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HomeMy WebLinkAbout7552ORDINANCE NO. 7952 AN ORDINANCE ESTABLISHING BUDGET PROCEDURES FOR THE CITY OF LITTLE ROCK, ESTABLISHING A SYSTEM OF PRE-AUDIT BUDGET CONTROL, AND FOR OTHER PURPOSES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK, ARKANSAS: ARTICLE I. Budget Procedure Section 1. Fiscal Year The fiscal year of the city government shall begin on the first day of January and shall end on the last day of December, of each calendar year. Such fiscal year shall also constitute the budget and accounting year. As used in this ordinance, the term "budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered. Section 2. Nature and Scope of the Budget The budget for the city shall set forth all p^ oposed expendi- tures for the administration, operation, maintenance, and improve- ment of all offices and departments for the ensuing budget year; expenditures for capital projects to be undertaken and /or execut- ed during the year. In addition thereto, the budget shall set forth the anticipated income and other means of financing proposed expenditures for the fiscal year. Section 3. Preparation and Submission of Budget The mayor, on or before the 30th day of November of each year shall submit to the council a budget and an explanatory budget message for the ensuing year in the form and with the contents provided by sections eleven to thirteen inclusive of Article I. For such purpose, at such date as he shall determine, he shall obtain from the head of each office, department or agency, esti- mates of revenue and expenditure of that office, department or agency, detailed by organization units and character and object of expenditure, together with an estimate of all capital projects pending or which such department head believes should be under- taken (a) within the budget year and (b) within the next five succeeding years. In preparing the budget, the mayor shall review the estimates in view of the needs of the various spending agencies • ,f -2- and the probable income of the city government, and may revise the estimates, as he may deem advisable. Section 4. Budget a Public Record The budget and budget message and all supporting schedules shall be a public record in the office of the City Clerk open to public inspection by anyone. The mayor shall cause sufficient copies of the budget and budget message to be prepared for dis- tribution to interested persons. Section 5. Publication of Notice of Public Hearing At the meeting of the council at which the budget and budget message are time of the published a hold a publ Section 6. At the submitted, the public hearing notice of the is hearing. Public Hearing time and place council shall determine the place and on the budget, and shall cause to be place and time at which the council will on Budget so advertised, or at any time and place to which such public hearing shall from time to time be adjourned, the council shall hold a public hearing on the budget as submitted, at which all interested persons shall be given an opportunity to be heard, for or against the estimates of any item thereof. Section 7. Further Consideration and Adoption of the Budget After the conclusion of such public hearing, or hearings, the council may insert new items or may increase or decrease the items of the budget, except contractual obligations and other items in proposed expenditures fixed by law. Section 8. Adoption of the Budget On or before the 30th day of December the council shall adopt a budget for the ensuing year. Section 9. Publication of Adopted Budget; Copies made Available Within ten days after final action has been taken on the budget by the City Council, it shall make public, by publication or otherwise, a summary statement which shall be in the form of the general budget summary provided for in Section 14 of Article I of this ordinance. Said statement shall show, in addition to the figures set forth in the general budget summary, the changes made by the city council in the course of its review, revision, and adoption of the budget. The adopted budget shall be printed, -3- mimeographed, 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. Section 10. The Budget Document The budget document, setting forth the financial plan of the city for the ensuing budget year, shall embrace: 1. The budget message and summary; 2. The detailed budget plan. Section 11, Budget Message; Current Operations The budget message submitted by the Mayor to the council shall be explanatory of the budget, shall contain an outline of the proposed financial policies of the city for the budget year and shall describe in connection therewith the important features of the budget plan. It shall set forth the reasons for salient changes from the previous year in cost and revenue items and shall explain any major changes in financial policy. Section 12. Budget Message; Capital Improvements As part of the budget message, with relation to the proposed expenditures for capital projects stated in the budget, the mayor shall include a statement of pending capital projects and proposed new capital projects, relating the respective amounts proposed to be raised therefor by appropriations in the budget and the respec- tive amounts, if any, proposed to be raised therefor by the is- suance of bonds during the budget year. Section 13. Budget Message; Supporting Schedules Attached to the budget message shall be such supporting sche- dules, exhibits and other explanatory material in respect to both current operations and capital improvements, as the mayor shall believe useful to the council. Section 14. 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 and total proposed expenditures of each de- partment, in such a manner as to present to tax payers a simple and clear summary of the estimates of the budget. -4- Section 15. Complete Budget Plan The budget shall provide a complete plan for the operation of all city departments and offices for the ensuing budget year. It shall contain in tabular form: 1. Detailed estimates of all anticipated revenues; 2. All proposed expenditures. Section 16. Anticipated Revenues Anticipated revenues shall be classified as "surplus ", "ahiscel- laneous revenues" and "general property tax "; miscellaneous revenues shall be classified by sources and shall be established as it es- cribed in Sections 19 and 20 of Article 1 of this Ordinance. Section 17. Surplus Surplus shall include: 1. Revenue receipts made available by the lapsing of unencumbered budget balances at the end of the budget year; 2. Receipts from unanticipated revenues of the pre- ceding fiscal year in excess of the estimates in the budget; 3. Receipts from anticipated revenue of the preceding fiscal year in excess of the estimates of the budget. Section 18. Miscellaneous Revenues Miscellaneous revenues shall include anticipated revenues from the collection of taxes other than the general property tax and shall include the amount of Federal and state aid to be received; the amount by which the city is expected to benefit from taxes collected by the state; the amounts estimated to be received from services and sales, franchises, rents, fines, and forfeitures, privilege taxes, fees and special assessments. Section 19. Measure of Estimates No revenue from any source shall be included as an anticipated revenue in the budget in an amount in excess of the average of the amount actually realized in cash from the same source in the next preceding fiscal year, and that actually realized in the first eight months of the current fiscal year plus that to be received in the remaining four months of the year estimated as accurately as may be, unless the mayor shall determine that the facts clearly warrant the expectation that such excess amount will actually be realized in cash during the budget year and shall certify such -5- determination in writing to the council. Section 20. Anticipated Revenues Compared with Other Years In parallel columns opposite the several items of anticipated revenues there shall be placed the amount of each such item in the budget of the last completed fiscal year, the amounts of such items actually received during such year, the amount of each such Item in the budget of the current fiscal year and the amount actually received for the time of preparing the budget plus re- ceipts for the remlinder of the current fiscal year estimated as accurately as may be. Section 21. Revenues; From New Sources No revenue from a new source not previously stated in the budget shall be included unless the mayor shall determine that the facts clearly warrant the expectation that such revenue will be actually realized in cash during the budget year in the amount stated and shall certify such determination in writing to the council. Section 22. Proposed Expenditures The proposed expenditures of each department, office, or agency, shall be itemized by character and object of expenditure under the three following general classifications: a. Salaries b. Operation & Maintenance C. Improvements Separate provisions shall be included in the budget for: a. Contractual obligations b. The payment of all judgments c. Expenditures proposed for capital projects financed by bond issues. Section 23. Reserve Fund. There shall be established a reserve fund in the budget of an amount equal to three percent of the total anticipated revenues for the budget year, or a minimum of $100,000, whichever is the greater. Section 24. Proposed Expenditures; Comparison with Other Years In parallel columns opposite the several items of proposed expenditures, there shall be placed the amount of each such item in the budget of the last completed fiscal year, the amount of -6- such items in the budget of the current year and the amount actually expended to the time of preparing the budget plus the expenditures for the remainder of the current fiscal year esti- mated as accurately as may be. Section 25. Allotments Before the beginning of the budget year, the head of each operating department, under the supervision of the mayor, shall submit to the mayor, a work program for the year, which program shall show the requested allotments of the budget for such operat- ing department by monthly periods for the entire budget year. The mayor shall review the requested allotments in the light of the work program of the operating department concerned, and may revise, alter or change such allotments before approving the same. The aggregate of such allotments shall not exceed the total budget available to said operating department for the budget year. Section 26. Allotments constitute Basis of Expenditures and are Subject to Revision An approved allotment may be revised during the budget year in the same manner as the original allotment was made. If, at any time during the budget year, the mayor shall ascertain that the available income, plus balances, for the year will be less than the total budget, he shall reconsider the work programs and allot- ments of the operating departments and revise the allotments so as to forestall the making of expenditures in excess of the said income. Section 27. Transfers of Appropriations The mayor may at any time transfer any unencumbered budget balance or portion thereof between general classifications of ex- penditures within an operating department. At the request of the mayor and within the last three months of the budget year, the council may by ordinance transfer any unencumbered budget balance or portion thereof from one operating department to another, pro- vided however, such transfer shall comply with all applicable state statutes. Section 28, Emergency Appropriations At any time in any budget year, the council may, pursuant to this section, make emergency appropriations to meet a pressing ,x -7- public need. Section 29. Budgets Lapse at end of Year All budgets shall lapse at the end of the budget year to the extent that they shall not have been expended or lawfully en- cumbered. ARTICLE II. Budget Control Section 1. Mayor responsible for Budget Control The "idayor shall have maintained through his office the city's pre -audit budget procedure in such a manner that the accounts will shorn daily all transactions relating to departmental budgets. Section 2. Certification of Purchases Operating departments shall requisition the purchase of supplies and materials in such departments on a form prescribed by the mayor's office and no requisition shall be approved by the mayor or an em- ployee designated by him unless there is an unencumbered budget balance sufficient to meet the obligation. Before so certifying, the proper budget account shall be encumbered with the amount of the requisition. Section 3. Reports and statements At the close of each month, and at any other time, if so or- dered by the city council, the mayor shall have prepared for submis- sion to the members of the council a statement of the condition of each departmental budget and such other reports as may be re- quired of him. At the close of the year he shall submit to the members of the city council a complete report of the budget tran- sabt3nns of the year. Section 4. Inventory and Audit The mayor shall maintain an inventory of all real property owned by the city and of all other property of the city having a useful life of one year or more, and upon expiration of his tenure of office shall file same with the city council. At least once a year he shall have audited through his office the insurance policies, and the official bonds of the city employees, and determine whether city property is properly and adequately insured, and whether city employees are properly and adequately bonded. "' , r -8- Section 5. Mayorts Examination of Claims The mayor may examine all payrolls, vouchers, bills, and other claims and demands against the city and shall not approve same for payment thereof unless he has found by diligent investi- gation that the claim has pre -audit budget certification, is in proper form, correctly computed, and that it is justly and legally due and parable; and that it is accompanied by the certification of a responsible official of the department concerned that the goods and services listed therein were actually received. Section 6. Issuing of Warrants The city clerk of the City of Little Rock shall continue to issue all warrants drawn upon the treasury of the City of Little Rock when he finds that said warrants are authorized by law, which warrants shall be signed by the mayor and the city clerk. Section 7. All ordinances and parts of ordinances in conflict herewith are hereby repealed. Section 8. The articles and sections of this ordinance shall be deemed separate and apart and should any clause, sentence, section, or article be declared to be unconstitutional, the balance of said ordinance shall not be affected thereby. PASSED: March 15, 194-8 ATTEST: C y er APPROVED: 1 ��