Coachella Municipal Code Ch. 4.04 Fiscal Control

The purpose of this chapter, to be known as the "Fiscal Control Ordinance of the City of Coachella, California," is to provide for a system of financial administration, accounting, fiscal and budgetary control which conforms to generally accepted accounting practices.

(Prior code § 2-144)

Definitions applicable to this chapter will be based on the standard definitions accepted by the Government Finance Officers Association with some modifications made to simplify such definitions.

(Prior code § 2-145)

The fiscal year shall begin on July 1 and shall end on June 30.

(Prior code § 2-146)

An annual budget will be adopted by the city council prior to the first day of the fiscal year. However, if for good and sufficient reasons the budget cannot be adopted by the first day of the fiscal year, the budget shall be adopted not later than forty-five (45) days subsequent to the beginning of the fiscal year. If the budget is not adopted prior to the beginning of the fiscal year, a resolution authorizing the continuation of necessary and essential expenditures to operate the city shall be adopted prior to the beginning of the fiscal year. The proposed budget shall be prepared by the city manager and transmitted to members of the city council for its review a minimum of forty-five (45) days before the required date of adoption. The budget as adopted shall be a balanced budget with anticipated revenues (including appropriated unencumbered surplus) equal to appropriated expenditures. All funds within the budget shall also be balanced.

(Prior code § 2-147)

No expenditure in any fund shall be legal or proper unless appropriations adequate to meet the expenditure have been made in the budget. Purchases shall be made only after bona fide competitive bidding and bids shall be awarded to the lowest and best bidder. Purchases in excess of fifty thousand dollars ($50,000.00) shall be on the basis of sealed bids.

(Prior code § 2-148)

At the time the proposed budget is transmitted to members of the city council by the city manager, a copy of the proposed budget shall be made available for public inspection during regular office hours in the office of the city clerk.

(Prior code § 2-149)

No earlier than seven days after the proposed budget is transmitted to members of the city council and no later than the time that the budget is adopted by the city council, a public hearing shall be held to give the public the opportunity to comment upon the proposed budget. Notice of such public hearing shall be given in a newspaper of general circulation in the municipality no more than twenty (20) days and no less than five days in advance of the hearing.

(Prior code § 2-150)

The adoption of the budget shall be accomplished by the approval of a budget resolution, which specifies the anticipated revenues by appropriate categories and the appropriated expenditures for each department and each nondepartmental expense and for each fund covered by the budget. Amendments to the budget shall be approved by resolution.

(Prior code § 2-151)

Any increase in appropriation in a departmental budget or in a nondepartmental expense category, whether accomplished through a change in anticipated revenues or through a transfer of appropriations among departments and nondepartmental expenses, shall require the approval of the city council in the form of an amendment to the budget resolution. The transfer of appropriations among the various accounts within a departmental budget or within a nondepartmental expense category shall only require the approval of the city manager, except that any transfer of appropriations within the departmental budget so as to increase the salary appropriation for the purpose of employing additional personnel shall require the approval of the city council.

(Prior code § 2-152)

No appropriation shall be made from a sinking fund or debt retirement fund until all legal obligations and requirements of such fund have been satisfied.

(Prior code § 2-153)

The city manager shall present the statement of anticipated revenues on the basis of the ordinary and reasonable revenues that can be expected for the fiscal year. Property tax revenue estimates shall be based upon the county of Riverside statement of original charge.

(Prior code § 2-154)

All appropriations which are not obligated, encumbered or expended at the end of the fiscal year shall lapse and shall become a part of the unencumbered fund balance which may be appropriated for the next fiscal year.

(Prior code § 2-155)

The following funds may be established and shall be used as necessary to provide for the proper accounting of all financial activities of the city:

A. General Fund. The general fund to account for the general governmental operations and all financial transactions not properly accounted for in another fund.

B. Special Revenue Funds. Special revenue funds to account for the proceeds of special revenue sources, other than special assessments, or to finance specified activities as required by law or administrative regulation.

C. Debt Service Funds. Debt service funds to account for the payment of interest and principal on long-term debt other than special assessment and revenue bonds.

D. Capital Projects Funds. Capital projects funds to account for the receipt and disbursement of monies including bond proceeds used for the acquisition of capital facilities other than those financed by special assessment and enterprise funds.

E. Enterprise Fund. Enterprise (utility) funds to account for the financing of services to the general public where all or most of the costs involved are paid in the form of charges by users of such services.

F. Trust and Agency Funds. Trust and agency funds to account for assets held by a governmental unit as trustee or agent for individuals, private organizations and other governmental units.

G. Internal Service Funds. Internal service funds to account for the financing of special activities and services performed by a designated organization unit within a governmental jurisdiction for other organization units within the same governmental jurisdiction.

H. Special Assessment Funds. Special assessment funds to account for special assessments levied to finance public improvements or services deemed to benefit the properties against which the assessments are levied.

(Prior code § 2-156)

A complete self-balancing group of accounts shall be established and maintained for each fund used. This group of accounts shall include all general ledger accounts and subsidiary records necessary to reflect compliance with legal provisions and to set forth the financial position and the results of financial operations of the fund.

(Prior code § 2-157)

Additional accounts, as follows, shall be maintained:

A. A fixed asset account for the purpose of accounting for those assets which are of tangible nature, have a life longer than one fiscal year, and have a significant value (or have a value greater than one thousand dollars ($1,000.00)). General fixed assets shall be recorded at original cost, shall not be depreciated, and shall be removed from the account when disposed of. Enterprise funds' fixed assets may be depreciated.

B. A long-term debt account for the purpose of accounting for a long term debt and for recording and fairly representing the liability for long-term debt at any time from date of issuance until the debt is retired.

(Prior code § 2-158)

To the extent possible, the modified accrual basis of accounting shall be used so that expenditures, other than accrued interest on long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when cash is received, except for material or available revenues which shall be accrued to reflect properly the taxes levied and the revenues earned. All receipts and disbursements shall be posted promptly and at least on a monthly basis. To the extent possible, all interfund transfers shall be cleared by the end of the fiscal year.

(Prior code § 2-159)

Financial statements and reports showing the current conditions of budgetary and proprietary accounts shall be prepared and presented to the city council at least every three months. Not later than six months after the close of the fiscal year, a comprehensive annual financial report covering all funds and financial operations shall be prepared and published. A summary of this report, containing at least a statement of revenues and expenditures as of the close of the preceding fiscal year and the combined balance sheet for all funds and account groups, shall be published in a newspaper of general circulation in the municipality.

(Prior code § 2-160)

All the funds, accounts and financial transactions of the city shall be subjected to an annual audit by an independent certified public accountant who is to be selected by the city council. The audit shall be conducted in accordance with generally accepted auditing standards promulgated by the American Institute of Certified Public Accounts (AICPA).

(Prior code § 2-161)

The responsibility for the proper execution of the provisions of this fiscal control ordinance shall be with the city manager except where the responsibility is explicitly given to the city council.

(Prior code § 2-162)