Attachment A - Informational CCR 2021-22 - Tentative Adoption.pdf

ATTACHMENT A 
 
 
 
Adoption of the Annual Tentative 2021-2022 Budget Ordinances 
 
This report provides backup information to items on the June 2, 2021 Council Formal 
agenda regarding adoption of the Tentative 2021-2022 Budget ordinances.  These are 
the annual steps required by City Charter and State Law. 
 
State law requires adoption of the annual Tentative Budget ordinances, followed by two 
consecutive weeks of publication of the adopted Tentative Budget in the legally 
prescribed format.  Detailed budget schedules prepared on forms provided by the State 
Auditor General’s Office in accordance with state law are attached to this report.  
 
Adoption of the Tentative 2021-2022 budget ordinances requires the following:   
 
1. Holding a public hearing 
 
2. Adoption of the Tentative 2021-2022 Budget ordinance. This ordinance adopts the 
portion of the Tentative Budget financed from operating resources. It represents the 
2021-2022 Budget approved by the City Council on May 18. 
 
3. Adoption of the Tentative 2021-2022 Capital Funds Budget ordinance. This 
ordinance adopts the portion of the Tentative Budget financed from capital funds and 
is included in the first fiscal year of the 2021-2026 Capital Improvement Program. 
 
4. Adoption of the Tentative 2021-22 Reappropriated Funds Budget ordinance. This 
budget ordinance is required to rebudget funds that were contractually committed in 
the prior fiscal year but not yet fully expended. Since budget appropriations expire 
on June 30 of each fiscal year, this ordinance re-establishes the appropriations for 
payment of vendors as goods and services are received. 
 
For example, on November 4, 2020, the City Council awarded a contract to 
Insituform Technologies, LLC to provide design-bid-build services in support of the 
Small Diameter Sanitary Sewer Rehabilitation 2020 project. The amount of the 
contract was $4,705,708, which was encumbered, or committed using the 2020-
2021 Wastewater Capital funds budget appropriation. However, to-date payments 
on this contract have not yet occurred and will extend into fiscal year 2021-2022. 
The contract amount is included in the Reappropriated Funds ordinance to ensure 
the spending authority is in place for future payments made on this contract during 
the 2021-2022 fiscal year. 
 
REMAINING STEPS 
Following this action, the Tentative 2021-2022 Budget information will be advertised for 
two consecutive weeks in accordance with state law.  
 
State law also requires adoption of the Final 2021-2022 Budget ordinances following the 
two weeks of advertised publications of the adopted Tentative Budget.  The City Charter 
requires Council adopt the budget on or before the last day of June each year. As a

result, adoption of the Final 2021-2022 Budget is scheduled for the June 16, 2021 
Council Formal meeting.  The June 16, 2021 actions will include the Final 2021-2022 
Budget ordinance, the Final 2021-2022 Capital Funds Budget ordinance, and the Final 
2021-2022 Reappropriated Funds Budget ordinance.  Both state law and the City 
Charter require holding public hearings prior to adoption of the Budget ordinances. 
 
Also on the June 16, 2021 agenda there will be several items necessary to close out the 
current fiscal year and prepare for the annual independent audit.  A separate City 
Council Report will be provided explaining these funding plan close-out items for the 
June 16, 2021 agenda. 
 
The 2021-2022 Property Tax Levy will be brought forward for adoption on July 1, 2021, 
as state law requires this to occur at least 14 days after adoption of the Final Budget.  
The City Charter requires adoption of the Property Tax Levy no later than the last 
regularly scheduled meeting in July.  Based on the May 18, 2021 City Council action, 
the levy will reflect a total property tax rate of $2.1196 per $100 of assessed valuation.