The City elects not to give the bond on the Finance Director/Treasurer
provided for by § 70.67(1), Wis. Stats.
Pursuant to § 70.67(2), Wis. Stats., the City shall
be obligated to pay, in case the Finance Director/Treasurer shall
fail to do so, all state and county taxes required by law to be paid
by the Finance Director/Treasurer to the County Treasurer.
The City Budget Document is organized by fund, function, activity,
and object. Management may not overspend funds without a budget amendment
approved by the City Council at the function level for the general
fund and at the individual fund level for Special Revenue, Debt Service,
and Capital Projects Funds. The following are the function categories
in the general fund: General Government, Public Safety, Public Works,
Health and Human Services, Culture and Recreation, and Conservation
and Development. The subcategories within each function represent
the activity level of expenditure. The detailed accounts within each
activity represent the object level of expenditure.
A. Upon recommendation of the Finance Committee, the Council may, at
any time by a two-thirds-vote of the entire membership, transfer any
portion of an unencumbered balance of an appropriation to any other
function. Notice of such transfer shall be published as a Class 1
notice, under Wis. Stats., Ch. 985, within 15 days thereafter in the
official City newspaper pursuant to Wis. Stats., § 65.90.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
B. A department head may submit for approval by the City Administrator,
a transfer of appropriations between activities under the department
head's control. The City Administrator may approve such transfers,
provided the amount does not exceed $3,000 and it does not reestablish
any position, program, or capital item which was specifically deleted
from the budget by the Council. Transfer requests in excess of $3,000
or requests to establish a new program or capital item must be presented
to the Finance Committee for recommendation to the City Council.
[Amended by Ord. No. 02-18]
No money shall be drawn from the Treasury of the City, nor shall any obligation for the expenditure of money be incurred, except in pursuance of the annual appropriation in the adopted budget or when changed as authorized by §
55-6. At the close of each fiscal year, any unencumbered balance of an appropriation shall revert to the general fund and shall be subject to reappropriation, but appropriations may be made by the Council, to be paid out of the income of the current year, in furtherance of improvements of other objects or works which will not be completed within such year and any such appropriation shall continue in force until the purpose for which it was made shall have been accomplished or abandoned.
The establishment of a formal policy governing the purpose and
acceptable parameters of fund balance levels is an effective contribution
to the financial management practices of a municipality. A formally
adopted policy shall help eliminate any ambiguity regarding what constitutes
an appropriate purpose for maintaining available fund balances.
A. The City shall establish an emergency reserve to pay for needs caused
by unforeseen emergencies. This reserve shall be maintained at 5%
of the general operating fund revenues.
B. The City shall establish a contingency reserve to provide for unanticipated
expenditures of a nonrecurring nature, or to meet unexpected small
increases in service delivery costs. This reserve shall be maintained
at 0.5% of the general operating fund.
C. The City shall establish a capital reserve fund and shall appropriate
funds to it annually to provide for timely replacement of equipment
and other capital projects. The amount in the reserve shall be maintained
at $100,000. This amount shall be reviewed on an annual basis to determine
its ongoing adequacy, and if deemed necessary modified accordingly
by resolution of the City Council.
D. The City shall establish a working capital reserve to provide sufficient
working cash balances. This shall eliminate the need for any short-term
borrowing which may be necessitated by any timing lapse between receipt
of short-term receivables and remittance of short-term payables. This
reserve shall be maintained at an amount equivalent to at least 10%
of the general operating fund revenues.
E. Interfund transfers to cover shortfalls should not be a standard
policy. If interfund transfers prove necessary after implementation
of the above reserves, each reserve amount as stated above should
be adjusted in subsequent years to eliminate the need therefore.
F. If shall be the responsibility of the Finance Director/Treasurer
to monitor aforementioned reserve balances on a monthly basis and
report to the Council material deviations therefrom.
(1) To maintain the above fund balances, the City shall:
(a)
Eliminate the budgeted use of fund balance if said use would
reduce fund balance below policy minimums.
(b)
Apply remaining unexpended general fund resources at the end
of each fiscal year to add to the cash portion of the reserves if
necessary to meet policy minimums.
(c)
Encourage using a portion of the tax levy generated by equalized
valuation which may be higher than used for budget development to
add to the cash portion of the reserves if necessary to meet policy
minimums.
In the absence of sound debt issuance and management policies,
it is very difficult for public officials to accurately evaluate the
long-term consequences of funding decisions. The consistent application
of carefully developed debt management policies shall benefit the
City in a number of areas. Foremost among these benefits is enhanced
credit quality and improved access to the credit market, resulting
in the City's ability to incur debt at favorable interest rates in
the amounts necessary to fulfill its obligations and prescribed responsibilities.
A. The City shall confine long-term borrowing to projects as defined
in § 67.04, Wis. Stats.
B. When the City finances capital projects by issuing bonds or notes,
it should strive to pay back the bonds and notes within a period not
to exceed the expected useful life of the project. Maximum term for
equipment should be five years. Maximum term for remodeling should
be 10 years. Maximum term for streets, sewers and other improvements
to land should be 15 years. Maximum term for acquisition of land in
new building construction should be no more than 20 years.
C. In accordance with Article XI, Section 3 of the Wisconsin Constitution
and § 67.07, Wis. Stats., the City shall keep the maximum
maturity of general obligation bonds at or below the legally defined
limit of 20 years. The City shall structure debt issues to insure
timely payback of principal. Principal retirement shall strive to
keep annual principal and interest payments for each issue either
level or decreasing. The City should strive to keep the average maturity
of any general obligation bond issue to not exceed 14 years.
D. The City's goal shall be to maintain total annual debt service at
a maximum level of 25% of total annual general operating revenue.
Total annual debt service for general obligation debt shall in no
case exceed 50% of total annual generated operating revenue per current
legally defined limits.
E. Total general obligation debt shall not exceed 5% of the equalized
value pursuant to Article XI, Section 3 of the Wisconsin Constitution
and § 67.03(1), Wis. Stats. The City shall strive to maintain
a level of general obligation debt equivalent to not more than 75%
of its legal limit as defined above.
F. Where possible, the City shall strive to use special assessment bonds
pursuant to §§ 66.0709, 66.0711, 66.0713, 66.0715,
and 67.16, Wis. Stats., or revenue obligations pursuant to § 66.0621,
Wis. Stats., or other self-supporting bonds instead of general obligations
pursuant to § 67.16, Wis. Stats. to more equitably distribute
the costs of services to the benefactors thereof.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
G. The City shall not use long-term debt for current operations.
H. The City shall retire any tax anticipation debt annually pursuant
to § 67.12(1)(a), Wis. Stats.
I. The City shall maintain good communications with bond rating agencies
about its financial condition. The City shall follow a policy of full
disclosure on every financial report and bond prospectus and respond
to any reasonable request by financial advisors and/or underwriters
for ongoing disclosure to fully comply with SEC 15(c)2-12 disclosure
rule or any future federal or state disclosure regulations.
The City shall maintain a minimum level of taxation which shall
allow for the responsible execution of its prescribed mission to operate
the City in a cost efficient and responsible manner. The City shall
actively manage its property tax millage rate to eliminate unnecessary
annual fluctuations. Wherever possible the City shall seek to match
its sources of revenue with specific benefactors of associated services.
A. The City shall try to maintain a diversified and stable revenue system
to shelter it from short-run fluctuations in any one revenue source.
B. The City shall estimate its annual revenues by an objective, analytical
process.
C. The City shall project revenues for the next five years and shall
update this projection annually. Each existing and potential revenue
source shall be reexamined annually.
D. The City shall maintain sound appraisal procedures to keep property
values current. Reassessments shall be made of all property at least
every four years to insure compliance with applicable law. During
each reassessment, the City shall strive to assess property as near
as possible to 100% of full market value.
E. The year-to-year increase of actual revenue from the property tax
for general operations shall generally not exceed the inflation factor
percent.
F. The City shall establish all user charges and fees for enterprise
fund accounts at a level related to the cost of providing the services
and maintenance of acceptable level of return to utility base.
G. Intergovernmental grants shall generally not exceed 15% of the current
operating budget.
H. The amount of funds necessary to match intergovernmental grants shall
generally not exceed 7.5% of current operating budget.
The City recognizes the need for fair, consistent and understandable
financial reporting, so that 1) city residents shall be kept accurately
apprised of their government's operations; 2) government officials
shall have necessary information to utilize for comparative analysis
during the financial decision making process; and 3) outside entities,
e.g., banks, underwriters, credit agencies, etc., shall have requisite
information to facilitate any necessary debt issuance.
A. The City shall establish and maintain a high standard of accounting
practices.
B. The accounting system shall maintain records on a basis consistent
with accepted standards for local government accounting and generally
accepted accounting principles (GAAP), including proper accounting
for fixed assets.
C. Regular monthly and annual financial reports shall present a summary
of financial activity by major types of funds.
D. Where possible, the reporting system shall also provide monthly information
on the total cost of specific services by type of expenditure and
if necessary, by fund. This report shall include a comparison to last
years expenditures.
E. An independent public accounting firm shall perform any annual audit
and shall publicly issue a financial opinion.
F. Remedial actions necessary to eliminate any exceptions or qualifications
referenced in auditor's opinion statement shall be taken immediately
upon notification thereof.
A properly drafted capital improvement plan insures that today's
needs are considered in light of tomorrow's expectations. It is of
paramount importance that decisions involving large outlays of public
funds be made within the confines of a long-term planning horizon.
This is exceptionally critical for projects whose useful life shall
typically outlast the tenure of today's decisionmakers.
A. The City shall make all capital improvements in accordance with an
adopted capital improvement program.
B. The City shall develop a five-year plan for capital improvements
and update it annually.
C. The City shall enact an annual capital budget based on the multiyear
capital improvement plan. Future capital expenditures necessitated
by changes in population, changes in real estate development, or changes
in economic base shall be calculated and included in capital budget
projections.
D. The City shall coordinate development of the capital improvement
budget with development of the operating budget. Future operating
costs associated with new capital improvement shall be projected and
included in operating budget forecasts.
E. The City shall use intergovernmental assistance to finance only those
capital improvements that are consistent with the capital improvement
plan and City priorities, and whose operating and maintenance costs
have been included in operating budget forecasts.
F. The City shall maintain all its assets at a level adequate to protect
the City's capital investment and to minimize future maintenance and
replacement costs.
G. The City shall project its equipment replacement and maintenance
needs for the next five years and shall update this projection each
year. From this projection a maintenance and replacement schedule
shall be developed and followed.
H. The City shall identify the estimated costs and potential funding
sources for each capital project proposal before it is submitted to
Council for approval.
I. The City shall utilize the least costly financing method for all
new projects after taking into consideration the appropriate form
of debt as outlined in the debt policy statements, e.g., general obligation,
revenue, etc.
J. The Finance Director/Treasurer shall be responsible for maintaining
all fixed assets records to be included in the "General Fixed Asset
Account Group."
K. It shall be the ultimate responsibility of the Council to review
all potential capital projects and determine final prioritization
of needs and subsequent inclusion or elimination of each project from
capital improvement plan.
The objectives of the purchasing policy are 1) to ensure purchases are authorized by the designated responsible party as specified in §
55-16E through
J; 2) to procure quality goods and services at a competitive price; and 3) to obtain and pay for purchases in a timely fashion. The purchasing policy shall be followed by any City department or utility which is funded in whole or in part by the taxpayers or ratepayers. The intentional staggering or dividing of purchases and/or contracts to evade the purchasing policy is strictly prohibited. All costs associated with an item, such as shipping charges, assembly, and equipment additions shall be included in the estimated cost of an item. For the purposes of the purchasing policy, "budgeted items" are considered to be routine operating purchases of goods and services and nonroutine capital items specifically identified in the current budget document.
A. Responsibility of Finance Director/Treasurer.
(1) Ensure funds are available for purchases pursuant to the budget.
(2) Ensure the demand or account is accurate in amount and a proper charge
against the Treasury.
(3) Ensure the goods or services were duly authorized by the designated
responsible party and have been received or rendered to the satisfaction
of the City.
B. Finance Committee. No account or demand against the City, except as provided for in Chapter
86, Mayor and Council, shall be paid until it has been audited.
C. Payment of regular wages or salaries and approved City contracts.
Regular wages or salaries of City officers and employees shall be
paid by payroll, verified by the Finance Director/Treasurer and department
head. City contracts shall be paid in a timely fashion as spelled
out in the contract once approved by the City Council.
D. Purchases of budgeted items of $2,500 or less. If the estimated price
of an item is $2,500 or less and is budgeted, the appropriate department
head is authorized to purchase said item. If the item is over $2,500,
the department head shall make every effort to obtain three quotes
for the item. The quotes shall be presented to the Finance Director/Treasurer
for approval prior to ordering the item. Whenever it is in the best
interest of the City, the purchase shall be made based on the lowest
quote. If the purchase is not made based on the lowest quote, documentation
must be maintained on file to support the decision to purchase from
a vendor other than the lowest quote.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
E. Purchases of budgeted items more than $2,500 and less than $5,000.
For the purchase of a budgeted item involving an estimated expenditure
more than $2,500 and less than $5,000, the appropriate department
head must make every effort to solicit enough quotes in order to receive
at least three. The quotes shall be presented to the City Administrator
for approval prior to ordering the item. Whenever it is in the best
interest of the City, the purchase shall be made based on the lowest
quote. If the purchase is not made based on the lowest quote, the
purchase must be presented for approval to the Finance Committee and
City Council.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
F. Purchases of nonbudgeted items or services over $500. If the price
of an item is over $500 and the item is not included in the current
budget and is not a routine operating expenditure, the appropriate
department head must make every effort to solicit enough quotes in
order to receive at least three. The quotes must be presented for
approval to the Finance Committee and City Council.
G. Emergency purchases of non-budgeted items over $500. Emergency purchases
shall only be made 1) to prevent delays in construction or delivery
of service or 2) to stay an immediate threat to the health or safety
of the public and employees. For emergency purchases of nonbudgeted
items or services with an estimated cost over $500, the appropriate
department head shall make every effort to obtain three quotes for
the item. The purchase shall be approved by the City Administrator
prior to ordering the item. In the City Administrator's absence, the
purchase shall be approved by the Finance Director/Treasurer prior
to ordering the item.
H. Purchases of $5,000 or more not covered by § 62.15, Wis.
Stats. Every effort must be made to send out enough bids or quotation
requests in order to receive a minimum of three in order that the
proper Council committee and/or Finance Committee can make a recommendation
to Council. Appropriate notices shall be published, plans and specifications
shall be distributed, and bids or quotations shall be opened and examined
and a report shall be made to the appropriate Council Committee concerning
the bids or quotations received. The report shall contain a recommendation
concerning the bid or quotation to be accepted or rejected. If a bid
or quotation other than the lowest bid or quotation is recommended,
the report shall state the reasons for such recommendation which shall
be forwarded to Finance Committee for their disposition. Any project
receiving only one bid shall be rebid unless it is approved by a three-fourths-vote
of the Council. The City has the right to reject any and all quotes
and/or bids.
I. Public construction of $5,000 but not more than $25,000. All public
construction, as defined in §§ 62.15 and 66.0901, Wis.
Stats., the estimated cost of which exceeds $5,000 but is not greater
than $25,000, shall be let to the contractor submitting the lowest
responsible quote; provided, however, that there shall be a Class
1 notice, under Ch. 985, Wis. Stats., of the proposed construction
before the contract for the construction is executed. The Council
may also, by a vote of three-fourths of all the members, authorize
that any public construction be done directly by the City without
submitting the same for bids. Any project receiving only one bid shall
be rebid unless it is approved by a three-fourths vote of the Council.
The City has the right to reject any and all quotes and/or bids.
J. Public construction over $25,000. All public construction in which
the estimated cost exceeds $25,000 shall be let by contract to the
lowest responsible bidders. The bidding process shall incorporate
the requirements in §§ 62.15 and 66.0901, Wis. Stats.
Any project receiving only one bid shall be rebid unless it is approved
by a three-fourths vote of the Council, the City has the right to
reject any and all quotes and/or bids.
[Amended by Ord. No. 01-08]
K. Change orders on public construction contracts. Whenever it is reasonably
possible, a proposed increase in the cost of a public construction
contract resulting from a change in the scope of the project shall
be presented to the Finance Committee and City Council for approval,
provided that it will not result in a costly delay to the construction
project. If the cost of delaying the project is prohibitive, change
orders which are a result of a change in the scope of the project
shall be approved by the appropriate department head and the City
Administrator. All change orders must be approved by the Finance Committee
and City Council prior to final payment on the contract.
[Amended by Ord. No. 02-08]
[Amended by Ord. No. 98-5]
A. Definition. As used in this section, the following terms shall have
the meanings indicated:
CONTRACTED PROFESSIONAL SERVICES
All professional services not otherwise provided by the City
of Edgerton staff. Such professional services include but are not
limited to the following:
(1)
Assessor, City Attorney, auditor, financial consultants, engineer,
cleaning services, and recyclable and garbage collection services.
B. Evaluation of services. The City shall annually review the performance of all providers of professional services. At anytime, a majority of the City Council may choose to request proposals following the selection process in §
55-17C.
C. Selection process.
(1) Request for proposals (RFP) shall be submitted to a sufficient number
of entities providing the required professional services, so that
the Finance Committee and/or committees of jurisdiction may interview
three professionals providing the required services.
(2) RFPs shall at least require the submission of references, background
of staff and company history. Additional requirements may be required
by the City Administrator/Clerk or Finance Director/Treasurer.
(3) Committees of jurisdiction shall make a selection and make a recommendation to the Mayor. Appointment shall be made as provided in Chapter
101, Officers and Employees, Article
III, Appointed Officials.
D. Term of contract. A one-year probationary provision shall be incorporated
into all contracts with new providers.
E. Contracts in writing. All services provided should be under written
contract. An accepted proposal signed by both parties is acceptable
in lieu of a written contract.
[Amended by Ord. No. 96-12]
A. Prior to the approval of any legal expenditure for buildings or equipment
that exceeds 7% of the current general fund operating budget for the
City of Edgerton, excluding sewer and water utility, an expenditure
must be submitted to the electors of the City of Edgerton in a special
binding referendum.
B. The referendum procedures shall be as set forth in § 67.05(3),
Wis. Stats.
C. That contrary provisions of any of the ordinances of the City Code
shall be and hereby are repealed.
D. This section is adopted by a Charter ordinance and shall take effect
after its passage and publication as it was approved by a majority
of the electors voting thereon at a binding referendum vote held by
the City of Edgerton on March 19, 1996.