CHAPTER 9. GENERAL FINANCE

Sec. 9.1. Fiscal year.

The fiscal and budget year of the city shall begin on the first day of January of each year.

(As amended 11-2-76)

Sec. 9.2. Budget preparation and procedure.

During or before the sixth week preceding the first day of the fiscal year, the city manager shall present to the council a budget proposal for the next fiscal year of the city. Such budget proposal shall set forth the city manager's recommendation for and an analysis of the anticipated income and expenditures of the city during the next fiscal year, together with comparative figures showing the estimated corresponding amounts for the current year and comparisons with the previous year. The proposed expenditures set forth in the budget proposal shall not exceed the expected revenues of the city. The proposed expenditures set forth in the budget proposal of the city's hospital shall be separate and distinct from the general city budget proposal. Unencumbered funds remaining at the end of the current fiscal year may be reallocated for purposes set forth in the budget proposal.
(Res. No. 98-49, 8-17-98)

Sec. 9.3. Budget adoption procedure.

(a) The budget proposal of the city manager shall be reviewed by the council and shall be available for public inspection in the office of the clerk.

(b) The council shall direct that a public hearing on the budget proposal be held not less than one week before its final adoption. A notice of the public hearing shall be published in a newspaper by the clerk at least one week prior to the date of hearing.

(c) At a regular meeting held prior to the end of the fiscal year, the council shall, by resolution, adopt a budget for the following fiscal year and make an appropriation of the money needed for the conduct of the city government during the fiscal year covered by the budget.

(d) If the council does not adopt a budget prior to the commencement of the next fiscal year, the budget proposal shall become an appropriation and the budget for the fiscal year without further council action.

(e) A copy of the appropriations for each fiscal year certified by the clerk, shall be furnished to the director of finance and the city manager within ten (10) days after the date of the adoption of the budget resolution.
(Res. No. 98-49, 8-17-98)

State law reference(s)--Mandatory that charter provide for annual appropriations, MCL 117.3(h), MSA 5.2073, (h).

Sec. 9.4. Budget control.

(a) The city manager may authorize unencumbered appropriation balances to be transferred within a department at any time. At the request of the city manager or on its own initiative, the council may transfer unencumbered balances from one office, department, or agency of the city to another.

(b) The director of finance shall submit periodically to the council, information comparing estimated and actual revenues and expenditures to the end of the preceding month.
(Ord. No. 98-49, 8-17-98)

Sec. 9.5. Withdrawal of funds.

(a) All funds drawn from the treasury shall be drawn pursuant to the authority of the council and in accordance with appropriations made. The hospital board and the library board shall provide rules for the disbursement of hospital and library funds, which rules shall be effective upon the approval thereof by the council.

(b) The council shall prescribe the method for the disbursement of city funds. Unless otherwise provided by ordinance, all checks of the city shall be signed by the mayor and the clerk.

(c) Expenditures shall not be charged directly to any contingent or general account. Instead, expenditures shall be charged to accounts provided therefor and if there is a deficiency in any account the necessary amount of the appropriation from such account shall be transferred to the appropriate budget item or account, before the expenditure may be made.

(d) Within thirty (30) days following the end of each fiscal year, the finance director shall file with the council a schedule of all encumbrances upon the budget appropriations existing at the end of the fiscal year, with his recommendations thereon, and the council shall provide for the payment of such thereof as constitute valid claims against the city from corresponding budget items from the then current fiscal year.

Sec. 9.6. Special accounts.

(a) The council may, by ordinance, establish and maintain accounts for accumulating moneys to be used for acquiring, extending, constructing, or repairing public improvements and for the purchase of equipment of any type, in each case either for a specific item or items or for future unspecified public improvements or equipment, or both.

(b) Appropriations to such accounts may be made by the council either in the annual appropriation resolution or, from time to time during the fiscal year, from available funds, from whatever source derived, which are not required for other appropriations or obligations of the city. Such accounts shall be continuing accounts and the balances therein at the end of each fiscal year shall remain a part thereof.

(c) Moneys which are accumulated for the purpose of public improvements, as set forth in subsection (a) hereof, shall be used only at the direction of the council and only for the purpose provided in the original ordinance establishing such accounts, unless their use for some other municipal purpose be authorized by a majority vote of the electors of the city who vote on the proposition to amend such ordinance. After the purpose of any such account has been fulfilled, any balance remaining therein may be transferred by the council to any other special account or to the general fund of the city.

(d) Moneys which are accumulated for the purpose of purchasing equipment, as set forth in subsection (a) hereof, shall be expended only for the purpose provided in the ordinance establishing any such account, or as such ordinance may be amended from time to time, and, when no longer required for such purpose, such moneys or any part thereof may be transferred to the general fund by a resolution adopted by the affirmative vote of not less than five (5) members of the council.

Sec. 9.7. Notice to city for claim for injuries.

The city shall not be liable in damages for injury to person or property by reason of negligence of the city, its officer or employees, except such as may arise out of or in the course of the performance of a proprietary function of the city, or by reason of any defective highway, public work, public service improvement, or facility of the city, or by reason of any obstruction, ice, snow, or other encumbrance thereon, unless, within sixty (60) days after such injury occurred, the person damaged or his representative causes a written notice to be served upon an officer of the city upon whom process may be served by law. Such notice shall state that such person intends to hold the city liable for such damages, and shall set forth substantially the time and place of the injury, the manner in which it occurred, the nature of the act or defect complained of, the extent of the injury so far as known and the names and addresses of witnesses known to the claimant. Except in cases arising out of or in the performance of a proprietary function of the city, no person shall bring action against the city for damages to person or property arising out of any of the reasons or circumstances aforesaid, unless brought within the period prescribed by law, nor unless he has first presented to the clerk a claim in writing and under oath, setting forth specifically the nature and extent of the injury and the amount of damages claimed. The clerk shall present any such claim to the council for action. Except in cases arising out of or in the performance of a proprietary function of the city, it shall be a sufficient bar to any action upon any such claim that the notice of injury and the claim in writing under oath, required by this section, were not filed within the time and in the manner herein provided.

Editor's note--The above section is superceded by MCL 691.1401 et seq., MSA 3.996(101) et seq.

Sec. 9.8. Depositories.

The council shall designate depositories for city funds in accordance with law, and shall provide for the regular deposit of all city moneys.

State law reference(s)--Depositories, MCL 129.11 et seq., MSA 3.751 et seq.

Sec. 9.9. Independent audit.

An independent audit shall be made of all accounts of the city government by certified public accountants at the close of each fiscal year, and shall be completed on or before the fifteenth of June following the close of the fiscal year. Special independent audits may be made to the council by a certified public accountant designated by it. An analysis or summary of the audit shall be made public by the council. A copy of each audit shall be placed in the Albion Public Library.