Article XI — FISCAL ADMINISTRATION

SECTION 1100. - Fiscal Year.

The fiscal year of the city government shall begin on the first day of July of each year and end on the thirtieth day of June of the following year.

SECTION 1101. - Annual Budget; Preparation by the City Manager.

At such date as the city manager shall determine, each department head shall furnish to the city manager estimates of revenue and expenditures for his/her department, detailed in such manner as may be prescribed by the city manager. In preparing the proposed budget, the city manager shall review the estimates, hold conferences thereon with the respective department heads and may revise the estimates as he/she may deem advisable.

(Ord. No. 3112, § 2, 2-25-20)

SECTION 1102. - Budget, Submission to City Council.

At least thirty-five days prior to the beginning of each fiscal year, the city manager shall submit to the city council the proposed budget as prepared by him/her. 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 ten 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 ten days prior to said hearing.

(Ord. No. 3112, § 2, 2-25-20)

SECTION 1103. - Budget, Public Hearing.

At the time so advertised or at any time which such public hearing shall from time to time be adjourned, the city council shall hold a public hearing on the proposed budget, which interested persons desiring to be heard shall be given such opportunity.

SECTION 1104. - Budget Adoption.

After the conclusion of the public hearing the city council shall make any revisions of the proposed budget that it may deem advisable and on or before June 30, it shall adopt the budget. A copy thereof, certified by the city clerk, shall be filed with the person retained by the city council to perform auditing functions for the council 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.

SECTION 1105. - 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 departments, offices and agencies for the respective objects and purposes therein named. 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 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 three members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose or to appropriate available funds not included in the budget or to cancel any appropriation not expended or encumbered.

SECTION 1106. - Centralized Purchasing.

Under the control and direction of the city manager there shall be established a centralized purchasing system for all city departments and agencies.

SECTION 1107. - Tax Limits.

(a)

The city council shall not levy a property tax for municipal purposes, except as otherwise provided in this section, in excess of one dollar annually on each one hundred dollars of the assessed value of taxable property in the city, unless authorized by the affirmative votes of two-thirds of those electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition.

(b)

There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, in addition to the above limit, if no other provision for payment thereof is made:

(1)

A tax sufficient to meet all liabilities of the city for principal and interest of all bonds and judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the city; and

(2)

A tax sufficient to meet all obligations of the city to the State Employees' Retirement System for the retirement of city employees, due and unpaid or to become due during the ensuing fiscal year.

(c)

Special levies, in addition to the above limits, may be made annually for the purposes, within the limits, and to the extent that cities of the sixth class may make special levies in addition to their general tax limit, under the codes and statutes of the state as they may exist from time to time.

The proceeds of any such special levy shall be used only for the respective purposes for which it is levied.

SECTION 1108. - Tax Procedure.

The procedure for the assessment, levy and collection of taxes upon property, taxable for municipal purposes, may be prescribed by ordinance of the city council.

SECTION 1109. - 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 per cent 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 two-thirds of those 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 1110. - Contracts on Public Works.

Every project for the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks or playgrounds, and every purchase of supplies or materials for any such project when the total expenditures for the same exceed the sum of $10,000.00, shall be let by the city council by contract to the lowest responsible bidder after notice by publication in the official newspaper by two or more insertions; the first of which shall be at least ten days before the time for opening bids. Projects for the maintenance or repair of streets, drains or sewers are excepted from the requirements of this paragraph if the city council determines that such work can be performed more economically by a city department than by contracting for the doing of such work.

All bids 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 per cent 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 in the specifications referred to therein, the amount of his/her bidder's security shall be declared forfeited to the city and shall be collected and paid into the general fund, and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund.

The city council may reject any and all bids presented and may re-advertise in its discretion.

The city council, without advertising for bids, or 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 or the supplies or materials may be purchased more economically on the open market, and after the adoption of a resolution to this effect by at least four affirmative votes of the council may proceed to have said work done or said supplies or materials purchased in the manner stated, without further observance of the provisions of this section. Such contracts likewise may be let without advertising for bids, if such work or supplies or materials shall be deemed by the city council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by resolution passed by at least four affirmative votes of the council and containing a declaration of the facts constituting such urgency.

(Ord. No. 3112, § 2, 2-25-20)

SECTION 1111. - Cash Basis Fund.

The city 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 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 ad valorem tax 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. All moneys so transferred from the cash basis fund shall be returned thereto as soon as sufficient tax moneys are apportioned and in any event before the end of the fiscal year.

SECTION 1112. - Capital Outlays Fund.

A fund for capital outlays generally is hereby created, to be known as the "capital outlays fund." The city council may create by ordinance a special fund or funds for a special capital outlay purpose. The city council may levy and collect taxes for capital outlays and may include in the annual tax levy a levy for such purposes in which event it must apportion and appropriate to any such fund or funds the moneys derived from such levy. It may not, in making such levy, exceed the maximum tax rate provided for in this charter, unless authorized by the affirmative votes of two-thirds of those 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 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 those 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 or unencumbered surplus remaining in such fund to the fund for capital outlays generally, established by this charter.

SECTION 1113. - Presentation of demands

All claims for damages against the city must be verified and presented to the city clerk within ninety days after the occurrence, event or transaction from which the damages allegedly arose, or within such shorter time as is otherwise provided by law, 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 controller within ninety days after the last item of the account or claim accrued. The controller shall examine the same. If the amount thereof is legally due and there remains on his/her books an unexhausted balance of an appropriation against which the same may be charged, he/she shall approve such demand and draw his/her warrant on the city treasurer therefor, payable out of the proper fund. Otherwise he/she shall reject it. Objections of the controller may be overruled by the city council and the warrant ordered drawn. [8]

The controller shall transmit such demand, with his/her approval or rejection thereof endorsed thereon, and warrant, if any, to the city manager. If a demand is one for an item included within an approved budget appropriation, it shall require the approval of the city manager, 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 manager to approve any demand, in whole or in part, may present the same to the city council which, after examining into the matter, may approve or reject the demand in whole or in part.

(Memo of 6-22-15; Ord. No. 3112, § 2, 2-25-20)

Note— Ninety-day limit is not enforced as it conflicts with State law that establishes a six-month limit.

SECTION 1114. - Registering Warrants.

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.

SECTION 1115. - Actions Against City.

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 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 pr demand within sixty days from the day the same is presented shall be deemed a rejection thereof.

SECTION 1116. - Independent Audit.

The city council shall employ at the beginning of each fiscal year, a qualified certified public accountant who shall, at such time or times as may be specified by the city council, and at such other times as he/she shall determine, examine the books, records, inventories and reports of all officers and employees who receive, 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 a report shall be submitted by such accountant to the city council, one copy thereof to be distributed to each member, one to the city manager, controller, 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 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. [9]

(Memo of 6-22-15; Ord. No. 3112, § 2, 2-25-20)

Note— Lengthiness of the modern audit makes cost of publication prohibitive so City now publishes a notice that the audit is available for review at city hall, libraries, and online.