Section 1. Fiscal Year: The fiscal year for the City shall commence on June 1 each year.
Section 2. General Authority and Tax Limit: The Council shall have the authority within the limits herein prescribed, to raise annually by taxation upon the real and personal property liable to taxation in said City, as in Section 2, Chapter 20, defined, such sums of money as may be necessary to defray the general expenses and pay the current liabilities of the City and carry into effect the powers in this Charter granted: provided, the aggregate amount thereof shall not exceed in any one year two percent of the assessed valuation of all real and personal property in the City.
Section 3. General Funds: The revenue so raised by general taxation or by loan to be repaid by such tax, shall be divided into such and so many funds and apportioned to the various general needs and purposes of said City as the Council may by ordinance or resolution determine.
Section 4. Council to Audit Books and Publish Statement: Within two weeks next preceding the annual City election, the Council shall audit and settle the accounts of the Treasurer and other officers of the City as of March 1, and so far as practicable, of all persons having claims against the City, and shall make out a statement in detail of the receipts and expenditures of the City during the preceding year, which statement shall distinctly show the amount of all taxes raised during the year for all purposes and the amount apportioned to each fund, the amount levied by special assessment (if any) and the amount collected on each; also the items and amounts received from all other sources during the year, also the several items of all expenditures made during the year, and the object thereof, classifying the same for each purpose separately and containing such other information as shall be necessary to a full understanding of the financial condition of the City. Said statement shall also show the amount and the items of all indebtedness outstanding against the City; and to whom payable, and upon what rate of interest; the amount of salary or compensation paid or payable to each officer of the City for the year, and such other information as shall be necessary to a full understanding of all the financial concerns of the City for the year. Such statements, signed by the Mayor and Clerk, shall be filed in the office of the Clerk and a copy thereof published in a newspaper of the City at least seven days previous to said annual election, if one is published therein.
Section 5. Board of Estimates, Annual City Budget: The Mayor and Clerk shall constitute a Board of Estimates. On or before the first Monday in May of each year, said Board of Estimates shall furnish to the Council estimates in writing of the probable expenses and liabilities and disbursements to be incurred and made by this City for the ensuing fiscal year, specifying in detail the probable purpose and fund for and to which expenditures are intended; estimating, covering and specifying for every purpose for which, in their opinion, any money will be required to be paid from any of the several funds of the City during the coming fiscal year: and also the estimated amount of revenue from all sources other than tax levy. The estimates thus made shall be styled the “Annual City Budget.” Said Board of Estimates shall make any and such further recommendations as to them may seem best. Said budget, when so prepared and completed shall be signed by said Board of Estimates and filed with the City Clerk.
Section 6. Public Hearing on Budget: The Council shall proceed to hold a public hearing on the “Annual City budget,” said hearing to be held in the month of May contemporaneous with or prior to the adoption of the annual appropriation ordinance. Notice of said public hearing shall be given by one publication in some newspaper of general circulation in the City, and in case there is no such newspaper, then by posting such notice in ten public places within said City at least ten days prior to said meeting and said notice to specify the day and hour of said meeting.
Section 7. Annual Appropriation Ordinance: The Council during the month of May, and after having held the public hearing on the annual City budget, and after the assessment roll shall have been certified to it by the Board of Review, as hereinafter provided, shall pass the annual appropriation ordinance, providing for and appropriating the several amounts required to defray the expenditures and liabilities of the corporation for the next fiscal year, to be apportioned to and among and payable from the several funds as estimated and determined upon, to be raised by tax with the next general City tax levy and to be paid into and apportioned among the several funds of the City; provided, the total amount so raised and appropriated shall not exceed the amount designated and recommended in said annual City budget, except by and upon a two-thirds vote of the City Council.
Section 8. No Expenditure Until Appropriated: No improvement, work, repairs, or expense to be paid out of any general fund, (excepting as herein otherwise provided) shall be ordered, commenced or contracted for, or incurred in any fiscal year unless in pursuance of an appropriation specially made therefore in the last preceding annual appropriation bill, nor shall any expenditure be made or any liability incurred in any year, for any such work, improvement, repairs, or for any purpose, exceeding the appropriation for that purpose in said bill.
Section 9. May Borrow in Anticipation of Taxes: The Council shall have the authority to raise money by loan in anticipation of the receipts from special or general assessments for the purpose of defraying the cost of the improvement, object or purpose for which the assessment was levied. Such loans shall not exceed the amount of the assessment for the completion of the whole work nor shall any such loan be negotiated and made nor any indebtedness incurred until after the general appropriation therefor has been approved or the special assessment has been determined, confirmed and levied. The Council is hereby authorized to pledge the credit of the City in support of any loan made under the provisions of this section.
Section 10. Funds Kept Separate: All moneys and taxes raised, loaned or appropriated for the purpose of any particular funds shall be paid into and credited to said fund and shall be applied to the purpose for which such moneys were raised and received, and to none other. Moneys not received or appropriated for any particular fund shall be credited to the general, or contingent fund, and moneys belonging to one fund shall not be transferred into any other fund except as permitted by Section 10, Chapter 21.
Section 11. Necessary Authority for Payment: No money shall be drawn from the Treasury except in pursuance of the authority and appropriation of the Council and upon warrants of the Clerk countersigned by the Mayor. Such warrant shall specify the fund from which it is payable, and shall be paid from no other fund.
Section 12. No Contract Until Money Appropriated: Neither the Council nor any officer or employee of the City shall have authority to make any contract involving the expenditure of public money, or impose upon the City any liability to pay money until a definite amount of money shall have been provided by an authorized bond issue or loan or regularly appropriated for the payment of all pecuniary liability of the City under such contract, or in consequence thereof to mature during the period covered by the contract and such contract, if made, shall be voidable at the option of the City; provided, that nothing herein contained shall prevent the Council from providing the payment of any expenses, the necessity for which is caused by any casualty, accident or public calamity arising after the passage of the annual appropriation ordinance, as contemplated in succeeding sections of this chapter.
Section 13. May Borrow Money For Emergency: If, during any fiscal year, there shall arise some unforseen emergency by which any bridge, street, sewer or public highway shall become dangerous to the public health, convenience or welfare, or by which it shall become a public necessity to expend money on the repair of any public building to an amount exceeding the sum then on hand available for that purpose, the Council shall so declare, by resolution, stating the circumstances which cause such conditions, which resolution shall thereupon declare an expenditure necessary to the public health, convenience or welfare and shall spread such resolution at large upon its minutes. Upon the passage of the above resolution at large, but not otherwise, the Council may borrow such sum, not exceeding fifteen hundred dollars ($1,500) as may be necessary to repair such damage or provide for such public health, convenience or welfare, which loan shall be included in the next annual budget, and, when collected, applied to the extinguishment of said debt; provided, however, that no new construction work shall be provided for in this manner. And in case a greater sum than fifteen hundred dollars ($1,500) be needed because of such emergency, then and in such case such further sum as may be needed may in like manner be borrowed for such purpose, provided such action shall be approved by the electors of the City when submitted to them at a general or special election called for that purpose.
Section 14. May Borrow Further for Emergency: In case of fire, flood or other calamity, the Council may borrow for the relief of the inhabitants of said City, and for the preservation of Municipal property in the City, a sum not exceeding one-fourth of one percent of the assessed valuation of all real and personal property in the City, such sum to be due and payable in not more than three years. For such loans, lawfully made, the bonds of the City may be issued, bearing a rate of interest not exceeding six percent.
Section 15. Bond, Authority and Requirements: Said City may also issue bonds for the purposes and in the manner permitted to villages, and particularly as provided by Chapter 9 of the aforesaid village Act, and more particularly as provided by sections thereof numbers 2747 to 2751 both inclusive, of the Compiled Laws of Michigan for 1915, subject only to the limitations of this Charter and the laws governing the incorporation of the City of Grand Blanc, provided all bond issues (excepting refunding bonds) shall be approved by a vote of three-fifths of the electors voting thereon.
Section 16. Must Appropriate for Bonds and Interest: It shall be the duty of said Council each and every year, so long as the City shall remain in debt, to include in the taxes levied, a sum not less than the amount of the bonds and interest coming due in said year.
Section 17. Bonds, Record of: The Clerk shall enter in a book kept for that purpose a record of all bonds and warrants issued, showing the date, number, amount, date of maturity and rate of interest, of each thereof, and for what issued.
Section 18. Debt Limitation: The Council is hereby prohibited from authorizing the creation of any liability or indebtedness against the City, in any one fiscal year, exceeding in the aggregate the amount of one half of one percent of the assessed valuation of the property of said City; nor shall it be lawful for said City ever to create an indebtedness from time to time to exceed, in the aggregate, eight percent of the then assessed valuation of the property of the City. This section shall not apply to special assessments, or other specific provisions and authorities of this Charter relative to light, power, water or public utility projects, as permitted by Chapter 22 and 23 and hereof, nor Sections 13 and 14 of this chapter. In case any sum or sums of money shall be borrowed by the Council, the same shall be paid out of the sum raised by taxes for such year if the payment is not otherwise provided for, and all sums of money borrowed by said City shall be applied to the purpose for which the sum was borrowed, and to no other purpose whatever.
Section 19. Maturity of Bond Issues: Every bond issue of the City shall be made payable within thirty years from the date of the issue, and shall contain on its face a statement specifying the object for which the same is issued; and if issued for the purpose of raising money for any public improvement, the particular improvement shall also be specified on the face of such bonds; provided, any bond issue which shall not be made to mature within five years, from date of issue shall be so divided and matured that some of said bonds shall mature serially each year after the first three years. And it shall be unlawful for any officer of the City to sign or issue any such bond unless such matters are set forth on the face of the same as aforesaid, or to use such bonds, or proceeds from the sale thereof for any other object then mentioned on the face of the bond.