Chapter VII.
FINANCE AND TAXATION

Section 1.  Fiscal

The powers of the City concerning budget, taxation, financial, and fiscal powers shall be limited only by state law, this Charter, and City Code.

Section 2.  Taxing Powers

A.    The Council shall have the power to levy and collect value, privilege, excise, and any other tax not prohibited by Federal or State Constitution, for any lawful municipal purpose, including but not limited to general expenses incurred in the operation of City government, and to pay the interest and repay the bonded indebtedness of the City.

(1)    The Council shall have the power to set transaction privilege tax and use tax through City ordinance.

(2)    The initiation of a property tax shall require an election of the voters to approve such property tax, and require voter approval of the proposed property tax amount.

Section 3.  Debt Limitations

The Council, in accordance with state law, may incur debt, including general obligation bonds, revenue bonds, leases, and all other debt types. To control fixed costs and to ensure the City has the ability to meet debt and all other operating costs, the Council, by way of ordinance, shall adopt a debt limitation policy.

Section 4.  Depositories, Transfers, and Investment of City Funds

A.    The City shall establish an accounting system that follows generally accepted accounting principles as set forth by the Governmental Accounting Standards Board.

B.    The Council may direct City monies to be deposited or invested in any depository or other investment so long as such deposit or investment is not contrary to the laws of the State.

Section 5.  City Minimum Reserve Policy

The Council shall adopt a Fund Balance Policy that includes a targeted annual minimum unassigned fund balance of 25% of operating expenditures. The policy shall also include a provision to temporarily lower the unassigned fund balance should an emergency measure be enacted as reference in this Charter.

Section 6.  Claims Against the City

The Council shall prescribe the manner in which claims against the City shall be presented, audited, and paid, including the time period in which such claims, including negligence claims, may be submitted to the City, consistent with state law.

Section 7.  Independent Audit and Review

An independent audit of the City’s financial transactions shall be conducted as required by state law. The responsible auditor or auditing firm must not have any personal interest, direct or indirect, in the fiscal affairs of the City government or of any of its officers. Independent audits shall follow generally accepted accounting principles as set forth by the Governmental Accounting Standards Board.