8185-10ORDINANCE NO. 8185-10
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
AMENDING CODE OF ORDINANCES ARTICLE VI, DIVISION 2,
FISCAL MANAGEMENT PROCEDURE; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, Cit y of Clearwater Code of Ordinances Article VI, Division 2
describes various fiscal management procedures to be followed by the City; and
WHEREAS, several revisions are required based upon changes in state law, charter
changes, position title changes and technology changes; now therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CLEARWATER, FLORIDA:
Section 1. That Article VI, Division 2., Clearwater Code of ordinances is
amended as follows:
ARTICLE VI. FISCAL MANAGEMENT*
DIVISION 2. FISCAL MANAGEMENT PROCEDURE*
Sec. 2.511. Financial administration.
Accounting, finance and treasury functions of the city will be combined in a single
finance department under the direction of a finance director. For purposes of reference
to the historical record or current or future documents wherein either title may appear,
the titles city treasurer and finance director are deemed to be synonymous. The finance
director shall be the custodian of all monies of the city, which shall be deposited in a
ban ualified public de osito in accordance with Florida Statutes Chapter 280,
selected by competitive bids or in such other manner as the ^^mmi?ci,.., council may
deem appropriate. Funds GA deposit in such bai;k shall be seoured by GellateFal pledg
its own . All bank accounts shall be in the name of the city. The finance director
will ensure that an accounting system is maintained in accordance with generally
accepted accounting principles for governmental accounting as set forth in publications
of the
O ieeFs sserai"ti^" Governmental Accountin Standards Board and the Financial
Accounting_ Standards Board.
Ordinance No. 8185-10
Sec. 2.512. Deputy-Assistant finance director.
The city manager, upon the request of the finance director, may appoint a-de"gn
assistant who, when so appointed, shall have the same powers and authorities and
shall conform to all the rules of the city and of the law as the city finance director.
Sec. 2.513. Submission of operating budget, capital improvements budget and program
and budget message.
No later than 60 days prior to the end of each fiscal year, the city manager shall submit
to the city eemmissioncouncil as-an operating budget for the ensuing fiscal year, a
capital improvements budget and a five-year capital improvements program, and an
accompanying budget message.
Sec. 2.514. Contents of budget message.
The city manager's budget message shall explain the budget both in fiscal terms and in
terms of work programs. The budget message shall outline the proposed financial
policies of the city for the ensuing fiscal year; describe features of the budget; indicate
any major changes from the current year in financial policies, expenditures and
revenues, together with the reasons for such changes; summarize the city's debt
position and include such other supplementary material as will further explain the
organization and content of the budget or such material as the city eemmissieRCouncil
may request.
Sec. 2.515. Contents of operating budget.
(1) Operating budget documents shall provide a complete financial plan of all city
funds and activities for the ensuing fiscal year, and shall be presented in such form as
stated in this section. In organizing the operating budget, the city manager shall utilize
the most meaningful combination of expenditure classifications as will adequately
disclose all material amounts budgeted by fund, organization unit, program, purpose or
activity, and object. It shall begin with a clear summary of its contents; shall show in
detail all estimated revenue including the sources thereof, indicating the proposed
property tax level, and all proposed expenditures, including debt service for the ensuing
fiscal year; and shall be so arranged as to show comparative figures for actual and
estimated revenues and expenditures of the preceding year, and budgeted revenue and
expenditures of the current fiscal year. It shall indicate in separate sections:
(a) General operating budget. Proposed revenues and expenditures for general
operations, including those capital expenditures contained in the operating budget and
any transfers of general fund revenues to other funds, during the ensuing fiscal year,
detailed to program levels by departments in terms of their respective work programs.
(b) Enterprise and WFagovemmental internal service funds.
Ordinance No. 8185-10
1. Proposed operating expenditures, including those capital expenditures contained in
the operating budget and transfers to other funds, and estimated revenues of all
enterprise and ^*r°^^d.^^?°^*°' internal service funds will be attached;
2. A statement of estimated net income or deficit from operations for the current year
for each such fund, including the proposed treatment of such net income or deficit.
(2) Proposed expenditures or transfers from revenues shall not exceed for each fund
the total of estimated income for the ensuing fiscal year plus existing fund resources
anticipated to be available for appropriation at the beginning of that year.
Sec. 2.517. City cemm°__°c^=ouncil action on budgets.
(1) Notice of hearing. In addition to the notice required by general law, theme city
eemmisscouncil shall osto on the
City's website at least seven days prior to the first statutorily re uired public hearing on
the tentative budget and the proposed millage rate: the general summary of the
operating budget, the capital improvements budget and program, the rolled-back rate,
the percentage increase or decrease and the proposed mills a rate and a notice
stating:
(a) The times and places where copies of the budget message, operating budget,
capital improvements budget and program are available for inspection by the public;
and
(b) The times and places for public hearings.
(2) Amendment before adoption. After the statutorily required public hearings, the city
Gernmoss council may adopt the operating and capital improvements budgets with or
without amendment. In amending the operating budget, it may add or increase
programs or amounts, or may delete or decrease, except expenditures required by law
or for debt services or for estimated cash deficit, provided that no amendment to the
operating budget shall increase the authorized expenditures to an amount greater than
the total estimated income plus existing fund resources anticipated to be available for
appropriation at the beginning of the ensuing fiscal year.
(3) Adoption. The city eemmissiencouncil shall adopt the operating budget and capital
improvements budget and program by separate ordinances on eF bef^'° two week
prior to the end of each current fiscal year for the ensuing fiscal year. If it fails to adopt
the operating budget by that time, the amounts appropriated for current operation for the
current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-
month basis, with all items in it prorated accordingly, until such time as the city
ouncil adopts an operating budget for the ensuing fiscal year. Adoption of
the operating budget shall constitute appropriations for the amounts specified therein as
expenditures from funds indicated and shall constitute a levy of the property tax therein
specified.
(4) Notice of hearing regarding discussion of the use of Penny for Pinellas funds or for
changes in the amount of project funding.
Ordinance No. 8185-10
Prior to the adoption of the capital improvement budget, a special public hearing shall
be held to discuss the use of Penny for Pinellas tax. The city eemmissiencouncil shall
public once in a newspaper of general circulation at least seven days prior to the
hearing a notice stating:
(a) The general summary of the proposed usage or change, and the times and places
where copies of the proposed changes are available for inspection by the public; and
(b) The times and places for the public hearing.
Sec. 2.519. Amendments after adoption.
(1) Supplemental appropriations. If during the fiscal year the city manager certifies
that there are available for appropriation revenues in excess of those estimated in the
budget, the city ouncil, by ordinance, may make supplemental
appropriations for the year up to the amount of such excess.
(2) Emergency appropriations. To meet a public emergency affecting life, health,
property or the public welfare, the city eemmissiencouncil may make emergency
appropriations. Such appropriations may be made by emergency ordinance. To the
extent that there are no available unappropriated revenues to meet such appropriations,
the city run-mm'°-s;^^council may by such ordinance authorize the issuance of
emergency notes which may be renewed from time to time, but the emergency notes
and renewals of any fiscal year shall be paid not later than the last day of the fiscal year
next succeeding that in which the emergency appropriation was made.
(3) Reduction of appropriations. If at any time during the fiscal year it appears
probable to the city manager that the revenues available will be insufficient to meet the
amount appropriated, such event shall be reported to the city ooMmissieRcouncil
without delay. Such report shall indicate the estimated amount of the deficit, any
remedial action taken by the city manager and recommendation as to any other steps to
be taken. The city ouncil shall then take such further action as it deems
necessary to prevent or minimize any deficit, and for that purpose it shall by ordinance
reduce one or more appropriations.
(4) Transfer of appropriations. At any time during the fiscal year the city manager may
for reasons of economy or efficiency, transfer part or all of any unencumbered
appropriation balance among programs within an operating fund, provided such action
does not result in the discontinuance of a program. The city manager may transfer
appropriations within the capital budget provided such transfer does not result in
changing the scope of any project or the fund source included in the adopted capital
budget. Such operating and capital transfers must be included in the next budget review
presented to the city ^^^^?^. - - . - council. Upon detailed written request by the city
manager, the city ouncil may by ordinance transfer part or all of any
unencumbered appropriation balance from one fund to another.
(5) Limitations; effective date. No appropriation for debt service may be reduced or
transferred except where such reduction or transfer is surplus and will not jeopardize
the specific debt service requirements. No appropriation may be reduced below any
amount required by law to be appropriated by more than the unencumbered balance
4 Ordinance No. 8185-10
thereof. The supplemental and emergency appropriation and reduction or transfer of
appropriations authorized by this section may be made effective immediately upon
adoption.
(6) If after adoption of the capital improvements budget and program there is a change
proposed for the use of Penny for Pinellas tax, adding or subtracting $500,000.00 or
more from a project approved in the capital improvement budget or adding new projects
in excess of $500,000.00, there shall be an advertised public hearing before the city
eernmiss council as set forth in section 2.517(4) above.
Sec. 2.520. Lapse of appropriations.
Every appropriation, except an appropriation for a capital improvements budget
expenditure, shall lapse at the close of the fiscal year to the extent that it has not been
expended or encumbered. An appropriation for a capital improvements expenditure
shall continue in force until the purpose for which it was made has been accomplished
or abandoned. The purpose of any such appropriation may by action of the city
s^^^^ council, be declared abandoned if three years pass without any
disbursement from or encumbrance of the appropriation.
Sec. 2.521. Administration of budget.
(1) Payments and obligations prohibited. No payments shall be made or obligation
incurred except in accordance with appropriations duly made and unless the-s+ty
FnanageF first there are sufficient funds therefrom and are or will be
available to cover the claim or meet the obligation when it becomes due and payable.
Any authorization of payment or incurring of obligation in violation of the provisions of
this division shall be void and any payment so made illegal. Such action shall be cause
for removal of any person who knowingly authorized or made such payment or incurred
such obligation, and such person shall also be liable to the city for any amount so paid.
However, except where prohibited by law, nothing in this section shall be construed to
prevent the making or authorizing of payments or making of contracts for capital
improvements to be financed wholly or partly by the issuance of bonds or to prevent the
making of any contract or lease providing for payment beyond the end of the fiscal year,
provided that such action is made or approved by ordinance.
(2) Quarterly report. The city manager shall prepare a quarterly report for the
operating and capital improvements budgets. Such reports shall contain:
(a) Anticipated quarterly income estimates, actual collections and variance between
estimated and actual income for all city operating funds;
(b) Projected quarterly expenditure estimates, actual expenditures and variance
between estimated and actual expenditures for all city operating funds;
(c) A narrative explanation of significant variances listed above;
(d) Financial status of all active capital improvements projects.
Sec. 2.522. Approval of debt instruments.
Ordinance No. 8185-10
M Except those obligations incurred pursuant to the provisions of division 3 of this
article, the purchasing code of the city, no debt instrument, bonds, notes, mortgages,
debentures, loans or other evidences of debt not specified in this division, shall be valid
without the explicit approval by a majority of the city rammissieRcouncil. Such approval
shall be in the form of an ordinance with public hearings as required by state law, for all
debt instruments for which the repayment period extends beyond 12 months after the
date of obligation. A city ouncil resolution or ordinance may be used to
approve a debt instrument maturing 12 months or less after the date of obligation. The
requirements provided in this section shall be considered to be additional or
supplementary to the borrowing requirements set out in F.S. ch. 166, pt. II.
_(2) in addition to the reqUiFements set out in subseetien (!)of this seotion, all Fevenue
bonds fOF pFe;eGts in exeess ef $1,000,000.00 must be submitted to the publiG at a -
PUFPGSeS-m
Sec. 2.526. Signatures on checks.
Checks or warrants for payment of monies shall be signed by mechanical check signing
equipment bearing the facsimile signature of the city manager and the finance director.
Manually signed checks will be signed by the finance director or his d° esignated
alternate and the city manager or his designated alternate.
Sec. 2.528. Dishonored check, service fee.
(1) Any person issuing a check, draft or any other order to the city for the payment of
money, which check, draft or order is dishonored, shall be subject to a service fee in the
exceeds $50.00 but does nat exeeed $300.00; $40.00, the faee value exe
erderaccordance with Florida Statutes Chapter 68. The service fee shall be in addition
to all other penalties imposed by law. Proceeds from this fee, if imposed, shall be
retained by the city.
(2) Violations involving checks and drafts shall be governed by Florida Statute 832.
Section 2. This ordinance shall take effect immediately upon adoption.
PASSED ON FIRST READING June 17, 2010
Ordinance No. 8185-10
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Approved as to form:
Pamela K. Ain
City Attorney
Frank V. Hibbard
Mayor
Attest:
OF Fite Cynthia E. Goudeau?
City Clerk
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Ordinance No. 8185-10