Chapter 3.02 — BUDGET PREPARATION AND ADOPTION PROCEDURES

A.

"Budget Year or Fiscal Year" means the fiscal year for which a budget is made. "Fiscal Year" begins on July 1 of one year and ends twelve (12) months later at June 30 of the next year.

B.

"City Council" means he legislative body of the City of Clayton.

C.

"City Manager" means the City Manager is the Chief Executive Officer of the City.

D.

"Finance Officer" means a non-exempt City employee position; or the City Manager if the position is unfilled.

E.

"City Treasurer" means appointed by the City Council and serves as set forth in Resolution No. 107-88 job description.

F.

"City Clerk" means a position within the Competitive (Merit) Service with the City of Clayton.

(Ord. 297, 1992)

A.

Purpose. The fiscal year budget is adopted by the City Council and represents its plan for funding City services. This chapter sets forth standard procedures for preparation, enactment and administration of the budget and places responsibility for tasks related thereto. Its provisions are intended to enable the City Council to make sound financial decisions for current and projected operational, debt, and capital expenditures; to ensure that executive staff and other City personnel involved administer their respective functions in accordance with the adopted standards; and to provide Clayton taxpayers and investors with adequate information and insight into the financial affairs of the City.

B.

Powers and Duties. Within the provisions and for the purpose of this chapter, officers and employees shall have the power and be subject to the duties expressly stated or necessarily implied herein.

(Ord. 297, 1992)

A.

Finance Sub-Committee. The Mayor, with the concurrence of the City Council, shall appoint two (2) Council Members to serve as the Finance Sub-Committee of the City Council. The term of the Council Finance Sub-Committee shall be one year, commencing with the yearly reorganization of the City Council. The Council Finance Sub-Committee shall work with the City Manager to review budget format, assumptions and analysis, for recommendation to the full City Council.

B.

Budget Calendar. To ensure that the goal of adopting an annual fiscal year budget is achieved prior to the beginning of a fiscal year, a budget calendar, identifying critical tasks and establishing all key dates in the preparation of the budget shall be developed by the City Manager and presented for City Council approval by the end of January each year.

C.

Budget Content. The City budget content shall provide information and level of detail which each local official, both executive and legislative, needs to analyze budget requests effectively; to monitor and control the provision of local services in conjunction with the budget; and to evaluate performance. The complete budget will include historical actuals for the prior year and appropriated budget figures for the current year; available funding and revenue projections; estimated expenditures; and inter-fund transfers for all City operations and/or all activities for which the City has a fiduciary responsibility. The budget will be presented in a format approved by the City Council. In addition to the budget, additional documentation will be prepared to analyze, interpret, and clarify the budget.

D.

Budget Transmittal. The City Manager shall prepare a budget transmittal generally describing the key elements of the budget, outlining relevant financial policies for the fiscal year; and describing any important or significant changes from the current year.

E.

Budget, A Public Record. The proposed budget, budget transmittal and all supporting schedules shall be a public record in the office of the City Clerk, open to public inspection by anyone. Ten (10) copies will be available for examination or loan. Copies will also be available at cost to any interested party.

(Ord. 297, 1992)

A.

Prior to submittal of the City Manager's Budget to the full City Council, the Finance Sub-Committee will meet at least once to review the documentation.

B.

Public Hearing On Budget. Upon submittal of the City Manager's transmittal and budget, the City Council shall determine the place and time of the public hearing(s) on the budget; the City Clerk shall cause to be posted a notice of the place(s) and time(s) not less than ten (10) days before the public hearing(s).

At the time(s) and place(s) so advertised, or at anytime and place to which such public hearing(s) shall from time to time be adjourned, the City Council shall hold public hearing(s) on the budget, as submitted, at which all interested persons shall be given an opportunity to be heard regarding all aspects of the budget.

C.

Further Consideration of Budget. In conjunction with such public hearing(s), the City Council may insert new items or may increase or decrease the times of the budget, except items or proposed expenditures fixed by law.

D.

Adoption Of Budget. The budget shall be adopted by a resolution receiving the favorable votes of at least a majority of all the members of the City Council.

E.

Date Of Final Adoption. It shall be the goal of the City to adopt the annual budget prior to the start of the new fiscal year. Should that not occur, the City Council shall adopt a resolution setting forth expenditure policies until such time as a final budget is adopted by a majority vote of all members of the City Council. In any case, the final budget shall be adopted no later than sixty (60) days following the close of a fiscal year for the budget year then in progress.

F.

Effective Date of Budget, Certification, 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 City Clerk and filed in the City Office. The certified budget shall be distributed pursuant to legal requirements, operational needs, and public use.

G.

Budget Establishes Appropriations. From the effective date of the budget, the proposed expenditures shall be appropriated to the several objects and purposes therein named, and available pursuant to the policies in Section 3.02.050 and 3.02.060.

(Ord. 297, 1992)

A.

Budgetary Control. The City Manager shall administer the financial affairs of the City consistent with the budget as approved by the City Council. All expenditures will be made according to Ordinance No. 296, or as amended, and approved purchasing policies, and will be monitored by the City Manager. Each department manager will be responsible to supervise expenditures from his/her department, and to monitor the status of budget balances. The Finance Department will monitor revenues and expenditures and report balances monthly.

B.

Transfer Of Appropriations. The City Manager is authorized to transfer appropriations between object accounts within individual departments or budget organizations, as long as the total appropriation does not exceed the original total appropriation for that department/organization. Any transfer of appropriation between departments must be approved by the City Council.

C.

Increase In Appropriations. Any increase in the total appropriation for each fund must be approved in advance by the City Council and will require approval of funding sources not allocated in the original budget.

D.

When Contracts and Expenditures Are Prohibited. 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 not properly appropriated pursuant to this ordinance. Any contract, verbal or written, made in violation of this ordinance shall be null and void.

E.

Mid-Year Budget Review. During the sixth month of the fiscal year, the Finance Sub-Committee and staff shall review the budget to determine the need for adjustments to balances, revenues and expenditures. Following the review and study, and if deemed necessary, a revised budget shall be prepared for submission to the City Council.

The City Clerk shall cause a public hearing(s) to be scheduled before the City Council as set forth in Section 3.02.040, subsection A. Adoption of the Mid-Year Budget shall be by a resolution receiving favorable votes of at least a majority of all the members of the City Council.

F.

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. 297, 1992)

A.

Emergency Appropriations. At any time in any budget year, the City Council may approve by resolution an emergency appropriation to meet a pressing need for public expenditure, or other than regular or recurring requirement, to protect the public health, safety or welfare.

If an emergency appropriation is needed that exceeds the cash resources of the City, the City Council may authorize the borrowing of the needed funds from an appropriate financial institution to satisfy the emergency. Any such emergency loan shall be retired at the earliest practical date.

(Ord. 297, 1992)

The Finance Officer, within fifteen (15) days after the end of each month during the fiscal year, shall report all revenue and expenditure activity and budget balances to the City Council.

(Ord. 297, 1992)

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or application of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.

(Ord. 297, 1992)