The fiscal and budget year of the city shall begin on the first
day of July of each year.
Not later than the first day of February of each year, each
officer, department, and board of the city shall submit to the City
Manager an itemized estimate of its expected income and expenditures
during the next fiscal year for the department or activities under
its control. The City Manager shall compile such information and list
the same upon a budget proposal form. He shall review such budget
requests, and in a column parallel to and adjacent to that containing
such budget requests, shall enter his budgetary recommendations for
each item requested by the several officers and departments, with
such additions thereto and deletions therefrom as he shall deem proper.
Not later than the second meeting of the Council in April of each
year, he shall submit to the Council a recommended budget for the
next fiscal year which, considering any anticipated unexpended balance
or deficit at the end of the current fiscal year, is within the tax
limit and other anticipated revenue of the city.
The budget proposal of the City Manager, together with his recommendations
and its supporting schedules and information, shall be available for
public inspection in the office of the Clerk.
A public hearing on the budget proposal shall be held not less
than one week before its final adoption, at such time as the Council
shall direct. Notice of the public hearing shall be published by the
Clerk at least one week in advance thereof.
(a)
At a regular meeting held not later than the second Monday in June
of each year, the Council shall, by resolution, adopt a budget for
the ensuing fiscal year and make an appropriation of the money needed
therefor. Such resolution shall designate the sum to be raised by
taxation for the general purposes of the city and for the payments
of principal and interest on its indebtedness. Failure to adopt such
resolution within the time herein set shall not invalidate either
the budget or the tax levy therefor.
(b)
A copy of the appropriations for each fiscal year, certified by the
Clerk, shall be furnished to the City Auditor within 10 days after
the date of the adoption of the budget resolution.
(a)
Except for purposes which are to be financed by the issuance of bonds
or by special assessments, no money shall be drawn from the treasury
of the city, except in accordance with the budget in effect and the
appropriation for such purpose, nor shall any obligation for the expenditure
of money be incurred without an appropriation covering all payments
which will be due under such obligation during the fiscal year. The
Council, upon the written recommendation of the City Manager and by
the affirmative vote of not less than six of its members, may appropriate
unappropriated funds or transfer any unencumbered appropriation balance,
or any portion thereof, from any budget item or account, department,
or agency to another.
(b)
Expenditures shall not be charged directly to any contingent or general
account. Instead, the necessary amount of the appropriation from such
account shall be transferred to the appropriate budget item or account
and the expenditure then charged thereto.
(c)
During each month, the City Manager shall submit to the Council data
showing the relation between the estimated and actual revenues and
expenditures for the general operation of the city to the end of the
preceding month; and, if it shall appear that the revenues are less
than anticipated, the Council may, by resolution, reduce appropriations,
except amounts required for debt and interest charges, to such a degree
as may be necessary to keep expenditure within the revenues.
(d)
Within 30 days following the end of each fiscal year, the City Manager
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.
(a)
The Council may, by ordinance, establish and maintain accounts for
accumulating moneys to be used for acquiring, extending, altering,
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 sub-section (a) hereof, shall be used only at the
direction of the Council, and only for the purpose provided in the
original ordinance establishing such account, 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
to provide for a change in the use of the moneys in such account.
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 sub-section (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 six members of the Council.
(a)
Unless otherwise provided by law or by ordinance, all moneys drawn
from the treasury shall be drawn pursuant to the authority and appropriation
of the Council. The Council, upon the recommendation of the City Manager,
where necessary to expedite operating procedures, may authorize, in
writing, other officers and employees of the city to make minor disbursement
from petty cash accounts, which disbursements shall be accounted for
and shall be audited by the City Auditor.
(b)
Checks for the disbursement of city funds shall be signed by the
City Auditor and countersigned by the Treasurer.
(c)
Checks may be issued prior to authorization by the Council for such
purposes and up to such amounts as the Council shall provide by ordinance.
(a)
The city shall not be liable in damages for injury to person or property
by reason of negligence of the city, other than such as may arise
from the exercise of a proprietary function of the city, unless, within
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.
(b)
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 refer the claim to
the Council for action.
(c)
Failure to give notice of injury or to present a claim within the
time and in the manner provided shall bar any action upon such claim.
(d)
The provisions and requirements of this section shall not apply to
or control claims for damages to persons or property which arise out
of the exercise of any proprietary function of the city.
(e)
This section shall not be deemed to waive any defense of immunity
which the city may have from claims for damages arising out of negligence
or otherwise, but shall apply in all cases where such defense is not
available to the city.
[1]
Editor's Note: The provisions of this section regarding the
period within which notice of a claim against the City must be served
has been superseded by case law. Interested persons are advised to
contact the City Attorney for the latest applicable law.
(a)
Subject to the applicable provisions of law, the city may borrow
money for any purpose within the scope of its powers or which may
be permitted by law, and may issue bonds or other evidences of indebtedness
therefor. Such bonds or other evidences of indebtedness shall include,
but not be limited to the following types:
(1)
General obligation bonds for the payment of which the full faith
and credit of the city is pledged;
(2)
Special assessment bonds which are issued in anticipation of
the payment of special assessments for the purpose of defraying the
cost of any one or more public improvements which bonds shall be both
an obligation of the special assessment district and a general obligation
of the city as the Council may determine;
(3)
Revenue bonds, as authorized by law;
(4)
Tax anticipation notes, which may be issued in anticipation
of the collection of taxes for the current or next succeeding fiscal
years of the city or any other year permitted by law, in the manner
and subject to any limitations provided by law;
(5)
Mortgage bonds, as authorized by law, for the acquiring, owning,
purchasing, constructing, improving, or operating of any public utility
which the city is authorized by law to finance in this manner;
(6)
Bonds issued in anticipation of future payments from the Motor
Vehicle Highway Fund or any other fund of the State which the city
may be permitted by law to pledge for payment of the principal and
interest thereof, which bonds, if law so permits, may also be a general
obligation of the city;
(7)
Water main extension bonds, in an amount not to exceed 1% of
the assessed valuation of all real and personal property in the city,
for the payment of which the full faith and credit of the city are
pledged for the refunding from time to time of moneys advanced or
paid on special assessments imposed for water main extensions as buildings
are connected with such extensions, which bonds shall be payable in
not more than 30 years, with interest thereon at a rate which shall
not exceed 6% per annum;
(8)
Calamity bonds, issued in case of fire, flood, or other calamity
for the relief of the inhabitants of the city and for the preservation
of municipal property, in a sum not to exceed three-eighths of 1%
of the assessed value of the real and personal property in the city,
which shall become due in not more than five years.
(b)
Whenever any portion of public improvements shall be assessed by
or charged to the city-at-large and the balance of such cost assessed
against the property benefitted, the Council may provide for the payment
of the city portion of such cost in installments. In such case, bonds
may be issued in anticipation of the payment of the amount assessed
against the city-at-large, the same as they may be issued in anticipation
of the payment of the amount assessed against the benefitted property.
In such case, the Council shall appropriate in each fiscal year an
amount which is sufficient to pay the principal of and interest on
such bonds which is required to be paid during that year. Such bonds
may be included as a part of a total issue of bonds for the public
improvement to which they apply and need not be separated from bonds
issued in anticipation of the payment of special assessments assessed
against the benefitted property.
(c)
Bonds may be issued in anticipation of the collection of special
assessments levied with respect to two or more public improvements,
but no special assessment district shall be required to pay the obligation
of any other special assessment district and the ordinance or resolution
creating such districts shall so provide.
(d)
All collections on special assessment rolls or on any combination
of such rolls shall be set apart in a separate fund and shall be used
for the purpose for which levied, and for the payment of the principal
of and interest on bonds issued in anticipation of such special assessments.
As to such of said bonds as are also a general obligation of the city,
if there is any deficiency in any special assessment fund to meet
the payment of the principal or interest to be paid therefrom, moneys
shall be advanced from the general funds of the city to meet such
deficiency, and shall be replaced in the general funds when the special
assessment fund shall be sufficient therefor.
(e)
Each bond or other evidence of indebtedness shall contain on its
face a statement specifying the purpose for which the same is issued,
and the proceeds thereof shall not be used for any other purpose,
except that, whenever the proceeds of any bond issue, or a part thereof,
remain unexpended and unencumbered for the purpose for which said
bond issue was made, the Council may, by the confirming vote of not
less than five members, authorize the use of such unexpended and unencumbered
funds:
(1)
For the retirement of such bond issue; or
(2)
If such bond issue has been fully retired, then for the retirement of other bonds or obligations of the city provided for by this section: Provided, that in the case of special assessment bonds, such funds shall be refunded to the owners of property against which special assessments therefor were made, or placed in the general fund of the city in accordance with the provisions of Section 9.2 of this charter; and
(3)
For such other purposes as may be permitted by law, subject
to the proviso in paragraph (2) above; or
(4)
If such funds cannot be so used, then in any manner approved
by the vote of not less than six members of the Council.
(f)
No bond or other evidence of indebtedness, regardless of type or
purpose, shall bear interest at a rate exceeding that fixed by law.
(g)
All bonds and other evidences of indebtedness shall be signed by
the Mayor and countersigned by the Clerk, under the seal of the city.
Interest coupons may be executed with the facsimile signatures of
the Mayor and the Clerk. A complete and detailed record of all bonds
and other evidences of indebtedness shall be kept by the Treasurer.
Upon the payment of any bond or other evidence of indebtedness, the
same shall be marked "Cancelled" or otherwise defaced by the Treasurer
to indicate payment.
(a)
The net bonded indebtedness incurred for all public purposes shall not at any time exceed 10% of the assessed value of all the real and personal property in the city, as last equalized by the State of Michigan: Provided, that, in computing such net bonded indebtedness, there shall be excluded money borrowed under the provisions of Section 7.10. (a), clauses (2), (3), and (4) of this chapter, and any other bonds which are not, by law, subject to the debt limitation of the city. The resources of any debt retirement or sinking fund pledged for the retirement of any outstanding bonds which are subject to the debt limitation herein established shall also be deducted from the amount of the bonded indebtedness.
(b)
No bonds shall be sold to obtain funds for any purpose other than
that for which they were specifically authorized, and if such bonds
are not sold within three years after authorization, such authorization
shall be null and void, except when delay is caused by litigation
or when a bond issue has been authorized by the electors to be issued
in two or more parts or series. In the case of litigation, the three-year
period shall start at the time of the filing of the final judgment
or decree. In case of bonds authorized to be issued in two or more
parts or series, the first part or series shall be sold within three
years after authorization and the final part or series shall be sold
within 10 years after authorization.
The Council shall designate depositories for city funds in accordance
with law, and shall provide for the regular deposit of all city moneys.
An independent audit shall be made of all accounts of the city
government at the close of each fiscal year, and shall be completed
within 90 days thereafter. Special independent audits may be made
at any time that the Council may designate. All such audits shall
be made to the Council by a Certified Public Accountant designated
by it. Each audit and reports supplemental thereto shall be made public
in the manner that the Council determines and copies thereof shall
be placed in the office of the Clerk and the Coldwater Library.
The City Manager shall prepare an annual report of the affairs
of the city, after the completion of the annual audit. The report
shall include condensed financial statements showing the results of
all city operations, including statements for each public utility
owned or operated by the city. Copies of such report shall be made
available for public inspection and distribution at the office of
the Clerk and by such other method as the Council may determine.
