Article XII — FISCAL ADMINISTRATION

Section 1200. FISCAL YEAR.

The fiscal year of the City government shall begin on the first day of July of each year and end on the thirtieth day of June of the following year.

Section 1201. ANNUAL BUDGET. PREPARATION BY THE CITY MANAGER.

At such date as the City Manager shall determine, each board or commission and each department head shall furnish to the City Manager, personally, or through the Director of Finance, estimates of revenue and expenditures for his or her department or for such board or commission for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions as necessary, and may revise the estimates as he may deem advisable. (Amended November 7, 2000, filed by Secretary of State February 6, 2001.)

Section 1202. BUDGET. SUBMISSION TO CITY COUNCIL.

At least thirty days prior to the beginning of each fiscal year, the City Manager shall prepare and submit to the City Council the proposed budget. Upon receipt of the proposed budget, the City Council shall determine the time for the holding of a public hearing thereon and shall cause to be published a notice thereof not less than ten days prior to said hearing, by at least one insertion in the official newspaper. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. (Amended November 7, 1978, filed by Secretary of State, January 2, 1979: amended November 2, 1982, filed by Secretary of State, January 18, 1983.)

Section 1203. BUDGET. PUBLIC HEARING.

At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to heard shall be given such opportunity. (Amended November 7, 1978, filed by Secretary of State, January 2, 1979: amended November 2, 1982, filed by Secretary of State, January 18, 1983.)

Section 1204. BUDGET. FURTHER CONSIDERATION AND ADOPTION.

At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereto that it may deem advisable and on or before June 30 it shall adopt the budget with revisions, if any, by the affirmative votes of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. Copies thereof shall be filed with the City Manager, Director of Finance, City Treasurer, and the person retained by the City Council to perform the post audit function, and a further copy shall be placed, and shall remain on file, in the office of the City Clerk where it shall be available for public inspection. The adopted budget shall be available in a form so that copies are accessible to the public, and the form of availability shall be determined by the Finance Department and may include, without limitation, publishing the document on the City's website and/or distribution by use of electronic communication or media. (Amended June 3, 2014, filed by Secretary of State September 3, 2014.)

Section 1205. BUDGET. APPROPRIATIONS.

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named, provided, however, that the City Manager may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered.

At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council.

Section 1206. CENTRALIZED PURCHASING.

Under the control and direction of the City Manager there shall be established a centralized purchasing system for all City

departments and agencies, except as otherwise in this Charter provided. The City Manager shall recommend and the City Council shall consider and adopt by ordinance, rules and regulations governing the contracting for, purchasing, storing, and distribution of all supplies, materials, equipment and services required by any office, department or agency of the City government. (Amended November 6, 1990, filed by Secretary of State, February 19, 1991.)

(Section 1207 amended April 11, 1978, filed by Secretary of State, April 25, 1978; repealed November 7, 2000, filed by Secretary of State February 6, 2001.)

Section 1208. TAX PROCEDURE.

The procedure for the assessment, levy and collection of taxes upon property, taxable for municipal purposes, shall be prescribed by ordinance of the City Council.

If the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next preceding fiscal year shall thereupon be automatically adopted and a tax at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year.

Section 1208.1. CITY COUNCIL SPONSORED TAX PROPOSALS– 2/3 VOTE REQUIREMENT

Notwithstanding any conflicting provision of this Charter, no City Council sponsored proposal to impose, extend or increase a tax shall be presented at an election unless the ordinance or resolution proposing to impose, extend or increase such tax is approved by at least a two-thirds vote of the total members of the City Council. As used in this section, the term “tax” shall mean both a “general tax” and a “special tax” as defined in Article XIIIC, Section 1, subdivisions (a) and (d), respectively, of the California Constitution. (Added November 8, 2016, filed by Secretary of State February 17, 2017.)

Section 1209. BONDED DEBT LIMIT.

The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of fifteen percent of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City.

No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative votes of two-thirds of the electors voting on such proposition at any election at which the question is submitted to the electors and unless in full compliance with the provisions of the State Constitution and of this Charter.

Section 1210. REVENUE BONDS.

Bonds which are payable only out of such revenues as may be specified in such bonds may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of a majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the qualified electors of the City.

It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special fund was established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished.

Notwithstanding the foregoing, the City may sell and issue at any time and from time to time revenue bond anticipation notes (including renewal revenue bond anticipation notes) in anticipation of any electric or water revenue bonds heretofore or hereafter authorized by the voters; provided that (i) the aggregate principal amount of such electric revenue bond anticipation notes and the electric revenue bonds in anticipation of which such electric revenue bond anticipation notes were issued outstanding in accordance with their terms at any one time shall not exceed the principal amount of such electric revenue bonds authorized by the voters and (ii) the aggregate principal amount of such water revenue bond anticipation notes and the water revenue bonds in anticipation of which such water revenue bond anticipation notes were issued outstanding in accordance with their terms at any one time shall not exceed the principal amount of such water revenue bonds authorized by the voters. Such revenue bond anticipation notes may be sold, issued and secured in such manner and subject to such terms and conditions as the City Council may prescribe by ordinance; provided that such revenue bond anticipation notes shall not constitute an indebtedness or general obligation of the City of Anaheim and are not to be secured by the taxing power of said City.

Notwithstanding the foregoing, the City may also sell and issue at any time and from time to time revenue anticipation notes (including renewal revenue anticipation notes) in anticipation of the receipt of revenues of the City's water and electric utilities; provided that the aggregate principal amount of such revenue anticipation notes outstanding in accordance with their terms at any one time shall not exceed, for each of such utilities, an amount equal to 25% of the gross revenue earned by the respective utility during the immediately preceding fiscal year as set forth in the audited financial statements of such utility for such year. Such revenue anticipation notes may be sold, issued, and secured in such manner and subject to such terms and conditions as the City Council may prescribe by ordinance; provided that such revenue anticipation notes shall not constitute an indebtedness or general obligation of the City of Anaheim and are not to be secured by the taxing power of said City. (Amended November 2,

1982, filed by Secretary of State January 18, 1983; Amended June 3, 2014, filed by Secretary of State September 3, 2014.)

Section 1210.1. ELECTRIC AND WATER REFUNDING REVENUE BONDS.

Electric and water refunding revenue bonds may be issued to purchase, redeem or retire any bonds heretofore or hereafter issued pursuant to Section 1210 or this Section 1210.1, whenever the City Council determines that (1) costs of the City will be reduced by the refunding of any bonds, or (2) issuance of the refunding bonds will otherwise be financially advantageous to the City.

If as a result of the issuing of refunding bonds pursuant to this Section 1210.1, the water or electric utility of the City shall, in any Fiscal Year, realize a reduction in principal and interest on debt issued to finance such utility when the principal and interest paid on the refunding bonds in such Fiscal Year is compared to the principal and interest that would have been payable on the refunded bonds in such Fiscal Year, the City Council shall, not later than the last day of the next succeeding Fiscal Year, adjust rates of such utility, if necessary, to reflect fully such reduction in principal and interest payments as a reduction in costs of service of such utility.

All provisions of Section 1210 are applicable to refunding bonds, except that notwithstanding Section 1210 no additional election shall be required to authorize their issuance. (Amended June 2, 1981, filed in office of Secretary of State, July 20, 1981.)

Section 1211. CONTRACTS ON PUBLIC WORKS.

Except as hereinafter expressly provided, every contract involving an expenditure in excess of an amount as specified in Division 2, Part 3, Chapter 1, Article 4 of the Public Contracts Code of California as amended from time to time, or any successor provision thereto, for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, shall be let to the lowest responsible bidder after notice by publication in the official newspaper by two or more insertions, the first of which shall be at least ten days before the time for opening bids.

The City Council may reject any and all bids presented and may readvertise in its discretion.

The City Council, without advertising for bids if the total amount of the work is less than Fifty Thousand Dollars ($50,000), or after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the City Manager, the work in question may be performed better or more economically by the City with its own employees, and after the adoption of a resolution to this effect by the affirmative vote of a majority of the total members of the City Council, it may proceed to have said work done in the manner stated, without further observance of the provisions of this section. Such contracts likewise may be let without advertising for bids, if such work shall be deemed by the City Council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by resolution passed by the affirmative vote or at least two-thirds of the total members of the City Council.

Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City may be excepted from the requirements of this Section by the affirmative vote of a majority of the total members of the City Council.

The City Council may by ordinance establish procedures for the procurement of materials, supplies and equipment for use in the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds. (Amended November 2, 1976, filed by Secretary of State, December 27. 1976; amended November 7, 1978, filed by Secretary of State, January 2, 1979; amended November 3, 1992, filed by Secretary of State, December 21, 1992.)

(Sections 1212, 1213, 1214 and 1215 repealed November 7, 2000, filed by Secretary of State February 6, 2001.)

Section 1212. USE OF DESIGN-BUILD PROCUREMENT FOR PUBLIC WORKS PROJECTS.

Notwithstanding any provision to the contrary in the California Public Contracts Code, in Section 1211 of the Anaheim City Charter, or any other law or regulation of the State of California or the City of Anaheim, the use of design-build procurement by competitive negotiation is authorized. The City Council shall, by ordinance, establish regulations for the award, use and evaluation of such design-build contracts, in which the design and construction of public works projects are procured from a single entity. (Adopted by the voters at the November 2, 2010 General Municipal Election; filed with Secretary of State January 7, 2011.)

Section 1213. PROHIBITION OF AUTOMATED TRAFFIC ENFORCEMENT SYSTEMS (RED LIGHT CAMERAS).

No ordinance shall be adopted by the City Council which would permit or authorize any red light camera or other automated traffic enforcement system in the City of Anaheim. Any ordinance adopted by the City Council in violation of this section shall be null and void.

Neither the City Council, nor any officer or employee of the City when acting in his or her official capacity, shall (i) take any action which would directly or indirectly result in the authorization, approval or installation of any red light camera or other automated traffic enforcement system in the City of Anaheim; or (ii) acquiesce or concur in any action or decision of any other governmental agency or governmental official having jurisdiction concerning such red light cameras where a protest or objection procedure is available to the City and where failure to so protest or object could result in the authorization, approval, or installation of any red light camera or other automated traffic enforcement system in the City of Anaheim; or (iii) approve, authorize, execute or enter into any agreement or understanding, or take any other action of any nature whatsoever, which

would authorize, approve, or in any way facilitate or result in the installation of any red light camera or other automated traffic enforcement system in the City of Anaheim, including, but not limited to, any agreement or understanding relating to the installation of any red light camera or automated traffic enforcement system which would result in the receipt by the City of any revenue of any kind from such cameras or automated system.

The term “red light camera or other automated traffic enforcement system” as used in this section shall mean and include any automated traffic enforcement system, as that term is used in California Vehicle Code Section 21455.5, or any successor legislation thereto, which is used to enforce any provision of the California Vehicle Code. (Adopted by the voters at the November 2, 2010 General Municipal Election; filed with Secretary of State January 7, 2011.)

Section 1216. (LEFT BLANK INTENTIONALLY)

(Amended November 6, 1990, filed by Secretary of State, February 19, 1991; Repealed June 3, 2014, filed by Secretary of State September 3, 2014.)

Section 1217. (LEFT BLANK INTENTIONALLY)

(Amended November 3, 1992, filed by Secretary of State, December 21, 1992; Repealed June 3, 2014, filed by Secretary of State September 3, 2014.)

Section 1218. REGISTERING WARRANTS.

Warrants on the City Treasurer which are not paid for lack of funds shall be registered. All registered warrants shall be paid in the order of their registration when funds therefor are available and shall bear interest from the date of registration at such rate as shall be fixed by the City Council by resolution.

Section 1219. INDEPENDENT AUDIT.

The City Council shall employ at the beginning of each fiscal year, an independent certified public accountant who shall, at such time or times as may be specified by the City Council, at least annually, and at such other times as he or she shall determine, examine the books, records, inventories and reports of all officers and employees who receive, control, handle or disburse public funds and of all such other officers, employees or departments as the City Council may direct. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member, one to the City Manager, Director of Finance, Treasurer, and City Attorney, respectively, and sufficient additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public. The financial statement as of the close of the fiscal year shall be available in a form so that copies are accessible to the public, and the form of availability shall be determined by the Finance Director and may include, without limitation, publishing the document on the City's website and/or distribution by use of electronic communication or media. (Amended June 3, 2014, filed by Secretary of State September 3, 2014.)

Section 1220. SALE OF PUBLIC UTILITY.

No public utility now or hereafter owned or operated by the City shall be sold, leased or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative votes of at least two-thirds of the electors voting on such proposition at a general or special election at which such proposition is submitted.

Section 1221. UTILITY RATES.

The City Council shall establish rates, rules and regulations for the water and electrical utilities. The rates shall be sufficient with respect to each utility to pay:

(a) For operations and maintenance of the system.

(b) For payment of principal and interest on debt.

(c) For creation and maintenance of financial reserves.

(d) For capital construction of new facilities and improvements of existing facilities, or maintenance of a reserve fund for that purpose.

(e) For payments to the general fund of the City (exclusive of those amounts paid pursuant to subsection (a) of this Section 1221) in each fiscal year, in an amount equal to, or less than, four percent (4%) of the gross retail revenue earned by the utility during the previous fiscal year.

Rates shall be reviewed by the City Council periodically to insure that financial goals are being accomplished.

Rates shall be uniform for all consumers within the same class, but different rate schedules may be applied to different classes of consumers. Notwithstanding the foregoing, the City Council may establish, and revise from time to time, ratepayer discount and other programs to assist residential and non-residential customers in the payment of their utility bills and the costs of such discount and other programs may be paid from utility revenues. (Amended November 2, 1976, filed by Secretary of State December 27, 1976: amended November 6, 1990, filed by Secretary of State February 19, 1991.)

Section 1222. SALE OF MUNICIPAL PROPERTY.

Except as otherwise required by law applicable to a Charter City, the City Council may by ordinance or resolution authorize a method for the sale, transfer, exchange, or conveyance of title of municipal property, real or personal, by bid, auction, or negotiation for fair market value, as determined by the Purchasing Agent to be in the best interest of the City. (Amended November 7, 1978, filed by Secretary of State January 2, 1979; Amended June 3, 2014, filed by Secretary of State September 3, 2014.)