Chapter 7 – Fiscal Management

(IAC, 545-2.5[384,388], Sec. 2.5[2]) 4. Debt Service Fund. Except where specifically prohibited by State law, moneys may be transferred from any other City fund to the Debt Service Fund to meet payments of principal and interest. Such transfers must be authorized by the original budget or a budget amendment. (IAC, 545-2.5[384,388] Sec. 2.5[3]) 5. Capital Improvements Reserve Fund. Except where specifically prohibited by State law, moneys may be transferred from any City fund to the Capital Improvements Reserve Fund. Such transfers must be authorized by the original budget or a budget amendment. (IAC, 545-2.5[384,388] Sec. 2.5[4]) 6. Utility and Enterprise Funds. A surplus in a Utility or Enterprise Fund may be transferred to any other City fund, except the Emergency Fund and Road Use Tax Funds, by resolution of the Council. A surplus may exist only after all required transfers have been made to any restricted accounts in accordance with the terms and provisions of any revenue bonds or loan agreements relating to the Utility or Enterprise Fund. A surplus is defined as the cash balance in the operating account or the unrestricted retained earnings calculated in accordance with generally accepted accounting principles in excess of: A. The amount of the expense of disbursements for operating and maintaining the utility or enterprise for the preceding three (3) months, and B. The amount necessary to make all required transfers to restricted accounts for the succeeding three (3) months. (IAC, 545-2.5[384,388], Sec. 2.5[5]) 7. Balancing of Funds. Fund accounts shall be reconciled at the close of each month and a report thereof submitted to the Council. 7.05 OPERATING BUDGET PREPARATION. The annual operating budget of the City shall be prepared in accordance with the following: 1. Proposal Prepared. The finance officer is responsible for preparation of the annual budget detail, for review by the Mayor and Council and adoption by the Council in accordance with directives of the Mayor and Council. 2. Boards and Commissions. All boards, commissions and other administrative agencies of the City that are authorized to prepare and administer budgets must submit their budget proposals to the finance officer for inclusion in the proposed City budget at such time and in such form as required by the Council. 3. Submission to Council. The finance officer shall submit the completed budget proposal to the Council no later than February 15 of each year. 4. Council Review. The Council shall review the proposed budget and may make any adjustments in the budget which it deems appropriate before accepting such proposal for publication, hearing and final adoption. 5. Notice of Hearing. Upon adopting a proposed budget the Council shall set a date for public hearing thereon to be held before March 15 and cause notice of such hearing and a summary of the proposed budget to be published not less than ten (10) nor more than twenty (20) days before the date established for the hearing. Proof of such publication must be filed with the County Auditor. (Code of Iowa, Sec. 384.16[3])