Lindsay Municipal Code § 3.01 Financial System

1. Budget Calendar. On or before the first day of the last month of each fiscal year, the city manager shall submit to the city council a budget for the ensuing fiscal year, and an accompanying budget message.
2. Budget Message. The city manager's budget message shall explain the budget both in fiscal terms and in terms of the work program, Additionally, it shall:
3. Outline the proposed financial policies of the city for the ensuing fiscal year;
4. Describe the important features of the budget;
5. Indicate any major changes from the current year in financial policies, expenditures and revenues, together with the reasons for such changes;
6. Summarize the city's debt position; and
7. Include such other material as the city manager deems desirable.
8. Other Matters. The city manager shall submit to the city council all such other matters as determined necessary and/or appropriate to secure the financial, service and administrative goals of the city, expressed in financial terms as recommended by the city manager and as set out in this chapter.

(Ord. 469 §2 (part), 1996)

1. Contents. The annual budget presented by the city manager shall contain but not be restricted to the following items:
2. Comprehensive Financial Plan. A complete financial plan for all city funds, offices, departments, agencies, authorities, corporations, utilities, enterprises and activities for the ensuing fiscal year;
3. Summaries. Summaries and totals adequate to provide a comprehensive and consolidated view of the city's financial condition; and
4. Contents of Budget. Sections of the budget shall provide for and contain:
5. The goals and objectives proposed to be achieved by appropriations during the ensuing fiscal year, detailed for each fund by organization unit, program, purpose or activity, and the method of financing such proposed appropriations;
6. Comparative amounts for actual and estimated revenues and expenditures for the current fiscal year and actual revenues and expenditures for the preceding fiscal year;
7. Proposed capital expenditures during the ensuing fiscal year and the proposed method of financing of each such capital expenditure; and
8. Anticipated revenues, expenses, balances and reserves, and the purpose of said reserve; for each city fund, including all utility, enterprise, reserve and internal service funds, and for each city agency, authority, corporation, utility and enterprise.

(Ord. 469 § 2 (part), 1996

Immediately on receiving the recommended budget from the city manager, the city council shall:

1. Consideration. At either regular or special meetings, receive, study and consider the city manager's recommended budget and budget message.
2. Notice and Hearing. The city council shall cause to be published in a newspaper of general circulation, or if no such newspaper exists, to be posted in three established public places in the city, the general summary of the budget as presented by the city manager, and a notice stating:
3. The places and times where copies of the budget and message are available for inspection by the public; and
4. The time and place, not less than ten days after such publication or posting, for a public hearing on the proposed budget.
5. Amendments. The council shall amend the recommended budget as deemed necessary and proper, except that no revisions shall be made contrary to the provisions of this chapter.
6. Prohibited Amendments. The council may amend the budget to add to or increase programs or amounts or to delete or decrease any programs or amounts, except those expenditures required by law or for debt services, but no amendment to the budget shall increase the authorized expenditures for any fund to an amount greater than the total estimated income and carried forward fund balances, plus appropriated reserves.

(Ord. 469 § 2 (part), 1996)

The city council shall adopt the budget on or before the last day of the last month of the fiscal year currently ending. If the council fails to adopt the budget by the date prescribed in this chapter, then the budget as recommended by the city manager shall go into effect.

(Ord. 469 § 2 (part), 1996)

1. Amount of Budget. If during the fiscal year the city manager certifies in writing to the city council that there are available for appropriation revenues in excess of those contained in the adopted budget, the city council may make supplemental appropriations for the year up to the amount of excess.
2. Emergency Appropriations. To meet a public emergency affecting life, health, property or and public peace and welfare, the city council may make emergency appropriations. Any such emergency appropriation shall be made by resolution stating the exact nature of the emergency.
3. Reduction of Appropriations. If at any time during the fiscal year it appears probable to the city manager that the revenues or fund balances available and anticipated by the adopted budget will be insufficient to finance the expenditures for which appropriations have been made, the city manager shall:
4. Report such condition in writing to the city council without delay, indicating the estimated amount of the deficit;
5. Report any remedial action taken by the city manager; and
6. Make recommendations to the city council for further actions to be taken.
7. Prevention of Deficit. The city council shall take such actions as it determines necessary to prevent any budget deficit and, for that purpose, it may reduce one or more appropriations to assure that a budget deficit is prevented.
8. Budgetary Transfers. The city manager may transfer moneys between departments, divisions, programs and accounts within funds and departments, but within dollar or percentage of fund limits set by the council annually as part of the budget process, but only the council, by resolution, may transfer moneys between funds and from unappropriated or fund balances or reserves to any fund or appropriations account. All budgetary transfers made by the city manager shall be reported in writing quarterly to the city council.

(Ord. 469 § 2 (part), 1996)

1. Total of Budget. The total of proposed expenditures for any fund shall not exceed the total of estimated revenues plus carried-forward fund balance and appropriated reserves.
2. Payment Restrictions. No payment shall be made or obligation in incurred against any appropriation except in accordance with appropriations duly made by the council and unless the city manager or his/her designee first certifies that there is a sufficient unencumbered balance in such appropriation and that sufficient moneys therefrom are or will be available to cover the claim or meet the obligation when it becomes due and payable.
3. Illegal Payment. Any authorization of payment or incurring of obligation in violation of the provisions of this chapter shall be void and any payment so made illegal.
4. Securities Exception. Nothing in this chapter shall be construed to prevent the making or authorizing of payments or making of contracts for capital improvements to be financed wholly or in part by the issuance of municipal securities, or to prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, provided such contract or lease is not explicitly prohibited by the provisions of the California Constitution.
5. Constitutional Limitation. The status of the city budget and finances shall in all respects at all times be in compliance with California Constitution Article XVI, Section 18.

(Ord. 469 § 2 (part), 1996)

1. When Lapse. Every appropriation, except as provided for herein, shall lapse at the end of the fiscal year to the extent that it has not been expended or encumbered.
2. Capital Outlay Appropriations. All appropriations for capital outlay items shall continue in force until expended, revised or repealed. The purpose of any such capital outlay appropriation shall be deemed abandoned after three years pass without disbursement from or encumbrance against the appropriation.
3. Other Exemptions. Appropriations involving trust and agency accounts and reserves shall not lapse until specifically provided for either by the annual budget or separate resolution.

(Ord. 469 § 2 (part), 1996)

1. Five-Year Program. The city manager annually shall prepare and submit to the city council a five-year capital program which shall be submitted as a separate part of the annual budget but shall be considered by the council concurrent with the annual budget.
2. Program Contents. The capital program shall include but not be limited to the following:
3. A general summary of its contents;
4. A list of all capital improvements and other capital expenditures which are proposed to be undertaken during the five fiscal years next ensuing, with appropriate supporting information as to the necessity for each improvement or proposed expenditure;
5. Cost estimates and recommended time schedules for each improvement or other capital expenditure;
6. Method of financing for each improvement or other capital expenditure; and
7. The estimated annual cost of operating and maintaining the facilities or equipment to be constructed or acquired.
8. Capital Program Adoption. The capital program shall be a part of and adopted as part of the annual budget.

(Ord. 469 § 2 (part), 1996)

Copies of the annual budget and message, the annual audit, the annual financial report, if it be a separate document, and all appropriate summarizing documents shall be filed with the city clerk as permanent public records and shall be made available to the public for inspection and review.

(Ord. 469 § 2 (part), 1996)

1. Order of Audit. The city council shall provide for an annual independent audit of all city accounts and may provide for more frequent audits as they deem necessary.
2. Restrictions. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the city government or any of its officers. The person or firm selected by the city council shall be experienced in the audit of California city governments.
3. Designation of Audit Firm. The city council may, without requiring competitive bids, designate such accountants or firm to conduct the audit or for a period not exceeding three years, but the designation for any particular fiscal year shall be made not later than thirty days prior to the close of the fiscal year to be audited.

(Ord. 469 § 2 (part), 1996)

The fiscal year of the city shall commence at 12:01 a.m. each July 1st and end at midnight on June 30th.

1. All budgets, financial plans, financial and management reports and audits shall correspond with the fiscal year.
2. Should the terms of a grant from a higher level of government or a private foundation require fiscal reports other than those for the city fiscal year, then the terms of the grant will control and a note shall be made in any report, budget and audit containing information about the grant and the reason for the deviation from the city fiscal year.

(Ord. 469 § 2 (part), 1996)

The annual budget and all accounting records and financial reports as set out in this chapter shall contain information for each fund, agency, authority and corporation controlled or operated by the city, or in which the city has any financial interest.

1. Funds shall be as established and as set out in this chapter.
2. For any fund, the total of proposed expenditures for the fiscal year shall not exceed the total of estimated total income plus carried forward fund balance, plus the use of appropriated reserves, plus any debt financing approved by the city council for the specific purposes of the fund.
3. Financial and other operational information for each fund, agency, authority and corporation of the city shall be administered and provided as set out in this chapter.

(Ord. 469 § 2 (part), 1996)

1. Annual Review of Rates and Fees. Annually and concurrent with, or at such time prior to the presentation of the annual budget as he/she shall determine, the city manager each year shall present a report to the city council containing a comprehensive review of the costs of all city services, utilities and enterprises.
2. Consideration of Report. As part of the annual budget consideration, the city council shall set such fees and rates as it shall determine appropriate to recover the costs reasonable borne necessary to provide each such service, utility and enterprise provided by the city, pursuant to the provisions of Article XIII(B) of the California Constitution.
3. Failure to Act. If the council shall fail to act as required in this section, then such rates as are required to comply with this section shall go into effect automatically at such time as it is designated in the annual report of costs of services, utilities and enterprises for each individual service, utility and entetprise.
4. Repeal by Council. Prior to the adoption of the annual budget, the council may, by resolution, specifically repeal any such automatic fee, rate or charge increases or decreases as would be caused by its inaction, provided, however, that such resolution shall contain adequate reasoning and justification for such repeal as is necessary to explain why such city service costs reasonably borne are not being met in full or are producing excess revenues over costs reasonably borne.

(Ord. 469 § 2 (part), 1996)

The city budgeting and accounting system shall be an integrated financial management system based on the principles of double entry, self balancing accounts, and shall be under the supervision of the finance director.

1. Generally accepted accounting principles shall be followed and adhered to, and appropriate controls shall be installed, implemented, and maintained at all times for all city and agency, authority or corporation financial records, thereby assuring maximum protection of the city's moneys, assets and resources, and the integrity of the accounting, cash management, budgeting, and reporting system comprising the integrated financial management and reporting system as required by the City Charter.
2. The annual budget, annual comprehensive financial and administrative report, and all other reports of the finance department and city manager involving financial information, except those prepared to the specifications of granting agencies, shall be prepared with the informational needs of the public and the city council in mind, as well as meeting the requirements of generally accepted accounting principles, audit standards, the reporting requirements of the Governmental Accounting Standards Board, other governments, and the City Charter.
3. Quarterly budgetary status reports shall be prepared and provided by the finance director to the department heads and city manager and, through the city manager, to city council, such that all such persons and the city council might be assured of the continuing integrity of and the accountability for the city's financial resources, the accomplishment of city council policies and programs, and to have such financial data for management purposes.

(Ord. 469 § 2 (part), 1996)

For the purpose of clarifying budgetary and accounting coordination terminology and procedures, the provisions contained in this section shall apply to the city budgeting and accounting system.

1. The budget shall contain and the payroll accounting system shall match and not exceed a specific number of authorized positions to be filled by employees, listed by position classification, or the number of hours for which part-time or seasonal employees may be hired, and the dollar amount of overtime which may be utilized by the employees of any budgetary program.
2. The city manager may transfer authorized positions between departments, divisions or programs, but not between funds, provided:
3. The total appropriation for the fund within which the position transfers are made is not exceeded;
4. Any new salary involved for the position so transferred is at the same or a lower level and dollar amount than the present or prior incumbent; and
5. Moneys to cover any needed appropriation is transferred in accordance with the provisions of this chapter.
6. Each fund may contain a general contingency appropriation as the city manager recommends and the city council approves.
7. Emergency appropriations may be made by the city council during the fiscal year provided:
8. A statement accompanies the appropriation, which statement declares the reason for declaring an emergency
9. The stated emergency is related to a public threat to the life, health, public welfare, property or peace of the general public;
10. A source of funding is declared as a part of each such appropriation;
11. Each of the statements and the appropriation is approved by at least a four-fifths vote of the city council.

(Ord. 469 § 2 (part), 1996)

The finance director shall assist the city manager in the preparation of the annual budget, maintain the city accounting and financial management system, and make all required financial reports reflecting the transactions of all city funds, which shall conform to all standards established by the Governmental Accounting Standards Board, which funds shall contain all moneys and assets of the city, and report all transactions of the several city funds.

(Ord. 469 § 2 (part), 1996)

All city moneys and assets shall be contained in and accounted for in the funds created by or pursuant to this section and following Section 3.01.180.

1. The finance director is authorized to notify the city manager in writing that he/she proposes to create a fund, the reason therefor and, when the city manager signs such fund notification, the revision may be accomplished and the annual audit performed based on the revised fund structure. The city audit firm shall be provided a copy of each such fund notification recommended by the finance director and approved by the city manager.
2. Only the city council, by resolution, may abolish funds.

(Ord. 469 § 2 (part), 1996)

All city moneys and assets shall be contained in, accounted for and reported within the following fund structure, subject only to the revisions permitted by Section 3.01.170. The following funds are created for the city:

1. Governmental Funds. There are created the following funds within this general accounting grouping:
2. General Fund. This fund shall contain and account for all financial resources except those required to be accounted for in another fund. The finance director is authorized to create restricted accounts within the general fund for the receipt of moneys resulting from certain federal and state grants. Urban Development Action Grant moneys provided to the city by the United States may be accounted for as restricted accounts within the general fund should the finance director determine such classification and accounting procedure will best serve the needs of the granting agency and the city.
3. Special Revenue Funds. This group of funds shall be utilized to account for the proceeds of specific revenue sources other than expendable trusts or for major capital projects, which revenues are restricted legally to expenditure for specified purposes. The city special revenue funds shall be as follows, which funds are created:
4. Streets and Traffic Fund. This fund shall contain the proceeds of and account for and be utilized to report the expenditure of each of the following listed revenue sources:
5. California gas tax Section 2106.
6. California gas tax Section 2107.
7. California gas tax Section 2107.5.
8. Other restricted California gas tax revenues.
9. Other restricted California street and highway revenues.
10. General fund moneys transferred into this fund to make up fund deficits.
11. Transit Fund. This fund shall contain the proceeds of and account for and be utilized to report the expenditure of each of the following revenue sources:
12. California SB 325 Transportation tax.
13. California SB 620 Transportation tax.
14. General fund moneys transferred into this fund to make up fund deficits.
15. Special Assessment Fund. This fund shall contain the proceeds of and account for and be utilized to report the expenditure of each of the following listed revenue sources, which may be accounted for in subfunds, or created as a distinct fund, in the discretion of the finance director:
16. Landscape and lighting proceeds under the Landscaping and Lighting Act of 1972;
17. Curb and gutter revolving fund per Chapter 3.20 of the municipal code;
18. Sierra View Lighting and Landscaping Assessment District;
19. Assessment District Number 1.
20. Joint Powers Funds. With the approval of the city manager, the finance director is authorized to create such special revenue funds as he/she shall determine to be necessary and appropriate to account for the revenues, assets and expenses of any joint powers agency of which the city is a member and for which the city has contracted to provide accounting and financial management services.
21. Capital Projects Funds. This group of funds shall be utilized to account for financial resources used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds and trust funds. The city capital projects funds shall be as follows, which funds are created:
22. Housing Rehabilitation Fund. Grants from the United States with which to rehabilitate housing.
23. FHA Housing Preservation Grant.
24. CDBG funds. Grants by fiscal year from the United States under the Community Development Block Grant program, which annual grant fund is to be abolished automatically at the expenditure of all grant moneys and the fulfillment of all grant requirements. The following CDBG funds are created:
25. CDBG 1987.
26. CDBG 1988.
27. CDBG 1989.
28. CDBG 1990.
29. CDBG 1991.
30. CDBG 1993.
31. CDBG 1994.
32. CDBG 1995.
33. CDBG 1996.
34. CDBG revolving loan fund. Other funds as are necessary may be created by the finance director in his/her discretion within this category for each fiscal year grant, as, if and when such grant, is made to the city by the United States.
35. State Rental Rehabilitation Fund. The following funds to contain and account for grants by the state of California for the rehabilitation of housing are created:
36. 1992 home loan fund.
37. 1993 home loan fund.
38. 1994 home loan fund.
39. BEGIN 1993 home loan fund. Other funds as are necessary may be created by the finance director in his/her discretion within this category for each fiscal year grant, as, if and when such grant is made to the city by the state of California.
40. Other Grant Funds. The following funds to contain and account for grants to the city from either the United States or the state of California, for specific purposes, are created:
41. Small business incubator fund.
42. Economic development block grant.
43. Grant servicing and clearing fund.
44. Debt Service Funds. These funds shall be utilized to account for the accumulation of resources for and the payment of general long-term debt principal, interest and trustee fees.
45. Proprietary Funds. This category of funds shall contain the following categories of funds and specific funds:
46. Enterprise Funds. This group of funds shall be utilized to account for operations that are financed and operated in a manner similar to business enterprises whereby costs for providing goods and services to the general public on a continuing basis, including fixed asset replacement costs, are accumulated and accounted for. Such enterprise funds are to be financed or the costs thereof recovered primarily through user charges; or in such cases as the city council has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital replacement, maintenance, public policy, management control, accountability, or other purposes. The following enterprise funds are created:
47. Water Fund. All revenues and costs necessary to operate, maintain and to replace in perpetuity the City water utility system.
48. Sewer Fund. All revenues and costs necessary to operate, maintain and to replace in perpetuity the city sanitary sewer utility system, including the agricultural and industrial waste fund and the land applicatio

er purposes. The following enterprise funds are created:

1. Water Fund. All revenues and costs necessary to operate, maintain and to replace in perpetuity the City water utility system.
2. Sewer Fund. All revenues and costs necessary to operate, maintain and to replace in perpetuity the city sanitary sewer utility system, including the agricultural and industrial waste fund and the land application waste management fund, which two funds are abolished and merged into the sewer fund.
3. Refuse Fund. All revenues and costs necessary to operate, maintain and to replace in perpetuity the city solid waste collection and disposal enterprise.
4. Storm Drain Fund. All revenues and costs necessary to operate, maintain and to replace in perpetuity the city storm drainage collection, disposal and, if necessary, treatment utility system.
5. Internal Service Foods. This group of funds shall be utilized to account for the financing of goods or services provided by one department or agency to other departments or agencies of the city, or to other governmental units, on a cost-reimbursement basis. This group shall contain the following categories and specific funds, which are hereby created:
6. General Fund. Equipment.
7. Water Fund. Equipment.
8. Sewer Fund. Equipment.
9. Fiduciary Funds. This category of funds shall contain the following categories of funds and specific funds, which are created:
10. Trust and Agency Funds. This group of funds shall be utilized to account for assets held by the city in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or funds. The trust and agency funds shall be as follows, which funds are created:
11. Public Safety Asset Forfeiture Fund. All moneys and assets seized under any law which permits the public safety department to utilize such moneys or assets for public safety purposes, and all recordation, accounting for, reporting of and expenditure of such moneys and assets shall be provided by this fund.
12. Group Health Insurance Fund. All moneys and assets utilized by the city in providing partial or full self-insurance for the city employee health insurance plan.
13. Development Impact Trust Fund. All moneys and assets collected under the terms of any city ordinance, resolution, development agreement or other agreement or requirement which exacts moneys from specific land developments with which public improvements will be constructed shall be received by, accounted for and disbursed from this fund. The finance director may divide such fund into such sub-revenue and sub-expenditure accounts as he/she may determine, with the intention of such sub-accounts to be the assurance of the accomplishment of specific types of projects required to be financed by the specific categories of revenues. The following sub-accounts of this fund are created and the assets and liabilities of the current such funds with similar titles are transferred to these new sub-accounts and such existing funds are abolished:
14. CBD parking account.
15. Park improvement account.
16. Industrial wastewater account.
17. Residential wastewater account.
18. Account Groups. There shall be two groups of accounts, as follows:
19. General Fixed Assets Account Group. This account group shall account for fixed assets other than those accounted for in the proprietary funds or trust funds. The finance director is authorized to transfer from the various funds such moneys as shall be generated by those funds and their various revenue accounts for the replacement of general fixed assets, and to hold such moneys in reserve for fixed asset replacement. Appropriation and expenditure of any cash assets from the account group shall be done only through the annual budget.
20. General Long-Term Debt Account Group. This account group shall account for all unmatured. general long-term liabilities for which the city is obligated in some manner except for proprietary funds and trust funds, in which case the long-term liabilities will be accounted for in those funds.

(Ord. 469 § 2 (part), 1996

All interest earned on investment of city moneys shall be allocated to the various funds and accounts thereof in proportion to the contribution made by each fund or account to the moneys which were invested, based on computations made and applied by the finance department

(Ord. 469 § 2 (part), 1996)

The use of moneys designated by law or by council ordinance as assets of any special fund as established by this chapter shall remain inviolate for the purpose for which they were created unless the city council shall by ordinance, adopted by a four-fifths vote of the city council, after the holding of a public hearing, so designate otherwise.

1. Any unexpended and unencumbered balance remaining in any special fund created hereby after the purpose of which the special fund was created has been accomplished shall be transferred by the city council to the general fund or to the most appropriate other special fund.
2. Prior to the discontinuance of any special fund and the transfer of moneys, the city council shall hold a public hearing on such proposed action.

(Ord. 469 § 2 (part), 1996)

The finance director shall be the disbursing officer of the city.

1. The city clerk shall provide the finance director with a copy of each ordinance, resolution or council action pertaining to the fiscal affairs of the city.
2. The finance director shall not approve the payment of any bill or demand on the city until the following conditions are met:
3. That he/she is satisfied both as to the fund and account to be charged and as to the legality of the payment requested;
4. That sufficient moneys are available in the fund to be charged for payment of the bill or demand;
5. That an appropriation has been made by the city council or an appropriate, legal budgetary transfer has been made;
6. That such other conditions are met as the city council may, by ordinance, resolution, contract or agreement have provided, or as may be required by the City Charter or by state law;
7. That a contract, purchase order, or other valid written disbursement document denoting an obligation requiring payment has been entered into or approved by a city official who has authority so to do;
8. A payroll check, properly endorsed by the payee, shall be sufficient receipt for the disbursement or payment represented by such check. The finance director shall keep appropriate records to show the date, number, payee and amount of each payroll check, and shall reconcile the payroll account at least once each month. D. The finance director and the personnel director may establish such procedures and certifications for payroll amounts and employee hours and time worked and for which payment is due as they singly or jointly may require.

(Ord. 469 § 2 (part), 1996)

All payments of bills and demands made on the city which are approved pursuant to Section 3.01.210 of this chapter, shall be paid by city Warrant or check drawn on a checking account held in a depository bank approved by the city council by resolution, which process shall comply with all provisions of this section.

1. The finance director, in his/her discretion, may utilize either of warrant or checks for the purpose of the disbursement of city moneys, but once a system of checks is instituted, then warrants shall not be utilized. Only checks shall be utilized to draw moneys for payroll purposes.
2. The city shall have no more than two major consolidated checking accounts, one for general purposes and one for payroll checks. These accounts shall not include money held by fiscal agents.
3. Transfers between bank accounts may be made by the finance director as may be necessary to meet demands on the city, but only by check or appropriate electronic transfer made payable to "the City of Lindsay Only," pursuant to requirements of this section.
4. All electronic fund transfers shall be authorized by the finance director or his/her designee which the city council shall designate by resolution.
5. All city checks shall be signed with two signatures, by officials designated by the council by resolution.
6. Each person involved in city check writing and/or electronic transfer procedures, and the finance director, shall be covered by an individual surety bond in amount set by the city council.
7. The finance director shall establish and enforce procedures to assure the integrity of revenue receipt, accounting therefor, review and approval of disbursements, the writing of checks, and the custody of moneys and other city assets.
8. All procedures established by the finance director shall be designed and maintained such manner that the accounting for revenues and disbursements is procedurally and organizationally separated from the actual receipt of revenues and making of disbursements.
9. All such procedures shall be operated at all times in such a manner as to assure the integrity of all moneys and assets of the city.

(Ord. 469 § 2 (part), 1996)

The finance director shall maintain accounting records for each fund showing the cash and unencumbered balances of each fund, and such records as are sufficient to show each demand issued and disbursement made and the appropriation account, program and fund against which each such payment is made.

1. Each disbursement shall be recorded as to date, payee, invoice number, amount, fund and account charged therefor.
2. Each disbursement shall indicate the bank account on which the check is drawn.

(Ord. 469 § 2 (part), 1996)

The finance director shall review each purchase order, contract or other document which financially obligates the city prior to the issuance of such document and certify that moneys are available and an appropriation has been made by the city council adequate to meet the proposed obligation, or provide a statement as to the expected source of payment, prior to entering into any such obligation.

1. The finance director is charged with custody of and responsibility for all books of account, papers, records, computer programs and data sources, electronic storage media, accounting documents and documentation, and all financial records of the city pertaining in any respect to any and all fiscal transactions of the city.
2. The finance director shall assure that all revenues received and disbursements made are fully documented and recorded pursuant to the requirements of this chapter and such other requirements as he/she shall establish to assure the validity and integrity of the utilization of city moneys and assets.

(Ord. 469 § 2 (part), 1996)

The finance director is authorized to establish and control petty cash and change accounts pursuant to the requirements set out herein, no one of which shall exceed one thousand dollars.

1. The finance director shall establish, in writing, such petty cash and change accounts as he/she may determine to be necessary.
2. The finance director shall establish, require and audit documentation for replacement of moneys in such accounts.
3. The finance director shall, in writing, designate the person or persons responsible for maintenance of the integrity and records of each such petty cash and change account as is established.

(Ord. 469 § 2 (part), 1996)

Claims against the city for damage alleged to have been incurred by persons and corporations shall be filed with the city clerk on a form provided by the city clerk to the claimant, which form shall provide for the information required by Government Code Section 910.

1. Such form shall contain all pertinent information and must be completed by the claimant prior to being considered for processing, including whether the claim is for bodily injury, property damage, personal injury, material damage or other potential or alleged claim action, including the refund of any fee, charge or tax levied or made by the city which might be subject to any refund claim by any legal theory.
2. Claims shall be processed pursuant to state law and the procedures under joint powers insurance agreements and the claims processing requirements of agreements entered into by the city.
3. Claims shall be filed with the city clerk within one hundred days of the incident or event for which the claim is made, or one year, depending on the type of claim, per the provisions of Government Code Section 911.2. The city clerk shall forward a copy of all claims to the city risk manager.
4. Claims shall be rejected or processed for appropriate payment pursuant to procedures established by the city's insurance coverage process and pursuant to state law.
5. Claims against a city employee shall be reviewed by the city personnel officer as part of the processing of that type claim.
6. The city manager is authorized to enter into agreements with insurance carriers, adjustors, or the city's joint powers self-insurance agency to review, process, advise on, negotiate with claimants on behalf of the city, and to settle claims on behalf of the city.
7. Claims which are recommended to be paid which are in excess of five thousand dollars shall be referred to the city council for approval. Such claims may be reviewed in closed session on recommendation of the city attorney, pursuant to the state open meetings law.
8. Notwithstanding the exemptions set forth in Section 905 of the California Government Code, all claims against the city for damages or money, when a procedure for processing such claims is not otherwise provided by state or local law, shall be presented within the time limitations and in the manner prescribed by Sections 910 through 915.2 of said Government Code.
9. All . claims shall further the subject to the provisions of Sections 945 and 946 of the California Government Code relating to the prohibition of suits in the absence of the presentation of claims and action thereon by the council.

(Ord. 469 § 2 (part), 1996)

All legal actions naming the city or any of its officers, employees or agencies as defendant shall be filed with the city clerk and immediately referred to the city attorney for appropriate response to protect the interests, of the city.

(Ord. 469 § 2 (part), 1996)