House Bill No. 508
Introduced By devaney, hertel
A Bill for an Act entitled: "An Act generally revising municipal budget laws; amending sections 2-7-503, 2-7-504, 2-7-513,
7-6-2111, 7-6-2112, 7-6-2202, 7-6-2203, 7-6-2211, 7-6-2213, 7-6-2302, 7-6-2311, 7-6-2312, 7-6-2314, 7-6-2315,
7-6-2316, 7-6-2317, 7-6-2318, 7-6-2319, 7-6-2320, 7-6-2321, 7-6-2324, 7-6-2325, 7-6-2330, 7-6-2331, 7-6-2525,
7-6-4104, 7-6-4121, 7-6-4123, 7-6-4124, 7-6-4134, 7-6-4135, 7-6-4202, 7-6-4203, 7-6-4205, 7-6-4232, 7-6-4234,
7-6-4237, and 7-6-4240, MCA; repealing sections 7-3-4371, 7-3-4372, 7-3-4373, 7-6-601, 7-6-602, 7-6-603, 7-6-604,
7-6-4102, 7-6-4103, 7-6-4105, 7-6-4106, 7-6-4107, 7-6-4108, 7-6-4109, 7-6-4110, 7-6-4111, 7-6-4112, 7-6-4113,
7-6-4119, 7-6-4120, 7-6-4122, 7-6-4131, 7-6-4132, 7-6-4133, 7-6-4204, 7-6-4221, 7-6-4222, 7-6-4223, 7-6-4224,
7-6-4225, 7-6-4226, 7-6-4227, 7-6-4228, 7-6-4229, 7-6-4230, 7-6-4231, 7-6-4233, 7-6-4235, 7-6-4236, 7-6-4239,
7-6-4241, 7-6-4251, 7-6-4252, 7-6-4253, 7-6-4254, and 7-6-4255, MCA; and providing an immediate effective date and an
applicability date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 2-7-503, MCA, is amended to read:
"2-7-503. Financial reports and audits of local government entities -- exception. (1) The governing body or managing
or executive officer of a local government entity, other than a school district or associated cooperative, shall ensure that a
financial report is made every year. A school district or associated cooperative shall comply with the provisions of
20-9-213. The financial report must cover the preceding fiscal year, be in a form prescribed by the department, and be
completed within 4 6 months of the end of the reporting period. The local government entity shall submit the financial
report to the department for review.
(2) The department shall prescribe a uniform reporting system for all local government entities subject to financial reporting requirements, other than school districts. The superintendent of public instruction shall prescribe the reporting requirements for school districts.
(3) (a) The governing body or managing or executive officer of each local government entity receiving revenue or financial assistance in the period covered by the financial report in excess of $200,000 or federal financial assistance in excess of $25,000 shall cause an audit to be made at least every 2 years. The audit must cover the entity's preceding 2 fiscal years. The audit must commence within 9 months from the close of the last fiscal year of the audit period. The audit must be completed and submitted to the department for review within 1 year from the close of the last fiscal year covered by the audit.
(b) The governing body or managing or executive officer of a local government entity that does not meet the criteria established in subsection (3)(a) shall at least once every 4 years, if directed by the department, or, in the case of a school district, if directed by the department at the request of the superintendent of public instruction, cause a financial review, as defined by department rule, to be conducted of the financial statements of the entity for the preceding fiscal year.
(4) An audit conducted in accordance with this part is in lieu of any financial or financial and compliance audit of an individual financial assistance program that a local government is required to conduct under any other state or federal law or regulation. If an audit conducted pursuant to this part provides a state agency with the information it requires to carry out its responsibilities under state or federal law or regulation, the state agency shall rely upon and use that information to plan and conduct its own audits or reviews in order to avoid a duplication of effort.
(5) In addition to the audits required by this section, the department may at any time conduct or contract for a special audit or review of the affairs of any local government entity referred to in this part. The special audit or review must, to the extent practicable, build upon audits performed pursuant to this part.
(6) The fee for the special audit or review must be a charge based upon the costs incurred by the department in relation to the special audit or review. The audit fee must be paid by the local government entity to the state treasurer and deposited in the enterprise fund to the credit of the department.
(7) SUBSECTIONS (1) THROUGH (3) DO NOT APPLY TO A LOCAL GOVERNMENT ENTITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
(7) Subsections (1) through (3) do not apply to a local government entity that has adopted the alternative accounting
method provided for in Title 7, chapter 6, part 6."
Section 2. Section 2-7-504, MCA, is amended to read:
"2-7-504. Accounting methods -- exception. (1) Unless otherwise required by law, the department shall prescribe by rule
the general methods and details of accounting for the receipt and disbursement of all money belonging to local government
entities and shall establish in those offices general methods and details of accounting. All local government entity officers
shall conform with the accounting standards prescribed by the department.
(2) This section does not apply to a local government entity that has adopted the alternative accounting method provided
for in Title 7, chapter 6, part 6."
Section 3. Section 2-7-513, MCA, is amended to read:
"2-7-513. Content of audit report and financial report -- exception. (1) The audit reports must comply with the
reporting requirements of government auditing standards issued by the U.S. comptroller general and federal regulations
adopted by department rule.
(2) (a) The department shall prescribe general methods and details of accounting for the financial report for local
government entities other than schools. The financial report must be submitted in a form required by the department. The
superintendent of public instruction shall prescribe the general methods and details of accounting for financial reports for
schools.
(b) Subsection (2)(a) does not apply to a local government entity that has adopted the alternative accounting method
provided for in Title 7, chapter 6, part 6."
Section 4. Section 7-6-2111, MCA, is amended to read:
"7-6-2111. Duties of county treasurer. (1) The county treasurer:
(a)(1) must receive all money belonging to the county and all other money directed to be paid to the treasurer by law,
safely keep the money, and apply and pay the money out, and account for the money as required by law;
(b)(2) shall keep an account of the receipt and expenditures of the money in books provided for the purpose, in which must
be entered:
(i)(a) the amount, the time when, from whom, and on what account all money was received;
(ii)(b) the amount, time when, to whom, and on what account all disbursements were made;
(c)(3) shall keep books so that the amounts received and paid out on account of separate funds or specific appropriations
are exhibited in separate and distinct accounts, with the whole receipts and expenditures shown in one general or cash
account;
(d)(4) may not enter money received for the current year on the treasurer's account with the county for the past fiscal year
until after the treasurer's annual settlement for the past year has been made with the county clerk;
(e)(5) shall disburse the county money only on county warrants issued by the county clerk, based on orders of the board of
county commissioners, or as otherwise provided by law.
(2) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 5. Section 7-6-2112, MCA, is amended to read:
"7-6-2112. Treasurer's reports to county commissioners -- exception. (1) Each county treasurer shall make a detailed
monthly report to the board of county commissioners, of all money received and disbursed by the treasurer, of all debts due
to and from the county, and of all other proceedings in the treasurer's office so that the receipts into the treasury and the
amount of disbursements, together with the debts due to and from the county, appear clearly and distinctly.
(2) On the first Monday of January, April, July, and October of each year the county treasurer shall settle with the board of
county commissioners for all money collected. On those days the treasurer shall deliver to the board affidavits verifying the
reconcilement of the balance on hand in the county treasury. After the approval of the statements and the accompanying
affidavits, one copy of the quarterly report must be filed with the county clerk of the county and one copy must be retained
by the county treasurer.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 6. Section 7-6-2202, MCA, is amended to read:
"7-6-2202. Duties of county clerk related to finance -- exception. (1) The county clerk shall draw warrants on the
county treasury in favor of all persons entitled to the warrants in payment:
(a) of all claims and demands chargeable against the county which have been legally examined, allowed, and ordered paid
by the board of county commissioners; and
(b) for all debts and demands against the county when the amounts are fixed by law and are not directed to be audited by
some other person or tribunal.
(2) The county clerk shall keep accounts current with the treasurer. When any person deposits with the county treasurer
any money paid into the treasury, the county clerk must be furnished by the treasurer with a duplicate of the receipt issued
to the person. The duplicate receipt must be filed in the office of the county clerk, and the county clerk shall charge the
treasurer with the amount of the deposit.
(3) The county clerk shall make the annual statement as prescribed in 7-6-2203.
(4) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 7. Section 7-6-2203, MCA, is amended to read:
"7-6-2203. Annual financial statement -- exception. (1) Within 120 days after the close of each fiscal year, the county
clerk shall compile and present to the board of county commissioners and the department of commerce a complete
statement of the financial condition of the county. The statement must show:
(a) a detailed description of all of the resources and liabilities of the county and the book value of the resources and
liabilities;
(b) the amount of money received, showing the source of that revenue;
(c) the amount of money disbursed, with the purpose of disbursement;
(d) the operation of each of the cash and warrant accounts, showing the balance at the beginning of the year, the credits, the
debits, and the balance at the end of the year;
(e) the assessed valuation of the real and personal property of the county;
(f) the rate of taxation and the amount of taxes delinquent for the preceding years; and
(g) other items that the department of commerce may prescribe.
(2) The statement must be on the form designated by the department.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 8. Section 7-6-2211, MCA, is amended to read:
"7-6-2211. Authorization to conduct county business on a cash basis. (1) If the total indebtedness of a county, lawful
when incurred, exceeds the limit of 23% established in 7-7-2101 by reason of great diminution of taxable value, the county
may conduct its business affairs on a cash basis and pay the reasonable and necessary current expenses of the county out of
the cash in the county treasury derived from its current revenue and under the restrictions and regulations that may be
imposed by the board of county commissioners of the county by a resolution duly adopted and included in the minutes of
the board.
(2) This section does not restrict the right of the board to make the necessary tax levies for interest and sinking fund
purposes, and this section does not affect the right of any creditor of the county to pursue any remedy now given by law to
obtain payment of a claim.
(3) Subsection (1) does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 9. Section 7-6-2213, MCA, is amended to read:
"7-6-2213. Report of fees received and money disbursed -- exception. (1) All county officers, justices of the peace, and
constables shall report in writing, under oath, to the board of county commissioners on the first Monday of March, June,
September, and December, showing in detail all fees, emoluments, and compensation received and money disbursed by
them in their official capacity during the quarter preceding the making of each report.
(2) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 10. Section 7-6-2302, MCA, is amended to read:
"7-6-2302. Role of department of commerce -- exception. (1) The department of commerce shall make rules and
classifications and prescribe forms necessary to carry out the provisions of this part, to define what expenditures are
chargeable to each budget account, and to establish accounting and cost systems necessary to provide accurate budget
information.
(2) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 11. Section 7-6-2311, MCA, is amended to read:
"7-6-2311. Filing of estimate of revenues revenue and expenses with county clerk -- exception. (1) Before June 1
each year the county clerk and recorder shall notify in writing each county official in charge of an office, department,
service, institution, or county-funded district court program of the county to file with the county clerk and recorder, before
June 10, detailed and itemized estimates, both of the probable revenue from sources other than taxation and of all
expenditures required by the office, department, service, or institution for the next fiscal year.
(2) (a) The county commissioners shall submit to the county clerk and recorder the estimate of expenditures for all
purposes for the board and a detailed statement showing all new road and bridge construction to be financed from county
road and bridge funds, from any special road or bridge fund, from any special highway fund, and from bond issues issued
or authorized for the next fiscal year, together with the cost of that construction as computed by the county surveyor or, if
for construction in charge of a special engineer, then by that engineer. The county commissioners shall also submit to the
county clerk and recorder detailed estimates of all expenditures for construction or improvement purposes proposed to be
made from the proceeds of bond issues not yet authorized and from the proceeds of tax levies that are required to be
approved at an election to be held.
(b) The county surveyor and any special engineer shall prepare the estimates of cost of road and bridge construction for the
county commissioners. They shall also submit a similar statement showing road and bridge maintenance expenditures as
nearly as can be estimated.
(c) The county treasurer shall prepare the estimates for interest and debt reduction.
(d) The county clerk and recorder shall prepare all other estimates that properly fall within the duties of the office.
(3) The estimates required in this section must be submitted on forms provided by the county clerk and recorder and
prescribed by the department of commerce. The forms may only be varied or departed from with permission and approval
of that department. Each of the officials shall file the estimates within the time and in the manner provided in the form and
notice.
(4) In the absence or disability of an official, the duties required by this section or 7-6-2312 devolve upon the official or
employee in charge of the office, department, service, or institution.
(5) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 12. Section 7-6-2312, MCA, is amended to read:
"7-6-2312. Penalty for noncompliance with filing requirements -- exception. (1) The county clerk shall withhold as a
penalty from the salary of each official failing or refusing to file the estimates, $10 for each day of delay. The total penalty
against any official may not exceed $50 in 1 year.
(2) The notice provided for in 7-6-2311 must contain a copy of this penalty clause.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 13. Section 7-6-2314, MCA, is amended to read:
"7-6-2314. Classification of estimates, appropriations, and expenditures -- exception. (1) In the tabulation required by
7-6-2313, the estimates, appropriations, and expenditures must be classified as:
(a) salaries and wages;
(b) maintenance and operation;
(c) capital outlay;
(d) interest and debt redemption;
(e) miscellaneous; and
(f) expenditures proposed to be made from bond issues not yet authorized or from the proceeds of a tax levy or levies that
are required to be submitted to and approved at an election to be held later.
(2) (a) Within the general class of salaries and wages, each salary must be set forth separately, together with the title or
position of the recipient. An unitemized appropriation may be made to cover the expenses of special deputies or assistants
in any office where the services of the special deputies or assistants may be required during a part of the fiscal year only.
Wages for day labor may be given in totals by designating the general purpose or object for which the expenditure is to be
made, but the proposed rate per day for each class or kind of labor must be set forth.
(b) Expenditures under the general class of maintenance and operation must be classified according to a standard
classification to be established by the department of commerce.
(c) Expenditures for capital outlay must set forth and describe each object of expenditure separately.
(d) Under the general class of interest and debt redemption, proposed expenditures for interest and for redemption of
principal must be set forth separately for each series or issue of bonds, and warrant interest and redemption requirements
must be set forth in a similar manner.
(e) Under the general class of miscellaneous, expenditures for all purposes not listed in or that cannot properly be assigned
to any of the general classes must be set forth and itemized in detail.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 14. Section 7-6-2315, MCA, is amended to read:
"7-6-2315. Consideration of tabulation by county commissioners -- exception. (1) The tabulation must be submitted to
the county commissioners by the county clerk and recorder on or before the third Monday of July.
(2) Upon receipt, the board of county commissioners shall immediately consider the budget in detail and shall, on or before
the fourth Monday of July, make any revisions, reductions, additions, or changes that the board considers advisable. The
tabulation, with any revisions, reductions, additions, or changes, is the county proposed budget for the fiscal year which it
is intended to cover.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 15. Section 7-6-2316, MCA, is amended to read:
"7-6-2316. Notice of hearing on county proposed budget -- exception. (1) The board of county commissioners shall
cause a notice to be published stating that:
(a) the board has completed its county proposed budget for the current fiscal year;
(b) the budget is open to inspection in the office of the county clerk and recorder;
(c) the board will meet to fix the final budget and make appropriations, stating the date, time, and place of the meeting; and
(d) any taxpayer or resident of the county may appear and be heard for or against any part of the budget.
(2) The notice must be published two times, once each week, in a newspaper of general circulation in the county.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 16. Section 7-6-2317, MCA, is amended to read:
"7-6-2317. Hearing on county proposed budget -- exception. (1) At least 3 days prior to the adoption of the final
budget, the county commissioners shall meet at the time and place designated in the notice provided for in 7-6-2316, at
which time any taxpayer or resident of the county may appear and be heard for or against any part of the budget.
(2) The hearing must be continued from day to day and must be concluded and the budget approved and adopted on or
before the second Monday in August, before the fixing of the tax levies by the board.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 17. Section 7-6-2318, MCA, is amended to read:
"7-6-2318. Determination of projected fund cash flow following hearing -- exception. (1) Upon the conclusion of the
hearing, the board shall first determine the amount estimated to accrue to each fund during the fiscal year from all sources
except the taxation of property. In so doing, the board may not include any amount that it is anticipated may be received
during the fiscal year from the payment of taxes that became delinquent during a preceding fiscal year.
(2) The board shall then determine separately the amount appropriated for and authorized to be spent for each item in the
budget and shall specify the fund or funds against which warrants are to be drawn and issued for each item in the budget
and shall specify the fund or funds against which warrants are to be drawn for the expenditures authorized. There may not
be added to the amount to be appropriated and authorized to be spent for an item or to the total amount appropriated and
authorized to be spent from any fund any amount or percentage because of anticipated loss of revenue by reason of the
nonpayment of taxes levied for that fiscal year. The total expenditures authorized to be made from any fund, including the
reserve added to them, may not exceed the aggregate of:
(a) the cash balance in the fund at the close of the preceding fiscal year;
(b) the amount of estimated revenues revenue to accrue to the fund; and
(c) the amount which may be raised for the fund by a lawful tax levy during the fiscal year.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 18. Section 7-6-2319, MCA, is amended to read:
"7-6-2319. Determination of fund requirements to be met by tax levy -- exception. (1) Following the determinations
required by 7-6-2318, the board shall determine the amount to be raised by tax levy for each fund by adding the cash
balance in the fund at the close of the preceding fiscal year and the amount of the estimated revenue to accrue to the fund
during the current fiscal year. It shall then deduct the total amount obtained from the total amount of the appropriations and
authorized expenditures from the fund as determined by the board. The amount remaining is the amount necessary to be
raised for the fund by tax levy during the current fiscal year.
(2) The board may add to the amount necessary to be raised for any fund by tax levy during the current fiscal year an
additional amount as a reserve to meet expenditures to be made from the fund during the months of July to November of
the next fiscal year. The amount that may be added to any fund as the reserve may not exceed one-third of the total amount
appropriated and authorized to be spent from the fund during the current fiscal year, after deducting from the amount of the
appropriations and authorized expenditures the total amount appropriated and authorized to be spent for election expenses
and payment of emergency warrants.
(3) The total amount to be raised by tax levy for any fund during the current fiscal year, including the amount of the
reserve and any amount for payment of election expenses and emergency warrants, may not exceed the total amount which
may be raised for the fund by a tax levy which does not exceed the maximum levy permitted by law to be made for the
fund.
(4) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 19. Section 7-6-2320, MCA, is amended to read:
"7-6-2320. Final budget -- approval, adoption, and amendment -- exception. (1) The budget as finally determined, in
addition to setting out separately each item for which an appropriation or expenditure is authorized and the fund out of
which it is to be paid, must set out:
(a) the total amount appropriated and authorized to be spent from each fund;
(b) the cash balance in the fund at the close of the preceding fiscal year;
(c) the amount estimated to accrue to the fund from sources other than taxation;
(d) the reserve for the next fiscal year; and
(e) the amount necessary to be raised for each fund by tax levy during the current fiscal year.
(2) The board shall then by resolution approve and adopt the budget as finally determined and enter the budget at length in
the official minutes of the board.
(3) (a) Subject to compliance with the procedures set forth in subsection (4), the board may approve and adopt a resolution
amending a final budget when:
(i) shortfalls in anticipated and budgeted revenues revenue occur that, unless reductions in appropriations are made, will
result in expenditures for the year exceeding actual revenues revenue and cash balances available for the year; or
(ii) savings result from unanticipated adjustments in projected expenditures.
(b) Amended appropriations must be classified as:
(i) salaries and wages;
(ii) maintenance and operation;
(iii) capital outlay;
(iv) interest and debt redemption; or
(v) miscellaneous.
(4) Prior to amending a final budget, the board shall:
(a) hold a public hearing on the proposed amendments at least 7 days prior to a vote on the resolution amending the
budget; and
(b) publish notice, at least once, in a newspaper of general circulation in the county at least 6 but not more than 16 days
before the hearing on the budget amendments. The published notice must specify the date, time, place, and subject of the
hearing.
(5) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 20. Section 7-6-2321, MCA, is amended to read:
"7-6-2321. Fixing of tax levy -- exception. (1) On or before the second Monday in August and after the approval and
adoption of the final budget, the board of county commissioners shall fix the tax levy for each fund at a rate which that will
raise the amount set out in the budget as the amount necessary to be raised by tax levy for the fund during the current fiscal
year. The taxable valuation of the county for the current fiscal year must be the basis for determining the amount of the tax
levy for each fund. Each tax levy must be at a rate not higher than is required on that basis, without including any amount
for anticipated tax delinquency, to produce the amount set out in the budget, without including any amount for anticipated
tax delinquency, that is the amount to be raised by tax levy.
(2) The tax levy must be made in the manner provided by 15-10-201.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 21. Section 7-6-2324, MCA, is amended to read:
"7-6-2324. Limitations on appropriations after budget adopted -- exception. (1) The estimates of expenditures,
itemized and classified as required in 7-6-2313 and 7-6-2314 and as finally fixed and adopted and as may be amended as
provided in 7-6-2320 by the board of county commissioners, constitutes the appropriations for the county for the fiscal year
intended to be covered by the estimates.
(2) Except as provided in 3-5-404, 7-6-2325, and 7-31-2101, the county commissioners and every other county official,
including judges of the district court, is are limited in the making of expenditures or incurring of liabilities to the amount of
the detailed appropriations and classifications, respectively.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 22. Section 7-6-2325, MCA, is amended to read:
"7-6-2325. Transfer of appropriations within and among expenditure classes. (1) Upon a resolution adopted by the
board of county commissioners at a regular or special meeting and entered upon its minutes, transfers or revisions in the
general budget system within the classifications set forth in 7-6-2314(1)(a) through (1)(c) may be made, provided that a
salary may not be increased above the amount appropriated.
(2) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 23. Section 7-6-2330, MCA, is amended to read:
"7-6-2330. Lapse of appropriation. (1) Subject to the provisions of subsection (2), all appropriations, other than
appropriations for uncompleted improvements in progress of construction, lapse at the end of the fiscal year.
(2) (a) The appropriation accounts must remain open for a period of 30 days after the end of the fiscal year for the payment
of claims incurred against the appropriations prior to the close of the fiscal year and remaining unpaid. After the period has
expired, all appropriations, except as otherwise provided regarding uncompleted improvements, become null and void, and
any lawful claim presented after expiration against any appropriation must be provided for in the ensuing budget.
(b) Subsection (2)(a) does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 24. Section 7-6-2331, MCA, is amended to read:
"7-6-2331. Clerk's report concerning expenditures, liabilities, and appropriations -- auditor's report -- exception.
(1) Within 4 working days after receipt of the treasurer's monthly report, the county clerk and recorder shall submit to the
board of county commissioners a report showing the expenditures and liabilities against each separate budget appropriation
incurred during the preceding calendar month and like information for the whole of the fiscal year to the first day of the
month in which the report is made, together with the unexpended balance of each appropriation. The clerk and recorder
shall also set forth the receipts from taxes and in detail the receipts from all other sources by each fund for the same period.
(2) In counties having county auditors, the county auditor, on the last business day of each month, shall furnish the county
clerk and recorder with a statement showing the total amount of liabilities incurred against each budget appropriation for
which warrants have not been issued up to the close of the business day.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 25. Section 7-6-2525, MCA, is amended to read:
"7-6-2525. Distribution of all-purpose levy -- exception. (1) The money received from the all-purpose levy must be
accounted for in a common fund known as the all-purpose fund.
(2) The all-purpose fund may be used only for purposes that are authorized for revenue derived from the individual levies
set forth in 7-6-2523, but the county governing body may allocate the revenue from the fund, in accordance with county
budget law, to fund any enumerated purpose that it considers appropriate.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 2. Section 7-6-4104, MCA, is amended to read:
"7-6-4104. Duties of city treasurer relating to finances -- exception -- EXCEPTION. It is the duty of the city
treasurer:
(1) to receive all money that comes to the city municipality, either from taxation or otherwise, and to pay the same money
out on the warrant of the mayor, countersigned by the clerk or finance officer, drawn in accordance with law;
(2) to give every person paying money to the treasurer a receipt, specifying the date of payment, the amount, and for what paid;
(3) to pay out, in the order registered, all warrants presented for payment, when there are funds in the treasury to pay the same.
(4) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
(4) This section does not apply to a city that has adopted the alternative accounting method provided for in Title 7, chapter
6, part 6."
NEW SECTION. Section 3. Role of department of commerce. (1) The department of commerce shall prescribe for all municipalities:
(a) general methods and details of accounting as provided in 2-7-504;
(b) uniform internal and interim reporting systems as provided in 2-7-503;
(c) annual financial report forms as provided in 2-7-503; and
(d) general methods and details of accounting for the annual financial report as provided in 2-7-513.
(2) Municipalities shall file with the department of commerce:
(a) an annual financial report within 6 months of the fiscal yearend; and
(b) an audit report within 6 12 months of the end of the audited period.
(3) The audit report must be accepted in lieu of the annual financial report if it contains, at a minimum, the municipality's general purpose financial statements and combining and individual fund and account group statements.
(4) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 4. Additional records and reports. (1) The chief executive or governing body of a municipality may require other elected or appointed officials to:
(a) maintain financial records;
(b) perform financial reconciliations; and
(c) submit financial reports.
(2) The treasurer shall:
(a) serve as the custodian of all public money;
(b) install and have supervision over the financial accounts of all departments and offices of the municipality; and
(c) require daily departmental reports of money receipts and their disposition on forms that the treasurer prescribes.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
Section 5. Section 7-6-4121, MCA, is amended to read:
"7-6-4121. Authorization to conduct municipal business on a cash basis. (1) In case If the total indebtedness of a city
or town has reached 17% of the total taxable value of the property of the city or town subject to taxation, as ascertained by
the last assessment for state and county taxes, the city or town may conduct its affairs and business on a cash basis as
provided by subsection (2).
(2) (a) Whenever a city or town is conducting its business affairs on a cash basis, the reasonable and necessary current
expenses of the city or town may be paid out of the cash in the city or town treasury and derived from its current revenue,
under any restrictions and regulations as the city or town council governing body may by ordinance prescribe.
(b) In the event that payment is made in advance, the city or town may require a cash deposit as collateral security and indemnity, equal in amount to the payment, and may hold the deposit as a special deposit with the city treasurer or town clerk, in package form, as a pledge for the fulfillment and performance of the contract or obligation for which the advance is made.
(c) Before the payment of the current expenses mentioned above described in subsection (2)(a), the city or town council
shall first set apart sufficient money to pay the interest upon its legal, valid, and outstanding bonded indebtedness and any
sinking funds provided for and is authorized to pay all valid claims against funds raised by tax especially authorized by law
for the purpose of paying the claims.
(3) THIS SECTION DOES NOT APPLY TO A CITY OR TOWN THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
(3) This section does not apply to a city or town that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 6. Section 7-6-4123, MCA, is amended to read:
"7-6-4123. Procedure to transfer municipal funds. No money Money may not must be transferred from one fund to
another except by ordinance or resolution of the council governing body unless previously authorized by budget resolution
or as prescribed by 7-6-4124."
Section 7. Section 7-6-4124, MCA, is amended to read:
"7-6-4124. Procedure to close inactive accounts. (1)(1) Whenever the council governing body of any city or town
having a corporate existence in this state considers it necessary to remove inactive accounts from its records when the
accounts do not have any further purpose, it is lawful for the council governing body to direct the proper city or town
officials to file claims against the respective inactive funds in favor of the general fund of the city or town, after which the
council governing body shall allow the claims and cause the inactive funds to be closed and not continued in the record of
active funds.
(2) THIS SECTION DOES NOT APPLY TO A CITY OR TOWN THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
(2) This section does not apply to a city or town that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
Section 8. Section 7-6-4134, MCA, is amended to read:
"7-6-4134. Capital improvement program fund. An amount not to exceed 5% 10% of the money received from and as
a part of the aforesaid an all-purpose levy provided for in 7-6-4452 may be placed in a separate fund, known as the capital
improvement program fund, to be earmarked for the replacement and acquisition of property, plant, or equipment costing in
excess of $5,000, with a life expectancy of 5 years or more, TO BE EARMARKED FOR THE REPLACEMENT,
IMPROVEMENT, AND ACQUISITION OF PROPERTY, FACILITIES, OR EQUIPMENT, provided that a capital
improvement program has been formally adopted by resolution of the city or town ordinance governing body."
Section 9. Section 7-6-4135, MCA, is amended to read:
"7-6-4135. Investment of money in capital improvement program fund. The money held in the capital improvement
program fund must, whenever possible, be invested in savings or time deposits in a state or national bank, savings and loan
association, or credit union insured by the federal deposit insurance corporation or by the national credit union
administration or invested in direct obligations of the United States government pursuant to Title 7, chapter 6, part 42 2,
and all interest must be credited to the fund plus interest earned."
Section 10. Section 7-6-4202, MCA, is amended to read:
"7-6-4202. Definitions. As used in this part, the following definitions apply:
(1) The term "clerk" means the clerk of the city "Chief executive" means the elected executive in a government adopting
the commission-executive form, the manager in a government adopting the commission-manager form, the presiding
officer in a government adopting the commission-presiding officer form, the town presiding officer in a government
adopting the town meeting form, the commission acting as a body in a government adopting the commission form, or the
officer or officers so designated in the charter in a government adopting a charter.
(2) The term "council" means the city council or city commission "Finance officer" means the elected or appointed finance
director, clerk, treasurer, or clerk-treasurer who has been delegated budget and accounting responsibilities.
(3) The term "municipal corporation" or "municipality" means the city "Governing body" means the municipal council or
commission.
(4) The term "treasurer" means the city treasurer "Municipality" means an incorporated city or town.
(5) "Working capital" means the current assets of a fund less the current liabilities and designated reserves of a fund."
Section 35. Section 7-6-4203, MCA, is amended to read:
"7-6-4203. Scope of part. The provisions of this part apply to all cities or towns municipalities in this state, except for
cities and towns that have adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."
Section 11. Section 7-6-4205, MCA, is amended to read:
"7-6-4205. Budget and levies to be supplied to Role of department of commerce. (1) The finance officer shall, not
later than October 1, forward a complete copy of the final budget together with tax levies to the department of commerce.
(2) The finance officer shall use standard forms prescribed by the department of commerce or shall use an alternative
budget format acceptable to the department of commerce. The department of commerce shall make rules and classifications
and prescribe forms necessary to carry out the provisions of this part. It shall define what expenditures are chargeable to
each budget account and shall establish accounting and cost systems necessary to provide accurate budget information. This
section does not apply to a city or town that has adopted the alternative accounting method provided for in Title 7, chapter
6, part 6.
(3) THIS SECTION DOES NOT APPLY TO A CITY OR TOWN THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6."
NEW SECTION. Section 12. Appropriation power. A governing body may appropriate money and provide for the payment of the debts and expenses of the municipality.
NEW SECTION. Section 13. Appropriation requirement. (1) Money, other than payments from agency funds, may not be drawn from the treasury of a municipality, and an obligation for the expenditure of money may not be incurred, except pursuant to an appropriation. The governing body may delegate, in its annual appropriation resolution, appropriation authority to the chief executive officer for the expenditure of funds from any or all of the following:
(1)(A) debt service funds;
(2)(B) enterprise funds;
(3)(C) internal service funds;
(4)(D) trust funds;
(5)(E) federal, state, and private grants accepted and approved by the governing body;
(6)(F) special assessments; and
(7)(G) donations.
(2) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 14. Manner of making payment for judgments against municipalities. (1) On receipt of the certificate of a justice of the peace or the clerk of the court in which any judgment is rendered, showing the amount of a judgment against a municipality and the date of its entry, the governing body shall direct that the amount of the judgment be paid from the general fund if there is sufficient money in the general fund to pay the judgement, exclusive of the appropriations for the current fiscal year.
(2) The governing body shall at the proper times levy and cause to be collected a tax on all the property of the municipality for the payment of the judgment within a period of 3 years from its presentation if there is not sufficient money, as provided in subsection (1), in the general fund to pay the judgment.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 15. Preliminary annual operating budget. (1) The finance officer shall prepare, under the direction of the chief executive, a preliminary annual operating budget for the municipality. The finance officer shall use standard forms prescribed by the department of commerce or an alternative budget format acceptable to the department of commerce.
(2) The preliminary annual operating budget for each fund must include, at a minimum:
(a) a listing of all revenue and other resources for the prior year, current year budget, and proposed budget year. Revenue and other resources must be summarized into the following categories: taxes; special assessment principal; special assessment interest; licenses and permits; intergovernmental revenue; charges for services, fines, and forfeitures; interest on investments, other revenue, and operating transfers in.
(b) a listing of all expenditures for the prior year, current year budget, and proposed budget year. All expenditures must be classified under one of the following categories: salaries and wages, operation and maintenance, capital outlay, debt service, or transfers out.
(c) a projection of changes in fund balances or cash balances available for governmental fund types and a projection of changes in cash balances and working capital for proprietary fund types. This projection must be supported by a summary for each fund or group of funds listing the estimated beginning balance, plus estimated revenue, less proposed expenditures, cash reserves, and estimated ending balances.
(d) a detailed list of proposed capital expenditures and a list of proposed major capital projects for the budget year;
(e) financial data on current and future debt obligations;
(f) schedules or summary tables of personnel or position counts for the prior year, current year, and budget year. The budgeted amounts for personnel services must be supported by a listing of positions, salaries, and benefits for all positions of the municipality. The listing of positions, salaries, and benefits is not required to be part of the budget document.
(g) all other estimates that fall under the purview of the budget.
(3) The preliminary annual operating budget for each fund for which the municipality will levy an ad valorem tax must include the amount to be raised by taxation, the taxable value, and the number of mills to be levied.
(4) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 16. Determination of fund requirements to be met by tax levy. (1) Following the
determinations required by [section 40 15], the governing body shall determine the amount to be raised for each fund for
which a tax levy is to be made by adding the cash balance in excess of outstanding unpaid warrants at the close of the
preceding fiscal year and the amount of the estimated revenues, if any, to accrue to the fund during the current fiscal year. It
shall then deduct the total amount obtained from the total amount of the appropriations and authorized expenditures from
the fund as determined by the governing body in the budget adopted and approved. The amount remaining is the amount
necessary to be raised for any fund by tax levy during the current fiscal year.
(2) The governing body may add to the amount necessary to be raised for any fund by tax levy during the current fiscal year an additional amount as a reserve to meet expenditures to be made from the fund during the months of July to November of the next fiscal year. The undesignated amount held as a reserve may not exceed one-half of the total amount appropriated and authorized to be spent from the fund during the current fiscal year, after deducting from the amount of the appropriations and authorized expenditures the total amount appropriated and authorized to be spent for election expenses and payment of emergency and other outstanding warrants.
(3) The total amount to be raised by tax levy for any fund during the current fiscal year, including the amount of the reserve, may not exceed the total amount that may be raised for the fund by a tax levy that does not exceed the maximum levy permitted by law to be made for the fund.
(4) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 17. Preliminary annual operating budget to be balanced. The preliminary annual operating budget may not include appropriations in excess of the projected beginning balance of a fund plus the estimated revenue of the fund for the year. THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 18. Due date for preliminary annual operating budget -- consideration of budget. (1) The preliminary annual operating budget must be presented by the finance officer to the governing body on or before the governing body's first meeting in August.
(2) Upon receipt of the preliminary annual operating budget, the governing body shall immediately consider the budget and make any revisions, reductions, additions, or changes the governing body considers advisable.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 19. Receipt and expenditure of money prior to adoption of final budget. A municipality may receive and expend money between July 1 of the fiscal year and the effective date of the resolution adopting a final municipal budget. THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 20. Notice of preliminary municipal budget. (1) The governing body shall cause a notice to be published stating that:
(a) the governing body has completed its preliminary municipal budget for the ensuing fiscal year;
(b) the budget has been placed on file and is open to inspection in the office of the finance officer of the municipality;
(c) the governing body will meet for the purpose of approving a final budget and making appropriations, designating the date, time, and place of the meeting; and
(d) any taxpayer or resident may appear at the meeting and be heard for or against any part of the proposed budget.
(2) The publication requirements must conform to the provisions of 7-1-4127.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 21. Hearing on proposed municipal budget. (1) Prior to the adoption of the final municipal
budget, the governing body shall meet at the time and place designated in the notice provided in [section 45 20], at which
time any taxpayer or resident may appear and be heard for or against any part of the budget. The governing body may call
in the official in charge of an office, department, service, or institution at the time the estimates for the official's office,
department, service, or institution are under consideration for examination concerning the estimates. The official must be
called in by the governing body, upon the request of a taxpayer or resident, for questioning upon the estimates by the
governing body, taxpayer, or resident.
(2) The hearing may be continued from day to day and must be concluded and the budget finally approved and adopted by resolution on or before the second Monday in August.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 22. Final municipal budget -- approval and adoption -- appropriations. (1) Following the public hearing and after taking into consideration any public comment, the governing body may amend the preliminary municipal budget. The preliminary municipal budget must be updated by the finance officer, reflecting any changes made by the governing body. The amended preliminary municipal budget, as approved by the governing body, constitutes the final budget of the municipality for the fiscal year that it is intended to cover. The governing body shall then pass a resolution for the fiscal year adopting the final municipal budget and authorizing appropriations.
(2) The resolution must authorize appropriations of enough money to defray the expenses or liabilities of the municipality for the fiscal year. The level of detail in the resolution establishes the legal spending limits of the municipality. The effective date of the resolution is the first day of the fiscal year.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
Section 48. Section 7-6-4232, MCA, is amended to read:
"7-6-4232. Fixing of tax levy -- exception. (1) On or before the second Monday in August and after the approval and
adoption of the final budget, the council governing body shall fix the tax levy for each fund at a rate, not exceeding limits
prescribed by law, that will raise the amount set out in the budget as the amount necessary to be raised by tax levy for that
fund during the current fiscal year. The taxable valuation of the city municipality for the current fiscal year must be the
basis for determining the amount of the tax levy for each fund, and each tax levy must be at a rate not higher than is
required on that basis, without including any amount for anticipated tax delinquency, to raise the amount set out in the
budget.
(2) If the council governing body considers that a levy made for a bond sinking or interest fund will not provide a
sufficient amount to pay all bond principal and interest becoming due during the current fiscal year or within 6 months after
the current fiscal year because of anticipated tax delinquency, the council governing body may fix the levy at a rate it
considers necessary to raise the amount for making the payments of principal and interest over and above the anticipated
tax delinquency.
(3) Each levy must be made in the manner provided by 15-10-201.
(4) This section does not apply to a municipality that has adopted the alternative accounting method provided for in Title 7,
chapter 6, part 6."
NEW SECTION. Section 23. Limitation of expenditures. Except as provided in [section 47 22], the governing body
and each municipal official are limited to the amount of appropriations and by the classifications in the annual
appropriation resolution provided for in [section 47 22] when making expenditures or incurring liabilities.
Section 24. Section 7-6-4234, MCA, is amended to read:
"7-6-4234. Effect of exceeding budget appropriations -- personal liability. (1) Expenditures made, or liabilities
incurred, or warrants issued in excess of any of the detailed budget appropriations specific appropriation contained in the
annual appropriation resolution provided for in [section 47 22], as originally determined or as thereafter revised by transfer
as provided in this part, shall are not be a liability of the municipality, but the official making or incurring such expenditure
or issuing such warrant shall be the obligation is liable therefor for the obligation personally and upon his official the
official's bond. The subsequent claims approval process may not be considered making or incurring an obligation.
(2) (a) The council shall not approve any claim and the clerk shall not issue any warrant for any expenditure in excess of
said detailed budget appropriations, as finally adopted or as revised under the provisions of this part, except upon an order
of a court of competent jurisdiction or for an emergency as hereinafter provided. Any municipal officer or officers
approving any claim or issuing any warrant in excess of any such budget appropriation except as above provided shall
forfeit to the city fourfold the amount of such claim or warrant.
(b) The amount forfeited under subsection (2)(a) shall be recovered in an action against such officer or officers or all of
them and their several sureties on their official bonds. It shall be the duty of the city attorney to bring an action therefor in
the name of the municipal corporation."
NEW SECTION. Section 25. Budget amendment procedure. (1) The governing body or the chief executive authorized in the annual appropriation resolution may transfer any part of an unencumbered balance of an appropriation to a purpose or object for which the appropriation for the current year is insufficient or may authorize a transfer to be made between items appropriated within the same fund.
(2) The governing body may delegate, in its annual appropriation resolution, budget amendment authority to the chief executive for the expenditure of funds from any or all of the following: debt service funds, enterprise funds, internal service funds, trust funds, federal and state grants accepted and approved by the governing body, special assessments, and donations.
(3) Any accruing revenue of the municipality not appropriated as provided in this part and any balance at any time remaining after the purpose of an appropriation has been satisfied or abandoned may from time to time be appropriated to other uses that do not conflict with any uses for which specifically the revenue accrued. A public hearing is required for an overall increase in appropriation authority, except in the case of an emergency under Title 10, chapter 3.
(4) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
Section 26. Section 7-6-4237, MCA, is amended to read:
"7-6-4237. Use of bond proceeds and borrowed money. (1) Money received from borrowing shall may not be used for
no other a purpose other than that for which borrowed, except that if any surplus remains after the accomplishment of the
purpose for which borrowed, it shall must be used to redeem the municipal debt.
(2) Where any budget shall contain an expenditure program to be financed from a bond issue to be authorized thereafter,
no expenditure shall be made or obligation incurred thereunder until such bonds have been duly authorized and the
proceeds are available.
(3)(2) The authorization of a bond issue by the electors or by the governing body of the city a municipality where an
election is not required shall constitute constitutes an appropriation of the bond proceeds to the purpose for which the bonds
are authorized, whether or not such the purpose is included in a budget previously adopted, but no warrants shall may not
be drawn, expenditures made, or obligations incurred in excess of such the appropriation except pursuant to an additional
appropriation included in a regularly adopted budget."
Section 27. Section 7-6-4240, MCA, is amended to read:
"7-6-4240. Lapse of appropriation. (1) Subject to the provisions of subsection (2), all appropriations, other than the
appropriations for uncompleted improvements in progress of construction, lapse at the end of the fiscal year.
(2) (a)(1) The appropriation accounts must remain open for a period of 30 60 days after the end of the fiscal year for the
payment of claims incurred against the appropriations prior to the close of the fiscal year and remaining unpaid. After the
30-day 60-day period has expired, all appropriations, except as otherwise provided regarding uncompleted improvements,
become null and void, and any lawful claim presented against any appropriation after the expiration of the 60-day period
must be provided for in the ensuing budget.
(b) Subsection (2)(a) does not apply to a municipality that has adopted the alternative accounting method provided for in
Title 7, chapter 6, part 6.
(2) At the close of each fiscal year, the unencumbered balance of each appropriation must revert to the respective fund from which it was appropriated and is subject to future appropriations unless the governing body authorizes the unencumbered balance of capital outlay appropriations to be reappropriated for the ensuing fiscal year.
(3) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6."
NEW SECTION. Section 28. Emergency expenditures. (1) All emergency expenditures must be charged to the emergency budget appropriations adopted by A THREE-FOURTHS MAJORITY OF THE MEMBERS PRESENT AT A MEETING OF a governing body.
(2) Emergency expenditures may be made by the issuance of checks or warrants drawn on the municipal treasury. The municipality is authorized and directed to pay the checks or warrants with any money available for that purpose. If at any time there is insufficient money available to pay the emergency expenditures, then emergency warrants must be issued and registered, must bear interest, and must be called for payment in the manner provided by law for other municipal warrants.
(3) The finance officer shall include in the preliminary annual operating budget to be submitted to the governing body the total amount of emergency warrants issued during the preceding fiscal year that remain unpaid. Subject to the provisions of this section, the governing body shall, in the tax levies, include a levy for each fund sufficient to raise an amount equal to the total amount of any emergency warrants remaining unpaid at the close of the preceding fiscal year because of insufficient money in the fund to pay the warrants.
(4) (a) A levy may not be made for any fund in excess of the levy authorized by law to be made for the fund.
(b) The governing body may submit the question of funding the emergency warrants at an election as provided by law. If possible, the election must be held in conjunction with a regular or primary election. If at the election issuing of funding bonds is authorized, it is not necessary for any levy to be made for the purpose of paying the emergency warrants.
(5) THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT HAS ADOPTED THE ALTERNATIVE ACCOUNTING METHOD PROVIDED FOR IN TITLE 7, CHAPTER 6, PART 6.
NEW SECTION. Section 29. Repealer. Sections 7-3-4371, 7-3-4372, 7-3-4373, 7-6-601, 7-6-602, 7-6-603, 7-6-604,
7-6-4102, 7-6-4103, 7-6-4105, 7-6-4106, 7-6-4107, 7-6-4108, 7-6-4109, 7-6-4110, 7-6-4111, 7-6-4112, 7-6-4113,
7-6-4119, 7-6-4120, 7-6-4122, 7-6-4131, 7-6-4132, 7-6-4133, 7-6-4204, 7-6-4221, 7-6-4222, 7-6-4223, 7-6-4224,
7-6-4225, 7-6-4226, 7-6-4227, 7-6-4228, 7-6-4229, 7-6-4230, 7-6-4231, 7-6-4233, 7-6-4235, 7-6-4236, 7-6-4239,
7-6-4241, 7-6-4251, 7-6-4252, 7-6-4253, 7-6-4254, and 7-6-4255, MCA, are repealed.
NEW SECTION. Section 30. Codification instruction. (1) [Sections 27 and 28 3 AND 4] are intended to be codified as
an integral part of Title 7, chapter 6, part 41, and the provisions of Title 7, chapter 6, part 41, apply to [sections 27 and 28 3
AND 4].
(2) [Sections 37 through 47, 49, 51, and 54 12 THROUGH 23, 25, AND 28] are intended to be codified as an integral part
of Title 7, chapter 6, part 42, and the provisions of Title 7, chapter 6, part 42, apply to [sections 37 through 47, 49, 51, and
54 12 THROUGH 23, 25, AND 28].
NEW SECTION. Section 31. Applicability. [This act] applies to municipal budgeting procedures commencing on July 1, 1997.
NEW SECTION. Section 32. Effective date. [This act] is effective on passage and approval.
-END-