Minutes - Charter Commission - 02/23/1984

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TO: FROM: DATE: RE: Lloyd Schnelle, City Administrator Jeanne Moen, City Accountant February 23, 1984 City Charter Per the City Administrator§ and City Attorney§ request, I reviewed Chapter 7 of the revised charter and found the following items discussed previously with the charter commission, which in my opinion continue to present problems. Section 7.04.01 The requirement that a budget be adopted for all city f~ds. This will increase the complexity and cost of~e annual financial statement, and will take away from the organization of the report. This will also require the i~clusion of meaningless information and comparisons. It is my understanding that budgets are legally required for all General and Special Revenue funds. The council may request budgets for any additional fundS they may determine necessary. Section 7.11 This continues to confuse "Tax Anticipation Certificates" and "Certificates of Indebtedness". The requirements for issuance stated in this section'imply and are patterned after those for "tax Anticipation Certificates" however, the second line refers to "Certificates of Indebtedness". Certificates of Indebtedness are sold to finance capital equipment purchases for police and public works in anticipation of taxes and aids to be levied in the future, not taxes and aids levied in previous years. Section 7.07.02 "Any obligation incurred by any person in the employ of the city for any purpose not authorized in the budget resolution, or for any amount in excess of the amount authorized, shall be a personal obligation upon the person incurring the obligation" I question whether this wording is needed and/or reasonable, especially in light of the language in the previous section allowing the City Administrator to authorize purchases up to an amount determined in a purchasing policy.