The fiscal year of the city shall begin on July 1 and shall end on the last day of June, unless another period is required by general law.
The mayor shall call a joint meeting of the city council and school committee before the commencement of the budget process to review the financial condition of the city, revenue and expenditure forecasts and other relevant information prepared by the mayor in order to develop a coordinated budget.
Not less than 45 days before the beginning of the fiscal year, the mayor shall submit to the city council a proposed operating budget for all city agencies, which shall include the school department, for the ensuing fiscal year with an accompanying budget message and supporting documents. The budget message submitted by the mayor shall explain the operating budget in fiscal terms and in terms of work programs for all city agencies. It shall outline the proposed fiscal policies of the city for the ensuing fiscal year, describe important features of the proposed operating budget and indicate any major variations from the current operating budget, fiscal policies, revenues and expenditures, together with reasons for these changes. The proposed operating budget shall provide a complete fiscal plan of all city funds and activities and shall be in the form the mayor deems desirable. The school budget, as adopted by the school committee, shall be submitted to the mayor within a reasonable time before the submission of the proposed operating budget to the city council. The mayor shall notify the school committee of the date by which the budget of the school committee shall be submitted to the mayor. The mayor and the school committee chair shall coordinate the dates and times of the school committee's budget process under the General Laws.
(a) 
Public Hearing. The city council shall publish in at least 1 local news publication of general circulation in the city a notice of the proposed operating budget as submitted by the mayor. The notice shall state: (i) the times and places where copies of the entire proposed operating budget are available for inspection by the public; and (ii) the date, time and place, not less than 14 days after its publication, when a public hearing on the proposed operating budget will be held by the city council.
(b) 
Adoption of the Budget. The city council shall adopt the operating budget, with or without amendments, not more than 45 days following the date the budget is filed with the city clerk. In amending the operating budget, the city council may delete or decrease any amounts except expenditures required by law. The city council, except on the recommendation of the mayor, shall not increase any item in or the total of the proposed operating budget unless otherwise authorized by law. If the city council fails to take action on an item in the operating budget within 45 days after receipt of the budget, that amount shall, without any action by the city council, become a part of the appropriations for the year and shall be available for the purposes specified.
The mayor shall submit a capital improvement program to the city council every 3 years and not less than 120 days before the start of the fiscal year in which the program report is due. The capital improvement program shall include: (i) a clear and concise general summary of its contents; (ii) a list of all capital improvements proposed to be undertaken during the next ensuing 5 years, with supporting information as to the need for each capital improvement; (iii) cost estimates, methods of financing and recommended time schedules for each improvement; and (iv) the estimated annual cost of operating and maintaining each facility and piece of major equipment involved.
The mayor shall annually revise this information with regard to the capital improvements still pending or in the process of being acquired, improved or constructed.
The city council shall annually provide for an outside audit of the books and accounts of the city to be made by a certified public accountant or a firm of certified public accountants that has no personal interest, direct or indirect, in the fiscal affairs of the city or any of its officers. The mayor shall annually provide to the city council a sum of money sufficient to satisfy the estimated cost of conducting the audit as presented to the mayor, in writing, by the city council. The award of a contract to audit shall be made by the city council annually, not later than September 15. The clerk of committees shall coordinate the work of the individual or firm selected. The report of the audit shall be filed in final form with the city council not later than March 1 in the year following the award of the contract.
Except as otherwise provided by law, no official of the city of Melrose shall knowingly and intentionally expend in any fiscal year any sums in excess of the appropriations duly made in accordance with law or involve the city in any contract for the future payment of money in excess of these appropriations and any such expenditure or involvement shall be in strict compliance with section 31 of chapter 44 of the General Laws. An official who violates this section shall be personally liable to the city for any amounts so expended to the extent that the city does not recover these amounts from the person to whom the sums were paid.