City of Fair Grove, MO Article II Budget

Section 130.020 Budget Required — Contents — Expenditures Not To Exceed Revenues.

[Ord. No. 170, 1-8-2018]

A. Prior to the commencement of each fiscal year, a budget for the City shall be prepared and the same will be presented to and approved by the Board of Aldermen.

B. The annual budget shall present a complete financial plan for the ensuing fiscal year and shall include at least the following information:

1. A budget message describing the important features of the budget and major changes from the preceding year;

2. Estimated revenues to be received from all sources for the budget year, with a comparative statement of actual or estimated revenues for the two (2) years next preceding, itemized by year, fund and source;

3. Proposed expenditures for each department, office, commission, and other classification for the budget year, together with a comparative statement of actual or estimated expenditures for the two (2) years next preceding, itemized by year, fund, activity and object;

4. The amount required for the payment of interest, amortization and redemption charges on the debt of the City; and

5. A general budget summary.

C. The Budget Officer will calculate and establish the minimum fund balance for the City of Fair Grove's Revenue Funds prior to the beginning of the budget process for a new fiscal year, per the requirements stated below:

1. General Fund. The minimum fund balance for the General Fund will be three (3) months equivalent (twenty-five percent (25%)) of the annual total General Fund Revenue, less revenue from project specific sources such as grants, bond and certificates of participation proceeds and loans, projected for the current fiscal year.

2. Sewer Fund. The minimum fund balance for the Sewer Fund will be three (3) months equivalent (twenty-five percent (25%)) of the annual total Sewer Fund Revenue, less revenue from project specific sources such as grants, bond and certificates of participation proceeds and loans, projected for the current fiscal year.

D. In no event shall the total proposed expenditures from any fund exceed the estimated revenues to be received plus any unencumbered balance or less any deficit estimated for the beginning of the budget year; provided, that nothing herein shall be construed as requiring the City to use any cash balance as current revenue or to change from a cash basis of financing its expenditures.

Section 130.025 Adopt Budget.

[CC 1999 §8.0105; Ord. No. 99-11-01 §2, 11-16-1999]

The Board of Aldermen shall by ordinance adopt the City budget.

Section 130.026 Debt and Expenditures Limited.

[CC 1999 §§8.0106, 8.0107; Ord. No. 99-11-01 §2, 11-16-1999]

A. The City shall not incur any annual debts which aggregate an amount greater than the anticipated revenues for the budget year, without the approval of the voters of the City, as required by law.

B. Expenditure estimates in the budget shall not be larger in amount than the total anticipated revenue for the budget year, plus any surplus from the previous year or less any deficit from the previous year.

Section 130.027 Budget Process.

[CC 1999 §8.0108; Ord. No. 99-11-01 §2, 11-16-1999; Ord. No. 03-05-03 §8.0108(f), 5-13-2003]

A. The City Clerk shall be the Budget Officer and shall prepare the City budget in accordance with the following process:

1. The City Clerk will collect the data necessary and make preliminary revenue estimates for the coming fiscal year. He/she will estimate expenditures for the present year and note expenditures and revenues for the previous two (2) fiscal years.

2. The City Clerk will request from each City Officer a statement of expenditures requested for the coming fiscal year.

3. The City Clerk will review the departmental requests and make his/her final revenue estimates for the coming fiscal year and will confer with department heads to discuss these requests.

4. The City Clerk will begin assembling the City budget.

5. The City Clerk will confer with the Mayor and any such other officers as the Mayor may designate, for preparation of the City budget for the next fiscal year to be submitted to the Board of Aldermen.

Section 130.030 Board Of Aldermen May Revise Budget, Limits — Approval.

A. The Board of Aldermen may revise, alter, increase or decrease the items contained in the proposed budget, subject to such limitations as may be provided by law, or charter, or in Subsection (B) of this Section, provided that in no event shall the total authorized expenditures from any fund exceed the estimated revenues to be received plus any unencumbered balance or less any deficit estimated for the beginning of the budget year. Except as otherwise provided by law, the Board of Aldermen shall, before the beginning of the fiscal year, approve the budget and approve or adopt such orders, motions, resolutions or ordinances as may be required to authorize the budgeted expenditures and produce the revenues estimated in the budget.

B. Any taxpayer of the City may initiate an action for injunctive relief, which the court shall grant, if the Board of Aldermen decreases the budget for its Law Enforcement Agency, except for those created under Section 162.215, RSMo., by an amount exceeding more than twelve percent (12%) relative to the proposed budgets of other departments of the City over a five-year aggregate amount.

Section 130.040 Increase of Expenditure Over Budgeted Amount To Be Made Only On Formal Resolution.

After the City has approved the budget for any year and has approved or adopted the orders, motions, resolutions or ordinances required to authorize the expenditures proposed in the budget, the City shall not increase the total amount authorized for expenditure from any fund, unless the Board of Aldermen adopts a resolution setting forth the facts and reasons making the increase necessary and approves or adopts an order, motion, resolution or ordinance to authorize the expenditures.