3.04. 010 Purpose.

The purpose of this chapter is to establish procedure for the preparation and administration of the city's budget. These procedures include estimates of the services, activities and projects comprising the budget; the resultant expenditure requirements; and the resources available for the budget. Its provisions, are intended to enable the council to make financial plans, to insure that all officials administer their respective functions in accordance with these plans, and to permit taxpayers and investors to form intelligent opinions based on sufficient information as to the financial policies and administration of the city. For the accomplishment of this purpose, the provisions of this chapter shall be broadly construed. (Prior code § 2-96)

3.04. 020 Definitions.

For the purposes of this chapter, the following words and phrases shall, when used in this chapter have the meanings respectively ascribed to them by this section:

"Appropriation" means an authorization granted by the city council to make expenditures and to incur obligations for specific purposes.

"Budget" means the plan of financial operation adopted by the council embodying an estimate of authorized expenditures for the applicable fiscal year and the proposed means of financing them.

"Capital improvement project" means a public improvement such as a building, street, or acquisition of real property.

"Encumbrance" means an obligation in the form of a purchase order or a contract. Such obligation ceases to be an encumbrance when paid.

"Revenue" means all revenues from any source whatsoever for all funds anticipated to be collected during the fiscal year.

"Expenditures" means any charges incurred, whether paid or unpaid.

"Fiscal year" shall commence on the first day of July of each year and shall end on the thirtieth day of June the following year.

"Preliminary budget" means the plan of financial operation for the next fiscal year submitted by the city manager to the council for its consideration.

"Unappropriated surplus" means that portion of a given fund which is not segregated for specific purposes. It can include, but is not limited to, unallocated funds from previous years and revenue received in excess of estimated revenue and requirements.

"Unencumbered appropriation" means that portion of an appropriation not yet expended or encumbered. (Prior code § 2-95)

3.04. 030 Application.

This chapter shall apply to both annual and long-term budgets and to all departments and agencies of the city. (Prior code § 2-97)

3.04. 040 Preliminary budget.

A. The city manager shall submit to the council on or before May 15th of each year a preliminary budget. The preparation and submission of the preliminary budget shall follow a budget calendar as prepared by the city manager. For such purpose and at such date as he determines, he shall obtain from the head of each department estimates of revenues and expenditures of that department. The preliminary budget shall include:

1. The city manager's budget message;
2. A summary by funds;
3. Schedules of expenditures by function and program;
4. Schedules of revenues by source.

B. Provisions shall be made in the preliminary budget for the following:

1. Interest, amortization and redemption charges on the public debt for which the faith and credit of the city is pledged;
2. Other statutory expenditures;
3. The payment of all judgments;
4. Administration, operation and maintenance of the city; and
5. Expenditures to be appropriated for the fund for capital improvement projects in an amount not to exceed any limitation prescribed by law except as authorized by law. (Prior code § 2-98)

3.04. 050 Preliminary budget a public record.

The preliminary budget as submitted by the city manager shall be a public record in the office of the city clerk and open to public inspection. (Prior code § 2-99)

3.04. 060 Public hearing on budget.

The council shall hold a public hearing on the preliminary budget at a time and place to be announced in advance prior to the adoption of said budget. (Prior code § 2-100)

3.04. 070 Amendment of budget.

The council shall consider the preliminary budget and make revisions as may be deemed advisable except as to expenditures fixed by law or as limited by the provisions of California State Code; provided, however, that where the council shall increase the total proposed expenditures, the increase shall be balanced by estimated revenues or other available resource. (Prior code § 2-101)

3.04. 080 Adoption of budget.

The budget for the ensuing fiscal year shall be adopted by the council by resolution. (Prior code § 2-102)

3.04. 090 Date of adoption--Failure to adopt.

The budget for the ensuing fiscal year shall be adopted not later than the thirtieth day of June prior to the beginning of the budget year. Should the council fail to adopt the budget on or before such day, the preliminary budget as submitted by the city manager or as thereafter duly amended by the council shall constitute an appropriation as to all expenditures proposed therein, except capital improvement outlays, until further action by the council. (Prior code § 2-103)

3.04. 100 Effective date of budget.

Upon adoption, the budget shall be in effect for the applicable fiscal year. (Prior code § 2-104)

3.04. 110 Filing and copies of adopted budget.

A copy of the budget, as adopted, shall be filed in the office of the city clerk. The director of finance shall cause the budget to be duplicated in order that copies thereof shall be available for the use of all departments and for inspection by interested persons. (Prior code § 2-105)

3.04. 120 Budget administration.

The director of finance shall supervise and be responsible for the disbursement of all monies and have control over all expenditures and insure that all appropriations are not exceeded. The director of finance shall exercise budgetary control over the appropriations. No expenditure or encumbrance may be made unless the director of finance has certified that there is a sufficient unencumbered balance in the proper appropriation. (Prior code § 2-106)

3.04. 130 Transfer of appropriations.

The city manager may transfer any unencumbered appropriation balance or portion thereof within a specific fund; provided, however, that transfer of any amount from unappropriated surplus shall be subject to the approval of the council. No transfer shall be made from the appropriations made in accordance with Section 3.04.040 B(1), (2) and (3). (Prior code § 2-107)

3.04. 140 Appropriations lapse at end of fiscal year.

All appropriations shall lapse and be returned to unappropriated surplus at the end of the budget year to the extent that they shall not have been extended, lawfully encumbered, or placed in a reserve. (Prior code § 2-108)