(A) Definitions. For the purpose of this section the following definitions shall apply unless the context clearly indicates or requires a different meaning.
(1) BUDGET OFFICER.
The Mayor.
(2) BUDGET YEAR.
The fiscal year for which a budget is made.
(3) CHIEF FINANCIAL OFFICER.
The City Clerk/Treasurer.
(4) CURRENT YEAR.
The fiscal year in which a budget is prepared and adopted, that is the fiscal year next preceding the budget year.
(5) PREVIOUS YEAR.
The last complete fiscal year before the current year.
(B) Purpose. The purpose of this section is to adopt rules governing the City Council in its proceedings for administering the financial affairs of the city, and to establish a standard procedure for the making and administration of budgets, to place responsibility for the tasks related to budget preparation and administration, the determination of the amount of taxes and other revenues in such manner that budgets may be balanced on the basis of actual cash receipts within the budget period, the establishment of appropriations, the payment of debt and the control of other expenditures. Its provisions are intended to enable the Council to make financial plans for both current and capital expenditures, and to permit taxpayers and investors to form intelligent opinions based on sufficient information as to the financial policies and administration of the city. For the accomplishment of this purpose, the provisions of this section shall be broadly construed, and shall be in effect until repealed or amended. This section may be repealed or amended by a majority vote of the Council in the same manner as required by the Kentucky Revised Statutes.
(C) Powers and duties. Within the provisions and for the purpose of this section, officers and employees shall have the power and be subject to the duties expressly stated or necessarily implied.
(D) Fiscal Year. The fiscal year shall begin on the first daf July of each year.
(E) Procedure for adoption of budget.
(1) Preparation and Submission of Budget. The Budget Officer after review of the City Council Finance Committee, shall submit to the City Council a budget and an explanatory budget message. The budget shall include the following:
(a) Organization units within the department or agency;
(b) Object of expenditure- personal services, contractual services, materials and supplies, other expenses, capital outlay, and such other supporting data as necessary.
(2) Adoption of budget. The budget shall be adopted by the favorable votes of at least a majority of all the members of the governing body.
(3) Effective date of budget; certification; copies. Upon final adoption, the budget shall be in effect for the budget year. A copy of the budget, as finally adopted, shall be certified by the Budget Officer and the Clerk/Treasurer and filed in the office of the Chief Financial Officer. The budget, so certified, shall be printed or otherwise reproduced and sufficient copies thereof shall be made available for the use of all offices, department and agencies and for the use of interested persons and civic organizations. A summary shall be published in accordance with KRS 424.240.
(4) Budget established appropriations. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes therein named.
(F) Contents and form of budget.
(1) Budget.
(a) The budget shall provide a complete program and financial plan for all general fund revenues for the budget year. It shall contain in tabular form:
1. A general summary;
2. Detailed estimates of all anticipated revenues applicable to proposed expenditures;
3. All proposed expenditures.
(b) The total of such anticipated revenues shall equal the total of such proposed expenditures.
(2) Proposed expenditures. The proposed expenditures shall be itemized as set out in division (E)(1) and each item numbered generally in accordance with the classification system recommended in the Kentucky Municipal Accounting Manual. Separate provisions shall be included in the budget for at least:
(a) Administration, operation and maintenance of each office, department or agency of the city supported by the general fund;
(b) Contingent expense in an amount not more than 5% of the total revenue estimated for the budget year;
(c) Expenditures proposed for capital projects.
(3) Budget summary. At the head of the budget there shall appear a summary of the budget, which need not be itemized further than by principal sources of anticipated revenue, stating separately the amount to be raised by property tax, and by departments and kinds of expenditures, in such a manner as to present to taxpayers a simple and clear summary of the detailed estimates of the budget.
(G) Approval of expenditures.
(1) The Budget Officer shall have charge of the administration of the financial affairs of the city and to that end shall supervise and be responsible for the disbursement of all moneys and have control over all expenditures to insure that appropriations are not exceeded. He shall exercise financial budgetary control over each office, department and agency and shall cause separate accounts to be kept for the items of appropriation contained in the budget, each of which accounts shall show the amount of the appropriation, the amounts paid therefrom, and the unencumbered balance. The same classification and numbering system used in the budget and required by division (F) (2) shall be used. Unless he shall certify that there is sufficient unencumbered balance available, no expenditure shall be made.
(2) Transfers of appropriations. The Budget Officer may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within a departmental unit. At the request of the Budget Officer the City Council may by ordinance transfer one departmental unit to another.
(3) When contracts and expenditures prohibited. No office, department or agency shall, during any budget year, expend or contract to expend any money or incur any liability, or enter into any contract which by its terms involves the expenditure of money for any purpose in excess of the amounts appropriated for that general classification of expenditure pursuant to this section. Any contract, verbal or written, made in violation of this section shall be null and void.
(4) Appropriations lapse at end of year. All appropriations shall lapse at the end of the budget year to the extent that they shall not have been expended or lawfully encumbered.
(H) Emergency appropriations and borrowing.
(1) Emergency appropriations.
(a) At any time in any budget year, the governing body may, pursuant to this division, make emergency appropriations to meet a pressing need for public expenditure, for other than a regular or recurring requirement, to protect the public health, safety or welfare.
(b) The appropriation shall be by ordinance adopted by the favorable votes or at least a majority of the members of the governing body. The total amount of all emergency appropriations made in any budget year shall not exceed the amount of unanticipated actual revenue in excess of the budget estimates, plus transfers from other appropriations.
(2) Borrowing in anticipation of taxes. In any budget year in anticipation of the collection of the revenues for the budget year, but not in excess of fifty percent (50%) of such revenue then collected, the governing body may by resolution borrow money and issue negotiable notes of the city.
(Old Code, § 220.10) (Ord. 286, passed 5-5-75)
Statutory reference:
For statutory provisions concerning the annual budget ordinance, see KRS 91A.030