The fiscal year of the City government shall begin on the first day of July of each and end on the thirtieth day of June of the following year.
Unless otherwise provided by ordinance, the City shall continue to use, for the purpose of ad valorem municipal taxation, the county system of assessment and tax collection, as such system is now in effect or may hereafter be amended and insofar as such provisions are not in conflict with this Charter.
If the City Council shall fail to fix the rates and levy taxes on or before August 31, in any year, the rates for the next preceding fiscal year shall thereupon be automatically adopted and a tax at such rates shall be deemed to have been levied on all taxable property in the City for the current fiscal year.
Exclusive of special levies permitted by this Charter, the City Council shall not levy a property tax in excess of One ($1.00) Dollar on each One Hundred ($100.00) Dollars of the assessed value of taxable property in the City for municipal purposes, unless authorized by the affirmative votes of two-thirds of the electors voting on such proposition at any election at which the question of such additional levy for municipal purposes is submitted to the electors.
There shall be levied and collected at the time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes, if no other provision for payment thereof is made:
(a) 
A tax sufficient to meet all liabilities of the City for principal and interest of all bonds or judgments due and unpaid, or to become due during the ensuing fiscal year; and
(b) 
A tax sufficient to meet all obligations of the City to the State Employees' Retirement System, for the retirement of City Employees, due and unpaid or to become due during the ensuing fiscal year.
A special levy, in addition to the above, may be made annually for park, playground and recreation purposes in an amount not to exceed twenty (20c) cents on each One Hundred ($100.00) Dollars of the assessed value on taxable property in the City.
Special levies, in addition to the above, may be made annually, for libraries in an amount not to exceed ten (10c) cents on each One Hundred ($100.00) Dollars of the assessed value of taxable property in the City, and for promotion and advertising in an amount not to exceed five (5c) cents on each One Hundred ($100.00) Dollars of the Assessed value of taxable property in the City.
The limits upon the special levies permitted hereunder may not be exceeded unless authorized by the affirmative votes of two-thirds of the electors voting on such proposition at an election at which a proposal to exceed any such limit is submitted.
The proceeds of any special levy shall be used for no other purpose than that specified.
The bonded indebtedness of the City may not exceed the sum of fifteen (15%) percent of the total assessed valuation of property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purpose of acquiring, establishing or extending a system of water-works for the supplying of water, or for the purpose of constructing sewers or drains in the City, for which purposes a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and of this Charter.
At such date as he shall determine, the City Manager, or an officer designated by him, shall obtain from each department head estimates of revenue and expenditure for his department, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager shall review the estimates, shall hold conferences thereon with the department heads, respectively, and may revise the estimates as he may deem advisable.
Prior to the beginning of each fiscal year, the City Manager shall submit to the City Council the proposed budget as prepared by him. After reviewing same and making such revisions as it may deem advisable, the City Council shall determine the time for the holding of a public hearing thereon and shall cause to be published a notice thereof not less than ten (10) days prior to said hearing by at least one insertion in the official newspaper.
Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing.
At the time so advertised, or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget at which interested persons desiring to be heard shall be given an opportunity to do so.
After the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before June 30, it shall adopt the budget with revisions if any, by the affirmative votes of at least three members. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. A copy thereof, certified to by the City Clerk, shall be filed with the City Controller and a further copy shall be placed, and shall remain on file, in the office of the City Clerk where it shall be available for inspection. The budget so certified shall be reproduced and copies made available for the use of officers, departments and agencies of the City.
From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered.
At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget.
Every contract involving an expenditure of more than Twenty Five Thousand Dollars ($25,000.00) for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds shall be let to the lowest responsible bidder after notice by publication in the official newspaper by one or more insertions, the first of which shall be at least ten days before the time for opening bids.
The City Council may reject any and all bids presented and may readvertise in its discretion.
The City Council without advertising for bids, or after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, the work in question may be performed better or more economically by the City with its own employees and after the adoption of a resolution to this effect by at least four affirmative votes, it may proceed to have the said work done in this manner stated without further observance of the provision of this section. Such contracts likewise may be let without advertising for bids, if such work shall be deemed by the City Council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by motion passed by at least four affirmative votes and containing a declaration of the facts constitution such urgency.
Under the control and direction of the City Manager there shall be established a centralized purchasing system for all City departments and agencies. The City Manager shall recommend and the City Council shall consider and adopt by ordinance rules and regulations governing the contracting for, purchasing, storing, distribution or disposal of all supplies, materials and equipment required by any office, department or agency of the City government.
Before making purchases of, or contracts for, supplies, materials or equipment, ample opportunity shall be given for competitive bidding, under such rules and regulations and with such exceptions as the City Council may prescribe in the ordinance setting up such rules and regulations. When making purchases for the City, local merchants shall be given the preference, quality and prices being equal.
The City Council shall annually set aside from the income derived from its revenue producing public utilities, as a separate depreciation fund for each of said public utilities, a sum which, according to the estimate of the City Manager, and approved by the City Council, shall be sufficient to meet the normal depreciation in said public utility. Such depreciation funds shall be used only for the replacement, betterment, and extension of the plants and equipment of said public utilities, respectively.
A fund for capital outlays, generally, is hereby created, to be known as the "Capital Outlays Fund." The City Council by ordinance may create a special fund or funds for a special capital outlay purpose. The City Council may levy and collect taxes for capital outlays and may include in the annual tax levy a levy for such purposes in which event it must apportion and appropriate to any such fund or funds the monies derived from such levy. It may not, in making such levy, exceed the maximum tax rate provided for in this Charter, unless authorized by the affirmative votes of a majority of the electors voting on the proposition at any election at which such question is submitted. The City Council may transfer to any such fund any unencumbered surplus funds remaining on hand in the City at any time.
Once created, such fund shall remain inviolate for the purposes for which it was created; if, for capital outlay, generally, then for any such purposes, and if for a special capital outlay, then for such purpose only, unless the use of such fund for some other purpose is authorized by the affirmative votes of a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted.
If the purpose for which any capital outlay fund has been created has been accomplished the City Council may transfer any unexpended or unencumbered surplus remaining in such fund to the fund for capital outlays, generally established by this Charter.
The City Council may prescribe by ordinance for the setting up of a "Treasurer's Departmental Trust Fund" into which the collection of the police department, street department, building official, etc., may be deposited daily by the respective officers with the City Treasurer. Withdrawals from such fund may be made by the Treasurer only on order signed by the proper department head and for the following purposes only:
(a) 
The making of refund of bail which has been exonerated or of other refundable deposits;
(b) 
The making of settlements with City funds at the end of each calendar month for collections accumulated during the month.
Petty Cash Funds. The City Council may provide for revolving petty cash funds, to be paid to the City Manager or department heads and used for payment in cash of expenditures provided for in the budgets that cannot conveniently be paid otherwise. The City Manager of such other department heads shall account to the City Council for all disbursements made therefrom when making demand for replenishment of the same and at such other times as the Council may require and the amounts of such disbursements shall thereupon be charged against the proper appropriations.
Each demand against the City shall be presented to the City Controller, who shall examine the same. If the amount thereof is legally due and there remains on his books an unexhausted balance or an appropriation against which the same may be charged, he shall approve such demand and draw his warrant on the City Treasurer therefore, payable out of the proper fund. Objections of the Controller may be overruled by the City Council and the warrant ordered drawn.
The City Controller shall transmit such demand with his approval or rejection thereof endorsed thereon and warrant, if any, to the City Manager. If a demand is one for which an appropriation has been made, it shall require the approval of the City Manager. A demand for which no appropriation has been made, shall require the approval of the City Council.
Any person dissatisfied with the refusal of the City Manager to approve any demand, in whole or in part, may present the same to the City Council, which, after examining into the matter may approve or disapprove the demand in whole or in part.
At every regular meeting of the City Council, the City Manager shall furnish the City Council with a list of all demands approved by him since the date of the preceding regular meeting.
After approval by the City Manager, or City Council, as the case may be, the warrant in payment thereof as prepared, by the City Controller, shall be presented to the City Treasurer and shall be paid by him out of the funds designated, if there be sufficient money in the fund for that purpose. A warrant not paid for lack of funds shall be registered, and all registered warrants shall be paid in the order of their registration when funds therefore are available.
In the payment of municipal or other bonds upon presentation and surrender of the proper bonds or coupons, the Treasurer shall draw his warrant for payment thereof which, upon approval by the Controller shall be paid without further approval by any body or officer.
No suit shall be brought on any claim or demand for money or damages against the city or any board, commission or officer thereof until a claim has been presented to the City and rejected in whole or part. The procedures, requirements, restrictions and time limits applicable to and governing the presentation to and processing of claims for damages, and the filing of lawsuits following the rejection in whole or in part of claims, shall be governed by the California Tort Claims Act as set forth in the California Government Code. The City Council may, by ordinance, require the presentation of claims for demands otherwise exempted from the claims presentation requirements.
The City Council shall employ, at the beginning of each fiscal year, a qualified accountant who, at such time or times as may be specified by the City Council, shall examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of such other officers, employees or departments as the City Council may direct. At the end of the year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member, one to the City Manager, City Controller, City Treasurer, and City Attorney, respectively, and three additional copies to be placed on file in the office of the City Clerk where they shall be available for inspection by the general public.