Business and Financial Provisions
Sections
| 15. Contracts |
Section 1. Accounts and Records
Accounts shall be dept by the Auditor, showing the financial transactions of all departments of the City. Forms for all such accounts shall be prescribed by the Auditor, with the approval of the City Manager. Accounts shall be kept in such a manner as to show fully at all times the financial condition of the City. The Auditor shall furnish to the City Manager, prior to the first regular meeting of the City Council in each month, a report containing in detail the receipts and disbursements of the City on all accounts, the expenditures made and the obligations incurred during the preceding calendar month, and a balance sheet showing the financial condition of the City, of the several funds and the total unexpended balance to the credit of each department or appropriation account.
Section 2. Approving of Bills
The auditor shall check and furnish to the City Council on or before the first regular meeting of each month the bills which have been incurred for the preceding calendar month. The Council shall approve these bills and such approval shall be by majority vote of the Council. Payment of such bills shall be in accordance with the provisions of section 11 of the uncollected taxes.
Section 3. Audits
All the accounts of the City shall be audited annually by a certified public accountant or State Department of Audit to be chosen by the City Council and the Council at its discretion shall have included in any year an audit of the uncollected taxes.
Section 4. Reports
The auditor shall publish each month a statement of the financial condition of the City. Each of the administrative officers and boards shall annually, on such date as may be fixed by the City Council, render to the City Manager a full report of the transactions of his or their department for the year. The City Manager shall thereafter prepare and publish an annual report for general distribution. In addition to a summary of the services rendered by the various departments, the report shall show:
- Receipts classified according to sources.
- Expenditures classified according to objects. The classification of receipts and expenditures in the report shall conform in general to the classification employee in the City's accounting system.
- Balance sheets.
- Such other financial information as may be required by the City Council.
Section 5. Annual Budget
Not later than the first Monday in May the City Manager shall submit, to the City Council, budget estimates for the ensuing fiscal year. This budget shall be compiled from detailed information furnished by the administrative officers and boards on blanks, the forms of which shall be designated by the City Manager and shall contain:
- Exact statement of the financial condition of the City.
- Itemized statement of appropriations recommended for current expenses and for permanent improvements; with comparative statements in parallel columns of expenditures for the current and next preceding fiscal year. Any increases or decreases in any item or items shall be indicted.
- Itemized statement of estimated revenue from all sources other than taxation; and a statement of taxes required, with comparative figures from the current and next preceding year.
- Such other information as the City Council may require. The budget shall be posted not later than 2 weeks after its submission to the City Council. The City Council shall fix a time and place for holding a public hearing upon the budget and shall give a public notice of such hearing, which shall be at least 10 days before the final passage of the appropriation resolve.
Section 6. Appropriations Resolve
As early as possible after the beginning of the fiscal year, the City Council shall pass an annual appropriation resolve, which shall be based upon the budgets submitted by the City Manager and the School Board. The total amount appropriated shall not exceed the estimated revenue of the City. Before the annual appropriation resolve has been passed, the City Council may make appropriation for current departmental expenses, chargeable to the appropriation for the year, when passed, to an amount sufficient to cover the necessary expenses of the various departments until the annual appropriation resolve is in force.
There shall be included in the annual appropriation resolve an appropriation to provide for tax abatements and uncollectable taxes in such amount as shall be recommended by the Manager and approved by the Council. All abatements and uncollectable taxes shall be charged to this account, and if at any time such account should be in excess of the total tax abatements and uncollectable taxes, then such excess shall be transferred to the unappropriated surplus account.
Section 7. Borrowing
The borrowing of money by and for the City shall be limited as to form and purpose by the provisions of Sections 8 and 9 of Article VII of this Charter. The credit of the City shall in no manner be loaned to any individual or corporation.
Section 8. Bond Issues
Money may be borrowed, within the limits fixed by the constitution and statues of the state now or hereafter applying to said Gardiner, by the issue and sale of bands or notes pledged on the credit of the City, the proceeds to be used for the payment of indebtedness of the City contracted for the acquisition of land, the construction and equipment of buildings and other permanent public improvements and the payment or refunding of bonds, notes and certificates of indebtedness previously issued. No order providing for the issue of bonds or notes shall be passed without public notice given by posting notice of the same in two public places in the City of Gardiner, and publishing said notice in at least one daily newspaper circulated in said Gardiner at least 2 weeks before final action by the City Council, and the affirmative vote of at least six members of the City Council exclusive of the Mayor. Every issue of bonds shall be payable within a fixed term of years, if said bonds are issued in payment of indebtedness incurred for a permanent improvement, the term of such bonds shall not exceed the estimated period of utility of said improvement, but the declaration of the City Council embodied in the order authorizing the issue shall be a conclusive determination of the estimated period of utility thereof, and the term within which all bonds shall be made payable shall in no case exceed 30 years. Bonds issued after the adoption of this Charter, shall be made payable in annual, serial and approximately equal installments as pertains to principal, and interest shall be made payable semi-annually. Every order for the issue of bonds shall provide for a tax levy for each year of an amount necessary to meet the payment of the annual, serial installment of principal and interest, and such amounts shall be included in the tax levy for each year until the debt is extinguished, provided, however that bonds issued to refund any indebtedness of this City of Gardiner existing prior to the adoption of the Charter or bonds issued to refund such bonds shall not be subject to the aforesaid requirement of being made payable in annual, serial and approximately equal installments.
Section 9. Temporary Loans
Money may be borrowed in anticipation of receipts from taxes during any fiscal year but the aggregate amount of such loans outstanding at any one time shall not exceed 80% of the taxes committed during the preceding fiscal year. All such loans shall be paid within the year out of receipts from taxes for the fiscal year in which said loans are made. Money may be borrowed in anticipation of money to be received from the sale of bonds to be paid within 1 year and are subject to the provisions of laws of the State of Maine in relation thereto.
Section 10. Liquidation Indebtedness
There shall be included in the annual appropriation resolve an appropriation for the liquidation of municipal indebtedness in the amount of not less than the total amount of payments during that year, such amount to be used for the payment of serial notes and bonds maturing within the year and the balance to be deposited in the unappropriated surplus account. This provision shall remain in force so long as there remain outstanding bonds or notes, exclusive of temporary loans in anticipation of taxes, the payment of which has not been provided for by payments in serial installments.
Section 11. Payments
Money shall be paid out only on warrants on the City Treasury issued by the Auditor and countersigned by the City Manager, the Mayor and a member of the City Council to be designated from time to time by said City Council.
The Auditor shall examine all payrolls, bills and other claims and demands against the City, and shall issue no warrant for payment until he finds that the claim is in proper form, correctly computed, duly certified and legally due and payable.
The Auditor may require and claimant to make oath to the validity of his claim, may investigate any claim, and for such purpose or purposes may examine witnesses under oath.
Section 12. Bonds of Officers
The City Council shall require a bond with sufficient surety or sureties, satisfactory to the City Council, from all persons trusted with the collection, custody or disbursement of any of the public moneys, and may require such bond from such other officials as it may deem advisable the premium charges for said bonds to be paid by the City.
Section 13. Collection and Custody of City Monies
All moneys received by an officer, employee or agent of the City belonging to the City, or for or in connection with the business of the City, shall forthwith be paid by the officer, employee or agent receiving the same into the City treasurer, and shall then be deposited by the City treasurer with some responsible banking institution to be chosen by said City Council. All interest from all deposits of money belong to the City shall accrue to the benefit of the City.
Section 14. Purchasing of Supplies
The purchasing agent shall purchase all supplies according to subsection 1 of Section 6 of Article VI. No purchase of supplies exceeding the amount set by the City Council shall be made except through authorization of City Council.
The purchasing agent shall see to the delivery of supplies to each officer and department to whom they belong, and take and file receipts therefor. He shall conduct all sales of property belonging to the City which are unfit or unnecessary for the City's use, but only after such sale has been authorized by the City Council, and subject to such restrictions as the City Council may by ordinance provide.
The City Manager shall act as purchasing agent.
Section 15. Contracts
No order, contract, or the like shall be made for the purchase by the City of any property; real, personal, or mixed; or any service, unless and until the funds for said purchases have been authorized by the City Council.