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1 _____________ BILL NO. _____________
(Primary Sponsor)
2 INTRODUCED BY _________________________________________________
3 BY REQUEST OF THE LOCAL GOVERNMENT INTERIM COMMITTEE
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING LOCAL GOVERNMENT PRELIMINARY BUDGET
6 REQUIREMENTS TO INCLUDE PRIOR BUDGET YEAR TAX AMOUNTS AND CURRENT BUDGET YEAR
7 ESTIMATED TAX AMOUNTS; AND AMENDING SECTION 7-6-4020, MCA.”
8
9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
10
11 Section 1. Section 7-6-4020, MCA, is amended to read:
12 "7-6-4020. Preliminary annual operating budget. (1) A preliminary annual operating budget must
13 be prepared for the local government.
14 (2) This part does not provide for the consolidation or reassignment, but does not prohibit
15 delegation by mutual agreement, of any duties of elected county officials.
16 (3) (a) Before June 1 of each year, the county clerk and recorder shall notify the county
17 commission and each board, office, regional resource authority, or official that they are required to file
18 preliminary budget proposals for their component of the total county budget.
19 (b) Component budgets must be submitted to the county clerk and recorder before June 10th or on
20 a date designated by the county commission and must be submitted on forms provided by the county clerk and
21 recorder.
22 (c) The county clerk and recorder shall prepare and submit the county's preliminary annual
23 operating budget.
24 (d) Component budget responsibilities as provided in this subsection (3) include but are not limited
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1 to the following:
2 (i) The county surveyor or any special engineer shall compute road and bridge component
3 budgets and submit them to the county commission.
4 (ii) The county commission shall submit road and bridge component budgets.
5 (iii) The county treasurer shall submit debt service component budgets.
6 (iv) The county commission shall submit component budgets for construction or improvements to
7 be made from new general obligation debt.
8 (4) The preliminary annual operating budget for each fund must include, at a minimum:
9 (a) a listing of all revenue and other resources for the prior budget year, current budget year, and
10 proposed budget year;
11 (b) a listing of all expenditures for the prior budget year, the current budget year, and the proposed
12 budget year. All expenditures must be classified under one of the following categories:
13 (i) salaries and wages;
14 (ii) operations and maintenance;
15 (iii) capital outlay;
16 (iv) debt service; or
17 (v) transfers out.
18 (c) a projection of changes in fund balances or cash balances available for governmental fund
19 types and a projection of changes in cash balances and working capital for proprietary fund types. This
20 projection must be supported by a summary for each fund or group of funds listing the estimated beginning
21 balance plus estimated revenue, less proposed expenditures, cash reserves, and estimated ending balances.
22 (d) a detailed list of proposed capital expenditures and a list of proposed major capital projects for
23 the budget year;
24 (e) financial data on current and future debt obligations;
25 (f) schedules or summary tables of personnel or position counts for the prior budget year, current
26 budget year, and proposed budget year. The budgeted amounts for personnel services must be supported by a
27 listing of positions, salaries, and benefits for all positions of the local government. The listing of positions,
28 salaries, and benefits is not required to be part of the budget document.
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1 (g) all other estimates that fall under the purview of the budget.
2 (5) The preliminary annual operating budget for each fund for which the local government will levy
3 an ad valorem property tax must include the estimated amount to be raised by the tax.
4 (6) If a government entity intends to increase property taxes, including an increase authorized
5 under 15-10-420 (1), the preliminary budget must include the amount by which property taxes will increase on
6 homes valued at $100,000, $300,000, and $600,000.The preliminary annual operating budget must include the
7 property taxes levied on $100,000 of residential property value from all mills levied by the governmental entity
8 in the prior budget year and the estimated property taxes to be levied under the preliminary annual operating
9 budget on $100,000 of residential property value from all mills the governmental entity will levy in the current
10 budget year."
11 - END -
3 LC 234


Statutes affected:
LC Text: 7-6-4020