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CHA 11/06/2017 TO: Charter Commission Members FROM: Deb Skogen, City Clerk and Staff Liaison Date: October 23, 2017 Re: Charter Commission Meeting of November 6, 2017 This is a reminder to you that the next Charter Commission meeting will be held on Monday, November 6th at 7:00 p.m. in Conference Room A on the Upper Level. In order to ensure a quorum, please remember, the Charter Commission policy requires each member to call or e-mail staff before 10:00 a.m. Monday, November 6th. Please contact me by phone at (763) 572-3523 or e-mail me at deb.skogen@fridleymn.gov about your attendance. If we do not have a quorum by 10:00 am, I will send out an e-mail to see if additional members will attend. If by Noon there will not be a quorum, I will send out a follow-up e-mail to all members of cancellation of the meeting and post a cancellation notice on the door for those Commissioners who did not contact me, but came to the meeting. The Commission will review the draft ordinance prepared for recommendation to City Council suggesting changes. Please review the proposed ordinance prior to the meeting and come prepared for discussion and questions. In addition to the underlined and strike-out version, I have also enclosed a clean copy of what Chapter 7 would look like if the ordinance was adopted by the City Council. I have enclosed a copy of Chapter 8 for discussion of the meeting. In addition, a calendar of City Council meeting dates is enclosed for your review for scheduling your 2018 meetings. If you have any other questions or concerns pertaining to this meeting, please contact me. If you have any questions about proposed changes prepared by Shelly Peterson, Finance Director, you may contact her at 763-572-3520 or shelly.peterson@fridleymn.gov. CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, NOVEMBER 6, 2017 7:00 P.M. LOCATION: FRIDLEY MUNICIPAL CENTER CONFERENCE ROOM A UPPER LEVEL 1.CALL TO ORDER: 2.ROLL CALL: 3. APPROVAL OF AGENDA: Motion approving the November 6, 2017 meeting agenda 4. APPROVAL OF MINUTES Motion approving the October 2, 2017 meeting minutes 5. ADMINISTRATIVE MATTERS A. 2018 Meeting Schedule 6. OLD BUSINESS A. Review of Proposed Draft Ordinance Chapter 7 7. NEW BUSINESS A. Discussion of Chapter 8 8. FUTURE MEETING TOPICS/COMMUNICATIONS A. 9. ADJOURNMENT Motion to adjourn the meeting Next Regular Commission Meeting Date: January __, 2018 CITY OF FRIDLEY CHARTER COMMISSION MEETING OCTOBER 2, 2017 CALL TO ORDER: Chairperson Ostwald called the Charter Commission meeting to order at 7:00 p.m. ROLL CALL: Members Present: Commissioners Gary Braam, Don Findell, Manuel Granroos, Richard Johnston, Ted Kranz, Rick Nelson, Dave Ostwald, Barb Reiland, Valerie Rolstad, and Avonna Starck Members Absent: Commissioners Zach Crandall, Bruce Nelson, Pam Reynolds, Cindy Soule and Richard Walch Others Present: Roberta Collins, Staff Liaison Shelly Peterson, Finance Director APPROVAL OF AGENDA Commissioner Rolstad MOVED and Commissioner Reiland seconded a motion approving the meeting agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. APPROVAL OF MINUTES Commissioner Braam MOVED and Commissioner Rolstad seconded a motion approving the Charter Commission meeting minutes of September 5, 2017 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. ADMINISTRATIVE MATTERS A.Order from the judge was received by the District Judge for the reappointments of Commissioners Richard Johnston and Richard Walch. The terms expire September 9, 2021. Commissioner Johnston took his Oath and Acceptance. DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 2 OLD BUSINESS DISCUSSION OF CHAPTER 7 Chairperson Ostwald suggested the Commission review the draft of Chapter 7 made upon recommendation of the Finance Director. Section 7.02.3.A. Recycling Fees Finance Director Peterson said recycling fees were not mandated by the state when originally created. The City chose to have a centralized service and bill for those services as part of the utility bill. The City felt recycling should be reclassified as a utility type fee because the City goes through the same process when determining what to collect for the rates as it does for water and sewer. When the City renegotiates the recycling contract, the charter restriction limits the ability of increasing the fee. For example, if fuel prices go up, the City cannot increase or pass on that cost. As the City does not have the funds to pay for the increases, the funds are taken from another fund to support the increase. She said the charter definition states a fee or tax as affecting all property owners, however, the recycling fee does not affect all properties. Recycling is only charged to residential properties with twelve (12) units or less. So it truly does not meet the definition of a tax that is charged to every property owner. Staff recommended recycling fee be redefined as a utility like water and sewer. She said the Commission should decide if it should be redefined and understood it was controversial. However, in light of the levy restrictions and the change in the law that recycling is now mandatory, it was appropriate to revisit the issue at this time. Commissioner Reiland asked if the fees could be increased at any time. Ms. Peterson said the City signs a multi-year contract that provides an inflationary calculation that can increase the recycling fee rate, and that rate is not the same rate as the charter restriction. She said the City is in the process of going out for bids for recycling as the contract is nearing its term. Recently organics collection was added to the city code. While it is not mandatory, legislation may change and it may become mandated at some date in the future. There was further discussion on what organics were and general questions on where the City was with that initiative. The Commissioners had a brief discussion about Section 7.02.3.C and it was determined the redlined sentence would not be redlined and the word described would be changed to referenced in Section 7.02.3.B above. Commissioner Kranz asked Ms. Peterson to explain why the charter language was out of date. Ms. Peterson said the charter is so specific that when a law changes, even something as simple as a date, the Charter becomes out dated. She reviewed many other city charters and looked for consistencies or patterns. In addition she reviewed the League of Minnesota Cities (LMC) web site and policies. Based on that information, she made changes that were easier to understand DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 3 and removed some of the specifics and referencedstate law or state auditor guidelines. Ms. Peterson said if everyone agreed with this section they could move to the next section. Commissioner Reiland MOVED and Commissioner Starck seconded a motion moving recycling fees from section A to section B, referencing state law and adding one sentence to section C as referenced while removing the strikeouts. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.04 Preparation of the Budget Ms. Peterson said the LMC has specific guidelines on what should be included in a budget document and references specific statutes. Staff recommended this section be simplified by acknowledging the city manager should have discretion on what to provide to the City Council regarding the different funds. The City is different than the private sector as it has many funds that all have special uses requiring special reporting and accounting. This section outlines the general fund and special revenue funds where reporting requirements are similar. It still identifies the required columns like prior year activity and current year projections. It also specifies the broad categories of expenditure types and organizations units (rather than departments which are very specific). This would provide the city manager more flexibility on how the budget is presented to the city council. Ms. Peterson said there were other funds where that format would not work. An example would be a business type fund, (i.e., utility fund) where you do not record capital as an expense, but rather record an annual depreciation figure. Additional language was added to this section to differentiate between the different types of funds. Ms. Peterson said Section 2 was very specific and did not appear in other charters reviewed. What discovered in the current chapter was that when you have a small department and you are required to list specific employee information in the budget document, you can pretty much determine who that person is and what kind of health insurance or benefits they have or other private information which could be a violation of HIPPA and other regulations. Since we have that information and know what is public or private, it is better to list broad categories rather positions. The recommendation would be to omit this section. Commissioner Braam wondered if it was still prepared with specific information by the finance director and provided to the city manager and if there was a question during an audit if it would be available. Ms. Peterson said yes, the City had a large budget document that would have this information, however, the city council preferred to see more of a summary budget. Commissioner Rolstad MOVED and Commissioner Kranz seconded a motion approving the recommended changes to Section 7.04 as provided. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 4 Section 7.06 Enforcement of the Budget Ms. Peterson said after reviewing other charters and looking at what has worked well for the City for enforcing the budget, staff recommends simplifying this section to reference the provisions of the budget and financial policies. The current charter also states that anyone that purchases something outside of the budget could be liable for the purchase and is very specific. If needs change during the year, the proposed changes provide more flexibility but still require employees stay within their allotted budget. The Commissioners discussed the last sentence regarding excess amount wondering whether the word shall or will should be used in the last sentence. Ms. Peterson stated that the reason you over the budget. After further discussion it was agreed the word may be a reason it is not a part of the appropriate budget, but you cannot foresee an emergency. an Commissioner Rolstad MOVED and Commissioner Johnston seconded a motion approving UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.07 Alterations in the Budget. Ms. Peterson said she tried to make changes in this section to be consistent with the section above referring to budget resolution and removed language that did not change the content of the section. Chairperson Ostwald asked why reduced salaries was specifically being removed. Ms. Peterson said the council adopts a revised budget so she tried to keep this section more general because if the budget needs to be revised for any purpose, it has to go to the city council by resolution. After some discussion the Commissioners agreed, if reducing the budget, to the following languagethe budget resolution or authorize the transfer of sums from the Commissioner Kranz MOVED and Commissioner Reiland seconded a motion approving the proposed language just read (as shown in above paragraph). UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.10 Tax Settlement with County DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 5 Ms. Peterson said after reviewing other charters staff found our charter was very detailed, which other charters were not. She was recommending deleting the language, but the Commissioners could decide whether to keep it in, change the language or remove it. She said the County followed their own statutes and regulations and they know when they have to provide the cities with our tax levies. She felt the City could not make a demand on the County to turn funds over. Section 7.11 Disbursements How Made Ms. Peterson said it identifies a process that has now become more automated and staff felt this section could be deleted. She said in the past when disbursements were made, payments would be late due to certain regulations or approvals needing to be met before payments could be made. This section is no longer included in other charters reviewed and with technology things are changing . Commissioner Findell wondered if there was still a paper trail for these processes. Ms. Peterson said yes, laws are very specific as to how Cites can process payments and our auditor ensures we adhere to those requirements. She said there are internal controls that have been created to address the new payment processing technology. Commissioner Rolstad MOVED and Commissioner seconded a motion approving the deletion of Sections 7.10 and 7.11 and renumbering the following sections. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.12 Funds to be kept Ms. Peterson said this section should be updated to match the state auditor chart of account guidelines and Generally Accepted Accounting Procedures (GAAP) by removing the fund names recommendation is to create a new first paragraph and delete the remaining language in this section. The changes remove any specifically defined account which allow the City to adjust as there may be new accounting standards or funds. would be removed in the second line of the paragraph. Commissioner Rolstad MOVED and Commissioner Reiland seconded a motion approving the changes made to section 7.12 by re-numbering to Section 7.10, creating a new paragraph and deleting the remainder of the language. Section 7.13 Receipts to go to City Treasurer DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 6 Ms. Peterson said this section is outdated and the recommendation is to delete this section as it is similar to accounts payable but is the receipting process. Commissioner Rolstad MOVED and Commissioner ____ seconded a motion approving the deletion of this section and renumbering the reminder of the chapter. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.14 Accounts and Reports Ms. Peterson said the section should be simplified and updated. The upper sections talks about how the City needs to follow the rules and that the city manager shall submit the report rather than stating how often or what to report. It is left to the discretion of the city manager and requires the City follow the law at the end of the year when the audit is finalized. Commissioner Findell wondered if there needed to be a timeline of when reports are due. Commissioner Rolstad felt there should be no timeline and that it be open ended as it is written in state law when those reports are due. Commissioner Rolstad MOVED and Commissioner Braam seconded a motion approving the remainder of the section. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.15. Bonded Debt and Debt Limit Ms. Peterson said bonding is clearly defined in Minnesota statute and each bond has unique requirements. Bonds are an expensive method of borrowing money and there are other options the City should be able to utilize such as certificates and other bank notes that are less expensive. The City should be able to take advantage of all types of indebtedness legally available rather than the limitations of this section. In reviewing other charters, they called it indebtedness and referred to state law. There is another tool on the LMC website explaining the types of debt available to cities and rules that apply. Not only is there a rule on how much we can borrow and how we calculate the limit, every bond has very specific requirements. She simplified the language to reference the state laws and took out the limit we set upon ourselves which was less restrictive than state law. the laws of the State of DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 7 end the sentence at its Commissioner Rolstad MOVED and Commissioner Johnston seconded a motion approving the changes recommended by staff to Section 7.15 and as provided in the paragraph above. Commissioner Findell wondered if there was an area in the charter or state statute that describes how special assessments are paid back as that seems to be language being deleted. Ms. Peterson said Chapter 429 provides for special assessments and there is a special assessment policy that would provide specific information on how the assessment is calculated and paid back. The interest collected goes go back into the street construction fund. If it was a bonded special assessment, it would be defined during the bonding process as to who will be assessed, how the funds are managed and the county would then administer the annual collection from those assessed. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.16. Form and Repayment of Bonds Ms. Peterson said this was not found in other rules or charters and that is because the County establishes the amount collected for the debt levy and state law identifies the other specifics listed in this section which are all dependent on the type of borrowing. Commissioner Rolstad MOVED and Commissioner Starck seconded a motion approving the recommendation to delete the language and continue to renumber the chapter. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.17. Debt and Tax Anticipation Certificates/Section 7.18 Bonds outside the Debt Limit Ms. Peterson said she tried to make the charter more consistent with other charters by simplifying, amending and deleting unnecessary language. Tax Anticipation and Emergency Debt address two different types of borrowing, both used to address emergencies. The City receives two installments from the County each year for property taxes. Tax Anticipation Certificates are a short-term borrowing to bridge the gap between these two installments. Commissioner Rolstad MOVED and Commissioner Starck seconded a motion approving the recommended changes to section 7.17 and 7.18 and renumbering the remainder of the charter. DRAFT CHARTER COMMISSION MEETING OF OCTOBER 2, 2017 PAGE 8 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Section 7.14 Emergency Debt Certificates (NEW SECTION) Ms. Peterson explained that this emergency type debt allows the City to borrow funds in the event of a natural disaster or unforeseen emergency. was. Commissioner Rolstad MOVED and Commissioner Granroos seconded a motion approving the recommended new language as Section 7.14 and ch UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Chairperson Ostwald directed staff to prepare a draft ordinance of the changes for the next meeting. The Commissioners wondered if the language had been reviewed by an attorney. Ms. Peterson said the Citys bond counsel has reviewed our chapter and recommends the revisions. She said she would provide the latest revisions to the city attorney and bond counsel for review. NEW BUSINESS There was no new business. FUTURE MEETING TOPICS/COMMUNICATIONS Final review of draft ordinance to Chapter 7 of the Charter Discussion of Chapter 8 ADJOURNMENT: Commissioner Kranz MOVED and Commissioner Braam seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:45 P.M. Respectfully submitted, Debra A. Skogen, MMC, City Clerk/Staff Liaison Commissioner Manuel Granroos, Secretary DRAFT DRAFTCityofFridleyCalendar 2018 IMPORTANTDATES JanuaryFebruary JANUARYFEBRUARY 1 bĻǞ—ĻğƩγƭ5ğǤ 12CityCouncilMeeting SMTWTFSSMTWTFS 8CityCouncilMeeting19 tƩĻƭźķĻƓƷƭγ5ğǤ 123456123 15 ağƩƷźƓ\[ǒƷŷĻƩYźƓŭWƩ͵5ğǤ 26ConferenceMeeting 7891011121345678910 ConferenceMeetingCityCouncilMeeting 22 1415161718192011121314151617 CityCouncilMeeting 2122232425262718192021222324 2829303125262728 MarchApril MARCHAPRIL 12CityCouncilMeeting9CityCouncilMeeting SMTWTFSSMTWTFS 19ConferenceMeeting23CityCouncilMeeting 1231234567 26CityCouncilMeeting 45678910891011121314 1112131415161715161718192021 1819202122232422232425262728 252627282930312930 MayJune MAYJUNE 14CityCouncilMeeting11CityCouncilMeeting SMTWTFSSMTWTFS 28 aĻƒƚƩźğƌ5ğǤ 19ConferenceMeeting 1234512 29CityCouncilMeeting25CityCouncilMeeting 67891011123456789 1314151617181910111213141516 2021222324252617181920212223 272829303124252627282930 JulyAugust JULYAUGUST 4 LƓķĻƦĻƓķĻƓĭĻ5ğǤ 13CityCouncilMeeting SMTWTFSSMTWTFS 9CityCouncilMeeting27CityCouncilMeeting 12345671234 23CityCouncilMeeting 891011121314567891011 1516171819202112131415161718 2223242526272819202122232425 293031262728293031 SeptemberOctober SEPTEMBEROCTOBER 3\[ğĬƚƩ5ğǤ 8CityCouncilMeeting SMTWTFSSMTWTFS 10ConferenceMeeting15ConferenceMeeting 1123456 CityCouncilMeeting22CityCouncilMeeting 234567878910111213 24CityCouncilMeeting 910111213141514151617181920 1617181920212221222324252627 2324252627282928293031 30 NovemberDecember NOVEMBERDECEMBER 12ĻƷĻƩğƓƭ5ğǤhƭ͵10ConerenceMeeting SMTWTFSSMTWTFS γΛĬΜ f 13CityCouncilMeetingCityCouncilMeeting 1231 22ŷğƓƉƭŭźǝźƓŭIƚƌźķğǤ 17CityCouncilMeeting 456789102345678 23/źƷǤIƚƌźķğǤ 24/źƷǤIƚƌźķğǤ 111213141516179101112131415 26ConferenceMeeting25/ŷƩźƭƷƒğƭ 1819202122232416171819202122 CityCouncilMeeting 25262728293023242526272829 3031 HolidayCityCouncilMeetingCouncilConferenceMeeting 10/23/2017 ORDINANCE NO. ____ AN ORDINANCE AMENDING FRIDLEY CITY CHARTER CHAPTER 7. TAXATION AND FINANCES The Fridley City Charter has completed its review of Chapter 7 and has recommended an amendment of the City Charter by Ordinance to the City Council on ______, 2017. The Fridley City Council hereby finds after review, examination and recommendation of the Charter Commission that Fridley City Charter Chapter 7 related to taxation and finances should be hereby amended and ordains as follows: FRIDLEY CITY CHARTER CHAPTER 7. TAXATION AND FINANCES. SECTION 1: THAT SECTION 7.02.3 BE HEREBY AMENDED AS FOLLOWS: Section 7.02. POWER OF TAXATION 3.Any other fees created, or increased beyond the limits set forth in subsection 1, shall require voter approval as stipulated in subsection 2. A.For the purposes of this subsection, "fees" includes sales and use taxes, recycling fees, gas and electric franchise fees and any other fee that produces a tax burden or direct financial obligation for all property owners and/or residents of Fridley. (Ref Ord 1152, 1244) B.For the purposes of this subsection, the term "fees" does not include: utility charges, recycling fees, Parks and Recreation Department participation fees, charges for photo- copying, sales of municipal liquor store products, or civil and criminal fines and other charges collected in cases of restitution or violation of law or contract. The term "fees" also does not include rental housing fees, building permit fees, liquor license fees, the extension or transfer of cable television service authority to additional service providers for which fees are already being charged, fees for the operation of junk yards, annual license fees for the operation of pawn shops and other regulated business, and any other charge for services, including health and safety related Code enforcement, and other goods, services or materials routinely provided by the City to its citizens or other members of the public which, by law, must be limited to the actual cost of the service being provided. The term "fees" shall not include any special assessments made under Minnesota state law. Statutes Section 429. (Ref Ord 1152, 1244) C.All fees and other charges referenced in section B above shall be designed to cover the cost of the service and anticipated future costs. For the purposes of this subsection, "fee increase" includes a new tax or fee, a monetary increase in an existing tax or fee, a tax or fee rate increase, an expansion in the legal definition of a tax or fee base, and an extension of an expiring tax or fee. (Ref Ord 1152) Ordinance No. ____ Page 2 SECTION II: THAT SECTION 7.04. PREPARATION OF ANNUAL BUDGET BE HEREBY AMENDED AS FOLLOWS: Section 7.04. PREPARATION OF ANNUAL BUDGET 1.The City Manager shall prepare the estimates for the annual budget. The budget shall include all funds identified by the City Manager as requiring annual budget estimates. The budgetwhich shall include any estimated deficit/surplus for the current year. The budget shall contain sufficient detail to be readily understood and contain explanatory statements as deemed necessary. The estimates of revenues and expenditures for general and special revenue funds shall be by organizational unit and include comparative figures for the current fiscal year and actual figures for the two preceding fiscal years. submitted by each department to the City Manager. Each Expenditure estimates shall be divided into three (3) major subdivisions as follows: A.Salaries and Wages, B.Ordinary Expenses, C.Capital Outlay. In funds other than general and special revenue, the proposed expenditures shall be presented in an understandable manner according to the discretion of the City Manager. 2.Salary detail shall show a list of all salaried officers and positions with salary allowance and number of persons holding each. Wages shall be broken down in sufficient detail to justify the request. Ordinary expenses shall be broken down into such detail as the City Manager shall direct. Capital Outlay shall be itemized as to items and amounts. (Ref. Ord. 625) In parallel columns shall be added the amounts expended under similar headings for the two (2) preceding fiscal years, and, as far as practicable, the amounts expended and estimated for expenditure during the current year. In addition to estimates of expenditures, the City Manager shall prepare a detailed statement of revenues collected for the two (2) preceding completed fiscal years with amounts estimated to be collected for the current fiscal year, and an estimate of revenues for the ensuing fiscal year. The estimates shall be submitted to the Council at its last regular monthly meeting in August and shall be published twice in summary in the official Publication prior to November 15. (Ref. Ord. 625, Ord. 946) SECTION III: THAT SECTION 7.06 ENFORCEMENT OF THE BUDGET BE HEREBY AMENDED AS FOLLOWS: Section 7.06. ENFORCEMENT OF THE BUDGET. It shall be the duty of the City Manager to enforce strictly the provisions of the budget in accordance with the City Council budget resolution and other financial policies of the City. The City Manager shall not approve any order upon the City Treasurer for any expenditure unless an appropriation has been made in the budget, nor for any expenditure covered by the budget unless there is sufficient Ordinance No. ____ Page 3 unencumbered balance left after deducting the total past expenditures and the sum of all outstanding orders and encumbrances. No officer or employee of the City shall place any orders or make any purchases except for the purposes and to the amounts authorized in the budget resolution. Any obligation incurred by any person in the employ of the City an officer or City employee for any purpose not authorized in the budget resolution or for any amount in excess of the amount therein authorized shall appropriated in the budget resolution or in excess of available moneys in any fund of the City may be considered a personal obligation upon the person incurring the expenditure. (Ref. Ord. 857) SECTION IV: THAT SECTION 7.07. ALTERATIONS IN THE BUDGET BE HEREBY AMENDED AS FOLLOWS: Section 7.07. ALTERATIONS IN THE BUDGET. After the budget shall have has been duly adopted, the Council shall not have power to increase the amounts therein fixed in the budget resolution, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event, not beyond such actual receipts. The sums fixed in the budget shall be and become appropriated at the beginning of the fiscal year for the several purposes named therein, and no other. The Council may at any time, by resolution passed by a vote of at least four (4) members of the Council, reduce salaries or the sums appropriated for any purpose by the budget resolution, or by vote of at least four (4) members of the Council authorize the transfer of sums from the unexpended balances of the budget to other purposes. (Ref. Ord. 946) SECTION V. THAT SECTIONS 7.10. TAX SETTLEMENT WITH COUNTY AND 7.11. DISBURSEMENTS HOW MADE BE HEREBY REPEALED IN THEIR ENTIRETY AS FOLLOWS: Section 7.10. TAX SETTLEMENT WITH COUNTY. The City Treasurer shall see to it that all moneys in the county treasury belonging to the City are promptly turned over to the City according to law. Section 7.11. DISBURSEMENTS, HOW MADE. All disbursements shall be made only upon the order of the City Manager or designee, duly authorized by a resolution or motion of the Council, and every such order shall specify the purpose for which the disbursement is made, and indicate the fund out of which it is to be paid. Each such order shall be directed to the Treasurer, and the latter shall issue a check payable to the order of the person in whose favor the order was drawn. The 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 responsible City officer who vouches for the correctness and reasonableness thereof. The Council may by ordinance make additional regulations for the safekeeping and disbursement of the City's funds. The Council may by resolution or motion provide for the regular payment without specific individual authorization by the Council of Ordinance No. ____ Page 4 salaries and wages of regular employees, laborers, and fixed charges which have been previously duly and regularly incurred. SECTION VI: THAT SECTION 7.12. FUNDS BE KEPT BE HEREBY AMENDED AS FOLLOWS: Section 7.12 10. FUNDS TO BE KEPT. There shall be maintained by the Finance Director a classification of funds which shall provide for a general fund and funds required by law, ordinance, or resolution and meet generally accepted accounting standards and procedures. The Council may, by resolution, make interfund loans where permitted by law except from funds held by the City as a trustee or custodian or in the capacity of an agent. in the City Treasury the following funds: A. A general fund for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all money not provided herein or by statute to be paid into any other fund. B. A debt service fund, into which shall be paid all receipts from taxes or other sources for the payment of principal and interest of all obligations issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. Out of this fund shall be paid the principal and interest of such obligations when due. Any surplus in such fund not needed immediately for debt service may be invested under the direction of the Council in such securities as are authorized by statute for the investment of such funds and such investments may be liquidated at any time. C. A bond fund, into which shall be paid and disbursed the proceeds of all bonds issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. A separate bond account shall be kept for each issue of such bonds. D.A special assessment fund, which shall be used to finance local improvements that are to be paid for, in whole or in part, from special assessments against benefited property. There shall be paid into this fund: (1) collections of special assessments, with interest, levied against benefited property; (2) proceeds of bonds or certificates of indebtedness sold by the City in anticipation of assessment collections and the proceeds of interfund loans; (3) amounts from other City funds representing either (a) apportionments of costs against the City at large, (b) benefit assessments against City property, or (c) appropriations to maintain the integrity of the fund. There shall be paid out of this fund: (1) all expenses and costs of the improvement projects that are financed through the fund; (2) the redemption of all special assessment fund bonds and certificates of indebtedness, with interest, at or before maturity, and any interfund loans; (3) transfers to the general fund of any unencumbered surplus of the fund, in the discretion of the Council; and (4) abatements of assessments and refunds of receipts in error. The Council shall maintain the integrity of this fund by appropriations from tax funds if necessary, and in addition may by ordinance create and maintain in the fund a cash reserve sufficient for working capital purposes. In order to anticipate the collection of Ordinance No. ____ Page 5 special assessments the Council may by a majority vote issue and sell bonds and certificates of indebtedness, pledging the full faith and credit of the City, or pledging only special assessments, in such amounts and maturities as it may determine, regardless of the provisions of Section 7.16 of this Chapter; provided that the aggregate amount of such bonds and certificates outstanding at any time shall not exceed the sum of the following; (1) all assessments levied and uncollected; (2) assessable cost of work in progress; and (3) the cash reserve for working capital as previously determined by ordinance. In order that the fund may be administered on a self-sustaining basis, all improvement projects financed through it shall upon completion be certified by the City Manager as to total cost, which shall thereupon be apportioned by the Council either as assessments against benefited property or as amounts due from other City funds. Amounts apportioned against other City funds shall be due not later than the dates of adoption of the corresponding assessment rolls, shall be charged interest as in the case of assessments and shall be paid into the fund, with any interest due, not later than one (1) year after the due dates. E. A public utility fund into which shall be paid all money derived from the sale of bonds issued on account of any municipally owned utility and all money derived from the sale of utility services, and from the sale of any property acquired for or used in connection with any such utility. There shall be paid out of this fund the cost of the purchase, construction, operation, maintenance and repair of such utility, including the principal of and interest upon obligations which have been or shall be issued on its account. Separate accounts within the public utility fund shall be kept for all utilities which are operated separately. F. In addition to the foregoing funds, there may be maintained in the City Treasury, whenever the Council deems it advisable, the following funds: (1) A working capital or revolving fund, for financing self-sustaining activities not accounted for through other funds. (2)A trust and agency fund, for the care and disbursement of money received and held by the City as trustee or custodian or in the capacity of an agent for individuals or other governmental units. (3) Such other funds as may be required by statute or ordinance. In lieu of establishing any of the three (3) foregoing types of funds, Subsections 1, 2, and 3, the Council may provide for the recording of operations or activities for which the use of such funds night be suitable through the maintenance of separate accounts in any appropriate fund already established. The Council shall have full power to make by duly adopted ordinance such interfund loans, except from funds held under Subsection 2 hereof, as it may deem necessary and appropriate from time to time. SECTION VII: THAT SECTION 7.13 RECEIPTS TO GO TO CITY TREASURER BE HEREBY REPEALED IN ITS ENTIRETY AS FOLLOWS: Section 7.13. RECEIPTS TO GO TO CITY TREASURER. All receipts of money belonging to the City, or any branch thereof, excepting only those funds Ordinance No. ____ Page 6 collected by the County Treasurer, shall be paid to the City Treasurer by the person authorized to receive the same. All such moneys, and also all moneys received upon tax settlements from the County Treasurer, shall be deposited as soon as possible in a bank or banks approved by the City Council, subject to state laws regulating the designation of depositories for municipal funds. SECTION VIII: THAT SECTION 7.14 ACCOUNTS AND REPORTS BE HEREBY AMENDED AS FOLLOWS: Section 7.14 11. ACCOUNTS AND REPORTS. The accounts of the city shall be maintained in accordance with generally accepted governmental accounting standards and procedures. The City Manager shall submit such reports as will be necessary in order to keep the Council fully informed of the financial conditions of the City. Once a year in accordance with Minnesota state law, the City Manager shall submit a complete financial report of the City, for the preceding fiscal year. This report shall contain audited financial statem shall be published in the official newspaper in a format consistent with the Minnesota State Auditor requirements. be the Chief Accounting Officer of the City and of every branch thereof, and the Council may prescribe and enforce proper accounting methods, forms, blanks, and other devices consistent with the law, this Charter and the ordinances in accord with it. The City Manager shall submit to the Council a statement each month showing the amount of money in the custody of the City Treasurer, the status of all funds, the amount spent or chargeable against each of the annual budget allowances and the balances left in each and such other information relative to the finances of the City as the Council may require. The Council may at any time and shall annually provide for an audit of the City finances by a certified public accountant or by the department of the State authorized to make examination of the affairs of municipalities. On or before the first day of April in each year the City Manager shall prepare a complete financial statement in form approved by the Council of the City's financial operations for the preceding calendar year, and quarter, which statement may be published in such manner as the Council may direct and a summary thereof shall be published in the official newspaper on or before the third week in April, July, October and January as appropriate. (Ref. Ord. 625, Ord. 857) SECTION IX: THAT SECTION 7.15. BONDED DEBT AND DEBT LIMIT BE HEREBY AMENDED AS FOLLOWS: Section 7.15 12. BONDED DEBT AND DEBT LIMIT INDEBTEDNESS. 1. In addition to all the powers in respect to borrowing and the issuance of bonds and other obligations for the payment of money specifically or impliedly granted by this Charter, and any amendments thereto, the City shall have all the powers in reference to these subject matters granted to cities of its same class by the laws of the State of Minnesota state law. in force from time to time. The City shall have the power to issue and sell its bonds to the State of Minnesota and to comply with all provisions of law relative to loans to municipalities from the permanent State funds. The City shall also have such powers as are necessary to obtain loans or funds from the Government of the United States and any of its instrumentalities or from the State of Minnesota or any of its instrumentalities, and to comply with all provisions Ordinance No. ____ Page 7 of law relative to obtaining such loans or funds. 2. The Council by a vote of at least four (4) of its members may authorize the issuance of the bonds to provide funds for any public purpose not prohibited by law,. or The City Council may in at its discretion, by a majority vote of all of its members, submit to the electorate propositions for the issuance of such bonds. When such a proposition is submitted to the electorate, no bonds or other term obligations of the City may be issued except pursuant to a favorable vote of a majority of those voting on the proposition of their issuance. By the proceedings for the issuance of any bonds, by the terms of the bonds and by agreements with the purchasers of bonds, they may be made special in character and limited in their payment to earnings or to part earnings and part tax funds. To the extent that they are thus payable out of earnings or other than tax funds, such bonds shall not be paid out of taxes. The total bonded debt of the City at the time of the issuance of any bonds shall not exceed ten percent (10%) of the last assessed valuation of the taxable property therein, or the limit authorized by State law for cities of the same class, whichever is the greater, but in computing the total bonded debt, certificates of indebtedness, bonds, warrants or other obligations issued before or after adoption of this Charter shall not be included or counted if (1) held in a sinking fund maintained by the City; or (2) issued for the acquisition, equipment, purchase, construction, maintenance, extension, enlargement or improvement of street railways, telegraph or telephone lines, water, lighting, heat and power plants, or either, or any other public convenience from which a revenue is or may be derived, owned and operated by the City, or the acquisition of property needed in connection therewith, or for the construction of public drainage ditches, storm and sanitary sewers, or for the acquisition of lands for streets, parks, or other public improvements or for the improvement thereof, to the extent that they are payable from the proceeds of assessments levied upon property especially benefited by such improvements; or (3) issued for the creation of maintenance of a permanent improvement revolving fund; or (4) for the purpose of anticipating the collection of general taxes for the year in which issued. (Ref. Ord. 857) SECTION X: THAT SECTION 7.16. FORM AND REPAYMENT OF BONDS BE HEREBY REPEALED IN ITS ENTIRETY AS FOLLOWS: Section 7.16. FORM AND REPAYMENT OF BONDS. No bonds shall be issued to run for longer than the reasonable life expectancy of the property or improvement for which the bonds are authorized, as ascertained and set forth in the resolution authorizing such bonds, and in no case shall bonds be issued to run for more than thirty (30) years. The purposes for which bonds are authorized shall be set forth in the resolution authorizing them and the proceeds from such bonds shall not be diverted to any other purpose. It shall be the duty of the City Manager to include in the budget estimates each year a sum or sums amply sufficient to pay the principal of, and the interest on, any bonds which are to fall due in the coming fiscal year, and another sum sufficient to pay the interest for the same year on the Bonds which will be still outstanding. It shall be the duty of the Council, enforceable by mandamus upon the suit of any bondholder or taxpayer, to include such sum or sums as may be necessary for this purpose in the annual budget which it passes. (Ref. Ord. 857) Ordinance No. ____ Page 8 SECTION XI: THAT SECTION 7.17. DEBT AND TAX ANTICIPATION CERTIFICATES BE HEREBY AMENDED AS FOLLOWS: Section 7.17 13. DEBT AND TAX ANTICIPATION CERTIFICATES. In a manner consistent with Minnesota state law, 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 the certificates issued against any fund for any year with interest thereon until maturity shall not exceed ninety percent (90%) of the total current taxes for the fund uncollected at the time of the issuance. Such certificates shall be issued on such terms and conditions as the Council may determine but they shall st become due and payable not later than the 1 day of April of the year following 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. 1.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, as provided for in the budget, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, then the Council may authorize the sale by the City Treasurer of emergency debt certificates to run not to exceed eighteen (18) months and to bear interest at not more than allowable by State Statutes. A tax sufficient to redeem all such certificates at maturity shall be levied as part of the budget of the following year. The authorization of an issue of such emergency debt certificates shall take the form of an ordinance approved by at least four (4) of the members of the Council; the ordinance may, if deemed necessary, be passed as an emergency ordinance. (Ref. Ord. 592) 2. For the purpose of providing necessary moneys to meet authorized expenditures, the Council may issue certificates of indebtedness in any year prior to the receipt of taxes payable in such year, on such terms and conditions as it may determine, bearing interest at a rate not more than allowable by State Statutes; provided that such certificates outstanding at any one time shall not exceed forty percent (40%) of the tax levy payable in the current year belonging to the fund for the benefit of which the borrowing is authorized. (Ref. Ord. 592) SECTION XII: THAT SECTION 7.18. BONDS OUTSIDE THE DEBT LIMIT BE HEREBY REPEALED IN ITS ENTIRETY AS FOLLOWS: Section 7.18. BONDS OUTSIDE THE DEBT LIMIT. Without limit as to amount, the Council may issue bonds for legal purposes outside of the debt limit: (a) for the creation and maintenance of a permanent improvement revolving fund, (b) for extending, enlarging, or improving water supply system, lighting and heat and power plants, or either, or other revenue-producing public utilities of whatever nature, owned and operated by the City, or of acquiring property needed in connection therewith, (c) for public improvements payable from special assessments. The Council may also purchase equipment for street department, water or sewer utility, or fire department use on conditional sale contracts, provided that the installment payments do not Ordinance No. ____ Page 9 extend beyond the estimated useful life of the equipment so purchased. SECTION XIII: THT SECTION 7.14. EMERGENCY DEBT CERTFICATES BE HEREBY CREATED AS FOLLOWS: Section 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, as provided for in the budget, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, then the Council may by resolution, 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 authorization of an issue of such emergency debt certificates shall take the form of a resolution approved by at least four (4) of the members of the council. It may be passed as an emergency resolution and would be exempt from voter approval. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS ___ DAY OF _______ 20__. _________________________ SCOTT J. LUND, MAYOR ATTEST: __________________________________ DEBRA A. SKOGEN, CITY CLERK Public Hearing: First Reading: Second Reading: Publication Date: FRIDLEY CITY CHARTER CHAPTER 7. TAXATION AND FINANCES. Section 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 disbursement of public moneys. In the exercise of a sound discretion it shall make provisions for the payment of all liabilities and expenses. The Council shall establish the fiscal year for the City. Section 7.02. POWER OF TAXATION. 1.The City shall have, in addition to the powers by this Charter expressly or impliedly granted, all the powers to raise money by taxation pursuant to the laws of the State which are applicable to cities of the class of which it may be a member. The amount of taxes levied against real and personal property within the City for general City purposes shall not exceed five percent (5%) more than the prior year tax levy. Moreover, if necessary, the tax levy may be increased up to an additional three percent (3%) with an affirmative vote of at least four members of the Council. (Ref. Ord. 592, 1102, 11/7/00 Amendment, and Ord 1345) Nothing in this provision shall be construed to impair any general obligation the City may have in support of otherwise lawful indebtedness or similar obligation supported by the full faith and credit of the City, provided, however, that long-term, general obligation indebtedness shall not be used for the purpose of funding the routine and daily business operations of the City. (Ref Ord 1152) 2. The City Council may also levy a tax against real and personal property within the City in addition to said limit as defined in paragraph 1 provided the Council shall: A. Adopt a resolution declaring the necessity for an additional tax levy and specifying the purposes for which such additional tax levy is required. B. Hold a public hearing pursuant to three (3) weeks' published notice in the official newspaper of the City setting forth the contents of the resolution described in Subdivision A. C.Adopt after such public hearing a resolution by an affirmative vote of a least four (4) members of the Council which shall be presented as a clear and concise 'plain language' ballot question at the next regular municipal election. (Ref. Ord. 592, 1102 and 11/7/00 Amendment) D.The additional tax levy shall take effect if 51% of the votes cast at said election are in favor of its adoption. 1 3.Any other fees created, or increased beyond the limits set forth in subsection 1, shall require voter approval as stipulated in subsection 2. A.For the purposes of this subsection, "fees" includes sales and use taxes, gas and electric franchise fees and any other fee that produces a tax burden or direct financial obligation for all property owners and/or residents of Fridley. (Ref Ord 1152, 1244) B.For the purposes of this subsection, the term "fees" does not include: utility charges, recycling fees, Parks and Recreation Department participation fees, charges for photo-copying, sales of municipal liquor store products, or civil and criminal fines and other charges collected in cases of restitution or violation of law or contract. The term "fees" also does not include rental housing fees, building permit fees, liquor license fees, the extension or transfer of cable television service authority to additional service providers for which fees are already being charged, fees for the operation of junk yards, annual license fees for the operation of pawn shops and other regulated business, and any other charge for services, including health and safety related Code enforcement, and other goods, services or materials routinely provided by the City to its citizens or other members of the public which, by law, must be limited to the actual cost of the service being provided. The term "fees" shall not include any special assessments made under Minnesota state law. (Ref Ord 1152, 1244) C.All fees and other charges referenced in section B above shall be designed to cover the cost of the service and anticipated future costs. For the purposes of this subsection, "fee increase" includes a new tax or fee, a monetary increase in an existing tax or fee, a tax or fee rate increase, an expansion in the legal definition of a tax or fee base, and an extension of an expiring tax or fee. (Ref Ord 1152) D.For the purposes of this subsection, "city" includes the city itself and all its departments and agencies that are organized to exercise the "Powers of the City" as defined in Chapter 1 of this Charter. "City" shall not include any body of government owing its existence to separate constitutional or statutory authority outside of the Charter, regardless of whether that other body of government has jurisdiction or performs duties and services within the boundaries of the City. (Ref Ord 1152) E.For the purpose of addressing natural disasters this subsection does not apply to any specific emergency measure authorized in Section 7.08 or state law. (Ref 11/7/00 Amendment, Ord 1345) Section 7.03. BOARD OF REVIEW. The Council shall constitute a board of review and shall meet as such in the usual place for holding Council meetings to review, amend and equalize the assessed valuations according to state law. (Ref. Special Election 4/12/60, Ord. 592, Ord 1345) 2 Section 7.04. PREPARATION OF ANNUAL BUDGET The City Manager shall prepare the estimates for the annual budget. The budget shall include all funds identified by the City Manager as requiring annual budget estimates. The budgetshall include any estimated deficit/surplus for the current year. The budget shall contain sufficient detail to be readily understood and contain explanatory statements as deemed necessary. The estimates of revenues and expenditures for general and special revenue funds shall be by organizational unit and include comparative figures for the current fiscal year and actual figures for the two preceding fiscal years. Expenditure estimates shall be divided into three (3) major subdivisions as follows: A.Salaries and Wages, B.Ordinary Expenses, C.Capital Outlay. In funds other than general and special revenue, the proposed expenditures shall be presented in an understandable manner according to the discretion of the City Manager. Section 7.05. PASSAGE OF THE BUDGET. The estimated budget shall be a principal item of business at regular meeting(s) prior to the deadline established in state law, at the times required by law and at subsequent meeting(s) until the budget is adopted. The meetings shall be so conducted as to give interested citizens a reasonable amount of time in which to be heard, and an opportunity to ask questions prior to passage of the final budget. The budget estimates shall be read in full and the City Manager shall explain the various items thereof as fully as may be deemed necessary by the Council. The adopted annual budget shall set forth in such detail as may be determined by the City Council, the complete financial plan of the City for the ensuing fiscal year. It shall indicate the sums to be raised and from what sources, and the sums to be spent and for what purposes, according to Section 7.04. The total sum appropriated shall not exceed the total estimated revenue. The Council shall adopt the budget by resolution in accordance with state law. (Ref. Ord. 625, Ord. 946, Ord 1318, Ord 1345) Section 7.06. ENFORCEMENT OF THE BUDGET. It shall be the duty of the City Manager to enforce the provisions of the budget in accordance with the City Council budget resolution and other financial policies of the City. No officer or employee of the City shall place any orders or make any purchases except for the purposes and to the amounts authorized in the budget resolution. Any obligation incurred by an officer or City employee for any purpose not authorized in the budget resolution or for any amount in excess of the amount appropriated in the budget resolution or in excess of available moneys in any fund of the City may be considered a personal obligation upon the person incurring the expenditure. (Ref. Ord. 857) 3 Section 7.07. ALTERATIONS IN THE BUDGET. After the budget has been duly adopted, the Council shall not have power to increase the amounts therein fixed in the budget resolution, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event, not beyond such actual receipts. The Council may at any time, by resolution passed by a vote of at least four (4) members of the Council, reduce the sums appropriated for any purpose by the budget resolution or authorize the transfer of sums from the unexpended balances of the budget to other purposes. (Ref. Ord. 946) Section 7.08. EMERGENCY APPROPRIATION IN THE BUDGET. 1.The Council shall have power to establish an emergency appropriation as a part of the budget, but not to exceed ten percent (10%) of the total budget. Transfers from the emergency appropriation to any other appropriation shall be made only by a vote of at least four (4) members of the Council. 2. The sums transferred to the several departments or divisions shall be considered as a part of such appropriations and shall be used only for the purposes determined by the city manager and approved by the Council. (Ref Ord 1345) Section 7.09. LEVY AND COLLECTION OF TAXES. In accordance with Minnesota State Law, the Council shall levy by resolution the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The tax levy resolution must be certified to the county in accordance with state law. A statement of all the taxes levied, and such taxes shall be collected and the payment thereof be enforced with and in like manner as state and county taxes. No tax shall be invalid by reason of any informality in the manner of levying the same, nor because the amount levied shall exceed the amount required to be raised for the special purpose for which the same is levied, but in that case the surplus shall go into a suspense fund, and shall be used to reduce the levy for the ensuing year. (Ref. Ord. 625, Ord. 946, Ord 1345) Section 7.10. FUNDS TO BE KEPT. There shall be maintained by the Finance Director a classification of funds which shall provide for a general fund and funds required by law, ordinance, or resolution and meet generally accepted accounting standards and procedures. The Council may, by resolution, make interfund loans where permitted by law except from funds held by the City as a trustee or custodian or in the capacity of an agent. Section 7.11. ACCOUNTS AND REPORTS. The accounts of the city shall be maintained in accordance with generally accepted governmental accounting standards and procedures. The City Manager shall submit such reports as will be necessary in order to keep the Council fully informed of the financial conditions of the City. Once a 4 year in accordance with Minnesota state law, the City Manager shall submit a complete financial report of the City, for the preceding fiscal year. This report shall contain audited financial shall be published in the official newspaper in a format consistent with the Minnesota State Auditor requirements Section 7.12. INDEBTEDNESS. 1. In addition to all the powers in respect to borrowing and the issuance of bonds and other obligations for the payment of money specifically or impliedly granted by this Charter, and any amendments thereto, the City shall have all the powers in reference to these subject matters granted to cities of its same class by Minnesota state law. 2. The Council by a vote of at least four (4) of its members may authorize the issuance of bonds to provide funds for any public purpose not prohibited by law. The City Council may at its discretion, by a majority vote of all of its members, submit to the electorate propositions for the issuance of such bonds. When such a proposition is submitted to the electorate, no bonds or other term obligations of the City may be issued except pursuant to a favorable vote of a majority of those voting on the proposition of their issuance. Section 7.13. TAX ANTICIPATION CERTIFICATES. In a manner consistent with Minnesota state law, 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 the certificates issued against any fund for any year with interest thereon until maturity shall not exceed ninety percent (90%) of the total current taxes for the fund uncollected at the time of the issuance. Such certificates shall be issued on such terms and conditions as the Council may determine but they shall st become due and payable not later than the 1 day of April of the year following 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. Section 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, as provided for in the budget, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, then the Council may by resolution, 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 authorization of an issue of such emergency debt certificates shall take the form of a resolution approved by at least four (4) of the members of the council. It may be passed as an emergency resolution and would be exempt from voter approval. 5 FRIDLEY CITY CHARTER CHAPTER 8. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS Section 8.01. THE CITY PLAN. The present zoning and comprehensive plans shall be the plans for future physical development of the City. Plans may be altered from time to time. To alter a zoning plan, the City Council shall hold a public hearing and notice published fourteen (14) days prior to hearing with notices sent to affected property owners. It may include provisions for zoning, for: (Ref Ord 1310) Zoning; Platting and development of new areas; Planning and location of public works of art; Public buildings; Parks; Playgrounds; Bridges; Public transportation services and facilities; Other public facilities; Designing and improving streets; Designing and improving public places; and Other matters which may seem essential to the City plan. Section 8.02. ENFORCEMENT OF CITY PLAN. The Council shall have all necessary power, acting through the City Manager, to enforce complete adherence by all persons to the plans adopted as provided above, and to adopt and enforce a comprehensive zoning ordinance. The Council shall have power to pass ordinances to regulate the use of private property, the height of buildings, and the proportion of the area of any lot which may be built upon and to establish building lines. Such power shall be exercised to promote public health, safety, morals, welfare and convenience. 12/02/2013 Fridley City Charter Section 8.05.2 Section 8.03. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS. The City shall have the power to make any and every type of public improvement not forbidden by the laws of the State and to levy special assessments to pay for all such improvements as are of a local character, in accordance with Minnesota State Statute Chapter 429, Local Improvements, Special Assessments. The amounts assessed to benefited property to pay for such local improvements may equal the cost of the improvements, including all costs and expenses connected therewith, with interest, until paid, but shall not exceed the benefits to the property. Section 8.04. LOCAL IMPROVEMENT REGULATIONS. The City Council may prepare and adopt a comprehensive ordinance, prescribing the procedure which shall determine all matters pertaining to the making of local improvements thereafter, and such ordinance shall supplant all other provisions of law on the same subject and may be amended only by an affirmative vote of at least four (4) members of the City Council. Such ordinance shall provide for such notice and hearing in the ordering of improvements and the making of assessments therefore as shall be necessary to meet constitutional requirements. Such ordinance shall also require a petition of a majority in number and interest of the owners of property to be assessed for such improvement, or improvements, for the initiation thereof; provided that the City Council may proceed upon its own initiative hereunder and under such ordinance by resolution adopted by four/fifths (4/5) affirmative votes of the City Council after a proper notice and hearing. (Ref. Ord. 776) Section 8.05. PUBLIC WORKS HOW PERFORMED. 1. Public works including all local improvements, may be constructed, extended, repaired or maintained either by contract or directly by day labor. Before receiving bids the City Manager shall, under the direction of the City Council have suitable plans and specifications prepared for the proposed material or project and estimate of the cost thereof in detail. The award of any contract amounting to more than what is allowable under Minnesota state statutes shall require an affirmative vote of at least four (4) members of the City Council. 12-02-2013 Fridley City Charter Section 8.05.2 When the best interest of the City will be served thereby, the City Council may organize a public works department and provide the department with suitable equipment. (Ref. Ord. 1310) 2. The right is reserved to the City Council, upon the recommendation of an engineer, acting through the public works department, to bid on any work to be let by contract. All contracts shall be let to the lowest responsible bidder who is qualified in accordance with Minnesota State Statutes. The term "lowest responsible bidder" shall be interpreted as giving the City Council the right to accept any bid which it determines to be most advantageous to the City. The City Council shall reserve the right to reject any or all bids in accordance with Minnesota State Statute Chapter 429. The City shall require contractors to furnish proper bonds for the protection of the City, the employees and material person. (Ref. Ord. 776) 12-02-2013