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Sec. 5-1. - Fiscal year; "budget year" defined.#
The fiscal year of the City government shall begin on the first day of November and shall end on the last day of October of each calendar year unless a uniform fiscal year for all cities and towns shall be established by state law. Such fiscal year may be changed by ordinance so long as any such change remains in compliance with state law. Such fiscal year shall also constitute the budget and accounting year. As used in this Charter, the term "budget year" shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
Sec. 5-2. - Budget; general statement.#
(1)
The budget shall provide a complete financial plan for the budget year. It shall contain in tabular form: (a) a general summary of the principal sources of anticipated revenue with amounts to be raised from each source, and of the principal objects of expenditure with amounts to be expended on each object; (b) detailed estimates of all anticipated revenues applicable to proposed expenditures; and (c) all proposed expenditures.
(2)
The total of such anticipated revenues shall at least equal the total of such proposed expenditures.
Sec. 5-3. - Preparation and submission of budget.#
The Mayor, at least forty-five (45) days prior to the beginning of each budget year, shall submit to the Council a budget and an explanatory budget message. For such purpose, at such date as he or she shall determine, he or she, or an officer designated by him or her, shall obtain from the head of each office, department or agency estimates of revenue and expenditure of that office, department or agency, detailed by organization units and character and object of expenditure, and such other supporting data as he or she may request; together with an estimate of all capital projects pending or which such department head believes should be undertaken (a) within the budget year and (b) within the five (5) next succeeding years. In preparing the budget, the Mayor shall review the estimates, shall hold hearings thereon and may revise the estimates, as he or she may deem advisable.
Sec. 5-4. - Budget message.#
(1)
The budget message submitted by the Mayor to the Council shall be explanatory of the budget, shall contain an outline of the proposed financial policies of the City for the budget year and shall describe in connection therewith the important features of the budget plan. It shall set forth the reasons for salient changes from the previous year in cost and revenue items and shall explain any major changes in financial policy.
(2)
As a part of the budget message, with relation to the proposed expenditures for capital projects stated in the budget, the Mayor shall include a statement of pending capital projects and proposed new capital projects, relating the respective amounts proposed to be raised therefor by appropriations in the budget and the respective amounts, if any, proposed to be raised therefor by the issuance of bonds during the budget year.
(3)
The Mayor shall also include in the message, or attach thereto, a capital program of proposed capital projects for the five (5) fiscal years next succeeding the budget year, prepared by the planning board, together with his or her comments thereon and any estimates of costs prepared by the department of public works or other office, department or agency. For the use of the planning board in preparing such capital program, copies of the departmental estimates of capital projects, filed with the Mayor pursuant to section 3 of this article, shall be filed with the board.
(4)
Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material, in respect to both current operations and capital improvements, as the Mayor shall believe useful to the Council.
Sec. 5-5. - Revenues anticipated.#
(1)
Anticipated revenues shall be classified as "amount to be raised by property tax," "miscellaneous revenues" and "surplus." Miscellaneous revenues shall be sub-classified by each source and shall be estimated as hereinafter prescribed.
(2)
Miscellaneous revenues shall include all anticipated revenues not included within the "amount to be raised by property tax," including but not limited to the amount of federal aid to be received; state aid to be received; the amount by which the City is expected to benefit from taxes collected by the state; the amounts estimated to be received from services and sales, fines, forfeitures and fees, pension assessments, special assessments and any other special or nonrecurring sources.
(3)
The anticipated revenues and proposed expenditures of each utility or other public service enterprise owned, or operated, by the city, shall be stated in a separate section of the budget (each bearing the name of the utility); and as to each such utility, an anticipated surplus, if legally available for general purposes, shall be stated as an item of miscellaneous revenue in the budget.
(4)
No miscellaneous revenue from any source shall be included as an anticipated revenue in the budget in an amount in excess of the average of the amount actually realized in cash from the same source in the next preceding fiscal year, and that actually realized in the first ten (10) months of the current fiscal year plus that to be received in the remaining two (2) months of the year estimated as accurately as may be, unless the Mayor shall determine that the facts clearly warrant the expectation that such excess amount will actually be realized in cash during the budget year and shall certify such determination in writing to the Council.
(5)
Revenues from the collection of special assessments on property specially benefited shall not be stated in an amount which is in excess of the amount of the receipts so derived which it is estimated will be held in cash on the first day of the budget year.
(6)
No revenue from a new source not previously stated in the budget shall be included unless the Mayor shall determine that the facts clearly warrant the expectation that such revenue will be actually realized in cash during the budget year in the amount stated and shall certify such determination in writing to the Council.
Sec. 5-6. - Anticipated revenues compared with other years.#
In parallel columns opposite the several items of anticipated revenues there shall be placed the amount of each such item in the budget of the last completed fiscal year, the amounts of such items actually received during the year, the amount of each such item in the budget of the current fiscal year and the amount actually received to the time of preparing the budget plus receipts for the remainder of the current fiscal year estimated as accurately as may be.
Sec. 5-7. - Surplus.#
Surplus shall include: (1)
Revenue receipts made available by the lapsing of unencumbered appropriation balances at the beginning of the budget year;
(2)
Receipts from unanticipated miscellaneous revenues for the last completed fiscal year;
(3)
Receipts from anticipated miscellaneous revenues for the last completed fiscal year in excess of the estimates in the budget for that year;
(4)
Receipts during the last completed fiscal year from taxes or liens against which a complete reserve has been established.
Sec. 5-8. - Expenditures proposed.#
The proposed expenditures shall be itemized in such form and to such extent as shall be provided by law, and in the absence of such provision, by regulations established by ordinance. Separate provision shall be included in the budget for at least: (1)
Interest, amortization and redemption charges on the public debt for which the faith and credit of the City is pledged;
(2)
Other statutory expenditures;
(3)
The payment of all judgments;
(4)
The amount by which the total receipts of miscellaneous revenues in the last completed fiscal year failed to equal the total of the budget estimates of receipts from miscellaneous revenues in that year;
(5)
An amount equal to the aggregate of all taxes levied for the third fiscal year prior to the budget year which are delinquent and outstanding on the sixtieth day prior to the beginning of the budget year, except to the extent the City may have made provision therefor by reserving the full amount of said delinquent taxes;
(6)
An amount equal to the aggregate of all cancellations, remissions, abatements and refunds of taxes, that have been made during the current fiscal year;
(7)
An amount equal to the aggregate of all special revenue notes which it is estimated will be outstanding at the end of the current fiscal year in anticipation of the collection of revenues other than the property tax;
(8)
An amount equal to the aggregate of all emergency notes which it is estimated will be outstanding at the end of the current fiscal year;
(9)
If the City is required to make up the deficit arising from the operations of utility or other public service enterprises, an amount equal to the deficit from such operations during the last completed fiscal year, separately stated for each utility or other public service enterprise which appears in a separate section of the budget;
(10)
Administration, operation and maintenance of each office, department or agency of the City itemized by character and object of expenditure;
(11)
Contingent expense in an amount not more than three (3) per centum of the total amount pursuant to subsection (10) of this section;
(12)
Expenditures proposed for capital projects.
Sec. 5-9. - Proposed expenditures compared with other years.#
In parallel columns opposite the several items of proposed expenditures, there shall be placed the amount of each such item in the budget of the last completed fiscal year, the amount of such items actually expended during such year, the amount of each such item in the budget of the current fiscal year and the amount actually expended to the time of preparing the budget plus the expenditures for the remainder of the current fiscal year estimated as accurately as may be.
Sec. 5-10. - Budget to be public record; copies to be prepared for distribution.#
The budget and budget message and all supporting schedules shall be a public record in the office of the City Clerk open to public inspection by anyone. The Mayor shall cause sufficient copies of the budget and budget message to be prepared for distribution to interested persons.
Sec. 5-11. - Public hearing on budget; insertion of new items; increase or decrease in items of budget.#
(1)
At the meeting of the Council at which the budget and budget message are submitted, the Council shall determine the place and time of the public hearing on the budget, and shall cause to be published a notice of the place and time, not less than seven (7) days after date of publication, at which the Council will hold a public hearing.
(2)
At the time and place so advertised, or at any time and place to which such public hearing shall from time to time be adjourned, the Council shall hold a public hearing on the budget as submitted, at which all interested persons shall be given an opportunity to be heard, for or against the estimates or any item thereof.
(3)
After the conclusion of such public hearing, the Council may insert new items or may increase or decrease the items of the budget, except items in proposed expenditures fixed by law or prescribed by subsections (1), (2), (3), (4), (5), (6), (7), (8) and (9) of section 8 of this article. The Council may not vary the titles, descriptions or conditions of administration specified in the budget. Before inserting any additional item or increasing any item of appropriation, it must cause to be published a notice setting forth the nature of the proposed increases and fixing a place and time, not less than five (5) days after publication, at which the Council will hold a public hearing thereon.
Sec. 5-12. - Adoption of budget.#
(1)
After such further hearing, the Council may insert the additional item or items, and make the increase or increases, to the amount in each case indicated by the published notice, or to a lesser amount, but where it shall increase the total proposed expenditures, it shall also increase the total anticipated revenue to at least equal such total proposed expenditures.
(2)
The budget shall be adopted by the favorable votes of at least a majority of all the members of the Council.
(3)
The budget shall be finally adopted not later than seven (7) days before the end of the current fiscal year. Should the Council take no final action on or prior to such day, the budget, as submitted, shall be deemed to have been finally adopted by the Council.
Sec. 5-13. - Adoption, effective date, certification and filing of budget; copies to be available; expenditures to be appropriated; determination of property tax levy.#
(1)
Upon final adoption, the budget shall be in effect for the budget year. A copy of the budget, as finally adopted, shall be certified by the Mayor and City Clerk and filed in the office of the director of finance. The budget so certified shall be printed, mimeographed or otherwise reproduced and sufficient copies thereof shall be made available for the use of all offices, departments and agencies and for the use of interested persons and civic organizations.
(2)
From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes therein named.
(3)
From the effective date of the budget, the amount stated therein as the amount to be raised by property tax shall constitute a determination of the amount of the levy for the purposes of the city, in the corresponding tax year. A copy of the budget as finally adopted shall be certified by the Mayor and filed by him or her with the officer, board, or commission whose duty it shall be to levy such taxes for the corresponding tax year.
Sec. 5-14. - Cap on maximum tax rate increase.#
a)
The State of Rhode Island, by and through its general assembly, has set forth laws controlling the process and procedures for municipal taxation. All property taxation processes and procedures are therefore defined and set forth by the general assembly and preempt any provision herein. The property taxation provisions of this Charter only apply to the extent that they do not conflict with the laws as enacted and as may be amended by the general assembly.
b)
The City of East Providence may levy a tax in an amount not more than three and one half percent (3.5%) in excess of the total amount levied and certified for the previous fiscal year.
c)
The amount levied by the City may exceed the increase specified herein only if the City or town qualifies under one or more of the provisions outlined in Rhode Island General Laws Title 44 Taxation, Chapter 5 Levy and Assessment of Local Taxes Subsection 2(d) Maximum levy, as may be amended from time to time.
Sec. 5-15. - Fund balance and budget act#
(1)
Except as explicitly authorized herein, every budget act enacted in any given fiscal year must allocate at least one percent (1%) of anticipated general fund operating revenues for any given fiscal year to the Fund Balance.
(a)
Any given fiscal year budget act's aggregate expenditures may only exceed ninety-nine percent (99%) of anticipated general fund operating revenues if the Fund Balance is greater than twelve percent (12%) of the prior fiscal year general fund operating revenues.
(2)
There is hereby established a Fund Balance. Said Fund Balance is funded with monies that are not otherwise allocated within any given fiscal year budget act.
(a)
The Fund Balance shall be segregated into two (2) parts, the restricted Fund Balance and the unrestricted Fund Balance.
(b)
The restricted Fund Balance shall take funding priority over the unrestricted Fund Balance. No funds may be allocated to the unrestricted Fund Balance until the restricted Fund Balance is equal to at least seven percent (7%) of the general fund operating revenues.
(c)
The restricted Fund Balance must be kept in reserve and will not be included in the general fund operating budget, unless:
i.
The City forecasts or experiences a loss in total revenues and the loss is certified by the director of finance;
ii.
The City experiences or anticipates an emergency situation, which shall be deemed to exist when the City experiences or anticipates health insurance costs, retirement contributions or utility expenditures which exceed the prior fiscal year's health insurance costs, retirement contributions or utility expenditures by a percentage greater than ten and one-half percent (10.5%);
iii.
The City forecasts or experiences debt services expenditures net of any state aid reimbursement which exceed the prior year's debt service expenditures by an amount greater than three and one-half percent (3.5%) and which are the result of bonded debt issued in a manner consistent with general law or a special act;
iv.
The City experiences substantial growth in its tax base as the result of major new construction which necessitates either significant infrastructure or school housing expenditures by the City or a significant increase in the need for essential municipal services and such increase in expenditures or demand for services is certified by the director of finance.
(d)
The amount between the applicable percentage in subsection (1) and one hundred percent (100%) of the anticipated general fund operating revenues for any fiscal year shall be transferred in any given fiscal year into the Fund Balance; provided, however, that no such payment will be made which would increase the total of the Fund Balance to more than ten percent (10%) of only the anticipated general operating fund as set by subsection (1).
(e)
In the event that the payment to be made into the Fund Balance would increase the amount in said account to more than twelve percent (12%) of anticipated general operating fund revenues that said amount shall be transferred to a capital fund to be used solely for funding capital projects.
(3)
Capital Projects shall not include debt reduction, principal or interest payments on debt, or for any other type of financing arrangement, but shall only be used for payment of direct actual expenses incurred for capital projects.
(4)
For the purpose of this section, general fund operating revenues is defined as the city and school budget, less the state aid and federal aid restricted to the school budget.
(Amd. of 8-24-2017)