CHAPTER 4. FISCAL ADMINISTRATION

Article 1. Budget

2-4.101 Budget Cycle; Preparation.

In accordance with the time frame set forth herein, the City shall operate on a two (2) year budget cycle comprising two (2) fiscal years. Except for fiscal year 2021, the budget cycle shall begin on the first day of July of odd-numbered years and shall continue through the thirtieth day of June of the subsequent odd-numbered year. For fiscal year 2021 only, the budget cycle shall begin on the first day of July of 2020 and shall continue through the thirtieth day of June of 2021. The City shall adopt a one (1) year budget prior to commencing the 2020-2021 budget cycle to guide the City's expenditures during the one (1) year budget cycle. Thereafter, the City shall adopt a two (2) year budget prior to commencing each two (2) year budget cycle that shall guide the City's expenditures during the following two (2) year budget cycle. All budget estimates shall be compiled in such detail and in such form as is required by the City Manager. The City Manager shall submit a consolidated budget to the Council, with recommendations thereon, at a date not later than the first regular Council meeting in June of odd-numbered years, except that the budget for year 2020-2021 shall be submitted at a date not later than the first regular Council meeting in June of 2020.

A financial audit of all accounts shall be performed by an independent certified public accountant at the conclusion of each fiscal year, for a total of two (2) financial audits per budget cycle with the exception of the one (1) year budget cycle during year 2020-2021, which shall have one (1) financial audit only. This audit shall include all City entities. (§1, Ord. 1683, eff. 4/88; §2, Ord. 2202, eff. 1/3/20)

2-4.102 Adoption.

After a public hearing, according to the time frame of Section 2-4.101, the Council shall adopt a budget for the operation of the City. Such budget shall include the estimated receipts and expenditures of all public funds, except those which are trust funds, from whatever source they are derived. (2301 as amended by §1, Ord. 1364, eff. August 4, 1978)

2-4.103 Contingent Account.

The budget may contain a contingent account which shall read as follows: "The Contingent Account of the City shall be expended only on written authorization of the City Manager for items for which no provision, or insufficient provision, has been made by the appropriations therein contained in the budget. Expenditures from the Contingent Account shall be reported monthly to the Council." (2302)

2-4.104 System of Accounts.

All City accounts shall be kept in the form prescribed by the budget. (2303)

2-4.105 Expenditures.

All expenditures made on behalf of the City, directly or through any agency, except those required to be made by State law, shall be in accordance with the authorization contained in the appropriation ordinances or resolutions. (2304)

2-4.106 Unencumbered Balances.

The necessary accounting records shall be maintained to reflect the unencumbered balances of all appropriations. In determining the unencumbered balances of appropriations, the estimated amounts of commitments for goods or services ordered, but not paid for, shall be taken into consideration. (2305)

2-4.107 Redistribution of Appropriations.

The Director of Finance, upon written authorization of the City Manager, may redistribute budgeted appropriations within a department or division but shall not make transfers of appropriations from one department to another without the approval of the Council. (2306)

Article 2. Claims Against the City

2-4.201 Approval.

The Director of Finance shall prepare warrants on the City treasury for the payment of claims against the City when such claims have been legally and properly established, as provided in this article, or have been approved by an affirmative vote of at least three (3) members of the Council, or the City Attorney as provided in this article, provided there is sufficient money in the City treasury to pay such warrants and a sufficient unencumbered balance in the appropriation chargeable therewith.

Claims for transportation expenses and allowances submitted in connection with traveling on official business shall be allowed by the Director of Finance only when such claims are submitted in conformity with the rules and regulations established for that purpose. (2320)

2-4.202 Examination.

The Director of Finance shall examine all payrolls, bills, claims and other demands against the City and shall issue no warrant for payment unless the claim is in proper form, correctly computed and approved by him, is legally due and payable, an appropriation has been made therefor which has not been exhausted, and unless there is sufficient money in the City treasury to make payment. (2321)

2-4.203 Payment.

Director of Finance may pay claims for which appropriations have previously been made, when the claim was incurred by purchase order, as provided in this chapter, or by agreement approved by the Council, or upon recommendation of the City Attorney when the claim does not exceed Two Hundred Fifty and no/100ths Dollars ($250.00). No other claims shall be paid without approval of the Council. The Director of Finance shall personally sign an approval of all claims paid, and a monthly report of such payments shall be made to the Council. (2322)

2-4.204 Creation of Debts.

Neither the Council nor any officer or employee of the City shall create, audit, allow or permit to accrue any debt or liability for any purpose in excess of the available monies in the treasury legally apportioned or appropriated for that purpose. (2323)

2-4.205 Itemization and Verification.

All claims against the City, other than those authorized by the Council, departments or executive officers thereof, shall be itemized and verified under oath, before any officer duly authorized to administer oaths, before the same are filed with the City Clerk. The City Clerk is hereby authorized to administer the oath hereby required. (2324)

2-4.206 Claims for Money or Damages.

Claims against the City of Walnut Creek for money or damages which are exempted by Government Code Section 905 of Chapter 1 and Chapter 2 of Part 3 of Division 3.6 from Title 1 of the Government Code of the State of California, and which are not governed by any other statutes or regulations expressly related thereto, shall be governed by this section. A claim relating to such a cause of action shall be presented not later than one year after the accrual of the cause of action. Such claims shall be presented and processed as provided by Chapter 1 and Chapter 2 of Part 3 of Division 3.6 of Title 1 of the Government Code insofar as said provisions are not in conflict with this section.

Pursuant to Chapter 5 of Part 3 of Division 3.6 of Title I of the Government Code, written agreements entered into by or on behalf of the City of Walnut Creek may provide all claims arising out of or related to the agreement must be presented not later than six (6) months after the accrual of the cause of action, and such claims shall be governed by the provisions of this section.

No suit for money or damages may be brought against the City of Walnut Creek until a written claim therefor has been presented to the City Council and has been acted upon, or has been deemed to have been rejected by the City Council in accordance with this section. (§1, Ord. 1694, eff. 9/16/88)

Article 3. Deposit of Funds

2-4.301 Deposit of Funds.

All money collected by agencies of the City shall be deposited with the Director of Finance as provided by administrative order.

Article 4. Liens.

2-4.401 Cancellation of Accounts Receivable and Refunds of Erroneous Payments.

The Director of Finance may, on approval of the City Manager, cancel any account receivable except bills which may become a lien against property or taxes, but shall report such cancellations to the Council. Taxes or bills which may become a lien against property may be cancelled only when on written, formal claim by the owner, when supported by substantial evidence of its propriety, and approved by the Council.

Any refunds of overpayments or erroneous payments, except lienable bills, may be made by the Director of Finance with the approval of the City Manager; provided, however, that trust fund refunds may be made on approval of the department in charge of deposits in such funds. Refunds of bills which may become a lien against property shall be made only after approval by the Council of written, formal claim supported by substantial evidence. (2308)