3.05.050 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 and adoption by the mayor and 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 the time requested by the finance officer each year and in such form as may be required by the finance officer.
(3) Submission to Council. The finance officer shall submit the completed budget proposal to the council.
(4) Resolution Establishing Maximum Property Tax Dollars. The council shall adopt a resolution establishing the total maximum property tax dollars that may be certified for levy that includes taxes for city government purposes under Code of Iowa Section 384.1, for the city’s trust and agency fund under Code of Iowa Section 384.6, Subsection 1, for the city’s emergency fund under Code of Iowa Section 384.8, and for the levies authorized under Code of Iowa Section 384.12, Subsections 8, 10, 11, 12, 13, 17 and 21, but excluding additions approved at election under Code of Iowa Section 384.12, Subsection 19. (Code of Iowa, Section 384.15A)
(a) The council shall set a time and place for a public hearing on the resolution before the date for adoption of the resolution and shall publish notice of the hearing not less than 10 nor more than 20 days prior to the hearing in a newspaper published at least once weekly and having general circulation in the city.
(b) If the city has an Internet site, the notice shall also be posted and clearly identified on the city’s Internet site for public viewing beginning on the date of the newspaper publication. Additionally, if the city maintains a social media account on one or more social media applications, the public hearing notice or an electronic link to the public hearing notice shall be posted on each such account on the same day as the publication of the notice. All of the following shall be included in the notice:
(i) The sum of the current fiscal year’s actual property taxes certified for levy under the levies specified in this subsection (4) and the current fiscal year’s combined property tax levy rate for such amount that is applicable to taxable property in the city other than property used and assessed for agricultural or horticultural purposes.
(ii) The effective tax rate calculated using the sum of the current fiscal year’s actual property taxes certified for levy under the levies specified in this subsection (4), applicable to taxable property in the city other than property used and assessed for agricultural or horticultural purposes.
(iii) The sum of the proposed maximum property tax dollars and rate that may be certified for levy for the budget year under the levies specified in this subsection (4) and the proposed combined property tax levy rate for such amount applicable to taxable property in the city other than property used and assessed for agricultural and horticultural purposes.
(iv) If the proposed maximum property tax dollars specified under subsection (4)(b)(iii) of this section exceed the current fiscal year’s actual property tax dollars certified for levy specified in subsection (4)(b)(i) of this section, a statement of the major reasons for the increase.
Proof of publication shall be filed with and preserved by the county auditor. The department of management shall prescribe the form for the public hearing notice for cities and the form for the resolution to be adopted by the council under subsection (4)(c) of this section.
(c) At the public hearing, the council shall receive oral or written objections from any resident or property owner of the city. After all objections have been received and considered, the council may decrease, but not increase, the proposed maximum property tax dollar amount for inclusion in the resolution and shall adopt the resolution and file the resolution with the county auditor as required under Code of Iowa Section 384.16, Subsection 3.
(d) If the sum of the maximum property tax dollars for the budget year specified in the resolution under the levies specified in this subsection (4) exceeds 102 percent of the sum of the current fiscal year’s actual property taxes certified for levy under the levies specified in this subsection (4), the council shall be required to adopt the resolution by a two-thirds majority of the membership of the council.
(e) If the city has an Internet site, in addition to filing the resolution with the auditor under Code of Iowa Section 384.16, Subsection 3, the adopted resolution shall be posted and clearly identified on the city’s Internet site for public viewing within 10 days of approval by the council. The posted resolution for a budget year shall continue to be accessible for public viewing on the Internet site along with resolutions posted for all subsequent budget years. Additionally, if the city maintains a social media account on one or more social media applications, the resolution or an electronic link to the resolution shall be posted on each such account within 10 days of approval by the council.
(5) 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.
(6) Notice of Hearing. Following, and not until, adoption of the resolution required under subsection (4) of this section, the council shall set a time and place for public hearing on the budget to be held before March 31st and shall publish notice of the hearing not less than 10 nor more 20 days before the hearing. A summary of the proposed budget and a description of the procedure for protesting the city budget under Section 384.19 of the Code of Iowa, in the form prescribed by the Director of the Department of Management, shall be included in the notice. Proof of publication of the notice under this subsection and a copy of the resolution adopted under subsection (4) of this section must be filed with the county auditor. (Code of Iowa, Section 384.16(3))
(7) Copies of Budget on File. Not less than 20 days before the date that the budget must be certified to the county auditor and not less than 10 days before the public hearing, the clerk shall make available a sufficient number of copies of the detailed budget to meet the requests of taxpayers and organizations, and have them available for distribution at the office of the mayor and clerk and at the city library. (Code of Iowa, Section 384.16(2))
(8) Adoption and Certification. After the hearing, the council shall adopt, by resolution, a budget for at least the next fiscal year and the finance officer shall certify the necessary tax levy for the following fiscal year to the county auditor and the county board of supervisors. The tax levy certified may be less than, but not more than, the amount estimated in the proposed budget submitted at the final hearing or the applicable amount specified in the resolution adopted under subsection (4) of this section. Two copies each of the complete budget as adopted and of the tax certificate must be transmitted to the county auditor. (Code of Iowa, Section 384.16(5)) [Ord. 578 § 1, 2020.]