The Detroit Charter and City Government
ARTICLE 8. PLANNING AND FINANCIAL PROCEDURES
CHAPTER 2. BUDGETS
Annotations By: Jacqueline Bejma
Sec. 8-201. Fiscal Year
The fiscal year is July 1- June 30
Except as otherwise provided by ordinance, the City’s fiscal year is July 1 through June 30. If the fiscal year is changed, related dates specified in the Charter shall change accordingly.
Sec. 8-202. Capital Agenda
The mayor will submit a 5 year proposed capital agenda to city council by November 1st December 1st of each year
The capital agenda will include:
- Physical improvements and related studies and surveys
- All equipment improvements
- Capital expenditures planned for each of the next 5 years
- Estimated annual cost of operating facilities to be constructed or acquired
- Other information for evaluation of the capital agenda
City council may delete projects from the capital agenda
City council cannot make other amendments to the capital agenda without the recommendations of the planning director
City council will not be bound by any recommendations of the planning director not received within 30 days
City council will publish a summary of the capital agenda in a daily newspaper including:
- Time and place where capital agenda can be viewed by the public
- At least 2 weeks notice for public hearing on the capital agenda
Heads of any agencies must be heard on issues related to the capital agenda
City council will approve the capital agenda by March 1 of the following year
Failure of the city council to approve the agenda results in automatic adoption
- On or before November 1 of each even numbered year, the Mayor shall submit a proposed Capital Agenda for the next five (5) fiscal years to the City Council.
- The Capital Agenda shall state:
- All physical improvements and related studies and surveys, all property of a permanent nature, and all equipment for any improvement when first erected or acquired, to be financed during the next five (5) fiscal years in whole or in part from funds subject to control or appropriation by the city, along with information as to the necessity for these facilities;
- Capital expenditures which are planned for each of the next five (5) fiscal years;
- The estimated annual cost of operating the facilities to be constructed or acquired; and
- Other information pertinent to the evaluation of the capital agenda.
For each separate purpose, project, facility, or other property there shall be shown the amount and the source of any money that has been spent or encumbered, or is intended to be spent or encumbered before the beginning of the next fiscal year and also the amount and the source of any money that is intended to be spent during each of the next five (5) years. This information may be revised and extended each year for capital improvements still pending or in process of construction or acquisition.
The City Council may delete projects from the capital agenda as submitted but it may not otherwise amend the capital agenda until it has requested the recommendations of the Planning and Development Director. The City Council shall not be bound by those recommendations and may act without them if they are not received within thirty (30) days from the date requested.
- The City Council shall publish in one (1) or more daily newspapers of general circulation in the city a general summary of the capital agenda and a notice stating:
- The time and places where copies of the proposed capital agenda are available for public inspection; and
- The time and places, not less than two (2) weeks after the publication, for a public hearing on the proposed capital agenda.
The head of any agency has the right, and it shall be a duty when requested by the City Council, to appear and be heard.
- At the conclusion of its deliberation, but not later than March 1 of the following year, the City Council shall approve a five (5) year capital agenda for the City. If the City Council fails to take action by March 1, the proposed Capital Agenda shall be deemed approved.
Sec. 8-203. Annual Budget
The city must establish, by ordinance, the date for the mayor to submit an annual budget to city council
Capital expenditures must be in a separate section of the annual budget
A proposed annual budget for police, fire, public works, water and sewerage, recreation, health and public lighting must be available before November 1 each year for public review and comment
Each department must publish a summary of program, service and activities funded in the current fiscal year
This summary must include funds spent, or encumbered in the current year
A notice announcing this summary must be published at least 10 days before a public review session
In accordance with law, the City shall establish by ordinance, dates upon which the Mayor shall submit to the City Council a proposed annual budget for the next fiscal year, and City Council to complete consideration of the budget. Proposed capital appropriations shall be set forth in a separate section of the annual budget.
Before November 1 of each year and prior to submitting a proposed annual operating budget, the departments of police, fire, public works, water and sewerage, recreation, health and public lighting shall conduct a public meeting to review programs, services and activities to be included in the budget and receive public comment.
Departments shall publish a general summary of programs, services and activities funded in the current fiscal year, in one (1) or more daily newspapers of general circulation in the city. The summary shall include funds spent or encumbered in the current fiscal year. The notice shall be published not less than ten (10) days before the day on which the meeting is held, and shall state date, time and place of the meeting.
Sec. 8-204. Budget
The city budget will be a complete financial plan for the next fiscal year
The city budget will contain estimated revenues from all sources
Any surplus or deficit from the current year must be included in the next year’s budget
The city budget must be balanced
- The budget shall constitute a complete financial plan for the city for the next fiscal year.
- The budget shall set forth estimated revenues from all sources and all appropriations. Any surplus or deficit during the fiscal year preceding that covered by the budget shall be entered as an item in the budget.
- The total of proposed expenditures shall not exceed the total of estimated revenues.
Sec. 8-205. Form of Appropriation
All appropriations to each agency will be made in one lump sum
Each agency and department must maintain generally accepted accounting practices
The city council may require supporting documentation for all appropriations
All appropriations to each agency shall be made in lump sums to the agency’s specific programs, services or activities, or to additional classes as the Mayor may recommend in the proposed budget, subject to amendment by deletion, addition or substitution by the City Council. However, the accounts of each department and agency shall be maintained in such detail as required by generally accepted standards of financial reporting. A uniform system of accounts shall be established as required by state law.
Sec. 8-206. Public Hearing
Public hearings must be held in a manner provided by law or ordinance
A public hearing in the manner provided by law or ordinance shall be held on the proposed budget before adoption.
Sec. 8-207. Amendment Before Adoption
The city council may adopt a budget with or without amendments after a public hearing
After the public hearing, the City Council may adopt the budget with or without amendment.
Sec. 8-208. Budget Adoption
The city council must follow any ordinance regarding consideration of the budget
Any mayoral objections to city council amendments must be submitted to the city council within 7 days
The city council must reconsider any mayoral objections; if 2/3 majority still disagree with the mayor, city council has final say
City council must reconsider all objections within 3 days of receipt
Consideration of the budget shall be completed by the City Council as provided by ordinance.
If the Mayor disapproves amendments made by the City Council, the Mayor shall within seven (7) days, submit to the City Council in writing the reasons for the disapproval.
The City Council shall proceed to reconsider any budget item so disapproved. If after reconsideration a two-thirds (2/3) majority of the City Council members serving agree to sustain any of the City Council’s amendments to the budget, those amendments so sustained shall be of full force and effect. The City Council’s reconsideration of the budget must be concluded within three (3) business days after receipt of the Mayor’s disapproval.
Sec. 8-209. Effect of Budget Adoption
Adoption of the city budget means:
- The amounts specified in the budget will be appropriated
- Any specified property tax will be levied
- Issuance of any specified bonds will be authorized
Adoption of the budget shall constitute:
- Appropriations of the amounts specified therein from the funds indicated;
- A levy of the property tax specified therein; and
- Authorization for the issuance of any bonds specified therein.
Sec. 8-210. Amendments After Adoption
If there are excess funds available, city council may reassign those funds to another program at the request of the mayor
The city council can authorize an emergency appropriation in case of public emergency
City council can authorize issuing emergency notes to cover the costs of a public emergency (if no excess funds are available)
- If during the fiscal year the Mayor advises the City Council that there are available for appropriation revenues in excess of those estimated in the budget, the City Council may make supplemental appropriations for the year up to the amount of the excess.
- To meet a public emergency affecting life, health, property or the public peace, upon request of the Mayor, the City Council may make emergency appropriations. To the extent that there are no available unappropriated revenues to meet those appropriations, the City Council may authorize the issuance of emergency notes as provided by this Charter or ordinance, in a manner consistent with state law.
Sec. 8-211. Transfer of Appropriations
The city council can, by resolution, transfer any or all appropriated funds to another program at the request of the mayor
At any time during the fiscal year upon written request by the Mayor, the City Council may, by resolution, transfer all or part of any unencumbered appropriation balance among the programs, services or activities within an agency or from one (1) agency to another.
Sec. 8-212. Report of Budget Deficit
Where, during the Fiscal Year, the head of any agency, department or City funded entity determines that the budget is in deficit, the head shall immediately notify, in writing, the Mayor and Budget Director of the reason for, and circumstance surrounding, the deficit. Within ten (10) business days of notification, the Budget Director shall request a hearing with the City Council to apprise it of the deficit and outline actions to remedy the deficit.
Sec. 8-213. Revenue Estimating Conference
The directors of the finance department, budget department, auditor general and city council’s fiscal analysis division shall hold a revenue estimating conference two times per year.
The revenues under consideration shall include all general fund, solid waste fund, and risk‐management fund revenues, and revenues of enterprise agencies that require a general fund subsidy.
The Directors of the Finance Department, Budget Department, Auditor General and City Council’s Fiscal Analysis Division shall hold a revenue estimating conference two times per year. The revenues under consideration shall include all general fund, solid waste fund, and risk-management fund revenues, and revenues of enterprise agencies that require a general fund subsidy. The parties shall also compile and consider any and all outstanding delinquent receivables in the possession of City agencies, departments and entities and, in conjunction with Corporation Counsel, recommend to the Mayor and City Council the most efficient means to collect this revenue, which may include collection procedures by the Law Department.
Sec. 8-214. Proportional Funding for Oversight Agencies
Key oversight agencies and departments must receive a mandatory base level of funding: Inspector General, Auditor General, Board of Ethics and Ombudsperson
Mayor and city council must determine this percentage of the total budget within 90 days of the effective date of this charter
The Detroit City Council shall establish a proportional method to fund oversight agencies to insure the proper oversight of executive and legislative branches of government. City Council shall arrive at an equitable proportional method to fund oversight agencies in local government. City Council shall prepare and adopt a proportional funding system within ninety (90) days of the effective date of this Charter.
The funding system shall include a formula to distribute funds to each of the agencies contained in this section and any other agencies added by ordinance. The internal cost allocation plan shall determine the amount of funds to be appropriated to each agency for oversight functions. The proportional funding system shall be enacted by ordinance. The ordinance shall contain this mandate to establish a proportional method of funding for oversight agencies, the list of agencies included in this section and other agencies determined by City Council.
The oversight agencies referred to in this section shall include the Office of the Inspector General, Auditor General, Ombudsperson and Board of Ethics.