Loading...
(A) The city shall keep its accounting records and render financial reports in such a way as to:
(1) Determine compliance with statutory provisions; and
(2) Determine fairly and with full disclosure and financial operations of constituent funds and account groups of the city in conformity with generally accepted governmental accounting principles.
(B) The municipal accounting system shall be organized and operated on a fund basis.
(KRS 91A.020) (Prior Code, § 33.02)
(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accomplishment of this purpose, the provisions of this section shall be broadly construed and shall be in effect until repealed or amended by a majority vote of the City Council in the same manner as required by state statutes for the adoption of an ordinance, except that in no case may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
(A) Each city of the first through fifth class shall, after the close of each fiscal year, cause each fund of the city to be audited by the auditor of public accounts or a certified public accountant. The audits shall be completed by February 1 immediately following the fiscal year being audited. Within ten days of the completion of the audit and its presentation to the city legislative body, pursuant to division (D)(6) below, each city shall forward three copies of the audit report to the state’s Department for Local Government for information purposes. The Department shall forward one copy of the audit report to the Legislative Research Commission to be used for the purpose of KRS 6.955 through 6.975.
(B) Except as provided in division (C) below, each city of the sixth class shall, after the close of each odd-numbered fiscal year, cause each fund of the city to be audited by the auditor of public accounts or a certified public accountant. The audits shall be completed by February 1 immediately following the fiscal year to be audited. Within ten days of the completion of the audit and its presentation to the city legislative body, pursuant to division (D)(6) below, each sixth class city shall forward three copies of the audit report to the state’s Department for Local Government for information purposes. The Department shall forward one copy of the audit report to the Legislative Research Commission to be used for the purposes of KRS 6.955 through 6.975. After the close of each even-numbered fiscal year, each sixth class city shall prepare a financial statement in accordance with KRS 424.220 and immediately forward one copy to the state’s Department for Local Government. The Department shall be responsible for forwarding one copy of the financial statement to the Legislative Research Commission.
(C) Any city of the sixth class, which for any fiscal year receives and expends, from all sources and for all purposes, less than $25,000 and which has no long-term debt, whether general obligation or revenue debt, shall not be required to audit each fund of the city for that particular fiscal year. Each city shall annually prepare a financial statement in accordance with KRS 424.220 and immediately forward one copy to the state’s Department for Local Government for information purposes. The Department shall be responsible for forwarding one copy of the financial statement to the Legislative Research Commission to be used for the purposes of KRS 6.955 through 6.975.
(D) Each city required by this section to conduct an annual or biannual audit shall enter into a written contract with the selected auditor. The contract shall set forth all terms and conditions of the agreement which shall include, but not be limited to, requirements that:
(1) The auditor be employed to examine the general purpose financial statements of all governmental, proprietary and fiduciary funds of the city;
(2) The auditor shall include in the annual city audit report an examination of local government economic assistance funds granted to the city under KRS 42.450 through 42.495. The auditor shall include a certification with the annual audit report that the funds were expended for the purpose intended;
(3) All audit information be prepared in accordance with generally accepted governmental auditing standards which includes such tests of the accounting records and such auditing procedures as considered necessary under the circumstances. Where the audit is to cover the use of state or federal funds, appropriate state or federal guidelines shall be utilized;
(4) The auditor prepare a typewritten or printed report embodying the general purpose financial statements and his or her opinion and statements relating thereto;
(5) The auditor express an overall opinion as to whether the general purpose financial statements present fairly the financial condition of the city or state the reasons why an overall opinion cannot be expressed;
(6) The completed audit and all accompanying documentation shall be presented to The City Council at a regular or special meeting; and
(7) Any contract with a certified public accountant for an audit shall require the accountant to forward a copy of the audit report and management letters to the auditor of public accounts upon request of the city or the auditor of the public accounts, and the auditor of public accounts shall have the right to review the certified public accountant’s workpapers upon request.
(E) A copy of an audit report which meets the requirements of this section shall be considered satisfactory and final in meeting any official request to the city for financial data, except for statutory or judicial requirements or requirements of the Legislative Research Commission necessary to carry out the purposes of KRS 6.955 through 6.975.
(F) Upon completion of an audit, the city may elect to publish the auditor’s report in accordance with division (G) below or may publish a financial statement in accordance with division (H) below. Notwithstanding the election of divisions (G) or (H) below, the city shall, within 90 days after the close of the fiscal year, cause to be published in a newspaper qualified under KRS 424.120 a legal display advertisement of not less than eight column inches that the statement required by KRS 424.220 has been prepared and that copies have been provided to each local newspaper of general circulation, each news service and each local radio or television station which has on file with the city a written request to be provided such statement.
(G) (1) If the city elects to publish the auditor’s report prepared in accordance with this section in lieu of the financial statement required by KRS 424.220, it shall publish the auditor’s cover letter to the City Council, the combined balance sheet showing all fund types and account groups, the combined statement of revenues, expenditures and changes in fund balance for all governmental fund types, the combined statement of revenues, expenses and changes in retained earnings/fund balances for all proprietary fund types and similar trust funds, and the combined statement of changes in financial position for all proprietary fund types and similar trust funds in accordance with KRS Chapter 424.
(2) The advertisement shall contain a statement that a copy of the complete auditor’s report, including financial statements and supplemental information, are on file at City Hall and are available for public inspection during normal business hours. The advertisement shall also contain a statement that any citizen may obtain from City Hall a copy of the complete auditor’s report, including financial statements and supplemental information, for his or her personal use. The statement shall notify citizens requesting a personal copy of the city audit report that they will be charged for duplication costs at a rate that shall not exceed $0.25 per page. In addition, the advertisement shall contain a statement that copies of the financial statement prepared in accordance with KRS 424.220 are available to the public at no cost at the business address of the officer responsible for preparation of such statement.
(H) If the city, other than a city of the first or second class or urban-county government, elects to publish the financial statement prepared in accordance with KRS 424.220 in lieu of publishing the auditor’s report, it shall, within 60 days after the completion of the audit, publish such statement in accordance with KRS Chapter 424.
(I) Any city of the fifth or sixth class may utilize the alternative publication methods authorized by KRS 424.190(2) to comply with the provisions of this section.
(KRS 91A.041) (Prior Code, § 33.04)
Statutory reference:
Department for Local Government to provide assistance, see KRS 91A.050
(A) The Mayor shall designate as the city’s official depositories one or more banks, federally insured savings and loan companies or trust companies within the commonwealth. The amount of funds on deposit in an official depository shall be fully insured by deposit insurance or surety bonds.
(B) All receipts from all sources of city money or money for which the city is responsible, which has not been otherwise invested or deposited in a manner authorized by law, shall be deposited in official depositories. All city funds shall by disbursed by written authorization approved by the Mayor which state the name of the person to whom funds are payable, the purpose of the payment and the fund out of which the funds are payable. Each authorization shall be numbered and recorded.
(KRS 91A.060) (Prior Code, § 33.05)
Claims are presented to the Clerk-Treasurer who prepares “orders of Treasurer,” which are read at a regular City Council meeting and acted on by the City Council. If approved, the Clerk-Treasurer draws a check which is then signed by two of the following: Clerk-Treasurer, Mayor or a designated City Council member.
(Prior Code, § 33.06)
No money shall be drawn from the treasury of the city except by order signed by the City Clerk-Treasurer, in pursuance of an allowance in appropriation made by City Council at any regular meeting. However, the Mayor is authorized to approve recurring expenditures.
(Prior Code, § 33.07) (Ord. 40, passed 9-3-1907)
IMPROVEMENTS
Loading...