CHAPTER 1-09
MUNICIPAL BUDGET PROCEDURES SECTIONS:
1-0901. Fiscal Year of Municipality.
1-0902. Preliminary Budget Statement.
1-0903. Contents of Preliminary Budget Statement.
1-0904. Notice of Preliminary Budget Statement.
1-0905. Hearing of Protests and Objections - Changes in Preliminary Budget - Preparation of Final Budget - Contents.
1-0906. Determination of Amount to be Levied.
1-0907. Certification of Levy.
1-0908. County Auditor to Extend Tax Levy.
1-0909. County Treasurer to Collect Municipal Taxes.
1-0910. Municipal Taxes Collected to be Credited to Appropriate Funds.
1-0911. Duration of Appropriations.
1-0912. Supplemental Appropriations.
1-0913. Emergency Appropriations.
1-0914. Reduction in Appropriations.
1-0915. Expenditures Made or Liabilities Incurred Beyond Appropriation - Joint and Several Liability of the Council.
1-0916. State’s Attorney to Sue for Excessive Expenditures.
1-0917. Contracts Made Prior to Appropriation Prohibited.
1-0918. Payment of Accounts.
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1-0901. FISCAL YEAR OF MUNICIPALITY. The fiscal year of the City of Harwood shall commence on the first day of January of each year and shall terminate on the thirty-first day of December of that same year.
The provisions of North Dakota Century Code § 40-40-03 and all subsequent amendments shall be and are hereby incorporated by reference in this section.
1-0902. PRELIMINARY BUDGET STATEMENT. The City Auditor shall present to the City Council, annually on or before September 10 a
proposed preliminary budget, from which the City Council shall make an itemized statement, known as the preliminary budget statement, showing the amounts of money which, in the opinion of the City Council, will be required for the proper maintenance, expansion, or improvement of the City during its upcoming fiscal year.
The provisions of North Dakota Century Code § 40-40-04 are referenced, but superseded by this section.
1-0903. CONTENTS OF PRELIMINARY BUDGET STATEMENT. The preliminary budget shall include a detailed breakdown of the estimated revenues and appropriations requested for the ensuing year for the general fund, each special revenue fund, and each debt service fund of the City. The revenue and expenditure items for the preceding year and estimates of the revenue and expenditures for the current year shall be included for each fund to assist in determining the estimated revenues and appropriation requested for the ensuing year. The budget shall also include any transfers in or out and the beginning and ending fund balance for each of the funds. The budget shall be prepared on the same basis of accounting
used by the City for its annual financial reports.
The amount paid for salaries may be shown as a single line item expenditure in each fund. There shall be on file with the governing body and open to public inspection a detailed statement showing the names of all persons receiving salaries, the annual amount paid to each person, and the fund charged.
The budget may include an expenditure item for equipment and building replacement, the amount of which may not exceed the total of the anticipated reasonable costs of depreciation for the ensuing year, based on current costs, of all equipment and buildings. Proceeds and disbursements for capital purchases shall be segregated in the capital improvements fund. No expenditure may be paid from the equipment and building of funds segregated into the capital improvements fund except for equipment purchases and/or the
purchase, construction or remodeling of buildings or structures for public use.
The provisions of North Dakota Century Code § 40-40-05 are referenced, but superseded by this section.
1-0904. NOTICE OF PRELIMINARY BUDGET STATEMENT. After the Council has approved the preliminary budget statement, the City Auditor shall give notice that:
1. The preliminary budget is on file in the office of the City Auditor and may be examined by anyone upon request.
2. The Council shall meet no later than October 7 at the time and place specified in the notice as prescribed by subsection 3 for the purpose of adopting the final budget and making the annual tax levy.
3. The Council shall hold a public session at the time and place designated in the notice of hearing, at which any taxpayer may appear and discuss with the Council any item of proposed expenditures or may object to any item or amount.
The notice must contain a statement of the total proposed expenditures for each fund in the preliminary budget, but need not contain any detailed statement of the proposed expenditures.
The notice must be published at least once, not less than six days prior to the budget hearing, in the official city newspaper.
The provisions of North Dakota Century Code § 40-40-06 are referenced, but superseded by this section.
1-0905. HEARING OF PROTESTS AND OBJECTIONS - CHANGES IN PRELIMINARY BUDGET -PREPARATION OF FINAL BUDGET - CONTENTS. The Council shall meet at the time and place specified in the notice and shall hear any and all protests or objections to the items or amounts set forth in the preliminary budget statement. At the hearing, the Council shall make any changes in the items or amounts shown on the preliminary budget statement as it may deem advisable except as limited in this chapter, and shall direct the preparation of the final budget, which must consist of the preliminary budget with the addition of columns showing:
1. The final appropriations for the various expenditure items specified in the preliminary budget statement. The final appropriation of any fund total may not exceed the total amount requested in the preliminary budget.
2. The estimated amount of unencumbered cash on hand at the end of the current year may not include cash or investments of the equipment replacement fund as provided in Section 1-0903.
3. The levy amount determined by subtracting the total resources from the total appropriations and cash reserve for each fund. The Council may increase the levy an additional five percent for delinquent tax collections.
4. The certificate of levy which includes a summary of the amount levied for each fund and the total amount levied.
The provisions of North Dakota Century Code § 40-40-08 are referenced, but superseded by this section.
1-0906. DETERMINATION OF AMOUNT TO BE LEVIED. After completing the final budget on or before October 7, the Council shall proceed to make the annual tax levy in an amount sufficient to meet the expenses for the ensuing year as determined at the budget meeting. In determining the amount required to be levied, the Council first shall ascertain its net current resources by adding the estimated revenue for the ensuing year, other than property taxes, any transfers in, and the estimated fund balance at the end of the current year. Then the Council shall ascertain its appropriation and reserve by adding the final appropriation for the ensuing year, any transfers out, and the cash reserve. The net current resources must be deducted from the appropriation and reserve and the balance shall be considered the amount that is required to be raised by taxation during the ensuing year.
The City Council shall direct an annual certification of mills levied based on the revenue requirements of the proposed budget in its entirety without regard to the specific dedications of mill levies to specific purposes as authorized and provided for in Article III, Section 2 of the Home Rule Charter of the City of Harwood. Total mills levied shall not exceed the total levies authorized by the state constitution and state statutes for cities
under North Dakota Century Code Chapter 57-15, unless authorized by a vote of the City’s electors.
The levy as finally adopted must be approved by a majority vote of the members of the Council and noted in the record of official proceedings.
The provisions of North Dakota Century Code § 40-40-08 are referenced, but superseded by this section.
1-0907. CERTIFICATION OF LEVY. Immediately after the completion of the final budget and the adoption of the annual tax levy by the Council in accordance with the provisions of this chapter, and in no case later than October 10, the City Auditor of the municipality shall send to the County Auditor two certified copies of the levy as adopted and two certified copies of the final budget.
The provisions of North Dakota Century Code § 40-40-10 are referenced, but superseded by this section.
1-0908. COUNTY AUDITOR TO EXTEND TAX LEVY. After the County Auditor has available the data showing the total taxable valuation of a municipality, the Auditor shall calculate the necessary tax rates to produce the sums called for in the final budget. If the Auditor finds that any amount or amounts called for in the levy cannot be produced by a tax rate within the limitation prescribed by the laws of this state in accordance with the Home Rule Charter and the Ordinances of the City of Harwood, the Auditor shall reduce the amount so that it can be produced by a tax rate within legal limitations. The County Auditor shall extend the levy, including the levy for judgments against the municipality, upon the tax lists of the county for the current year against each description of real property and all personal property within the municipality in the same manner and with the same effect as other taxes are extended. The County Auditor shall notify the Council at once of any reductions made in the levy.
The provisions of North Dakota Century Code § 40-40-11 are referenced, but superseded by this section.
1-0909. COUNTY TREASURER TO COLLECT MUNICIPAL TAXES. The County Treasurer shall collect all municipal taxes, together with
the interest and penalties thereon, if any, in the same manner as the general taxes are collected, and shall pay over to the City Auditor, on or before the tenth working day of each calendar month, all taxes so collected during the preceding month, with interest and penalties collected thereon.
The provisions of North Dakota Century Code § 40-40-13 and all subsequent amendments shall be and are hereby incorporated by reference in this section.
1-0910. MUNICIPAL TAXES COLLECTED TO BE CREDITED TO APPROPRIATE FUNDS. The City Auditor shall apportion the amounts received for taxes from the County Treasurer and shall credit each fund with its proportion or share according to the final budget appropriations made by the Council. The County Treasurer, at the time of paying over such funds, shall furnish the City Auditor with a statement of the amount collected for each year separately, the allocation of mill levy taxes collected will be based on the current year budget appropriations; delinquent taxes, penalties and/or interest collected in excess of the budgeted amount will be receipted into the general fund.
The provisions of North Dakota Century Code § 40-40-14 are referenced, but superseded by this section.
1-0911. DURATION OF APPROPRIATIONS. The budget ordinance, as amended, is valid for one fiscal year; unexpended funds will remain in fund equity unless otherwise allocated by Council action. Appropriations for capital improvement, special assessment and or enterprise fund projects spanning multiple fiscal periods shall remain in effect until each such respective project is completed.
The provisions of North Dakota Century Code § 40-40-21 are referenced, but superseded by this section.
1-0912. SUPPLEMENTAL APPROPRIATIONS. In the event at fiscal year-end, revenues exceed expenses, the surplus amount may be deemed available for supplemental appropriation. Supplemental appropriations shall be prioritized, of non-recurring nature and included in the budget amendment process.
1-0913. EMERGENCY APPROPRIATIONS. To meet an emergency public need affecting life, health, property or the public peace, the City Council by adoption of a resolution declaring an emergency may by a majority vote approve an emergency appropriation. Any expenditures and or encumbrances resulting from the emergency declaration must be paid in full no later than the final day of the fiscal year. The Resolution authorizing any emergency expenditure must recite the facts showing the existence of an emergency.
The provisions of North Dakota Century Code § 40-40-18 are referenced, but superseded by this section.
1-0914. REDUCTION IN APPROPRIATIONS. In the event fiscal conditions lead to an unbalanced budget of expenses exceeding revenues, the Council may take action to amend the annual budget appropriation ordinance to reduce appropriations to available resources.
1-0915. EXPENDITURES MADE OR LIABILITIES INCURRED BEYOND APPROPRIATION – JOINT AND SEVERAL LIABILITY OF THE COUNCIL. Except as otherwise provided in Section 1-0913, no municipal expenditure may be made nor liability incurred, and no bill may be paid for any purpose in excess of the appropriation made therefore in the final budget. Expenditures made, liabilities incurred, or warrants issued in excess of the appropriations are a joint and several liability of the members of the governing body who knowingly or negligently authorized the making, incurring, or issuing thereof or who were present when they were authorized and did not vote against authorizing the same.
The provisions of North Dakota Century Code § 40-40-15 are referenced, but superseded by this section.
1-0916. STATE’S ATTORNEY TO SUE FOR EXCESSIVE EXPENDITURES. Upon good and sufficient information laid before him by any taxpayer in the municipality or obtained from any other source, the State's Attorney of the county in which the municipality lies shall bring suit to recover from the members of the governing body, jointly and severally, the amount of expenditures, payments, or warrants knowingly or negligently made in excess of the amount shown in any group of the final budget as amended.
The provisions of North Dakota Century Code § 40-40-16 are referenced, but superseded by this section.
1-0917. CONTRACTS MADE PRIOR TO APPROPRIATION PROHIBITED. Except as otherwise provided in this chapter or in North Dakota Century Code § 40-05-05, no contract shall be made by the Harwood City Council, and no expense shall be incurred by any officers or departments of the City unless there shall have been a previous appropriation providing for such expense. The Council may enter into contracts with persons, associations, corporations, or limited liability companies for the furnishing of water for fire protection to the municipality, and in case such contract extends over a term of years, it shall be unnecessary that a previous appropriation shall have been made except to cover the amounts payable under the contract for the first year thereof. Such a contract shall not be made for a longer period than twenty years.
Contracts for capital leases, services and or purchases shall acknowledge the nature of the appropriation with either a non-appropriations clause or termination in service upon receipt of a statement of non-appropriation.
The provisions of North Dakota Century Code § 40-40-20 are referenced, but superseded by this section.
1-0918. PAYMENT OF ACCOUNTS. The authority to encumber the City is granted in the appropriations process, the disbursement of public monies in exchange for goods and services shall be conducted in an accurate, timely manner and reflected in public record.
Each request for payment shall be adequately documented with vendor information, purchase description, quantities and department approval of an appropriated expenditure account. Control numbers will be used on all disbursements; pre numbered checks, chronologically assigned claim forms and electronic fund transfer numbers.
The first Council meeting of each month shall include a record of all disbursements acknowledged and acted upon by council motion. The record of official proceedings shall summarize total disbursements by fund.
Recurrent Payments: Utilities, contracts, premiums, payroll, payroll related expenses, local vendor incidentals and reimbursements within appropriation limits shall be disbursed in a timely manner. Recurrent payments shall be disbursed on the authority of the appropriations ordinance with approval by the applicable City officer and prior to ratification of the City Council.
Contracts, Progressive Payments and Capital Expenditures: Expenditures that are significant in nature, specifically appropriated and greater than 5% of a departmental annual appropriation shall be presented to Council for authorization prior to purchase, subsequent payments may be made as requested when substantiated by prior council action.
Unappropriated or Emergency Expenditures: Cash disbursements to meet a public need affecting life, health, property or the public peace for materials essential to non-appropriated purchases shall be approved by the emergency appropriations procedure.
The provisions of North Dakota Century Code § 40-01-13 are referenced, but superseded by this Section.
