ARTICLE IV. - DEPARTMENT OF FINANCE

Sec. 4-1. - Finance department created; head of department designated; organization.#

There shall be a department of finance, the duties of which shall include the supervision and direction of all matters pertaining to financial operations, and the head of which shall be the director of finance, who shall be, or be appointed by, and subject to the removal by, the Mayor.

Sec. 4-2. - Director of finance; qualifications.#

The director of finance shall have knowledge of municipal accounting and taxation and shall have had experience in budgeting and financial control.

Sec. 4-3. - Director of finance; salary.#

The director of finance shall receive such salary as may be determined by ordinance, unless the duties of said office shall be performed by the Mayor.

Sec. 4-4. - Director of finance; powers and duties.#

The director of finance shall have charge of the administration of the financial affairs of the city and to that end he or she shall have authority and shall be required, acting through the proper division of the department in each instance, to: (1)

Compile the current expense estimates for the budget for the Mayor;

(2)

Compile the capital estimates for the budget for the Mayor;

(3)

Supervise and be responsible for the disbursement of all monies and have control over all expenditures to ensure that budget appropriations are not exceeded;

(4)

Maintain a general accounting system for the City government and each of its offices, departments and agencies; keep books for and exercise financial budgetary control over each office, department and agency; keep separate accounts for the items of appropriation contained in the City budget, each of which accounts shall show the amount of the appropriation, the amounts paid therefrom, the unpaid obligations against it and the unencumbered balance; require reports of receipts and disbursements from each receiving and spending agency of the City government to be made daily or at such intervals as he or she may deem expedient;

(5)

Submit to the Council through the Mayor a monthly statement of all receipts and disbursements in sufficient detail to show the exact financial condition of the City;

(6)

Prepare for the Mayor, as of the end of each fiscal year, a complete financial statement and report;

(7)

Supervise and be responsible for the assessment of all property within the corporate limits of the City for taxation, make all special assessments for the City government, prepare tax maps and give such notice of taxes and special assessments as may be required by law;

(8)

Collect all taxes, special assessments, license fees and other revenues of the City or for whose collection the City is responsible and receive all money receivable by the City from the state or federal government, or from any court, or from any office, department or agency of the City;

(9)

Have custody of all public funds belonging to or under the control of the City, or any office, department or agency of the City government, and deposit all funds coming into his or her hands in such depositories as may be designated by resolution of the Council, or, if no such resolution be adopted, by the Mayor, subject to the requirements of law as to surety and the payment of interest on deposits, but all such interest shall be the property of the City and shall be accounted for and credited to the proper account;

(10)

Have custody of all investments and invested funds of the City government, or in possession of such government in a fiduciary capacity, and have the safekeeping of all bonds and notes of the City and the receipt and delivery of City bonds and notes for transfer, registration or exchange;

(11)

Approve all proposed expenditures; unless he or she shall certify that there is an unencumbered balance of appropriation and available funds, no appropriation shall be encumbered and no expenditure shall be made.

Sec. 4-5. - Work programs; allotments.#

Before the beginning of the budget year, the head of each office, department or agency of the City government shall submit to the Mayor, when required by him or her, a work program for the year, which program shall show the requested allotments of the appropriations for such office, department or agency, by monthly periods, for the entire budget year. The Mayor shall review the requested allotments in the light of the work program of the office, department or agency concerned, and may revise, alter or change such allotments before approving the same. The aggregate of such allotments shall not exceed the total appropriation available to said office, department or agency for the budget year.

Sec. 4-6. - Filing copy of allotments; director of finance to authorize expenditures; revision of allotments.#

The Mayor shall file a copy of the allotments with the director of finance, who shall authorize all expenditures for the offices, departments and agencies to be made from the appropriations on the basis of approval allotments and not otherwise. An approved allotment may be revised during the budget year in the same manner as the original allotment was made. If, at any time during the budget year, the Mayor shall ascertain that the available income, plus balances, for the year will be less than the total appropriations, he or she shall reconsider the work programs and allotments of the several offices, departments and agencies and revise the allotments so as to forestall the making of expenditures in excess of the said income.

Sec. 4-7. - Transfer of appropriations.#

The Mayor may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department or agency. At the request of the Mayor and within the last three (3) months of the budget year, the Council may by resolution transfer any unencumbered appropriation balance or portion thereof from one office, department or agency to another. No transfer shall be made from the appropriations required by subsections (1), (2), (3), (4), (5), (6), (7), (8), (9) and (12) of article V, section 8 of this Charter.

Sec. 4-8. - Accounting supervision and control.#

The director of finance shall have power and shall be required, to: (1)

Prescribe the forms of receipts, vouchers, bills or claims to be used by all the offices, departments and agencies of the City government;

(2)

Examine and approve all contracts, orders and other documents by which the City government incurs financial obligations, having previously ascertained that monies have been appropriated and allotted and will be available when the obligations shall become due and payable;

(3)

Audit and approve before payment all bills, invoices, payrolls and other evidences of claims, demands or charges against the City government and with the advice of the City Solicitor determine the regularity, legality and correctness of such claims, demands or charges;

(4)

Inspect and audit any accounts or records of financial transactions which may be maintained in any office, department or agency of the City government apart from or subsidiary to the accounts kept in his or her office.

Sec. 4-9. - Prohibited contracts and expenditures.#

No office, department or agency shall expend any money or incur any liability or enter into any agreement which by its terms involves the expenditure of money during the fiscal year in excess of the amounts appropriated, other than for capital improvements to be financed in whole or in part by the issuance of bonds and the making of contracts and leases approved by the Council. Any contract, verbal or written, made in violation of this Charter shall be null and void.

Sec. 4-10. - Unexpended appropriations.#

All appropriations shall lapse at the end of the budget year to the extent that they shall not have been expended or lawfully encumbered.

Sec. 4-11. - Fees.#

All fees received by any officer or employee shall be remitted daily to the department of finance and shall belong to the City government.

Sec. 4-12. - Board of assessment review.#

(1)

There shall be a board of assessment review whose members shall be qualified electors of the city. The board of assessment review shall consist of five (5) members appointed by the Mayor, subject to Council approval, at least one (1) member to be a resident of each ward in the City. The members first appointed shall serve for terms of two [2], four [4] and six [6] years respectively, and thereafter one member shall be appointed in each second year for a term of six [6] years. Two (2) additional members shall be appointed for terms of office to conclude in the first and second years thereafter in which there are no members whose terms expire respectively. Thereafter one (1) member shall be appointed in each year, with the exception of the year in which no member's term expires, for a term of six [6] years from the date of expiration of the term for which his or her predecessor was appointed, except that a person appointed to fill a vacancy occurring prior to the expiration of such term shall be appointed for the remainder of the term. Each member of the board shall hold office until his or her successor is appointed and qualified.

(2)

The board of assessment review shall hear and consider the appeal of any property owner concerning the amount of his or her assessed valuation as determined by the City Assessor. The assessor shall attend all hearings of the board of review in order to explain his or her valuations, but shall have no vote. The board shall keep an accurate record of its proceedings which shall be available for public inspection. If it shall appear that the valuation of any property has been incorrectly or inequitably assessed, the board shall have power to change the assessment.

(3)

The Council shall provide by ordinance for the organization and procedure of the board of assessment review and for the manner of receiving, considering, and disposing of appeals.

(4)

The taking of an appeal to the board of assessment review, or any action thereon, shall not be construed to limit or restrict the right of any taxpayer to apply to a court of competent jurisdiction for relief from any assessed valuation or tax originally determined by the assessor.

Sec. 4-13. - Competitive bidding.#

(1)

Before any purchase of or contract for supplies, materials or equipment or contract for any City improvement, opportunity shall be given for competitive bidding under such rules and regulations, and with such exceptions, as the Council may prescribe by ordinance.

(2)

All contracts for more than an amount to be determined by ordinance shall be awarded to the lowest responsible bidder after such public notice and competition as may be prescribed by ordinance. No transaction which is essentially a unit shall be divided for the purpose of evading the intent of this section. The Mayor shall have the power to accept or to reject any or all bids, and to re-advertise for same; provided, however, that the acceptance of any bid for a contract in excess of fifty thousand ($50,000.00) dollars shall be subject to the approval of the City Council. Alterations in any contract may be made when authorized by the Council upon the written recommendation of the Mayor.

Sec. 4-14. - Accounting control of purchases.#

All purchases made and contracts executed by the finance department shall be pursuant to a written requisition from the head of the office, department or agency whose appropriation will be charged, and no contract or order shall be issued to any vendor unless and until an officer of the City certifies that there is to the credit of such office, department or agency a sufficient unencumbered appropriation balance to pay for the supplies, materials, equipment or contractual services for which the contract or order is to be issued.

Sec. 4-15. - Contracts financed by bonds.#

No contract shall be executed for the acquisition of any property or the construction of any improvement or betterment to be financed by the issuance of bonds until the ordinance authorizing the issuance of such bonds shall have taken effect and any contract executed before such day shall be unenforceable in any court of law.

Sec. 4-16. - Emergency appropriations.#

At any time in any fiscal year, the Council may, pursuant to this section, make emergency appropriations to meet a pressing need for public expenditure, for other than a regular or recurring requirement, to protect the public health, safety or welfare. Such appropriation shall be by resolution adopted by the favorable votes of at least four-fifths of the members of the Council, and shall be made only upon recommendation of the Mayor.

Sec. 4-17. - Emergency appropriations borrowing.#

In the absence of unappropriated available revenues to meet emergency appropriations under the provisions of article IV, section 19, the Council may by resolution authorize the issuance of notes, each of which shall be designated "emergency note" and may be renewed.

Sec. 4-18. - Borrowing in anticipation of property taxes.#

If necessary the Council shall authorize the issuance of any notes which lawfully may be issued by the City in anticipation of taxes an amount not to exceed eighty (80) per centum of the taxes due for that fiscal year, and all revenue from the collection of taxes on real and personal property beginning with the day subsequent to the date on which any such notes are issued shall be reserved for the payment of said notes and shall not be available for any other purpose until such borrowing in anticipation of taxes has been repaid.

Sec. 4-19. - Borrowing in anticipation of other revenues.#

In any fiscal year, in anticipation of the collection or receipt of other revenues than the property tax of that fiscal year, the Council may by resolution authorize the borrowing of money by the issuance of negotiable notes of the city, each of which shall be designated "special revenue note for the year…." (stating the fiscal year). Such notes may be renewed, but all such notes, together with the renewals, shall mature and be paid not later than the end of the fiscal year immediately following the fiscal year in which the original notes shall have been issued.

Sec. 4-20. - Notes redeemable prior to maturity.#

No notes shall be made payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be stated in the note.

Sec. 4-21. - Sale of notes; report of sale.#

All notes issued pursuant to this article may be sold and accrued interest at private sale without previous advertisement by the director of finance.

Sec. 4-22. - Payment of notes.#

The power and obligation of the City to pay any and all notes hereafter issued by it pursuant to this article shall be unlimited and the City shall levy ad valorem taxes on all the taxable property within the City for the payment of such notes and interest thereon without limitation of rate or amount, subject to the laws of the state. The faith and credit of the City is hereby pledged for the payment of the principal of and interest on all notes of the City hereafter issued pursuant to this article, whether or not such pledge be stated in the notes.

Sec. 4-23. - Borrowing for capital improvements.#

The City may borrow money by issuing its negotiable bonds and notes in anticipation of bonds, pledging the credit and property of the City, to finance any capital project which it may lawfully construct or acquire.

Sec. 4-24. - Bond ordinance.#

(1)

The City shall authorize the issuance of bonds by a "bond ordinance" passed by the affirmative votes of a majority of all the members of its Council, as provided by this Charter.

(2)

A bond ordinance shall contain in substance at least the following provisions:

(A)

An appropriation of a sum of money for a capital project, described in brief and general terms sufficient for reasonable identification;

(B)

To finance the said appropriation, an authorization of the incurring of indebtedness by the issuance of bonds in a stated amount, pursuant to this Charter;

(C)

A statement of the estimated maximum cost of the capital project, including any sums theretofore or thereby appropriated;

(D)

A determination of the period of usefulness of the project, within the limitations of article IV, section 32 of this Charter;

(E)

A determination of the net debt of the City after issuance of the bonds thereby authorized, together with a declaration that the bonds thereby authorized will be within all debt and other limitations prescribed by the constitution and laws of the state.

(3)

The title of a bond ordinance shall state the amount appropriated for an indicated project and the amount of bonds authorized to finance the appropriation. Bond ordinances shall be cited in bonds and notes by title and date of final passage. A bond ordinance may not combine two or more projects.

(4)

The procedure for passage of a bond ordinance shall be the same as that for other ordinances of the City except that when published after final passage each bond ordinance shall be accompanied by a notice in substantially the following form:

Notice

The bond ordinance published herewith has been finally passed and the twenty-day period of limitation within which a suit, action or proceeding questioning the validity of such ordinance can be commenced as provided in the City Charter has begun to run from the date of the first publication of this notice. City Clerk

Sec. 4-25. - Referendum on bond ordinance.#

No bonds shall be issued pledging the credit of the City unless submitted to a vote of the electors at either a general or special election, and approved by a majority of the electors voting on the question.

Sec. 4-26. - Issuance and sale of notes in anticipation of bonds.#

In anticipation of the issuance of bonds approved pursuant to article IV, section 28, the Council may by resolution authorize the issuance of negotiable notes. Each such note shall be designated "bond anticipation note" and, including renewals, shall mature and be paid not more than fourteen (14) calendar months after the date of issuance of the original note. Unless otherwise provided by ordinance, all bond anticipation notes may be sold by the director of finance at private sale without previous public offering.

Sec. 4-27. - Special debt statement.#

Five (5) days prior to the date of the second reading of the bond ordinance, the director of finance shall file with the City Clerk, who shall post publicly, a statement setting forth (a) the aggregate principal amount of all outstanding bonds and notes of the city; (b) deductions permitted by the constitution and general laws; (c) the amount of the existing net indebtedness; (d) the amount of the net indebtedness after the issuance of the bonds authorized by such bond ordinance; and (e) the aggregate principal amount of bonds and notes which the City may issue, pursuant to law.

Sec. 4-28. - Serial bond requirement.#

(1)

All bonds issued pursuant to this Charter shall be paid in consecutive annual instalments no one of which shall be more than fifty (50) per centum in excess of the smallest prior instalment.

(2)

The first annual instalment shall be paid not more than one (1) year, or if the bonds are issued to fund notes, not more than two (2) years, after the date of final passage of the bond ordinance by virtue of which they are issued.

(3)

The last annual instalment of each authorized issue of bonds shall be paid not later than the date of expiration of the period of usefulness of the project for the financing of which such bonds are issued as determined in the bond ordinance authorizing the issuance of the bonds.

Sec. 4-29. - Period of usefulness requirement.#

(1)

Bonds shall mature not later than the expiration of the period of the probable usefulness of the capital project for which they are issued, as determined by certificate of the engineer or architect, approved by the Mayor, and stated in the bond ordinance, but the maximum period shall not exceed thirty (30) years.

(2)

The period of usefulness of each project shall be computed from the date of final passage of the bond ordinance by virtue of which the bonds are issued.

(3)

The determination of the Council, in the bond ordinance, as to the period of usefulness, shall be conclusive in any action or proceeding involving the validity of the bonds.

Sec. 4-30. - Public sale of bonds.#

All bonds issued under this Charter shall be sold at public sale upon sealed proposals after at least ten (10) days' notice published at least once in a publication carrying municipal bond notices and devoted primarily to financial news or to the subject of state and municipal bonds, distributed in Rhode Island, and to the general public in at least one other manner as set by ordinance.

Sec. 4-31. - Short period of limitations for bond ordinance.#

When twenty (20) days shall have elapsed after the publication after final passage of a bond ordinance as provided by this Charter, (a) any recitals or statements of fact contained in such bond ordinance, or in the preambles or recitals thereof, shall be deemed to be true for the purpose of determining the validity of the bonds thereby authorized and the City and all others interested shall forever thereafter be estopped from denying the same; (b) such bond ordinance shall be conclusively presumed to have been duly and regularly passed by the City and to comply with the provisions of this Charter and of all laws; and (c) the validity of such bond ordinance shall not thereafter be questioned by either a party plaintiff or a party defendant, except in a suit, action or proceeding commenced prior to the expiration of such twenty (20) days.

Sec. 4-32. - Payment of bonds and notes.#

The power and obligation of the City to pay any and all bonds and notes hereafter issued by it pursuant to this Charter shall be unlimited and the City shall levy ad valorem taxes upon all the taxable property within the City for the payment of such bonds or notes and interest thereon, without limitation of rate or amount, subject to the laws of the state. The faith and credit of the City is hereby pledged for the payment of the principal of and the interest on all bonds and notes of the City hereafter issued pursuant to this Charter, whether or not such pledge be stated in the bonds or notes, or in the bond ordinance authorizing their issuance.