§ 9.03. BUDGET

A. Budget Message: A budget message explaining the budget both in fiscal terms and in terms of the work programs shall be submitted with the budget. It shall outline the proposed financial programs of the City for the ensuing fiscal year, the capital program, and capital projects for five fiscal years succeeding the budget year. It shall describe the important features of the budget year and indicate any major changes from the current year in financial policies, expenditures, and revenues including the reasons for such changes. It shall also summarize the City's debt position and contain such other material as the City Manager deems desirable.

B. Budget Scope: The budget shall provide a complete financial plan of all City funds and activities and, except as required by law or this Charter, shall be in such form as the City Manager deems desirable or the Council may require. The budget shall be so arranged as to show comparative figures for actual and budgeted income and expenditure for the preceding fiscal year; budgeted and estimated income and expenditure for the current fiscal year; actual income and expenditure of the current fiscal year up to the time of preparation of the budget; and estimated income and expenditure for the next fiscal year. The total of the proposed expenditures for the budgeted year shall not exceed the estimated income and surplus.

C. Content: The budget shall contain in separate sections the following:

1.

A clear general summary of contents.

2.

A consolidated statement of receipts and expenditures of all funds.

3.

An analysis and itemization of all estimated income of the City from surplus, miscellaneous income and taxes with miscellaneous income subclassified by source.

4.

Tax rates and collections for the preceding five years or from incorporation of the City if the latter is less than five (5) year.

5.

An itemized statement of expenditures for pending and proposed new capital projects. Included shall be the amounts appropriated from the budget, the amounts to be raised by issuance of bonds, and the amount required for down payment.

6.

The amount required for sinking funds, for maturing serial bonds, and for interest on the City's debts.

7.

The total amount of the City's outstanding debts, with a schedule of maturity on bond issues in an attachment.

8.

A detailed estimate of the operating expenses of each department, office or agency.

9.

Statement of estimated net surplus or deficit for the ensuing fiscal year of each utility owned and operated by the City. A subsidiary budget for each utility shall be included giving details of income and expenditures.

10.

Such other information as is required by Council or deemed desirable by the City Manager.

11.

A contingency fund may be included not to exceed five percent of the General Fund proposed expenditure; and

12.

Such dedicated reserves as may be required.

D. Public Notice and Hearing: The Council shall post in the City Office and publish in the official newspaper a general summary of the proposed budget and a notice stating:

1.

The times and places where copies of the message and budget are available for inspection by the public; and

2.

The time and place, not less than ten (10) days, nor more than thirty (30) days after such publication, for a public hearing on the budget.

E. Council Action:

1.

The Council shall hold a public hearing on the budget as submitted at the time and place, so advertised or at another time and place with proper notification. All interested persons shall be given an opportunity to be heard, either for or against any item of the proposed budget.

2.

After the public hearing, the Council may adopt the budget with or without amendment.

3.

The Council shall adopt the budget by ordinance on one reading. Adoption of the budget will require an affirmative vote of a majority of the entire Council. Adoption of the budget shall constitute appropriations of the amounts specified therein as expenditures from the funds indicated and shall constitute a levy of the property tax therein proposed.

F. Failure to Adopt: If the Council fails to adopt the budget by the last regular meeting of September, the amounts appropriated for operation during the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis, with all items in it prorated accordingly, until such time as the Council adopts a budget for the ensuing fiscal year. The levy of property tax normally approved as part of the budget adoption will be set such that the tax receipts for the budgeted year shall equal the tax receipts of the current fiscal year.