The cities of Oregon City and West Linn operating jointly as the South Fork Water Board acknowledged in July 1996 that they had authority to execute an Intergovernmental Cooperative Agreement pursuant to the powers of their respective municipal charters and pursuant to ORS 225.050 and ORS 190.010. The Board is exempt by statute from Oregon Local Budget Law. However, in conjunction with the issuance of a February 8, 1995 bond issue, the Board passed a resolution to follow the provisions of the Law. Accordingly, a budget is prepared and adopted for each fund using the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. For all funds the levels of control are personal services, materials and services, capital outlay and debt service. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations resolution. Original and supplemental budgets require hearings before the public and publications in newspapers or other notice. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control.