Article VII — FISCAL ADMINISTRATION

SECTION 700. PROPERTY TAXATION.

The Council of the City of Eureka shall annually fix the rate of taxation to be levied, and levy the taxes upon all property, both real and personal, in the city, necessary to raise sufficient revenue to carry on the various departments of the Municipal Government for the current fiscal year; provided, that the rate of taxation so levied shall not exceed in any year One and 50/100 Dollar for each One Hundred Dollars upon the assessed value thereof, except for the payments of principal and interest of the bonded debt of the city, if any; and provided further, that in addition to said One and 50/100 Dollar rate, the Council may levy a tax of not more than Ten Cents for each One Hundred Dollars upon the assessed value thereof, to be used for recreational purposes only.

SECTION 701. FUNDS TO BE ESTABLISHED.

The Council shall, before fixing the rate of annual city tax, establish by ordinance separate funds representing the several funded obligations of the city, if any, and of the several departments requiring municipal expenditures, including a General Fund, and the percentage of said levy shall be named for each fund, and the whole amount of taxes and revenue of the city apportioned accordingly; and no transfers shall be made except of balances in excess, or from the General Fund to meet deficiencies, or to provide for the redemption of city bonds, if any.

SECTION 702. FISCAL YEAR.

The fiscal year of the city shall commence on the first day of July of each year.

SECTION 703. BUDGET PREPARATION.

At least 45 days prior to the beginning of each fiscal year, the City Manager shall submit to the Council a budget of proposed expenditures and estimated revenues, accompanied by an explanatory budget message. For such purpose, the City Manager, on such schedule and under such terms as may be prescribed by the City Manager, shall obtain from the head of each department or other agency of the city their estimates of revenue and expenditure in such detail and with such supporting plans and data as the City Manager may require. The City Manager may revise such estimates in any manner the City Manager deems advisable. The explanatory budget message of the City Manager to the Council shall explain the budget, shall outline the proposed financial policies of the city for the ensuing fiscal year, shall propose priorities for capital expenditures, and shall describe the important features of the budget plan. It shall state the reasons for salient changes from the previous year in cost and revenue items, and shall explain any major changes in financial policy. The budget shall be submitted in such form as to enable the Council to compare the prior and current years' revenue and expenditures to which such proposed revenues and expenditures relate. Estimates of revenue shall include surpluses to be carried over from the current year, plus current revenues from all sources. (Amended by election November 2, 2010)

SECTION 704. BUDGET HEARING AND APPROVAL.

After submission of the budget by the City Manager, the Council shall review it in such detail as it deems necessary, and after a public hearing held not less than 10 days after public notice thereof, may revise the budget in any manner it finds necessary. Not later than the last day of the fiscal year the Council shall adopt a budget for the ensuing fiscal year, failing which the last fiscal year allotments shall be effective until the budget is adopted. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes therein named.

SECTION 705. BUDGET TRANSFERS.

At any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion so as to authorize the transfer of unused balances appropriated for one department to another department, or to appropriate available funds not

included in the budget; and may authorize the City Manager to transfer funds between purposes within departments.

SECTION 706. ASSESSMENT.

The Council shall provide by ordinance for the assessment of property for the purpose of taxation, either under the direction of the City Manager or by agreement with the County of Humboldt in the manner provided by law.

SECTION 707. TAX COLLECTION.

The Council shall provide by ordinance or resolution for the collection of all taxes and other revenues due the City, either under the direction of the City Manager or City Clerk or by agreement with the County of Humboldt, the State of California, or any other agency regularly engaged in the collection of a given tax or other revenue.

SECTION 708. GENERAL REVENUES.

The Council may, by ordinance or resolution, provide for any tax, license or permit fee, service charge or other kind of revenue authorized by this Charter or by the Constitution or general laws of the State, and not prohibited by the Charter or by the Constitution.

SECTION 709. PURCHASING.

The City Manager shall purchase or contract for the equipment, materials, supplies and services required by the city, for which expenditures have been authorized in the budget or by other action of the Council. The Council shall establish by ordinance or resolution the conditions under which purchases shall be made only after competitive bidding, shall specify these amounts and conditions under which Council approval is required for specific items of purchase, and shall prescribe conditions under which all bids may be rejected and new bids invited. In the case of materials, supplies and equipment, a preference of not to exceed five percent may be allowed to firms or individuals who regularly maintain a place of business and transact business in, or maintain an inventory of merchandise for sale in the city.

SECTION 710. PUBLIC WORKS.

Any city improvement estimated to cost more than $15,000 shall be performed under contract with sealed bid and accompanying performance bond, except where such improvement is authorized by the Council to be made directly by a city department in conformity with detailed plans, specifications and estimates. All such contracts for more than $15,000 shall be awarded to the lowest responsible bidder after such public notice and competition as may be prescribed by ordinance or resolution provided that all bids may be rejected for cause, and new bids may be sought in accordance with the original procedure. Alterations in contracts affecting the scope of work, time requirements, cost or any other substantive provisions affecting cost or the city's interests, shall be approved by the Council after considering the recommendations of the City Manager.

SECTION 711. TERMS OF CONTRACTS.

No contract for equipment, materials or supplies shall be made by the city for a longer term than one year; provided that contracts with other governmental agencies for utility services the rates for which are regulated by the state or national government, for public works improvements for which funds have been provided or for services, may be for a longer term in the discretion of the City Council.

SECTION 712. ACCOUNTING SYSTEM.

The City Manager shall direct the establishment and supervise the maintenance of a uniform system of accounting applicable for all departments and other agencies of the city, conforming to modern accepted practices of municipal accounting, which shall be adequate to account for all monies on hand and for all income and expenditures in such detail as will provide complete and informative data concerning the financial affairs of the city and in such manner as will be readily acceptable to audit and review.

SECTION 713. AUTHORIZATION AND CONTROL OF EXPENDITURE.

No expenditure of city funds shall be made except for the purpose and in the manner specified in an appropriation by the Council. The City Manager shall establish and direct such systems of internal control and audit as the City Manager may find necessary to insure the fulfillment of the purpose of this Section.

SECTION 714. ALL MONEY TO TREASURY.

All public monies collected by any officer, or employee, of the city shall be paid into the City Treasury, without any deduction on account of any claim for fees, commissions, or any other cause or pretense; and the compensation of any officer, employee, or other person so collecting money, shall be paid by demands upon the Treasury, duly audited as other demands are audited and paid.

SECTION 715. SUITS MUST BE PRECEDED BY DEMAND.

No suit shall be brought upon any claim for money or damages against the City of Eureka until a demand for the same has been presented as herein provided, and rejected in whole or in part. If rejected in part, suit may be brought to recover the whole. Nor shall suit be brought against said city upon any such claim or demand, if the same shall be in whole approved and audited as provided herein; provided, that nothing herein contained shall be construed so as to deprive the holder of any demand of his right to resort to a writ of mandate, or other proceedings against the said Council, or any Board, Commission or Committee or officer of said city, to compel it, or him, to act upon such demand or claim, or to pay the same when so audited.

SECTION 716. INDEPENDENT AUDIT.

The Council shall employ at the beginning of each fiscal year a certified public accountant who shall, at such time or times as may be specified by the Council and at such other times as the certified public accountant shall determine, examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds, and of such other officers, employees or department as the Council may direct. The Council may direct that such certified public accountant may conduct the independent audit throughout the fiscal year and make reports at intervals required by the Council, but a report for the entire fiscal year shall be filed within 210 days after the closing of the books for said fiscal year, and copies of such reports shall be filed with a Council and with the City Manager, and shall be available for public inspection and review. (Amended by election November 2, 2010)

SECTION 720. OFF-STREET VEHICULAR PARKING.

The Council is hereby expressly authorized to exercise the powers vested by law in any city to provide off-street vehicular parking facilities and to provide for the financing thereof in whole or in part from revenues derived therefrom.