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CITY COUNCIL MEETING

2011 Budget

CITY OF HELENA-WEST HELENA

2011 ANNUAL OPERATING BUDGET

FOR CALENDAR AND FISCAL YEAR

JANUARY 1, 2011 THROUGH DECEMBER 31, 2011





November 22, 2010

 

The Department Heads have been provided with budget break-out sheets. The mayor has provided the budget projections based upon our receipts in 2006, 2007, 2008, 2009 and 2010. As this process proceeds, we will update this page.



For a look at the budgeting process, a work in process, please click on the following link:


Current-Budget-at-Work


 

Budget Law:



A.C.A. § 14-58-101

West's Arkansas Code Annotated Currentness
Title 14. Local Government
Subtitle 3. Municipal Government (Chapters 36 to 69)
View the full text of all sections at this level Chapter 58. Fiscal Affairs of Cities and Incorporated Towns
View the full text of all sections at this level Subchapter 1. General Provisions
Current Section§ 14-58-101. Audit by independent accountant


(a) The audit or agreed-upon procedures engagement of every municipality shall be made by the Division of Legislative Audit or other independent persons licensed and in good standing to practice accounting by the Arkansas State Board of Public Accountancy, to be selected by the governing body of the municipality.

(b) Any statutorily required audit of a municipality shall include, as a minimum, a review and comments on substantial compliance with each of the following Arkansas laws:

(1) Arkansas Municipal Accounting Law of 1973, § 14-59-101 et seq.;

(2) Arkansas District Courts and City Courts Accounting Law, §§ 16-10-201 et seq.;

(3) Improvement contracts, §§ 22-9-202 -- 22-9-204;

(4) Budgets, purchases, and payments of claims, etc., § 14-58-201 et seq. and 14-58-301 et seq[FN1]

(5) Investment of public funds, § 19-1-501 et seq.; and

(6) Deposit of public funds, §§ 19-8-101 -- 19-8-107.

(c)(1) For the purposes of this section, an audit shall be planned, conducted and the results of the work reported in accordance with generally accepted government auditing standards, if applicable.

(2)(A) The financial statements of municipalities shall be presented on a fund basis with, as a minimum:

(i) The general fund and the street fund presented separately; and

(ii) All other funds included in the audit presented in the aggregate.

(B) The financial statements shall consist of the following:

(i) A balance sheet;

(ii) A statement of revenues (receipts), expenditures (disbursements), and changes in fund equity (balances);

(iii) A comparison of the final adopted budget to the actual expenditures for the general fund and street fund of the entity; and

(iv) Notes to financial statements.

(C) The report shall include as supplemental information a schedule of general fixed assets, including land, buildings, and equipment.

(3) In the alternative to subdivision (c)(2) of this section, the governing body of the municipality may adopt an annual resolution requiring their audit to be performed in accordance with the guidelines and format prescribed by the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, and the United States Government Accountability Office, if applicable.

(d)(1) As an alternative to an audit, the municipal governing body may authorize an agreed-upon procedures engagement of the records and accounts.

(2) For the purposes of this section, agreed-upon procedures engagements shall be conducted in accordance with standards established by the American Institute of Certified Public Accountants and subject to the minimum procedures prescribed by the Legislative Auditor.

(e) The Legislative Joint Auditing Committee shall monitor the reports prescribed in this section to ensure that the reports meet the needs of the General Assembly, the public entities, and the general public.




A.C.A. § 14-58-201 

West's Arkansas Code Annotated Currentness
Title 14. Local Government
Subtitle 3. Municipal Government (Chapters 36 to 69)
View the full text of all sections at this level Chapter 58. Fiscal Affairs of Cities and Incorporated Towns
View the full text of all sections at this level Subchapter 2. Budgets in Mayor-Council Municipalities
Current Section§ 14-58-201. Submission deadline


On or before December 1 of each year, the mayor of all cities and incorporated towns having the mayor-council form of government shall submit to the governing body of the city or town, for its approval or disapproval, a proposed budget for operation of the city or town from January 1 to December 31 of the forthcoming year.




A.C.A. § 14-58-202 

West's Arkansas Code Annotated Currentness
Title 14. Local Government
Subtitle 3. Municipal Government (Chapters 36 to 69)
View the full text of all sections at this level Chapter 58. Fiscal Affairs of Cities and Incorporated Towns
View the full text of all sections at this level Subchapter 2. Budgets in Mayor-Council Municipalities
Current Section§ 14-58-202. Adoption deadline


Under this subchapter, the governing body of the municipality shall, on or before February 1 of each year, adopt a budget for operation of the city or town.





A.C.A. § 14-58-203 

West's Arkansas Code Annotated Currentness
Title 14. Local Government
Subtitle 3. Municipal Government (Chapters 36 to 69)
View the full text of all sections at this level Chapter 58. Fiscal Affairs of Cities and Incorporated Towns
View the full text of all sections at this level Subchapter 2. Budgets in Mayor-Council Municipalities
Current Section§ 14-58-203. Appropriations; alterations and limitations


(a) The approval by the municipal governing body of the budget under this subchapter shall, for the purposes of the budget from time to time amount to an appropriation of funds which are lawfully applicable to the items therein contained.

(b) The governing body may alter or revise the budget and unpledged funds appropriated by the governing body for any purpose may be subsequently, by action of the governing body, appropriated to another purpose, subject to the following exceptions:

(1) Funds resulting from taxes levied under statutes or ordinances for specific purposes may not be diverted to another purpose;

(2) Appropriated funds may not be diverted to another purpose where any creditor of the municipality would be prejudiced thereby.

ATTORNEY GENERAL'S OPINION ON BUDGETS:
Opinion No. 2001-230

September 26, 2001

The Honorable Randy Minton
State Representative
830 Minton Road
Ward, Arkansas 72176-8618

Dear Representative Minton:

I am writing in response to your request for an opinion on the following questions:

Does a second-class city have to pass its budget by ordinance?

Please explain the legal difference in a motion, an ordinance and a resolution.

RESPONSE

In my opinion the answer to your first question is “no.” In response to your second question, general definitions of these terms are set out below. 

Question 1-- Does a second-class city have to pass its budget by ordinance?

I assume, as an initial matter, that your question has reference to a city of the second-class with the mayor council form of government. The Arkansas Code provides, as regards such cities, that:

A.C.A. § 14-58-201

On or before December 1 of each year, the mayor of all cities and incorporated towns having the mayor-council form of government shall submit to the governing body of the city or town, for its approval or disapproval, a proposed budget for operation of the city or town from January 1 to December 31 of the forthcoming year. 

A.C.A. § 14-58-202

Under this subchapter, the governing body of the municipality shall, on or before February 1 of each year, adopt a budget for operation of the city or town. 

A.C.A. § 14-58-203

The approval by the municipal governing body of the budget under this subchapter shall, for the purposes of the budget from time to time amount to an appropriation of funds which are lawfully applicable to the items therein contained.

The governing body may alter or revise the budget and unpledged funds appropriated by the governing body for any purpose may be subsequently, by action of the governing body, appropriated to another purpose, subject to the following exceptions:

Funds resulting from taxes levied under statutes or ordinances for specific purposes may not be diverted to another purpose;
Appropriated funds may not be diverted to another purpose where any creditor or the municipality would be prejudiced thereby.

A.C.A. §§ 14-58-20, 202 and 203 (Repl. 1998).

The subchapter quoted from above does not specify whether the governing body must adopt the budget by ordinance. It has been stated in this regard that:

The governing body of a municipal corporation ordinarily can act only by ordinance or resolution. If the mode of the exercise of a power is not prescribed in the act or charter conferring the power or in some other statute, the power may be exercised by resolution as well as by ordinance or order. . . . 

62 C.J.S. Municipal Corporations, § 158 (emphasis added and footnotes omitted). 

It has also been stated by the Arkansas Supreme Court that “[w]here the law conferring authority on the city council to act does not require same to be exercised by ordinance, it may be exercised by resolution.” Coal District Power Company v. Booneville, 169 Ark. 1065, 1068, 278 S.W. 353 (1925), citing Batesville v. Ball, 100 Ark. 496, 140 Ark. 712 (1911) and Arkadelphia Lumber Co. v. Arkadelphia, 56 Ark. 350, 19 S.W. 1053 (1892). 

I can find no state law requirement specifying that the adoption of a municipal budget must be by ordinance. In my opinion, therefore, the answer to your first question is “no.” 

Question 2-- Please explain the legal difference in a motion, an ordinance and a resolution.

These terms are not defined in the Arkansas Code with particular reference to cities and towns.[1] 

The Arkansas Supreme Court, however, has quoted the following language with approval:

A resolution or order is not a law, but merely the form in which the legislative body expresses an opinion. An ordinance prescribes a permanent rule of conduct or government, while a resolution is of a special and temporary character. Acts of legislation by municipal corporations which are to have continuing force and effect must be embodied in ordinances, while mere ministerial acts may be in the form of resolutions. . . . Where the charter requires an act to be done by ordinance, or where such a requirement is implied, as it is here, by necessary inference, a resolution is not sufficient, but an ordinance is necessary.

Van Hovenberg v. Holman, 201 Ark. 370, 374, 144 S.W.2d 718 (1940), citing Village of Altamont v. Baltimore & Ohio S.W. Railroad Company, 184 Ill. 47, 56 N.E. 340 (19 ). 

It has also been generally stated that:

While the terms “resolution: and “ordinance” have been used interchangeably, and the term “resolution” has been held to be the equivalent of the term “ordinance,” and it has been held that a resolution may be treated as an ordinance, a resolution generally is less solemn and formal than an ordinance. A resolution is customarily passed without the forms and delays that constitutions and municipal charters generally require for the enactment of valid laws or ordinances.

62 C.J.S. Municipal Corporations, § 247 (footnotes omitted). 

It has also been held that “a resolution, particularly when used to express a ministerial act by a deliberative body, need not partake of any definite form and need not be a written instrument.” Steward v. Rust, 221 Ark. 286, 288, 252 S.W.2d 816 (1952). 

In addition, “motions” have been held to be forms of “resolutions.” Steward v. Rust, 221 Ark. 286, 288, 252 S.W.2d 816 (1952) citing Van Hovenberg v. Holman, 201 Ark. 370, 374, 144 S.W.2d 718 (1940). 

.Senior Assistant Attorney General Elana C. Wills prepared the foregoing opinion, which I hereby approve.

Sincerely,



MARK PRYOR
Attorney General

MP:ECW/cyh
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