CHAPTER XII
FINANCE ADMINISTRATION
Section 12.1 Fiscal Year.
Unless otherwise provided by ordinance, the fiscal year of the City and of all its agencies shall begin on the first day of January and end on the last day of December of each year.
Section 12.2 Budget Proposal and Message.
a. No later than forty-five (45) days prior to any date required by State law for certification to the County of the ad valorem tax levy for the ensuing year, the City Manager shall prepare and submit to the Council a recommended budget for the next fiscal year and shall include therein at least the following information:
(1) Detailed estimates, with his supporting explanations, of all proposed expenditures for each department, office and agency of the City, including the Municipal Court and Council.
(2) Detailed estimates of all anticipated revenue of the City from all sources including bond issues, if any, for the ensuing fiscal year, including his estimate of revenue needed from the ad valorem taxes to meet estimated expenditures of the City.
(3) Comparative figures showing the actual expenditures and revenues for corresponding items and sources for the preceding fiscal year in full and for the current fiscal year up to the last day of the month preceding the month in which the recommended budget is submitted, and estimated expenditures and revenues for corresponding items and sources for the balance of the current fiscal year.
(4) Statements of the bonded and other indebtedness of the City, showing the debt redemption and interest requirements, the debt authorized and unissued, and the condition of any Capital Expenditure Funds and Special Funds.
(5) A statement of the estimated balance, including any unappropriated surplus, for the end of the current fiscal year.
(6) A statement of the estimated deficiency, if any, for the end of the current fiscal year.
(7) Such other supporting information as the City Manager deems desirable or the Council may request.
b. As part of the proposed budget, the City Manager shall also present his budget message.
Section 12.3 Budget Message.
The budget message shall contain the recommendations of the City Manager concerning the fiscal policy of the City; a description of the important features of the budget plan; an explanation of all major increases or decreases in budget recommendations as compared with prior years; an estimate of the cash surplus in each fund at the end of the current fiscal year, or of the deficit in each fund to be made up by appropriation; and the balance between the total estimated expenditures and total anticipated revenue from all sources, taking into account the estimated surpluses or deficits in the various funds.
Section 12.4 Schedule of Capital Outlay.
If requested by Council, the City Manager shall submit to the Council recommended capital outlay expenditures for the ensuing fiscal year.
Section 12.5 Budget Notice and Hearing.
A public hearing on the proposed budget shall be held before its final adoption at such time and place as the Council shall direct. Notice of such public hearing and notice that the proposed budget is on file in the office of the Clerk shall be published in a newspaper meeting the requirements of Section 19.5, at least one (1) week in advance of the hearing. The complete proposed budget shall be on file for public inspection during office hours at such office for a period of not less than one (1) week prior to such hearing.
Section 12.6 Council Action on Budget.
a. AMENDMENT BEFORE ADOPTION. At the conclusion of the public hearing the Council may adopt the budget with or without amendment. In amending the budget, it may add or increase programs or amounts and may delete or decrease any programs or amounts, except expenditures required by law applicable to Home Rule Cities or expenditures for debt service or for estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to any amount greater than the total of estimated revenue.
b. ADOPTION OF BUDGET. The Council shall adopt the budget by resolution at least five (5) working days before the final day established by law for the certification of the ensuing year’s tax levy to the County. Provided, however, that notwithstanding the provisions of Section 5.5, passage of this resolution shall require the affirmative vote of a majority of the entire Council in office at the time the vote is taken. If Council fails to adopt the budget by said date, the amounts appropriated for each City fund for the current fiscal year shall be deemed appropriate for each City fund for the ensuing fiscal year.
c. APPROPRIATION AND TAX LEVY. Adoption of the budget shall constitute appropriation of the amounts specified therein to the City funds indicated and constitute a levy of the ad valorem tax therein set forth.
d. CERTIFICATION OF TAX LEVY. Upon taking final action on the budget as provided in this Section, the Council shall cause the total tax levy to be certified to the appropriate authorities as provided by law.
Section 12.7 Budget Contents.
a. The budget shall provide a complete financial plan of all City Funds and activities for the ensuing fiscal year and, except as required by law applicable to Home Rule Cities or by this Charter, shall be in such form as the City Manager deems desirable or the Council may require. In adopting the budget, the Council shall adopt the most feasible combination of expenditure classification by and, organization unit, program, activity, and object.
b. The budget shall include the following unless otherwise provided by ordinance:
(1) Anticipated revenue including unappropriated surplus and ad valorem tax revenues appropriated as to three (3) separate City funds; namely, the General Fund, Street Fund and Debt Service Fund, except, however, as part of the adoption of the budget, Council may provide an appropriation for a Contingency Fund.
(a) Unappropriated surplus for purposes of this Section means the amount by which revenues are expected to exceed liabilities and the encumbrances at the beginning of the ensuing fiscal year.
(2) Proposed expenditures for current operations during the ensuing fiscal year, detailed by offices, departments and agencies, in terms of their respective work programs, but classified under three separate City funds; namely, General Fund, Street Fund and Debt Service Fund, except however, as part of the adoption of the budget. Council may establish a separate City fund called a Contingency Fund.
(3) The General Fund shall comprise all revenues of the City not specifically belonging to any other fund. All general functions of the City shall be financed by expenditures from the General Fund, unless, provided otherwise by ordinance.
c. The budget shall include:
(1) A reasonable provision for contingencies as permitted in Section 12.12.
(2) Required expenditures for debt service, judgments and statutory expenditures applicable to Home Rule Cities.
d. The total of proposed expenditures and provisions for contingencies shall not exceed the total of estimated revenue.
Section 12.8 Budget — A Public Record.
Copies of the budget and the capital program, if any, as adopted, shall be public records and shall be made available to the public in the Office of the City Clerk.
Section 12.9 Amendments to Budget After Adoption.
a. SUPPLEMENTAL APPROPRIATIONS. If during the fiscal year the Manager certifies that there are available for appropriation, revenues in excess of those estimated in the budget, the Council, by ordinance, may make supplemental appropriations for the year not exceeding the amount by which the actual and anticipated revenues will apparently exceed the estimated expenditures provided for in the budget, except, however, this Section shall not be construed to, limit emergency appropriations under the provisions of Section 12.9, subsection d.
b. REDUCTION OF APPROPRIATIONS. At the beginning of each monthly period during the fiscal year, and more often if required by the Council, the City Manager shall submit to the Council data showing the relation between the estimated and actual expenditures to date, and the relation between the estimated and actual revenues to date; and if it shall appear that a reduction in appropriations is necessary, the Council may, by resolution, reduce appropriations, except amounts required for debt and interest charges, judgments, and required statutory expenditures for Home Rule Cities, to such a degree as may be necessary to keep expenditures within the revenues.
c. TRANSFER OF APPROPRIATIONS. At any time during the fiscal year the City Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office or agency, and upon request of the City Manager, the Council may, by motion or resolution, upon affirmative vote of a majority of Council members present, transfer part of all of any unencumbered appropriation from one department, office agency, or object to another within the same City Fund and further upon request of the City Manager, the Council, by ordinance, unless otherwise prohibited by the Charter, may transfer part or all of any unencumbered appropriation balance from one City fund to another City fund.
d. EMERGENCY APPROPRIATIONS. To meet a public emergency affecting life, health, property, or the public peace, the Council may make emergency appropriations. Such appropriations shall be made by emergency ordinance in accordance with the provisions of Section 5.4. To the extent that there are no available revenues to meet such appropriations, the Council may, by emergency ordinance, authorize the issuance of short-tern notes as provided in Section 14.2, which may be renewed from time to time, but the emergency notes and renewals of any fiscal year shall be paid not later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made.
e. LIMITATION ON AMENDMENTS TO APPROPRIATIONS. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. (Ord. 2022-1 § 3)
Section 12.10 Lapse of Appropriation.
Every appropriation, except an appropriation for a Capital Expenditure Fund or Special Fund, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered, unless otherwise provided by ordinance. An appropriation for a Capital Expenditure Fund or Special Fund shall continue in effect until the purpose for which it has been made has been accomplished or abandoned or it is transferred as permitted in Section 12.11.
Section 12.11 Capital Expenditure Funds and Special Funds.
a. The Council may, by ordinance, provide for Capital Expenditure Funds and Special Funds to provide for monies held in trust for depreciation and obsolescence of structures, machinery and equipment, for debt service, for capital improvements and for local improvements.
b. Subject to the provisions of Chapter XV, the Council shall have the power to define the rules and regulations pertaining to such funds.
c. Unencumbered balances from projects accomplished or abandoned shall be transferred to other City funds by ordinance.
d. Subject to the provisions of Chapter XV, and as permitted in Section 12.9, subsection c, any unencumbered balance in funds created under authority of this Section may be transferred by the Council to any other fund, and likewise Council may transfer any unencumbered balance from any other fund to any fund created under authority of this Section.
Section 12.12 Contingency Expenditures.
a. The Council may provide in its budget for reasonable Contingency Accounts in any of the City funds, with the exception of the Debt Service Fund; and Council, by ordinance, may establish a separate fund to be known as the Contingency Fund, if good reason exists therefor.
b. Monies in any Contingency Account may be used within the same City fund upon recommendations of the City Manager and approval of the Council given by motion or resolution passed by majority vote of the Council members present at the time the vote is taken and shall not be transferred to another City fund without recommendation of the City Manager and approval of the Council given by ordinance as required in Section 12.9, subsection c.
c. Monies in any Contingency Fund shall not be transferred or used without recommendation of the City Manager and Council approval given by ordinance.
d. Funds from any Contingency Account or Contingency Fund shall only be used for expenditures which could not have been readily foreseen at the time the budget was adopted, but it shall not be necessary for Council to find a public emergency exists as provided in Section 12.9, subsection d, prior to use of such funds. (Ord. 2022-1 § 3)
Section 12.13 Budget Control — Limitation on Expenditures.
a. Except for purposes which are to be financed by the issuance of bonds or for the making of any contract or lease providing for payments beyond the fiscal year, or by special assessment for other purposes not chargeable to a budget appropriation, no money shall be drawn from funds of the City except in accordance with an appropriation thereof, nor shall any obligation for the expenditure of money be incurred without an appropriation covering all payments which will be due under such obligation in the current fiscal year, provided herein and emergency appropriations may be made as provided in Section 12.9, subsection d.
b. Expenditures shall not be charged directly to a Contingency Account or Fund. Instead, the necessary part of the appropriation from the Contingency Account or Fund shall be transferred to the logical account and the expenditure then charged to such account.
Section 12.14 Investments.
Subject to the provisions of this Charter, monies remaining in any fund which the City Treasurer and City Manager may determine will not be required to be disbursed for a period of thirty (30) days or more thereafter, may, in the discretion of the City Treasurer with the approval of Council, be invested in one or more of the securities or other evidences of investment permitted by ordinance or resolution of the Council. Interest on such investments shall be credited to the fund to which the invested money belongs, if such can be determined, otherwise to the General Fund of the City.
Section 12.15 Independent Audit — Annual Audit.
The Council shall provide for an independent annual audit of all City accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a Certified Public Accountant or firm of such accountants, experienced in municipal accounting, and who have no personal interest, direct or indirect, in the fiscal affairs of the City or any of its officers. The Council may designate such accountant or firm annually or for an indefinite period to serve at the pleasure of the Council, provided that the designation for any particular fiscal year shall be made no later than thirty (30) days after the beginning of such fiscal year.
Section 12.16 Copies of Audit.
Copies of such audit and annual report shall be made available for public inspection at the Office of the City Clerk.