Audit Presentation Option 2
CITY OF MERIDIAN
ORDINANCE NO.
BY THE CITY COUNCIL: BIRD, BORTON, ROUNTREE, WARDLE
AN ORDINANCE AMENDING TITLE 1, CHAPTER 9, SECTION 3 OF THE
MERIDIAN CITY CODE REGARDING THE PRESENTATION OF THE
ANNUAL AUDIT; AND PROVIDING FOR A SUMMARY; AND PROVIDING
AN EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF MERIDIAN, IDAHO:
Section 1.
hereby amended.
That Title 1, Chapter 9, Section 3 of the Meridian City Code is
1-9-3: FISCAL POLICY; BUDGET:
A. Budget Policy:
1. The purpose of the budget is to help the public understand the costs of services and
how they relate to the services provided by the City. This budget shall also serve the
purpose of advising the City Council and Mayor about the finances of the City and
assist the City Council in determining what they desire to do for the City and in
setting its goals. The City Treasurer shall meet the provisions of Idaho Code section
50-208, and shall be custodian of the monies belonging to the City, shall be
responsible for all accounting and investing of the City's funds, and shall prepare and
present to the City Council monthly statements and tentative annual budgets in
accordance with this Section. The annual budget shall show expenditures and
revenues as required in Idaho Code section 50-1002.
2. The City Treasurer shall keep a separate account of each fund or appropriation, and
the debits and credits belonging thereto; he or she shall give a receipt to every person
and state on what account it was paid, shall file copies of such receipts with his or her
monthly statement, shall at the end of each month and every month, and as often as
may be required, render an account to the City Council under oath, showing the status
of the Treasury at the date of such accounting and the balance of money in the
Treasury; he or she shall accompany such accounts with a statement of all receipts
and disbursements, together with all warrants redeemed and paid by him or her,
which said warrants, with any and all vouchers held by him or her, shall be filed with
said account in the Clerk's office.
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B. Fiscal Year: The fiscal year for the City shall begin on October 1 as set out in Idaho
Code section 50-1001.
C. Monthly Budget:
1. The monthly budget shall set out the status of revenues and expenditures. The
monthly budget shall contain figures of expenditures indicating the total funds
budgeted for the year and amounts spent through the date of the monthly budget
statement and the amount of revenue collected. The monthly budget shall show the
balance of all general accounts, special accounts, enterprise funds, and any other
dedicated accounts or funds as established by the City Council. This budget shall be
broken down into, and by, departments in sufficient detail to allow the City Council
to be able to determine where the funds are being expended, i.e., salaries, equipment,
services, etc.
2. This monthly budget statement shall be submitted to the City Council prior to their
second monthly meeting, as set out in Idaho Code section 50-208 and shall show the
balance, including interest, of all general accounts, special accounts, water and sewer
enterprise accounts, and all other dedicated funds as established by the City Council.
D. Annual Budget:
1. At least sixty (60) days before the annual appropriation ordinance is due, the City
Treasurer/City Clerk shall submit a tentative annual budget to assist the City Council
in budget preparation. This tentative annual budget shall contain such expenditures as
dictated to the Treasurer by a majority vote of the City Council. If there are no
projections provided, the Treasurer shall make projections based on established City
policy. The tentative annual budget shall be for the coming fiscal year. The City
Council shall begin budget workshops ninety (90) days prior to when the
appropriation ordinance is due and shall hold such necessary workshops until the
Treasurer is provided with the budget projections or until sixty (60) days prior to the
appropriation ordinance due date at which time the Treasurer shall submit such
projections as set out in this Section. The tentative budget shall show the following
items:
a. Anticipated expenditures, with at least as much detail as set out in the tax levy
ordinance and the appropriation ordinance.
b. Anticipated revenues to be allocated to each department, including fees, taxes,
charges, income from utilities and any other source of income.
c. Depreciation costs for enterprise assets.
d. Such other detail that is requested by a majority vote of the City Council.
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2. The tentative budget as prepared by the City Treasurer shall be advisory and not
binding on the City Council. Only upon passage of an appropriation ordinance shall
such budget become binding. The expenditures in the budget shall not exceed
revenues unless otherwise provided as set forth in the Idaho Code section 50-1006.
3. October 20 shall be the cut-off date for late submittal of bills that will be paid by
the City in the previous fiscal year and purchases by the City shall be made prior to
that date. Contracts may require that bills be paid and purchases made in the
following fiscal year and those matters shall be handled as carryover items shown in
the budget for the next year.
4. Idaho Code section 50-1 005A states that cities may accumulate fund balances at
the end of a fiscal year and carry over such fund balances into the ensuing fiscal year
sufficient to achieve or maintain City operations on a cash basis. A fund balance is
the excess of the assets of a fund over its liabilities and reserves. Balances that are
carried over shall go into the appropriate fund, but may be used to fund the City
Department that had the fund carryover from the previous fiscal year.
E. Audits:
1. It shall be the duty ofthe City Council to have a complete and thorough audit of
the financial statements ofthe City as set out in Idaho Code sections 67-450B and 50-
1010. The expenses required to obtain such an audit shall be included in the City
annual budget. The City Treasurer shall submit the necessary financial statements to
the auditor no later than December 1 following the end of the fiscal year. The City
Council, by a majority vote, shall appoint a qualified certified public accounting
(CPA) firm to conduct such an audit. The CPA firm shall be hired for a time period
not to exceed two (2) years at which time the City Council shall either renew such
period or hire another qualified CPA firm. Such audit shall be submitted to the City
Council no later than January 5 followi1'lg the end of the 2nd quarter of the fiscal year.
2. The City Council shall retain the right to order the Treasurer or a qualified CPA
firm to conduct internal audits as frequently and as necessary as may be needed.
F. Performance Audit: As the City Council deems necessary, the City Council shall
appoint a certified CPA firm or consulting firm to conduct a performance audit for all
specified departments. This performance audit shall be as extensive and detailed as
the City Council deems necessary.
Section 2. That all ordinances, resolutions, orders, or parts thereof or in
conflict with this ordinance are hereby voided.
Section 3. That pursuant to the affirmative vote of one-half (112) plus one (1)
of the Members of the full Council, the rule requiring two (2) separate readings by title
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and one (1) reading in full be, and the same is hereby, dispensed with, and accordingly,
this Ordinance shall be in full force and effect after its passage, approval and publication.
PASSED by the City Council of the City of Meridian, Idaho, this
day of , 2006.
of
APPROVED by the Mayor of the City of Meridian, Idaho, this day
, 2006.
APPROVED:
MAYOR
ATTEST:
CITY CLERK
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NOTICE AND PUBLISHED SUMMARY
OF ORDINANCE PURSUANT TO I.C. ~ 50-901(A)
CITY OF MERIDIAN ORDINANCE NO. 06-
PROVIDING FOR AN AMENDMENT OF
THE PRESENTATION OF THE CITY'S ANNUAL AUDIT
An Ordinance ofthe City of Meridian amending Title 1, Chapter 9, Section 3 of the
Meridian City Code.
A full text of this ordinance is available for inspection at City Hall, City of Meridian,
33 East Idaho, Meridian, Idaho. This ordinance shall become effective upon the passage
and publication.
Mayor and City Council of the City of Meridian
By: William G. Berg, Jr., City Clerk
First Reading: Adopted after first reading by suspension of the
Rule as allowed pursuant to Idaho Code 50-902: YES NO
Second Reading: Third Reading:
STATEMENT OF MERIDIAN CITY ATTORNEY AS TO ADEQUACY OF
SUMMARY OF ORDINANCE NO. 06-
The undersigned, William L.M. Nary, City Attorney of the City of Meridian,
Idaho, hereby certifies that he is the legal advisor of the City and has reviewed a copy of
the attached Ordinance No. 06- of the City of Meridian, Idaho, and
has found the same to be true and complete and provides adequate notice to the public
pursuant to Idaho Code ~ 50-901A (3).
DATED this day of , 2006.
William. L.M. Nary, City Attorney
AMENDMENT OF THE PRESENTATION OF CITY'S ANNUAL AUDIT
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