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HomeMy WebLinkAbout19980219 Charter AgendaMEMORANDUM TO: Charter Commission Members FROM: Daye Osberg, City Administrator DATE: February 17, 1998 SUBJECT: Charter Commission Meeting A meeting of the Hastings Charter Conunission is, scheduled for Thursday February 19, 1998 at 7:00 PM at the Hastings City Ha11. The primary~purpose of the meeting wi116e to review Chapter V of the City Charter, Taxation and Finance, I have attached a copy of Chapter V, lirxalion and Finance from. the City Charter. In addition, Charter Commission members wilt also find attached a copy of possible changes that could be considered for Chapter V, Taxation crrad Finance. This was prepared by Finance Director Lori Webster, with direction provided by the City Council Finance Committee, consisting of City Councilmembers Janice Johnson, Lynn Moratzka and Mike Si:nacek, Both documents can be the basis far the discussion during our meeting on Thursday February 19, 1998 at 7:00 PM. Please call me if you have any questions, or will be unable to the meeting. An agenda for the meeting is listed below. I. ~ Call to Order and Determination of a Quorum IL Approval of Minutes of October 9, I997Meeting (Attached) III. Unfinished Business aG) Chapter Y, Taxation and Finance IY. Nefv Business V. Adjournment David M. Osberg City Administrator cc. Lori Vl~~ster, F~fiance Director A~ 3 7 r }"y-~ {~ r s` CL-lAI .t i:1Z 33N T AXAZ'lON AND FINANCE SECTION 5.01. TAXATION. The City Council shall have full authority over the financial affairs of the City, except as limited or prohibited by the State constitution, State Laws, or this Charter. This authority shall include the power to assess, levy, and collect taxes on all subjects or objects of taxation, except as limited or prohibited by the State Constitution, State Law, or this Charter. SECTION 5.02. FISCAL YEAR. The fiscal year of the City shall be the calendar year. SECTION 5.03. BOARD OF EQUALIZATION. The City Council shall constitute a Board of Equalization and shall meet as such i_n accordance with the provisions of Minnesota Statutes 274.01, as amended. The City Council, by resolution., may transfer the duties of the City Board of Review or Board of Equalization under Minnesota Statute Chapter 274 to the Dakota County Board of Equalization. SECTION 5.04. SUBMISSION OF BUDGET_ On or before the date specified by the City Council, the City Administrator, shall submit to the City Council a budget for the fallowing fiscal year and an accompanying budget message. SECTION 5.05- BUDGET 1VIESSAGE. The Budget Off cial shall explain the budget in detail as follows: (A) Tn fiscal terms, particularly noting financial policies, expenditures, revenues, and debt position. (B} In terms of its relationship to work prograrz~s and to current capital improvement programs. - (C} In relationship to prior years, particularly as related to major changes and important features. The reasons for such changes shall be clearly delineated. SEC_ ICON 5.05. BUDGET. The budget shall provide a cornpiete financial plan of all City funds and activities for the ensuing fiscal year and, except as required by Law or this Charter, shall be in such form as the Budget Official deems desirable, or the City Council nsay require. 1n organizing the budget, the Budget Official shall utilize the most feasible combination of expenditure classification by fund, organization unit, programs, purpose or activity, and object. l<t shall begin with a clear general surrzuaary of its contents: shall show in detail all estimated income, indicating the proposed property tax levy, and all proposed expenditures including debt service, for the ensuing fiscal year; it shall be so arranged as to show comparative figures for actual and estimated income and expenditures of the current fiscal year and actual income and expenditures of the preceding fiscal year. It shall indicate irr separate sections: (A}~ Proposed expenditures for current operations during the ensuing fiscal. year, detailed by offices, departments and agencies in terms of the respective work programs, grad the method of financing such expenditures; (B} Proposed capital expenditures during the ensuing fiscal year, detailed by offices, departments and agencies when practicable, and the proposed method of financing each such capital expenditures; and -1- (C} Anticipated net surplus or deficit for the following fiscal year of each utility or other -income producing property owned-ar operated by the City and the proposed method of its disposition; subsidiary budget for each such utility and property giving detailed income and expenditure information shall be attached as appendices to the budget. The total of proposed expenditures shall not exceed the total of estimated income, which may include current fund balances. SECTION 5.07. CAPITAL PROGRAM. Submission to Council. The Budget Official - _ - sball prepare and submit to the City Council afive-year capital program at least three (3) months prior to the final date for submission of the budget. The capital program shall include: (A} A clear general s~-iuzmary of its contents. - (B} A list of all capital improvements which are proposed to be undertaken dosing the five fiscal years next ensuing, with the appropriate supporting information as to the necessity for such improvements. . (C} Cost estimates. Method of financing and recommended time schedule for each such improvement; and (D) The estimated ar~.uual cost of operating and maintaining the facilities to be constz-acted or acquired. The capital program may be revised and extended each year with regard. to capital improvements still pending ar in process of constructian.or acquisition. SECTION 5.08_ COUNCIL, ACTION ON BUDGET. The City Council may adapt the budget with or without amendment. In amending the budget it znay add or increase programs, ar amounts, and may delete or decrease any pragrarns or amounts, except - expenditures required by law or for debt ser-vice or for estimated cash deficit, provided that na amendment to the budget shall increase the authorized expenditures to an. amount greater than the total of estimated income. The City Council by a majority vote of all its members, shall adopt the budget and certify the property tax levy far the following fiscal year to the County by the date required by law. Lf it fails to adopt the budget by this day, the amount appropriated for current operation for the current fiscal year shall be deemed adopted for-the ensuing fiscal year an a month-to-month basis, with. all items in it prorated accordingly, until such time as the City Council adopts the budget far the ensuizzg year. The adoption of the budget shall constitute appropriation of the amounts specified therein, as expenditures from tl~e funds indicated, and shall constitute a levy of the property tax therein proposed. SECTION 5.09_ COUNCILA.CTION UN CAPITAL PROG1tAM. The City Council, by resolution, shall adopt the Capital Program with or without amendment, at the same tune the Council approves the budget for the next fiscal year. -2- SECTION 5.10_ Pl_JBLIC RECORDS. Copies of the budget and the capital program adopted shall be public records and shall be made available to the public at the office of the City Clerk_ SECTION S.II_ CERTI1=fCATTON Op' TAX f.EVY. After the adoption of the budget, the City Council shall by resolution deter~xiine the amount to be provided by an ad valorem tax on all taxable property of the City. In addition to the amount required to be provided, the City Council may include not more than five percent thereof =for tax delinquencies. 'The resolution shall be certified to the County Auditor as required by the Laws of the State of Minz,esota_ _. SECTION 5.12. AMENDMENTS ILI~'I'ER ADOPTION. {Aj Supplemental appropriations_ If durizig the fiscal year the Budget Official . certil=ies that there are available far appropriation, revenues in excess of those estimated in the budget, the Ciry Couriezl ley resolution may make supplezricntal appropriations for the year up to the amount of such excess. {B} Reduction of apprapriatioias. If at any time during the fiscal year it appears probable to the Budget Official that the revenues available will be insufficient to meet the amount appropriated, he or she shall report to the City Council without delay, indicating the estimated amount of the deficit, any remedial action taken by him or her, and lus or her recarnznendations as to any other steps to be taken_ `t'he City Council shall then take such fi~_rtlaer action as it deems necessary to prevent or minimise any deficit, and for that purpose-it may by resolution reduce one or more appropriations. {C) Transfer of appropriations. At any time during .the fiscal year the Budget Official may transfer part or all of any unencumbered appropriation amounts among programs within a department, office, or agency, and, upon written .request by the Budget Official, the City Council may, by resol~Ttion, transfer part or all of any unencumbered appropriations balance fro~ri one department, office, or agency to another. {D) Limitation_ No appropriation for debt service may be reduced or transferred, and no appropriation rriay be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. SECTION 5.13. LAPSE OT Al?PROPRIATTONS. Every appropriation, except an appropriation. for a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for capital expenditure shall continue to be in force until the purpose for which it was made has been accomplished or abd~idonzd; the purpose of any such apprapria€ion shall be deemed abandoned i#~the funds or apportionment arc not disbursed during the planned capitalization 1}eriod_ -3- SEC`I'iON 5.14_ DISBURSEMENT' OF FUNDS. Disbursement shall be made pursuant to procedures prescribed -.by~-.C~ty-..ordinance. No payment shall be made oz obligation incurred against any allotment or appropriation except in accordance with appropriations duly made and unless the Budget Official first certifies that there is a sufficient arx~.ount of unencumbered balance in such allotment or appropriation and that sufficient funds therefrom are, or will be available to cover the claim or meet the obligation when it becomes due and payable. Any authorization of payanent or incurring of obligation in violation of the provisions of this Charter shall be void and any payment so made illegal; such action shall be cause for removal of any officer who knowingly authorized or made such payment, or incurred such obligation, and he or she shall also be liable to the City for any amount so paid. However, except where prohibited by Law, nothing in this Charter shall be construed to prevent the making or authorizing of payments or making of contracts for capital improvements to be financed wholly or partly for the issuance of bonds or by grants ar gifts or to prevent the making of any contract or providing for payments beyond the end of the fiscal year, provided that such action_is made or approved by resolution. SECTION 5.T5. FUNDS. The City shall maintain such funds as are required by State Statute, or by resolution or ordinance of the City Council. SECTION 5.1b. REPORTS. The Budget~Official shall be the chief accounting officer of the City and every branch thereof. He or she shall submit a quarterly statement to the Cify Council showiatg the status of all funds, sums spent or chargeable against each of the annual bndget allowances and the balances Ieft therein and such other information relative to the finances of the City as the City Council may require on March 1 of each year. The Budget Official shall submit a similar report to the City Council for the entire preceding year_ SECTION 5.17. BORROWING. The City may borrow money for such purposes, in such manner, and to such extent as permitted by the Laws of the State of Minnesota_ Whenever said laws require prior approval of the electors for any borrowing by the City, such approval shall not be required provided that the City Council adopts-a resolution by a vote of at least three-fourths {3~4) of all its members determining to undertake such borrowing and unless within ten {10) days after the second publication of such resolution which must be published twice, a week apart, in the off7ciai newspaper of the City, a petition, signed by voters of the City equaling not less than 5 percent of the number voting in the last general election held in the City, shall be filed with the City Clerk requesting an election. -_ 4 Chapter 5 Taxation and Finance Section 5.01 err Council to Control Finances 5.02 Fiscal Year 5.03 System of Taxation 5.04 Board of Eclualizatian 5.05 Preparation of the Annual Budget 5.06 B~}get Passage of the Budget 5.07 Capital Program 5.08 Enforcement of the Bud et 5.09 Alterations or Amendments to the Bea et 5.10 Pubfic Records 5.11 Certification of Tax Levy 5.12 Funds 5.13 Lapse of Appropriations 5.14 Disbursement of Funds 5.15 Ftmels Emergency Appropriation in Budget 5.16 ~ Accounts and Reports 5.17 Borrowing CITY OF HASTINGS -CHARTER CIIAPTER V TAXATION AND FINANCE SECTION S.D1. ~~~ COUNCIL TO CONTROL FINANCES. The Council shall have full authority over the financial affairs of the City, > > ' .and shall provide for the collection of all revenues and other asserts, the auditing and settlement of accounts,_ and the safekeeping and disbursement of public monevs_ and in the exercise of a sound discretion. shall make annronriations for the a~ment of all liabilities and expenses. SECTION 5.02 FISCAL YEAR. The fiscal year of the City shall be the calendar year. SECTION 5.03 SYSTEM OF TAXATION All property taxes shall be assessed and collected in the manner provided by iaw. Subject to Iaw, the Council shall have full power to provide by ordinance for a system of local taxation for general or special purposes. SECTION 5.04 BOARD OF EQUALIZATION. The City Council shall constitute a Board of Equalization and shall meet as such in accordance with the provisions of Minnesota Statues 274.01, as amended. The City council, by resolution, may transfer the duties of the City Board of Review or Board of Equalization under Minnesota Statue Chapter 274 to the Dakota and V~ashington Cauntyies Boards of Equalization. "TT"~'`T""T^''T ^r "r'r'~r~ SECTION 5.05. PREPARATION OF THE ANNUAL BUDGET. On or before the date specified by the City Council, the City Administrator, shall submit to the City council a budget for the following fiscal year and an accompanying budget message. The City Administrator shall prepare the estimates for the annual budget in accordance with eg nerally accepted accounting~rocedures for rnunic~al govern~nents_ The City Administrator shall explain the budget in detail as follows: ~A) In fiscal terms, particularly noting financial policies, expenditures, revenues, and debt position (B) In terms of its relationship to work programs and to current capital improvement programs `(C) In relationship to prior years, particularly as related to major changes and important features. The reasons for such changes shall be clearly delineated. The budget shall provide a complete financial plan of all City funds and activities for the ensuing fiscal year and, except as required by Law or this Charter, shall be in such form as the City Administrates deems desirable, or the City council may require. In organizing the budget, the City Administrator shall utilize the most feasible combination of expenditure classification by fund, organization unit, program, purpose or activity, and object. It shall begin with a clear general summary of its contents: shall show in detail all estimated income, income, indicating the proposed property tax levy, and all proposed expenditures including debt service, for the ensuing fiscal year; it shall be so arranged as to show comparative figures for actual and estimated income and expenditures of the current fiscal year and actual income and expenditures of the preceding fiscal year. It shall indicate in separated sections: (A} Proposed expenditures for current operations during the ensuing fiscal year, detailed by offices, departments and agencies in terms of the respective work programs, and the method of financing such expenditures; (B) Proposed capital expenditures during the ensuing fiscal year, detailed by offices, departments and agencies when practicable, and the proposed method of financing each such capital expenditures; and `(C) Anticipated net 'increase or decrease to retained earnings for the following fiscal year of each ' ~ Enterprise or Internal Service Fund of the City and the proposed method of its disposition; sib budget for each such Enterprise or Internal Service Fund p giving detailed income and expenditure information .The fatal of proposed expenditures shall not exceed the total of estimated income, which may include current fund balances. SECTION 5.06 PASSAGE OF THE BUDGET, Not later than the first re ug larznonthly meeting of the City Council in September, the Council shall establish dates for_public hearings for the budget. The meetings shall be conducted so as to give interest citizens a reasonable opportunity to be heard The City Administrator shall explain the various items thereof as fially as maybe deemed necessary by the Council. The annual budget finally a rg eed upon shall set Earth in detail the com lets financial lap of the Cit far the ensuin fiscal ear and shall be a roved b the ma'orit vote of the Council. The sums a ro rioted shall not exceed the funds available for each fund The City Council shall adopt the budget by resolution. The Council -shall also adopt a resolution lev~na whatever taxes it considers necessary within statutory. linnits for the ensuing year for each fund The tax levy resolution shall be certified to the Dakota and Washington Counties. The adoption of the budget shall constitute appropriation of the amounts specified therein, as expenditures farm the funds indicated, and shall constitutes a levy of the property tax therein proposed. SECTION 5.07 CAPITAL PROGRAM. Submission to Council. The City Administrator shall prepare and submit to the City council a five-year capital program ~ . The capital program shall include: (A) A clear general summary of its contents {B) A list of all capital improvements which are proposed to be undertaken during the five fiscal years next ensuing, with the appropriate supporting information as to the necessity for such improvements. `{C) Cost estimates. Method of financing and recommended time schedule for each such improvement; and (D) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The capital program maybe revised an extended each year with regard to capital improvements still pending or in process of construction or acquisition. The City Council, by resolution, shall adopt the Capital Program with ar without amendment, at the same time the Council approves the budget for the nest fiscal year. SECTION 5.08 ENFORCEMENT OF THE B[7DGET_ It shall be the dut of the Cit Administrator to strictly enforce the provisions of the budget. The City Administrator shall only approve orders upon the City Treasury for expenditures for which an appropriationhasbeep trade in the budget resolution {ar budget amendment) and for which there is a sufficient unexpended balance in the appropriated fiend after deducting the total past expenditures and the sum of all outstanding orders against such fund. Na officer or employee of the City_shall place any order or make an +~purchase except for a purpose and to the amo~authorized in the budaet resolution or bud et amendment . An obli anon incurred b an ersan in the em to of the City for an r~purpase not authorized in the budget resolution (or budget amendment) or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurrin the ex enditure. SECTION 5.09 ALTERATIONS OR AMENDMENTS TO THE BUDGET _, _ . The City Council may adopt the budget with or without amendment. in amending the budget it may add or increase programs, or amounts, and may delete or decrease any programs or amounts, except expenditures required by law or for debt service or for estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income. After the budget shall have been dul ado ted b resolution the Council ma at an time b resolution a roved b a ma'orit of its members amend the budget as follows: {A) Supplemental appropriations. If during the fiscal year the C~ Administrator certifies that there are available far appropriation, revenues in excess of those estimated in the budget, the City Council by resolution may make supplemental appropriations for the year up to the amount of such excess. (B) Reduction of appropriations. If at any time during the fiscal year it appears probable to the City Administrator that the revenues available will be insufficient to meet the amount appropriated, he or she shall report to the City council without delay, indicating the estimated amount of the deficit, any remedial action taken by him or her, and hislher recommendations as to any other steps to betaken. The City Council shall then take such further action as it deems necessary to prevent or minimize any deficit, and for that purpose it maybe resolution reduce one or more appropriations. `{C) Transfer of appropriations. At any time during the fiscal year the _ City Administrator may transfer part ar all of any unencumbered appropriation amounts among programs within a department, office, or agency, and, upon written request by the City Administrator, the City Council may, by resolution, transfer part or alI of any unencumbered appropriations balance form one department, office, or agency to another. {D) Limitation. Na appropriation for debt service may be reduced ar transferred, and no appropriation maybe reduced below any amount required bylaw to be appropriated ar by more than the amount of the unencumbered balance thereof SECTION 5.10 PUBLIC RECORDS. Copies of the budget and the capital program adopted shall be public retards and shall be made available to the public at the office of the City Clerk. SECTION 5.11 CERTIFICATION OF TAX LEVY. After the adoption of the budget, the City Council shall by resolution determine the amount to be provided 6y an ad valorem tax an all taxable property of the City, , . The resolution shall be certified to the County Auditor as required by the Laws of the State of Minnesota. "'-'`"r`'T^'`T ` ' ` SECTrON 5.12. FiJNDS The City shall maintained such funds as are required by State Statute, ar by resolution or ordinance of the City Council: {A) General Fund. To account for all financial transactions not properly accounted for in any other fund. Into this fund shall be paid all money not provided herein or by statue to be paid into any other fund. (B) Special Revenue Funds. To account for the proceeds of specific revenue sources (other that special assessments) or to finance specif ed activities as required by law or administrative regulation. `{C} Debt Service Funds. To account for the payment of interest and principal on long-term debt other than revenue bonds. Into this fund shall be paid all receipts farm taxes or other sources far the payment of principal and interest of all obligations issued by the City . Out of this fund shall be paid the principal and interest of such obligations when due. {D) Capital Projects Funds. To account for the receipt and disbursement ofmonies used far the acquisition of capital facilities- A separate account in the Capital Projects Funds shall be kept for each capital project. {E} Enterprise Funds. To account far the financing of services to the general public where all or mast of the casts involved are paid in the form of charges by users ar such services. Into the funds shall be paid all monies derived from the sale of obligations issued on account of such services and all monies derived from the sale of such services and from the sale of property used in connection with such services. There shall be paid out of this fund the cast of purchase, construction, operation, maintenance, and repair of such services including principal and interest on obligation issued for such services. A separate account in the Enterprise Funds shall be kept for each enterprise. {E) Internal Service Funds. To account for the financing an acost-reimbursement basis of goads or services provided by one department or agency to other departments or agencies within the City. (F) Trust and Agency Funds. To account far assets held by the City as trustee or agent far individuals, private organizations, and other governmental units. SECTION 5.13 LAPSE OF APPROPRIATIONS. Every appropriation, except an appropriation far a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for capital expenditure shall continue to be in force until the purpose for which it was made has been accomplished or abandoned; the purpose of any such appropriation shall be deemed abandoned; the purpose of any such appropriation shall be deemed abandoned if the funds or apportionment are not disbursed during the planned capitalization period. SECTION 5.14 DISBURSEMENT OF FUNDS. Disbursement shall be made pursuant to procedures prescribed by City Ordinance. Not payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made and unless the City Administrator first certifies that there is a sufficient amount of unencumbered balance in such allotment or appropriation and that sufficient funds therefrom 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 Charter shall be void and any payment sa made illegal; such action shall be cause for removal of any officer who l~nowingly authorized or made such payment, or incurred such obligation, and he/she shall also be liable to the City for an amount so paid. However, except where prohibited by Law, nothing in this Charter shall be construed to prevent the making ar authorizing of payments or making of contracts for capital improvements to be financed wholly or partly for the issuance of bonds or by grants or gifts ar to prevent the making of any contract or providing far payments beyond the end of the fiscal year, provided that such action is made or approved by resolution. SECTION 5.15 EMERGENCY APPROPRIATION IN BUDGET. The Council may include an emergency appropriation as a part of the budget but not to exceed five_~ercent of the total operating bud et. A transfer from the emergency appropriation to any other appropriation shall be made only by a majority vote afthe Council and shall be used only for the purposed designated by the Council. SECTION 5.16 i2~ri '_~~ACCOUNTS AND REPORTS. The accounts of the city shall be maintained in accordance with enerall acce ted overnmental accauntin standards and procedures. The City Administrator shall submit such reports as will be necessary in order to keep the council fully informed of the financial condition of the city. Once each year on or before the 3 0th day of Tune, the City Administratar shall submit a complete financial re ort of the cit for the recedin fiscal ear. A sumrn of the re ort shall be published in the official newspaper with a statement that copies of the complete report maybe obtained at Cit Ha11, SECTION 5.17 BORROWING. The City may borrow money for such purposes, in such manner, and to such extent as permitted by the Laws of the State of Minnesota. Whenever said laws require prior approval of the electors for any borrowing by the City, such approval shall not be required provided that the City Council adopts a resolution by a vote of at least three-fourths (3/4) of all its members determining to undertake such borrowing and unless within ten (10) days after the second publication of such resolution which must be published twice, a week apart, in the official newspaper of the City, a petition, signed by voters of the City equaling not Iess than 5 percent of the number voting in the last general election held in the City, shall be filed with the City Clerk requesting an election. CHAPTER V TAXATION AND FINANCE SECTION S.OI. CITY COUNCIL TO CONTROL FINANCES. The City Council shall have full authority over the financial affairs of the City and shall provide for the collection of all revenues and other assets, the auditing and settlement of accounts and the safekeeping and disbursement of public moneys, and in the exercise of sound discretion, shall make appropriations for the payment of all liabilities and expenses. SECTION 5.02. FISCAL YEAR. The fiscal year of the City shall be the calendar year. SECTION 5.03. SYSTEM OF TAXATION. All property taxes shall be assessed and collected in the manner provided by Law. Subject to all Laws regarding taxation, the City Council shall have the full power to provide by Ordinance for a system of local taxation for general or special purposes. SECTION 5.04. BOARD OF EQUALIZATION. The City Council shall constitute a Board of Equalization and shall meet as such in accordance with the provisions of Minnesota Statutes 274.01, as amended. The City Council may transfer the duties of Board of Review or Equalization under Minnesota Statutes Chapter 274 to the Dakota and Washington County Boards of Equalization. SECTION 5.05. PREPARATION OF THE ANNUAL BUDGET. Annually, the City Administrator shall submit to the City Council a budget for the following fiscal year. The City Administrator shall prepare the estimates for the annual budget in accordance with generally accepted accounting procedures for municipal governments. The budget shall provide a complete financial plan of all City funds and activities for the ensuing fiscal year. Except as required by Law or the City Charter, the budget shall be in such a form as the City Administrator deems appropriate, or as the City Council may require. In organizing the budget, the City Administrator shall utilize the most feasible combination of expenditure classification by fund, organization unit, program, purpose or activity and object. It shall begin with a clear summary of its contents, showing in detail the estimated income, indicating the proposed property tax levy, and all proposed expenditures including debt service for the ensuing fiscal year. The budget shall be so arranged to show comparative figures for actual and estimated income and expenditures of the current fiscal year and actual income and expenditures of the preceding fiscal year. It shall indicate in separate sections: (A) Proposed expenditures for current operations during the ensuing fiscal year, detailed by offices, departments and agencies in terms of the respective work programs, and the methods of financing such expenditures; (B} Proposed capital expenditures during the ensuing fiscal year, detailed by offices, departments and agencies when practicable, and the proposed method of financing each capital expenditure; and {C) Anticipated net increase or decrease to retained earnings for the following fiscal year of each Enterprise or Internal Service Fund of the City and the proposed method of its disposition; budget for each such Enterprise or Internal Service Fund, giving detailed income and expenditure information. The total of proposed expenditures shall not exceed the total of estimated income, which may include current fund balances. SECTION 5.06. PASSAGE OF BUDGET. Not later than the first regular scheduled City Council meeting in September, the City Council shall establish dates for public hearings for the budget. The public hearings shall be conducted to give interested citizens a reasonable opportunity to be heard. The City Administrator shall explain the various items thereof as fully may be deemed necessary by the City Council. The annual budget agreed upon shall set forth in detail the financial plan of the City for the ensuing fiscal year, and shall be approved by a majority vote of the entire City Council, by Resolution. The sums appropriated shall not exceed the funds available for each fund. The City Council shall also adopt a separate Resolution levying the taxes it considers necessary within statutory limits, for the ensuing year for each fund. The tax Resolution shall be certified to the Counties of Dakota and Washington. SECTION 5.07, CAPITAL PROGRAM. The City Administrator shall prepare and submit to the City Council a five year capital program at the same time the annual budget is submitted to the City Council. The capital program shall include the following: (a.} A clear summary of its contents. (b.) A Iist of all capital improvements which are proposed to be undertaken during the five fiscal years next ensuing, with the appropriate supporting information as to the necessity of for such improvements. (c.} Cost estimates. Method of financing and recommended time schedule for each such improvement; and (d.) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The capital program may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition. The City Council, by Resolution shall adopt the Capital Program at the same time it approves the budget for the next fiscal year. SECTION 5.08. ENFORCEMENT OF THE BUDGET. It shall be the duty of the City Administrator to enforce the provisions of the budget. The City Administrator shall approve orders upon the City Treasury for expenditures in which an appropriation has been included in the budget, and for which there is sufficient unexpended balance in the appropriated fund, after deduction of the total past expenditures and the sum of all outstanding orders against such fund. No officer or employee of the City shall place any order or make any purchase except for a purpose and to the amount authorized in the budget. Any obligation incurred by any person in the employ of the City for any purpose not authorized in the budget, or for any amount in excess of the amount authorized, may become a personal obligation upon the person incurring the expenditure. SECTION 5.09. AMENDMENTS TO THE BUDGET. The City Council may adopt the budget with amendments. In amending the budget, the City Council may add or increase programs, or amounts, and may delete or decrease any programs or amounts, except expenditures required by Law or for debt service or for estimated cash deficit, provided that no amendments to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income. After adoption of the budget, the City Council, may at any time, by Resolution approved by a majority of the entire City Council, amend the budget as follows: (a.} Supplemental appropriations, if during the fiscal year the City Administrator determines that there are available for appropriation, revenues in excess of those estimated in the budget, the City Council, by Resolution may make supplemental appropriations for the year, up to the amount of such excess. {b.) Reduction o£ appropriations. If at any time during the fiscal year it appears that the revenues available will be insufficient to meet the amount appropriated, the City Administrator shall report to the City Council indicating the estimated amount of the deficit, any remedial action taken, and recommendations as to any other steps to be taken. The City Council shall then take such further action as it deems necessary to prevent or minimize any deficit, and for that purpose it may by Resolution reduce appropriations. (c.) Transfer of appropriations. At any time during the fiscal year, the City Administrator may transfer part or all of any unencumbered appropriation amounts among programs within a department, office, or agency. The City Council may, by Resolution, transfer part or alI of any unencumbered appropriations balance from one department, office, or agency to another. (d.) Limitation. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced belorrv any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. SECTION 5.10. PUBLIC RECORDS. Copies of the budget and the capital program shall be public records and shall be made available to the public. SECTION 5.1 1. CERTIFICATION OF TAX LEVY. After adoption of the budget, the City Council shall by Resolution determine the amount to provided by an ad valorem tax on all taxable property in the City of Hastings. The Resolution shall be certified to Dalcota County and Washington County, as required by the Laws of the State of Minnesota. SECTION 5.12. FUNDS. The City shall maintain such funds as are required by State Statute, or by Resolution or Ordinance of the City Council. SECTION 5.I3, LAPSE OF APPROPRIATION. Every appropriation, except those for a capital expenditure, shall lapse at the close of the fiscal year, to the extent that it has not been expended or encumbered. An appropriation for capital expenditure shall continue to be in force until the purpose for which it was made has been accomplished or abandoned. The purpose of any such appropriation shall be deemed abandoned if the funds or apportionment are not disbursed during the planned capitalization period. SECTION 5. I4. DISBURSEMENT OF FUNDS. Disbursement shall be made pursuant to procedures prescribed by Ordinance. No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made and there is a sufficient amount of unencumbered balance in such allotment or appropriation and that sufficient funds therefrom 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 obligations in violation of the provision of this Charter shall be void and any payment so made illegal; such action shall be cause for removal of any officer who knowingly authorized or made such payment, or incurred such obligation, and he or she shalt also be liable to the City for any amount so paid. However, except where prohibited by Law, nothing in this Charter shall be construed to prevent the making or authorizing of payments or making of contracts for capital improvements to be financed wholly or partly from the issuance of bonds or by grants or gifts, or to prevent the making of any contract or providing for payments beyond the end of the fiscal year, provided that such action is made or approved by Resolution. SECTION 5. I5. ACCOUNTS AND REPORTS. The accounts of the City shall be maintained in accordance with generally accepted governmental accounting standards and procedures. The City Administrator shall submit reports necessary to keep the City Council fully informed of the financial condition of the City. Once each year by the 30th day of June, the City Administrator shall submit a complete financial report to the City Council, for the preceding year. A summary of the report shall be published in the official newspaper, with a statement that copies of the complete report maybe obtained at City Hall. SECTION 5. I6. BORROWING. The City may borrow money for such purposes, in such manner, and to such extent as permitted by the Laws of the State of Minnesota. Whenever said laws require prior approval of the electors for any borrowing by the City, such approval shall not be required provided the City Council adopts a Resolution by a vote of at least three-fourths (3/4) of all its members determining to undertake such borrowing and unless within ten (14) days after the second publication of such Resolution, which must be published twice, a week apart, in the official newspaper of the City, a petition, signed by voters of the City equaling not less than 5 percent of the number voting in the last general election held in the City, shall be filed with the City Clerk requesting an election. . L CHAPTER II -, NOMINATIONS AND ELECTIONS SECTION 2.01. PROCEDURE AT ELECTIONS. Except as otherwise provided in this Charter or an ordinance adopted pursuant hereto, the general Laws of the State of Minnesota pertaining to elections shall apply to Municipal elections. Subject to the provisions of this charter and applicable State laws, the Council may by ordinance and resolution further regulate the conduct of municipal elections. SECTION 2.02. REGULAR MUNICIPAL ELECTIONS. A regular municipal election will be held on the first Tuesday after the first Monday in November of each even numbered year. The City Clerk shall give at least two weeks notice of the time and place of holding said election and of the officers to be elected at said election by publishing said notice at least once in the newspaper of general circulation in the City. However, failure to give such notice shall not invalidate said election. SECTION 2.03. SPECIAL ELECTIONS. The Council may by resolution order a special election and provide all means for holding it. The City Clerk shall give at least two weeks notice of the time and place of holding said election and of the officers to be elected at said election by publishing said notice at least once in a newspaper of general circulation in the City. However, failure to give such notice shall not invalidate said election. The procedure at such special election shall conform as nearly as possible to that prescribed for regular municipal elections. SECTION 2.04. PRIMARY ELECTIONS. On the first Tuesday after the second Monday in September preceding any general City election or on the third Tuesday preceding any special election held for the purpose of election of City officials, an election of nominees hereinafter designated as the "primary election" shall be held in each voting precinct for the selection of candidates for all elective offices within the City of Hastings to be filled at such ensuing election. A primary election shall only be called in the event that three (3) or mare qualified persons have filed for the same wand council seat or the Mayor's position. 'When both at-large council seats are to be filled, a primary election shall be called only in the event five or more qualified persons have filed for the at-large council seats. In the event only one at-large council seat is to be filled, a primary shall be called only in the event three or mare qualified persons have filed for the at-large council seat. The City Clerk shall cause to be published in a newspaper of general circulation, at least once, a notice of the primary election which shall state the time and place of holding such election and of the officers to be elected at said election. At said primary election there shall be nominated by the qualified electors of the City, two candidates for each office to be filled within the City at the next ensuing general or special election. -l- SECTION 2.05. PETITIONS FOR ELECTION. Not more than 10, nor less than S weeks before a scheduled primary election day, as outlined in Section 2.04, an individual who is eligible and desires to become a candidate for an office to be voted for at the election, shall file an Affidavit of Candidacy with the City Clerk with the City of Hastings. The Affidavit shall be in substantially the same form that shall be prepared and provided by the City and City Clerk of the City of I Iastings, shall state the name and address and residence of such person, the office for which he or she desires to be a candidate, that he or she is a qualified voter in the City of Hastings, and a statement that he or she desires to seek said office. If the office sought is that of Mayor, or at large Councilmember, the petitioners may reside anywhere in the City of Hastings. zf the office is that of a ward Councilmember, the person nominated shall reside in the ward from which he ar she seeks election. It shall be the duty of the City Clerk thereafter to provide a sufficient number of primary ballots for each voting precinct, such ballots to have printed thereon the names of all persons by or on behalf of whom petitions have been filed as hereinabove provided, together with the designation of the office for which the nomination is sought. When more than two names are presented for nomination for the said office, such names shall be placed on the primary ballot according to state law. During the week preceding such primary election the Clerk shall cause a sample ballot to be published in all newspapers of general circulation in the City, provided, however, failure to publish said sample ballot shall not invalidate the election. The two persons having the highest number ofvotes for any elective office shall be notified of the fact by the Clerk and shall be the candidates for such office at the ensuing general election unless within two days after notification they, either or any of them, file with the Clerk a refusal to be a candidate in which event the person ar persons having the next highest vote shall be notified by the Clerk and this process shall be continued until two candidates are secured or the list of all those voted for in the primary election shall be exhausted, and the person or persons so finally determined by this process to be the candidates shall be entitled to have their names placed upon official ballot used in the ensuing election. In case of a tie vote, the nomination shall be determined by the casting of lots in the presence of the Clerk at such time and place and in such manner as the Clerk may direct. -2- SECTION 2.06. CANiTASS OF ELECTIONS. The Council shall meet and canvass the election returns of any primary, special, or general election within two days after the holding thereof and shall make full declaration of the results as soon as possible and file a statement thereof with the City Clerk. This statement shall include: (A) A total number of good ballots cast far each candidate with an indication of those who were either nominated or elected, as the case may be; (B) A true copy of the ballots used in the election; (C) The names of the judges and clerks of said election; {D) Such other information as may be pertinent. The City Clerk shall forthwith inform all persons elected of their election. SECTION 2.07. PRESENT ELECTIVE OFFICIALS TO CONTINUE TERM. All members of the City Council of the City of Hastings as of the date hereof shall hold their respective offices until their terms of office expire by operation of law. Nothing in this Chapter shaIl be construed to limit their term of office, except that the terms of office of any elected ~ City official, the number of wards and ward representation may be changed or altered upon the recommendation of a duly appointed Charter Commission and amendment to this Charter as provided by law. -3-