WAS TRANSFERRED.

(C) A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY ESTABLISH A CAPITAL PROJECTS FUND FOR THE PURPOSE OF ACCUMULATING RESOURCES FOR THE ACQUISITION, CONSTRUCTION, OR IMPROVEMENT OF FIXED ASSETS OF THE SUBDIVISION. MORE THAN ONE CAPITAL PROJECTS FUND MAY BE ESTABLISHED AND MAY EXIST AT ANY TIME. THE ORDINANCE OR RESOLUTION SHALL IDENTIFY THE SOURCE OF THE MONEY TO BE USED TO ACQUIRE, CONSTRUCT, OR IMPROVE THE FIXED ASSETS IDENTIFIED IN THE RESOLUTION OR ORDINANCE, THE AMOUNT OF MONEY TO BE ACCUMULATED FOR THAT PURPOSE, THE PERIOD OF TIME OVER WHICH THAT AMOUNT IS TO BE ACCUMULATED, AND THE FIXED ASSETS THAT THE TAXING AUTHORITY INTENDS TO ACQUIRE, CONSTRUCT, OR IMPROVE WITH THE MONEY TO BE ACCUMULATED IN THE FUND.

A TAXING AUTHORITY OF A SUBDIVISION SHALL NOT ACCUMULATE MONEY IN A CAPITAL PROJECTS FUND FOR MORE THAN FIVE YEARS AFTER THE RESOLUTION OR ORDINANCE ESTABLISHING THE FUND IS ADOPTED. IF THE SUBDIVISION HAS NOT ENTERED INTO A CONTRACT FOR THE ACQUISITION, CONSTRUCTION, OR IMPROVEMENT OF FIXED ASSETS FOR WHICH MONEY WAS ACCUMULATED IN SUCH A FUND BEFORE THE END OF THAT FIVE-YEAR PERIOD, THE FISCAL OFFICER OF THE SUBDIVISION SHALL TRANSFER ALL MONEY IN THE FUND TO THE FUND OR FUNDS FROM WHICH THAT MONEY ORIGINALLY WAS TRANSFERRED OR THE FUND THAT ORIGINALLY WAS INTENDED TO RECEIVE THE MONEY.

A TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY RESCIND A CAPITAL PROJECTS FUND. IF A CAPITAL PROJECTS FUND IS RESCINDED, MONEY THAT HAS ACCUMULATED IN THE FUND SHALL BE TRANSFERRED TO THE FUND OR FUNDS FROM WHICH THE MONEY ORIGINALLY WAS TRANSFERRED.

NOTWITHSTANDING SECTIONS 5705.14, 5705.15, AND 5705.16 of the Revised Code, THE TAXING AUTHORITY OF A SUBDIVISION, BY RESOLUTION OR ORDINANCE, MAY TRANSFER MONEY TO THE CAPITAL PROJECTS FUND FROM ANY OTHER FUND OF THE SUBDIVISION THAT MAY LAWFULLY BE USED FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, OR IMPROVING THE FIXED ASSETS IDENTIFIED IN THE RESOLUTION OR ORDINANCE.

Sec. 5705.131. A TAXING AUTHORITY OF A SUBDIVISION MAY ESTABLISH A NONEXPENDABLE TRUST FUND FOR THE PURPOSE OF RECEIVING DONATIONS OR CONTRIBUTIONS THAT THE DONOR OR CONTRIBUTOR REQUIRES TO BE MAINTAINED INTACT. THE PRINCIPAL OF SUCH FUND MAY BE INVESTED, AND THE INVESTMENT EARNINGS ON THE PRINCIPAL SHALL BE CREDITED TO THE FUND. THE PRINCIPAL OF THE FUND, AND ANY ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THE FUND, SHALL NOT BE CONSIDERED PART OF THE UNENCUMBERED BALANCE OR REVENUE OF THE SUBDIVISION UNDER DIVISION (A) OF SECTION 5705.35 OR DIVISION (A)(1) OF SECTION 5705.36 of the Revised Code. ONLY INVESTMENT EARNINGS ARISING FROM INVESTMENT OF THE PRINCIPAL OR INVESTMENT OF SUCH ADDITIONS TO PRINCIPAL MAY BE CONSIDERED AN UNENCUMBERED BALANCE OR REVENUE OF THE SUBDIVISION UNDER THAT DIVISION.

Sec. 5705.29. The tax budget shall present the following information in such detail as is prescribed by the auditor of state, unless an alternative form of the budget is permitted under section 5705.281 of the Revised Code:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(F)(1) As used in this division, "police or fire department equipment expenditures" includes expenditures for equipment used to provide ambulance or emergency medical services operated by a police or fire department.

A board of township trustees may include in its budget an estimate of expenditures to be known as a reserve balance for police or fire department equipment or road maintenance equipment expenditures. This reserve balance shall not exceed ten per cent of the total estimated appropriations included in the township budget estimate. If, in accordance with division (A) of section 505.83 of the Revised Code, the board of township trustees has unanimously adopted a resolution establishing the reserve balance account and specifying the reason for its creation and has certified the resolution to the county auditor, the full amount of the reserve balance, as allowed by the budget commission, shall be turned over to the township each year by the county auditor and county treasurer out of the second semiannual settlement of taxes until the date specified in the resolution, which shall not be later than five years from the date of the first such deposit in the account, or until the reserve amount has been reached, whichever occurs first.

(2) Upon receipt of a certified copy of a resolution to rescind the creation of a township reserve balance account pursuant to division (B) of section 505.83 of the Revised Code, the county auditor shall close the account and transfer the account moneys and depository interest apportioned to it to the township's general fund.

(G) A board of education may include in its budget a spending reserve, which shall consist of an estimate of expenditures not to exceed the district's spending reserve balance. A district's spending reserve balance is the amount by which fifty per cent of the district's estimated personal property taxes to be settled during the calendar year in which the fiscal year ends exceeds the estimated amount of personal property taxes to be so settled and received by the district during that fiscal year. Moneys from a spending reserve shall be appropriated in accordance with section 133.301 of the Revised Code.

(H) As used in this division:

(1) "Police or fire department equipment expenditures" includes expenditures for equipment used to provide ambulance or emergency medical services operated by a police or fire department.

(2) "Detention facility" means any place used for the confinement of a person charged with or convicted of any crime or alleged or found to be a delinquent or unruly child.

The legislative authority of a municipal corporation may include in its budget an estimate of expenditures to be known as a reserve balance for police or fire department equipment expenditures, for constructing, acquiring, equipping, or repairing a detention facility, or for road maintenance equipment expenditures by creating, by ordinance or resolution, a reserve balance account. Money credited to the account may be derived from any general fund sources or from the proceeds of a special levy that may be used for the purpose for which the account is established. The ordinance or resolution shall state that money in the account may be expended only for the purpose for which the account is established, that the account will be maintained until a specified date not to exceed five years from the date of the first deposit in the account, and that the total amount of money in all reserve balance accounts derived from general fund sources shall not exceed ten per cent of the current total estimated expenditures from the municipal corporation's general fund, and the total amount of money in all reserve balance accounts derived from a special levy shall not exceed ten per cent of the current total estimated expenditures from the special levy. The legislative authority shall certify a copy of the ordinance or resolution to the county auditor. Upon receiving the certified copy, the county auditor and county treasurer shall turn over to the municipal corporation, out of the second semiannual settlement of taxes, any amount of the reserve balance to be derived from property tax sources, but only until the date specified in the ordinance or resolution or until the reserve amount as indicated in the ordinance or resolution has been reached, whichever occurs first.

A legislative authority may create a separate reserve balance account under this division for police department equipment expenditures, fire department equipment expenditures, or ambulance or emergency medical services equipment expenditures, or any combination thereof. Each such account is subject to the provisions of this section regarding a single account for all such purposes.

Upon receiving a certified copy of an ordinance or resolution to rescind the creation of a municipal reserve balance account, the county auditor shall close the account and transfer all money in the account to the municipal general fund, if the account is derived from the general fund, or to the fund to which proceeds of the special levy are credited, if the account is derived from the proceeds of a special levy.

(I) A board of county commissioners that has adopted a resolution establishing a reserve balance account under section 305.23 of the Revised Code may include in its budget an estimate of expenditures to be known as a reserve balance for the purpose for which the account was established under that section. The reserve shall not exceed ten per cent of the total estimated appropriations included in the budget estimate of the general fund in the case of a reserve balance account established under division (A) of that section, or ten per cent of the total estimated appropriations included in the budget estimate of the special fund in which the account is established in the case of a reserve balance account established under division (B) of that section. If the board of county commissioners has certified a copy of a resolution to the county auditor pursuant to that section, the county auditor and county treasurer shall deposit the amount of the annual reserve balance into the reserve balance account out of the second semiannual settlement of taxes until the date specified in that resolution, or until the reserve amount specified in the resolution has been reached, whichever occurs first.

Upon receiving a certified copy of a resolution rescinding a reserve balance account, the county auditor shall close the account and transfer all money in the account to a special fund created for the purpose of receiving that money. Money deposited into the fund from the reserve balance account shall be expended only for the purpose for which the account was established.

(J) The (G) EXCEPT AS OTHERWISE PROVIDED IN THIS DIVISION, THE county budget commission shall not reduce the taxing authority of a board of township trustees, a board of county commissioners, or the legislative authority of a municipal corporation SUBDIVISION as a result of the creation of a reserve balance account, and. EXCEPT AS OTHERWISE PROVIDED IN THIS DIVISION, THE COUNTY BUDGET COMMISSION shall not consider the amount in a reserve balance account OF A TOWNSHIP, COUNTY, OR MUNICIPAL CORPORATION as an unencumbered balance or as revenue for the purposes of division (E)(3) or (4) of section 5747.51 or division (E)(3) or (4) of section 5747.62 of the Revised Code. THE COUNTY BUDGET COMMISSION MAY REQUIRE DOCUMENTATION OF THE REASONABLENESS OF THE RESERVE BALANCE HELD IN ANY RESERVE BALANCE ACCOUNT. THE COMMISSION SHALL CONSIDER ANY AMOUNT IN A RESERVE BALANCE ACCOUNT THAT IT DETERMINES TO BE UNREASONABLE AS UNENCUMBERED AND AS REVENUE FOR THE PURPOSES OF SECTIONS 5747.51 AND 5747.62 OF THE REVISED CODE AND MAY TAKE SUCH AMOUNTS INTO CONSIDERATION WHEN DETERMINING WHETHER TO REDUCE THE TAXING AUTHORITY OF A SUBDIVISION.

Sec. 5705.35. (A) The certification of the budget commission to the taxing authority of each subdivision or taxing unit, as set forth in section 5705.34 of the Revised Code, shall show the various funds of such subdivisions other than funds to be created by transfer and shall be filed by the county budget commission with such taxing authority on or before the first day of March in the case of school districts and on or before the first day of September in each year in the case of all other taxing authorities. There shall be set forth on the credit side of each fund the estimated unencumbered balances and receipts, and if a tax is to be levied for such fund, the estimated revenue to be derived therefrom, the rate of the levy, and what portion thereof is within, and what in excess of, the ten-mill tax limitation, and on the debit side, the total appropriations that may be made therefrom. SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT ESTABLISHED UNDER SECTION 5705.13 of the Revised Code FOR THE PURPOSE DESCRIBED IN DIVISION (A)(1) OF THAT SECTION, AND THE PRINCIPAL OF A NONEXPENDABLE TRUST FUND ESTABLISHED UNDER SECTION 5705.131 of the Revised Code AND ANY ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THAT FUND, ARE NOT UNENCUMBERED BALANCES FOR THE PURPOSES OF THIS SECTION. There shall be attached thereto TO THE CERTIFICATION a summary, which shall be known as the "official certificate of estimated resources," which THAT shall state the total estimated resources of each fund of the subdivision that are available for appropriation in the fiscal year, other than funds to be created by transfer, and a statement of the amount of the total tax duplicate of the school district to be used in the collection of taxes for the following calendar year. Before the end of the fiscal year, the taxing authority of each subdivision and other taxing unit shall revise its tax budget so that the total contemplated expenditures from any fund during the ensuing fiscal year will not exceed the total appropriations that may be made from such fund, as determined by the budget commission in its certification; and such revised budget shall be the basis of the annual appropriation measure.

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

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

Sec. 5705.36. (A)(1) On or about the first day of each fiscal year, the fiscal officer of each subdivision and other taxing unit shall certify to the county auditor the total amount from all sources available for expenditures from each fund set up in the tax budget or, if adoption of a tax budget was waived under section 5705.281 of the Revised Code, from each fund created by or on behalf of the taxing authority. The amount certified shall include any UNENCUMBERED balances that existed at the end of the preceding year, EXCLUDING ANY OF THE FOLLOWING:

(a) SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE REVISED CODE, ANY RESERVE BALANCE IN AN ACCOUNT ESTABLISHED UNDER SECTION 5705.13 of the Revised Code FOR THE PURPOSE DESCRIBED IN DIVISION (A)(1) OF THAT SECTION;

(b) THE PRINCIPAL OF A NONEXPENDABLE TRUST FUND ESTABLISHED UNDER SECTION 5705.131 of the Revised Code AND ANY ADDITIONS TO PRINCIPAL ARISING FROM SOURCES OTHER THAN THE REINVESTMENT OF INVESTMENT EARNINGS ARISING FROM THAT FUND.

A school district's certification shall separately show the amount of any notes and unpaid and outstanding expenses on the preceding thirtieth day of June that are to be paid from property taxes that are to be settled during the current fiscal year under divisions (C) and (D) of section 321.24 of the Revised Code, and the amount of any spending reserve available for appropriation during the current fiscal year under section 133.301 of the Revised Code. The budget commission, taking into consideration the balances and revenues to be derived from taxation and other sources, shall revise its estimate of the amounts that will be credited to each fund from such sources, and shall certify to the taxing authority of each subdivision an amended official certificate of estimated resources. If the subdivision collects revenue available for the purposes of such fiscal year from a new source that is not included in an official certificate, or if the actual balances and receipts in any fund exceed the certified estimate, then upon the certification by its fiscal officer of the amount of the excess balances and receipts, the commission shall certify an amended official certificate including them.

(2) Upon a determination by the treasurer of a board of education that the revenue to be collected by a school district will be greater or less than the amount included in an official certificate, the treasurer shall certify the amount of the deficiency or excess to the commission, and the commission shall certify an amended official certificate reflecting the deficiency or excess.

(3) Upon a determination by the county auditor that the revenue to be collected by the county will be greater or less than the amount included in an official certificate, the county auditor shall certify the amount of the deficiency or excess to the commission, and if the commission determines that the auditor's certification is reasonable, the commission shall certify an amended official certificate reflecting the deficiency or excess.

(4) Upon a determination by the fiscal officer of a municipal corporation that the revenue to be collected by the municipal corporation will be greater or less than the amount included in the AN official certificate, the fiscal officer shall certify the amount of the excess or deficiency to the commission, and if the commission determines that the fiscal officer's certification is reasonable, the commission shall certify an amended official certificate reflecting the deficiency or excess.

(5) The total appropriations made during the fiscal year from any fund shall not exceed the amount set forth as available for expenditure from such fund in the official certificate of estimated resources, or any amendment thereof, certified prior to the making of the appropriation or supplemental appropriation.

(B) At the time of settlement of taxes against which notes have been issued under section 133.301 or division (D) of section 133.10 of the Revised Code and at the time a tax duplicate is delivered pursuant to section 319.28 or 319.29 of the Revised Code, the county auditor shall determine whether the total amount to be distributed to each school district from such settlement or duplicate, when combined with the amounts to be distributed from any subsequent settlement, will increase or decrease the amount available for appropriation during the current fiscal year from any fund. The county auditor shall certify this finding to the budget commission, which shall certify an amended official certificate reflecting the finding or certify to the school district that no amended certificate needs to be issued.

Sec. 5747.51. (A) Within ten days after the fifteenth day of July of each year, the tax commissioner shall make and certify to the county auditor of each county an estimate of the amount of the local government fund to be allocated to the undivided local government fund of each county for the ensuing calendar year and the estimated amount to be received by the undivided local government fund of each county from the taxes levied pursuant to section 5707.03 of the Revised Code for the ensuing calendar year.

(B) At each annual regular session of the county budget commission convened pursuant to section 5705.27 of the Revised Code, each auditor shall present to the commission the certificate of the commissioner, the annual tax budget and estimates, and the records showing the action of the commission in its last preceding regular session. The estimates shown on the certificate of the commissioner of the amount to be allocated from the local government fund and the amount to be received from taxes levied pursuant to section 5707.03 of the Revised Code shall be combined into one total comprising the estimate of the undivided local government fund of the county. The commission, after extending to the representatives of each subdivision an opportunity to be heard, under oath administered by any member of the commission, and considering all the facts and information presented to it by the auditor, shall determine the amount of the undivided local government fund needed by and to be apportioned to each subdivision for current operating expenses, as shown in the tax budget of the subdivision. This determination shall be made pursuant to divisions (C) to (I) of this section, unless the commission has provided for a formula pursuant to section 5747.53 of the Revised Code.

Nothing in this section prevents the budget commission, for the purpose of apportioning the undivided local government fund, from inquiring into the claimed needs of any subdivision as stated in its tax budget, or from adjusting claimed needs to reflect actual needs. For the purposes of this section, "current operating expenses" means the lawful expenditures of a subdivision, except those for permanent improvements and except payments for interest, sinking fund, and retirement of bonds, notes, and certificates of indebtedness of the subdivision.

(C) The commission shall determine the combined total of the estimated expenditures, including transfers, from the general fund and any special funds other than special funds established for road and bridge; street construction, maintenance, and repair; state highway improvement; and gas, water, sewer, and electric public utilities operated by a subdivision, as shown in the subdivision's tax budget for the ensuing calendar year.

(D) From the combined total of expenditures calculated pursuant to division (C) of this section, the commission shall deduct the following expenditures, if included in these funds in the tax budget:

(1) Expenditures for permanent improvements as defined in division (E) of section 5705.01 of the Revised Code;

(2) In the case of counties and townships, transfers to the road and bridge fund, and in the case of municipalities, transfers to the street construction, maintenance, and repair fund and the state highway improvement fund;

(3) Expenditures for the payment of debt charges;

(4) Expenditures for the payment of judgments.

(E) In addition to the deductions made pursuant to division (D) of this section, revenues accruing to the general fund and any special fund considered under division (C) of this section from the following sources shall be deducted from the combined total of expenditures calculated pursuant to division (C) of this section:

(1) Taxes levied within the ten-mill limitation, as defined in section 5705.02 of the Revised Code;

(2) The budget commission allocation of estimated county library and local government support fund revenues to be distributed pursuant to section 5747.48 of the Revised Code;

(3) Estimated unencumbered balances as shown on the tax budget as of the thirty-first day of December of the current year in the general fund, but not any estimated balance in any special fund considered in division (C) of this section;

(4) Revenue, including transfers, shown in the general fund and any special funds other than special funds established for road and bridge; street construction, maintenance, and repair; state highway improvement; and gas, water, sewer, and electric public utilities, from all other sources except those that a subdivision receives from an additional tax or service charge voted by its electorate or receives from special assessment or revenue bond collection. For the purposes of this division, where the charter of a municipal corporation prohibits the levy of an income tax, an income tax levied by the legislative authority of such municipal corporation pursuant to an amendment of the charter of that municipal corporation to authorize such a levy represents an additional tax voted by the electorate of that municipal corporation. For the purposes of this division, any measure adopted by a board of county commissioners pursuant to section 322.02, 324.02, 4504.02, or 5739.021 of the Revised Code, including those measures upheld by the electorate in a referendum conducted pursuant to section 322.021, 324.021, 4504.021, or 5739.022 of the Revised Code, shall not be considered an additional tax voted by the electorate.

Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE REVISED CODE, MONEY in a reserve balance account established by a county or, township, OR MUNICIPAL CORPORATION under section 305.23, 505.83, or 505.831 5705.13 of the Revised Code or by a municipal corporation pursuant to an ordinance or resolution that has been included as a reserve balance in the county's, township's, or municipal corporation's budget under section 5705.29 of the Revised Code shall not be considered an unencumbered balance or revenue under division (E)(3) or (4) of this section.

If a COUNTY, TOWNSHIP, OR municipal corporation has created and maintains a NONEXPENDABLE TRUST fund exclusively for the purpose of investing the principal of the fund and using the investment earnings to fund expenditures UNDER SECTION 5705.131 of the Revised Code, the principal of the fund, and any additions to the principal arising from sources other than the reinvestment of investment earnings arising from such a fund, shall not be considered an unencumbered balance or revenue under division (E)(3) or (4) of this section. Only investment earnings arising from investment of the principal or INVESTMENT OF SUCH additions to principal may be considered an unencumbered balance or revenue under those divisions.

(F) The total expenditures calculated pursuant to division (C) of this section, less the deductions authorized in divisions (D) and (E) of this section, shall be known as the "relative need" of the subdivision, for the purposes of this section.

(G) The budget commission shall total the relative need of all participating subdivisions in the county, and shall compute a relative need factor by dividing the total estimate of the undivided local government fund by the total relative need of all participating subdivisions.

(H) The relative need of each subdivision shall be multiplied by the relative need factor to determine the proportionate share of the subdivision in the undivided local government fund of the county; provided, that the maximum proportionate share of a county shall not exceed the following maximum percentages of the total estimate of the undivided local government fund governed by the relationship of the percentage of the population of the county that resides within municipal corporations within the county to the total population of the county as reported in the reports on population in Ohio by the department of development as of the twentieth day of July of the year in which the tax budget is filed with the budget commission:

Percentage of	Percentage share
municipal population	of the county
within the county:	shall not exceed:

Less than forty-one per cent	Sixty per cent
Forty-one per cent or more but less than eighty-one per cent	Fifty per cent
Eighty-one per cent or more	Thirty per cent

Where the proportionate share of the county exceeds the limitations established in this division, the budget commission shall adjust the proportionate shares determined pursuant to this division so that the proportionate share of the county does not exceed these limitations, and it shall increase the proportionate shares of all other subdivisions on a pro rata basis. In counties having a population of less than one hundred thousand, not less than ten per cent shall be distributed to the townships therein.

(I) The proportionate share of each subdivision in the undivided local government fund determined pursuant to division (H) of this section for any calendar year shall not be less than the product of the average of the percentages of the undivided local government fund of the county as apportioned to that subdivision for the calendar years 1968, 1969, and 1970, multiplied by the total amount of the undivided local government fund of the county apportioned pursuant to former section 5735.23 of the Revised Code for the calendar year 1970. For the purposes of this division, the total apportioned amount for the calendar year 1970 shall be the amount actually allocated to the county in 1970 from the state collected intangible tax as levied by section 5707.03 of the Revised Code and distributed pursuant to section 5725.24 of the Revised Code, plus the amount received by the county in the calendar year 1970 pursuant to division (B)(1) of former section 5739.21 of the Revised Code, and distributed pursuant to former section 5739.22 of the Revised Code. If the total amount of the undivided local government fund for any calendar year is less than the amount of the undivided local government fund apportioned pursuant to former section 5739.23 of the Revised Code for the calendar year 1970, the minimum amount guaranteed to each subdivision for that calendar year pursuant to this division shall be reduced on a basis proportionate to the amount by which the amount of the undivided local government fund for that calendar year is less than the amount of the undivided local government fund apportioned for the calendar year 1970.

(J) On the basis of such apportionment, the county auditor shall compute the percentage share of each such subdivision in the undivided local government fund and shall at the same time certify to the tax commissioner the percentage share of the county as a subdivision. No payment shall be made from the undivided local government fund, except in accordance with such percentage shares.

Within ten days after the budget commission has made its apportionment, whether conducted pursuant to section 5747.51 or 5747.53 of the Revised Code, the auditor shall publish a list of the subdivisions and the amount each is to receive from the undivided local government fund and the percentage share of each subdivision, in a newspaper or newspapers of countywide circulation, and send a copy of such allocation to the tax commissioner.

The county auditor shall also send by certified mail, return receipt requested, a copy of such allocation to the fiscal officer of each subdivision entitled to participate in the allocation of the undivided local government fund of the county. This copy shall constitute the official notice of the commission action referred to in section 5705.37 of the Revised Code.

All money received into the treasury of a subdivision from the undivided local government fund in a county treasury shall be paid into the general fund and used for the current operating expenses of the subdivision.

If a municipal corporation maintains a municipal university, such municipal university, when the board of trustees so requests the legislative authority of the municipal corporation, shall participate in the money apportioned to such municipal corporation from the total local government fund, however created and constituted, in such amount as requested by the board of trustees, provided such sum does not exceed nine per cent of the total amount paid to the municipal corporation.

If any public official fails to maintain the records required by sections 5747.50 to 5747.55 of the Revised Code, or by the rules issued by the tax commissioner, the auditor of state, or the treasurer of state, pursuant to such sections, or fails to comply with any law relating to the enforcement of such sections, the local government fund money allocated to the county shall be withheld until such time as the public official has complied with such sections or such law or the rules issued pursuant thereto.

Sec. 5747.62. (A) As used in this section and section 5747.63 of the Revised Code, "subdivision" means a municipal corporation, township, park district, or county.

(B) At each annual regular session of the county budget commission convened pursuant to section 5705.27 of the Revised Code, each auditor shall present to the commission the certificate of the commissioner, the annual tax budget and estimates, and the records showing the action of the commission in its last preceding regular session. The commission, after extending to the representatives of each subdivision an opportunity to be heard, under oath administered by any member of the commission, and considering all the facts and information presented to it by the auditor, shall determine the amount of the undivided local government revenue assistance fund needed by and to be apportioned to each subdivision for current operating expenses, as shown in the tax budget of the subdivision. This determination shall be made pursuant to divisions (C) to (H) of this section, unless the commission has provided for a formula pursuant to section 5747.63 of the Revised Code. Nothing in this section prevents the budget commission, for the purpose of apportioning the undivided local government revenue assistance fund, from inquiring into the claimed needs of any subdivision as stated in its tax budget, or from adjusting claimed needs to reflect actual needs. For the purposes of this section, "current operating expenses" means the lawful expenditures of a subdivision, except those for permanent improvements and except payments for interest, sinking fund, and retirement of bonds, notes, and certificates of indebtedness of the subdivision.

(C) The commission shall determine the combined total of the estimated expenditures, including transfers, from the general fund and any special funds other than special funds established for road and bridge; street construction, maintenance, and repair; state highway improvement; and gas, water, sewer, and electric public utilities operated by a subdivision, as shown in the subdivision's tax budget for the ensuing calendar year.

(D) From the combined total of expenditures calculated pursuant to division (C) of this section, the commission shall deduct the following expenditures, if included in these funds in the tax budget:

(1) Expenditures for permanent improvements as defined in division (E) of section 5705.01 of the Revised Code;

(2) In the case of counties and townships, transfers to the road and bridge fund, and in the case of municipalities, transfers to the street construction, maintenance, and repair fund and the state highway improvement fund;

(3) Expenditures for the payment of debt charges;

(4) Expenditures for the payment of judgments.

(E) In addition to the deductions made pursuant to division (D) of this section, revenues accruing to the general fund and any special fund considered under division (C) of this section from the following sources shall be deducted from the combined total of expenditures calculated pursuant to division (C) of this section:

(1) Taxes levied within the ten-mill limitation, as defined in section 5705.02 of the Revised Code;

(2) The budget commission allocation of estimated county library and local government support fund revenues to be distributed pursuant to section 5747.48 of the Revised Code;

(3) Estimated unencumbered balances as shown on the tax budget as of the thirty-first day of December of the current year in the general fund, but not any estimated balance in any special fund considered in division (C) of this section;

(4) Revenue, including transfers, shown in the general fund and any special funds other than special funds established for road and bridge; street construction, maintenance, and repair; state highway improvement; and gas, water, sewer, and electric public utilities, from all other sources except those that a subdivision receives from an additional tax or service charge voted by its electorate or receives from special assessment or revenue bond collection. For the purposes of this division, where the charter of a municipal corporation prohibits the levy of an income tax, an income tax levied by the legislative authority of such municipal corporation pursuant to an amendment of the charter of that municipal corporation to authorize such a levy represents an additional tax voted by the electorate of that municipal corporation. For the purposes of this division, any measure adopted by a board of county commissioners pursuant to section 322.02, 324.02, 4504.02, or 5739.021 of the Revised Code, including those measures upheld by the electorate in a referendum conducted pursuant to section 322.021, 324.021, 4504.021, or 5739.022 of the Revised Code, shall not be considered an additional tax voted by the electorate.

Money SUBJECT TO DIVISION (G) OF SECTION 5705.29 OF THE REVISED CODE, MONEY in a reserve balance account established by a county or, township, OR MUNICIPAL CORPORATION under section 305.23, 505.83, or 505.831 of the Revised Code or by a municipal corporation pursuant to an ordinance or resolution that has been included as a reserve balance in the county's, township's, or municipal corporation's budget under section 5705.29 5705.13 of the Revised Code shall not be considered an unencumbered balance or revenue under division (E)(3) or (4) of this section.

If a COUNTY, TOWNSHIP, OR municipal corporation has created and maintains a NONEXPENDABLE TRUST fund exclusively for the purpose of investing the principal of the fund and using the investment earnings to fund expenditures UNDER SECTION 5705.131 of the Revised Code, the principal of the fund, and any additions to the principal arising from sources other than the reinvestment of investment earnings arising from such a fund, shall not be considered an unencumbered balance or revenue under division (E)(3) or (4) of this section. Only investment earnings arising from investment of the principal or INVESTMENT OF SUCH additions to principal may be considered an unencumbered balance or revenue under those divisions.

(F) The total expenditures calculated pursuant to division (C) of this section, less the deductions authorized in divisions (D) and (E) of this section, shall be known as the "relative need" of the subdivision, for the purposes of this section.

(G) The budget commission shall total the relative need of all participating subdivisions in the county, and shall compute a relative need factor by dividing the total estimate of the undivided local government revenue assistance fund by the total relative need of all participating subdivisions.

(H) The relative need of each subdivision shall be multiplied by the relative need factor to determine the proportionate share of the subdivision in the undivided local government revenue assistance fund of the county, provided that the maximum proportionate share of a county shall not exceed the following maximum percentages of the total estimate of the undivided local government revenue assistance fund governed by the relationship of the percentage of the population of the county that resides within municipal corporations within the county to the total population of the county as reported in the reports on population in Ohio by the department of development as of the twentieth day of July of the year in which the tax budget is filed with the budget commission:

Percentage of	Percentage share
municipal population	of the county
within the county:	shall not exceed:

Less than forty-one per cent	Sixty per cent
Forty-one per cent or more but less than eighty-one per cent	Fifty per cent
Eighty-one per cent or more	Thirty per cent

Where the proportionate share of the county exceeds the limitations established in this division, the budget commission shall adjust the proportionate shares determined pursuant to this division so that the proportionate share of the county does not exceed these limitations, and it shall increase the proportionate shares of all other subdivisions on a pro rata basis. In counties having a population of less than one hundred thousand, not less than ten per cent shall be distributed to the townships therein.

(I) On the basis of such apportionment, the county auditor shall compute the percentage share of each such subdivision in the undivided local government revenue assistance fund and shall at the same time certify to the tax commissioner the percentage share of the county as a subdivision. No payment shall be made from the undivided local government revenue assistance fund, except in accordance with such percentage shares.

Within ten days after the budget commission has made its apportionment, whether conducted pursuant to this section or section 5747.63 of the Revised Code, the auditor shall publish a list of the subdivisions and the amount each is to receive from the undivided local government revenue assistance fund and the percentage share of each subdivision, in a newspaper or newspapers of countywide circulation, and send a copy of such apportionment to the tax commissioner.

The county auditor shall also send by certified mail, return receipt requested, a copy of such apportionment to the fiscal officer of each subdivision entitled to participate in the allocation of the undivided local government revenue assistance fund of the county. This copy shall constitute the official notice of the commission action referred to in section 5705.37 of the Revised Code.

All money received by a subdivision from the county undivided local government revenue assistance fund shall be paid into the subdivision's general fund and used for current operating expenses.

If any public official fails to maintain the records required by sections 5747.61 to 5747.63 of the Revised Code, or by the rules issued by the tax commissioner, the auditor of state, or the treasurer of state, pursuant to such sections, or fails to comply with any law relating to the enforcement of such sections, the local government revenue assistance fund money allocated to the county shall be withheld until such time as the public official has complied with such sections or such law or the rules issued pursuant thereto.