The fiscal year of the City of DeSoto shall begin on October 1st of each calendar year and will end on September 30th of the following calendar year. The fiscal year will also be established as the accounting and budget year. All funds collected by the City during any fiscal year including both current and delinquent revenue shall belong to such fiscal year and, except funds derived to pay interest and create a sinking fund on the bonded indebtedness of the City, may be applied to the payment of the expenses incurred during such fiscal year. Any revenues uncollected at the end of any fiscal year, and any unencumbered funds actually on hand, shall become resources of the next succeeding fiscal year.
The City Manager, prior to August 1st of each year, shall prepare and submit the budget, covering the next fiscal year, to the Council, which shall contain the following information:
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The City Manager's budget message shall outline the proposed financial policies for the next year with explanations of any change from previous years in expenditures and any major changes of policy and complete statement regarding the financial conditions of the City.
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An estimate of all revenue from taxes and other sources, including the present tax structure rates and property evaluation for the ensuing year.
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A carefully itemized list of proposed expenses by office and department, including a list of capital projects, as compared to actual expenses of the last ended fiscal year and the present year to date.
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A description of all outstanding bond indebtedness, showing amount, purchaser, date of issue, rate of interest, and maturity date, as well as any other indebtedness which the City had incurred and which has not been paid.
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A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provisions for financing.
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A projected list of capital projects which should be undertaken within the five (5) next succeeding years.
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All funds, without exception, are to be included in the budget document; and
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In preparing the budget, each employee, officer, board and department shall assist the City Manager by furnishing all necessary information.
(Ordinance 2324-23 adopted 7/18/2023)
The budget and all supporting schedules shall be filed with the City Secretary when submitted to the Council and shall be open to public.
(Ordinance 2324-23 adopted 7/18/2023)
At the Council meeting at which time the budget is submitted the Council shall name the date and place of a public hearing for a date occurring after the 15th day after the date the proposed budget is filed with the municipal clerk but before the date the governing body makes its tax levy, and shall cause to be published in the official newspaper of the City the time and place in accordance with state law. At this hearing, interested citizens may express their opinions concerning items of expenditure and revenue.
(Ordinance 2324-23 adopted 7/18/2023)
After public hearing the Council shall analyze the budget, making any additions or deletions which they feel appropriate, and shall adopt the budget by a majority vote of all members of the Council unless state law provides otherwise.
(Ordinance 2324-23 adopted 7/18/2023)
On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the Council shall constitute the official appropriation as proposed expenditures for the current year and shall constitute the basis of the official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriations may be transferred to any item required for the same general purpose.
The City Manager may recommend for action by the Council, an unallocated reserve fund to be used for unexpected items of expense which were not contained as original items of expenditures.
Payments and obligations prohibited. No payment shall be made or obligations incurred against any allotment or appropriation except in accordance with appropriations duly made in the budget unless the City 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.
Notwithstanding anything above, there shall be no transfer of budgeted funds or monies from one department to another department without prior Council approval.
The City Manager shall submit to the Council each month a report of the financial condition of the City in a format and containing such information as the Council may require. The financial records of the City will be maintained on an accrual basis to support this type of financial management. The City Manager shall make available to the City Council monthly a cash disbursements journal of the City of all funds and accounts.
(Ordinance 2324-23 adopted 7/18/2023)
Expenditures to meet unusual and unforeseen conditions, which were not included in the original budget, may from time to time be authorized as amendments to the original budget. Any amendment providing for additional expenditure shall also provide for reductions in other expenditures or supplemental revenues to fund such amendments, or an amount from the unallocated fund balance as a supplement. Amendments shall be approved by ordinance prior to the expenditure of funds, except in the case of emergencies. In the case of emergencies, the City Manager shall notify the City Council of the emergency and shall ratify the amendment as soon as is reasonably allowed.
(Ordinance 2324-23 adopted 7/18/2023)
A copy of the budget, as finally adopted, shall be filed with the City Secretary and such other places as required by state law. Copies of the final budget shall be made available for the use of all offices, agencies and for the use of interested persons and civic organizations.
(Ordinance 2324-23 adopted 7/18/2023)
Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements shall not nullify the tax levy or the tax rate.
At the close of each fiscal year, and at such other times as it may be deemed necessary, the Council shall direct that an independent audit be made of all accounts of the City in accordance with applicable auditing standards by a Certified Public Accountant or firm of such accountants who shall have no personal interest, directly or indirectly, in the financial affairs of the City or any of its officers and shall report directly to the City Council. The Certified Public Accountant or firm of accountants selected to prepare the audit shall be limited to providing such services for not more than five (5) consecutive fiscal years, and shall not again thereafter be eligible for selection until at least one fiscal year has elapsed since the proceeding such services were performed by such Certified Public Accountant or firm of accountants.
The annual audit, including all reports and management letters, shall be submitted and reported to the Council. A copy of the annual audit, after acceptance by the Council, will be filed with the City Secretary and shall be available for public inspection.
(Ordinance 2324-23 adopted 7/18/2023)
The City shall comply with state law regarding purchasing and contracting of municipalities including provisions relating to notice of contracts, advertisements for notice, requirements for taking sealed bids or proposals on specifications for public improvements or purchases, the manner of opening bids and the award of contracts.
(Ordinance 2324-23 adopted 7/18/2023)