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HomeMy WebLinkAbout788 Fiscal Responsibility ORDINANCE N0.788 AN ORDINANCE OF THE CITY OF MERIDIAN ADOPTING A NEW CHAPTER IN TITLE 1 OF THE REVISED AND COMPILED ORDINANCES OF THE CITY OF MERIDIAN TO BE KNOWN AS, "FISCAL RESPONSIBILITY ", TO SET FORTH AND ESTABLISH FOR THE CITY COUNCIL, CITY COMMISSIONERS, APPOINTEES, EMPLOYEES, AND OTHER PEOPLE ASSOCIATED WITH THE CITY OF MERIDIAN THE FOLLOWING: BUDGET POLICY, FISCAL YEAR, MONTHLY BUDGET, ANNUAL BUDGET, AUDITS, AND PERFORMANCE AUDIT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Mayor and the City Council of the City of Meridian, State of Idaho, have concluded that it is in the best interest of the C$y to adopt a new chapter to Title 1, of the Revised and Compiled Ordinances of the City of Meridian to set forth and establish a FISCAL RESPONSIBILITY Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MERIDIAN, ADA COUNTY, IDAHO: SECTION 1: That there is hereby adopted a new Chapter to Title 1 of the Revised and Compiled Ordinances of the City of Meridian known as Chapter 16, FISCAL RESPONSIBILITY ORDINANCE, which shall read as follows: FISCAL POLICY SECTION 16-100: Budget Policy: 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 of Meridian. This budget shall FISCAL RESPONSIBILITY also serve the purpose of advising the City Council and Mayor about the fmances of the City and assist the City Council in deternilning what they desire to do for the City and in setting its goals. The City Treasurer shall meet the provisions of Idaho Code, 50-208, and shall be custodian of the moneys 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 Ordinance. The annual budget shall show expenditures and revenues as required in Idaho Code § 50-1002. 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 wazrants 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. SECTION 16-101: Fiscal Yeaz: The fiscal year for the City of Meridian shall begin on the lrt day of October as set out in Idaho Code § 50-1001. FISCAL RESPONSIBILITY SECTION 16-102: Monthly Budget: 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 yeaz 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 aze being expended, i.e. salaries, equipment, services, etc. This monthly budget statement shall be submitted to the City Council prior to their 2nd monthly meeting, as set out in Idaho Code § 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. SECTION 16-103: Annual Budget: At least 60 days before the annual appropriation Ordinance is due, the City Treasurer/City Clerk shall submit a tentative annual budget to assist the City Councfl 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 Councfl shall begin budget workshops 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 60 days prior to the appropriation Ordinance due date at which time the treasurer FISCAL RESPONSIBII.ITY shall submit such projections as set out in this Ordinance. The tentative budget shall show the following items: Anticipated expenditures, with at least as much detail as set out in the tax levy Ordinance and the appropriation Ordinance. 2. Anticipated revenues to be allocated to each department, including fees, taxes, chazges, income from utilities and any other source of income. 3. Depreciation costs for enterprise assets. 4. Such other detail that is requested by a majority vote of the City Council. The tentative budget as prepazed 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 § 50-1006. October 20th shall be the cut-off date for late submittal of bills that will be paid by the City in the previous fiscal yeaz 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 carry over items shown in the budget for the next year. Idaho Code, 50-1005A states that cities may accumulate fund balances at the end of a fiscal yeaz and carry over such fund balances into the ensuing fiscal yeaz 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 aze 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. SECTION 16-104: Audits: FISCAL RESPONSIBILITY (a) It shall be the duty of the City Council for the City of Meridian to have a complete and thorough audit of the financial statements of the City as set out in Section 67-450B and 50-1010, Idaho Code. The expenses required to obtain such an audit shall be included in the City of Meridian's 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 yeaz. The City Council, by a majority vote, shall appoint a qualified certified public accounting firm (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 following the fiscal year. (b) 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. SECTION 16-105: 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 necessazy. SECTION 2: EFFECTIVE DATE: WHEREAS, there is an emergency therefor, which emergency is hereby declared to exist, this Ordinance shall be in full force and effect from and after its passage, approval and publication according to law. PASSED AND APPROVED this 3,e0 day of Mazch, 1998. CITY OF MERIDIAN FISCAL RESPONSIBILITY ATTEST: pp~~"~~ .1`~ (iC-c~i G LIAM G. BERG, JR. - C TY LERK 03-10-98 -- Final /~~~~~~~``eee~~t~`+`'` N.a ~~~ ~~~~ SEAL Y ~Q ~~''~ ~tmr'cv • ....~`` FISCAL RESPONSIBILITY