Article IX — FISCAL ADMINISTRATION

Section 901. - FISCAL YEAR.

The fiscal year of the City shall begin on the first day of July of each year and end on the thirtieth day of June following. The City Council may, by ordinance, provide for a system of thirteen equal accounting periods.

(Sec. 901 amended by vote of the people 3-9-1993: Sec. 901 amended by vote of the people 6-8-1976, effective August 1, 1976.)

Section 902. - PREPARATION OF BUDGET.

No later than February of each year, the Mayor shall present a thematic budget message for the upcoming fiscal year to the City Council. The City Council shall establish procedures whereby public suggestions and comments on the Mayor's budget proposals may be received and considered prior to the preparation and submission of budget estimates by the Departments to the City Manager.

On or before the third Monday in May of each year, the City Manager shall submit to the City Council a preliminary budget of probable expenditures and revenues of the City for the succeeding fiscal year, giving the amounts required to meet the interest and sinking funds for all outstanding funded debts, the amounts required for salaries and the needs of all departments and programs of the municipal government in detail, showing specifically the amount necessary to be apportioned to each fund in the treasury, and giving the estimated income and revenue to be obtained from all sources, indicating the revenue separately for each source.

(Sec. 902 amended by vote of the people 6-5-2018: Sec. 902 amended by vote of the people 11-3-1998: Sec. 902 amended by vote of the people 3-9-1993: Sec. 902 amended by vote of the people 6-8-1976, effective August 1, 1976.)

Section 903. - PUBLIC HEARING ON BUDGET.

The City Council shall hold a public hearing on the proposed budget not earlier than two weeks after publication of a notice stating:

(A)

The times and places where copies of the budget are available for inspection by the public; and

(B)

The time and place for the public hearing.

(Sec. 903 amended by vote of the people 3-9-1993.)

Section 904. - ADOPTION OF THE BUDGET AFTER HEARING.

After the conclusion of the public hearing, the City Council shall consider the proposed budget and make any revisions that it may deem advisable. The City Council shall annually, on or before the thirtieth day of June, adopt a budget of the amounts estimated to be required to pay the expenses of conducting the public business of the City for the fiscal year. The budget shall be prepared in such detail as to the aggregate sum and the items or programs thereof allowed to each department, office, agency, board, commission or committee as the City Council may determine. The budget may include an "unappropriated balance" which shall be appropriated during the fiscal year to meet contingencies and needs as they arise. A copy of the budget, certified by the City Clerk as having been adopted by the City Council, shall be placed on file in the office of the City Clerk and shall be available for public inspection. Another copy, likewise certified, shall be filed with the Director of Finance. Copies of the budget shall be made available for the use of each department, office, agency, board, commission and committee of the City.

(Sec. 904 amended by vote of the people 3-9-1993: Sec. 904 amended by vote of the people 6-8-1976, effective August 1, 1976.)

Section 905. - TAX RATE.

On or before the first Monday of September in each year, the City Council shall, by ordinance, fix the tax rate, and shall, by ordinance, establish procedures for tax collection and enforcement. The City Council shall fix a tax rate which will raise sufficient monies, when added to all other estimated income and revenue, to meet the adopted budget requirements.

(Sec. 905 amended by vote of the people 3-9-1993.)

Section 906. - BUDGET RESERVE.

A sufficient amount may be included in the budget each year to pay the necessary current expenses of the City government until the receipt of tax moneys the following year.

Section 907. - BUDGET APPROPRIATIONS.

The adoption of the budget shall constitute an appropriation to the several offices, programs, departments, boards and commissions for the respective objects and purposes named therein.

(Sec. 907 amended by vote of the people 6-8-1976, effective August 1, 1976.)

Section 907.5. - ANNUAL FINANCIAL REPORT.

Within four months after the close of each fiscal year, the Director of Finance shall compile and deliver a financial report to the City Council which shall be available to the public.

The intent of this section is to provide the City Council, citizens and other interested parties with information on the financial position of the City and its various agencies and funds, in sufficient detail to allow reasonable analysis by diligent study.

The report shall contain, but shall not be limited to, the following information for each fund of the City and of each agency it has created:

(A)

A description of developments occurring during the fiscal year which have affected the financial position;

(B)

A statement of financial position as of the beginning and end of the fiscal year;

(C)

A summary of revenues and expenditures for the fiscal year, compared to the adopted and the final amended budget and to corresponding information for the preceding year;

(D)

The amount paid during the year to each retirement system, compared to similar information for the preceding year;

(E)

A tabulation of unfunded obligations, including retirement obligations, as of the beginning and the end of the fiscal year, which will require commitment of resources in future years; and

(F)

Available reports by the independent auditors, with a notice of the place and the expected time at which auditors' reports not yet available can be examined.

(Sec. 907.5 amended by vote of the people 3-9-1993: Sec. 907.5 approved by the people 6-8-1976, effective August 1, 1976.)

Section 908. - TAX SYSTEM.

The City may use, for the purpose of ad valorem municipal taxation of property, the County assessment and tax-collection services.

(Sec. 908 amended by vote of the people 6-8-1976, effective August 1, 1976.)

Section 909. - BONDED DEBT OR TAX LEVY.

Whenever the City Council shall determine that the public interest requires the construction or acquisition or completion of any public improvement or utility, the cost of which, in addition to the other expenditures of the City, will exceed the income and revenue provided for in any one year, it may, by ordinance, submit a proposition to incur a general obligation bonded indebtedness and specifying the maximum interest rate thereof, or levy a special tax for such purpose, and proceed therein as provided in Section Eighteen of Article Sixteen of the Constitution of this State and general law or laws thereof, and that the bond issue therefor shall be sold to the highest bidder, after advertising for sealed proposals; provided that the City Council may reject any and all bids.

(Sec. 909 amended by vote of the people 3-9-1993: Sec. 909 amended by Stats 1971.)

Section 910. - BONDED DEBT LIMIT.

The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed 15 per cent of the assessed value of all the real and personal property in the City subject to assessment for taxation for municipal purposes.

Section 911. - PAYMENT OF BONDS.

The Director of Finance shall draw and issue a warrant without approval of any body or officer for payment of the principal of interest on bonds issued by the City, in accordance with the State Constitution, laws and ordinances authorizing the issuance of said bonds.

(Sec. 911 approved by vote of the people 6-8-1976, effective August 1, 1976.)

Section 912. - INDEPENDENT AUDIT.

At the beginning of each fiscal year, the City Council shall employ a certified public accountant who shall, at such times as may be specified by the City Council, examine the records, books, inventories, and reports of all officers and employees who receive, handle, or disburse City money, and the books, records, inventories, and reports of such officers, employees, or departments as the City Council may direct. The accountant shall make such periodic reports to the City Council as it may direct, and as soon as practicable following the close of the fiscal year, the accountant shall make a final audit and report in writing to the city council.

(Sec. 912 amended by vote of the people 3-9-1993: Sec. 912 approved by vote of the people 6-8-1976, effective August 1, 1976.)

Section 913. - CAPITAL PROJECT FUND.

There is created a special fund known as the "Capital Project Fund" which shall be used to account for financial resources which are to be expended only for the acquisition, construction, replacement or repair of municipal improvements, as defined in California Government Code 43601 as of July 1, 1971, or for payments of principal and interest on funds borrowed for such purposes. The Capital Project Fund shall receive monies as designated by the Charter or City Council from time to time. Expenditures and transfers from the fund, other than for specific municipal improvements projects as defined above, shall be authorized only upon a majority vote of the people.

(Sec. 913 amended by vote of the people 3-9-1993: Sec. 913 amended by vote of the people 6-5-84, effective 7-9-84)