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2003-08-13 Agenda~a MEETING OF THE RICHFIELD CHARTER COMMISSION WEDNESDAY, 13 AUGUST 2003 EXECUTIVE CONFERENCE ROOM RICHFIELD CITYHALL 6:30 PM AGENDA Call to Order Roll Call Approval of Minutes Review of Work on Proposed Changes to the City Charter Report of Committees By Law Revision Committee Charter Revision Committee New Business Discussion of and vote concerning proposed ordinances changing the Richfield City Charter. Ms. Corrine Thomson, Richfield City Attorney, will be present to assist with our discussion Adjournment MEMO FOR: RICHHFIELD CHARTER COMMISSION MEMBERS FROM: JOHN L. EASTERWOOD PRESIDENT SUBJECT: CHARTER COMMISSION MEETING Wednesday, August 13, 2003 6:30 PM 1. We will meet at City Hall on Wednesday, August 13 at 6:30 PM. 2. With this memo you will find the ordinances that-propose changes to the City Charter. In the cases of Chapters 5 and 7natou fannoVtationcThe annotated do uments are onhyellohw papers same document with expla ry 3. The purpose of the meeting is to vote on the ordinances you find included with this mailing. Those that are approved by majority vote of the Commission will be passed on to the City Council for their consideration. 4. All of you, except for new members, have seen these proposed changes before and have had an opportunity to discuss them with the Commission. It has been some time since we looked at these things together. As you will recall, there was a work session with the City Council following the last meeting of the Commission. At the work session, the proposed changes to the charter were discussed. Most were received favorably by the members of the Council, at least by those who expressed an opinion. Some modifications, mostly minor, were incorporated into the proposed ordinances as a result of the discussion with the Council. In advance of the mo el effic et and take elss timeeif we arerall prepared ahead of again. The meeting will be time. Please feel free to call me with any questions. 5. There are some significant changes to the proposal ame adirriem eapofrthe League of Commission met with the City Council for a work session, Women voters appeared with a proposal regarding chapter 5. The League had apparently been discussing that chapter for some time. The League representative asked for some time to present their proposal to the Council. The Council agreed. The proposal of the League involves increasing the number of initial parties to petitions and increases the required percentage of voters that must sign a petition for it to become a valid instrument. A majority of the Council supported this proposal. Consequently, and at the request of the Council, I felt that it was appropriate to include the changes envisioned by this proposal in the final draft of the ordinance with the understanding that the Commission may choose to reject it. I asked the City Attorney to draft the ordinance with the changes written into the text. Please be sure that. you read this proposed ordinance with extra care before you come to the meeting. If the Commission chooses not to r can be amended to reflect the orig nal wordingue, the motion to pass the proposed ordinance 6. I thank all of you in advance for oocontatct me by temalrat ecaptin@att net any questions feel free to call me at 612-869 0509 7. If you. know that you cannot attend the meeting on August 13, please call me as soon as you get this notice. BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD CITY CHARTER THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background findings 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, Chapter410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of an Amendment to change council meeting requirements and-clarify-provisions-regarding council member terms of office and has recommended to the City Council that the Amendment be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. The form of the Amendment is set out in Section 2.02. 1.03. A public hearing on the Amendment was held on by the City Council after two weeks' published notice containing the text of the Amendment as required by the Act. The notice contain be heard w thcrepelrence t the Amendme t wee the Amendment. All persons desiring t 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 Amendment be adopted. Section. 2 Adoption effective date; filing. 2.01. The Amendment as proposed by the Charter Commission is adopted. 2.02. Section 2.03 of the Richfield City Charter is amended to read as follows: Section 2.03. Elective Officers. The Council s#all~e is composed of a Mayor and four Council Members, all of whom shall must be registered voters. The offices. of Mayor and at-large Council Member shall must be filled by election at large. The offices of the three district Council Members ehall must be elected from apportioned Council districts in which they reside. The Mayor and the Council Members shall each be elected to a four-year term with Mayor and the Council Member at-large in 1994 and each succeeding four years and the district Council Members elected in 1992 and each succeeding four years. The regular term of an office commences ee at the first regular or special council meeting in January ~- next following the general election at which balloting for the full term of office occurs and office holders shall serve until their successors are elected and qualified. A candidate for the office of district Council Member must reside whsle Seekltlg election and while serving in office within the district from which he or she is cal-Zasl9s~a RC 145-17 elected. Within two years after each United States Census the City Council shall by ordinance establish compact and contiguous districts to be apportioned by population as nearly equal as practicable. The three Districts shall be Eastern, Central and Western Richfield with dividing lines generally north and south. 2.03 Section 3.01 of the Richfield City Charter is amended to read as follows: Section 3.01. Council Meetings. Newt elected members of the Council shall will assume their duties at the first regular or special meeting of the Council in January following a regular municipal election. Thereafter, the Council shaft wdl meet at s+~sh the times each month as ed-established by-ordinance or resolution. The Mayor or any two members of the Council may call special meetings of the Council upon at least twelve hours notice to each member of the Council. ash The notice shaft must be delivered personally to each member or be left at the Member's usual place of residence with some o~~ meo±?^^~ Meetings of the Council chaff-fie are responsible person. ~- ,+ .,.,., ~;+~~on public, except as otherwise permitted or required by law. a-n • • s"~l~~,o ~~~~~~~ Any person may inspect the minutes and records t~hereef of the meetings at aft reasonable times. 2.04. 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. 2.05. 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 day of .2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk CAH-225198v2 RC 145-17 BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE RICHFIELD CITY CHARTER THE CIN OF RICHFIELD DOES ORDAIN: Section 1. Background findinas~ 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 Amendments to certain sections of the charter and 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. The form of the Amendments is set out in Sections 2.02, 2.03 and 2.04 of this ordinance. 1.03. A public hearing on the Amendments was held on 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; filing. 2.01. The Amendments as proposed by the Charter Commission are adopted. 2.02. Section 3.05 of the Richfield City Charter is amended to read as follows: Section 3.05. Procedure on Ordinances. The enacting clause of all ordinances shall be in the words "City of Richfield does ordain." Every ordinance shall be presented in writing. ~~ Except for an emergency ordinance every ordinance must be introduced at a meeting that occurs no less than fourteen (14) days before the meeting at which the ordinance is finally passed." 2.03. Section 4.07 of the Richfield City Charter is amended to read as follows: Section 4.07. Canvass of Elections. The Council shall meet and canvass the election returns at the next regular or special Council. meeting immediately following. any regular, primary or special election but in no event CAx-aa3s7s~2 RC 145-17 later than the time prescribed by state law, and shall make full declaration bf the results as soon as possible, and file a statement thereof with the City Clerk. This statement shall include: (a) the total number of good ballots cast; (b) the total number of spoiled or defective ballots; (c) the true vote for each candidate, with an indication of those who were elected or nominated; (d) a true copy of the ballots used; (e) the names of the judges and clerks of election; and (f) such other information as may seem pertinent. The City Clerk shall forthwith notify all persons elected or nominated of their election or nomination. In case of a tie vote, the Council shall determine the result by lot. The City Clerk shall be the final custodian. of the ballots. 2.04. Section 6.02, subdivision 3 of the Richfield. City Charter is amended to read as follows: Subd. 3. The City Manager shall appoint and remove, upon the basis of merit and fitness and subject to applicable civil service provisions, if any, the City Clerk, all heads of departments and all subordinate officers and employees in the departments. The Director of Public Safety, having administrative and supervisory control over the police and ~e other non- civil-service divisions of the Department of Public Safety, is not under the jurisdiction of the police and fire civil service commission of the City. Appointment or removal of department heads shall be made final only upon a majority vote of the Council. 2.05. 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. 2.06. 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 day of .2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk CAH-223878v2 RC 145-17 BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD CITY CHARTER; RELATING TO REQUIREMENTS FOR CERTAIN CAPITAL IMPROVEMENT PROJECTS THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background; findings; 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-an Amendment to repeat Sections 8.04 and 8:05 of the charter and has recommended o the City Council that the Amendment 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 Amendment was held on by the City Council after two weeks' published notice containing the text of the Amendment as required by the Act. The notice contained a brief description of the nature and scope of the Amendment. All persons desiring to be heard with reference to the Amendment 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 Amendment be adopted. Section. 2 Adoption; effective date; filin 2.01. The Amendment as proposed by the Charter Commission is adopted. 2.02 Chapter 8 of the Richfield City Charter is amended by repealing Sections 8.04 and 8.05 of that chapter. 2.03. 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. 2.04. 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 day of .2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk CAH-223897v2 RC 145-17 BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; 5.06. 5.07 AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, AND 5.20 5.08, 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, OF THE RICHFIELD CITY FIELD CITI( CHARTERA NEW SECTION 5.22 TO THE RICH THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background• findings 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 5 of the charter and has d Hance ent hetmannerltprescrbed by the Amendments be adopted by City Counal or Section 410.12, Subdivision 7, of the Act. by the 1.03. A public hearing on the Amendments was held on City Council after two weeks' published notice contaiscrg t on of the nature and scope of required by the Act. The notice contained a brief de p 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' filing. 2.01. The Amendments as proposed by the Charter Commission are adopted. 2,02, Section 5.01 of the Richfield City Charter is amended to read as follows: Section 5.01. Powers Reserved by the People. ferenduml and Richfield reserve to themselves the powers of initiative re recall to be exercised, in accordance with the provnsion~ thr^ Ch~th _ _ ._I _._~......~ OV/" rim I CAH-226414v3 RC145-17 Initiative is the process for voters to propose and adopt an ordinance. Referendum is the process to require an ordinance passed by the council to be referred to the voters for approval or disapproval Recall is the process for removing an elected public official from office Initiative and referendum may not be_ used with an ordinance that appropriates money authorizes the levy of taxes, or involves land use or zoning. 2.03. Section 5.02 of the Richfield City Charter is repealed. 2.04. Section 5.04 of the Richfield City Charter is amended to read as follows: Section 5.04. Initiation of Measures. Any five residents of the City who are registered voters may form themselves into a sponsoring committee for the initiation of ae-y an ordinance as permitted by section 5.01 of this Charter. Before circulating any petition +h° the committee must file an affidavit and its proposed petition ~~°:'?f°.°~ =-~~ ^f +h°ir pn~ese~rd,;^,~.nse with the City Clerk;. The affidavit must state that a committee has been formed, must contain, +^^°+h°r ~eci+h th°~r the names and addresses as of the committee members and must be signed by each member of the committee whose signatures must be verified by a notary public. ~y sly The committee must also attach a verified copy of the proposed ordinance to each of the signature papers herein described, together with the committee members' names and addresses as sponsors #~eree#. The ordinance must relate to only one subject which is clearly expressed in the petition Every circulator of a signature paper must be a resident of the state of Minnesota. 2.05. Section 5.05 c,f the Richfield City Charter is amended to read as follows: Section 5.05. Form of Petition and of Signature Papers. The petition for the adoption of any ordinance sttatl must consist of the ordinance, together with all the signature papers and affidavits #aae~ete attached. ~sl~ A petition shatl is not be complete unless signed by a number of registered voters equal to at least five percent of the total number of registered voters at the time of the last regular municipal election. All the signatures need not be on one signature paper, but the circulator of every ' si nq ature paper s~atl must make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. Each signature paper ahafl must be in substantially the following form: INITIATIVE PETITION CAH-226414v3 2 RC145-17 Proposing an ordinance to of h the (Stating the Purpose of the Ordinance). A certified a copy proms ordinance is ~ierete attached. Sronsoring Committee. This ordinance is sponsored by the following committee of City of Richfield residents who are registered voters: Name Address 1. 2. 3. 4. 5. Instructions to Petition Signers You are bein asked to si n a etition. You must be a resident of and a registered voter in, the City of Richfield Everv person signinq this etition must do so in the resence of the erson circulatin the etition It is a criminal offense to sign a name other than your own to the petition or to accept compensation for signinq Your name to the petition The undersigned registered voters, understanding the terms and nature of the ordinance attached, petition the Council for its adoption, or, in lieu thereof, for its submission to the voters for their approval. Date Legal Signature 1. Name (print legibly) Address (print legibly) 2. 3. The affidavit of the ( o„+;,,no.+ ~h~~~o must be attached at the end of each signature circulator ~-- paper.) 2.06. Section 5.06 of the Richfield City Charter is amended to read as follows: CAH-226414v3 RC145-17 Section 5.06. Filing of Petition and Action Thereon. All the signature papers mush be filed in the office of the City Clerk as one instrument. Within {"~-~; ten (10) working days after the filing of that petition, the City Clerk ehal-I must ascertain by examination, the number of registered voters in the City whose signatures are a-pper~~°~' +h°r°+„ attached and whether this number is at least ~e fifteen percent (~-15%) of the total number of registered voters at the time of the last regular municipal election. The validity of the signatures must be judged as of the day the petition was filed. If the City Clerk finds the petition ~ to be insufficient or irregular, the City Clerk s~ must at once notify. one.. or_more of the sponsoring committee of that fact,-certifying the reasons-for the finding.- l"he committee shall then be given thirty (30) days in which to file additional signature papers and to correct the petition in all other particulars. If at the end of that period the petition is found to be -still insufficient or irregular, +t Sn^~~ h° fil°~ h~. the City Clerk shall file the petition in the City Clerk's office and noti each member of the committee °"°'~I-Ae-n^~~f~°.. of that fact h ~y-~Glerk. The final finding of the insufficiency or irregularity of a petition ehatl does not prejudice the filing of a new petition for the same purpose, nor e~ does it prevent the Council from referring the ordinance to the voters at the next regular or special election at its option. 2.07. Section 5.07 of the Richfield City Charter is amended to read as follows: Section 5.07. Action of Council on Petition. When the petition is found to be sufficient, the City Clerk s#a~-I must so certify to the Council at its next meeting, stating the number of ~etatiener~ valid signatures on the petition and the percentage of the total number of registered voters at the time of the last regular municipal election which they constitut°,G--~„~'~~. The Council shall at once read the ordinance and may refer it to an appropriate committee. The committee or Council must hold a public ~ea~iags hearin upon the ordinanc°, ^~*°r +h° hr+lrlinn of ~~ihinh tho After the public hearing, but not later than sixty-five (65) days after the City Clerk date-u-psr~ ~.~hi.~h ;+ ,.,-.~ submitted the ordinance to the Council h., +"° ~;+„ ~'°rlr the Council must take final action on the ordinance. If the Council fails to pass the proposed ordinance, or passes it in a form different from that set forth in the petition and unsatisfactoryto the sponsors, the proposed ordinance sib must be submitted by the Council to a vote at the next regular municipal election, but if the r,T~,m,;;°~~t-~~;~~ a; number of valid signatures on the petition is equal to at least fi#een twen percent (~ 20%) of the total number of registered voters at the time of the last regular municipal election, the Council s~ must call a special election upon the measure. Such special election. must be held not less than fkA} fi 50 nor more than sixty-five (65) days from date of final action on the ordinance by the Council or if there- has been no final action, from a#er the CAH-226414v3 RC145-17 expiration of sixty-five (65) days from the date of submission to the Council ,~T~,h "^ h°°n r,,, f,..^~ ^.-+;^n; but if a regular election is to occur within three months, the Council r-na-y must submit the ordinance at that election. If the Council passes the proposed ordinance with amendments and at least four-fifths (4/5) of the sponsoring committee do not express their dissatisfaction with such amended form by a statement filed with the City Clerk, within ten (10) days of the passage thereof by the Council, the ordinance need not be submitted to the voters. 2.08. Section 5.08 of the Richfield City Charter is amended to read as follows: Section 5.08. Initiative Ballots. The ballots used-when voting upon any such proposed ordinance s~ must state the substance of the ordinance and sbatl must give the voters the opportunity to vote either "yes" or "no" on the question of adoption. If a majority of -the votes on any such ordinance are in favor of it, it c,",c!! +"°r°:^~M~;~ h°nnm° becomes an ordinance of the City. Any number of proposed ordinances may be voted upon at the same election, but the voter s~ must be allowed to vote for or against each separately. In case of inconsistency between two initiated ordinances approved at one election, the one approved by the higher percentage of voters voting on the question °"^" ~r°~~°~' rep vails to the extent of the inconsistency. 2.09. Section 5.11 of the Richfield City Charter is amended to read as follows: Section 5.11. The Referendum. If prior to the date when an ordinance takes effect a petition signed by qualified registered voters of the City equal in number to tern fifteen percent (~ 15%) of the total number of registered voters at the time of the last regular municipal election is filed with the City Clerk requesting that any such ordinance be repealed or submitted to a vote of the registered voters, the ordinance ch~+ll +h°r°h~i "° is prevented from going into operation. All the s~nature gages must be filed as one instrument The City Clerk must ascertain by examination the sufficiency of the petition within ten (10~working days and must certify the results of that examination to the Council at its next regular meeting. The Council s#al•I must thereupon reconsider the ordinance ^+ ;+~ .,°.,+ r°^~ ~I^r ..,°°+;.,,., and by majority vote either repeal or affirm the ordinance as passed. If the ordinance is affirmed, the Council s#atl must immediately order a special election to be held thereon, or submit the ordinance at the next regular municipal election, pending which the ordinance sn^'~~,^~ remains suspended. If a majority of the voters voting on the ordinance is opposed to the ordinance, it s~ does not become effective; but if a majority of the voters favor the ordinance, it takes effect immediately or on the date therein specified. 2.10. Section 5.12 of the Richfield City Charter is amended to read as follows: CAH-226414v3 RC145-17 Section 5.12. Referendum Petition. The requirements laid down in Sections 5.04 and 5.05 above as to the formation of committees, the form of petitions and signature papers, and residency requirements for committee members and circulators, for the initiation of ordinances shall apply to the referendum but with such changes as may be necessary. A referendum petition shall read substantially as follows: REFERENDUM PETITION Proposing the repeal of an ordinance to (stating the purpose of the ordinance}-a. A certified copy of w#isf~ the ordinance is #~erete attached. Sponsoring_Committee The proposed repeal is sponsored by the following committee of Ci of Richfield residents who are registered voters: Name Address 1. 2. 3. 4. 5. Instructions to Petition Signers You are being asked to sign a petition You must be a resident of, and a registered voter in, the City of Richfield. Every person signing this petition must do so in the presence of the person circulating the petition. It is a criminal offense to sign a name other than your own to the petition or to accept compensation for s~ning your name to the petition. The undersigned qualified registered voters, understanding the nature of the ordinance hereto attached and believing it to be detrimental to the welfare of the City, petition the Council for its submission to a vote of the voters for their approval or disapproval. Date Legal Signature 1. 2. Name (print legibly) Address (print legibly) CAH-226414v3 6 RC145-17 3. ~ ~ 'The affidavit of the circulator m°^*~^^°~' "`'^"° must be attached at the end of the list of signatures.) 2.11. Section 5.14 of the Richfield City Charter is amended to read as follows: Section 5.14. The Recall. No less than 25 registered voters may form themselves in a committee for the purpose of bringing about the recall of any Council Member including the Mayor. If the committee-seeks the recall of a district Council Member, the registered voters constituting the committee shah must be from the Council Member's district. The committee ~k+a~-I must certify to the City Clerk the name of the Council Member whose removal is sought, a statement of the grounds for removal in not more than 250 words, and their the committee's intention to bring about his or her recall. A copy of this certificate shad must be attached to each signature paper and no signature paper shat} may be put into circulation previous to such certification. The grounds as set forth in the recall petition must be predicated on one or more charges of malfeasance, nonfeasance or both. For this purpose the word "malfeasance" means the performance of an act by a Council Member in his or her official capacity that is wholly illegal and wrongful and the word "nonfeasance" means the neglect or refusal, without sufficient excuse, to do that which it is the Council Member's legal duty to do so. 2.12. Section-5.15 of the Richfield City Charter is amended to read as follows: Section 5.15. Recall Petitions. The petition for the recall of any Council Member shaEl must consist of a certificate identical to that filed with the City Clerk together with all the signature papers and affidavits thereto attached. All the signatures need not be on one signature paper, but the circulator of every signature paper shall must make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. Every circulator of a signature paper must be a resident of the state of Minnesota. Each signature paper shad must be in substantially the following form: RECALL PETITION Proposing the recall of from the office as which recall is sought for the reasons set forth in the attached certificate. CAH-226414v3 7 RC145-17 Sponsoring Committee This movement is sponsored by the following committee of registered voters eligible to vote on candidates for that office. 1. 2. 3. Name Address [listingall members of the committee) Instructions to Petition Signers You are being asked to sign a petition You must be a resident of, and a registered voter in, the City of Richfield. Every person signing this petition must do so in the presence of the person circulating the petition. It is a criminal offense to sign a name other than your own to the petition or to accept compensation for signing your name to the petition. The undersigned registered voters, all being eligible to vote on candidates for that office, understanding the nature of the charges against the Council Member herein sought to be recalled, desire the holding of a recall election for that purpose. Date Legal Signature 1. 2. Name (print legibly) Address ,(print legibly) 3. At t~en~f- "° '~~e~slg~a#t>~es-s#atl # ~+~~ _+ho e~„~c,.,,+ The affidavit of the circulator must be attached at the end of the list of sianatures. 2.13. Section 5.16 of the Richfield City Charter is amended to read as follows: Section 5.16. Filing of Petition. Within thirty (30) days after the filing of the original certificate, the committee s~ must file the completed petition in the office of the City Clerk. The City Clerk sq~aN must examine the petition within the next {'~ ten X10 working days and if the clerk finds it irregular in any way, or finds that the number of signers is less than twenty-five percent (25%) of the total number of registered voters eligible to vote on candidates for that office at the last preceding regular municipal election, the CAH-226414v3 RC145-17 City Clerk s1~ must so notify one or more members of the committee. The committee shall then be given ten (10) days in which to file additional signature papers and to correct the petition in all other respects, but they the committee may not change the statement of the grounds upon which the recall is sought. If at the end of that time the City Clerk finds the petition still insufficient or irregular, the clerk a#atl must notify all the members of the committee to that effect and s~ file the petition in the City Clerk's office. No further action shall be taken thereon. 2.14. Section 5.17 of the Richfield City Charter is amended to read as follows: Section 5.17. Recall Election. If -the petition or amended petition is found sufficient, the City Clerk s#atl must transmit it to the Council without delay, and ebatl must also officially notify the person sought to be recalled of the sufficiency of the petition and of the pending action. If the Council Member sought to be recalled does not resign within ten (10) days after having been given such notice, the Council shall, at its next meeting occurring more than ten (10) days after the receipt by the Council of the recall petition, by resolution, provide for the holding of a special recall election not less than ~A 50 nor more than 45 75 days after such meeting, but if any other election is to occur within sixty (60) days after such meeting, the Council may in its discretion provide for the holding of the recall election at that time. If the special recall election involves a district Council Member, the recall election ~N must be conducted only within the district of such Council Member. If it involves several district Council Members, the election std must be conducted only within the districts of such Council Members. If it involves a Council Member who is elected at large, the election s#aN must be a City-wide election. 2.15. Section 5.18 of the Richfield City Charter Is amended to read as follows: Section 5.18. Procedure at Recall Election. The City Clerk salt must include with the published notice of the election the statement of the grounds for recall and also, in not more than 500 words, the answer of the Council Member concerned in justification of his or her course in office. The election s#al•I must be conducted as far as possible, in accordance with the usual procedure in municipal elections. 2.16. Section 5.19 of the Richfield City Charter is amended to read as follows: Section 5.19. Form of Recall Ballot. The form of the ballot at such election shall be: "Shall be recalled?" The name of the Council Member whose recall is sought and his or her ofFce shall be inserted in the blank. The electors shall be permitted to vote separately "Yes" or "No" upon this question. If a majority of those voting on CAH-226414v3 9 RC145-17 the question of recall vote in favor of recall, the official shall be thereby removed from office. 2.17. Section 5.20 of the Richfield City Charter is amended to read as follows: Section 5.20. Procedure to Fill Vacancy. In the event that a Council Member is recalled by the electors or resigns after a petition has been filed for his or her recall, the vacancy sfaafl must be filled in the following manner: If less than six months remain in the Council Member's term of office at the time of the recall election or at the time of resignation in response to a recall petition, as the case may be, the vacancy shall must be filled by the remaining members of the City Council for the unexpired term pursuant to Section 2.05. If six months or more remain in the Council Member's term at the time of such recall or resignation, the Council shad must call a special election to fill the vacancy for the balance of the Council Member's term. Such election shall must be called within ten (10) days after such recall or resignation, and the special election skull must be held not less than #~"~*~~) fift 50 nor more than sixty (60) days after the meeting at which the election is called. Candidates to fill the unexpired term sfiatl must be nominated in the usual way and the election shafl must be conducted as far as possible in accordance with procedures in municipal elections except that there shall be no primary election and the candidate receiving the highest number of votes for the office shall be elected to fill the unexpired term. 2.18. Chapter 5 of the Richfield City Charter is amended by adding a subdivision to read as follows: Section 5.22.Offenses; Penalty. It is unlawful for a person to: a sign a name other than that person's own name to an initiative, referendum or recall petition; b circulate an initiative or referendum petition without required attachments; c circulate an initiative referendum or recall petition when unqualified to do so; d sign an initiative referendum or recall petition when that person knows he or she is not qualified to do so; e make a false affidavit in connection with an initiative, referendum, or recall petition; CAH-226414v3 10 RC 145-17 f pay or offer to pay a person or receive payment or agree to receive payment for signing an initiative, referendum or recall petition; g. may or offer to pay a person, or receive payment or agree to receive payment on a basis related to the number of signatures obtained for circulating an initiative referendum, or recall petition. This subsection does not prohibit the payment of salary and expenses for circulation of the petition on a basis not related to the number of signatures obtained, as long as the circulators fully disclose all contributions received to the city clerk upon submission of the petitions. A violation of this section is a misdemeanor punishable in accordance with state law. 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 day of 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk CAH-226414v3 11 RC145-17 CHAPTER 5 INITIATIVE REFERENDUM AND RECALL Section 5.01. Powers Reserved b rLthe People. The people of Richfield reserve to themselves the powers of initiative referendum and recall to be exercised, in accordance with the provisions of this Charter, ' th it i+i +i„° r°f°r°nrli ~rr+ nr! r°gail- r°c.~r1°n+~~~°" Initiative is the-process for voters to~propose and adopt an ordinance Referendum is the process to require an ordinance passed by the council to be referred to the voters for approval or disapproval. Recall is the process for removing an elected~public official from office Initiative-and referendum may not be used with an ordinance that appropriates money authorizes the levy of taxes, or involves land use or zoning. NOTE.- The only substantiive change is to add "land use or zoning" ordinances to the list of ordinances for which initiative and referendum is not available. That is a codification of the Court of Appeals decision in Nordmarken v. City of Richfield. 1 reworded the section to make it more concise and reader-friendly. Section 5.02. ~°n~'~~'~°~TRef~S-~9-^ T'rpGr 9f--cr " ini+io+i of +hie c°n+inn i~ ~+ mic~iJ°m°~nnr vrcrn,..,............. ~ ...._~_..----- - NOTE: The U.S. Supreme Court ruled in Buckley v American Constitutional Law Foundation, Inc. (1999) that a prohibition on the use of paid circulators is unconstitutional. The prohibition on paying for signatures has been moved to section 5.22. Section 5.03. Further Regulations. The Council may provide by ordinance such further regulations for the initiative, referendum or recall, not consistent with this Charter, as it deems necessary. (Amended Bill 1982-20) Section 5.04. Initiation of Measures. Any five residents of the City who are registered voters may form themselves into a sponsoring committee for the initiation of a~ an ordinance as permitted by section 5.01 of this Charter. Before circulating any petition e#afl the committee must file an affidavit and its proposed petition with the City Clerk;. The affidavit must state that a committee has been formed, must contain, +nrv°+h°r ,.,;~~,~ the names and addresses as of the CAH-226414v2 RC145-17 committee members ,and must be signed by each member of the committee whose signatures must be verified by a notary public. they shatl The committee must also attach a verified copy of the proposed ordinance to each of the signature papers herein described, together with #~ei~ the committee members' names and addresses as sponsors thereef. The ordinance must relate to only one subject which is clearly expressed in the petition. Every circulator of a signature paper must be a resident of the state of Minnesota NOTE: This section has been modified to: (1) clarify that the sponsoring committee must be composed of residents of the City; (2) refer to section 5.01 rather than re-list the types of ordinances for which-initiative is not available; (3) require the sponsoring committee to submit an affidavit with their signatures (You may want to consider adding the form -of that affidavit in the charter); (4) add an express requirement that the ordinance must relate to only one subject (which court decisions already require); (5) add a requirement that circulators must be residents of the state of-Minnesota:- The Eighth Circuit Court has upheld a similar residency requirement in Initiative & Referendum Institute v. Jaeger (2001). ADDED NOTE: At least two cities add a requirement that the proposed ordinance be reviewed by the city attorney before the committee may circulate the petition. Another requires the city clerk to approve the petition before it can be circulated. I have some concerns about that type of provision and would prefer to discuss the concept with and receive direction from the commission. Section 5.05. Form of Petition and of Signature Papers. The petition for the adoption of any ordinance s#atl must consist of the ordinance, together with all the signature papers and affidavits #~erete attached. ~SY~ A petition is not ~e complete unless signed. by a number of registered voters equal to at least five percent of the total number of registered voters at the time of the last regular municipal election. All the signatures need not be on one signature paper, but the circulator of every eu~ signature paper s#atl must make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. Each signature paper s~ must be in substantially the following form: INITIATIVE PETITION Proposing an ordinance to the Purpose of the Ordinance). A certified a #erete attached. (Stating Sponsoring Committee copy of w#i6f~ the proposed ordinance is This ordinance is sponsored by the following committee of City of Richfield residents who are registered voters: - CAH-226414v2 2 RCI45-17 Name Address 1. 2. 3. 4. 5. - Instructions to Petition Signers You are being asked to sign a petition You must-be-a -resident of, and a registered voter in, the City of Richfield Every person signing this petition must do so in the presence of the person circulating the petition. It is a criminal offense to sign a name other than your own to the petition or to accept compensation for signing your name to the petition. The undersigned registered voters, understanding the terms and nature of the ordinance attached, .petition the Council for its adoption, or, in lieu thereof, for its submission to the voters for their approval. Date Legal Si_ nq ature Name ,(print legibly) Address ,(print legibly) 1. 2. 3. (At-t„e-er~d-s~the-l+sTe#-s+gna#t~es~~latl ~ ^nn°^~'°~' *"° The affidavit of the circulator m°n*i^n°r) ^h^v° must be attached at the end of each signature paper.) NOTE: Many of the changes are for clarification or simpler wording. I presumed that by last ""regular election" what was intended was the last regular municipal election. The substantive change was to require a date and the printed name of each signer. The commission may want to consider adding a form for the circulator affidavit. l also added the headings in the form and the instructions to signers. Section 5.06. Filing of Petition and Action Thereon. All the signature papers must be filed in the office of the City Clerk as one instrument. Within #w2-(5-) ten. 10 working days after the filing of that petition, the City Clerk s~a~l must ascertain by examination, the number of registered voters in the City whose signatures are a~peaded #~erete attached and whether this number is at least f+ue fifteen percent (~ 15%) of the CAH-226414v2 RC145-17 total number of registered voters at the time of the last regular municipal election. The validity of the signatures must be judged as of the day the petition was filed. If the Clerk finds the petition d to be insufficient or irregular, the City Clerk s#al•I must at once notify one or more of the sponsoring committee of that fact, certifying the reasons for the finding. The committee shall then be given thirty (30) days in which to file additional signature papers and to correct the petition in all other particulars. If at the end of that period the petition is found to be still insufficient or irregular,,",°" "° ~'°~' "~~ the City Clerk shall file the petition in the City Clerk's office and noti each member of the committee sn°" "° ^^+~{~°~' of that fact "~~ +"° ~'~*~~ ~''°r'~. The final finding of the insufficiency or irregularity of a petition ehafl does not prejudice the filing of a new petition for the same purpose, -nor s#atl .does it prevent the Council from referring-the ordinance to the voters at the next regular or special election at its option. NOTE: This section has been modified to give the clerk 10 working days instead of 5 days to complete review of the petition. Also, the charter specifies the date as of which the signatures must be determined to be valid. 1. e., every signer must be a registered voter and resident of the city as of the date the petition is submitted. The city council also requested that the 5% requirement be changed to 15%. -The other changes are for simpler wording. Section 5.07. Action of Council on Petition. When the petition is found to be sufficient, the City Clerk eh~aN must so certify to the Council at its next meeting, stating the number of ^°+~+~ valid signatures on the petition and the percentage of the total number of registered voters at the time of the last regular municipal election which they constitute. The Council shall at once read the ordinance and may refer it to an appropriate committee. The committee or Council must hold a public "° hearing upon the ordinance; aft°r+h° h^Irlinn of ~~ih~nh +h° r~riJ~n~nn° ~h~ll . After the public hearing, but not later than sixty-five (65) days after the City Clerk submitted the ordinance to the Council ,the Council must take final action on the ordinance. If the Council fails to pass the proposed ordinance, or passes it in a form different from that set forth in the petition and unsatisfactory to the sponsors, the proposed ordinance .~1'F~RiT must be submitted by the., Council to a vote at the next regular municipal election, but if the ^~~°~~+;e ~.;~.~,~-~ number of valid signatures on the petition is equal to at least #i#eeq twenty percent (~ 20%) of the total number of registered voters at the time of the last regular municipal election, the Council must call a special election upon the measure. Such special election must be held not less than tk~} fi 50 nor more than sixty-five (65) days from date of final action on the ordinance by the Council or, if there has been no final action, from a#er the expiration of sixty-five (65} days from the date of submission to the Council ~•~"°^ +h°r° hoo h°°n .,,, fine ",+;,,.,, but if a regular election is to occur within three months, the Council ~y must submit the ordinance at that election. if the Council passes the proposed ordinance with amendments and at least four-fifths (4/5) of the sponsoring committee do not express their dissatisfaction with such amended form by a statement filed with the City Clerk, within ten (10) days of the passage thereof by the Council, the ordinance need not be submitted to the voters. CAH-226414v2 RC145-17 NOTE: Most of the changes are to simplify the wording. The deadlines for holding .the election have been modified to avoid conflict with state law, which requires that notice of a special municipal election be given to the county auditor at least 49 days before the election. The city council requested that the 15% requirement be changed to 20%. Section 5.08. Initiative Ballots. The ballots used when voting upon any such proposed ordinance s~ must state the substance of the ordinance and must give the voters the opportunity to vote either "yes" or "no" on the question of adoption. If a majority of the votes on any such ordinance are in favor of it, it chill +horo~ ~r~~n hon~mc becomes an ordinance of the City. Any number of proposed .ordinances-maybe voted upon at the same election,-but the voter sl~u must be-allowed to vote for or against each separately. In case of inconsistency between two initiated ordinances approved at one election, the one approved by the. higher percentage of voters voting on the question +I revails to the extent of the inconsistency. NOTE: The changes are forsimp/ification of wording. Section 5.09. Amendment or Repeal. Any ordinance adopted by the vote of the people cannot be repealed or amended except by the vote of the people or by the unanimous vote of all members of the Council. Section 5.10. Initiation of Charter Amendments. Nothing in this Charter shall be construed as in any way affecting the right of the registered voters under the constitution and .statutes of Minnesota to propose amendments to this Charter. Section 5.11. The Referendum. If prior to the date when an ordinance takes effect a petition signed by qualified registered voters of the City equal in number to tern fifteen percent (a-A°~e 15%) of the total number of registered voters at the time of the last regular municipal election is filed with the City Clerk requesting that any such ordinance be repealed or submitted to a vote of the registered voters, the ordinance ~h,ll +horoh.. he is prevented from going into operation. All the signature pages must be filed as one instrument. The City Clerk must ascertain by examination the sufficiency of the petition within ten (10) working days and must certify the results of that examination to the Council at its next regular meeting. The Council e~ must thereupon reconsider the ordinance at +~ r,o..+ roivi der moo+i„ry, and by majority vote either repeal or affirm the ordinance as passed. If the. ordinance is affirmed, the Council s~ must immediately order a special election to be held thereon, or submit the ordinance at the next regular municipal election, pending which the ordinance c"~~~ rom'+in remains suspended. If a majority of the voters voting on the ordinance is opposed to the ordinance, it s#al•I does not become effective; but if a majority of the voters favor the ordinance, it takes effect immediately or on the date therein specified. NOTE.' This section has been changed to simplify wording. Relevant requirements from 5.06 have been incorporated. The city council requested that the 10% requirement be changed to 15%. CAH-226414v2 RC 145-17 Section 5.12. Referendum Petition. The requirements laid down in Sections 5.04 and 5.05 above as to the formation of committees, the form of petitions and signature papers, and residency requirements for committee members and circulators, for the initiation of ordinances shall apply to the referendum but with such changes as may be necessary. A referendum petition shall read substantially as follows: REFERENDUM PETITION Proposing the repeal -of -an ordinance to -(stating the purpose of the ordinance}-a. A certified copy of w~isf~ the ordinance is #erete attached. Sponsoring Committee - The proposed repeal is sponsored by the following committee of City of Richfield residents who are. registered voters: 1. 2. 3. 4. 5. Name Address Instructions to Petition Signers You are being asked to sign a petition. You must be a resident of and a registered voter in, the City of Richfield. Every person signing this petition must do so in the presence of the person circulating the petition. It is a criminal offense to sign a name other than your own to the petition or to accept compensation for signing your name to the petition. The undersigned qualified registered voters, understanding the nature of the ordinance hereto attached and believing it to be detrimental to the welfare of the City, petition. the. Council for its submission to a vote of the voters for their approval or disapproval Date Legal Signature Name (print legibly Address (print legibly 1. 2 3. CAH-226414v2 6 RC145-17 (°~~~f '~°#-n°+~s-s",°'~-apyer~ded- t~x~°,~„~4t The affidavit of the circulator.Y,°^+;^^°,+ ^h^"° must be attached at the end of the list of signatures.) NOTE.- Most of the changes are to simplify wording. One substantive change is to add the date and printed name of each signer to the form of petition. It also incorporates the residency requirements added for committee members and circulators. I added the instructions to signers in the petition form. Section 5.13. Referendum Ballots. The ballots used in any referendum election shall conform to the rules laid down-in Section 5..-08 of this ~harterfor initiative ballots.- Section 5.14. The Recall. No less than 25 registered voters may form themselves in a committee for the purpose of bringing about the recall of any Council Member including the Mayor. If the committee seeks the recall of a district Council Member, the registered voters constituting the committee s#afl must be from the Council Member's district. The committee s~a#I must certify to the City Clerk the name of the Council Member whose removal is sought, a statement of the grounds for removal in not more than 250 words, and #~ei~ the committee's intention to bring about his or her recall. A copy of this certificate s#a#I must be attached to each signature paper and no signature paper s~ may be put into circulation previous to such certification. The grounds as set forth in the recall petition must be predicated on one or more charges of malfeasance, nonfeasance or both. For this purpose the word "malfeasance" means the performance of an act by a Council Member in his or her official capacity that is wholly illegal and wrongful and the word "nonfeasance" means the neglect or refusal, without sufficient excuse, to do that which it is the Council Member's legal duty to do so. NOTE.• Changes are to simplify wording. Section 5.15. Recall Petitions. The petition for the recall of any Council Member s#~a-N must consist of a certificate identical to that filed with the City Clerk together with all the signature papers and affidavits thereto attached. All the signatures need not be on one signature paper, but the circulator of every signature paper sly must make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. Every circulator of a signature paper must be a resident of the state of Minnesota. Each signature paper s~ must be in substantially the following form: RECALL PETITION Proposing the recall of from the office as which recall is sought for the reasons set forth in the attached certificate. Sponsoring Committee CAH-226414v2 RC145-17 This movement is 'sponsored by the following committee of registered voters eligible to vote on candidates for that office.. 1. 2. Name Address 3. [listing all members of the committee) Instructions to Petition Signers You are being asked to sign a petition. You must be a -resident of, and a registered voter in, the City of Richfield. Every person signing this petition must do so in the presence of the person circulatinc t~ he petition. It is a criminal offense to sign a name other than vour own to the petition or to -accept compensation for signing your name to the petition. The undersigned registered voters, all being eligible to vote on candidates for that office, understanding the nature of the charges against the Council Member herein sought to be recalled, desire the holding of a recall election for that purpose. Date Legal Signature Name (print legibly) Address (print legibly 1. 2. 3. ~+ +hc cnrl ref lic~~~.~~nn~ro~~n~l ho ~n~QOrl +he Ate,-1~+.,i+ The affidavit of the rcc-crrc-crra--vim „ ,~ ,--per ca-mc,~a~a~vn circulator must be attached at the end of the list of signatures. NOTE.' Many changes are to simplify wording. The changes to the form of petition (adding a date and printed name of each signer and instructions to signers) are also added here. It also adds a requirement that circulators be residents of the state. Section 5.16. Filing of Petition. Within thirty (30) days after the filing of the original certificate, the committee s#atl must file the completed petition in the office of the City Clerk. The City Clerk shat) must examine the petition within the next ~,~-ice, ten 10 working days and if the clerk finds it irregular in any way, or finds that the number of signers is less than twenty-five percent (25%) of the total number of registered voters eligible to vote on candidates for that office at the last preceding regular municipal election, the City Clerk shah must so notify one or more members of the committee. The committee shall then be given ten (10) days in which to file additional signature papers and to correct the petition in all other respects, but the committee may not change the statement of CAH-226414v2 RC145-17 the grounds upon which the recall is sought. If at the .end of that time the City Clerk finds the petition still insufficient or irregular, the clerk s~ must notify all the members of the committee to that effect and s~ file the petition in the City Clerk's office. No further action shall be taken thereon. NOTE.• This section has been changed to give the clerk 70 working days instead of 5 days to review the petition. The other changes are to simplify wording. Section 5.17. Recall Election. If the petition or amended petition is found sufficient, the City Clerk s#afl must transmit it to the Council without delay, and s~ must also officially notify the person sought-to be recalled of the sufficiency of the.petition-:and of the pending action. If the Council Member sought to be recalled does not resign-within ten (10) days after having been given such notice, the Council shall, at its next meeting occurring more than ten (10) days after the receipt by the Council of the recall petition; by resolution, provide for the holding-of a speciaF recall election not less than 38 50 nor more than 45 75 days after such meeting, but if any other election is to occur within sixty (60) days after such meeting, the Council may in its discretion provide for the holding of the recall election at that time. If the special recall election involves a district Council Member, the recall election sly must be conducted only within the district of such Council Member. If it involves several district Council Members, the election must be conducted only within the districts of such Council Members. If it involves a Council Member who is elected at large, the election ehatl must be a City-wide election. NOTE: Minor wording changes. Section 5.18. Procedure at Recall Election. The City Clerk smolt must include with the published notice of the election the statement of the grounds for recall and also, in not more than 500 words, the answer of the Council Member concerned in justification of his or her course in office. The election shad must be conducted as far as possible, in accordance with the usual procedure in municipal elections. NOTE: Minor wording changes. Section 5.19. Form of Recall Ballot. The form of the ballot at such election shall be: "Shall be recalled?" The name of the Council Member whose recall is sought and his or her office shall be inserted in the blank. The electors shall be permitted to vote separately "Yes" or "No" upon this question. If a majority of those voting on the question of recall vote in favor of recall, the official shall be thereby removed from office. NOTE: The change inserts omitted words. This change can be made administratively, if review of the original charter or amending ordinance shows that the omission of the words was simply a clerical error. CAH-226414v2 RC145-17 Section 5.20. Procedure to Fill Vacancy. In the event that a Council Member is recalled by the electors or resigns after a petition has been filed for his or her recall, the vacancy s~ must be filled in the following manner: If less than six months remain in the Council Member's term of office at the time of the recall election or at the time of resignation in response to a recall petition, as the case may be, the vacancy must be filled by the remaining members of the City Council for the unexpired term pursuant to Section 2.05. If six months or more remain in the Council Member's term at the time of such recall or resignation, the .Council. s#atl .must call a special election to fill ahe ..vacancy for the balance of the Council Member's term. Such election ahafl must be called within ten (10) days after such recall or resignation, and the special election s~ must be held not less than tk8~ fifty (50) nor more than sixty (60) days after the meeting at which the election is called.. Candidates to fill the unexpired term-s#al•I -must be nominated in the usual way and the election chat{ must be conducted as far as possible in accordance with procedures in municipal elections except that there shall be no primary election and the candidate receiving the highest number of votes for the office shall be elected to fill the unexpired term. NOTE: Most of the changes are wording changes. The 30-day minimum deadline for holding a special election was changed to 50 days in order to conform to state law. Section 5.21. The term of the candidate selected by the voters at the regular or special election to fill the unexpired term shall start as soon as the declaration of the results has been filed with the City Clerk, and the person has qualified for office. Section 5.22. Offenses; Penalty. It is unlawful for a person to' a. sign a name other than that person's own name to an initiative referendum or recall petition; b. circulate an initiative or referendum petition without required attachments' c. circulate an initiative referendum or recall petition when unqualified to do so' d. sign an initiative referendum or recall petition when that person knows he or she is not qualified to do so; e. make a false affidavit in connection with an initiative referendum or recall etp ition: f. pay or offer to pay a person or receive payment or agree to receive payment, for signing an initiative referendum or recall petition' CAH-226414v2 10 RC145-17 q. pay or offer to pay a person or receive payment or agree to receive payment, on a basis related to the number of signatures obtained for circulating an initiative, referendum, or recall petition. This subsection does not prohibit the payment of salary and expenses for circulation of the petition on a basis not related to the number of signatures obtained as long as the circulators fully disclose all contributions received to the city clerk upon submission of the petitions. A violation of this section is a misdemeanor punishable in accordance with state law. NOTE This section identifies-offenses that are punishable as a-misdemeanor offense. It is intended to prevent fraud. Paragraph (~ is taken from the repealed section 5.02. Paragraph (g) is a modified form- of the prohibition on paying circulators. The Eighth Circuit Court ofAppealshas-upheld the constitutionalityof a requirement that circulators not be paid on aper-signature basis. Initiative & Referendum Institute v. Jaeger (2001). CAH-226414v2 11 RC145-17 BILL NO. 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. Background; findings 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 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 filing_ 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 sn~~~,-T controls the financial affairs of the City, ~z.~-~n~ . The Council must provide for the rp ompt collection of all revenues ii the preservation of aed-et#er assets, iii the auditing °^~+ cett!e.~,~^t of C~ accounts, and Div) a~ the safekeeping and ~;s"w~; ce, , ,"~ rp open disbursement of public monies. DJK-224351v1 RC145-17 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 a 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 'I°"ice law, the Council s#atl n"l° +~"" ^^'•~°r +^ may provide by ~e resolution, preceded bx notice and public hearing for a system of tesa#+ea local taxation. In the taxation of real and personal property u° °~ ~^h +h° ~i+,• ~h.,II the system of - local=taxation rnust~conforrn as #ully -as possfble-to-+"° a; state aw .,as to in the ,~°°ccm°^+ valuation of s :property and the collection of-~# the taxes. 2.05. Section 7.04 of the Richfield City Charter is repealed. 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. the Ci+~a+~ager~ha;T of At a special budget meeting of the Council on or before t~hc-fir~+ T,.°~,~^,• i~ September 15, the City Manager must submit to the Council a proposed budget and afl-e~cate~y a budget message in a the form and m,,,~,~ containing the information specified in Section 7.06. ~'^r ~,.^h r+~ ~rr~^c° -.v,•-1 •++ ~i,^h .J.,+° u h°~ _~ ~~ ~r ~hc r r M V-C~i 1 1 TI'~ ~hNll rt°+°rmin° In preparing the budget and the budget message the Manager s~ must obtain from +h° h°^~ ^{ °~^h CSC department heads information re arding ~ tne~,f~a~-astn~es+°+~~f proposed expenditures r~ues~-++~s~~'~-~;-e~+~at~n for the ensuing fiscal year and (ii) capital projects e~ and capital expenditures '"'h'^h °uch ue~-.r+rY,°r,+ h° ,+ proposed to be undertaken in hie ^r h°r rJ°r,~.+m°.,+ fr~r the ensuing budget year and in the ~e following four fiscal years The Council s#a~l must r°„i oT'cv'~cv-•Z+rhr°c es#+~ai°~sh~;; hold one or more informational 1=iea~gs #-bereee meetings on the ro osed budget at which the public may provide comments and may thereafter revise °c+~„~te: ; the proposed expenditures and capital projects contained in the proposed budget document a~-fie-e~~h,-may cl°°m ..rl..i~.,hl° 2.07. Section 7.06 of the Richfield City Charter is amended to read as follows: Section 7.06. Form of Annual Budget. Subdivision 1. The budget must contain a sen~ete financial plan for the ensuing tget fiscal year. ~a-#isq-s#a.lt The financial plan must include: {~} ~ a budget message, ~} ii a general summary of the financial plan, fs} iii deta+le~ estimates of revenues applicable to proposed- expenditures, and, {-d-} iv a~lE proposed expenditures. ~#e DJK-224351v2 RC145-17 2 ~eye~ Proposed expenditures s#afl may not exceed #~e proposed revenues. T#e Proposed expenditures for the general and specia! revenue funds s#atl must ~ be listed by organization) unit or activity) and ii sk+atl be in parallel columns opposite the major er and minor object of the expenditure showing the amount of sus# expenditure for the last se~lete~ fiscal year, the amount estimated for the current met fiscal year and the proposed expenditures for the ensuing met fiscal year. 1n f~inrle n+h°r+h^n The revenues attributable to each general. and special r°~~:~ fund +h~r~s~ vn°nrli+i ~r°e Ch~±lrt must be presented in a similar manner ~7'fA ~.~~ttnf +h° (~i+~i AA^n~+rr°r_ The ri+~i AA^n^^°r eh^II ~~ ~hrr~i+ .+ rl°+r+il°r! statement of revenues +n-5e~-r~~^vnrT~9c°rnti°r^' ^crr-a~rtq-~;evi^~q;-r°~-w~°c~mc _ ,~,fs f^r +h° asr~,p;tad-~+ssaa-ye^~z"e-a~ea~tisf~ed~e~th~ sufrudget-~ea~a-rid-~r"~af-~~~#~#+r~ate~e~#e n°„+ h,,,+ry°+ .,° must include the source of and amount of miscellaneous .revenues, the amount of surplus of prior fiscal year revenuesi and the amount of revenues raised by property taxes in the prior fiscal year and estimated to be raised in the current fiscal year. ~°~~~ +f~r s~{~#-~g--aTTd ^~,"er~~d~s-~#~l ~e~Tesented; ;-Q~a~°~-°~~fe #~,+ess~g~+a~-be-sate-b~rs#+I~essea~y+r~g-the--g°+ n mho in +h° fnrm .+nM! ;,".nth v^n+°n+o ~+~ fr~lln~eic. Subd. 2. The Budget Message_ - ~~ err°n+ nn°r^+i^ne, The budget message may be submitted by-the 6+~ Manager as a separate document but it must accompany the budget. The message s#atl must contain the following elements. Current operations. The budget message must explain the budget. The message must contain an outline of the proposed financial ~el+sies osition of the City for the ensuing met fiscal year and s#atl ~~~°~mes+~r-R"eT~% the important features of the met financial plan of the City. ',~#^" c°+ f^r+h +h° The message must give reasons for major changes in expenditures and revenues from the ~ev+egs prior fiscal year +q-lest and Teven~e-iie~~°~~„~l: explain af>~ the rationale for major changes, if any, from previous +e financial try policies of the CitX. ii ~~geseag~-- Capital Improvements._ °c ^ n^r+ ^f +h° met The message rnrn~~~+^+~Tr~_~~~et~ tFte-+~K}a'~ar ~h^11 in~IN~` c~+ +°rv~°n+ must contain a description of pending and proposed capital projects-ate n rni r°I^fin +n +h° r°cn°n+i~i° ~ ~n+~ ev~~a~+taa--~~esfs~ng-to--R,.-,~,~ ~-a~e~ ~ s together with estimates of the costs of those proiects and the sources of funds to be used to pay for them. DJK-224351v2 RC 145-17 iii '~~get-Mersa Capital Program.- The sn°" °'^^ in^',,,+° in +"° message must contain, or ^++°^" +h°r°+^ have attached to it, a Capital Project Plan for the #+ve four fiscal years nex+ ~,'nn°°~'i^^ following the fiscal year of the budget ~F_ The Capital Project Plan is to be prepared by the n'nnnin^ nnrnmic~inn~~n~TG~~h~~ +nrY~~~-~~+ ~_ (`i+~, td4~~ nnmm°n+c +h°r°nn ~n,-1 nrn, °~+imn+°~ of nnc+c nr°n~r°r+ by the Manager after consultation with the department heads ~°r nffin° nr r•°n~Cnr~~~~~+h° r~lunninn nnrv~rr~ic ~in~n ~i,~~ rinrr e~ ~nh n~ni+.~1 nrnnrnm nnni°e of ,-l°n~rFm°n+nl °^+im^+°~ of and any informational meetings conducted under Section 7.05 ^~",,TU"''in',~,e~,~;; _ __. ,.. ,.b~fil°ra u,i+h +h° nnmmi~~inn iv) Miscellaneous. The Manager must attach °++,-~^h~~to or include in the budget message sn°" "° ~, ~^" supporting schedules, exhibits and other e~cn'~,aT,eter~r~~te~ri~i-ta respes~te f~et~i s~l~er~t believed by the Manager ~h~ll h°li°"° „~°f„I +n +h° ~n„nnil to be appropriate and informative. 2.08. Section 7.07 of the Richfield City Charter is amended to read as follows: Section 7.07. ^^^^ ° ^f L\nn~~~) Q,,,~ °+ Adoption of Budget. At the conclusion of the special budget meeting; the Council s#atl must da+°rrr~in° +h° nlon° ~nrl +im° of +h° set a public hearing on the budget; to be held after~n^" ^°~ ~c° +^ h° published a notice o~~ e-+°~-a„a pfaoe~r- n„h'i^~ „ri^^ +^ h° "°'.+ not less than seven ~S nor more than #eu-rteee 14 days after the date of publication. The budget °"^'~„-h,~ nL,hlin r°nnrrl in +h° n{fir•n of +h° (~ih, (~I°r1~ nn°n must be kept available to the public ' in the Clerk's office. ~~~}a~~-Ga~$-~Gfer~t-~~ ~ +n~-p•~e~°,-lca-~vTm'~ n +n i n cci a°~c The public hearing on the budget ,,,°°+,~~-ae ~,J~,°rFic~°rr ~hnll h° h°Ir7 r! ~n~ ,+ frn +im° +n +im° ~+nr) ~~-~~~,~,~r«a~a add-r-r~ea-,TPm-rn„~, must be conducted seas in a wav to give interested ^i+~ erp sons ^ r°.,°^n..h'° an opportunity to be heard. The h~ ~~'^°+ °^+ir~,.,+°^ ^h~ll h° r°~+rl in +~~ JI .~. n,+ +h Manager e#atl must explain the various iterx~s elements +h~ of the budget as fully as m^yis,.,^de'e}med necessary by the Council. ~e Csees+l-s#aft-ade~t~e--f~~c~e--Eater-t," ^ nurrirtc°~a~+ .+.++° ° +.. h I i c h °rt h" I"., fnr +h° r'n..n+„ e,,,+i+nr +n I°,,,, +^„°~ The budget resolution. l must set #ert# out the total established for each ~ete~ fund and easy department with such seg,~~~as-~-~es~ a~~~~se-s~f e~~d+#~es--as-t-h~ee~+l other information ~ee~s deemed necessary the Council. The budget resolution must also state the amount of property and other taxes to be levied to fund the budget. 2.09. Section 7.08 of the Richfield City Charter is amended to read as follows: DJK-224351v2 RC 145-17 4 Section 7.08. Enforcement of the Budget. The £ Manager steal-I must st~i6#~ enforce the provisions of the budget us c^°^if°,+ i^ +"° r~iee. The Manager ~k-atl 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. ~e An officer or employee of the City ebafk may not place a~ an srde~s order or make a~ a purchase except for the purposes authorized in the budget. A~ An obligation incurred by ate} a person in the employ of the City for a~ a purpose not in the approved budget or for a~ an amount in excess of the an amount appropriated in the budget resolution or in excess of available monies in a~ a fund of the City is a personal - - .obligation-t~sr~_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 Adjusting the Budget. After the budget °"^'~ has been adopted; the Council not increase the amounts fixed in the budget resolution, by the insertion of .new items or otherwise, ~ in an amount more than the estimated revenues; unless the actual receipts exceed. the estimates and then. not d more than the actual receipts. The Council may °+'+ •~.~" +'~r""r~c, by resolution. °r'r,r^~~°~, "„ ^ f^„r-+i++h^ m~inri+v of i+~ m°mh°r~ reduce. the sums appropriated for any purpose by the budget resolution. Within three months following the close of the fiscal year, the Council, A# at the request of the Manager, ~wTtht~ +-~-tas#-t~:~e-s-~#-tT e~:ea~ ~^~ ~^^i' may transfer unencumbered appropriation balances for that fiscal year from one office, department or agency to another within the same. fund. ~ Appropriations lapse at the end. of the budget year to the extent that they slaa#I-rte have not been expended or ~w#u~j~ encumbered. 2.11. Section 7.10 of the Richfield City Charter is amended to read as follows: Section 7.10. Emergency Appropriation in Budget. The Council may include an emergency appropriation as a part of the budget but not exceed more than three ercent of the total operating appropriations made in the budget for that year. A transfer from the emergency appropriation to a~-e#~e~ another appropriation sba~ may. be made wee by resolution on recommendation of the City Manager or a member of the Council ' . The funds ##u-s so appropriated ill may be used only for the purposes designated by the Council. 2.12 Section 7.11 of the Richfield City Charter is amended to read as follows: Section 7.11. Disbursements. How Made. ~P~s Except as otherwise provided in this section. di°"„r^°,,,°^+ disbursements of City funds s#atl be made a-xsegt o~ by check bearing the .actual or facsimile DJK-224351v2 RC145-17 5 signature of the Gi#~ Manager and the treasurer. PJe-suc#~ A check 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 +h~ of the claim. The Council may by ordinance make further regulations for the safe-keeping and disbursement of the funds of the City, including, the disbursement of funds for the payment of bills and obligations by electronic means. 2.13. Section 7.12 of the Richfield City Charter is amended to read as follows: - - -Section 7:12:.Funds to be wept.- There shatl <must.be-.maintained-in - the City treasury the funds provided .for in this... section. Subdivision 1. General .Fund: The General Fund is established for the payment of a-~ general government expenses and those obligations of that the City deem deems. proper. Into this fund shafl are to be paid afl monies not otherwise provided "°"~r~ by statutes er ~} ordinance or this Charter to be paid into any other fund. Subd. 2. Liquor Special Revenue Fund: Other Special Revenue Funds:_ A Li uor Special Revenue Fund is established aed into which are to be paid ~ +h° nrnfi+c frnw, n~ ~hlin c°n,in° °n+°rnric°~ innli irlinn th°~ frnw, +h° ~iry„nr ~+nr°, net revenues (i.e., gross revenues less costs of operation, maintenance and pledged revenues) of the municipal liquor store. (ii) proceeds #rem of special tax levies to support the fund, and iii other special revenues so designated by the Council. T-~iek~he;l Expenditures from the Liquor Special Revenue Fund may be made only as authorized by the budget resolution; Monies in the fund may be s-sed expended for capital improvements of +- "~p~or only if authorized #e-ESS~ n°rol nhlin~+inn deeds-eel3F by ordinance. The Council may by resolution establish other special revenue funds and provide for the expenditure of those funds. _ Subd_ 3. Utility; Enterprise Funds:. One or more utility or e#-her public service enterprise funds are to be established into which sit are to be paid ^" m^^°~~ ~'°~ed f-rron'r °^''°,~„ds mnn°~~ ,~ r1~Pe~K~,~h~J,~i ~f ~ ~+ilih, nr n,+~hT^r~1~6. °n+ rnric° °n,in°~ ors" ci inh ~ ~+ili+., nr °n+°rnric° (i) the gross revenues of the appropriate utility or enterprise, (ii) the proceeds of the sale of assets of the utility or enterprise, and (iii) the proceeds of bonds or other obligations issued for the purposes of the utility or enterprise. Out of each s#~+s fund are to be paid the sect costs, including the financing costs of the purchase, construction, operation, maintenance and repair of DJK-224351v2 RC145-17 6 s~ the utility or enterprise, ~lin~++inn .~.hinh h~+v° hr~cn n~n^II h° ic•a~ ~°rl nn i+c onnni ~n+ and other revenues as directed by the budget resolution. Separate funds e#afl must be established and -kept for ^II „+ir+i°~ nr n„hli,. ~°n,i^° °n+°rnri~°c~ uihinh ^r° nn°r^+°,~ ~°n^r,+°I„ each separate utility or enterprise. Subd. 4. Trust and Agency Funds:_ There are to be established 8ne 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, .-r}ot: _~otherwise payable by the City-as compensation, incurred by the-Mayor and Councik Members for the benefit of the City ~nr1 i+~ n°nnl°. Appropriations to and expenditures from this fund °"°" ^^+ °vn°°.~I ~~nn n°r ..°°r are. in the amounts fixed in the budget resolution. The Council may by resolution establish the purposes and procedures for the making of disbursements from this fund, including disbursements made without previous Council authorization s#atl 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, ~"~h°n°~i°r +h° ('`n„nnil r!°°m~ i+ nrJ„i~nhl°~ {~ ~ one or more working capital or revolving funds, for financing self- sustaining activities not accounted for through other funds; and {~ ii .such other funds as may be required by s+°+~~~ law, ordinance or the Charter. Subd. 7. ~e 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 sl~t4 must be .maintained on an accrual or modified accrual basis in accordance with generally accepted. governmental accounting standards and procedures. The Manager shaft must submit such reports as w+ll-be are necessary +q-ewer to keep the Council fully informed of the financial condition of the City. Once each year on or before +~~ h ~'~~ June 30, the City Manager shalf must submit a complete financial report of the City for the preceding fiscal year ending December 31, a summary of which shaft must be published in the official newspaper. The Manager, under the direction of the Council, on or before June 30 ^f °°^" ~~°^r shaft must prepare at least one comprehensive public information report of the financial affairs of the City. i~l rem^"~,-~-an infnrr»~+i~i° fiin°~ r! The Manager must distribute the report to the persons and organizations and in the manner deemed advisable by the Manager DJK-224351v2 RC145-17 7 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, ee obligations s#al•I 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, fle-~+s#~ obligations e#a~l may not be issued and sold without the approval of the majority of the r~~P~ 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>queston-<preceded by published notice ^"hlic her! ir, ~ r~o~"ior»r~or/c~\ colon+orl h.. +ho (~n~ ~nnil 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 s1~ m~ay not exceed 90% of the total current taxes for the fund uncollected at the time of issuance. Certificates s~tl 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 s#al-I 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: Section 7.16. Emergency 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 mature within three years. A tax sufficient to pay principal and interest on .such certificates '"ii+h +ho m,rni., must be levied as required by law. The resolution authorizing an issue of such emergency debt certificates ~N 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: DJK-224351v2 RC145-17 g Section 7.17. State Budget 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 day of 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk DJK-224351v2 RC145-17 9 DISCUSSION DRAFT CHAPTER 7 TAXATION AND FINANCES TAXATION AND FINANCE Section 7.01. Council to Control Finances. The Council shall have full authority over the financial affairs of the City, and shall ,proovide for the collection of all revenues and other assets, the auditing and settlement of accounts and the safekeeping and disbursements of public monies. Section 7.01. Council to Control Finances. The Council controls the financial affairs ofithe City. The Council must provide for (i) the prompt collection of revenues, ii the preservation of assets, iii) the auditing of City accounts, and (iv) the safekeeping and proper disbursement of public monies. Section 7.02. Fiscal Year. The fiscal year of the City shall be the calendar year. Section 7.02. Fiscal Year. The fiscal year of the City is the calendar year. Section 7.03. System of Taxation. Subject to the state constitution, and except as forbidden by it or by state legislation, the Council shall have full power to provide by ordinance for a system of location taxation. In the taxation of real and personal property as such, the City shall conform as fully as possible to the general state law as to the assessment of such property and the collection of such taxes. Section 7.03. System of Local Taxation. Subject to the state constitution and except as forbidden by it or by state law, the council may provide by resolution, preceded by notice and public hearing for a system of local taxation. In the taxation of real and personal property the system of local taxation must conform as fully as possible to state law in the valuation of property and the collection of the taxes. NOTE: Notice and hearing before the adoption of a tax ordinance would probably take place anyway since it is probably constitutionally required. It seems desirable to include that requirement here. The commission should be aware that the possibility of the City being able to use this provision in the foreseeable future and beyond is about zero. DJK-224351v1 RC145-17 I Section 7.04. Board of Equalization. The Board of Equalization shall consist of the members of the Council and two residents of the City appointed for a one year term by the City Manager and approved by the Council. The two resident members shall be experienced- in real estate matters and shall receive such compensation as the Council may determine. The Board of Equalization shall equalize assessments of property for taxation purposes according to law. As soon as any real estate has been reassessed, the affected property owner shall be notified by the assessor of the. amount of the change and the reasons therefor. Section 7.04. Repealed. NOTE: The final sentence of existing section 7.04 is outdated. State law (Minn. Stat. Chapter 274) -provides that no one's property valuation may be raised by the board without prior notification. There seems to be no good reason to notify a property owner of a reduction in valuation; and under the existing language, a wholesale reduction in valuation would require notice to all property owners. It should be-noted that the valuations approved by the Board are all subject to review by the County Board of Equalization. The requirement for two resident members is probably unique. It is doubtful that such members are required since almost all of the technical data on valuation is supplied by the City and County Assessors. if the members are retained, a term should be specified. The city council recommended that this section be repealed. The effect of doing so will be that the city council will serve as the Board of Equalization, unless the city council delegates its duties to the county as provided by Minnesota Statutes § 274.01. Section 7.05. Preparation and Submission of Annual Budget. The City Manager shall, at a special budget meeting of the Council on or before the first Tuesday in September, submit to the Council a budget and an explanatory budget message in a form and manner as prescribed in Section 7.06. For such purpose and at such date as he or she shall determine, the City Manager shall obtain from the head of each department the character, object and details of proposed expenditures together with such other supporting data as he or she may request, including an estimate of all capital projects or capital expenditures which each department head considers should be undertaken in his or her department for the budget year and the next five years. In preparing the budget the City Manager shall review the estimates, shall hold hearings thereon. and may revise estimates, as he or she may deem advisable. (Amended Bill 1990-13) DJK-224351v2 RC145-17 2 Section 7.05. Preparation and Submission of Annual Budget. At a special budget meeting of the Council on or before September 15, the City Manager must submit to the Council a proposed budget and a budget message in the form and containing the information specified in Section 7.06. In preparing the budget and the budget message, the Manager must obtain from City department heads information regarding (i) proposed expenditures for the ensuing fiscal year, and (ii) capital projects and capital expenditures proposed to be undertaken in the ensuing budget year and in the following four fiscal years. The Council must hold one or more informational meetings on the proposed budget at which the public may provide comments and may thereafter. revise _ the -proposed expenditures and -capital projects contained in -the- proposed--budget document. NOTE: The projection of capital projects is changed from the existing five years to four. Four plus the present fiscal year. makes for a more standard five-year capital improvement program. The deadline for submitting the proposed budget to the council has been changed to September 15, which is the same date as that provided by state law for the submission of the preliminary levy. The deadline established in this section is actually meaningless while the state Truth in Taxation Law remains in effect. Under the new section 7.17, the city would follow state law requirements for preparation of its budget and not the deadlines in the charter. But the September 15 deadline is retained here, in case the Truth in Taxation law is ever repealed. The city council requested .that the requirement for the manager to hold public hearings be changed to a requirement that the council hold informational hearings. Section 7.06. Form of Annual Budget. The budget shall provide a complete financial plan of all funds for the budget year, which shall include: (a) a budget message, (b) a general summary, (c) detailed estimates of all anticipated revenues applicable to proposed expenditures, and, (d) all proposed expenditures. The proposed expenditures shall not exceed the proposed revenues. The expenditures for general and special revenue funds shall be by organization unit or activity and shall be in parallel columns opposite the character and major or minor object of expenditure showing the amount of such expenditure for the last completed fiscal year, the amount estimated for the current budget year and the proposed expenditures for the ensuing budget year. In funds other than general and special revenue, the proposed expenditures shall be presented in an understandable manner according to the discretion of the City Manager. The City Manager shall submit a detailed statement of revenues in columns for the general and special revenue funds for the last completed DJK-224351v2 RC145-17 3 fiscal year, the amount established for the current budget year and the amount estimated for the next budget year. Such detail shall include the source of miscellaneous revenues, the amount of surplus of prior year revenues and the amount raised by property taxes. Revenues for self-supporting and other funds shall be presented in an understandable manner according to the discretion of the City Manager. The explanatory budget message may be separate but still accompanying the budget, and be in the form and with contents as follows: (Amended Bilt 1990-13) Section 7.06. Form of Annual Budget. Subdivision 1. The budget must contain a financial plan for the ensuing fiscal year. The financial plan must include: U a budget message, (ii) a general. summary of the financial plan, iii) -estimates of revenues applicable to proposed expenditures, and Lv) proposed expenditures. Proposed expenditures may not exceed proposed revenues. Proposed expenditures for the general and special revenue funds must {i)-be listed by-organization, unit or activity, and ii be in parallel columns opposite the major and minor object of the expenditure showing the amount of expenditure for the last fiscal year, the amount estimated for the current fiscal year and the proposed expenditure for the ensuing fiscal year. The revenues attributable to each general and special fund must be presented in a similar manner. The statement of revenues 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. Budget Message -Current Operations: The budget message submitted by the City Manager for 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 major changes from the previous year in cost and revenue items and shall explain any major changes in financial policy. Budget Message -Capital Improvements: As a part of the budget message with relation to the proposed expenditures for capital projects stated in the budget, the City Manager shall include a statement of pending capital projects and proposed new capital projects, relating to 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. Budget Message -Capital Program: The City Manager shall also include in the message, or attach thereto, a capital program of proposed capital projects for the five fiscal years next succeeding the budget year, prepared by the planning commission, if such there be, together with the City Manager's comments thereon and any estimates of costs prepared by the department of public works or other office or department. For the use of the planning commission in preparing such capital program, copies of DJK-224351v2 RC 145-17 4 departmental estimates of capital projects, filed with the City Manager pursuant to Section 7.05 of this article, shall be filed with the commission. (Amended Bill 1990-13) 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 City Manager shall believe. useful to the Council. Subd. 2. The Budget Message. The budget message may be submitted by the Manager as a separate document but it must accompanx the budget. The message must contain the following elements. (i) Current operations. The budget message must explain the budget. The message must contain an outline of the proposed financial position of the City for the ensuing fiscal year and the important features of-the financial plan of the City. The message must give reasons. for major changes in expenditures and revenues from the prior fiscal year and explain the rationale for major changes, if any, from previous financial policies of the City (ii) Capital Improvements. The message must contain a description of pending and proposed capital projects together with estimates of the costs of those projects and the sources of funds to be used to pay for them. (iii) Capital Program. The message must contain. or have attached to it, a Capital Project Plan for the four fiscal years following the fiscal year of the budget. The Capital Project Plan is to be prepared by the Manager after consultation with the department heads and any informational meetings conducted under Section 7.05. NOTE: The city council requested the deletion of the requirement that the Capital Project Plan be presented to the planning commission. (iv) Miscellaneous. The Manager must attach to or include in the budget message supporting schedules. exhibits and other data believed by the Manager to be appropriate and informative. Section 7.07. Passage of Annual Budget. At the special budget meeting, 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 time and place of the public hearing to be DJK-224351v2 RC145-17 5 held not less than seven days nor more than fourteen days after publication. The budget shall be a public record in the office of the City Clerk open to public inspection by anyone. The City Manager shall cause sufficient copies to be prepared for distribution to interested persons and civic groups. The budget meeting as advertised shall be held and adjourned from time to time and conducted so as to give interested citizens a reasonable opportunity to be heard. The budget estimates shall be read in full and the City Manager shall explain the various items thereof as fully as may be .deemed necessary by the Council. The Council shall adopt the budget no later than the last date established by law .for the County Auditor to levy taxes. The budget resolution shall set forth the total for each budgeted fund and each department with such segregation as to objects and purposes of expenditures as the Council deems. necessary.:for purposes of budget control Such resolution shall also state the amount of taxes to be levied. Section 7.07. Adoption of Budget. At the conclusion of the special budget meeting the Council must set a public hearing on the budget to be held after published notice not less than seven nor more than 14 days after the date of publication. The budget must be kept available to the public in the Clerk's office. The public hearing on the budget must be conducted in a way to give interested persons an opportunity to be heard. The Manager must explain the various elements of the budget as fully as is deemed. necessary by the council. The budget resolution must set out the total established for each fund and department with such other information deemed necessary by the Council. The budget resolution must also state the amount of property and other taxes to be levied to fund the budget. NOTE: See proposed new section 7.17, which recognizes that the budget adoption and tax levying procedures in the Charter must conform to the State "truth in taxation laws': If these laws are repealed, the Charter procedure at sections 7.05 through 7.07 would control. Section 7.08. Enforcement of the Budget. The City Manager shall strictly enforce the provisions of the budget as specified in the resolution. The City Manager shall 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. No officer or employee of the City shall place any orders or make any purchase except for the purposes authorized in the budget. Any obligation incurred by any person in the employ of the City for any purpose not in the approved budget or for any amount in excess of the amount appropriated in the budget resolution or in excess of available monies in any fund of the City may be considered a personal obligation upon the person incurring the expenditure. (Amended Bill 1990-13) DJK-224351v2 RC145-17 6 Section 7.08. Enforcement of .the Budget. The Manager must enforce the provisions of the budget. The Manager 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. An officer or employee of the City may not place an order or make a purchase except for the purposes authorized in the budget. An obligation incurred by a person in the employ of the City for a purpose not in the approved budget or for an amount in excess of an amount appropriated in the budget resolution or in excess of available monies in a fund of the City is a personal obligation of the person incurring the expenditure. Section 7.09. Altering or Adjusting the Budget. After the budget shall have been duly adopted, the Council shall have no power to increase the amounts fixed in the budget resolution, by the insertion of new -items -or-otherwise, beyond the estimated revenues, unless the actual receipts exceed the estimates and then not beyond the actual receipts. The Council may at any time, by resolution approved by a four-fifths majority of its members, reduce the sums appropriated for any purpose by the budget resolution. At the request of the Manager, within the last three months of the fiscal year, the Council may transfer .unencumbered appropriation balances from one office, department or agency to another within the same fund. All appropriations shall lapse at the end of the budget year to the extent that they shall not have been expended or lawfully encumbered. Section 7.09. Altering or Adjusting the Budget. After the budget has been adopted the Council may not increase the amounts fixed in the budget resolution, by the insertion of new items or otherwise, in an amount more than the estimated revenues unless the actual receipts exceed the estimates and then not more than the actual receipts. The Council may by resolution reduce the sums appropriated for any purpose by the budget resolution. Within three months following the close of the fiscal year, the Council, at the request of the Manager, may transfer unencumbered appropriation balances for that fiscal year from one office, department or agency to another within the same fund. Appropriations lapse at the end of the budget year to the extent that they have not been expended or encumbered. Note: The requirement of a four-fifths majority of the Council to reduce budget allocations is removed: there seems to be no good reason for this requirement. The budget itself is adopted by a simple majorityand extraordinary majority vote requirements promote minority rule by giving extraordinary weight to the one additional vote needed for passage. DJK-224351v2 RC145-17 7 It should be noted that this 4/5th's rule is a common requirement in city charters and is the rule in statutory, (non-charter) cities. But the rule has been included in the League of Cities Model Charter since it was first prepared some 60 years ago when reasons for it may have been more evident. The_rule is somewhat like the "QWERTY" phenomenon on the typewriter keyboard which everyone agrees is cumbersome but repeated attempts to rearrange the keys have not been successful. City staff requested the change to allow accounts to be reconciled within three months after the close of the fiscal year. Section 7.10. Emergency Appropriation in Budget. -The Council may include an emergency appropriation as a part of the budget-but not exceed three per centum of the total operating appropriations made in the budget for that year. A transfer from the emergency appropriation to any other appropriation shall be made only upon recommendation of the City Manager or a member of the Council and by a majority vote of the Council. The funds thus appropriated shall be used only for the purposes designated by the Council. Section 7 10 Emergency Appropriation in Budget The Council may include an emergency appropriation as a part of the budget but not more than three percent of the total operating appropriations made in the budget for that year. A transfer from the emergency appropriation to another appropriation may be made by resolution on recommendation of the City Manager or a member of the Council. The funds so appropriated may be used only for the purposes designated by the Council Section 7.11. Disbursements. How Made. No disbursement of City funds shall be made except by check bearing the actual or facsimile signature of the City Manager and the treasurer. No such check shall 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 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 thereof. The Council may by ordinance make further regulations for the safe-keeping and disbursement of the funds of the City. _ Section 7.11. Disbursements. How Made Except as otherwise provided in this section, disbursements of City funds may be made only by check bearing the actual or facsimile signature of the Manager and the treasurer. A check 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 of the claim The Council may by ordinance make further regulations for the safe- keeping and disbursement of the funds of the City including the DJK-224351v2 RC145-17 g disbursement of funds for the payment of bills and obligations by electronic means. NOTE: Strictly read, the existing language does not permit payments by credit card or wire transfer, an increasingly common practice. The new language assumes that the City Council will carefully circumscribe the practice while permitting its use when essential. Section 7.12.. Funds #o be Kept. There shall be maintained .in the City. treasury the funds provided for in the following subdivisions: Section 7.12. Funds to be Kept. Section 1. There must be maintained in the City treasury the funds provided for in this section Sub. 1. General Fund: The General Fund is established for the payment of all general government expenses and obligations of the City as the Council may deem proper. Into this fund shall be paid all monies not otherwise provided herein, or by statute or by ordinance to be paid into any other fund. Subdivision 1. General Fund: The General Fund is established for the payment of general government expenses and those obligations that the City deems proper. Into this fund are to be paid monies not otherwise provided by statute, ordinance or this Charter to be paid into any other fund. Sub. 2. Special Revenue Fund: A Special Revenue Fund is established and into which shall be paid the profits from public service enterprises, including the profits from the liquor store, proceeds from special tax levies and other special revenues. There shall be paid out of this fund monies for such purposes as authorized by the budget resolution; provided, however, that such monies may be used for capital improvements of the type for which the. City would be authorized to issue general obligation bonds only by ordinance. Subd. 2. Liquor Special Revenue Fund Other Special Revenue Funds. A Liquor Special Revenue Fund is established into which are to be paid (i) net revenues (i.e., gross revenues less costs of operation maintenance and pledged revenues) of the municipal liquor store (ii) .proceeds of special tax levies to support the fund and (iii other special revenues so designated by the Council. Expenditures from the Liquor Special Revenue Fund may be made only as authorized by the budget resolution. Monies in the fund may be expended for capital improvements only if so authorized by ordinance. The Council may by resolution establish other special revenue funds and provide for the expenditure of those funds. DJK-224351v2 RC 145-17 9 NOTE: The term "profits" is not appropriate for municipal enterprises. The new definition of "net revenues" is uniformly recognized in governmental accounting. It is doubtful that all "profits" (i.e., net revenues) of the water, sewer and storm sewer utilities are presently paid into this fund. If this is desirable, it may be done by the Council under (iii) "other special revenues'; or by the budget resolution. The "provided" language is not helpful. The City is authorized by law (and this Charter) to issue general obligation bonds for any capital purpose: the requirement for an ordinance seems unnecessary since the ordinance would not be subject to referendum. City staff requested clarification that this- section does not prohibit the city from establishing other special revenue funds with non-liquor funds. Sub. 3. Utility or Other Public Service Enterprise Funds: One or more utility or other public service enterprise funds into which shall be paid all money derived from the sale of bonds issued on account of any municipally owned utility or enterprise and all money derived from the sale of utility or other public enterprise services and from the sale of any property acquired for or used in connection with any such utility or enterprise. There shall be paid out of this fund the cost of the purchase, construction, operation, maintenance and repair of such utility or enterprise, including the principal of and interest upon obligation which have been or shall be issued on its account. Separate funds shall be kept for all utilities or public service enterprises which are operated separately. Subd. 3. Utility: Enterprise Funds. One or more utility or public service enterprise funds are to be established into which are to be paid (i) the gross revenues of the appropriate utility or enterprise ii) the proceeds of the sale of assets of the utility or enterprise and (iii) the proceeds of bonds or other obligations issued for the purposes of the utility or enterprise. Out of each fund are to be paid the costs including the financing costs, of the purchase, construction, operation maintenance and repair of the utility or enterprise and other revenues as directed by the budget resolution. Separate funds must be established and kept for each separate utility or enterprise. DJK-224351v2 RC145-17 10 NOTE: The present language does not require revenues of utilities and enterprises to be paid to an appropriate fund. Sub. 4. Trust and Agency Funds: 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. 4. Trust and A ency Funds: There are to be established 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 Sub. 5. Discretionary Fund. A Discretionary Fund is established for payment of reasonable and necessary expenses, not otherwise payable by the City, incurred by the Mayor and Council Members-for-the benefit of the City and its-people. Appropriations to and expenditures from this fund shall not exceed $500 per year. The Council may by resolution establish the purposes and procedures for the making of disbursements from this fund, but disbursements made without previous Council authorization shall be subject to audit and allowance by the Council. (Amended Bill 1968-16, Bill 1990-13) Subd. 5. Discretionary Fund. A Discretionary Fund is established for payment of reasonable and necessary expenses not otherwise savable by the City as compensation, incurred by the Mayor and Council Members for the benefit of the City. Appropriations to and expenditures from this fund are in the amounts fixed in the budget resolution The Council may by resolution establish the purposes and procedures for the making of disbursements from this fund. including disbursements made without previous Council authorization and those disbursements are subject to audit and allowance by the Council. NOTE: It is probably not a good idea to include a dollar figure for this fund. $500 in 2010 is a good deal different than $500 in 1990. It is possible to set a figure with a cost of living adjustment, but that seems unnecessary for such a small item that most city councils police with great attention. Sub. 6. In addition to the foregoing funds, there may be maintained in the City treasury, whenever the Council deems it advisable; (1) one or more working capital or revolving funds, for financing self-sustaining activities not accounted for through other funds; and (2) such other funds as may be required by statute or ordinance. Subd. 6. In addition to the foregoing funds there may be maintained in the City treasury (i) one or more working capital or revolving_ DJK-224351v2 RC145-17 11 funds, for financing self-sustaining activities not accounted for through other funds; and (ii) such other funds as may be required by law ordinance or the Charter. Sub. 7. The Council may make interfund loans by resolution where permitted by law except from Trust and Agency funds. NOTE: No changes made in Sub. 7. Section 7.13. Accounts and Reports. The accounts of the City shall be maintained on an accrual or modified accrual basis in accordance with generally accepted governmental accounting standards and procedures. The City Manager shall submit such reports as will. be necessary in order to keep the Council fully informed of the financial condition of the City. Once each year on or before the 30th day of June, the City Manager shall submit a complete financial report of the City for the preceding fiscal year ending December 31, a summary of which shall be published in the official newspaper. The City Manager, under the direction of the Council, on or before June 30 of each year, shall prepare at least one comprehensive public information report of the financial affairs of the City. Said report shall be an informative type, and shall be distributed Citywide. (Amended, Bill No. 2002-2} Section 7.13. Accounts and Reports. The accounts of the City must be maintained on an accrual or modified accrual basis in accordance with generally accepted governmental accounting standards and procedures. The Manager must submit such reports as are necessary to keep the Council fully informed of the financial condition of the City Once each year on or before June 30. the City Manager must submit a complete financial report of the City for the preceding fiscal year ending December 31, a summary of which must be published in the official newspaper The Manager, under the direction of the Council on or before June 30 must prepare at least one comprehensive public information report of the financial affairs of the City. The Manager must distribute the report to the persons and organizations and in the manner deemed advisable by the Manager. NOTE: This section was recently amended to extend the date of the Manager's report. But what happens if for whatever reason the City's. auditors don't complete their work by that. date? Would it be better to leave the date of reporting and publication to the Manager? What is the difference between "a complete financial report" and a "comprehensive public information report"? Are two reports necessary? if one is published is the further distribution required by the last sentence necessary? DJK-224351v2 RC145-17 12 Section 7.14. City Indebtedness. Except as provided in Sections 7.15 and 7.16, no obligations shall 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 such obligations shall be issued and sold without the approval of the majority of the .registered 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 notice published in a newspaper(s) selected by the Council not more than 28 days nor less than 14 days prior to the hearing. (Amended Bill_No. 1993-7 Section 7.14. City Indebtedness. Except as provided in Sections 7.15 and 7.16, obligations 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, obligations may not be issued and sold without the approval of the majority of the 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 not more than 28 days nor less than 14 days prior to the hearing, NOTE: The public hearing requirement of the last sentence is rare in charters if not unique. In the normal case, there is extensive public discussion and input to the Council before such an election. There is no similar requirement in state law. 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 shall not exceed 90% of the total current taxes for the fund uncollected at the time of issuance. Such certificates shall 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 shall be irrevocably pledged for the redemption of the certificates in the order of their issuance against the fund... .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 DJK-224351v2 RC145-17 13 levied for anv fund and not yet collected. The total amount of certificates issued against anv fund for any year with interest thereon until maturity may not exceed 90% of the total current taxes for the fund uncollected at the time of issuance. Certificates. 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 Citx must be irrevocably pledged for the redemption of the certificates in the order of their issuance against the fund. Section 7.16. Emergency 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 years. A tax sufficient to pay principal and interest on such certificates with the margin required by law shall be levied as required by law. The resolution authorizing an issue of such emergency debt certificates shall state the nature of the emergency and be approved by a majority of the Council. Section 7.16. Emergency 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 mature within three years A tax sufficient to pay principal and interest on such certificates must be levied as required by law. The resolution authorizing an issue of such emergency debt certificates must state the nature of the emergency and be approved by a majority of all the members of the Council NOTE: This section duplicates existing law in Minnesota Statutes, Section 475.754, except for (i) the two year maturity; and (ii) the fact that certificates issued under the Charter are within the City's debt limit. There is no harm in leaving the section (as revised) but it could be removed without doing violence to the Charter. NEW SECTION 7.17. DJK-224351v2 RC145-17 14 Section 7.17. State Budget 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. NOTE: This section recognizes that the budget adoption and tax levying procedures in the Charter must conform to the State "truth in taxation laws". if these laws are repealed, the Charter procedure at sections 7.05 through 7.07 would control DJK-224351v2 RC145-17 15