CHAPTER 7
TAXATION AND FINANCE

   Section 7.01.   Council to control finances.The council is responsible for the financial affairs of the city. The council must provide for the collection of revenues, the safekeeping of assets, the auditing and settlement of accounts, and the safekeeping and disbursements of public monies. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.02.   Fiscal year.The fiscal year of the city is the calendar year. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.03.   System of taxation.Subject to the state constitution, and except as forbidden by it or by law, the council may provide by ordinance for a system of local taxation. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.04.   Submission of the budget.The city manager must prepare an annual budget and submit it to the council by September 1 or some other date fixed by law. The budget must provide a complete financial plan for city funds and activities for the ensuing fiscal year. The budget is in a form recommended by the city manager or specified by the council with necessary modifications required by law. The budget must show in summary and in detail estimated income and proposed expenditures, including debt service and comparative figures for the current fiscal year, actual and estimated, and for the preceding fiscal year. The budget must show proposed expenditures for current operations. The budget must show proposed capital expenditures for the ensuing year and the proposed method of financing those capital expenditures.The budget must show anticipated net surplus or deficit and the proposed method of disposing of the surplus or deficit for each utility operated by the city not under the jurisdiction of the public service commission. Subsidiary budgets for each such utility, showing income and expenditure information must be included in the budget or attached as appendices. The budget may contain the preliminary and tentative budget of the public service commission. The proposed budget to be funded by property tax levies may not exceed the amounts authorized by law and this charter. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.05.   Annual audit.The manager must provide for an annual audit and financial statement of the city's finances by either the state auditor or a firm of certified public accountants. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.06.   Council action on the budget.The budget must be considered by the council no later than the first regular meeting of the council in October or as otherwise required by law. The council must consider the budget at subsequent meetings until a budget is adopted. The council must give interested citizens a reasonable opportunity to be heard at the budget meetings. The sums appropriated by the budget may not exceed the estimated revenues and reserves available to fund the expenditures in the budget. The council must adopt the budget by resolution not later than the date provided by law. The budget resolution must state the total amount of each budgeted fund and of each department, with segregation of objects and purposes of expenditures as deemed necessary by the council. The budget resolution or a separate, related resolution of the council must levy sufficient taxes to provide adequate revenues for the budgeted expenditures. The clerk must certify the budget resolution or tax resolution, as the case may be, to the county auditor in accordance with law. The sums fixed in the budget resolution are appropriated for the purposes identified in the budget resolution. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.07.   Enforcement of the budget.The city manager must enforce the budget. The manager may not approve a payment or the incurring of an obligation by the city unless funds for the payment or obligation are appropriated by the budget and there is a sufficient unexpended balance in the appropriation after deducting prior expenditures and encumbrances against the appropriation. An officer or employee of the city may not place an order or make a purchase for the city unless the order or purchase is authorized in the budget. An obligation incurred by an officer or employee of the city for a purpose not authorized in the budget or for an amount in excess of the amount is the personal obligation of the person incurring the obligation. A city check drawn on the treasury or other transfer of funds to a person or entity other than the city may not be issued or paid until the claim to which the payment relates has been documented by an itemized bill, payroll time sheet or other document approved and signed by a responsible city officer who vouches for its correctness and reasonableness. The city manager must report to the council from time to time on the status of the budget and the expenditures from and balances in the budget accounts and funds. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.08.   Alterations in the budget.The council may not increase the amounts appropriated in the budget resolution beyond the estimated revenues except to the extent that actual receipts exceed the estimated revenues. The council may by resolution reduce an appropriation for any purpose in the budget or authorize the transfer of sums from unencumbered appropriations in the budget to other purposes. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.09.   Funds to be kept.There must be maintained in the city treasury a general fund and the other funds required by law, this charter, ordinance, the budget resolution or other resolution. The council may by resolution make interfund loans except from trust or agency funds. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.10.   City indebtedness.Except as otherwise provided in this chapter and law, obligations of the city may not be issued to pay current expenses, but the council may issue and sell its obligations for any other municipal purpose in accordance with law and within the limits prescribed by law. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)

   Section 7.11.   Anticipation certificates.At any time after January 1 the council may issue certificates of indebtedness in anticipation of state and federal aid and the collection of taxes levied in the previous year for any fund but not yet collected. The total amount of certificates issued against a fund for a fiscal year together with interest thereon until maturity may not exceed the total of state or federal aid and current taxes due to the fund and uncollected at the time of issuance. The certificates may be issued on terms and conditions determined by the council. The certificates must mature not later than April 1 of the year following their issuance. The proceeds of the tax levied for the fund and the state or federal aids allocated to the fund against which the certificates are issued, together with the full faith and credit of the city, must be irrevocably pledged for the payment of the certificates at maturity or earlier redemption. (Ord. 95-1, 4-17-1995, eff. 7-17-1995)