Chapter 2.8
BUDGET PROCEDURES*
Sections:
2.8.04 Proposed budgets for departments not under the direct control of the City Manager.
2.8.05 Budget messages: Current operations.
2.8.06 Budget messages: Capital projects.
2.8.07 Budget messages: Supporting schedules.
2.8.08 Anticipated surplus from municipal utilities or other public service enterprises.
2.8.09 Public hearings on budgets.
2.8.10 Date of adoption: Failure to adopt.
2.8.13 Transfers of balances: Appropriation of reserves: Appropriation/payment from special funds.
2.8.14 Lapse of appropriations.
2.8.16 Implementation of budget procedures.
2.8.17 Level of appropriations.
2.8.19 Appropriation limitations.
* Chapter 8 entitled “Demands,” consisting of Sections 2.8.01 through 2.8.06, as added by Ordinance No. 437, effective January 17, 1968, repealed by Ordinance No. 86-34, effective February 4, 1987.
2.8.01 Purpose.
The purpose of this chapter is to adopt rules governing the proceedings for administering the financial affairs of the City, to establish a standard procedure for the preparation and administration of budgets, and to place responsibility for the tasks related to budget preparation and administration. The provisions of this chapter are intended to enable the Council to make financial plans for both current and long-term expenditures, to ensure that the executive staff administers its respective functions in accordance with the plans set forth in this chapter, and to permit taxpayers and investors to form intelligent opinions based on sufficient information as to the financial policies and administration of the City. For the accomplishment of this purpose, the provisions of this chapter shall be broadly construed. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.02 Definitions.
For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:
(a) “Appropriation” shall mean an authorization granted by the Council to make expenditures and to incur obligations for specific purposes.
(b) “Budget” shall mean the plan of financial operation adopted by the Council embodying authorized expenditures, including the Capital Improvement Program, and estimated revenues for the applicable fiscal year.
(c) “Capital outlay” shall mean an expenditure for assets having a value of ten thousand and no/100ths dollars ($10,000.00) and a life of more than three (3) years and which is required by generally accepted accounting principles to be included in the fixed asset inventory.
(d) “Capital project” shall mean all related expenditures, including design, inspection, financing, acquisition of real property, and the like, for a public improvement, such as a public building, utility installation, street or bridge construction, or other public works.
(e) “Council” shall mean the Council of the City of Clovis.
(f) “Department” shall mean any department of the City.
(g) “Encumbrance” shall mean an obligation in the form of a purchase order or contract.
(h) “Estimated revenue” shall mean all revenue from any source whatsoever for all funds anticipated to be collected during the fiscal year.
(i) “Expenditure” shall mean any charge incurred.
(j) “Fiscal year” shall mean the year beginning on July 1st each year and shall end on June 30th of the subsequent year.
(k) “Proposed budget” shall mean the plan of financial operation for the next fiscal year submitted by the City Manager to the Council for its consideration.
(l) “Reserve” shall mean that amount set aside for future projects, contingencies, and unforeseen events.
(m) “Surplus balance” shall mean that portion of a given fund which is not segregated or reserved for specific purposes, including, but not limited to, unallocated funds from previous years and revenues received in excess of estimated revenues and requirements.
(n) “Unencumbered appropriation” shall mean that portion of an appropriation not yet expended or encumbered. (§ 1, Ord. 87-6, eff. April 1, 1987; as amended by § 1, Ord. 06-36, eff. October 5, 2006)
2.8.03 Proposed budgets.
The City Manager shall submit to the Council a proposed budget on or before the third regular meeting of May of each year. The proposed budget shall include, but not be limited to:
(a) The City Manager’s budget message;
(b) A summary of estimated available fund balances;
(c) Schedules of expenditures by function or program; and
(d) Schedules of revenue by source. (§ 1, Ord. 87-6, eff. April 1, 1987; as amended by § 1, Ord. 01-05, eff. March 22, 2001)
2.8.04 Proposed budgets for departments not under the direct control of the City Manager.
Proposed budgets for the departments of those officials not reporting to the City Manager shall be submitted to the City Manager for inclusion in the budget in accordance with the budget calendar established by the City Manager. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.05 Budget messages: Current operations.
The budget message submitted by the City Manager shall be explanatory of the budget; shall contain an outline of the proposed financial policies for the fiscal year; and shall describe in connection therewith the important features of the budget plan. The budget message shall set forth the reasons for important or significant changes from the current year in appropriation and revenue items and shall explain any major changes in financial policy. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.06 Budget messages: Capital projects.
As a part of the budget message, the City Manager shall include, or attach thereto, a program of proposed capital projects for each of the budget years and for the four (4) fiscal years next succeeding the budget year, together with comments thereon and any estimates of costs prepared. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.07 Budget messages: Supporting schedules.
Attached to the budget message shall be such supporting schedules, exhibits, and other explanatory material, in respect to both current operations and capital improvements, as the City Manager believes useful to the governing body. The proposed budget shall include historical data on revenue and expenditures by major category. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.08 Anticipated surplus from municipal utilities or other public service enterprises.
The anticipated revenue and proposed expenditures of each utility or other public service enterprise owned or operated by the City shall be stated in a separate section of the budget (each bearing the name of the utility or enterprise). To the extent that estimated available resources exceed the requirements of the fund, the surplus of such utility, if legally available, may be used for general purposes. If used for general purposes, such surplus shall be stated as an item of revenue in the General Fund and as an expenditure in the respective utility. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.09 Public hearings on budgets.
Prior to adopting the budget, the Council shall hold a public hearing on the proposed budget at the time and place so advertised or at any time and place to which such public hearing from time to time shall be adjourned. Prior to the adoption of the budget, the Capital Improvement Program shall be submitted to the Planning Commission for review for consistency with the General Plan in accordance with State laws. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.10 Date of adoption: Failure to adopt.
The budget for the ensuing fiscal year shall be adopted not later than June 30 and shall be adopted by resolution of the Council. Should the Council fail to adopt the budget on or before such day, the proposed budget, as submitted, shall constitute an appropriation as to all expenditures proposed therein until further action by the Council, except that such failure to adopt shall not apply to additional employees or additional equipment requested in the proposed budget. Upon adoption the budget shall be in effect for the applicable fiscal year. The sole purpose of this section is to provide for continuing authority to incur expenditures pending final Council action on the budget. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.11 Amendments to budgets.
From time to time the Council may consider amendments to the budget and make revisions as the Council may deem advisable. However, when the Council increases the total proposed expenditures, the increase shall be balanced by estimated revenue or other available resources. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.12 Budget administration.
The City Manager, acting through the Director of Finance, shall have charge of the administration of the financial affairs of the City and to that end shall supervise and be responsible for the disbursement of all moneys and have control over all expenditures to insure that appropriations are not exceeded. Subject to the provisions of Section 2.8.04, the City Manager shall exercise financial budgetary control over each office, department, and agency of the City. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.13 Transfers of balances: Appropriation of reserves: Appropriation/payment from special funds.
The Director of Finance, with the approval of the City Manager, may transfer any unencumbered appropriation balance or reserve within a specific fund; provided however, any such transfer in excess of five thousand and no/100ths dollars ($5,000.00) for appropriations and two thousand five hundred and no/100ths dollars ($2,500.00) for reserve shall be subject to the approval of the Council. Notwithstanding the foregoing, in those circumstances where funds are provided by a party requesting the City to perform a function for which a contract with another party is required and no budget appropriation exists, the City Manager is authorized to appropriate funds equal to the amount provided by the first party up to ten thousand and no/100ths dollars ($10,000.00) without Council approval. Furthermore, where a written agreement exists between the City and an owner/developer for reimbursement by the City from major street development fees or similar funds received from other owners/developers for purpose of such reimbursement, the City Manager is authorized without Council approval to approve the transfer and appropriation of those fees or funds as are necessary to satisfy the provisions of the agreement, subject to availability of such fees or funds for said purpose. (§ 1, Ord. 92-27, eff. July 22, 1992)
2.8.14 Lapse of appropriations.
All appropriations shall lapse and be returned to reserve at the end of the budget year to the extent that they shall not have been expended, lawfully encumbered, or placed in a reserve. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.15 Budget control.
Except as otherwise provided in this chapter, each department head shall have control over the administration of his respective budget and shall have the authority to authorize expenditures up to the limit of the approved appropriations. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.16 Implementation of budget procedures.
The City Manager shall develop the necessary procedures for the effective implementation of this chapter. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.17 Level of appropriations.
For appropriation and accounting control, budget amounts may be presented by line item. The Council shall approve the budget for each fund and for each department. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.18 Periodic reporting.
The City Manager shall file with the Council quarterly reports on the appropriation status and revenue receipts and shall advise the Council of significant deviations from the adopted budget. (§ 1, Ord. 87-6, eff. April 1, 1987)
2.8.19 Appropriation limitations.
As part of the preparation of the budget, the Director of Finance shall compute the City’s appropriation limitation for the budget year. The appropriation limitation shall be included in the budget and shall be approved with the adoption of the budget. (§ 1, Ord. 87-6, eff. April 1, 1987)