City of Sikeston, MO Article VI Financial Procedures

Section 6.1 Fiscal Year.

The fiscal year of the city shall begin on the first day of July and end on the last day of June unless otherwise provided by ordinance. The fiscal year shall constitute the budget and accounting year.

Section 6.2 Submission of Budget and Budget Message.

On or before the sixtieth (60th) day preceding the beginning of the fiscal year, the manager shall submit to the council a proposed budget for the ensuing fiscal year and an accompanying message.

Section 6.3 Budget.

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 manager deems desirable or the council may require.

Section 6.4 Capital Program.

a. Submission to Council. The manager shall prepare and submit to the council a five (5) year capital program at least six (6) months prior to the start of the new fiscal year.

b. Contents. The capital program shall include:

1. A clear general summary of its contents;

2. A list of all capital improvements that are proposed to be undertaken during the five (5) fiscal years next ensuing, with appropriate supporting information as to the necessity for such improvements;

3. Cost estimates, method of financing, and recommended time schedules for each such improvement; and

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

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

Section 6.5 Council Action on Budget.

a. Notice and Hearing. The council shall publish in one (1) or more newspapers of general circulation in the city a general summary of the budget and a notice stating:

1. The times and places where copies of the message and complete budget are available for inspection by the public to include both physical and electronic access, and

2. The time and place, not less than two (2) weeks after such publication, for at least one (1) public hearing on the budget which shall be held at least thirty (30) days prior to adoption of the budget.

b. Amendment Before Adoption. After the public hearing, the 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.

c. Adoption. The council by ordinance shall adopt the budget on or before the fifteenth (15th) day of the last month of the fiscal year currently ending. If it fails to adopt the budget by this date, 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 council adopts a budget for the ensuing fiscal year. Adoption of the budget shall constitute appropriations of the amounts specified therein as expenditures from the funds indicated.

Section 6.6 Council Action on Capital Program.

a. Notice and Hearing. The council shall publish in one (1) or more newspapers of general circulation in the city a general summary of the capital program and a notice stating:

1. The times and places where complete copies of the capital program are available for inspection by the public to include both physical and electronic access, and

2. The time and place, not less than two (2) weeks after such publication, for at least one (1) public hearing on the capital program which shall be held at least thirty (30) days prior to adoption of the capital program.

b. Adoption. The council by resolution shall adopt the capital program with or without amendment after the public hearing and on or before the fifteenth (15th) day of the last month of the current fiscal year.

Section 6.7 Public Records.

Copies of the budget and the capital program of all city entities as adopted shall be public records and shall be made available to the public at suitable places in the city to include city hall, the library, and via electronic access such as a city managed website.

Section 6.8 Amendment After Adoption.

a. Supplemental Appropriations. If during the fiscal year the manager certifies that there are available for appropriation revenues in excess of those estimated in the budget, the council by ordinance 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 manager that the revenues available will be insufficient to meet the amount appropriated, he shall report to the council without delay, indicating the estimated amount of the deficit, any remedial action taken by him, and his recommendations as to any other steps to be taken. The council then shall take such further action as it deems necessary to prevent or minimize any deficit and for that purpose it may by ordinance reduce one (1) or more appropriations.

c. Transfer of Appropriations. At any time during the fiscal year the manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office, or agency and, upon written request by the manager, the council may by ordinance transfer part or all of any unencumbered appropriation balance from one department, office, or agency to another.

d. Emergency Appropriations; Effective Date. The supplemental appropriations and reduction or transfer of appropriations authorized by this section may be made effective immediately upon adoption and may be made by emergency ordinance in accordance with the provisions of Section 3.12(f).

Section 6.9 Administration of Budget.

a. Work Programs and Allotments. At such time as the manager shall specify, each department, office, or agency shall submit work programs for the ensuing fiscal year showing the requested allotments of its appropriation by periods within the year. The manager shall review and authorize such allotments with or without revision as early as possible in the fiscal year. He may revise such allotments during the year if he deems it desirable and shall revise them to accord with any supplemental, reduced, or transferred appropriations made pursuant to Section 6.8.

b. Budgeting for Boards and Commissions. The budgets for advisory boards and commissions operating on behalf of the city of Sikeston shall be submitted by the city manager and approved or modified by the city council in the same manner as any other part of the budget of the City, except that:

1. Because the budget procedure for these boards and commissions is more cumbersome than that for other units within the city government, the city manager may require earlier submission of budget requests from these departments.

2. Before the budget request is submitted to the city manager, it shall be reviewed and approved or modified by the individual board or commission having advisory authority.

3. If the budget request for the board or commission is not submitted in a timely basis and thus it is not adopted with the rest of the city budget, the particular department shall not authorize any expenditure of any money until after the budget has been approved by the city council, Section 6.5(c) notwithstanding.

c. Payments and Obligations Prohibited. No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made and unless the manager or his designee first certifies that there is a sufficient 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 payment so made illegal; such action may be cause for removal of any officer who knowingly authorized or made such payment or incurred such obligation, and he also may 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 by the issuance of bonds or to prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, provided that such action is made or approved by ordinance.

Section 6.10 Tax Rates and Tax Rolls.

After the budget is finally adopted, the council shall by ordinance set the tax rates and levy on the various classes of property, and the levy so established shall be certified by the city clerk to the appropriate official, who shall compute the taxes and extend them upon the tax rolls.

a. Public Hearing Before Ad Valorem Tax Rates Set. After the budget is finally adopted, the council shall by ordinance set the ad valorem tax rate. Before adopting said ordinance, the city council shall hold a public hearing on the proposed tax rates, at which citizens shall have the opportunity to speak and be heard. Notice of this hearing (stating the hour, date, and place of the hearing) shall be published in at least one (1) newspaper of general circulation in the city at least seven (7) days prior to the date of the hearing. Upon adoption of the tax rate ordinance, the city clerk shall certify the rate to the appropriate official, who shall compute the taxes and extend them upon the tax rolls.

b. Election for Increased Taxes. In compliance with the Missouri Hancock Amendment to the state constitution, the city is hereby prohibited from levying any tax not currently authorized, or from increasing the current levy of an existing tax, above the levy authorized by law without the approval of a majority of the qualified voters voting hereon.

Section 6.11 Custody of City Money.

a. Definitions and Scope. The City treasurer shall be responsible for all city funds except those funds designated by ordinance to be the responsibility of an autonomous board. Each autonomous board shall appoint a treasurer that will be the responsible city official for those funds. The city treasurer and the treasurer of an autonomous board, for the purposes of this section, will be referred to collectively as the "treasurer". The city and its autonomous boards, for the purpose of this section, will be referred to collectively as the "city".

b. Daily deposit of receipts. All moneys paid to the city shall be deposited with a city depository on a daily basis. Until the funds are deposited, the individual who received the money is personally responsible for its safety. Under no circumstances shall any money be forwarded to the treasurer.

c. Treasurer to Supervise all Bank Accounts. All city bank accounts shall be held in the name of the "City of Sikeston" and shall be supervised by the treasurer. All deposit receipts, all bank statements, and all other records regarding these accounts shall be sent by the banking institution directly to the treasurer. The treasurer shall reconcile all bank statements with the city's accounting records on at least a monthly basis.

d. Disbursements by Check only. Disbursements from the city funds shall be by check or draft only, except as provided herein. Electronic disbursement by check card or other device will be acceptable, provided the device leaves an audit trail sufficient to satisfy generally accepted governmental accounting standards. This subsection does not forbid the city from using a check or draft to obtain cash to keep on hand to give change to persons who pay the city with cash, or for use in one (1) or more "petty cash funds" for minor purchases of less than one hundred dollars ($100.00), provided that these cash transactions are recorded in sufficient detail to leave an audit trail sufficient to satisfy generally accepted governmental accounting standards. Under no circumstances may the treasurer be a signatory to any disbursement of city funds.

e. Collateral pledge. All city depositories shall maintain collateral pledges for the benefit of the city, under the supervision of the treasurer, equal in amount to at least one hundred one percent (101%) of the amount of city funds in excess of available FDIC insurance held by that depository. For collateral to be acceptable, it must be suitable for city ownership as an investment vehicle.

f. Investments. It shall be the responsibility of the treasurer to estimate how quickly funds will be needed for municipal purposes, and to invest those funds in the interim. The treasurer shall prepare a written investment policy within one hundred eighty (180) days following the adoption of this Charter, which may be amended from time to time. A copy of this policy shall be provided to the city's auditor and to the city council upon adoption, amendment, or once every five (5) years. The city may not invest in any instrument or security that is not approved for investment by the Missouri State Treasurer.

g. Selection of depository. Within one hundred eighty (180) days following the adoption of this Charter, and at least once every five (5) years thereafter, the treasurer shall solicit proposals for a depository agreement with suitable financial institutions. Thereafter, by ordinance, the city council shall select and designate one (1) or more financial institutions as city depository. At least one (1) of the depositories must have an office physically located within the corporate limits of the City of Sikeston.