City of Ithaca, NY Financial Procedures

Recommended priority.

Development time schedule.

Estimated useful life in years.

Estimated costs for planning, site or right-of-way, construction, equipment and other features.

Status of plans and land acquisition.

(6)

Anticipated effect of project on annual operating budget.

(7)

Proposed method of paying for project.

(8)

Possible sources of financial aid.

(9)

Recommended expenditures by years, including total expenditures, remaining beyond the six-year period of the capital program, if any.

(10)

Such other information as the Controller may deem advisable.

Procedure.

Upon receipt of the unit requests, the Controller shall, without delay, forward the aggregate of requests to the Capital Program Committee for its review and recommendations.

The Capital Program Committee shall examine each such request and, if any are not sufficiently complete for the policy-making units further along in the budget cycle to make their determinations, the Committee shall obtain the additional data needed to justify policy review.

The Capital Program Committee shall, not later than May 15, hand up to the Capital Improvements Review Committee as one package its recommendations for a tentative capital budget, consisting of:

Its recommendations for further work on projects already started or to be started before the end of the current year;

Its recommendations for new starts during the next fiscal year;

(c)

Its recommendations for rejecting or postponing major requests and why; and

(d)

A list of projects already authorized on which a start during the current year has not been promised.

The Capital Improvements Review Committee shall then proceed with its review of the recommendations of the Capital Program Committee and shall, not later than July 1, hand up the Capital Program Committee's recommendations intact as received, together with its own recommendations, to the Budget and Administration Committee of the Common Council.

This procedure shall be conducted according to the Uniform System of Accounts prescribed by the New York State Department of Audit and Control.

Guidelines.

[Amended 11-3-2021 by L.L. No. 2022-07]

The Chairperson of the Budget and Administration Committee shall present its findings and its recommendation for total capital expenditures to the Common Council at its first meeting in August.

Following its deliberations, the Chairperson of the Budget and Administration Committee shall inform the City Manager of the Common Council's guidelines for finalizing the capital budget section of the executive budget. This shall be done not later than September 15 each year.

None of the tentative decisions arrived at during the foregoing shall be binding upon the parties during their subsequent finalizing of the executive budget.

§ 4-7 Proposed capital budget.

The City Manager, with the assistance of the Controller, shall proceed to prepare his/her proposed capital budget, which shall be arranged so as to give in parallel columns not less than the following comparative information for the appropriations and methods of financing capital projects.

[Amended 11-3-2021 by L.L. No. 2022-07]

Appropriations for the last completed fiscal year.

Appropriations for the present fiscal year.

Recommendations of the City Manager for the ensuing fiscal year.

The proposed capital budget shall also contain a statement as to each pending and proposed capital project, incorporating in columnar form the following data:

Estimated ultimate total costs.

Amount appropriated to date.

Amount expended to date.

Amount of additional or new appropriations included in the proposed capital budget for each project.

Method of financing each pending and proposed capital project, in accordance with the Uniform System of Accounts prescribed by the New York State Department of Audit and Control.

§ 4-8 Proposed operating budget.

Procedure.

[Amended 6-4-1997 by L.L. No. 6-1997; 11-3-2021 by L.L. No. 2022-07]

On or before the first day of August each year or at such earlier date as the City Manager may prescribe but not before the first day of July, the head of each quasi-independent board or commission receiving City funds on a budgeted basis, or his/her designee, and the head of each department or other spending unit of the City government shall furnish to the Controller an estimate of revenues and expenditures of his/her respective unit or authorized agency for the ensuing fiscal year, exclusive of capital projects.

Each estimate shall show the sources of revenues and the character and object of expenditures, which may be subclassified by functions and activities, designated according to the Uniform System of Accounts previously mentioned.

The estimate of each unit or agency shall be subdivided according to the internal organization of such unit.

Estimates shall be submitted in such form and shall contain such additional information as the City Manager and the Controller shall prescribe, provided that the estimate of expenditures shall constitute or be accompanied by a request for an appropriation.

Such estimates of expenditures shall be based on and shall be accompanied by a proposed work program prepared by each applicant for such funds and such proposed work program shall justify the funds requested.

Notification of dates and data. The Controller, annually, not less than 45 days prior to the date fixed pursuant to Subsection A of this section, shall notify, in writing, the head of each unit receiving City funds pursuant to contract or otherwise during the current fiscal year of the date fixed pursuant to said Subsection A and the form and information to be contained in such estimate and request.

Failure to submit. In the event that the head of any unit fails to submit an estimate by the date specified, the Controller shall forthwith prepare such estimate.

Controller's review of requests. The Controller, upon receipt of the estimates and requests for appropriations, shall proceed to make such review and investigation thereon as he/she may deem necessary. He/she may require the head of each unit or any officer or employee thereof requesting City funds to furnish data and information and answer inquiries pertinent to such review or investigation and, if necessary, to appear personally before him/her.

§ 4-9 Proposed executive budget.

Information required.

[Amended 11-3-2021 by L.L. No. 2022-07]

Upon the completion of the review and investigation of the estimates and requests from the various units and authorized agencies, the Controller shall prepare the proposed executive budget, under the direction of the City Manager, for both current operating and capital purposes. The proposed operating budget shall be in such form as the City Manager may deem advisable and shall show, in parallel columns, the following comparative information:

The actual expenditures and revenues for the last completed fiscal year.

The budget as modified for the current fiscal year.

(c)

The estimates of expenditures and revenues for the ensuing fiscal year submitted by the heads of the various quasi-independent agencies, departments and other units.

(d)

The Controller's recommendations and estimates as to expenditures and revenues for the ensuing fiscal year.

(e)

The executive budget as proposed by the City Manager.

The proposed capital budget shall be established according to procedures stipulated in § 4-6 of this chapter, in conformity with the Uniform System of Accounts previously mentioned.

Detailing of recommendations. The recommendations for expenditures in the proposed executive budget shall be classified by units and their subunits or by special funds. Such recommendations shall show the character and object of expenditure and shall contain:

[Amended 11-3-2021 by L.L. No. 2022-07]

An estimate of the several amounts which the City Manager deems necessary in the ensuing fiscal year for conducting the business of the City and each unit thereof, separately stated, and for other City purposes and charges, classified to show separately:

The ordinary recurring expense of the operation and the maintenance of City government; and

Any extraordinary or nonrecurring expenses to be financed from current revenue.

An estimate of the general contingent fund which the City Manager recommends to be provided for unanticipated or emergency City purposes or charges.

A statement of the several amounts recommended by the City Manager for appropriation to the reserve funds and sinking funds, if any.

A statement of the amount required to pay the interest on and amortization of or redemption of indebtedness becoming due in the ensuing fiscal year.

An estimate of the amount to be paid to school districts on account of unpaid school taxes to be returned to the City during such year.

(6)

The amount of any judgment recovered against the City and payable during the fiscal year and for which no bonds have been or will be issued.

Estimated revenues.

The estimates of revenue in the proposed executive budget shall be classified by accounts and units, shall show the sources of income and shall contain:

A statement of all revenues which it is estimated will be received by the City during the ensuing fiscal year, except from City taxes to be levied.

A statement of all unexpended balances, if any, at the end of the last completed fiscal year, which are available to meet the expenditure requirements of the fiscal year for which the proposed executive budget is being prepared.

(c)

An estimate of the anticipated receipts from delinquent taxes, which shall not exceed the amount received in cash from delinquent taxes during the last six months of the most recently completed fiscal year and the first six months of the current fiscal year, provided that delinquent taxes shall include the proceeds of the collection of all taxes levied or relevied by the Common Council for any year preceding the current fiscal year, together with interest and penalties thereon; the sale of property sold for such taxes; and the redemption of property sold for such taxes and bid in by the City but shall not include the proceeds of any such collection, sale or redemption occurring during the fiscal year for which such taxes were originally levied.

[Amended 6-4-1997 by L.L. No. 6-1997]

(d)

A statement as to the amounts, if any, from the capital reserve fund and/or sinking funds available for payments, other current capital payments or debt service during the ensuing fiscal year.

(e)

A statement of the estimated net City tax requirements, determined by subtracting the total estimated revenues, other than taxes to be levied, and such contributions from any other available surplus funds, from the total recommended expenditures for the ensuing fiscal year.

The Uniform System of Accounts prescribed by the New York State Department of Audit and Control will be followed in reviewing and preparing the executive budget.

Additional data concerning debt. In addition to items of operation and maintenance, the proposed executive budget shall include or be supplemented by a statement showing the bonded indebtedness of the City government and its quasi-independent boards, commissions and other units, the debt redemption and interest requirements, the indebtedness authorized and unissued, the condition of the capital reserve and sinking funds and the borrowing capacity of the City and any other matter which the City Manager may deem advisable or the Common Council may require.

[Amended 11-3-2021 by L.L. No. 2022-07]

§ 4-10 Budget legislation and message.

Preparation of legislation. The Controller shall cause to be prepared proposed appropriation and tax levying legislation referring to the proposed executive budget and making provision for the conduct of the City government for the ensuing fiscal year. The appropriations set forth in such legislation shall be classified by funds and units of City government. Such legislation shall be filed with the City Clerk as prescribed in Subsection B of this section.

Submission to Common Council.

[Amended 6-4-1997 by L.L. No. 6-1997; 11-3-2021 by L.L. No. 2022-07]

On or before the first day of October of each year, the City Manager shall submit to the City Controller for distribution to the members of the Common Council the proposed executive budget, including both the proposed operating budget and the proposed capital budget for the ensuing fiscal year, the proposed appropriation and tax levying legislation as prescribed by Subsection A of this section, and an accompanying budget message as prescribed by Subsection C of this section.

The proposed operating budget, the proposed capital budget, the budget message and the appropriation and tax levying legislation shall be combined as one document, which shall constitute the proposed City budget for the ensuing fiscal year.

The City Controller shall forward the proposed City budget, as defined in Subsection B(2) above, to the Common Council no later than three days after receipt of the proposed City budget from the City Manager.

Budget message. The City Manager's budget message shall include, but not be limited to, an outline of fiscal policy for the City government, describing the important features of the current budget, with reference both to proposed expenditures and anticipated income, and a general summary showing the current and capital requirements for the budget year, with supporting schedules, which shall exhibit the aggregate figures of the current budget in such manner as to show a balanced relation between the proposed expenditures and the total anticipated income for the fiscal year covered by it and which shall compare these figures with the corresponding figures of the last completed fiscal year and the year in progress. The message shall contain such comments with respect to the capital program and budget as the City Manager may deem advisable, including the probable effect thereof for each of the years involved.

[Amended 11-3-2021 by L.L. No. 2022-07]

Available as public record. Upon submission, the proposed City budget shall become a public record in the office of the City Clerk. Copies of the same shall be made available by the City Clerk for distribution at a charge to be fixed by the Common Council.

[Amended 11-3-2021 by L.L. No. 2022-07]

Review by Common Council or designated committee.

[Amended 6-4-1997 by L.L. No. 6-1997; 6-5-2013 by L.L. No. 2-2013; 11-3-2021 by L.L. No. 2022-07]

The Common Council, or a committee designated by it, shall review the proposed City budget as submitted by the City Manager and shall, not later than the 31st day of October, file with the City Controller its report, including any recommendations proposed therein.

Such report shall become a public record in the office of the City Controller.

Copies of the same shall be made available by the City Controller for distribution at a charge to be fixed by the Common Council.

§ 4-11 Public hearing.

[Amended 6-4-1997 by L.L. No. 6-1997; 11-3-2021 by L.L. No. 2022-07]

Not later than the second day of November, the City Clerk shall cause to be published in the official newspapers a notice of the place and time, not less than five days after such publication nor later than the seventh day of November, at which the Common Council at its regular November meeting will hold a public hearing on the proposed City budget submitted by the City Manager and the report submitted by the Common Council, or a committee designated by the Council.

§ 4-12 Adoption of budget.

[Amended 6-4-1997 by L.L. No. 6-1997; 6-5-2013 by L.L. No. 2-2013; 11-3-2021 by L.L. No. 2022-07]

Common Council action after hearing.

After the conclusion of the public hearing and no later than November 15, the Common Council, at a regular or special meeting, may strike items of appropriation or anticipated revenues from the proposed City budget or reduce items therein, excepting appropriations required by law or for debt service. The Council may add items to or increase items in such budget, provided that such additions or increases are stated separately and distinctly.

After the Council has made alterations, if any, to the proposed budget, the Council shall vote upon the question of whether to pass the proposed budget, as amended.

If the Common Council fails to pass any budget on or before the 16th day of November, the proposed budget shall be deemed adopted as the City budget for the ensuing fiscal year.

"Alteration," as used in § 4-12, means any addition, increase, decrease or deletion. "Deletion" includes striking an item.

A "business day," as used in § 4-12, begins at 8:30 a.m. and ends at 4:00 p.m. and includes any day on which City Hall is open to the public for business and does not include holidays recognized by the City, Saturdays or Sundays.

Return to City Manager.

If the budget as passed by the Common Council contains any such alterations, the same shall be presented by the City Clerk to the City Manager not later than two business days after its passage for his/her consideration of such alterations. The budget, including the alterations as part thereof, shall then be deemed adopted.

The City Manager may request reconsideration of such alterations and, in such case, shall append to the budget a statement of the alterations to which he/she requests reconsideration, with the reasons therefor, and shall return the budget with his/her requests for reconsideration to the City Clerk not later than three business days after presentation by the Clerk.

The Clerk shall distribute the same to the Common Council no later than two business days after receipt of the same from the City Manager.

At a meeting to be held not later than the 30th day of November, the Common Council may in its discretion proceed to consider, discuss and vote upon the question of whether to approve any or all of the alterations so objected to.

If 2/3 of the members of the Common Council vote to approve such alterations, or any of them, the budget with the alterations so approved, together with any additional alterations as Common Council may make in its discretion shall be deemed adopted.

Common Council's failure to act. If a budget has not been adopted as herein provided on or before the 30th day of November, the proposed executive budget as submitted by the City Manager, plus all alterations to which he/she has failed to object, shall be deemed adopted as the City budget for the ensuing fiscal year.

Certification of budget. Three copies of the City budget, as adopted, shall be certified by the City Clerk. One such copy shall be filed in the office of the Mayor and one each in the offices of the Controller and the City Clerk and the City Manager. The City budget, as so certified, shall be printed or otherwise reproduced, and copies shall be made available at a charge to be fixed by the Common Council.

Budget process checklist. The following table is provided merely as a convenience and if any conflict arises between this table and the text of the Code, the text shall be considered definitive. The Controller shall copy this chart from the Code, indicate on such copy the actual calendar date for each step in the current calendar year, and provide a copy to each department head, the City Manager and each Alderperson on or before the 31st day of March.

§ 4-13 Levy of taxes.

The net City tax requirement, determined by subtracting the total estimated revenues from the total proposed expenditures as set forth in the adopted budget, shall be levied by the Common Council on the taxable real property of the City as provided in § C-41 of the Charter. The taxes so levied shall include an amount to be known as "reserve for uncollected taxes" which shall be a City charge. The Common Council shall fix the amount of such reserve at such a sum as it may deem sufficient to produce in cash from the collection of taxes and other revenues during the year moneys required to meet the estimated expenditures of such year; provided, however, that such reserve shall be not less than the face amount of unpaid taxes for the preceding completed fiscal year.

§ 4-14 Supplemental and emergency appropriations.

If, during any fiscal year there are available for appropriation revenues received from sources not anticipated in the budget for that year and revenues received from anticipated sources but in excess of the budget estimates therefor, the Common Council may make supplemental appropriations for the year not in excess, however, of such additional revenues. To meet a public emergency affecting life, health or property, the Common Council may make emergency appropriations. To the extent that there are no available unappropriated revenues to meet such appropriations, the Common Council may authorize the issuance of obligations pursuant to applicable law.

§ 4-15 Reduction of appropriations.

[Amended 11-3-2021 by L.L. No. 2022-07]

If at any time during the fiscal year it appears that the revenues available will be insufficient to meet the amounts appropriated, the City Manager shall report to the designated committee of the Common Council without delay the estimated amount of the deficit, remedial action taken by him/her and his/her recommendations as to further action. The designated committee shall recommend and the Common Council shall take such action as it deems necessary to prevent any deficit. For that purpose, it may, by resolution, reduce one or more appropriations; but no appropriation for debt service may be reduced, and no appropriation may be reduced by more than the unencumbered balance thereof or below any amount required by law to be so appropriated. The Common Council may also, if it so desires, authorize borrowing temporarily pursuant to applicable law in an amount not greater than such deficit for such purposes.

§ 4-16 Transfer of appropriations.

[Amended 11-3-2021 by L.L. No. 2022-07]

Within limitations established by the Common Council, the City Manager may, at any time during the fiscal year, transfer part or all of any unencumbered appropriation balance between classifications or expenditures within the same unit of City government. The Common Council, on recommendation of the City Manager, may transfer part or all of any unencumbered appropriation balance from one administrative unit or authorized agency to another, but no transfer shall be made from appropriations for debt service, and no appropriation may be reduced below any amount required by law to be so appropriated.

§ 4-17 Budget controls.

No City officer, employee, administrative unit or other spending agency shall, during a fiscal year, expend or contract to expend any money or incur any liability or enter into any contract which, by its terms, involves the expenditures of money in excess of the amounts appropriated or having been authorized to be borrowed pursuant to the Local Finance Law by the Common Council. The unexpended balance of each current appropriation, less the commitments outstanding at the close of the fiscal year for which it was made, shall lapse at the close of such fiscal year and shall be deemed as revenue of sinking funds or reserve funds for the purpose of preparing, during the following fiscal year, the proposed City budget for the ensuing fiscal year pursuant to § 4-9B(2) of this article, and, in this respect, no assignment of a requisition number or a request by letter or other means to the Controller or any other City officer from any unit of City government for the purpose of holding over after the close of such fiscal year any unencumbered balance, or part thereof, of any appropriation shall be construed to be a commitment or the encumbering of any such appropriation, provided that nothing herein contained shall be construed to require the lapsing of appropriations which may or are required to be made for an indefinite period or which include state refunds, allocations or grants applicable to said appropriations pursuant to any other provision of law; and provided, further, that nothing herein shall be construed to prevent the making of appropriations or contracts for the construction of permanent public improvements or works not to be completed during the fiscal year, or the acquisition of property therefor or for leases or the establishment of bond or capital accounts, sinking fund or reserve funds, and each such appropriation, account or funds shall continue in force until the purpose for which it was made shall have been accomplished or shall have been abandoned. Any contract, verbal or written, made in violation of this section shall be null and void.

The expenditures of every unit of City government shall be the responsibility of the Controller. For such purposes the Controller shall, among other things:

Require, prior to the beginning of any fiscal year, the submission, by the head of each unit or authorized agency, of revised work programs based on appropriations in the adopted budget for such fiscal year and originally submitted as proposed work programs for such year by the head of each such administrative unit or authorized agency pursuant to § 4-8A of this article.

Prescribe quotas and allotments, and no unit, officer, employee or financial activity of the City shall encumber its appropriation in an amount in excess of that allowed by any quota or allotment so prescribed.