The fiscal and budget year of the city shall begin on the first day of July.
On or before the 15th day of February in each year, each city officer and department head shall submit to the city manager an itemized estimate of the expenditures for the next fiscal year, for the department or activities under his control. The city manager shall prepare a complete itemized budget proposal for the next fiscal year of the city and shall submit it to the council on or before the first day of April, preceding the fiscal year of the city.
The budget proposal shall present a complete financial plan for the ensuing fiscal year. It shall include at least the following information:
(a) 
Detailed estimates of all proposed expenditures for each department and office of the city, showing the expenditures for corresponding items for the current and last preceding fiscal years, with reasons for increases and decreases recommended, as compared with appropriations for the current year;
(b) 
Statements of the bonded and other indebtedness of the city showing the debt redemption and interest requirements, the debt authorized and unissued, and the condition of sinking funds, if any;
(c) 
Detailed estimates of all anticipated income of the city from sources other than taxes and borrowing, with a comparative statement of the amounts received by the city from each of the same or similar sources for the last preceding and current fiscal years;
(d) 
A statement of the estimated balance or deficit, as the case may be, for the end of the current fiscal year;
(e) 
An estimate of the amount of money to be raised from current and delinquent taxes, and the amount to be raised from bond issues which, together with income from other sources, will be necessary to meet the proposed expenditures;
(f) 
Such other supporting schedules as the council may deem necessary.
A public hearing on the budget shall be held before its final adoption, at such time and place as the council shall direct, and notice of such public hearing shall be published at least one week in advance thereof by the clerk. A copy of the proposed budget shall be on file and available to the public for inspection during office hours at the office of the clerk for a period of not less than one week prior to such public hearing.
Not later than the first meeting of the council in the month of May, the council shall, by resolution, adopt the budget for the next fiscal year and shall in such resolution make an appropriation of the money needed for municipal purposes during the ensuing fiscal year of the city and provide for a levy of the amount necessary to be raised by taxes upon real and personal property for municipal purposes, which levy shall not exceed 1 3/4% of the assessed valuation of all real and personal property in the city; provided, that such levy may be increased by a majority of the electors of the city voting at the election at which the proposition to do so shall be so submitted, but such increase shall be limited to an amount which will not cause the total levy under authority of this section to exceed 2% of the assessed value of the real and personal property in the city.
The council may establish and maintain a fund or funds for the purpose of appropriating, providing, setting aside, and accumulating moneys to be used for acquiring, extending, altering, or repairing public improvements which the city is authorized by law to acquire, alter, or enlarge. Moneys so appropriated, set aside, or accumulated shall not be transferred, encumbered, or otherwise disposed of, except for the purpose for which they were appropriated, set aside, or accumulated, unless approved by a vote of 3/5 of the electors of the city voting thereon, at a regular or special municipal election.
After the budget has been adopted, no money shall be drawn from the treasury of the city nor shall any obligation for the expenditures of money be incurred, except pursuant to the budget appropriation. The council may, however, transfer any unencumbered operating appropriation balance, or any portion thereof, from one city operating fund to another, upon the written recommendation of the city manager by a vote of not less than six members of the council; provided, that any such appropriation balance under the control of any board of the city may be transferred only with the consent of such board. The balance in any budget appropriation, except such as may be appropriated for the payment of any debt of the city, which has not been encumbered at the end of each fiscal year shall revert to the general fund and shall be subject to the allocations made in the budget of the next fiscal year.
At the beginning of each quarterly period during the fiscal year, and more often if required by the council, the city manager shall submit to the council data showing the relation between the estimated and actual income and expenses to date. If it shall appear that the income of the city is less than anticipated, the council may reduce appropriations, except amounts required for debt and interest charges, to such a degree as may be necessary to keep expenditures within the income of the city.
The council shall designate the depository or depositories for the city funds, and shall provide for the regular deposit of all city moneys. The council shall provide for such security for city deposits as is authorized or permitted by the general laws of the state, except that personal surety bonds shall not be deemed proper security.
Unless otherwise provided by this Charter, all funds drawn from the treasury shall be drawn pursuant to the authority and appropriation of the council and by checks signed by either of two officers of the city, to be designated by resolution of the council, and countersigned by the city auditor. Each such check shall specify the fund or funds from which it is payable and shall be paid from no other fund or funds.
An independent audit shall be made of all accounts of the city government at least annually or more frequently if deemed necessary by the council. Such audit shall be made by certified public accountants experienced in municipal accounting and shall be completed within 90 days following the close of the fiscal year. The results of such audit shall be made public in such manner as the council may determine.
Subject to the applicable provisions of state law and this Charter, the council, by proper ordinance or resolution, may authorize the borrowing of money on the credit of the city and the issuing of bonds therefor, for any purpose within the scope of its powers. The net bonded indebtedness incurred for all public purposes shall not at any time exceed 10% of the assessed value of all the real and personal property in the city; provided, that in case of fire, flood, or other calamity, the council may borrow for the relief of the inhabitants of the city and for the preservation of municipal property, a sum not to exceed 3/8% of the assessed value of all the real and personal property in the city, due in not more than five years, even if such loan would cause the indebtedness of the city to exceed the limit fixed in this Charter. In computing the net bonded indebtedness for the purpose hereof, the following shall not be included:
(1) 
Bonds issued in anticipation of the payment of special assessments, even though they are also a general obligation of the city;
(2) 
Mortgage bonds, which are secured only by a mortgage on the property or franchise of a public utility;
(3) 
The principal and interest of revenue bonds which are payable solely from net revenues derived from the operation of the public improvement purchased, acquired, constructed, improved, enlarged, extended, or repaired, or any combination thereof, by the proceeds of such bonds;
(4) 
Bonds issued to refund moneys advanced or paid on special assessments for water main extensions.
The resources of the sinking fund pledged for the retirement of any outstanding bonds shall also be deducted from the amount of the bonded indebtedness. No bond of the city, regardless of type or purpose, shall bear interest at a rate to exceed 6% per annum.
The council may borrow money and issue the bonds of the city therefor in anticipation of the payment of special assessments, which bonds shall be either solely an obligation of the special assessment district, or both an obligation of the special assessment district and a general obligation of the city. All collections on special assessment rolls shall be set apart in a special fund and shall be used for the purpose for which they were levied and for the payment of the principal and interest on any bonds issued in anticipation of the payment of such special assessments. If there be any deficiency in the special assessment fund to meet the payment of any such principal and interest, moneys shall be advanced from the general funds of the city to meet such deficiency and shall be replaced in such general fund when the special assessment fund shall be sufficient therefor.
Subject to the applicable provisions of state law, the city may borrow money and issue its bonds therefor, the principal and interest of which bonds shall be payable solely from the net revenues of the public improvement purchased, acquired, constructed, improved, enlarged, extended, or repaired, for the purpose of defraying the whole or a part of the cost of purchasing, acquiring, constructing, improving, enlarging, extending, or repairing any public improvement of the city which the city is permitted by law to acquire, own, or operate.
The city may issue mortgage bonds beyond the general limit of indebtedness prescribed by law for the purpose of acquiring, extending, or improving any public utility, for supplying water, light, heat, or power, owned or operated by it, or which it is authorized to acquire; provided, that such mortgage bonds issued beyond the general limit of bonded indebtedness prescribed by law shall not impose any liability upon the city, but shall be secured only upon the property and revenues of such public utility, including a franchise, stating the terms upon which, in case of foreclosure, the purchaser may operate the same, which franchise shall in no case extend for a longer period than 20 years from the date of the sale of such utility and franchise on foreclosure. Such mortgage bonds shall be sold to yield not to exceed 6% per annum. In the event that any such mortgage bonds are sold by the city, there shall be created a sinking fund by setting aside such percentage of the gross or net earnings of the public utility as may be deemed sufficient for the payment of the mortgage at maturity.
The council may also borrow money on the faith and credit of the city, to provide for the refunding from time to time of moneys advanced or paid on special assessments imposed for water main extensions as buildings shall be connected with such water main extensions, and for the issuance of bonds therefor due in not more than 30 years in the amount not to exceed $15,000 and at the rate of interest, which shall not exceed 6%.
No unissued bonds of the city shall be issued or sold to secure funds for any purpose other than that for which they were specifically authorized, and, if any such bonds are not issued or sold within three years after authorization, such authorization shall, as to such bonds, be null and void.