3-1-1 PURPOSE.

   The purpose of this chapter is to establish policies and provide for rules and regulations governing the management of the financial affairs of the City.

3-1-2 FINANCE OFFICER.

   The Director of Administrative Services is the finance and Accounting Officer of the City and is responsible for the administration of the provisions of this chapter.

3-1-3 CASH CONTROL.

   1.   Deposit of Funds. All monies or fees collected for any purpose by any City officer shall be deposited through the Office of the finance officer. If any said fees are due to an officer, they shall be paid to the officer by check drawn by the finance officer and approved by the Council only upon such officer’s making adequate reports relating thereto as required by law, ordinance, or Council directive.

   2.   Deposits and Investments. All monies belonging to the City shall be promptly deposited in depositories selected by the Council in amounts not exceeding the authorized depository limitation established by the Council or invested in accordance with the City’s written investment policy and State law, including joint investments as authorized by Section 384.21 of the Code of Iowa.

(Code of Iowa, Sec. 384.21, 12B.10, 12C.1)

   3.   Petty Cash Fund. The finance officer shall be custodian of a petty cash fund not to exceed $150.00 for the payment of small claims for minor purchases, collect on delivery transportation charges and small fees customarily paid at the time of rendering a service, for which payments the finance officer shall obtain some form of receipt or bill acknowledged as paid by the vendor or agent. At such time as the petty cash fund is approaching depletion, the finance officer shall draw a check for replenishment in the amount of the accumulated expenditures and said check and supporting detail shall be submitted to the Council as a claim in the usual manner for claims and charged to the proper funds and accounts. It shall not be used for salary payments or other personal services or personal expenses.

   4.   Change Funds:

      A.   Finance Officer. The finance officer is authorized to draw a check on the Utilities Fund for establishing a change fund in the amount of $200.00 for the purpose of making change without commingling other funds to meet the requirements of the Utility Billing Department. The finance officer is further authorized to draw a check on the General Fund for establishing a change fund in the amount of $200.00 for the purpose of making change without commingling funds to meet the requirements of the Administrative Services Department. Said change funds shall be in the custody of the finance officer, who shall maintain the integrity of the fund.

      B.   Parks and Recreation Division. The finance officer is authorized to draw a check on the General Fund for establishing a change fund in the amount of $250.00 for the purpose of making change without commingling other funds to meet the requirements of the Parks and Recreation Division. Said change fund shall be in the custody of the Leisure Services Director and the Director shall maintain the integrity of the fund.

      C.   Library. The finance officer is authorized to draw a check on the General Fund for establishing a change fund in the amount of $500.00 for the purpose of making change without commingling other funds to meet the requirements of the Clive Public Library. Said change fund shall be in the custody of the Director of Library Services and the Director shall maintain the integrity of the fund.

      D.   Police Department. The finance officer is authorized to draw a check on the General Fund for establishing a change fund in the amount of $50.00 for the purpose of making change without commingling other funds to meet the requirements of the Police Department. Said change fund shall be in the custody of the Police Chief and the Police Chief shall maintain the integrity of the fund.

      E.   Aquatics Center and Campbell Park Concessions. The finance officer is authorized to draw two checks on the General Fund. One is for establishing a change fund in the amount of $1,500.00 for the purpose of making change without commingling other funds to meet the requirements of the Parks and Recreation Department at the Aquatics Center. The finance officer is authorized to draw a second check to establish a change fund for the Campbell Park Concessions in the amount of $500.00 for the purpose of making change without commingling other funds to meet the requirements of the Campbell Park Concessions. Said change funds shall be in the custody of the Recreation Coordinator of the Aquatics Center and the Recreation Manager respectively, and the Leisure Services Director shall maintain the integrity of the fund.

3-1-4 FUND CONTROL.

   There shall be established and maintained separate and distinct funds in accordance with the following:

   1.   Revenues. All monies received by the City shall be credited to the proper fund as required by law, ordinance, or resolution.

   2.   Expenditures. No disbursement shall be made from a fund unless such disbursement is authorized by law, ordinance, or resolution, was properly budgeted, and supported by a claim approved by the Council.

   3.   Emergency Fund. No transfer may be made from any fund to the Emergency Fund.

(IAC, 545-2.5[384, 388], Sec. 2.5[2])

   4.   Debt Service Fund. Except where specifically prohibited by State law, monies may be transferred from any other City fund to the Debt Service Fund to meet payments of principal and interest. Such transfers must be authorized by the original budget or a budget amendment.

(IAC, 545-2.5[384, 388], Sec. 2.5[3])

   5.   Capital Improvements Reserve Fund. Except where specifically prohibited by State law, monies may be transferred from any City fund to the Capital Improvements Reserve Fund. Such transfers must be authorized by the original budget or a budget amendment.

(IAC, 545-2.5[384, 388], Sec. 2.5[4])

   6.   Utility and Enterprise Funds. A surplus in a Utility or Enterprise Fund may be transferred to any other City fund, except the Emergency Fund and Road Use Tax Funds, by resolution of the Council. A surplus may exist only after all required transfers have been made to any restricted accounts in accordance with the terms and provisions of any revenue bonds or loan agreements relating to the Utility or Enterprise Fund. A “surplus” is defined as the cash balance in the operating account or the unrestricted retained earnings calculated in accordance with generally accepted accounting principles in excess of:

      A.   The amount of the expense of disbursements for operating and maintaining the utility or enterprise for the preceding three months; and

      B.   The amount necessary to make all required transfers to restricted accounts for the succeeding three months.

(IAC, 545-2.5[384, 388], Sec. 2.5[5])

   7.   Balancing Of Funds: Fund accounts shall be reconciled at the close of each month and a report thereof submitted to the Council.

3-1-5 OPERATING BUDGET PREPARATION.

   The annual operating budget of the City shall be prepared in accordance with the following:

   1.   Proposal Prepared. The finance officer is responsible for preparation of the annual budget detail, for review by the Mayor and Council and adoption by the Council in accordance with directives of the Mayor and Council.

   2.   Boards and Commissions. All Boards, Commissions, and other administrative agencies of the City that are authorized to prepare and administer budgets must submit their budget proposals to the finance officer for inclusion in the proposed City budget at such time and in such form as required by the Council.

   3.   Submission to Council. The finance officer shall submit the completed budget proposal to the Council each year at such time as directed by the Council.

   4.   Annual Statement.

(Code of Iowa, Sec. 24.2A(2))

      A.   On or before 4:00 p.m. on March 5 of each year, the City shall file, with the Department of Management, a report containing all necessary information for the Department of Management to compile and calculate amounts required to be included in the statement mailed under Paragraph B.

      B.   Not later than March 15, the County Auditor, using information compiled and calculated by the Department of Management shall send to each property owner or taxpayer within the County, by regular mail, an individual statement containing all of the required information as provided under Section 24.2(2)(B)(1-10) of the Code of Iowa.

      C.   The Department of Management shall prescribe the form for the report required under Paragraph A, the statements to be mailed under Paragraph B, and the public hearing notice required under Paragraph D.

      D.   The Council shall set a time and place for a public hearing on the City’s proposed property tax amount for the budget year and the City’s information included in the statements under Paragraph B. The proposed property tax hearing shall be set on a date on or after March 20 of the budget year immediately preceding the budget year for which the tax is being proposed. At the hearing, the Council shall receive oral or written testimony from any resident or property owner of the City. This public hearing shall be separate from any other meeting of the Council, including any other meeting or public hearing relating to the City’s budget, and other business of the City that is not related to the proposed property tax amounts and the information in the statements shall not be conducted at the public hearing. After all testimony has been received and considered, the governing body may decrease, but not increase, the proposed property tax amount to be included in the City’s budget.

         (1)   Notice of the public hearing shall be published not less than 10 nor more than 20 days prior to the hearing, in a newspaper published at least once weekly and having general circulation in the City. However, if the City has a population of 200 or less, publication may be made by posting in three public places in the City.

         (2)   Notice of the hearing shall also be posted and clearly identified on the City’s internet site for public viewing beginning on the date of the newspaper publication and shall be maintained on the City’s internet site with all such prior year notices.

         (3)   Additionally, if the City maintains a social media account on one or more social media applications, the public hearing notice or an electronic link to the public hearing notice shall be posted on each such account on a date no later than the date of publication of the notice.

         (4)   Failure of a newspaper to publish a required notice under this paragraph shall not be considered a failure of a political subdivision to provide required notice under this paragraph if all of the following conditions are met:

            a.   Notice of the public hearing was provided to each property owner and each taxpayer within the political subdivision in statements required under Subsection 2, Paragraph B.

            b.   The political subdivision can demonstrate to the County Auditor that the political subdivision provided sufficient time for the newspaper to publish the notice.

(Subsection 4 – Ord. 1152 – Oct. 24 Supp.)

   5.   Council Review. The Council shall review the proposed budget and may make any adjustments it deems appropriate in the budget before accepting such proposal for publication, hearing, and final adoption.

   6.   Notice of Hearing. Following, and not until the requirements of Subsection 4 of this section are completed, the Council shall set a time and place for public hearing on the budget to be held before April 30 and shall publish notice of the hearing not less than 10 nor more than 20 days before the hearing. A summary of the proposed budget and a description of the procedure for protesting the City budget under Section 384.19 of the Code of Iowa, in the form prescribed by the Director of the Department of Management, shall be included in the notice. Proof of publication of the notice under this subsection must be filed with the County Auditor.

(Code of Iowa, Sec. 384.16[3])

   7.   Copies of Budget on File. Not less than 20 days before the date that the budget must be certified to the County Auditor and not less than 10 days before the public hearing, the Clerk shall make available a sufficient number of copies of the detailed budget to meet the requests of taxpayers and organizations, and have them available for distribution at the offices of the Mayor and Clerk and at the City library.

(Code of Iowa, Sec. 384.16[2])

   8.   Adoption and Certification. After the hearing, the Council shall adopt, by resolution, a budget for at least the next fiscal year and the Clerk shall certify the necessary tax levy for the next fiscal year to the County Auditor and the County Board of Supervisors. The tax levy certified may be less than, but not more than, the amount estimated in the proposed budget submitted at the final hearing, unless an additional tax levy is approved at a City election. Two copies each of the detailed budget as adopted and of the tax certificate must be transmitted to the County Auditor.

(Code of Iowa, Sec. 384.16[5])

3-1-6 BUDGET AMENDMENTS.

   A City budget finally adopted for the following fiscal year becomes effective July 1 and constitutes the City appropriation for each program and purpose specified therein until amended as provided by this section.

(Code of Iowa, Sec. 384.18)

   1.   Program Increase. Any increase in the amount appropriated to a program must be prepared, adopted and subject to protest in the same manner as the original budget.

(IAC, 545-2.2[384, 388])

   2.   Program Transfer. Any transfer of appropriation from one program to another must be prepared, adopted and subject to protest in the same manner as the original budget.

(IAC, 545-2.3[384, 388])

   3.   Activity Transfer. Any transfer of appropriation from one activity to another activity within a program must be approved by resolution of the Council.

(IAC, 545-2.4[384, 388])

   4.   Administrative Transfers. The City Manager shall have the authority to adjust, by transfer or otherwise, the appropriations allocated within a specific activity without prior Council approval; provided, however, when such adjustments in any one activity aggregate $1,000.00 or 10 percent of the amount appropriated, whichever is greater, no further adjustments shall be made without approval by resolution of the Council. All such transfers shall be reported in writing at the next regular meeting of the Council following the transfer and recorded in the minutes for the information of the Council and the general public.

(IAC, 545-2.4[384, 388])

3-1-7 ACCOUNTING.

   The accounting records of the City shall consist of not less than the following:

   1.   Books of Original Entry. There shall be established and maintained books of original entry to provide a chronological record of cash received and disbursed.

   2.   General Ledger. There shall be established and maintained a general ledger controlling all cash transactions, budgetary accounts and for recording unappropriated surpluses.

   3.   Checks. Checks shall be prenumbered and signed by the Director of Administrative Services and the Mayor following Council approval, except as provided by Subsection 5 of this section.

   4.   Budget Accounts. There shall be established such individual accounts to record receipts by source and expenditures by program and activity as will provide adequate information and control for budgeting purposes as planned and approved by the Council. Each individual account shall be maintained within its proper fund and so kept that receipts can be immediately and directly compared with revenue estimates and expenditures can be related to the authorizing appropriation. No expenditure shall be posted except to the appropriation for the function and purpose for which the expense was incurred.

   5.   Immediate Payment Authorized. The Council may by resolution authorize the Director of Administrative Services to issue checks for immediate payment of amounts due, which if not paid promptly would result in loss of discount, penalty for late payment or additional interest cost. Any such payments made shall be reported to the Council for review and approval with and in the same manner as other claims at the next meeting following such payment. The resolution authorizing immediate payment shall specify the type of payment so authorized and may include, but is not limited to, payment of utility bills, contractual obligations, payroll and bond principal and interest.

   6.   Utilities. The finance officer shall perform and be responsible for accounting functions of the municipally owned utilities.