ORD 343 ORDINANCE NO. 343
AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES AMENDING CHAPTER 3.32 (BUDGET
ADMINISTRATION) OF THE RANCHO PALOS VERDES
MUNICIPAL CODE TO DESCRIBE AND CLARIFY A TWO-
YEAR BUDGET CYCLE
WHEREAS, currently the City Council adopts an annual budget and produces a
budget document for each fiscal year; and,
WHEREAS, the ability for the City to adopt a two-year budget cycle will allow the
City to produce a budget document every two years, thereby saving a significant
amount of staff time and expense during the second year of the budget cycle, while still
maintaining the ability to respond to changes in priorities or conditions in the second
year of the budget cycle, facilitating better planning and prioritizing of departmental
expenditures and programs, and maintaining the function of the budget as a
management tool.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES HEREBY ORDAINS AS FOLLOWS:
Section 1: Chapter 3.32 of Title 3 of the Rancho Palos Verdes Municipal
Code is hereby amended to read as follows:
Chapter 3.32
BUDGET ADMINISTRATION
Sections:
3.32.010 Purpose.
3.32.020 Fiscal year established.
3.32.030 Two-year budget cycle established
3.32.040 Submission date and content.
3.32.050 Budgetary definitions.
3.32.060 Funds established.
3.32.070 Form of presentation.
3.32.080 Transfers between accounts and supplemental appropriations to
originally adopted budget.
3.32.090 Public hearings.
3.32.100 Date of adoption.
3.32.110 Filing of budget.
3.32.120 Duplication.
3.32.130 Midyear budget review.
3.32.010 Purpose.
This chapter is established for the purpose of standardizing the city's procedure
for the administration of a budget system. Its provisions are intended to control the
execution of municipal activity in accordance with a predetermined financial plan.
3.32.020 Fiscal year established.
Each fiscal year shall begin on the first day of July and shall end on the thirtieth
day of June.
3.32.030 Two-year budget cycle established.
Starting in fiscal year 1999-2000, the budget document shall be produced only
during the first year of a two-year budget cycle. The draft budget document shall be
produced by June 5th of the year proceeding the first year of the two year budget cycle
and shall include anticipated revenues and expenditures as required in section
3.32.040 for the next two fiscal years (for example, fiscal years 1999-2000 and 2000-
2001). Annually, the city council shall adopt a budget for each fiscal year included in
the budget document. For the first fiscal year, the final budget document shall indicate
that the first fiscal year has been "adopted" and the second fiscal year is "proposed."
By June 5th of the first fiscal year of the two-year budget cycle, the city council shall
review the budget document and make any necessary amendments to the revenues,
expenditures and fund balances which will reflect the projected results for the first fiscal
year, and any line item changes to the proposed second year budget as contained in
the budget document.
3.32.040 Submission date and content.
On or before June 5th of each year, the city manager shall submit a budget for
the coming fiscal year to the city council.
A. At a minimum, the budget for the first year of the two-year budget cycle
shall contain the following information pertaining to the next two fiscal years:
1. A budget message;
2. All anticipated revenues;
3. All expenditures schedules for all funds, functions and programs of
the city (except trust and similar-type funds);
4. A schedule showing the comparison of all revenues and
expenditures and the status of all surplus or reserve accounts;
5. Expenditures and revenues for any city-wide special assessment
activity;
6. The number of authorized full-time equivalent positions for each
function.
B. At a minimum, the budget for the second year of the two-year budget
cycle shall contain the following:
Ordinance No. 343
Page 2 of 5
1. A report highlighting the results of the first fiscal year and
addressing budget policy issues for the second fiscal year;
2. Revised documents for the first fiscal year revenues, expenditures
and fund balances, which reflect the projected results of the first
fiscal year;
3. Any proposed amendments to the budget for the second fiscal
year, identified as the "proposed" budget in the final budget
document.
3.32.050 Budgetary definitions.
The following terms shall be defined for the purposes of this chapter as follows:
A. "Activity" means a specific and distinguishable service within a budgetary
program which is performed to fulfill a community need or to accomplish a matter for
which the government is responsible (e.g., the annual Fourth of July celebration is an
activity within the special events program).
B. "Department" means a designated organizational unit of the city
government (e.g., finance).
C. "Function" means a combination of programs and activities which are
authorized by budget appropriations and are designed to achieve a major purpose of
the city (e.g., recreation and parks).
D. "Fund" means a separate fiscal and accounting structure which
segregates accounting records for the various budgetary functions and is established
according to Section 3.32.050.
E. "Object accounts" means expenditure classifications according to the
types of items purchased or services obtained (e.g., operating supplies,
professional/technical services).
F. "Program" means an activity or a group of activities designed to achieve a
specific goal or objective associated with a budgetary function of the city (e.g., special
events is a program within the recreation and parks function).
3.32.060 Funds established.
A general fund shall be established for the accounting of all of the city's financial
resources not controlled by other funds established in accordance with this chapter.
A. The director of finance, with the approval of the city manager, shall
establish a separate fund whenever any of the following exists:
1. When required as a condition of the granting of funds by another agency;
2. When an isolated or independent audit trail is required by statute;
3. Where accounting practices within the general fund cannot adequately
distinguish the activities of the city that must be integrated with respect to program
activity or the sources of revenues and expenditures.
Ordinance No. 343
Page 3 of 5
3.32.070 Form of presentation.
The budgets for each fund, function and program of the city shall be arranged in
such a manner as to clearly show:
A. The anticipated expenditures for the fiscal period closing;
B. The actual expenditures for the prior fiscal year;
C. The most appropriate categorization by budgetary function.
3.32.080 Transfers between accounts and supplemental appropriations to originally
adopted budget.
Transfers between object accounts and expenditures in excess of budgeted
allocations may be effected only as provided in this section:
A. The city manager may approve transfers to adjust for operation,
maintenance and personnel expenditures between any program's object accounts as
long as the transfers are within the same budgetary function and the same fund
(subject to subsection C of this section).
B. All other transfers must be approved by action of the city council.
C. No full-time equivalent positions may be added to those specifically
approved in the budget document without the authorization and supplemental
appropriation of the city council.
D. All expenditures that are in excess of a fund's and/or function's budgeted
allocations must be approved by supplemental appropriation by the city council.
3.32.090 Public hearings.
Prior to the commencement of any fiscal year the budget is in effect, the city
council shall hold a public hearing on the budget.
3.32.100 Date of adoption.
The budget shall be adopted by the majority vote of the city council. If adopted
subsequent to July 1st, it shall take effect immediately upon adoption. During any
period in which a new budget has not been adopted, the prior year's budget shall be in
force and effect but shall be replaced retroactively by the new budget; provided,
however, expenditures shall not exceed the amounts approved in the new budget.
3.32.110 Filing of budget.
A copy of the budget shall be certified by the city clerk as adopted by the city
council and filed as a public record in the office of the city clerk.
3.32.120 Duplication.
Sufficient copies of the adopted budget shall be prepared the first year of the
two-year budget cycle to supply all council members and department heads. At least
two copies shall be available for public inspection in the offices of the city clerk, and to
the extent possible, additional copies shall be provided to public libraries within the city.
Ordinance No. 343
Page 4 of 5
Any subsequent amendments to the second year budget document adopted by the city
council shall be supplied in the same manner.
3.32.130 Midyear budget review.
The city manager shall provide the city council with a midyear status report on
the budget, as it compares to the adopted budget, including any recommendations the
city manager believes are appropriate.
PASSED, APPROVED and ADOPTED this 19th day of January 1999.
Al
MA •R'
ATTEST:
Y CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
whole number of members of the City Council of said City is five; that the forgoing
Ordinance No. 343 passed first reading on January 5, 1999, was duly and regularly
adopted by the City Council of said City at a regular meeting thereof held on January
19, 1999 and that the same was passed and adopted by the following roll call vote:
AYES: Byrd, Ferraro, Hollingsworth, Lyon, McTaggart
NOES: None
ABSENT: None
ABSTAIN: None
41 , /
CI ( LERK
Ordinance No. 343
Page 5 of 5
ORDINANCE/RESOLUTION NO.ORD. 343 FILE:602 X 1101
SUBJECT:AMENDING CHAPTER 3.32 (BUDGET ADMINISTRATION) OF THE RANCHO PALOS
VERDES MUNICIPAL CODE TO DESCRIBE AND CLP.ARIFY A TWO-YEAR BUDGET CYCLE.
INTRODUCED:1/5/99 ADOPTED:1/19/99 POSTED/PUBLISHED:1/21/99
ORDINANCE AND RESOLUTION DISTRIBUTION:
CITY ATTORNEY PUBLIC WORKS DEPT.
RICHARDS, WATSON & GERSHON PLAN. BLDG. & CODE ENFORCEMENT
333 SOUTH HOPE ST. , 38TH FLOOR RECREATION & PARKS DEPT.
LOS ANGELES, CA 90071 / CITY MANAGER DEPT. k�w �V.°\11
5ef #- � FINANCE DE PT. ML�,,,�a�
� BOOK PUBLISHING COMPANY ��,Z�i� � HOMEOWNERS ASSOCIATION
201 WESTLAKE AVE. NORTH APPLICANT
SEATTLE, WA 98109 cct-1- 9 SCHOOL DISTRICT
REGISTRAR SOUTH BAY MUNICIPAL COURT
12400 E. IMPERIAL HIGHWAY 825 SOUTH MAPLE AVE.
NORWALK, CA 90651-1024 TORRANCE, CA 90503
ATTN: ELECTIONS ADM. ATTN: EXECUTIVE OFFICES
(STREET VACATIONS/EASEMENTS/ LEAGUE OF CALIFORNIA CITIES
ABANDONMENTS/ NAME CHANGES/ 702 HILTON CENTER
DEDICATIONS/TRAILS) LOS ANGELES, CA 90017
L.A. COUNTY REGISTRAR-RECORDER L.A.COUNTY DEPT.OF PUBLIC
12400 E. IMPERIAL HIGHWAY PUBLIC ROADS
NORWALK, CA 90651-1024 ATTN: CITY SERVICES
P.O. BOX 1460
L.A. COUNTY ASSESSOR ALHAMBRA, CA 91802-1460
500 WEST TEMPLE STREET
LOS ANGELES, CA 90012 STATION COMMANDER
(OWNERSHIP, EXEMPTION & MAPPING DIV. ) 16123 NARBONNE AVENUE
LOMITA, CA 90717
S0. CALIFORNIA GAS COMPANY
2929 182ND STREET COX CABLE
REDONDO BEACH, CA 90278-3922 43 PENINSULA
ATTN: M. LOW ROLLING HILLS EST. , CA 90274
SO. CALIFORNIA EDISON COMPANY � INSTITUTE OF GOVERNMENTAL //=r9�
P.O. BOX 2944 STUDIES
TORRANCE, CA 90509 LIBRARY, 109 MOSES HALL
UNIVERSITY OF CALIFORNIA
CALIFORNIA WATER SERVICE CO. BERKELEY, CA 94720
5837 CREST ROAD WEST J/94/9 q
RANCHO PALOS VERDES, CA 90275 -1- 6t`4Ci Ry�'�
GENERAL TELEPHONE COMPANY -p&( K e z 4/ H€1J/j d et,-
22715 HAWTHORNE BLVD. � �� �a-4-1 ° "
TORRANCE, CA 90505 1,7d4 �/re
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PACIFIC TELEPHONE COMPANY
19310 GATEWAY DRIVE, RM. 208
TORRANCE, CA 90502
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REVISED 6/98