(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUDGET OFFICER. The Mayor.
BUDGET YEAR. The fiscal year for which a budget is made.
CHIEF FINANCIAL OFFICER. The City Clerk-Treasurer.
CURRENT YEAR. The fiscal year in which a budget is prepared and adopted, for example, the fiscal year next preceding the budget year.
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 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 City Council to make financial plans for both current and capital expenditures and to permit taxpayers and investors to form intelligent 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accomplishment of this purpose, the provisions of this section shall be broadly construed and shall be in effect until repealed or amended by a majority vote of the City Council in the same manner as required by state statutes for the adoption of an ordinance, except that in no case may a vote be taken on amendment or repeal of such ordinance at the meeting at which it is first proposed.
(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 July 1 of each year.
(E) Preparation and submission of budget. The Budget Officer annually shall submit to the City Council a budget and an explanatory budget message. The budget shall include the following:
(1) Organization units within the department or agency; and
(2) Object of expenditure:
(a) Personal services;
(b) Contractual services;
(c) Materials and supplies;
(d) Other expenses;
(e) Capital outlay; and
(f) Other such supporting data as necessary.
(F) 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.
(G) 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 City 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, departments and agencies and for the use of interested persons and civic organizations. A summary shall be published in accordance with KRS 424.240.
(H) 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 there named.
(I) Budget. 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; and
(3) All proposed expenditures.
(J) Proposed expenditures. The proposed expenditures shall be itemized as set out in division (E) above and each item numbered in accordance with the classification system recommended in the state’s Municipal Accounting Manual. Separate provisions shall be included in the budget for at least:
(1) Administration, operation and maintenance of each office, department or agency of the city supported by the General Fund;
(2) Contingent expense in an amount not more than 5% of the total revenue estimated for the budget year; and
(3) Expenditures proposed for capital projects.
(K) 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.
(L) Approval of expenditures. The Chief Financial 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 ensure that appropriations are not exceeded. He or she shall exercise financial budgetary control over each office, department and agency and shall cause separate accounts to be kept for the items of appropriations 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 (J) above shall be used. Unless he or she shall certify that there is sufficient unencumbered balance available, no expenditure shall be made.
(M) Transfers of appropriations. The Financial Officer may at times transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department or agency. At the request of the Budget Officer and within the last three months of the budget year, the City Council may by resolution transfer any unencumbered appropriation balance or portion thereof from one office, department or agency to another.
(N) 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 to 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.
(O) 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.
(P) Emergency appropriations and borrowing. At any time of the budget year, the governing body may, pursuant to this division (P), 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 and welfare. Such appropriation shall be by resolution adopted by the favorable votes of at least a majority of the members of the governing body and shall be made only upon recommendation of the Budget Officer. 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.
(Prior Code, § 33.03) (Ord. 365, passed 5- -1974) Penalty, see § 10.99