Special End of Fiscal Year Duties – Public Notice

June 29, 2017

The end of the fiscal year, June 30, brings with it special legal requirements and concerns for municipalities as they close out one fiscal year and enter another.   The Constitutional Debt Limitation, which limits how and when a city or town can spend money, takes center stage.  Please note, a few municipalities have changed their fiscal year from July 1 to either a calendar year or some other beginning date.  Therefore, they will have to substitute the date ending their fiscal year for the June 30 date.

Due to the Constitutional Debt Limitation municipal officials must ensure that a special notice is published in a newspaper of general circulation in the county as well as closely follow various statutes and Oklahoma Supreme Court opinions.  General legal principles on this constitutional provision will be covered in future issues of the OML Insight. 


Pursuant to 62 O.S. Section 310.4 a unique 90-day period is established from June 30 to September 30.  During this 90-day period all unencumbered balances at the close of business on June 30, remains as a credit to pay indebtedness incurred during the prior fiscal year.   Following September 30, any unencumbered balance becomes revenue available to the budget of the new fiscal year.

The statute makes clear that no new indebtedness can be made after June 30 which is chargeable to the prior fiscal year’s revenues.  One way to think about it is that the 90-day window acts as a safety valve so municipalities can pay their bills incurred prior to the end of the fiscal year.  

As can be readily understood, which indebtedness can be paid and in what manner can be a complicated legal determination.  If you are unsure about a specific indebtedness, you should obtain the opinion of your legal counsel.  This can help protect city and town officials from potential legal liability.

To facilitate this 90-day payment period, Section 310.4 requires that the following statutory notice be published at any time during the month of July in a newspaper of general circulation.  It must be published for two consecutive times if in a daily newspaper and once if in a weekly newspaper. 



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.

Please Note: This summary is not a substitute for legal advice. You should consult your city or town attorney prior to taking any action based on this document.

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© Oklahoma Municipal League, Inc.
This material is provided as general information and is not a substitute for legal advice.
Consult your attorney for advice concerning specific situations