CHAPTER 10:
FINANCE, TAXATION, AND OTHER FISCAL MATTERS

Article
I.	IN GENERAL
II.	SETTLEMENT OF CLAIMS FOR AND AGAINST CITY AND COUNTY
III.	COLLECTION OF TAXES FROM FEDERALLY CONDEMNED LAND
IV.	ECONOMIC ANALYSIS AND DEVELOPMENT PLANNING
V.	BUREAU OF DELINQUENT REVENUE COLLECTION
VI.	REFUND OF ERRONEOUSLY COLLECTED MONEY
VII.	DISPOSITION OF UNIDENTIFIED TAX COLLECTIONS
VIII.	FISCAL AGENT FOR BOND PAYMENTS IN NEW YORK
IX.	SALE OF TRUST SECURITIES
X.	FINANCIAL POLICIES
XI.	NUMBERING OF LOTS AND BLOCKS FOR ASSESSMENT PURPOSES
XIII.	FUNDS
XV.	CASH REVOLVING FUNDS
XVI.	COLLECTION ACTIVITIES
XVIII.	GENERAL FUND COST RECOVERY PROCEDURES
XX.	LIEN PROCEDURE

 

ARTICLE I: IN GENERAL

Sec. 10.01.	Effect of Appropriation Ordinance.
Sec. 10.02.	Cash Reserve Fund and Supplemental Appropriations.
Sec. 10.03.	Emergency Reserve Fund.
Sec. 10.04.	Annual Salary Ordinance.
Sec. 10.05.	Allotments.
Sec. 10.06.	Encumbrances.
Sec. 10.07.	Disbursements.
Sec. 10.08.	Disbursements in Advance of Revenues.
Sec. 10.08-1.	Invalidity of Improper Acts.
Sec. 10.08-2.	Penalties.
Sec. 10.1.	Annual Economic Statement – City-Funded Organizations.
Sec. 10.2.	Authorization for the Assessor-Recorder, Controller, Tax Collector, and City Attorney to Perform Certain Acts.
Sec. 10.2-2.	Tax Assessment Payments in Even Cents Only.
Sec. 10.2-3.	Assessor-Recorder Authorized to Accept Applications for Reductions in Assessments.
Sec. 10.2-4.	Payment of Taxes in Installments.
Sec. 10.2-5.	Reassessment of Property Due to Misfortune or Calamity.
Sec. 10.2-6.	Annual Assessment Roll to be Open to Inspection.
Sec. 10.2-7.	Transfer of Base Value of Substantially Damaged or Destroyed Property.
Sec. 10.2-8.	Exemption from Property Taxation of Low-Value Property.
Sec. 10.2-9.	Assessor/Recorder Reporting of Assessor's Reductions of Assessed Values of Real Property.
Sec. 10.3.	Collection of Unsecured Property Taxes.
Sec. 10.3-1.	Collection of Secured Personal Property Taxes.
Sec. 10.4.	Outreach for Tax-Defaulted Properties.
Sec. 10.4-1.	Power to Sell Time Period for Nonresidential Commercial Properties.
Sec. 10.5.	Delinquent Property Tax Penalty Cancellation.
Sec. 10.6.	Audits and Investigations by Controller – To be Performed as Required by Charter.
Sec. 10.6-1.	Monitoring of Nonprofits Contracting with the City.
Sec. 10.6-2.	Controller's Audit of Leases Under Which City is Lessor.
Sec. 10.6-3.	Controller's Quarterly Audit of the Treasurer.
Sec. 10.7-2.	Findings and Intent.
Sec. 10.7-2.1.	Apportionment.
Sec. 10.7-2.2.	Collection and Disbursement.
Sec. 10.7-2.3.	Circumstances Invoking Operation of This Ordinance.
Sec. 10.10.	Receipt of Negotiable Paper for Collection – Definitions.
Sec. 10.11.	Receipt of Negotiable Paper for Collection – Receipt Authorized; Exception.
Sec. 10.11-1.	Payment by Credit Card, Debit Card and Automatic Teller Machine Card.
Sec. 10.12.	Receipt of Negotiable Paper for Collection – Return to Treasurer for Collection.
Sec. 10.13.	Receipt of Negotiable Paper for Collection – Return When Amount is Insufficient.
Sec. 10.13-1.	Charge for Personal Checks Returned without Payment.
Sec. 10.14.	Receipt of Negotiable Paper for Collection – When Payment is Deemed Made.
Sec. 10.15.	Receipt of Negotiable Paper for Collection – Payments in Excess of Obligation.
Sec. 10.16.	Inapplicability of Sections 10.10-10.15.
Sec. 10.17.	Accounting for and Reporting Income Taxes – Controller's Duties.
Sec. 10.18.	Accounting for and Reporting Income Taxes – Duties of City Offices, Boards and Commissions.
Sec. 10.19-1.	Clearinghouse Representative.
Sec. 10.19-2.	Custody of Moneys and Securities.
Sec. 10.19-3.	Fees for Licenses and Permits.
Sec. 10.19-4.	Notice by Departments to Board of Supervisors.
Sec. 10.19-5.	Quarterly Report on Departmental Spending.
Sec. 10.20.	Budget Savings Incentive Fund.

 

SEC. 10.01. EFFECT OF APPROPRIATION ORDINANCE.

   Subject to the restrictions of Section 10.05, the several amounts of estimated revenue and proposed expenditures contained in the annual appropriation ordinance as adopted by the Board of Supervisors shall be and become appropriated for the ensuing fiscal year to and for the several departments, bureaus, offices, utilities, boards or commissions, and for the purposes specified, and each department for which an expenditure appropriation has been made shall be authorized to use the money so appropriated for the purposes specified in the appropriation ordinance, and within the limits of the appropriation. The appropriation ordinance shall constitute the authority for the Controller to set up the required revenue and expenditure accounts. Appropriation items for bond interest, bond redemption, fixed charges and other purposes not appropriated to a specific department shall be subject to the administration of and expenditure by the Controller for the respective purposes for which such appropriations are made.

(Added by Ord. 277-96, App. 7/3/96)

SEC. 10.02. CASH RESERVE FUND AND SUPPLEMENTAL APPROPRIATIONS.

   Unused and unencumbered appropriations or unencumbered balances existing at the close of any fiscal year in revenue or expense appropriations of the City and County for any such fiscal year, including such balances in revenue and expense appropriations provided under the provisions of Section 16.106 of the Charter for libraries, parks and squares, playgrounds and civil services in any such fiscal year, but exclusive of revenue or money required by law to be held in school, bond, bond interest, bond redemption, pension, trust, utility or other specific funds, or to be devoted exclusively to specified purposes other than annual appropriations, and together with revenues collected or accruing from any source during any such fiscal year, in excess of the estimated revenue from such source as shown by the annual budget and the appropriation ordinance for such fiscal year, shall be held as surplus.

   Such surplus shall be taken in to account as revenue of the ensuing fiscal year; provided, however, that any such surplus created or existing in any fiscal year may be appropriated by the Board of Supervisors by means of an ordinance designated as a supplemental appropriation ordinance, in the same manner and subject to the same conditions, except time, as provided in the Charter for the submission and approval of the annual budget and the appropriation ordinance.

   No ordinance or resolution for the expenditure of money, except the annual appropriation ordinance, shall be passed by the Board of Supervisors unless the Controller first certifies to such Board that there is a sufficient unencumbered balance in a fund that may legally be used for such proposed expenditure, and that, in the judgment of the Controller, revenues as anticipated in the appropriation ordinance for such fiscal year and properly applicable to meet such proposed expenditure will be available in the treasury in sufficient amount to meet the same as it becomes due.

(Added by Ord. 277-96, App. 7/3/96; amended by Ord. 166-13, File No. 130541, App. 8/2/2013, Eff. 9/1/2013)

SEC. 10.03. EMERGENCY RESERVE FUND.

   An emergency reserve fund is hereby created, for the purposes of meeting any emergency as defined in Sections 2.107 or 3.100 of the Charter. Appropriations from such emergency reserve fund shall be made only on the recommendation of the department head concerned and the recommendation of the Mayor to the Board of Supervisors that such appropriation be made, and the vote of ¾ of the Board of Supervisors.

   The balance in said emergency reserve fund at the end of any fiscal year shall be maintained and carried forward in said fund.

(Added by Ord. 277-96, App. 7/3/96; amended by Ord. 313-00, File No. 001908, App. 12/28/2000)

SEC. 10.04. ANNUAL SALARY ORDINANCE.

   The number and rates of compensation for all positions continued or created by the Supervisors in adopting each annual budget, and each annual or supplemental appropriation ordinance, shall be established and enumerated in an ordinance continuing and creating positions in City and County departments and offices, and providing the rates of compensation therefor, which ordinance shall be passed or amended at the same time as the annual or supplemental appropriation ordinance is passed. The number of positions enumerated therein shall be segregated by classes according to the civil service classification of employment and the positions in any department or office under any such class shall not be listed individually or subdivided, except where necessary to show varying rates of pay for employments included in any such class. Rates of compensation enumerated shall be those established by salary standardization schedules or by collective bargaining, and shall not be listed for individuals or individual positions, except where the compensation of incumbents is higher than the rate fixed by salary standardization or collective bargaining, which compensation shall not be reduced so long as the incumbents legally hold such positions. Notwithstanding the provisions of Charter Section 2.105 with respect to amendment of sections of ordinances, any change in the number of positions allowed for any department or office, and seniority or other compensation increases authorized as provided elsewhere in the Charter for officers or employees, may be covered by amendment of the appropriate item or items of the ordinance herein referred to. The said ordinance shall constitute the legal basis for check by the Civil Service Commission or the Controller as to the legality of the creation of any position in the City and County service and the rate of compensation fixed therefor.

   The Controller and the Director of Human Resources may make such administrative adjustments in the salary provisions of the annual salary ordinance as are necessary to conform to the salary provisions of any collective bargaining agreements approved by the Board of Supervisors subsequent to the adoption of the annual budget.

(Added by Ord. 439-96, App. 11/8/96)

SEC. 10.05. ALLOTMENTS.

   The several items of expenditure appropriated in each annual appropriation ordinance, being based on estimated receipts, income or revenues which may not be fully realized, it shall be incumbent upon the Controller to establish a schedule of allotments, as he or she may determine, under which the sums appropriated to the several departments shall be expended. The Controller shall revise such revenue estimates periodically. If such revised estimates indicate a shortage the Controller shall hold in reserve an equivalent amount of the corresponding expenditure appropriations set forth in any said annual appropriation ordinance until the collection of the amount as originally estimated is assured; and, in all cases where it is provided by the Charter that a specified or minimum tax shall be levied for any department, the amount of the appropriation in any annual appropriation ordinance derived from taxes shall not exceed the amount actually produced by the levy made for said department. The Controller in issuing warrants or checks or in certifying contracts or purchase orders or other encumbrances, pursuant to Section 10.06 of this Code, shall consider only the allotted portions of appropriation items to be available for encumbrance or expenditure and shall not approve the incurring of liability under any allotment in excess of the amount of such allotment. In case of emergency or unusual circumstance which could not be anticipated at the time of apportionment, an additional allotment for a period may be made on the recommendations of the department head and that of the Mayor, board or commission and the approval of the Controller. After the allotment schedule has been established or fixed, as heretofore provided, it shall be unlawful for any department or officer to expend or cause to be expended a sum greater than the amount set forth for the particular activity in the said allotment schedule so established unless an additional allotment is made, as herein provided.

(Added by Ord. 439-96, App. 11/8/96)

SEC. 10.06. ENCUMBRANCES.

   Accounts shall be kept by the Controller showing the amount of each class or item of revenue as estimated and appropriated in the annual appropriation ordinance, and the amount collected. Accounts shall also be kept by the Controller of each expense appropriation item authorized by the Board of Supervisors.

   Each such revenue and expense account shall show in detail the amount of the appropriation or appropriations made therefor by the Supervisors, the amount drawn thereon, the amount of encumbrance for purchase orders, contracts or other obligations theretofore certified by the Controller as against it, and the unencumbered balance to the credit thereof. This balance shall be the "unencumbered balance" as this term is used in the Charter and the Administrative Code.

   No obligation involving the expenditure of money shall be incurred or authorized by any officer, employee, board or Commission of the City and County unless the Controller first certifies that there is a valid appropriation from which the expenditure may be made, and that sufficient unencumbered funds are available in the treasury to the credit of such appropriation to pay the amount of such expenditure when it becomes due and payable.

   Each sum so recorded shall be an encumbrance for the purpose certified until such obligation is fulfilled, canceled or discharged, or until the ordinance or resolution is repealed by the Board of Supervisors.

(Added by Ord. 439-96, App. 11/8/96)