2003-23
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BILL NO. 2003-23
AN ORDINANCE RELATING TO CITY GOVERNMENT;
MODIFYING AND CLARIFYING FINANCIAL AND
BUDGETING PROCEDURES; AMENDING SECTIONS 7.01,
7.02,7.03,7.05,7.06,7.07,7.08,7.09,7.10,7.11, 7.12, 7.13,
7.14,7.15 AND 7.16 OF THE RICHFIELD CITY CHARTER;
REPEALING SECTION 7.04 FROM THE RICHFIELD CITY
CHARTER; ADDING A NEW SECTION 7.17
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Backqround; findinqs; authority.
1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to
the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act).
1.02. The Charter Commission of the City has proposed the adoption of certain
Amendments to Chapter 7 of the charter and has recommended to the City Council that
the Amendments be adopted by City Council ordinance in the manner prescribed by
Section 410.12, Subdivision 7, of the Act.
1.03. A public hearing on the Amendments was held on November 12, 2003 by the City
Council after two weeks' published notice containing the text of the Amendments as
required by the Act. The notice contained a brief description of the nature and scope of
the Amendments. All persons desiring to be heard with reference to the Amendments
were heard at the public hearing.
1.04. The Council finds and determines that it is in the best interests of the City and its
inhabitants that the Amendments be adopted.
Section. 2 Adoption; effective date; filinq.
2.01. The Amendments as proposed by the Charter Commission are adopted.
2.02. Section 7.01 of the Richfield City Charter is amended to read as follows:
Section 7.01. Council to Control Finances. The Council sh311 h3vo full
3uthority over controls the financial affairs of the City, 3nd sh311. The
Council must provide for .QLthe prompt collection of a-lt revenues, (ii) the
preservation of 3nd othor assets, .illll the auditing 3nd settlemont of City
accounts. and (iv) aM the safekeeping and disbursemonts proper
disbursement of public monies.
2.03. Section 7.02 of the Richfield City Charter is amended to read as follows:
Section 7.02. Fiscal Year. The fiscal year of the City sh311 bo is the
calendar year.
2.04. Section 7.03 of the Richfield City Charter is amended to read as follows:
Section 7.03. System of Taxation. Subject to the state_constitution,
and except as forbidden by it or by state logisl::ttion law, the Council &A-a-lt
h3vo full powor to may provide by ordin3nco resolution, preceded by notice
and public hearing, for a system of loc3tion local taxation. In the taxation of
real and personal property Je cuch, the City chJII the system of local taxation
must conform as fully as possible to tho gonor31 state law a&--ffi in the
3ssossmont valuation of SHffi property and the collection of SHffi the taxes.
2.05. Section 7.04 of the Richfield City Charter is repealed.
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2.06. Section 7.05 of the Richfield City Charter is amended to read as follows:
Section 7.05. Preparation and Submission of Annual Budget. +He
City M::m::lgor ch::lll, at At a special budget meeting of the Council on or
before tho firct Tuocd::lY in September 15, the City Manager must submit to
the Council a proposed budget and ::In oxpbn::ltory .9. budget message in a
the form and m::lnner containinq the information ::lS proccribod specified in
Section 7.06. For cuch purposo ::lnd ::It such d::lto ::lC ho or sho ch::lll
dotermino, In preparinq the budqet and the budqet messaqe, the G+ty
Manager &AatI must obtain from tho hO::ld of o::lch City department heads
information regarding .ill tho ch::lr::lctor, objoct ::lnd dot::lilc of proposed
expenditures togothor with cuch othor supporting d::lt::l ::lC ho or cho m::lY
roquoct, including ::In octim::lto of ::lll for the ensuinq fiscal year, and (ii) capital
projects Sf and capital expenditures which o::lch dop::lrtmont hO::ld com~idors
should proposed to be undertaken in hie or hor dop::lrtmont for the ensuinq
budget year and in the noxt fivo followinq four fiscal years. In prop::lring the
budgot tho City M::ln::lger The Council &AatI must reviow tho ostim::ltoc, ch::lll
hold one or more informational hO::lrings thoreon meetinqs on the proposed
budqet at which the public may provide comments and may thereafter revise
estim::ltoc, the proposed expenditures and capital proiects contained in the
proposed budqet document ::lC ho or cho m::lY doom ::ldvic::lble.
2.07. Section 7.06 of the Richfield City Charter is amended to read as follows:
Section 7.06. Form of Annual Budqet. Subdivision 1. The budget
sh::lll provide must contain a comploto financial plan of ::lll funds for the
ensuinq budget fiscal year. which sh::lll The financial plan must include: fat
.ill a budget message, fBf illl a general summary of the financial plan, (Bt illll
dot::liled estimates of ::lll ::lnticip::ltod revenues applicable to proposed
expenditures, and, tG1 ili1 aU proposed expenditures. +He proposed
Proposed expenditures &AatI may not exceed tHe proposed revenues. +He
Proposed expenditures for the general and special revenue funds &AatI must
.ill be listed by organization... unit or activity... and illl &AatI be in parallel
columns opposite the ch::lr::lctor ::lnd major Sf and minor object of the
expenditure showing the amount of 6tK3-R expenditure for the last complotod
fiscal year, the amount estimated for the current budgot fiscal year and the
proposed expenditures for the ensuing budget fiscal year. In funds othor
#laR The revenues attributable to each general and special rovonuo, fund tHe
propocod oxponditurec sh::lll must be presented in ::In undorct::lnd::lblo 9-
similar manner ::lccording to tho discrotion of tho City M::ln::lgor. The G+ty
M::ln::lgor ch::lll cubmit ::l dot:Jilod statement of revenues in columnc for tho
gonor::ll ::lnd spoci:::tl revonuo fundc for tho bst complotod fisc::l1 YO::lr, tho
omount oct::lblichod for tho current budgot YO::lr ::lnd tho ::lmount ostim::ltod for
tho noxt budgot YO::lr. Such dot::lil ch::lll must include the source of and
amount of miscellaneous revenues, the amount of surplus of prior fiscal year
revenues... and the amount of revenues raised by property taxes in the prior
fiscal year and estimated to be raised in the current fiscal year. Rovonuos
for coif supporting ::lnd othor fundc ch::lll bo prosontod in ::In undorct::lnd::lblo
m::lnner ::lccording to tho diccrotion of tho City M::ln::lgor. Tho oxpbn::ltory
budgot mocs::lgo m::lY bo cop::lr::lto but ctill ::lccomp::lnying tho budgot, ::lnd bo
in tho form ::lnd with contontc ::lC followc:
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Subd. 2. The Budget Message.:. Curront Opor::ltions: The budget
message may be submitted by the G+ty Manager as a separate document ffif
tho Council eh::lll bo oxpbn::ltory of but it must accompany the budget. The
message &AatI must contain the followinq elements.
(i) Current operations. The budqet messaqe must explain the
budqet. The messaqe must contain an outline of the proposed financial
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2.09. Section 7.08 of the Richfield City Charter is amended to read as follows:
Section 7.08. Enforcement of the Budget. The Qty. Manager ~
must ctrictly enforce the provisions of the budget 3C cpocifiod in tho
rosolution. The GHy Manager &RaU may not authorize or approve any
expenditure unless an appropriation has been made in the budget resolution
and there is an available unencumbered balance of the appropriation
sufficient to pay the liability to be incurred. Ne An officer or employee of the
City sflaU may not place aRy an orderc order or make aRY Q purchase except
for the purposes authorized in the budget. APry An obligation incurred by aRY
Q person in the employ of the City for aRY Q purpose not in the approved
budget or for aRy an amount in excess of tRe an amount appropriated in the
budget resolution or in excess of available monies in aRY Q fund of the City
m::lY bo considered is a personal obligation ~ of the person incurring the
expenditure.
2.10. Section 7.09 of the Richfield City Charter is amended to read as follows:
Section 7.09. Altering or Adiustinq the Budget. After the budget ~
Rave has been ffiHy adopted, the Council sh::lll h::l'.'o no pO'Nor to may not
increase the amounts fixed in the budget resolution, by the insertion of new
items or otherwise, boyond in an amount more than the estimated revenues,
unless the actual receipts exceed the estimates and then not beyond more
than the actual receipts. The Council may ::It ::lny time, by resolution
::lpprovod by ::l four fifthc m::ljority of its momborc, reduce the sums
appropriated for any purpose by the budget resolution. Within three months
followinq the close of the fiscal year. the Council. At at the request of the
Manager, within tho l::lst threo monthc of the ficc::l1 ye::lr, tho Council may
transfer unencumbered appropriation balances for that fiscal year from one
office, department or agency to another within the same fund. AU
::lppropri::ltions Appropriations sflaU lapse at the end of the budget year to the
extent that they ch::lll not have not been expended or I::lwfully encumbered.
2.11. Section 7.10 of the Richfield City Charter is amended to read as follows:
Section 7.10. Emergency Appropriation in Budqet. The Council may
include an emergency appropriation as a part of the budget but not oxcoed
more than three por centum percent of the total operating appropriations
made in the budget for that year. A transfer from the emergency
appropriation to ::lny othor another appropriation &RaU may be made eRty
Hf*ffi by resolution on recommendation of the City Manager or a member of
the Council ::lnd by ::l m::ljority voto of tho Council. The funds tffiffi. so
appropriated sflaU may be used only for the purposes designated by the
Council.
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2.12 Section 7.11 of the Richfield City Charter is amended to read as follows:
Section 7.11. Disbursements. How Made. Ne Except as otherwise
provided in this section. dicburcomont disbursements of City funds sflaU may
be made except only by check bearing the actual or facsimile signature of the
Qty. Manager and the treasurer. No such A check sRaU may not be issued
unless the claim to which it relates specifies the purpose for which the
disbursement is made and the fund upon which it is drawn, and the claim has
been supported by an itemized bill, payroll, or time sheet approved and
signed by the responsible City officer who vouches for the correctness and
reasonableness theroof of the claim. The Council may by ordinance make
further regulations for the safe-keeping and disbursement of the funds of the
City, includinq, the disbursement of funds for the payment of bills and
obliqations by electronic means.
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2.13. Section 7.12 of the Richfield City Charter is amended to read as follows:
Section 7.12. Funds to be Kept. There sRaJ.j. must be maintained in
the City treasury the funds provided for in tho following this cubdivisions:
section.
Subdivision 1. General Fund: The General Fund is established for the
payment of aU general government expenses and those obligations ef that
the City ac tho Council m3Y 6eem deems proper. Into this fund sRaU are to
be paid aU monies not otherwise provided horoin, or by statute~ or by
ordinance or this Charter to be paid into any other fund.
Subd._2. Liquor Special Revenue Fund: Other Special Revenue
Funds:.:. A Liquor Special Revenue Fund is established aHG into which sRaU
are to be paid .ill tho profits from public servico enterprisos, including tho
profitc from tho liquor store, net revenues (i.e., qross revenues less costs of
operation. maintenance and pledqed revenues) of the municipal liquor store,
.illl proceeds ffem of special tax levies to support the fund. and {lill other
special revenues so desiqnated bv the Council. Thoro shall bo p3id out of
thic fund monios f{)r such purposos Expenditures from the Liquor Special
Revenue Fund may be made only as authorized by the budget resolution~
providod, howovor, th3t such monios. Monies in the fund may be HSeG
expended for capital improvements of tho typo for which tho City \vould bo
onlv if authorized to iscuo gonor31 oblig3tion bondc only by ordinance. The
Council may bv resolution establish other special revenue funds and provide
for the expenditure of those funds.
_ Subd.:. 3. Utilitv: or Othor Public Sop/ico Enterprise Funds:-.:. One or
more utility or etRef public service enterprise funds are to be established into
which sRa>> are to be paid 311 monoy dorivod from tho c310 of bondc icsuod on
account of any municip311y ownod utility or onterpriso 3nd 311 monoy dorivod
from tho s310 of utility or othor public entorpriso corvicos 3nd from tho s310 of
3ny proporty 3cquirod for or usod in connoction with 3ny such utility or
ontorpriso 0) the qross revenues of the appropriate utility or enterprise. (ii)
the proceeds of the sale of assets of the utilitv or enterprise. and (iii) the
proceeds of bonds or other obliqations issued for the purposes of the utility or
enterprise. Thora sh311 bo p3id out Out of each of this fund are to be paid the
Ge&t costs, includinq the financinq costs of the purchase, construction,
operation, maintenance and repair of StH:7R the utility or enterprise, including
tho princip31 of 3nd intorast upon oblig3tion which h3vo boon or sh311 bo
icsuod on itc 3ccount and other revenues as directed by the budget
resolution. Separate funds sRaU must be established and kept for 311 utilitios
or public sorvico ontorprisos which 3ro opor3tod cop3r3toly each separate
utilitv or enterprise.
Subd. 4. Trust and Aqencv Funds:.:. There are to be established Gfle
one or more trust and agency funds for the care and disbursement of money
received and held by the City as trustee or custodian or in the capacity of an
agent for individuals or other governmental units.
Subd. 5. Discretionary Fund. A Discretionary Fund is established for
payment of reasonable and necessary expenses, not otherwise payable by
the City as compensation, incurred by the Mayor and Council Members for
the benefit of the City 3nd itc peoplo. Appropriations to and expenditures
from this fund shJII not exceed $500 per YOJr are in the amounts fixed in the
budqet resolution. The Council may by resolution establish the purposes and
procedures for the making of disbursements from this fund, 9tH including
disbursements made without previous Council authorization sRaJ.j. and those
disbursements Be are subject to audit and allowance by the Council.
Subd. 6. In addition to the foregoing funds, there may be maintained
in the City treasury, whonevor tho Council doems it 3d'.'ic3blo; f-B ill one or
more working capital or revolving funds, for financing self-sustaining activities
not accounted for through other funds; and t2-t {ill such other funds as may
be required by Ct3tuto or law, ordinance or the Charter.
Subd. 7. +Re Council may make interfund loans by resolution where
permitted by law except from Trust and Agency funds.
2.14. Section 7.13 of the Richfield City Charter is amended to read as follows:
Section 7.13. Accounts and Reports. The accounts of the City sHalt must be
maintained on an accrual or modified accrual basis in accordance with
generally accepted governmental accounting standards and procedures.
The Gtty Manager sHalt must submit such reports as 'Nill be are necessary fA.
effief to keep the Council fully informed of the financial condition of the City.
Once each year on or before tho 30th d3Y of June 30, the City Manager sHalt
must submit a complete financial report of the City for the preceding fiscal
year ending December 31, a summary of which sHalt must be published in
the official newspaper. The Gtty Manager, under the direction of the Council,
on or before June 30 of o3ch YC3r, sHalt must prepare at least one
comprehensive public information report of the financial affairs of the City.
S3id report ch311 bo 3n inform3ti'le typo, 3nd ch311 be dictributod Citywide
The Manaqer must distribute the report to the persons and orqanizations and
in the manner deemed advisable by the Manager.
2.15. Section 7.14 of the Richfield City Charter is amended to read as follows:
Section 7.14. City Indebtedness. Except as provided in Sections 7.15 and
7.16, 00 obligations sHalt may not be issued to pay current expenses, but the
Council may issue and sell obligations for any other municipal purpose in
accordance with law and within the limitations prescribed by law. Except in
the case of obligations for which an election is not required by this Charter or
by state law, no cuch obligations sHalt may not be issued and sold without
the approval of the majority of the rogistored voters of the City voting on the
question at a general or special election. Before submitting a question to the
voters under this Section, the Council must conduct at least one public
hearing on the question preceded by published notice public hod in 3
nowcp3por(s) coloctod by tho Council not more than 28 days nor less than
14 days prior to the hearing.
2.16. Section 7.15 of the Richfield City Charter is amended to read as follows:
Section 7.15. Tax Anticipation Certificates. At any time after January 1,
following the making of an annual tax levy, the Council may issue certificates
of indebtedness in anticipation of the collection of taxes levied for any fund
and not yet collected. The total amount of certificates issued against any
fund for any year with interest thereon until maturity sHalt may not exceed
90% of the total current taxes for the fund uncollected at the time of
issuance. Such cortific3tos Certificates sHalt may be issued on such terms
and conditions as the Council may determine but they shall become due and
payable not later than the first day of April of the year following their
issuance. The proceeds of the tax levied for the fund against which tax
anticipation certificates are issued and the full faith and credit of the City s4aU
must be irrevocably pledged for the redemption of the certificates in the order
of their issuance against the fund.
2.17. Section 7.16 of the Richfield City Charter is amended to read as follows:
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Section 7.16. Emerqency Debt Certificates. If in any year the receipts from
taxes or other sources should from some unforeseen cause become
insufficient for the ordinary expenses of the City, or if any calamity or other
public emergency should subject the City to the necessity of making
extraordinary expenditures, the Council may by resolution issue and sell on
such terms and in such manner as the Council determines emergency debt
certificates to run not to exceed two mature within three years. A tax
sufficient to pay principal and interest on such certificates '....ith the m:Jrgin
required by I:Jw sh:J1I must be levied as required by law. The resolution
authorizing an issue of such emergency debt certificates sRa-U must state the
nature of the emergency and be approved by a majority of all the members of
the Council.
2.18
Chapter 7 of the Richfield City Charter is amended by adding a new section as
follows:
Section 7.17. State Budqet Procedure. If state law specifies a
schedule and procedure for the adoption of the budget and levy of taxes that
is different from that provided in sections 7.05 through 7.07 of this charter,
the schedule and procedure in state law supersedes the schedule and
procedure in this charter.
2.19 This ordinance is effective ninety (90) days after its publication, except that if within
sixty (60) days after publication a petition requesting a referendum on this ordinance,
signed by the number of registered voters of the City required by the Act is filed with the
City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on
the question of its adoption at the special election called by the Council for that purpose.
2.20 On the effective date of the Amendment, the City Clerk is authorized and directed to
file copies of the Amendment with the Secretary of State of the State of Minnesota, the
Hennepin County Recorder, and the City Clerk's office together with the certificate required
by Section 410.11 of the Act.
Passed by the City Council of the City of Richfield, Minnesota this 12th day of
November, 2003.
/?7;.J~zA lU
Martin J. Kirscb,...Mayor
ATTEST' W t
~ \/(\~ /)/l...(.A./)...- Jivc Vw
Nancy Gibbs, City Clerk
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newspapers
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief
Sun-Current
, and has full
Financial Officer of the newspaper known as
knowledge of the facts stated below:
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minn. Stat. s331A.02, s331A.07, and other applicable
laws, as amended.
(8) The printed public notice that is attached was published in the newspaper once each week,
for ~ successive weeks; it was first published on Thursday, the ~ day of
November ,2003, and was thereafter printed and published on every Thursday to and
including Thursday, the _ day of
, 2003; and printed below is a copy of the
lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the
I size and kind of type used in the composition and .,8Yblicabon of th
abcdefghiJklmnopqrst~yz ,
t
Subscribed and sworn tQ~or affirmed J~fore me
0[1 thiS~ day of Y / If I L J , b003.
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'1 )/ (, ~ I ttl 1 n Ir .-M rt)(J ~.J~
Nota\:~lil MERID~L M. HEDBLOM) I-
NOTARY PUBLlC.MINNESOTA
MY COMMISSION EXPIRES 1.31-2005
B e
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
$
2.85 Der line
(2) Maximum rate allowed by law
$
6.20 Der line
(3) Rate actually charged
$
1.40 per line
City of Richfield)
SUMMARY PUBLICATION
BILL NO. 2003-23
AN ORDINANCE RELATING TO CITY GOVElL.,..
MENT; MODIFYING AND CLARIFYING
FINANCIAL AND BUDGETING PROCEDURES; !, I
AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, 7.06,
707,7.08,7.09,7.10,7.11,7.12,7.13,7.14,7.15 AND i I
7.16 OF THE RICHFIELD CITY CHARTER; I
REPEALING SECTION 7.04 FROM THE I
RICHFIELD CITY CHARTER; ADDING A NEW
- SECTION 7.17
The City Council of the City ~f Richfield has adopted Or- I '
dmance No. 2003-23. The ordinance amends Sections
7.01,7.02,7.03,7.05,7.06,7.07,7.08,7.09,7.10, 7.11, 7.12,
7.13,7.14,7.15 and 7.16 of the City Charter; adds a new
section 7.17, and repeals Section 7.04 ofthe City Charter.
The Ordinance simplifies and clarifies the City Charter re-
quirements regarding the City budget process and finan-
cial matters. By repealing Section 7.04 of the Charter, the
Ordinance also causes the City Council to serve as the
Board of Equalization for property tax matters. The full I
text of the ab~ve-referenced Ordina~ce is available for in-I
spectlOn at RIchfield CIty Hall durmg regular business
Dated: November 12, 2003 I
::I:ROER OF THE CITY COUNCIL ' I
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Naney 9.ibbs, City Clerk
(Nov. 27,2003)0212003-23