Alhambra Municipal Code Ch. 3.12 Budget Procedure

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

APPROPRIATION. An authorization granted by the Council to make expenditures and to incur obligations for specific purposes.

BUDGET. The plan of financial operation adopted by the Council embodying an estimate of authorized expenditures for the applicable fiscal year and the proposed means of financing them.

CAPITAL PROJECT. A public improvement such as a building, structure, bridge, or acquisition of real property.

CHARTER. The charter of the city of Alhambra.

COUNCIL. The City Council of the city of Alhambra.

DEPARTMENT. A department or agency of the city of Alhambra.

ENCUMBRANCE. An obligation in the form of a purchase order or a contract. Such obligation ceases to be an encumbrance when paid.

ESTIMATED REVENUE. All revenues from any source whatsoever for all funds anticipated to be collected during the fiscal year.

EXPENDITURES. Any charges incurred, whether paid or unpaid.

FISCAL YEAR. As set forth in Article XVIII, Section 121 of the charter, the FISCAL YEAR of the city shall commence on July 1 of each year and shall end on June 30 of the following year.

PROPOSED BUDGET. The plan of financial operation for the next fiscal year submitted by the City Manager to the Council for its consideration.

UNAPPROPRIATED SURPLUS. That portion of a given fund which is not segregated for specific purposes. It can include (but is not limited to) unallocated funds from previous years and revenues received in excess of estimated revenues and require-ments.

UNENCUMBERED APPROPRIATION. That portion of an appropriation not yet expended or encumbered.

UNFUNDED LIABILITY. Either an ongoing or one time only obligation for which insufficient or no assets have been set aside to cover the current and/or future cost incurred to retire such obligation.

('86 Code, § 3.12.010) (Ord. 3552, passed - - ; Am. Ord. 4196, passed - - )

The purpose of this chapter is to establish procedures for the preparation and administration of the city's budget. These procedures include estimates of the services, activities and projects comprising the budget; the resultant expenditure requirements; and the resources available for the budget. Its provisions are intended to enable the Council to make financial plans, to insure that all officials administer their respective functions in accordance with these plans, and to permit taxpayers and investors to form intelli-gent opinions based on sufficient information as to the financial policies and administration of the city. For the accomplishment of this purpose, the pro-visions of this chapter shall be broadly construed.

('86 Code, § 3.12.020) (Ord. 3552, passed - - )

This chapter shall apply to both annual and long-term budgets and to all departments and agencies of the city.

('86 Code, § 3.12.030) (Ord. 3552, passed - - )

(A) The City Manager shall submit to the Council on or before May 31 of each year a proposed budget. The preparation and submission of the proposed budget shall follow a budget calendar as prepared by the City Manager. For such purpose and at such date as he determines, he shall obtain from the head of each department estimates of revenues and expenditures of that department. The proposed budget shall include:

(1) The City Manager's budget message;

(2) A summary by funds;

(3) Schedules of expenditures by function and program; and

(4) Schedules of revenues by source.

(B) Provisions shall be made in the proposed budget for the following:

(1) Interest, amortization and redemption charges on the public debt for which the faith and credit of the city is pledged;

(2) Other statutory expenditures;

(3) The payment of all judgments;

(4) Administration, operation and main-tenance of the city;

(5) Expenditures to be appropriated for the capital outlay improvement fund for capital projects in an amount not less than five cents on each $100 of the assessed valuation of the city.

('86 Code, § 3.12.040) (Ord. 3552, passed - - )

The City Manager shall review, analyze and make recommendations with respect to the public library budget in the same manner as for any other city department.

('86 Code, § 3.12.050) (Ord. 3552, passed - - )

The proposed budget as submitted by the City Manager shall be a public record in the office of the City Clerk open to public inspection.

('86 Code, § 3.12.060) (Ord. 3552, passed - - )

At the meeting of the Council at which the proposed budget is submitted, the Council shall determine the place and time of a public hearing on the proposed budget, and shall cause to be published once in the official city newspaper a notice of such place and time, not less than five days after date of publication, at which the public hearing will be held.

('86 Code, § 3.12.070) (Ord. 3552, passed - - )

The Council shall hold the public hearing on the proposed budget at the time and place so advertised, or at any time and place to which such public hearing shall from time to time be adjourned.

('86 Code, § 3.12.080) (Ord. 3552, passed - - )

The Council shall consider the proposed budget and make revisions it may deem advisable except as to expenditures fixed by law or as limited by the provisions of this chapter; provided, however, that where the Council shall increase the total proposed expenditures, the increase shall be balanced by estimated revenues or other available resources.

('86 Code, § 3.12.090) (Ord. 3552, passed - - )

The budget for the ensuing fiscal year shall be adopted by the Council by resolution.

('86 Code, § 3.12.100) (Ord. 3552, passed - - )

The budget for the ensuing fiscal year shall be adopted not later than June 30 prior to the beginning of the budget year. Should the Council fail to adopt the budget on or before such day, the proposed budget as submitted by the City Manager or as there-after duly amended by the Council shall constitute an appropriation as to all expenditures proposed therein, except capital outlays, until further action by the Council.

('86 Code, § 3.12.110) (Ord. 3552, passed - - )

Upon adoption, the budget shall be in effect for the applicable fiscal year.

('86 Code, § 3.12.120) (Ord. 3552, passed - - )

A copy of the budget, as adopted, shall be filed in the office of the City Clerk. The Director of Finance shall cause the budget to be printed or dupli-cated in order that copies thereof shall be available for the use of all departments and for the use of interested persons.

('86 Code, § 3.12.130) (Ord. 3552, passed - - )

Except as provided in § 3.12.170 hereof, the Director of Finance shall supervise and be responsible for the disbursement of all moneys and have control over all expenditures and insure that all appropriations are not exceeded. He or she shall exercise budgetary control over the appropriations. No expenditure or encumbrance may be made unless he or she has certified that there is a sufficient unencumbered balance in the proper appropriation.

('86 Code, § 3.12.140) (Ord. 3552, passed - - ; Am. Ord. 4196, passed - - )

(A) For the purpose of this section, the following definition shall apply:

EXPENDITURE CATEGORY. Personnel, services and supplies, and capital outlay.

(B) The City Manager may transfer unencumbered appropriations between departments and divisions within a fund. Any such transfers for services and supplies and for capital outlay may either remain within the same expenditure category or be transferred between the two expenditure categories. Any such transfers for personnel must remain within that expenditure category. Transfers between funds, or a transfer from unappropriated surplus, shall be subject to the approval or ratification by the City Council.

(Ord. 4396, passed 7-10-00; Am. Ord. 4429, passed 7-8-02)

All appropriations shall lapse and be returned to unappropriated surplus at the end of the budget year to the extent that they shall not have been expended, lawfully encumbered, or placed in a reserve.

('86 Code, § 3.12.160) (Ord. 3552, passed - - )

The Council hereby finds and determines that historically the city's financial position has not made nor will make it possible to fully fund all of its liabilities over a given period of time. However, in the interests of prudent and efficient governmental operation and in recognition of sound and acceptable accounting procedures, any new unfunded obligation or the expansion of any existing unfunded obligation shall be presented to the Council for its consideration and appropriate action as either an agenda item at a regular or adjourned regular Council meeting or in a closed session in the event such proposed unfunded obligation is a matter which is so protected by the Brown Act (Cal. Gov't Code §§ 54950 et seq.).

('86 Code, § 3.12.170) (Ord. 4196, passed - - )