Chapter VII - Taxation & Finances

  • Sec. 7.01. Council to Control Finances. The Council shall have full authority over the financial affairs of the City, and shall provide for the collection of all revenues and other assets, the auditing and settlement of accounts, and the safekeeping and disbursements of public monies, and in the exercise of a sound discretion, shall make appropriations for the required payment of all determined liabilities and necessary expenses.
  • Sec. 7.02. Fiscal Year. The fiscal year of the City shall be the calendar year.
  • Sec. 7.03. System of Taxation. Subject to the State Constitution, and except as forbidden by it or by state legislation, the Council shall have full power to provide by ordinance for a system of local taxation. In the taxation of real and personal property as such, the City shall conform as fully as possible to the general State Law as to the assessment of such property and the collection of such taxes.
  • Sec. 7.04. Preparation of the Annual Budget. The City Manager shall prepare the annual budget. The budget shall include all the finds of the City. The estimates of revenues and expenditures for each fund budgeted shall be shown for each department, division or function of the City. The budget must show comparative figures for the current fiscal year, actual and estimated, and actual figures for the 2 preceding fiscal years. The budget shall contain sufficient detail to be readily understood. The estimates shall be submitted to the Council no later than its first regular meeting in September and shall be made public. The City Manager may submit with the estimates such explanatory statement or statements as may be deemed necessary.
    • Section 7.04 thru Section 7.14 - Ordinance 97-14
    • Section 7.07 – Ordinance 99-24
    • Section 7.04; 7.05 - Ordinance 09-09
    • Section 7.06 - Ordinance 09-18
    • Section 7.05 - Ordinance 12-22
    • Section 7.07 - Ordinance - 12-23
    • Section 7.08 - Ordinance - 12-24
  • Sec. 7.05. Passage of the Budget. The Council must, by a budget resolution, adopt the budget at the time required by law. The budget is the principal item of business at regular Council meetings at the times required by law and at subsequent meetings until the budget is adopted. The consideration of the budget by the Council must be conducted in a manner to give citizens an opportunity to be heard. The City Manager must review the budget in the detail requested by the Council. The adopted budget must set forth in detail the financial plan of the City for the ensuing fiscal year. The sum appropriated by the budget may not exceed the estimated revenues together with other available funds on hand to fund the expenditures. The Council must levy sufficient taxes to provide adequate resources for the budgeted expenditures in the next ensuing fiscal year. The tax levy resolution must be certified to the county auditor in accordance with law. The sums fixed in the budget resolution are appropriated for the purposes identified in the budget resolution.
  • Sec. 7.06. Enforcement of the Budget. The City Manager shall enforce the budget in accordance with the City Council budget resolutions and other financial policies of the City. No officer or employee of the City shall place any order or make any purchase except for a purpose authorized in the budget resolution and for the amount authorized in the budget resolution. Any obligation incurred by any officer or City employee for any purpose not authorized in the budget resolution or for any amount in excess of the amount authorized shall be a personal obligation upon the person incurring the expenditure.
  • Sec. 7.07. Alterations in the Budget. The Council may not increase the amounts appropriated in the budget resolution beyond the estimated revenues, except to the extent that realized revenues exceed the estimated revenues. The Council may by resolution reduce an appropriation in the budget. The Council may by resolution authorize the transfer of sums from unencumbered appropriations in the budget to other purposes.
    • Section 7.04 thru Section 7.14 - Ordinance 97-14
    • Section 7.09 subd. 2 – Ordinance 01-16
    • Section 7.09 subd. 2 – Ordinance 04-11
    • Section 7.09 subd. 1; 7.10 subd. 1 - Ordinance 09-09
    • Section 7.09 Subd. 1 - Ordinance 12-25
  • Sec. 7.09. Disbursements: How Made.
    • Subd. 1. All disbursements shall be made only upon the order of the City Manager or designees, who have been duly authorized by a resolution or motion of the Council, in accordance with federal or state law, ordinance, or City Council resolutions and regulations. The City Treasurer shall issue no check upon any city funds except upon such order. In the discretion of the Council the order and check may be a single instrument. No claim against the City shall be allowed unless accompanied by either an itemized bill, or a payroll, or time sheet, each of which shall be approved and signed by the appropriate Department Head and the Finance Director who vouches for the correctness and reasonableness thereof. The Council may by ordinance or resolution, make additional regulations for the safekeeping and disbursement of the City funds and shall annually adopt a resolution that authorizes an appropriate expenditure amount by designees. The Council may provide for the regular payment without specific individual authorization by the Council of salaries and wages of regular employees, laborers, and fixed charges which have previously duly and regularly incurred.
      • Section 7.04 thru Section 7.14 - Ordinance 97-14
      • Section 7.10 Subd. 1 – Ordinance 99-25
      • Section 7.10 - Ordinance 12-26
  • Section 7.10. Fund to be Kept. There must be maintained in the city treasury a general fund and the funds required by law, ordinance, the budget resolution or other resolution.
    • Section 7.04 thru Section 7.14 - Ordinance 97-14
    • Section 7.04 thru Section 7.14 - Ordinance 97-14
  • Sec. 7.11. Accounts and Reports. The City Manager shall see to it that the Finance Director shall submit such reports as will be necessary in order to keep the Council fully informed of the financial conditions of the City. Once each year within 180 days after the close of the fiscal year, the Finance Director shall submit to the Council a financial report covering the City's operations during the preceding fiscal year. The report shall contain audited financial statements and disclosures which present the City's financial position and the results of the City operations in conformance with generally accepted accounting principals.
  • Sec. 7.12. City Indebtedness. Except as provided in Sec. 7.13 and 7.14, debt issued pursuant to Minnesota Statues Chapter 429, Capital Note debt, revenue bonds or debt for the construction of public facilities that are necessary for the essential functions of the City, no obligations shall be issued to pay current expenses but the Council may, when authorized to do so by a majority of the electors of the City voting thereon at a general or special election, issue and sell obligations for any other municipal purpose in accordance with law and within the limits prescribed by law.
  • Sec. 7.13. Tax Anticipation Certificates. At any time after January 1, following the making of an annual tax levy, the Council may issue certificates of indebtedness in anticipation of the collection of taxes levied for any fund and not yet collected. The total amount of certificates issued against any fund for any year with interest thereon until maturity shall not exceed 50% of the total current taxes for the fund uncollected at the time of issuance plus the cash on hand in the fund. Such certificates shall be issued on such terms and conditions as the Council may determine but they shall become due and payable not later than the last day of the year of their issuance. The proceeds of the tax levied for the fund against which tax anticipation certificates are issued and the full faith and credit of the City shall be irrevocably pledged for the redemption of the certificates in the order of their issuance against the fund.
  • Sec. 7.14. Emergency Debt Certificates. If in any year the receipts from taxes or other sources should from some unforeseen cause become insufficient for the ordinary expenses of the City; or if any calamity or other public emergency should subject the City to the necessity of making extra-ordinary expenditures, the Council may by ordinance, issue and sell certificates. A tax sufficient to pay principal and interest on such certificates with the margin required by law shall be levied as required by law. The ordinance authorizing an issue of such emergency debt certificates shall state the nature of the emergency and be approved by at least 5 members of the Council. It may be passed as an emergency ordinance.