Watsonville Municipal Code Art. XI Fiscal Administration

SECTION 1101 FISCAL YEAR.

Unless otherwise provided by ordinance, 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 of the following year.

SECTION 1102 TAX SYSTEM.

The Council shall provide a system for the assessment, levy and collection of city taxes upon property. The Council may by ordinance adopt at any time any provision made by the general laws of the State of California for the assessment, levy and collection, or either, of the City taxes by and through the officers of the County, or other public agency.

SECTION 1103 BUDGET: PREPARATION AND SUBMISSION.

At least thirty (30) days prior to the beginning of each fiscal year, the City Manager shall submit to the Council a proposed budget for the ensuing fiscal year. The budget shall provide a complete financial plan for the budget year. It shall include the following:

(a) An itemized statement of estimated income and revenues from all sources for the year which the budget is to cover;

(b) An itemized statement of the proposed expenditures recommended by the City Manager for each office, department, or agency for the year which the budget is to cover;

(c) The probable amount required to be levied and raised by property taxation; and

(d) Such other information as the City Manager may deem essential, or as the Council may require.

SECTION 1104 BUDGET: PUBLIC HEARING.

Upon receipt of the proposed budget from the City Manager, the Council shall proceed to consider the proposed budget and may increase, decrease or omit any item or insert new items therein. Before adopting the budget, the Council shall fix the time and place for holding a public hearing on the proposed budget and shall cause a notice thereof to be published not less than ten (10) days prior to said hearing in a newspaper of general circulation in the City or if there is none, the Clerk shall cause it to be posted or published as otherwise allowed according to State law. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten (10) days prior to said hearing. At the time and place so advertised, or at any time and place to which such public hearing shall from time to time be adjourned, the Council shall hold a public hearing on the proposed budget at which interested persons desiring to be heard shall be given such opportunity. [§ 1104 Amended by voter petition initiative on 11/5/24. Measure W]

SECTION 1105 BUDGET: FURTHER CONSIDERATION AND ADOPTION.

After the conclusion of the public hearing, the Council shall further consider the proposed budget and make any revisions thereto that it may deem advisable; provided, however, that if it shall increase the total proposed expenditures, the Council shall also increase the total anticipated revenues, but not beyond the reasonably anticipated revenues, so that the same, together with reasonable expected surpluses will at least equal such total expenditures. Thereafter, but prior to the beginning of the ensuing fiscal year, the Council shall adopt the budget with revisions, if any. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. A copy of the adopted budget, certified to by the City Clerk, shall be placed 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 use of all officers, offices, departments and other agencies of the City and for use by civic organizations.

SECTION 1106 TAX LEVY.

The Council shall determine the amount of money required to be raised by a tax sufficient to meet the obligations of the City to the State Employees’ Retirement System, or other system for the retirement of City Employees, as described in Section 1122 herein. The tax shall not exceed 7.7 cents on each One Hundred and no/100th ($100.00) Dollars of assessed value. [§ 1106 Amended by voter petition initiative on 11/5/24. Measure W]

SECTION 1107 BUDGET: APPROPRIATIONS.

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several offices, agencies and departments for the respective objects and purposes therein specified. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered, except as otherwise provided by this Charter.

At any meeting after the adoption of the budget the Council may amend or supplement the budget so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not appropriated in the budget.

No officer, department or agency of the City shall, during any fiscal year, expend or incur any obligation to expend money for any purposes not authorized by or in excess of the amounts appropriated by any budget, as amended, for a given classification or expenditure.

SECTION 1108 BUDGET MESSAGE: CURRENT OPERATIONS.

The budget message submitted by the City Manager to the Council shall be explanatory of the budget, shall contain an outline of the proposed financial policies of the City for the budget year and shall describe in connection therewith the important features of the budget plan. It shall set forth the reasons for salient changes from the previous year in cost and revenue items and shall explain any major changes in financial policy.

SECTION 1109 BUDGET MESSAGE: CAPITAL IMPROVEMENTS.

As a part of the budget message, with relation to the down-payments and other proposed expenditures for capital projects as stated in the budget, the City Manager shall include a statement of pending capital projects and proposed new capital projects, relating the respective amounts proposed to be raised therefor by appropriations in the budget, and the respective amounts, if any, proposed to be raised therefor from other sources during the budget year.

SECTION 1110 BUDGET MESSAGE: CAPITAL PROGRAM.

The City Manager shall also include in the message, or attach thereto, a program of proposed public improvements for the ensuing five (5) year period prepared by the Planning Commission in accordance with Section 907 (b), together with comments thereon. [§ 1110 Amended by voter petition initiative on 11/5/24. Measure W]

SECTION 1111 FUNDS: GENERAL FUND.

All moneys paid into the City treasury shall be credited to and kept in separate funds in accordance with the provisions of this Charter, State law or ordinance. For the purpose of this Charter, the "General Fund" is established as a medium of control and accounting for City activities other than activities authorized or contemplated by special funds. All revenue and receipts which are not by this Charter, State law or ordinance pledged for special purposes shall be credited to the General Fund.

SECTION 1112 FUNDS: CASH BASIS.

The Council shall maintain a revolving fund to be known as the "Cash Basis Fund" for the purpose of placing the payment of the running expenses of the City on a cash basis. A reserve shall be built up in this fund from any available sources other than restricted funds in an amount which the Council deems sufficient with which to meet all lawful demands against the City for the first five (5) months or other necessary period of the succeeding fiscal year prior to the receipt of ad valorem tax revenues. Transfers may be made by the Council from such fund to any other fund or funds of such sum or sums that may be required for the purpose of placing such funds as nearly as possible on a cash basis. All moneys so transferred from the Cash Basis Fund shall be returned thereto before the end of the fiscal year.

SECTION 1113 FUNDS: CAPITAL OUTLAYS FUND.

The Council may create by ordinance or resolution a special fund or funds for a special capital outlay purpose. The 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 electorate 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 Council may transfer any unexpended or unencumbered surplus remaining in such fund to the fund for capital outlays generally. [§ 1113 Amended by voter petition initiative on 11/5/24. Measure W]

SECTION 1114 OTHER FUNDS.

The Council may provide, by ordinance, for the establishment and maintenance of such other special funds as it deems necessary for the proper administration of the fiscal affairs of the City.

SECTION 1115 INDEPENDENT AUDIT.

The Council shall employ at the beginning of each fiscal year an independent accountant, who holds a valid license from the California State Board of Accountancy, who shall audit the books, records and accounts of all officers and employees of the City who receive, administer or disburse public funds, and such other officers, employees, departments and agencies as the Council may direct. Such audit shall be made at such times as may be prescribed by the Council, but shall be at least annually and shall be a complete continuous audit. The Council shall have the right to order a special audit of any particular department or division of the City government at any time. Such accountant at all times shall abide by the current and most accepted standards of municipal accounting.

As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such independent accountant to the Council, one (1) copy thereof to be distributed to each member thereof, one (1) copy to the City Manager and City Attorney, respectively, three (3) copies to be placed on file in the office of the office of the City Clerk where they shall be available for public inspection, together with as many more such copies as may be required.

SECTION 1116 BONDED DEBT LIMIT.

The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of fifteen (15%) percent of the total assessed valuation for purposes of City taxation of all the real and personal property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending or maintaining municipal utilities for which purpose a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and of this Charter.

No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative votes of two-thirds (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.

SECTION 1117 PUBLIC BID REQUIREMENTS.

Every expenditure of City moneys for public works construction as hereafter defined of more than that amount set forth in Section 20162 of the Public Contracts Code of the State of California shall be let to the lowest responsible bidder after notice of publication in a newspaper of general circulation in the City, in accordance with state law when such newspaper does not exist, by one (1) or more insertions, the first of which shall be at least ten (10) days before time for opening bids; provided, however, that upon adoption of ordinance by the Council the "Uniform Public Construction Cost Accounting Act" set forth in Chapter 2 (commencing with Section 21000) to Part 3 of Division 2 of the Public Contracts Code, an alternative public bidding procedure, shall be enacted to have the City be subject to such procedure notwithstanding other procedure set forth in this Section.

The Council may reject any and all bids presented and may re-advertise in its discretion. The Council after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the City Manager the work in question may be performed better or more economically by the City with its own employees and after the adoption of a resolution to this effect by at least five (5) affirmative votes of the Council may proceed to have said work done in the manner stated, without further observance of the provisions of this Section.

Such expenditures may be made without advertising for bids, if such expenditures shall be deemed by the Council to be of urgent necessity for the preservation of life, health or property and shall be authorized by resolution passed by at least five (5) affirmative votes of the Council and containing a declaration of the facts constituting the urgency.

All bids for public works construction shall be accompanied by either a certified or cashier’s check or a bidder’s bond executed by a corporate surety authorized to engage in such business in California made payable to the City. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified, then in an amount not less than ten (10%) percent of the aggregate amount of the bid. If the successful bidder neglects or refuses to enter into the contract within the time specified in the notice inviting bids or specifications referred to therein, the amount of the bidder’s security may be declared forfeited to the City and may be collected and paid into its General Fund and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund.

For the purposes of this Section, public works construction shall be defined as a project for the erection or improvement of public buildings, streets, drains, sewers, parking lots, parks or playgrounds, provided, however, that expenditures for the extension, improvement or development of the City water system shall be excepted from the requirements of this Section. Maintenance or repair of public buildings, streets, drains, sewers, parking lots, parks or playgrounds shall not be considered as public works construction. The provisions of this Section shall not apply to materials, supplies or equipment obtained or purchased from any governmental agency, or for materials, supplies or equipment which can be obtained from only one vendor.

All bids shall be sealed and be filed with the officer in charge of the purchasing function no later than the opening time specified in the notice inviting bids, who shall receive and be custodian of such bids and keep the same confidential until they are opened and declared.

All bids shall be publicly opened and declared at the time and the place fixed in the notice inviting bids.

Thereafter, the bids shall be tabulated and analyzed by the officer in charge of the purchasing function, who shall submit them, together with recommendations thereon, to the City Manager. The City Manager shall review the bids and submit them to the Council, along with recommendations, at the next regular meeting of the Council.

The Council shall have the right to waive any informality or minor irregularity in a bid. [§ 1117 Amended by voter petition initiative on 11/5/24. Measure W]

SECTION 1118 CONTRACTS FOR OFFICIAL ADVERTISING. DELETED IN ITS ENTIRETY PER MEASURE W (ELECTION HELD NOVEMBER 5, 2024)

SECTION 1119 PRESENTATION OF DEMANDS.

Demands against the City shall be presented and audited as prescribed by ordinance. No suit shall be brought for money or damages against the City or any board, commission, or officer thereof until a claim or demand for the same has been presented 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 sixty (60) days from the day the same is presented shall be deemed a rejection thereof.

SECTION 1120 CENTRALIZED PURCHASING PROCEDURE.

Under the control and direction of the City Manager there shall be established a centralized purchasing system for all City departments and agencies, which system shall be consistent with all the provisions of this Charter. When making purchases for the City, merchants with places of business located within the City shall be given preference if service, quality and prices are equal.

SECTION 1121 REGISTERING WARRANTS.

Warrants on the City treasury 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 therefore are available and shall bear interest from the date of registration at such rate as shall be fixed by the Council.

SECTION 1122 TAX LIMITS.

(a) Additional Taxes. There shall be levied and collected, as additional taxes, at the time and in the same manner as other property taxes for municipal purposes are levied and collected if no other provision for the same is made:

(1) A tax sufficient to meet all obligations of the City to the State Employees’ Retirement System, or other system for the retirement of City employees, due and unpaid or to become due during the ensuing fiscal year.

(2) The tax provided for in Subdivision (b)(2) of this section shall not be collected at a rate exceeding 7.7 cents on each One Hundred and no/100th ($100.00) Dollars of assessed value. [§ 1122 Amended by voter petition initiative on 11/5/24. Measure W]

SECTION 1123 CONTROL AND USE OF MUNICIPAL UTILITY FUNDS.

All revenue derived from the operation of each municipal utility shall be kept separate and apart from all other moneys of the City and shall be applied in the following order:

(a) For the payment of interest on the bonded debt incurred for the construction, acquisition, operation or extension of such utility;

(b) For the payment, or provision for the payment, of the principal of said debt as it may become due;

(c) For capital expenditures of such utility;

(d) For the annual payment into the Depreciation Reserve Fund of a sum which, according to the estimate of the City Manager, and approved by the Council, shall be sufficient to meet the normal depreciation of said utility. Such depreciation funds shall be used only for the replacement, betterment or extension of said utility. Any reserve for depreciation of such utility accumulated prior to the effective date of this Charter shall be paid into said Depreciation Reserve Fund and shall be subject to the provisions of this Section covering said Fund;

(e) For the payment of the operating and maintenance expenses of such utility; and

(f) The remainder may be paid into the General Fund.

SECTION 1124 SALE OF PUBLIC UTILITIES.

No public utility now or hereafter owned or controlled by the City shall be sold, leased or otherwise transferred unless approved by the affirmative vote of the majority of the electors voting on such proposition at a general or special election at which such proposition is submitted.