City of College Park, MD Article X Finance and Taxation

§ C10-1 Annual budget; fiscal year.

The City shall operate on an annual budget, and the fiscal year of the City shall begin on the first day of July and shall end on the last day of June of each year.

§ C10-2 Preparation of budget.

A. Submission of the budget. On or before March 31 of each year, the City Manager shall submit to the Mayor and Council a proposed budget for the ensuing fiscal year and an accompanying message.

B. Budget message. The City Manager's message shall explain the proposed budget both in fiscal terms and in terms of the work programs. It shall outline the proposed financial policies of the City for the ensuing fiscal year, describe the important features of the proposed 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 other such material as the City Manager deems desirable.

C. Budget. The proposed budget shall provide a complete financial plan of all City operating 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 Manager deems desirable or as the Mayor and Council may require. The proposed budget shall begin with a clear general summary of its contents; shall show in detail all estimated revenues, indicating the proposed property tax levy, 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 current fiscal year and actual revenue and expenditures of the preceding three fiscal years. It shall indicate in separate sections:

(1) The proposed goals and objectives and expenditures for current operations during the ensuing fiscal year, detailed for each operating fund by organization unit, and program, purpose or activity, and the method of financing such expenditures.

(2) Proposed capital expenditures during the ensuing fiscal year, detailed for each operating fund by project and the proposed method of financing each such capital expenditure.

(3) The anticipated income and expense and profit and loss for the ensuing year for each enterprise fund operated by the City.

(4) The proposed capital improvement program.

D. Balanced budget. For any operating fund, the total of proposed expenditures shall not exceed the total of estimated revenues plus a designation (if any) of the unassigned fund balance.

E. General fund; fund balance retention. An amount equal to 25% of the ensuing year's expenditures in the general fund shall be a retention goal in the unassigned fund balance of the general fund.

§ C10-3 Mayor and Council action on budget.

[Amended 4-24-2018 by Res. No. 18-CR-02[1]]

A. Notice and hearing.

(1) The City shall by public notice provide the general summary of the proposed budget, the proposed tax rate and the following:

(a) The times and places where copies of the message and budget are available for inspection by the public at least two weeks prior to the date of the hearing; and

(b) The time and place for a public hearing on the proposed budget and proposed tax rate.

(2) The entire proposed budget shall be available on the City website at least two weeks prior to the date of the hearing.

B. Constant yield tax rate. In setting the real property tax rate, the Mayor and Council shall conform to the requirements of § 6-308, Constant yield tax rate, of the Tax-Property Article of the Annotated Code of Maryland, as amended from time to time.

C. Amendment before adoption. After the public hearing, the Council may adopt the proposed budget, with or without amendment, without the need of further advertising or public hearings. In amending the proposed budget, it may add or increase programs or amounts and may deplete or decrease any programs or amounts, except expenditures required by law or for required debt service or for an estimated deficit, provided that no amendment to the proposed budget shall increase the authorized expenditures to an amount greater than the total estimated revenues plus a designation (if any) of the unassigned fund balance.

D. Adoption. The Council shall adopt the budget in the form of an ordinance on or before May 31 of the fiscal year currently ending. An affirmative vote of a majority of the total elected membership of the Council (five votes) shall be necessary for adoption. If it fails to adopt a budget by this date, the budget proposed by the City Manager shall go into effect.

E. Notification to county of tax rates. Upon adoption, the Finance Director is authorized to notify Prince George's County of the City's tax rate. In the event that the City fails to adopt a budget by May 31, the Finance Director is authorized to notify Prince George's County that the tax rate for the ensuing fiscal year shall be the same rate as proposed by the City Manager.

[1] Editor's Note: This resolution also changed the title of this § C10-3 from "City Council action on budget" to its current title.

§ C10-4 Form of budget appropriation and revenue ordinance.

[Amended 4-24-2018 by Res. No. 18-CR-02]

To implement the adopted budget, the Council shall adopt, on or before May 31 of the fiscal year currently ending, after the public hearing, with or without amendment, and without the need of further advertising or public hearings, an ordinance in the following form:

A. An appropriation section making appropriations by department or major organizational unit and authorizing a single appropriation for each program or activity.

B. A tax levy section authorizing the property tax levy or levies and setting the tax rate or rates.

C. Any other section required to authorize new revenues or to amend the rates or other features of existing taxes or other revenue sources.

§ C10-5 Amendments to budget after adoption.

[Amended 4-24-2018 by Res. No. 18-CR-02]

Except as provided in this section, the City may not expend funds not appropriated at the time of the annual levy for that purpose.

A. Supplemental appropriations. If the City Manager certifies in writing that there are available for appropriation revenues in excess of those estimated in the budget for the current or prior fiscal year, the Council, by budget ordinance procedures, may make supplemental appropriations up to the amount of such excess for the fiscal year so certified.

B. Emergency appropriations. To meet a public emergency affecting life, health, property or the public peace, the Council may make emergency appropriations. Such appropriations may be made by emergency ordinance in accordance with the provisions of § C8-2B.

C. Insufficient appropriations. If at any time during the fiscal year it appears probable to the City Manager that the revenues, fund balances or retained earnings available will be insufficient to finance the expenditures for which appropriations have been authorized, the City Manager shall report to the Mayor and Council without delay, indicating the estimated amount of the deficit, any remedial action taken by the City Manager and recommendations as to any other steps to be taken. The Mayor and Council shall then take such further action as it deems necessary to prevent or reduce any deficit and for that purpose it may by budget ordinance procedures reduce one or more appropriations.

D. Transfer of appropriations.

(1) The Council may expend funds for a purpose different from the purpose for which they were appropriated. At any time the Council may by ordinance transfer part or all of the unencumbered appropriation from one department, fund or major organizational unit to the appropriation for other departments, funds, or major organizational units for the current or prior fiscal year.

(2) The City Manager may transfer part or all of any unencumbered appropriation balance to another appropriated program or expenditure within a department or organizational unit.

E. Limitation; effective date. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. The supplemental and emergency appropriations and reduction or transfer of appropriations authorized by this section may be made effective immediately upon adoption.

F. Vote required. A 2/3 vote of all the individuals elected to the legislative body (six) shall be required for the authorization of supplemental and emergency appropriations, reduction of appropriations, or transfer of appropriations from one department, fund or major organizational unit to another.

§ C10-6 Lapse of appropriations.

Every appropriation, except an appropriation for a capital projects fund expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or lawfully encumbered. An appropriation for a capital projects fund expenditure shall continue in force until expended, revised or repealed.

§ C10-7 Overspending of appropriations prohibited.

A. No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with the appropriations duly made.

B. Except where prohibited by law, however, nothing in this Charter shall be construed to:

(1) Prevent the making or authorizing of payment;

(2) Prevent the making of contracts for projects in the capital improvement program; or

(3) Prevent the making of any contract or lease providing for payments beyond the end of the fiscal year.

§ C10-8 Submission of capital improvement program; contents.

A. Submission to Mayor and Council. The City Manager shall prepare and submit to the Mayor and Council a proposed five-year capital improvement program no later than the final date for submission of the budget.

[Amended 4-24-2018 by Res. No. 18-CR-02]

B. Contents. The proposed capital improvement program shall include:

(1) A clear summary of its contents.

(2) A list of all capital improvements and other capital expenditures which are proposed to be undertaken during the five fiscal years next ensuing, with appropriate supporting information as to the necessity for each.

(3) Cost estimates and recommended time schedules for each improvement or other capital expenditure.

(4) Method of financing, upon which each capital expenditure is to be reliant.

(5) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired.

C. The above shall be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition.

§ C10-9 Property subject to taxation, rates, levy and collections; admissions and amusement tax.

A. All real property within the corporate limits of the City, except for property that is exempt under the law, such as University of Maryland property as set forth in § C12-1 of the City Charter, shall be subject to taxation for municipal purposes and shall be levied upon assessments made by Prince George's County, Maryland, or by the State Department of Assessments and Taxation of the State of Maryland.

B. Personal property within the corporate limits of the City, except for property that is exempt under the law, such as University of Maryland property as set forth in § C12-1 of the City Charter, shall be subject to taxation for municipal purposes and shall be levied upon assessments made by the State Department of Assessments and Taxation of the State of Maryland.

C. All taxes levied under this section shall be collected in the manner provided by law, and the City may authorize Prince George's County to act as its agent for the purposes of collection.

D. All taxes levied under this section shall be a lien on any and all property of the person, corporation or entity against whom they are levied, as set forth in § 14-804 et seq. of the Tax-Property Article of the Annotated Code of Maryland, as may be amended from time to time, and enforceable under the provisions of that article.

E. Pursuant to the provisions of § 4-101 et seq. of the Tax-General Article of the Annotated Code of Maryland, as may be amended from time to time, the City may impose, by ordinance or resolution, an admissions and amusement tax.

F. The City may levy any other tax as allowed by law.

§ C10-10 Financial statement and independent audit.

The Mayor and Council shall provide for an independent annual audit of all City accounts, as required by § 16-305 of the Local Government Article, Annotated Code of Maryland, as amended from time to time, and may provide for more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the City government or any of its officers. The accountant or firm chosen as the auditor may not serve for more than four consecutive fiscal years and may not be re-engaged/rehired unless at least two fiscal years will have elapsed from the termination of that person or firm's prior engagement with the City. The Mayor and Council shall designate such accountant or firm pursuant to the City's procurement procedures. If the state makes such an audit, the Council may accept it as satisfying the requirements of this section.