Santa Barbara 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 thirtieth (30th) day of June of the following year.

At such date as the City Administrator shall determine, each board or commission and each department head shall furnish to the City Administrator, personally, or through the Director of Finance, estimates of revenue and expenditures for his department or for such board or commission for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Administrator. In preparing the proposed budget, the City Administrator shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions as necessary, and may revise the estimates as he may deem advisable.

At least 60 days prior to the beginning of each fiscal year, the City Administrator shall submit to the City Council the proposed budget as prepared by him. After reviewing 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 10 days prior to said hearing, by at least one insertion in the official newspaper. Copies of the proposed budget shall be available for inspection by the public in the Office of the City Clerk at least 10 days prior to said hearing.

(Amended pursuant to election held March 8, 1977)

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 by resolution 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 Administrator, Director of Finance, City Treasurer and the person retained by the City Council to perform the post audit function 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 several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named, provided, however, that the Director of Finance with the approval of the City Administrator may authorize the transfer of funds from one object or purpose to another within the same department, office or agency. 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 public 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 Administrator there shall be established a centralized purchasing system for all City departments and agencies, except as otherwise provided in this Charter. The City Administrator 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 shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 10% 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 2/3 of the electors voting on such proposition at any election at which the question is submitted to the electors and unless in full compliance with the provisions of the State Constitution and of this Charter.

Bonds which are payable only and solely out of such revenues, other than taxes, as may be specified in such bonds and produced or contributed to by the improvement financed by said bonds may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of such revenues, shall not constitute an indebtedness or general obligation of the City within the meaning of Section 1209. No such bonds payable out of revenues shall be issued without the assent of a majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the qualified electors of the City.

It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special fund was established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished.

In order to provide understandable methods of salary setting which will result in compensation reasonable to employees and taxpayers alike, the salary administration policy and procedures for the City shall be implemented in a manner consistent with modern public personnel administration.

(a) The City Administrator shall annually review the salary schedules, rates of compensation, and related benefits of all the officers, management employees, general employees and Police and Fire employees of the City, as such employee groups may be defined by ordinance, in accordance with the wage compensation policy hereinafter set forth.

(b) The compensation of Police and Fire employees of the City shall be set forth by ordinance or resolution. Said compensation may be adjusted, annually or otherwise, to reflect the results, if any, of any employer/employee negotiations which may be required by law. Notwithstanding any provisions of this Charter, the economic ability of the City to pay compensation in any form shall be paramount.

(c) The compensation of general employees of the City shall be set forth by ordinance or resolution. Said compensation may be adjusted, annually or otherwise, to reflect the results, if any, of any employer/ employee negotiations which may be required by law. Notwithstanding any provisions of this Charter, the economic ability of the City to pay compensation in any form shall be paramount.

(d) Compensation for management employees of the City shall be in accordance with the Management Compensation Plan specified by ordinance. The salaries of management employees shall be annually reviewed and adjusted on the basis of comparability with other public jurisdictions having departmental divisions of similar size and positions. In recommending salary adjustments to the Council, the City Administrator shall take into account cost of living indices, recruitment difficulties, staff organization and responsibility.

(e) The City Council shall annually by ordinance or resolution effective on the first day of July of each year adjust the salary schedules and rates of compensation of all City officers and employees, other than City Councilmen, in accordance with the provisions of this section.

(f) This section shall become operative and effective on January 1, 1974.

(Amended pursuant to elections held April 17, 1973; June 8, 1976; March 8, 1977)

The City Council may maintain a revolving fund, to be known as the "Contingency Fund," for the purpose of placing the payment of running expenses of the City on a cash basis. A balance may be built up in this fund from any available sources, other than funds which are by law or this Charter restricted to a particular use, in an amount which the City Council deems sufficient with which to meet all lawful demands against the City for the first five months, or other necessary period, of the succeeding fiscal year prior to the receipt of sufficient revenues. Transfers may be made by the City Council from such fund to any other fund or funds of such sum or sums as may be required for the purpose of placing such funds, as nearly as possible, on a cash basis.

(Amended pursuant to election held November 2, 1982)

A fund for capital outlays generally is hereby created, to be known as the "Capital Outlays Fund" and to be a continuation of any existing Capital Outlays Fund. The City Council may create by ordinance a special fund or funds for a special capital outlay purpose. It may not, in making such levy, exceed the maximum tax rate provided for in this Charter, unless authorized by the affirmative votes of a majority of the electors voting on the proposition at any election at which such question is submitted. The City Council may transfer to any such fund any unencumbered surplus funds remaining on hand in the City at any time.

Once created, such fund shall remain inviolate for the purpose for which it was created; if for capital outlays generally, then for any such purposes, and if for a special capital outlay, then for such purpose only, unless the use of such fund for some other capital outlay purpose is authorized by the affirmative votes of a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted.

If the purpose for which any special capital outlay fund has been created has been accomplished, the City Council may transfer any unexpended and unencumbered surplus remaining in such fund to the fund for capital outlays generally, established by this Charter.

(Amended pursuant to election held November 2, 1982)

The City Council may prescribe by ordinance for the setting up of a Treasurer's Departmental Trust Fund into which the collections of or deposits with the Police Department, License Collector, Building Official and other officers and departments authorized to make collections or receive deposits may be deposited at frequent intervals each month, with advice of each deposit being furnished to the City Treasurer and Director of Finance. The City Treasurer shall make withdrawals from such a fund only on order signed by the Director of Finance and for the following purposes:

(a) Making a refund of refundable deposits when such refund is legally due from the City.

(b) Revolving fund advances authorized by the City Council.

(c) Correction of clerical or ministerial errors in the receipt of payments to the City.

(d) Making settlements with City funds at the end of each calendar month for collections or deposits accumulated during the month.

The City Council may establish by ordinance such other funds, not inconsistent with the provisions of this Charter, as it may consider appropriate or desirable.

Procedures prescribed by the State Legislature 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.

In the absence of applicable procedures prescribed by the State Legislature, and to the extent that the same are not inconsistent therewith, the following provisions of this section shall govern the presentation, processing and payment of all claims and demands against the City.

All claims for damages against the City must be presented in writing to the City Clerk within 100 days after the occurrence, event or transaction from which the damages allegedly arose, and shall set forth in detail the name and address of the claimant, the time, date, place and circumstances of the occurrence and the extent of the injuries or damages sustained. All such claims shall be approved or rejected in writing by order of the City Council and the date thereof given.

All other demands against the City must be in writing and may be in the form of a bill, invoice, payroll or formal demand. Each such demand shall be presented to the Director of Finance within 100 days after the last item of the account or claim accrued. The Director of Finance shall examine the same. If the amount thereof is legally due and there remains on his books an unexhausted balance of an appropriation against which the same may be charged, he shall approve such demand and draw his warrant on the City Treasurer therefor, payable out of the proper fund. Otherwise he shall reject it. Objections of the Director of Finance may be overruled by the City Council and the warrant ordered drawn. The Director of Finance shall transmit such demand, with his approval or rejection thereof endorsed thereon and warrant, if any, to the City Administrator. If a demand is for an item included within an approved budget appropriation, it shall require the approval of the City Administrator before payment; otherwise it shall require the approval of the City Council, following the adoption by it of an amendment to the budget authorizing such payment. Any person dissatisfied with the refusal of the City Administrator to approve any demand, in whole or in part, may present the same to the City Council which, after examining into the matter, shall approve or reject the demand in whole or in part.

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 45 days from the day the same is presented 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 he shall determine, examine the books, records, inventories and reports of all officers and employees who receive, control, 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 final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member, one to the City Administrator, Director of Finance, Treasurer and City Attorney, respectively, and sufficient additional copies of the audit shall be placed on file in the Office of the City Clerk where they shall be available for inspection by the general public, and a copy of the financial statement as of the close of the fiscal year shall be published in the official newspaper.