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Re: [Oama] Payment in current fiscal year for charges incurred in previous years

DD
david davis
Mon, Jan 11, 2021 8:32 PM

In my opinion this statute would apply regardless of adoption of Municipal Budget act.  I dont find any cases on the effect of not publishing the notice however Article 18 Section 26 is the basis for this statute and arguably the debt could not be paid even if the notice were not published.  See Wyatt, Doyle and Butler vs City of Eufaula, 2000 okla 74,  for a good discussion of debt limitations.

CONFIDENTIALITY NOTE:  This transmission is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and intended to be delivered only to the named addressee(s) This e-mail message is intended only for the personal use of the recipient(s) named above. This message is or may be an attorney-client communication and as such privileged and confidential. If you are not an intended recipient, you may not review, copy or distribute this message. If you have received this communication in error, please notify us immediately by e-mail and delete the original message.

s/ David A. Davis
LAW OFFICE OF DAVID A. DAVIS
4312 N. Classen Blvd.
OKLAHOMA CITY, OK 73118
405 840-6353
405 557-0777 (FAX)
ddavislaw@live.commailto:ddavislaw@live.com


From: Joe Weaver jweaver@basslaw.net
Sent: Monday, January 11, 2021 2:02 PM
To: david davis ddavislaw@live.com
Subject: RE: Payment in current fiscal year for charges incurred in previous years

David,

Thank you for your response.  I reviewed the referenced statutes and would appreciate your input on a couple of questions.  Is the prohibition against paying indebtedness incurred in a prior fiscal year after September 30th of the next fiscal year applicable in all cases?  For example, would the statute apply to a Town that has not adopted the Municipal Budget Act, Title 11 O.S. § 17-201 et seq., or if the Notice provided for in 62 O.S. § 310.4 is not given?

Thanks,

Joe

From: david davis [mailto:ddavislaw@live.com]
Sent: Wednesday, January 06, 2021 10:12 AM
To: Joe Weaver jweaver@basslaw.net; oama@lists.imla.org
Subject: Re: Payment in current fiscal year for charges incurred in previous years

Look at 62 os 310.4.

itle 62. Public Finance
[https://www.oscn.net/Images/Applications/search/WDFolderOpen.gif] https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.oscn.net%2Fapplications%2FOCISWeb%2Findex.asp%3Flevel%3D1%26ftdb%3DSTOKST62%23Chapter2-ProvisionsApplicabletoSubdivisionsoftheState&data=04%7C01%7C%7Cc0ac4297601d421255f408d8b66bcc99%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637459921412557706%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=TVoRrYWNzXwnUufvCsqrtMFP9f1jZOgDVVpUEAAl0KQ%3D&reserved=0 Chapter 2 - Provisions Applicable to Subdivisions of the State
[https://www.oscn.net/Images/Applications/search/WDDocument.gif] Section 310.4 - Unencumbered Balances of Fiscal Year Available Until September 30 - Notice to Present Claims
Cite as: O.S. §, __ __


All unencumbered balances, if any, as shown by the officer charged with keeping the appropriation and expenditure records of the county, city, or town on hand at the close of day June 30, may remain as a credit for said fiscal year up to the close of day September 30, next. Said officer charged with keeping the appropriation and expenditure records of the county, city, or town shall at any time during the month of July advertise in a newspaper of general circulation in the county and shall cause to be published for two (2) consecutive times if in a daily newspaper and once if in a weekly newspaper, notice in the following form:

PUBLIC NOTICE

All persons having an indebtedness or claim against ___________________________________ _______________________________________________________________________________

County, City, or Town

are hereby notified that all invoices and documentation pertaining to said purchase order or contract must be recorded in the office of _____________ Clerk on or before September 30, 20___, covering all debts now unpaid and incurred during the period beginning on July 1, 20___, and ending on June 30, 20___, or said account shall be void and forever barred.


Clerk or Encumbering Officer

Provided this act shall not be so construed to allow the incurring of a new indebtedness after June 30 chargeable to the appropriation account of the immediately preceding fiscal year.

CONFIDENTIALITY NOTE:  This transmission is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and intended to be delivered only to the named addressee(s) This e-mail message is intended only for the personal use of the recipient(s) named above. This message is or may be an attorney-client communication and as such privileged and confidential. If you are not an intended recipient, you may not review, copy or distribute this message. If you have received this communication in error, please notify us immediately by e-mail and delete the original message.

s/ David A. Davis
LAW OFFICE OF DAVID A. DAVIS
4312 N. Classen Blvd.
OKLAHOMA CITY, OK 73118
405 840-6353
405 557-0777 (FAX)
ddavislaw@live.commailto:ddavislaw@live.com


From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> on behalf of Joe Weaver <jweaver@basslaw.netmailto:jweaver@basslaw.net>
Sent: Wednesday, January 6, 2021 9:55 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: [Oama] Payment in current fiscal year for charges incurred in previous years

Town agreed to pay individual for certain services provided to Town.  Individual performed the services in the years 2017, 2018, 2019 and 2020, but failed to bill Town.  Individual reviewed his books and now has billed Town for those services.  Town does not oppose payment, but a Board member questioned whether Town can pay these charges incurred in previous fiscal years.  Is Town prohibited from paying the charges?

Thanks,

Joe


Joe Weaver

Attorney At Law

405.262.4040

405.262.4058 fax

joe@basslaw.netmailto:agbass@basslaw.net

[cid:image001.png@01D6E81C.67AC1EF0]

www.basslaw.nethttps://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.basslaw.net%2F&data=04%7C01%7C%7Cc0ac4297601d421255f408d8b66bcc99%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637459921412567704%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=L4a19cTLK%2F5MI%2FxCOa%2BSsbtuRmvzAmbF7zsLbZHRJWs%3D&reserved=0

104 N. Rock Island Ave.

P.O. Box 157

El Reno, OK 73036

NOTICE:
The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system.

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NOTICE:
The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system.

Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

In my opinion this statute would apply regardless of adoption of Municipal Budget act. I dont find any cases on the effect of not publishing the notice however Article 18 Section 26 is the basis for this statute and arguably the debt could not be paid even if the notice were not published. See Wyatt, Doyle and Butler vs City of Eufaula, 2000 okla 74, for a good discussion of debt limitations. CONFIDENTIALITY NOTE: This transmission is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and intended to be delivered only to the named addressee(s) This e-mail message is intended only for the personal use of the recipient(s) named above. This message is or may be an attorney-client communication and as such privileged and confidential. If you are not an intended recipient, you may not review, copy or distribute this message. If you have received this communication in error, please notify us immediately by e-mail and delete the original message. s/ David A. Davis LAW OFFICE OF DAVID A. DAVIS 4312 N. Classen Blvd. OKLAHOMA CITY, OK 73118 405 840-6353 405 557-0777 (FAX) ddavislaw@live.com<mailto:ddavislaw@live.com> ________________________________ From: Joe Weaver <jweaver@basslaw.net> Sent: Monday, January 11, 2021 2:02 PM To: david davis <ddavislaw@live.com> Subject: RE: Payment in current fiscal year for charges incurred in previous years David, Thank you for your response. I reviewed the referenced statutes and would appreciate your input on a couple of questions. Is the prohibition against paying indebtedness incurred in a prior fiscal year after September 30th of the next fiscal year applicable in all cases? For example, would the statute apply to a Town that has not adopted the Municipal Budget Act, Title 11 O.S. § 17-201 et seq., or if the Notice provided for in 62 O.S. § 310.4 is not given? Thanks, Joe From: david davis [mailto:ddavislaw@live.com] Sent: Wednesday, January 06, 2021 10:12 AM To: Joe Weaver <jweaver@basslaw.net>; oama@lists.imla.org Subject: Re: Payment in current fiscal year for charges incurred in previous years Look at 62 os 310.4. itle 62. Public Finance [https://www.oscn.net/Images/Applications/search/WDFolderOpen.gif] <https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.oscn.net%2Fapplications%2FOCISWeb%2Findex.asp%3Flevel%3D1%26ftdb%3DSTOKST62%23Chapter2-ProvisionsApplicabletoSubdivisionsoftheState&data=04%7C01%7C%7Cc0ac4297601d421255f408d8b66bcc99%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637459921412557706%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=TVoRrYWNzXwnUufvCsqrtMFP9f1jZOgDVVpUEAAl0KQ%3D&reserved=0> Chapter 2 - Provisions Applicable to Subdivisions of the State [https://www.oscn.net/Images/Applications/search/WDDocument.gif] Section 310.4 - Unencumbered Balances of Fiscal Year Available Until September 30 - Notice to Present Claims Cite as: O.S. §, __ __ ________________________________ All unencumbered balances, if any, as shown by the officer charged with keeping the appropriation and expenditure records of the county, city, or town on hand at the close of day June 30, may remain as a credit for said fiscal year up to the close of day September 30, next. Said officer charged with keeping the appropriation and expenditure records of the county, city, or town shall at any time during the month of July advertise in a newspaper of general circulation in the county and shall cause to be published for two (2) consecutive times if in a daily newspaper and once if in a weekly newspaper, notice in the following form: PUBLIC NOTICE All persons having an indebtedness or claim against ___________________________________ _______________________________________________________________________________ County, City, or Town are hereby notified that all invoices and documentation pertaining to said purchase order or contract must be recorded in the office of _____________ Clerk on or before September 30, 20___, covering all debts now unpaid and incurred during the period beginning on July 1, 20___, and ending on June 30, 20___, or said account shall be void and forever barred. _____________________________________ Clerk or Encumbering Officer Provided this act shall not be so construed to allow the incurring of a new indebtedness after June 30 chargeable to the appropriation account of the immediately preceding fiscal year. CONFIDENTIALITY NOTE: This transmission is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and intended to be delivered only to the named addressee(s) This e-mail message is intended only for the personal use of the recipient(s) named above. This message is or may be an attorney-client communication and as such privileged and confidential. If you are not an intended recipient, you may not review, copy or distribute this message. If you have received this communication in error, please notify us immediately by e-mail and delete the original message. s/ David A. Davis LAW OFFICE OF DAVID A. DAVIS 4312 N. Classen Blvd. OKLAHOMA CITY, OK 73118 405 840-6353 405 557-0777 (FAX) ddavislaw@live.com<mailto:ddavislaw@live.com> ________________________________ From: Oama <oama-bounces@lists.imla.org<mailto:oama-bounces@lists.imla.org>> on behalf of Joe Weaver <jweaver@basslaw.net<mailto:jweaver@basslaw.net>> Sent: Wednesday, January 6, 2021 9:55 AM To: oama@lists.imla.org<mailto:oama@lists.imla.org> <oama@lists.imla.org<mailto:oama@lists.imla.org>> Subject: [Oama] Payment in current fiscal year for charges incurred in previous years Town agreed to pay individual for certain services provided to Town. Individual performed the services in the years 2017, 2018, 2019 and 2020, but failed to bill Town. Individual reviewed his books and now has billed Town for those services. Town does not oppose payment, but a Board member questioned whether Town can pay these charges incurred in previous fiscal years. Is Town prohibited from paying the charges? Thanks, Joe -------------------------------- Joe Weaver Attorney At Law 405.262.4040 405.262.4058 fax joe@basslaw.net<mailto:agbass@basslaw.net> [cid:image001.png@01D6E81C.67AC1EF0] www.basslaw.net<https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.basslaw.net%2F&data=04%7C01%7C%7Cc0ac4297601d421255f408d8b66bcc99%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637459921412567704%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=L4a19cTLK%2F5MI%2FxCOa%2BSsbtuRmvzAmbF7zsLbZHRJWs%3D&reserved=0> 104 N. Rock Island Ave. P.O. Box 157 El Reno, OK 73036 NOTICE: The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system. Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. NOTICE: The information contained in this transmission is or may be protected by the attorney-client and/or the attorney work product privilege and is confidential. It is intended only for the use of the individual or entity identified above. If the reader of this message is not the intended recipient you are hereby notified that any dissemination or distribution of the accompanying communication is prohibited. No applicable privilege is waived by the party sending this communication. If you have received this communication in error, please notify us immediately by reply and delete the original message from your system. Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.