The fiscal year of the municipality shall begin on the first day of July and end on the thirtieth day of June of the following year. The assembly may change the fiscal year provided that the ordinance doing so is adopted not less than one year before the beginning of the first fiscal year affected.
Not later than 60 days before the end of the current fiscal year, the administrator shall submit to the assembly a budget for the following fiscal year, a capital improvements program and an accompanying explanatory message of both. The assembly may grant an extension of not to exceed 30 days if compelling reasons exist.
(a)
Complete Financial Plan. The budget shall be a complete financial plan for all the operations of the municipality, showing all reserves, all estimated revenues from all sources, and all proposed expenditures for all purposes.
(b)
Form. The budget shall contain at least the following:
(1)
A comparative statement of actual expenditures and actual revenues for the preceding fiscal year for each fund excluding capital project funds.
(2)
Estimated expenditures and estimated revenues for the current fiscal year for each fund excluding capital project funds.
(3)
A brief explanation of each item.
(4)
An analysis of working capital, excluding capital project funds.
(c)
Balanced Budget. Proposed expenditures shall not exceed total estimated revenues and reserves.
The Capital Improvements Program shall be a plan for capital improvements proposed for the following six fiscal years, together with the estimated cost of each improvement and the proposed method of financing it. It shall contain at least the following:
(1)
A summary of current capital improvements which are unfinished.
(2)
A simple, clear summary of the detailed contents of the detailed contents of the program, separating all proposed acquisitions of new fixed assets from repairs, maintenance, upgrades, and replacements of existing assets.
(3)
Capital improvements pending or proposed to be undertaken within the ensuing fiscal year, together with the estimated cost of each improvement and the proposed method of financing it.
Capital improvements to be financed in the following fiscal year shall be included in the budget as well as in the capital improvements program.
(4)
A summary of needed capital improvements which are deferred.
The administrators message shall contain an explanation of the budget both in fiscal terms and in terms of work to be done, a description of the important features of the budget, an outline of the proposed financial policy of the municipality for the following fiscal year, and an explanation of each capital improvement to be undertaken within the following six fiscal years.
Not later than 15 days before the end of the current fiscal year, a public hearing shall be held on the budget and capital improvements program. All persons interested shall have an opportunity to be heard. At least 10 days prior to the hearing the assembly shall:
(1)
Publish in a newspaper of general circulation in the municipality a summary of the budget and capital improvements program and a notice setting out the time for a public hearing.
(2)
Make the budget, the capital improvements program and message a public record available for public inspection and for distribution at such reasonable price as the assembly may direct.
(3)
Deliver copies of the notice and summary of the budget and capital improvements program and the message to newspapers of general circulation in the municipality and to the commercial radio and television stations operating in the municipality.
(a)
Budget Adoption. The assembly by ordinance shall adopt a budget not later than 10 days before the end of the current fiscal year. If it fails to do so, the budget submitted by the administrator shall be deemed adopted by the assembly as the budget for the following year.
(b)
Tax Levies. Prior to the end of the current fiscal year, the assembly shall make the tax levies deemed necessary to finance the budget for the ensuing fiscal year. Shall it fail to do so the expenditures proposed in the budget shall become the appropriations for that year.
The assembly by resolution shall adopt a capital improvements program not later than 10 days before the end of the current fiscal year. If it fails to do so, the capital improvements program submitted by the administrator shall be deemed adopted by the assembly.
(a)
Certification. The budget and capital improvements program as adopted shall be certified by the mayor and clerk and shall be a public record.
(b)
Distribution. Copies of the budget and capital improvements program as so certified shall be made available at the clerks office for distribution to the public at such reasonable process as the assembly may direct.
(a)
Supplemental Appropriations. If during any fiscal year there are available revenues received from sources not anticipated in the budget for that year or revenues received in excess of budget estimates, the assembly by ordinance may make supplemental appropriations for the year up to the amount of the additional revenues.
(b)
Emergency Appropriations. Upon declaration by the assembly that a public emergency exists and describing the emergency in clear and specific terms, the assembly may make emergency appropriations. Such appropriations may be made by emergency ordinance. If there are no available funds to meet such appropriations the assembly may provide for supplemental tax levies by an ordinance which shall be introduced at the same meeting at which the emergency appropriations are approved and enacted under the procedures outlined in Section 3.02 of this charter.
(a)
Reduction of Appropriations. If during the fiscal year it appears that revenues available will be insufficient to meet the amount appropriated, the administrator shall report to the assembly without delay. The assembly by resolution may reduce any appropriation, except for debt service. No appropriation may be reduced by more than the amount of the unencumbered balance.
(b)
Transfer of Appropriations. The administrator may transfer part or all of any unencumbered balance between classification of expenditures within a department, sub-department, internal service fund, or enterprise fund except for:
(1)
Transfer of appropriations for debt service, support payments, fixed assets, or transfers to other funds.
(2)
Transfer of appropriations to or from personnel costs and travel/training costs.
All transfers of appropriations will be documented and submitted to the assembly by the next regular assembly meeting.
The assembly by ordinance may transfer part or all of any unencumbered balance from one division, department, or sub-department to another. No transfer may be made from appropriations for debt service.
Every unencumbered surplus of the general fund or a service area shall lapse at the close of the fiscal year to the general fund or service area, respectively. An appropriation for a capital improvement shall not lapse until its purpose has been accomplished or abandoned.
(a)
Budget Authority. The administrator shall be responsible for execution of the budget, with oversight by the assembly. No monies shall be spent other than as authorized by the budget or in excess of budgeted amounts unless specifically authorized by the assembly.
The administrator shall provide the assembly with detailed information on budget execution and the assembly shall have the power to change or revoke any authorization.
(b)
Signatures Required. All checks and orders, except for those concerned with administration of the school budget, shall be signed by the mayor or other elected officer designated by the assembly, and the administrator, finance officer or other administrative officer designated by the assembly.
(c)
Appropriations and Unencumbered Balance Required. No payment may be made and no obligation incurred against the municipality except in accordance with appropriations duly made. No payment may be made and no obligations incurred against any appropriation unless the administrator ascertains that there is a sufficient unencumbered balance in the appropriation and that sufficient funds are or will be available to cover the obligation.
(d)
Illegal Acts. Every obligation incurred and every authorization of payment in violation of this charter shall be void. Every payment made in violation of the provisions of this charter shall be illegal. All officers or employees of the municipality who authorize or make such payments shall be jointly and severally liable to the municipality for the full amount so paid. The administrator shall proceed forthwith to collect the indebtedness unless otherwise directed by the assembly.
(e)
Notwithstanding Section 11.13(c) of this charter, the assembly by ordinance may authorize payment of funds in later fiscal years for a contract, lease or federal or state program or grant that the municipality might not otherwise be able to participate in.
(f)
Central Treasury. Except as otherwise provided by the assembly by ordinance, the assembly shall provide that all funds of the municipality from whatever source shall be deposited in a central treasury.
(g)
Centralized Accounting. Except for the school accounting system, the assembly shall provide for centralized accounting for the municipality. However, at the request of the school board, the assembly shall incorporate the school accounts in the centralized system.
(h)
Centralized Purchasing. The assembly may provide for centralized purchasing, storage, and distribution of any supplies, materials, and equipment for the municipality and its departments if the associated costs and related benefits warrant such procedures.
(Amended October 1, 2024 Election)
The assembly by ordinance shall provide for competitive bidding.
(a)
Purchases. Contracts for public improvements and whenever practicable other purchase of supplies, materials, equipment and services, except professional services and services of officers and employees of the municipality, shall be by competitive bid and awarded to the lowest qualified bidder. All contracts and purchases exceeding an amount to be established by ordinance shall require prior assembly approval.
(b)
Disposals. The municipality may sell, lease, or otherwise dispose of municipal property. Such disposal shall be by competitive bid and awarded to the highest qualified bidder, unless the assembly finds that competitive bidding is inappropriate due to the nature of the property or the circumstances surrounding its disposal, to include possible unjust results with regard to adjacent or neighboring property owners. The assembly shall enact ordinances governing property disposals.
Revenues from a municipal enterprise whether established before or after the ratification of this charter shall be first used for debt retirement, construction, acquisition, operation, maintenance, repair and capital improvement of the enterprise. Other uses of such revenues shall be only as authorized by ordinance or by budgetary action.
(a)
Purpose. A permanent fund is hereby created from appropriations to be made by assembly by ordinance. The permanent fund shall be maintained separate and apart from all other funds and accounts of the City and Borough. The purpose is to grow the principal of the permanent fund to provide an ever-increasing income stream to the Sitka general fund in perpetuity. The intent of the income stream is to reduce the tax burden on the citizens of Sitka.
(b)
Flow of Money into the Sitka Permanent Fund. The net proceeds from the sale of any municipal real property shall be deposited into the Sitka Permanent Fund. If the property was an active lease immediately prior to its sale by the City and Borough, for the next three years immediately after the sale the proceeds of the sale shall not be used in the distribution calculation described in subsection (c) of this section. For those properties described in the previous sentence, the value used for the distribution calculation shall for those first three years immediately after the sale be the amount of the lease payment that the sold property generated during the last year that the City and Borough owned the property.
(c)
Appropriations from the Sitka Permanent Fund to the Sitka General Fund. The assembly shall annually appropriate to the Sitka general fund six percent of the average market value of the Sitka Permanent Fund for the past three years. Such appropriation shall occur on July 1st of each year. The market value of the Sitka Permanent Fund for each year shall be that value as of December 31. Notwithstanding the first sentence of this subsection, the dollar amount appropriated each year shall not be greater than one hundred fifteen percent nor less than ninety percent of the previous year’s appropriation from the Sitka Permanent Fund. No funds in excess of the three-year average described in this subsection’s first sentence shall be distributed out of or appropriated from the Sitka Permanent Fund’s income or principal unless that distribution or appropriation is specifically authorized by a majority of the qualified voters voting at a general or special election. Nothing in the previous sentence shall affect the obligations of the City and Borough under any present or future bond covenants.
(d)
Management of Sitka Permanent Fund. The Sitka Permanent Fund shall be managed on a total rate of return basis, with all dividends and capital gains reinvested into the Sitka Permanent Fund. The assembly shall adopt an ordinance setting out an investment policy governing the management of the Sitka Permanent Fund.