(A) Encumbrance of funds.
(1) Except as provided herein, the Mayor shall not execute a contract or the Director of Purchasing shall not issue a purchase order until the Budget Director has:
(a) Certified the availability of unexpended appropriated city funds;
(b) Encumbered such city funds, as defined below; or
(c) Determined that funds in the proposed municipal or state budgets or from other sources will be available on or after July 1 of the ensuing fiscal year, for the commodity, services or leases set forth in a requisition.
(2) The city shall make no payment and no obligation shall be incurred against any appropriation unless the encumbrance required of the Budget Director by this provision is contained in the records of the city.
(B) Encumbrance of other funds and funding sources.
(1) Except as provided herein, the Mayor shall not execute a contract or the Director of Purchasing shall not issue a purchase order until the Budget Director has certified the availability of funds pursuant to the terms of an executed and effective grant, loan or reimbursement program of the federal or state governments, or their subdivisions.
(2) The city shall make no payment and no obligation shall be incurred against any federal or state grant, loan or reimbursement agreement unless the encumbrance required of the Budget Director by this provision is contained in the records of the city.
(C) Encumbrance of funds for multi-year agreements or options to extend. The city shall make no payment and no obligation shall be incurred for multi-year obligations or options to extend for all Contracts set forth in divisions (A) and (B) above, unless an encumbrance of funds occurs, for which annual appropriation is required.
(1) Responsibility of the department head. Except for capital projects that are funded from a capital improvement fund, the department head shall, on an annual basis, be responsible for requesting an encumbrance through the filing of a requisition of the multi-year contract following approval of the budget for the subsequent year.
(2) Encumbrance by the Budget Director. The encumbrance shall include the same findings required of the Budget Director in initially encumbering the funds.
(D) Valid obligation. No contract or purchase order shall be the valid obligation of the city unless certified by the Budget Director prior to execution thereof. No using agency shall incur any liability or expense by contract, purchase order or otherwise for which the city shall be responsible, in excess of the appropriations so authorized by the Board of Aldermen or in excess of the amounts contained in federal or state grants, loans or reimbursements. Notwithstanding the foregoing, this provision shall not apply to exempt transactions pursuant hereto.
(E) Consequences of executing contracts and purchase orders in violation of the Charter and code of ordinances.
(1) Expenditures and obligations voided. Every expenditure or obligation authorized or incurred in violation of this chapter shall be void, unless approved by the Budget Director and the Director of Purchasing.
(2) Violative payments deemed illegal: joint and several liability for public officials, employees and other persons. Payments made in violation of the provisions of the Charter and this chapter shall be deemed illegal and all public officials and employees who shall authorize or make the payment, or cause the payment to authorized or made, and all persons who shall receive the payment or any part thereof shall be jointly and severally liable to the city for the full amount so paid or received.
(3) Cause for removal or termination of employment. If any public official or employee of the city shall knowingly incur any obligation or shall authorize or make any expenditure in violation of this provision, the action shall be cause for removal from office or termination of employment.
(Ord. passed 6-20-2005)