7.05 FUND CONTROL.

   There shall be established and maintained separate and distinct funds in accordance with State recommendations: 

      1.   General Funds

      2.   Special Revenue Funds

      3.   Debt Service Funds (Except where specifically prohibited by State law, moneys may be transferred from any other City fund to the Debt Service Fund to meet payments of principal and interest.)

      4.   Capital Project Funds

      5.   Permanent Funds

      6.   Governmental Activities

      7.   Enterprise/Business Funds

      8.   Internal Service Funds

      9.   Fiduciary Funds (Non-Budgetary)

7.06 REVENUES.

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

7.07 DISBURSEMENTS.

   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. 

7.08 TRANSFERS.

   All transfers must be authorized and approved by the Council by resolution.

7.09 BALANCING OF FUNDS.

   Fund accounts shall be reconciled at the close of each month and a report thereof submitted to the Council.

7.10 OPERATING BUDGET PREPARATION.

   The City Administrator and City Clerk are 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.

7.11 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.   Administrative Transfers.  The Clerk shall have the power to make transfers between objects of expenditure accounts budgeted within programs/functions without prior Council approval.

      4.   Activity/Sub-Program Transfers.  The Clerk shall have the power to make transfers between activities, or between sub-programs without prior Council approval to meet expenditures that exceed estimates or are unforeseen but necessary to carry out Council directives or to maintain a necessary service and provide the required appropriation balance.  When a given transfer, considering all previous transfers to or from an activity, causes the total change in the appropriation for any activity to exceed by ten percent greater or ten percent less than the original appropriation, it shall be presented to the Council as a resolution including all such administrative transfers to date in the fiscal year for consideration and passage as presented, or as amended by the Council.

7.12 FINANCIAL REPORTS.

   The finance officer shall prepare and file the following financial reports:

      1.   Monthly Reports.  There shall be submitted to the Council each month a report showing the activity and status of each fund, program, sub-program and activity for the preceding month.

      2.   Annual Report.  Not later than December 1 of each year there shall be published an annual report containing a summary for the preceding fiscal year of all collections and receipts, all accounts due the City, and all expenditures, the current public debt of the City, and the legal debt limit of the City for the current fiscal year.  A copy of the annual report must be filed with the Auditor of State not later than December 1 of each year.

(Code of Iowa, Sec. 384.22)

7.13 DISHONORED NEGOTIABLE INSTRUMENTS.

   Upon notification by the City’s financial institution that a deposited check is being returned to the City as dishonored, the City Clerk shall notify the customer that the check has been dishonored and that a service charge has been assessed to the party issuing the check equal to the maximum allowed by Iowa Code, Section 554.3512(1).  The notice shall state the time period within which the check and service charge must be honored or service will be discontinued.