[HISTORY: Adopted by the City Council of the City of Marion by Ord. No. 18-32 (Ch. 7 of the 2000 Code). Amendments noted where applicable.]
The purpose of this chapter is to establish policies and provide for rules and regulations governing the management of the financial affairs of the City.
The City Treasurer is the accounting officer of the City.
To assure the proper accounting and safe custody of moneys, the following shall apply:
A. 
Deposit of funds. All moneys or fees collected for any purpose by any City officer shall be deposited through the office of the City Treasurer. If any said fees are due to an officer, they shall be paid to the officer by check drawn by the City Treasurer and approved by the Council only upon such officer's making adequate reports relating thereto as required by law, ordinance or Council directive.
B. 
Deposits and investments. All moneys belonging to the City shall be promptly deposited in depositories selected by the Council in amounts not exceeding the authorized depository limitation established by the Council or invested in accordance with the City's written investment policy and state law, including joint investments as authorized by § 384.21 of the Code of Iowa.
C. 
Petty cash fund. The City Treasurer shall be the custodian of a petty cash fund for use for small purchases and payments. The City Treasurer shall obtain some form of receipt or bill for petty cash disbursements. At such time as the petty cash fund is approaching depletion, the City Treasurer shall draw a check for replenishment in the amount of the accumulated expenditures, and such check shall be submitted to Council as a claim in the usual manner for claims and charged to the proper funds and accounts. It shall not be used for salary payments or other personal services or personal expenses.
There shall be established and maintained separate and distinct funds in accordance with the following:
A. 
Revenues. All moneys received by the City shall be credited to the proper fund as required by law, ordinance or resolution.
B. 
Expenditures. No disbursement shall be made from a fund unless such disbursement is authorized by law, ordinance or resolution, was properly budgeted, and supported by a claim approved by the Council.
C. 
Emergency Fund. No transfer may be made from any fund to the Emergency Fund.
D. 
Debt Service Fund. Except where specifically prohibited by state law, moneys may be transferred from any other City fund to the Debt Service Fund to meet payments of principal and interest. Such transfers must be authorized by the original budget or a budget amendment.
E. 
Capital Improvements Reserve Fund. There is established as a part of the system of municipal budgeting an account known as the "Capital Improvements Reserve Fund." The City Treasurer shall deposit in this fund such sums as directed by the City Manager; provided, however, no taxes shall be certified or levied to fund this account unless approved by election as established in § 384.7 of the Code of Iowa.
F. 
Utility and Enterprise Funds. A surplus in a Utility or Enterprise Fund may be transferred to any other City fund, except the Emergency Fund and Road Use Tax Funds, by resolution of the Council. A surplus may exist only after all required transfers have been made to any restricted accounts in accordance with the terms and provisions of any revenue bonds or loan agreements relating to the Utility or Enterprise Fund. A surplus is defined as the cash balance in the operating account or the unrestricted retained earnings calculated in accordance with generally accepted accounting principles in excess of:
(1) 
The amount of the expense of disbursements for operating and maintaining the utility or enterprise for the preceding three months; and
(2) 
The amount necessary to make all required transfers to restricted accounts for the succeeding three months.
G. 
Balancing of funds. Fund accounts shall be reconciled at the close of each month and a report thereof submitted to the Council.
[Ord. No. 20-02]
The annual operating budget of the City shall be prepared in accordance with the following:
A. 
Proposal prepared. The City Manager is responsible for preparation of the annual budget detail, for review by the Mayor and Council and adoption by the Council in accordance with directives of the Mayor and Council.
B. 
Boards and commissions. All boards, commissions and other administrative agencies of the City that are authorized to prepare and administer budgets must submit their budget proposals to the City Manager for inclusion in the proposed City budget at such time and in such form as required by the Council.
C. 
Submission to Council. The City Manager shall submit the completed budget proposal to the Council each year at such time as directed by the Council.
D. 
Resolution establishing maximum property tax dollars. The Council shall adopt a resolution establishing the total maximum property tax dollars that may be certified for levy that includes taxes for City government purposes under Code of Iowa § 384.1, for the City's trust and agency fund under Code of Iowa § 384.6, Subsection 1, for the City's emergency fund under Code of Iowa § 384.8, and for the levies authorized under Code of Iowa § 384.12, Subsections 8, 10, 11, 12, 13, 17 and 21, but excluding additions approved at election under Code of Iowa § 384.12, Subsection 19.
(1) 
The Council shall set a time and place for a public hearing on the resolution before the date for adoption of the resolution and shall publish notice of the hearing not less than 10 days nor more than 20 days prior to the hearing in a newspaper published at least once weekly and having general circulation in the City.
(a) 
If the City has an internet site, the notice shall also be posted and clearly identified on the City's internet site for public viewing beginning on the date of the newspaper publication or public posting, as applicable. Additionally, if the City maintains a social media account on one or more social media applications, the public hearing notice or an electronic link to the public hearing notice shall be posted on each such account on the same day as the publication of the notice.
(b) 
All of the following shall be included in the notice:
[1] 
The sum of the current fiscal year's actual property taxes certified for levy under the levies specified in this subsection and the current fiscal year's combined property tax levy rate for such amount that is applicable to taxable property in the City other than property used and assessed for agricultural or horticultural purposes.
[2] 
The effective tax rate calculated using the sum of the current fiscal year's actual property taxes certified for levy under the levies specified in this subsection, applicable to taxable property in the City other than property used and assessed for agricultural or horticultural purposes.
[3] 
The sum of the proposed maximum property tax dollars that may be certified for levy for the budget year under the levies specified in this subsection and the proposed combined property tax levy rate for such amount applicable to taxable property in the City other than property used and assessed for agricultural or horticultural purposes.
[4] 
If the proposed maximum property tax dollars specified under Subsection D(1)(b)[3] exceed the current fiscal year's actual property tax dollars certified for levy specified in Subsection D(1)(b)[1], a statement of the major reasons for the increase.
(c) 
Proof of publication shall be filed with and preserved by the County Auditor. The Department of Management shall prescribe the form for the public hearing notice for cities and the form for the resolution to be adopted by the Council under Paragraph C of this subsection.
(2) 
At the public hearing, the Council shall receive oral or written objections from any resident or property owner of the City. After all objections have been received and considered, the Council may decrease, but not increase, the proposed maximum property tax dollar amount for inclusion in the resolution and shall adopt the resolution and file the resolution with the County Auditor as required under Code of Iowa § 384.16, Subsection 3.
(3) 
If the sum of the maximum property tax dollars for the budget year specified in the resolution under the levies specified in this subsection exceeds 102% of the sum of the current fiscal year's actual property taxes certified for levy under the levies specified in this subsection, the Council shall be required to adopt the resolution by a two-thirds majority of the membership of the Council.
(4) 
If the City has an internet site, in addition to filing the resolution with the Auditor under Code of Iowa § 384.16, Subsection 3, the adopted resolution shall be posted and clearly identified on the City's internet site for public viewing within 10 days of approval by the Council. The posted resolution for a budget year shall continue to be accessible for public viewing on the internet site along with resolutions posted for all subsequent budget years.
E. 
Council review. The Council shall review the proposed budget and may make any adjustments it deems appropriate in the budget before accepting such proposal for publication, hearing and final adoption.
F. 
Notice of hearing. Following, and not until adoption of the resolution required under Subsection D of this section, the Council shall set a time and place for public hearing on the budget to be held before March 31 and shall publish notice of the hearing not less than 10 days nor more than 20 days before the hearing. A summary of the proposed budget and a description of the procedure for protesting the City budget under § 384.19 of the Code of Iowa, in the form prescribed by the Director of the Department of Management, shall be included in the notice. Proof of publication of the notice under this subsection and a copy of the resolution adopted under Subsection D of this section must be filed with the County Auditor.
G. 
Copies of budget on file. Not less than 20 days before the date that the budget must be certified to the County Auditor and not less than 10 days before the public hearing, the Clerk shall make available a sufficient number of copies of the detailed budget to meet the requests of taxpayers and organizations and have them available for distribution at the offices of the Mayor and City Clerk and have a copy posted at one of the places designated for the posting of notices.
H. 
Adoption and certification. After the hearing, the Council shall adopt, by resolution, a budget for at least the next fiscal year, and the City Treasurer shall certify the necessary tax levy for the next fiscal year to the County Auditor and the County Board of Supervisors. The tax levy certified may be less than, but not more than, the amount estimated in the proposed budget submitted at the final hearing or the applicable amount specified in the resolution adopted under Subsection D of this section. Two copies each of the detailed budget as adopted and of the tax certificate must be transmitted to the County Auditor.
A City budget finally adopted for the following fiscal year becomes effective July 1 and constitutes the City appropriation for each program and purpose specified therein until amended as provided by this section.
A. 
Program increase. Any increase in the amount appropriated to a program must be prepared, adopted and subject to protest in the same manner as the original budget.
B. 
Program transfer. Any transfer of appropriation from one program to another must be prepared, adopted and subject to protest in the same manner as the original budget.
C. 
Activity transfer. Any transfer of appropriation from one activity to another activity within a program must be approved by resolution of the Council.
D. 
Administrative transfers. The City Treasurer shall have the authority to adjust, by transfer or otherwise, the appropriations allocated within a specific activity without prior Council approval.
The accounting records of the City shall consist of not less than the following:
A. 
Books of original entry. There shall be established and maintained books of original entry to provide a chronological record of cash received and disbursed.
B. 
General ledger. There shall be established and maintained a general ledger controlling all cash transactions, budgetary accounts and for recording unappropriated surpluses.
C. 
Checks. Checks shall be signed by the City Treasurer. Checks will be disbursed by the City Treasurer following Council approval, except as provided by Subsection E hereof.
D. 
Budget accounts. There shall be established such individual accounts to record receipts by source and expenditures by program and activity as will provide adequate information and control for budgeting purposes as planned and approved by the Council. Each individual account shall be maintained within its proper fund and so kept that receipts can be immediately and directly compared with revenue estimates and expenditures can be related to the authorizing appropriation. No expenditure shall be posted except to the appropriation for the function and purpose for which the expense was incurred.
E. 
Immediate payment authorized. The Council may by resolution authorize the Treasurer to issue checks for immediate payment of amounts due, which if not paid promptly would result in loss of discount, penalty for late payment or additional interest cost. Any such payments made shall be reported to the Council for review and approval with and in the same manner as other claims at the next meeting following such payment. The resolution authorizing immediate payment shall specify the type of payment so authorized and may include but is not limited to payment of utility bills, contractual obligations, payroll and bond principal and interest.
The City Treasurer shall prepare and file the following financial reports:
A. 
Monthly reports. There shall be submitted to the Council each month a report showing the activity and status of each fund, program, subprogram and activity for the preceding month.
B. 
Annual report. Not later than December 1 of each year, there shall be published an annual report containing a summary for the preceding fiscal year of all collections and receipts, all accounts due the City and all expenditures, the current public debt of the City, and the legal debt limit of the City for the current fiscal year. A copy of the annual report must be filed with the Auditor of the state not later than December 1 of each year.
A. 
Whenever the City solicits proposals or bids on any construction project, the proposal or contract to be entered into shall provide that the contractor shall, at the direction of the City Engineer, either post a satisfactory maintenance bond or deposit with the City Treasurer a cash amount equal to 1.5% of the contract amount, prior to acceptance of the project. Whenever a developer is required to install a public improvement, the developer shall, at the direction of the City Engineer, either post a satisfactory maintenance bond or deposit with the City Treasurer a cash amount equal to 1.5% of the cost of said public improvement, prior to acceptance of the same by the City.
B. 
If the City Engineer directs either a contractor or developer to make a cash deposit with the City Treasurer, the same shall be in lieu of a maintenance bond and shall not be refundable. Such a deposit shall not relieve the contractor or developer of the duty to remedy any and all defects that may develop in the contractor's or developer's work prior to the expiration of time as set forth in the contract or in the City Engineer's instructions on installation of a public improvement by reason of bad workmanship or poor materials.
C. 
The City Treasurer shall maintain all said deposits in an account called the "Construction Maintenance Fund," which shall stand as surety for the contractor or developer, guaranteeing to indemnify the City should the contractor or developer fail to remedy at their own cost and expense any and all defects that may develop in said work within the time period prescribed. Said guarantee shall not relieve the contractor or developer of their primary liability any more than would a maintenance bond. The funds shall not be expended from the Construction Maintenance Fund except as directed by the Council.
[Amended 8-17-2023 by Ord. No. 23-21]