(A) The city shall operate under an annual budget ordinance adopted and administered in accordance with the provisions of this section. No moneys shall be expended from any governmental or proprietary fund except in accordance with a budget ordinance adopted pursuant to this section.
(B) Moneys held by the city as a trustee or agent for individuals, private organizations, or other governmental units need not be included in the budget ordinance.
(C) If in any fiscal year subsequent to a fiscal year in which the city has adopted a budget ordinance in accordance with this section, no budget ordinance is adopted, the budget ordinance of the previous fiscal year has full force and effect as if readopted.
(D) The budget ordinance of the city shall cover one fiscal year.
(E) Preparation of the budget proposal shall be the responsibility of the City Manager.
(F) The following standards shall apply to the form and detail in which the budget proposal is to be prepared.
(1) The budget proposal shall detail the raising of revenue from all sources, including grants and transfers, and the spending of money for specified programs, functions, activities, or objectives of the city, including all principal and interest due on debt, for the budget year. The total of anticipated revenues shall equal or exceed the total of proposed expenditures.
(2) The form of the budget proposal shall be consistent in form, to the extent practical, with the accounting system of the city.
(3) The budget proposal shall provide a complete program and financial plan for all funds for the budget year. It shall contain:
(a) A budget message, as specified in KRS 91A.030(7).
(b) A budget summary, as specified in division (F)(4) below, supported by:
1. An estimate of fund balance carry-forward, as specified in division (F)(5) of this section.
2. An estimate of all anticipated revenues of the city compared to previous years, as specified in division (F)(6) of this section.
3. Proposed expenditures compared to previous years, as specified in division (F)(7) of this section.
4. An estimate of anticipated transfers, as specified in division (F)(8) of this section.
(4) Budget summary. At the head of the budget proposal there shall appear a summary of the budget, which need not be itemized further than by principal sources of anticipated revenue and proposed expenditures by program, function, activity, or objective of the city, in such a manner as to present a simple and clear summary of the detailed estimates of the budget components.
(5) Fund balance carry-forward. Each fund balance available for appropriation shall be limited to the amount by which assets are estimated to exceed liabilities at the beginning of the budget year.
(6) Anticipated revenues; comparison with other years. In parallel columns opposite the several items of anticipated revenue there shall be placed:
(a) The amount of each item actually received during the next preceding fiscal year.
(b) The total of the amount of each item actually received to the time of preparation of the budget proposal plus anticipated receipts for the remainder of the current fiscal year estimated as accurately as possible.
(c) The amount of each item anticipated to be received during the budget year, estimated as accurately as possible.
(7) Proposed expenditures; comparison with other years. In parallel columns opposite the several items of proposed expenditures there shall be placed:
(a) The amount of each item actually expended during the next preceding fiscal year.
(b) The total of the amount actually expended to the time of preparation of the budget proposal plus the expenditures for the remainder of the current fiscal year estimated as accurately as possible.
(c) The amount of each item to be appropriated for the budget year.
(d) Actual expenditures may exceed any budget line item by up to 10% without amendment of the budget so long as the source of the excess funds is within the same fund as the line item being exceeded.
(8) Anticipated transfer from other funds. Any anticipated excess revenues, if legally available for general purposes and to the extent the excess is to be used to support other funds, shall be stated as a transfer item in the budget proposal.
(Ord., passed 5-18-81)
(G The budget proposal together with a budget message shall be submitted to Board of Commissioners not later than 30 days prior to the beginning of the fiscal year it covers. The budget message shall contain an explanation of the governmental goals fixed by the budget for the coming fiscal year; explain important features of the activities anticipated in the budget; set forth the reasons for stated changes from the previous year in program goals, programs, and appropriation levels; and explain any major changes in fiscal policy.
(H) (1) The Board of Commissioners may adopt the budget ordinance making appropriations for the fiscal year in such sums as it finds sufficient and proper, whether greater or less than the sums recommended in the budget proposal. The budget ordinance may take any form that the Board finds most efficient in enabling it to make the necessary fiscal policy decisions.
(2) No budget ordinance shall be adopted which provides for appropriations to exceed revenues in any one fiscal year.
(I) The full amount estimated to be required for debt service during the budget year shall be appropriated, for all governmental fund types.
(J) The Board may amend the budget ordinance at any time after the ordinance's adoption, so long as the amended ordinance continues to satisfy the requirements of this section.
(K) Administration and implementation of an adopted budget ordinance shall be the responsibility of the City Manager. Such responsibility includes the preparation and submission to the Board of Commissioners of operating statements, including budgetary comparisons of each governmental fund for which an annual budget has been adopted. Such reports shall be submitted not less than once every three months in each fiscal year.
(L) To the extent practical, the system utilized in the administration and implementation of the adopted budget ordinance shall be consistent in form with the accounting system called for in § 37.02.
(M) No city agency, or member, director, officer, or employee of any city agency, may bind the city in any way to any extent beyond the amount of money at that time appropriated for the purpose of the agency. All contracts, agreements, and obligations, express or implied, beyond such existing appropriations are void; nor shall any city officer issue any bond, certificate, or warrant for the payment of money by the city in any way to any extent, beyond the balance of any appropriation made for the purpose.
(KRS 91A.030)