Downey Municipal Code Art. XII Fiscal Administration

The fiscal year of the City government shall begin on the first day of July of each year and end on the 30th day of June of the following year.

At such date as the City Manager shall determine, each board or commission and each department head shall furnish to the City Manager, or designee responsible for the finance function, estimates of revenue and expenditures for the 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 deemed advisable.

At least 35 days prior to the beginning of each fiscal year, the City Manager shall submit to the City Council the proposed budget and shall make copies of the proposed budget available for inspection. After reviewing the same and making such revisions as it may deem advisable, 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 as amended by the City Council shall be available for inspection.

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 be heard shall be given such opportunity.

At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof 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, certified by the City Clerk, shall be filed with the City Manager, Designee responsible for the functions of finance, City Treasurer, and the person employed by the City Council to perform the independent audit as provided in Section 1216, 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 budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City.

From the effective date of the budget, the various amounts stated therein as proposed expenditures shall be and become appropriated to the various departments, offices and agencies for the respective objects and purposes therein named. 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 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.

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 provided in this Charter. 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 and equipment required by any office, department or agency of the City government.

The City Council shall be authorized to levy and impose taxes, assessments and fees for municipal purposes to the full extent permitted by the State Constitution.

The procedure for the assessment, levy, imposition and collection of taxes for municipal purposes, may be prescribed by ordinance of the City Council to the extent permitted by the State Constitution.

The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of four 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 voters voting on such proposition at any election at which the question is submitted to the voters and unless in full compliance with the provisions of the State Constitution and of this Charter.

The City shall have the power to issue revenue bonds for the purpose of financing the acquisition, construction, extension, improvement or repair of any municipal utility or other revenue producing facilities, but no such bonds shall be issued unless the same shall first be authorized by the affirmative vote of a majority of those voters voting on the question of incurring such indebtedness at any election at which such question is submitted to the voters of the City. The Council may issue and sell bonds so authorized, may fix the terms and conditions thereof, and may make, fix and establish such covenants, conditions, terms and provisions as it deems necessary or desirable to facilitate the issuance and sale of the bonds or for the protection and security of the holders thereof. Bonds issued pursuant to this Article shall not be general obligations of the City but shall be payable, principal and interest, solely from revenues or other special funds specifically pledged to that purpose.

Except, as hereinafter expressly provided, every contract involving an expenditure of more than $15,000 for the construction of improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the sum of $15,000, 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. After rejecting bids, or if no bids are received, or without advertising for bids if the total amount of the contract or project is $30,000 or less, then the City Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its own employees, or that the materials or supplies may be purchased at a lower price in the open market, 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 or such materials or supplies purchased in the manner stated, without further observance of the provisions of this Section. Such contracts may be let and such purchases made without advertising for bids, if such work or the purchase of such materials or supplies shall be deemed by the City Council to be urgent necessity for the preservation of life, health or property, and shall be authorized by the affirmative vote of at least two-thirds of the total members of the City Council.

The limitations as provided in this Section may be increased by adoption of a resolution by the affirmative vote of two-thirds of the total members of the City Council provided, however, that such increase shall not be greater in percentage than the percentage change in the construction cost index of the Los Angeles Metropolitan Area as reported by the Engineering News-Record from the effective date of this section to the date of the change.

Projects for the extension, construction or improvement of any public utility system operated by the City or for the purchase of supplies or equipment for any such project or any such utility 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 establish by ordinance such other special purpose funds, consistent with the provisions of this Charter, as it may consider necessary or appropriate.

Procedures prescribed by State law governing the presentation, consideration and enforcement of claims against chartered cities or against officers, agents and employees thereof shall apply to the presentation, consideration and enforcement of claims against the City.

No suit shall be brought for money or damages against the City or any board, commission or officer thereof on any cause of action for which this Charter or the general law requires a claim to be presented, until a claim or demand for the same has been presented as in this Charter provided and such claim and demand has been rejected in whole or in part. If rejected in part suit may be brought to recover the whole. Failure to complete action approving or rejecting any claim or demand within the timeframe prescribed by State Law shall be deemed a rejection thereof.

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.

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 such accountant shall determine, examine the books, records inventories and reports of all officers and employees who receive, 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 financial statement shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member, one to the City Manager, Designee responsible for the functions of finance, Treasurer, and City Attorney, respectively, and sufficient additional copies of the financial statement shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public. Within ten days after the filing of the financial statement with the City Clerk, notice of the availability of the financial statement shall be published in the official newspaper.