CHAPTER 8. GENERAL FINANCE; BUDGET, AUDIT

Section 8.1. Fiscal year

The fiscal year of the City shall begin on the first (1st) day of July of each year and end on the thirtieth (30th) day of June of the following year.

Section 8.2. Budget procedures

The City Manager shall prepare and submit to the Council on or before the first (1st) regular Council meeting in May of each year a recommended budget covering the next fiscal year which must comply with state law requirements and, at a minimum, include the following:

            (a)       Detailed estimates with the supporting explanations of all proposed expenditures for each department, office, and agency of the City, including those for the Retirement System, showing the expenditures for corresponding items for the last preceding fiscal year in full, and for the current fiscal year to April first (1st) and estimated expenditures for the balance of the current fiscal year;

            (b)       Statements of the bonded and other indebtedness of the City, showing the debt redemption and interest requirement, the debt authorized and unissued, and the condition of sinking funds, if any;

            (c)        Detailed estimates of all anticipated revenues of the City from sources other than taxes with a comparative statement of the amounts received by the City from each of the same or similar sources for the last preceding fiscal year in full, and for the current fiscal year to April first (1st) and estimated revenues for the balance of the current fiscal year;

            (d)       A statement of the estimated balance or deficit for the end of the current fiscal year;

            (e)       An estimate of the amount of money to be raised from current and delinquent taxes and the amount to be raised from bond issues which, together with any available unappropriated surplus and any revenues from other sources, will be necessary to meet the proposed expenditures;

            (f)         Such other supporting information as the Council may request.

State law reference(s)--Uniform budgeting and accounting act, MCL 141.421 et seq., MSA 5.3228(21) et seq.

Section 8.3. Schedule of capital outlay

Simultaneously with the recommended budget, the City Manager shall submit to the Council a schedule showing all recommended capital outlay expenditures for the following five (5) fiscal years. The City Manager shall prepare this schedule after consultation with the City Planning Commission. This schedule shall list separately each proposed acquisition of capital improvements or facility and each proposed capital expenditure program with estimates of cost as accurate as may be made without detailed plans and specifications. The City Manager shall upon consultation with the appropriate department heads prepare a five (5) year schedule for capital equipment acquisition and replacement. It shall also include proposed capital expenditures by any organization financed in whole or in part by City property taxes. This schedule shall be for the guidance of the Council in adoption of the regular annual budget and the Council may delete items or make such revisions as it deems appropriate and may arrange items in the order of priority for acquisition or construction. After making any desired corrections or additions, the Council shall adopt the capital outlay program at the same meeting as it adopts the regular annual budget, but such adoption shall be only for the purpose of setting up a guide for future capital expenditures and in no way shall obligate the City to carry out the programs listed nor to include any of the items in future budgets nor to appropriate funds for any of the items or programs.

Section 8.4. Budget of file

The complete proposed budget shall be on file for public inspection in the office of the City Clerk during office hours for a period of not less than one (1) week prior to adoption.

Section 8.5. Adoption of budget

Following a public hearing held in accordance with state law, and not before May fifteenth (15th) nor later than the first (1st) regular Council meeting in June in each year, the Council shall by resolution adopt a budget for the next fiscal year, shall appropriate the money needed for municipal purposes during the next fiscal year of the City and shall provide for a levy of the amount necessary to be raised by taxes allowed by state law for municipal purposes subject to limitations contained in Section 9.1.

State law reference(s)--Mandatory that Charter provide for an annual appropriation, MCL 117.3(h), MSA 5.2073(h).

Section 8.6. Budget control

Except for purposes which are to be financed by the issuance of bonds or by special assessment, or for other purposes not chargeable to a budget appropriation no money shall be drawn from the treasury of the City except in accordance with an appropriation thereof for such specific purpose, nor shall any obligation for the expenditures of money be incurred without an appropriation covering all payments which will be due under such obligation in the current fiscal year. The Council by resolution may transfer any unencumbered appropriation balance, or any portion thereof from one account, department, fund or agency to another, except as prohibited by state law.

As provided for and in the manner permitted by state law, the Council may make additional appropriations during the fiscal year for unanticipated expenditures required of the City. Additional appropriations shall not exceed the amount by which actual and anticipated revenues of the year are exceeding the revenues as estimated in the budget, or shall not exceed any actual or anticipated budget surplus.

In those cases where there is no logical or proper account against which an expenditure can be charged, then an appropriate, logical or proper account will be established. The necessary appropriation will be drawn from the contingency fund and credited to the newly established, logical and proper account, from which said latter account the expenditure will be made.

At the beginning of each quarterly period during the fiscal year, and more often if required by the Council the City Manager shall submit to the Council data showing the relation between the estimated and actual revenues and expenditures to date; and if it shall appear that the revenues are less than anticipated, the Council shall reduce appropriations, except amounts required for debt and interest charges, to such a degree as may be necessary to keep expenditures within the revenues.

The balance in any budget appropriation which has not been encumbered at the end of the fiscal year shall revert to the general fund.

Section 8.7. Depository

The Council shall designate depositories for City funds in compliance with state law, and shall provide for the regular deposit of all City moneys. The City Council and Treasurer may also invest surplus funds in accordance with state law.

State law reference(s)--Designation of depositories, MCL 129.12, MSA 3.752; deposits of public moneys, MCL 211.436, MSA 7.86.

Section 8.8. Independent audit and annual report

An independent audit shall be made of all City accounts at least annually, and more frequently if deemed necessary by the Council. Such audit shall be made by Certified Public Accountants experienced in municipal accounting. The accountants shall be selected by the Council.

The City Manager shall prepare an annual report of the affairs of the City including a financial report. Copies of such audit and annual report shall be made available for public inspection at the office of the Clerk.