CHARTER ARTICLE X. FINANCE AND TAXATION

The fiscal year of the City shall commence upon the first day of July of each year, or at such other time as may be fixed by ordinance.

The Council shall by ordinance provide a system for the assessment, levy and collection of all City taxes not inconsistent with the provisions of this Charter.

The Council shall have power to avail itself by ordinance of any law of the State of California now or hereafter in force and comply with the requirements thereof whereby assessments may be made by the Assessor of the County in which the City of Berkeley is situated and taxes collected by the Tax Collector of said County for and on behalf of the City of Berkeley. Other provisions of this Charter concerning the assessment, levy and collection of taxes shall be subject to the provisions of any such ordinance while the same shall be in force.

On such date in each year as shall be fixed by the City Manager, the heads of departments, offices, boards and commissions, shall send to the City Manager a careful estimate, in writing, of the amounts, specifying in detail the objects thereof, required for the business and proper conduct of their respective departments, offices, boards and commissions, during the next ensuing fiscal year.

On or before the first Monday in May in each year, or on such date in each year as shall be fixed by the Council, the City Manager shall submit to the Council a tentative budget which shall contain an estimate of the probable expenditures of the City Government for the next ensuing fiscal year, stating the amount required to meet the interest and sinking funds for the outstanding funded indebtedness of the City, and the wants of all the departments of the municipal government in detail, and showing specifically the amount necessary to be provided for each fund and department; also an estimate of the amount of income from fines, licenses and other sources of revenue, exclusive of taxes upon property, and the probable amount required to be levied and raised by taxation.

The Council shall meet annually prior to fixing the tax levy, and after considering the tentative budget submitted by the City Manager shall make a final budget of the estimated amounts required to pay the expenses of conducting the business of the City Government for the next ensuing fiscal year. The final budget shall be prepared in such detail as to the aggregate sum and the items thereof allowed to each department, office, board or commission, as the Council may deem advisable. The Council may also provide, in the final budget, an emergency fund in such amount as it may deem advisable, which said fund shall not be allotted to any particular department, office, board or commission except as hereinafter provided.

And the Council at the same time shall pass an annual appropriation ordinance, which shall be based upon the budget submitted by the City Manager, and made up as herein provided. The total amount of appropriations shall not exceed the estimated revenues of the City.

Before the annual appropriation ordinance has been passed, the Council may make temporary appropriations for current department expenses, chargeable to the appropriations of the year when passed, to an amount sufficient to cover the necessary expenses of the various departments until the annual appropriation is in force. No other liabilities shall be incurred by any officer or employee of the City except in accordance with the provisions of the annual appropriation ordinance, or under continuing contracts and loans authorized under the provisions of this Charter.

At any meeting after the passage of the appropriation ordinance, the Council by a vote of six of its members may amend such ordinance, so as to authorize the transfer of unused balances appropriated for any purpose, including the emergency fund, to another purpose, or to appropriate available revenues not included in the annual budget.

The Council must finally adopt, not later than the first day of August, an ordinance levying, subject to the provisions of this Charter, a rate of taxation sufficient to raise the amount estimated to be required in the annual budget for support of general debt obligations of the City and other voter approved obligations consistent with Article XIII(a) of the Constitution of the State of California.

The Council shall have power to levy and collect taxes, in addition to the taxes herein authorized to be levied and collected, sufficient to pay the interest and maintain the sinking fund of the bonded indebtedness of the City and to provide for the establishment and support of free public libraries and reading rooms.

All taxes assessed, together with any percentage imposed for delinquency and the cost of collection, shall constitute liens on the property assessed; every tax upon the personal property shall be a lien upon the real property of the owner thereof. The liens provided for in this section shall attach as of the first Monday in March in each year, and may be enforced by actions in any court of competent jurisdiction to foreclose such liens, or by a sale of the property affected and the execution and delivery of all necessary certificates and deeds therefor, under such regulations as may be prescribed by ordinance; provided that when real estate is offered for sale for City taxes due thereon, the same shall be struck off and sold to the City, in like case and in like manner and with like effect and with like right of redemption, as it may be struck off and sold to the State when offered for sale for State and County taxes; and the Council shall have power to provide for the procedure to be followed in such sales to the City and redemption thereafter.

The Auditor shall have the authority and responsibility to conduct performance and financial audits or special studies of all phases of the City of Berkeley government in accordance with government auditing standards. Such audits may include financial, compliance, efficiency and economy, and program results auditing. The Auditor shall consult with the Mayor, City Council, and City Manager regarding the selection of audit entities, but the final decision of what to audit shall remain with the Auditor. The Auditor shall furnish the City Council with a planned audit schedule by the beginning of each fiscal year. The Auditor may modify the audit schedule as necessary and will notify the City Council of such modifications.

The Auditor shall have unrestricted access to employees, officials, records and reports, and as necessary, require all branches, departments, and officials of government to produce documents, files, and other records and information.

Audit reports completed by the Auditor shall be provided to the Council and made available to the public. The Auditor shall retain workpaper files concerning all audit reports issued for at least three years.

Funds sufficient to carry out the responsibilities specified herein shall be provided (subject to available resources).

Payment by the City, excepting redemption of bonds and interest coupons, shall be made only upon vouchers certified by the head of the appropriate department and approved by the City Manager, and by means of warrants on the City Treasury, or by checks drawn upon deposits maintained in a bank or banks, issued by the Auditor and countersigned by the City Manager. The Auditor shall examine all payrolls, bills and other claims and demands against the City, and shall issue no warrant or check for payment unless he finds the claim is in proper form, correctly computed and duly certified; that it is justly and legally due and payable; that a budget appropriation has been made therefor which has not been exhausted, or that the payment has been otherwise legally authorized; and that there is money available to make payment. He may require any claimant to make oath as to the validity of the claim. He may investigate any claim, and for such purpose may examine witnesses under oath; and if he finds it fraudulent, erroneous or otherwise invalid, he shall not issue a warrant or check therefor. No suit shall be brought on any claim for money against the City or of any officer, board or commission of the City until a demand for the same has been presented and rejected in whole or in part. If rejected in art, suit may be brought to recover the whole. Nor shall suit be brought against the City or any officer, board or commission thereof upon any claim or demand which has been approved and audited; provided, that nothing therein shall be construed so as to deprive the holder of any demand of his right to resort to writ of mandamus or other proceeding against the City Council or any officer, board or commission to compel him or it to act upon such claim or demand, or to pay the same when audited.

When the running expenses of the City have been placed on a cash basis, warrants payable on demand shall be drawn upon the Treasurer, or against any funds in his or her hands, or checks drawn upon deposits maintained in a bank or banks, only when at the time of the drawing and issuing of such warrants or checks there shall be sufficient money in the appropriate fund in the treasury or bank or banks to pay said warrants or checks.

Every officer collecting or receiving any moneys belonging to or for the use of the City shall settle for the same with the Treasurer on or before the last day of each month, or at more frequent intervals as may be directed by the Council, and immediately pay all the same into the treasury, on the order of the Auditor, for the benefit of the funds to which such moneys severally belong. When the last day of the month falls upon Sunday or legal holiday, the said payments shall be made on the next preceding business day. The Council may provide, in its discretion, for the deposit of the City moneys in banks in accordance with the State law.

The Council shall prescribe uniform forms of accounts, which shall be observed by all officers and departments of the City which receive or disburse moneys.

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City Clerk Department
2180 Milvia Street, Berkeley, California 94704
Telephone (510) 981-6900; TDD (510) 981-6903; Fax (510) 981-6901
Office Hours: Monday - Friday 8 a.m. - 5 p.m.
E-mail: clerk@ci.berkeley.ca.us

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