Chapter 3.04 BUDGET

The ordinance codified in this chapter shall be cited as the “city of San Pablo budget ordinance.” (Ord. 2014-012 § 1 (part), 2014: prior code § 11.1)

3.04.020 Purpose.

The purpose of this chapter is to establish a standard procedure for the making and administration of budgets, the determination of the amount of taxes and other revenues, the establishment of appropriations, the payment of debt and the control of other expenditures. Its provisions are intended to enable the governing body to make financial plans for both current and capital expenditures, to ensure that executive staff administer their respective functions in accordance with these plans, 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. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.3)

3.04.030 Applicability.

This chapter shall apply to every office, department or agency of the city whose appropriations are established by the governing body. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.4)

3.04.040 Definitions.

For the purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section:

A. “Budget” means a budget that covers at least one fiscal year and may span multiple fiscal years.

B. “Budget officer” means the city manager, or a person appointed or designated by him.

C. “Budget year” means the fiscal year or years for which a budget is made.

D. “Current year” means the present-day fiscal year in which a budget is implemented and managed. (Ord. 2017-006 § 5, 2017: Ord. 2014-012 § 1 (part), 2014: prior code § 11.2)

3.04.050 Powers and duties of governing body, officers and employees of city generally.

Within the provisions and for the purpose of this chapter, the governing body, officers and employees of the city shall have the powers and be subject to the duties expressly stated or necessarily implied. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.5)

3.04.060 Fiscal year and budget preparation.

The fiscal year shall begin on the first day of July and shall end on the thirtieth day of June. The budget shall normally be prepared for multiple fiscal years; however, if circumstances warrant, the governing body may, by resolution, require the budget to be prepared for a single fiscal year. (Ord. 2017-006 § 6, 2017: Ord. 2014-012 § 1 (part), 2014: prior code § 11.6)

3.04.070 Publication requirements.

Publications required by this chapter shall be in a qualified newspaper published and having general circulation in the city, if there is one, or if not, in a qualified newspaper published within the county and having a general circulation in the city. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.7)

3.04.080 Budget message—Contents—Proposed financial policies.

The budget message submitted by the budget officer to the governing body shall be explanatory of the budget, shall contain an outline of the proposed financial policies of the city for the budget year, and shall describe in connection therewith the important features of the budget plan. It shall set forth the reasons for salient changes from the previous year in appropriation and revenue items and shall explain any major changes in financial policy. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.8)

3.04.090 Budget message—Capital improvements pending and proposed for next fiscal year.

The budget officer shall include in the budget message a general statement highlighting pending and proposed capital projects, relating the respective amounts proposed to be raised therefor by appropriations in the budget and the respective amounts, if any, proposed to be raised therefor by the issuance of debt instruments during the budget year. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.9)

3.04.100 Budget message—Capital improvements proposed for next five fiscal years.

The budget officer shall also include in the message, or attach thereto, a capital program of proposed capital projects for the next five fiscal years including the budget year, together with the budget officer’s comments thereon and any estimates of costs prepared by the department of public works or other office, department or agency. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.10)

3.04.110 Budget message—Supporting schedules.

The budget message shall include such supporting schedules, exhibits and other explanatory material, in respect to both current operations and capital improvements, as the budget officer believes useful to the governing body. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.11)

3.04.120 Generally—Contents.

The budget shall provide a complete financial plan for the budget year. It shall contain the following in tabular form:

A. A general summary;

B. Detailed estimates of all anticipated revenues applicable to proposed expenditures;

C. All proposed expenditures.

The total of such anticipated revenues shall equal the total of such proposed expenditures. (Ord. 2014-012 § 1 (part), 2014: prior code § 11.12)

3.04.130 Anticipated revenues—Classification generally.

Anticipated revenues shall be classified by source, including property tax, business tax, sales tax or any other appropriate classification consistent with generally accepted accounting principles (GAAP) recommended standards, and shall be estimated as prescribed in Sections 3.04.170, 3.04.180 and 3.04.190. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 6: prior code § 11.13)

3.04.140 Anticipated revenues—Comparison with preceding and current fiscal year.

In parallel columns opposite the several items of anticipated revenues there shall be placed the amount of each such items in the budget of the next preceding fiscal year, the amounts of such items actually received during that year, the amount of each such item in the budget of the current fiscal year, and the amount actually received to the time of preparing the budget plus anticipated receipts for the remainder of the current fiscal year estimated as accurately as possible. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 7: prior code § 11.14)

3.04.150 Measurement of estimates generally.

No miscellaneous revenue from any source shall be included as an anticipated revenue in the budget in an amount in excess of the average of the amount actually realized in cash from the same source in the next preceding fiscal year, and that actually realized in the first ten months of the current fiscal year plus that anticipated for the remaining two months of the year, estimated as accurately as possible, unless the budget officer determines that the facts clearly warrant the expectation that such excess amount will actually be realized in cash during the budget year and shall certify such determination in writing to the governing body. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 10: prior code § 11.16. Formerly 3.04.160)

3.04.160 Measurement of special assessments.

Revenues from the collection of special assessments on property specially benefited shall not be stated in an amount which is in excess of the amount of the receipts so derived which it is estimated will be held in cash on the first day of the budget year. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 11: prior code § 11.17. Formerly 3.04.170)

3.04.170 Measurement of revenue from new source.

No revenue, from a new source not previously stated in the budget, shall be included unless the budget officer determines that the facts clearly warrant the expectation that such revenue will be actually realized in cash during the budget year in the amount stated and shall certify such determination in writing to the governing body.

If the new revenue is received from the state, the anticipated amount shall not exceed the amount which an appropriate officer of the state declares in writing to be the amount which may reasonably be anticipated in the budget year if such estimate is provided. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 12: prior code § 11.18. Formerly 3.04.180)

3.04.180 Surplus.

Surplus available for appropriation shall be limited to cash surplus, defined for purposes of Sections 3.04.120 through 3.04.210 as the estimated amount by which cash will exceed current liabilities at the beginning of the budget year, and anticipated revenues shall include only such portion of the cash surplus, thus defined, as is deemed to conform with the public interest. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 8: prior code § 11.19. Formerly 3.04.190)

3.04.190 Proposed expenditures—Generally.

Proposed expenditures shall be itemized, and separate provision shall be included in the budget for at least the following:

A. Interest, amortization and redemption charges on the public debt for which the faith and credit of the city is pledged;

B. Other statutory expenditures;

C. The payment of all judgments;

D. Administration, operation and maintenance of each office, department or agency;

E. Contingent expense in an amount not more than five percent of the total amount stated pursuant to subsection D of this section;

F. Expenditures proposed for capital projects. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 13: prior code § 11.20. Formerly 3.04.200)

3.04.200 Proposed expenditures—Comparison with preceding and current fiscal years.

In parallel columns, opposite the several items of proposed expenditure, there shall be placed the amount of each such item in the budget of the next preceding fiscal year, the amount of such item in the budget of the current year and the amount actually expended to the time of preparing the budget plus the expenditures for the remainder of the current fiscal year estimated as accurately as possible. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 14: prior code § 11.21. Formerly 3.04.210)

3.04.210 Summary of detailed estimates.

At the head of the budget there shall appear a summary of the budget, which need not be itemized further than by principal sources of anticipated revenue, stating separately the amount to be raised by major tax sources generally, and by departments and kinds of expenditures in such a manner as to present to taxpayers a simple and clear summary of the detailed estimates of the budget. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 4 § 15: prior code § 11.22. Formerly 3.04.220)

3.04.220 Proposed budget—Submission with budget message to council—Preparation.

A. The budget officer, generally no later than the first regular council meeting in June and prior to the beginning of each budget year, shall submit to the governing body a budget and an explanatory budget message in the form and with the contents provided by Sections 3.04.080 through 3.04.210. For such purpose, the budget officer or designee shall obtain from the head of each office, department or agency, estimates of revenue and expenditure of that office, department or agency, detailed by organization units and character and object of expenditure, and such other supporting data as may be requested, together with an estimate of all capital projects pending or which such department head believes should be undertaken: (1) within the budget year; and (2) within the next five succeeding years, including the budget year.

B. In preparing the budget, the budget officer shall review the estimates, may hold hearings thereon, and may revise the estimates, as he or she deems advisable. The budget officer also shall obtain from the responsible state officer or officers estimates of anticipated state grants-in-aid and locally shared state taxes. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 1: prior code § 11.23. Formerly 3.04.230)

3.04.230 Proposed budget—A public record with budget message—Distribution of copies and public access.

The budget and budget message and all supporting schedules shall be a public record in the office of the city clerk open to public inspection by anyone. The budget officer shall also provide public access to the budget document in its entirety in at least two additional public places, including the city’s website and at the city library. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 2: prior code § 11.24. Formerly 3.04.240)

3.04.240 Proposed budget—Hearing required—Procedure.

At the time and place designated by council for a public hearing on the budget and for which notice is given as required in Section 3.04.250, or at any time and place to which such public hearing shall from time to time be adjourned, the governing body shall hold a public hearing on the budget as submitted, at which all interested persons shall be given an opportunity to be heard, for or against the estimates of any item thereof. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 4: prior code § 11.25. Formerly 3.04.250)

3.04.250 Proposed budget—Hearing—Determination of time and place—Publication of notice.

At the meeting of the governing body at which the budget and budget message are submitted, the governing body shall determine the place and time of the public hearing on the budget, and shall cause to be published a notice of the place and time, not less than five days after date of publication, at which the governing body will hold a public hearing. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 3: prior code § 11.26. Formerly 3.04.260)

3.04.260 Proposed budget—Modification.

After the conclusion of the public hearing on the budget, the governing body may insert new items or may increase or decrease the items of the budget, except items in proposed expenditures fixed by law or prescribed by Sections 3.04.190(A), (B), (C) and (E). Where the governing body increases total proposed expenditures, it shall also increase the total anticipated revenue at least to equal such total proposed expenditures. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 5: prior code § 11.27. Formerly 3.04.270)

3.04.270 Budget amendments.

The governing body may amend the budget by resolution at any time during the fiscal year. In the case of biennial budgets, the budget officer shall review all expenditures and revenue and may suggest to the governing body any mid-year budget adjustments. Such report to the governing body shall generally be agendized no later than the first regular meeting of June. Mid-year budget amendments do not require public notice or a public hearing. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 6: prior code § 11.28. Formerly 3.04.280)

3.04.280 Budget—Vote required for adoption.

The budget resolution shall be adopted by the favorable votes of at least a majority of all members of the governing body. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 7: prior code § 11.29. Formerly 3.04.290)

3.04.290 Budget—Date of final adoption—Effect of failure to adopt.

The budget shall be finally adopted not later than the tenth day after the beginning of the budget year. Should the governing body take no final action on or prior to such day, the budget, as submitted, shall be deemed to have been finally adopted by the governing body. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 8: prior code § 11.30. Formerly 3.04.300)

3.04.300 Budget—Effective date—Certification—Distribution of copies.

Upon final adoption, the budget shall be in effect for the budget year. A copy of the budget, as finally adopted, shall be certified by the budget officer and the city clerk and filed in the office of the city clerk. The budget so certified shall be printed, posted online and otherwise reproduced and made available for the use of all offices, departments and agencies and for the use of interested persons and civic organizations. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 9: prior code § 11.31. Formerly 3.04.310)

3.04.310 Budget—Establishes appropriations.

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes therein named. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 3 § 10: prior code § 11.32. Formerly 3.04.320)

3.04.320 Supervision of expenditures—Generally.

As controller, the city finance manager shall supervise and be responsible for the disbursement of all moneys and have control over all expenditures and ensure that appropriations are not exceeded. The finance manager shall exercise financial budgetary control over each office, department and agency and shall cause separate accounts to be kept for the items of appropriations contained in the budget, each of which accounts shall show the amount of the appropriation, the amounts paid therefrom, the unpaid obligations against it and the unencumbered balance. Unless the finance manager certifies that there is a sufficient unencumbered balance of appropriation and available funds, no appropriation shall be encumbered and no expenditure shall be made. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 5 § 1: prior code § 11.34. Formerly 3.04.340)

3.04.330 Supervision of expenditures—Submission of work programs—Making of allotments.

The head of each office, department or agency shall submit to the budget officer, at the time required by him, a work program for the year, which program shall show the requested allotments of the appropriations for such office, department or agency for the entire budget year. The budget officer shall review the requested allotments in the light of the work program of the office, department or agency concerned, and may revise, alter or change such allotments before approving same. The aggregate of such allotments shall not exceed the total appropriation available to such office, department or agency for the budget year. The budget officer shall file a copy of the allotments with the finance manager, who shall authorize all expenditures for the offices, departments and agencies to be made from the appropriations on the basis of approved allotments and not otherwise. The approved allotment may be revised during the budget year in the same manner as the original allotment was made. If, at any time during the budget year, the budget officer ascertains that the available income, plus balances, for the year will be less than the total appropriations, he or she shall reconsider the work programs and allotments of the several offices, departments and agencies and revise the allotments so as to forestall the making of expenditures in excess of the income. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 5 § 2: prior code § 11.35. Formerly 3.04.350)

3.04.340 Transfers of appropriations.

The budget officer may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department or agency. At the request of the budget officer and within the last three months of the budget year, the governing body may by resolution transfer any unencumbered appropriation balance or portion thereof from one office, department or agency to another. No transfer shall be made from the appropriations required by Sections 3.04.190(A), (B) and (C). (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 5 § 3: prior code § 11.36. Formerly 3.04.360)

3.04.350 Contracts and expenditures by city departments, etc., prohibited—When.

No office, department or agency shall during any budget year, expend or contract to expend any money or incur any liability, or enter into any contract which by its terms involves the expenditure of money, for any purpose, in excess of the amounts appropriated for that general classification of expenditure pursuant to Sections 3.04.010 through 3.04.360. Nothing in this section contained, however, shall prevent the making of contracts or the spending of money for capital improvements to be financed in whole or in part by the issuance of bonds or other debt instruments, nor the making of contracts of lease or for services for a period exceeding the budget year in which such contract is made, when such contract is permitted by law. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 5 § 4: prior code § 11.37. Formerly 3.04.370)

3.04.360 Unused and unencumbered appropriations lapse at end of budget year.

All appropriations shall lapse at the end of the budget year to the extent that they shall not have been expended or lawfully encumbered. (Ord. 2014-012 § 1 (part), 2014: Ord. 274 Art. 5 § 5: prior code § 11.38. Formerly 3.04.380)