Fort Walton Beach Council agenda — 09-16-08 workshop agenda — reading text

long- range, goal- oriented, regionally sensitive planning of capital improvements. They should also help develop a meaningful relationship between capital and current operating expenditures. Finally, they should provide adequate time for systematic consideration of capital projects by the council. The Model requires that the manager submit the capital program three months prior to the final date for submission of the budget. This gives the council an opportunity to review the proposed projects and their cost and the methods of finance before the manager submits the annual budget. Actual capital expenditures are carried each year as the capital outlay section of the current budget. These expenditures may be in the form of direct capital outlays from current revenues or debt service payments. A sixth edition innovation continued in the seventh and eighth editions requires that the capital program include estimated operating and maintenance costs of proposed capital facilities. This forces more realistic projections of expenditures, because sometimes the operating cost of a facility will exceed the amortized annual capital charge. It also discourages neglect of maintenance. Section 5. 10. City Council Action on Capital Program. a) Notice and Hearing. The city council shall publish the general summary of the capital program and a notice stating: 1) The times and places where copies of the capital program are available for inspection by the public, and 2) The time and place, not less than two weeks after such publication, for a public hearing( s) on the capital program. b) Adoption. The city council by resolution shall adopt the capital program with or without amendment after the public hearing and on or before the day of the month of the current fiscal year. Commentary. The capital program' s adoption,which must be preceded by required publication, notice and hearing, means a positive commitment by the council to undertake a scheduled multi -year capital improvement program. The methods of financing the improvements will be detailed. Bond issues authorized by either a bond ordinance or by a popular referendum will finance major improvements. Most projects requiring bond issues will extend over a period of more than one year. Other projects, to be financed from current income, also may extend over more than one year and will normally involve construction contracts with adequate safeguards for both parties. Still other capital projects may be completed within a single fiscal period as part of the work program of various city departments. In all cases, actual disbursements for capital items during a single fiscal 37 year, whether in the form of debt service or direct outlays, are carried as the capital outlay section of the budget for that year. The requirement that the capital program each year be submitted well in advance of the budget enables the council to consider the proposed improvements, the methods for financing them, and the recommended priorities in sufficient time to make decisions on capital items which will be subsequently reflected in the budget. The fact that most capital improvement decisions must be made well in advance of actual disbursements means that the bulk of the capital items in a particular budget will be the result of decisions made several year earlier. Changes, often of a relatively minor nature, may be made each year. Because all states regulate borrowing for capital improvements by general legislation, no article on this subject is included. Section 5. 11 Independent Audit. The city council shall provide for an independent annual audit of all city accounts and may provide for more frequent audits as it deems necessary. An independent certified public accountant or firm of such accountants shall make such audits. Such audits should be performed in accordance with Generally Accepted Auditing Standards ( GAAS) and Standards ( GAGAS). Generally Accepted Governmental Auditing The Council shall designate no fewer than three of its members to serve as an Audit Committee. This Committee shall: 1) Lead the process of selecting an independent auditor; 2) Direct the work of the independent auditor as to the scope of the annual audit and any matters of concern with respect to internal controls; and 3) Receive the report of the internal auditor and present that report to the council with any recommendations from the Committee. The council shall, using competitive bidding, designate such accountant or firm annually, or for a period not exceeding five years, but the designation for any particular fiscal year shall be made no later than 30 days after the beginning of such fiscal year. The standard for independence is that the auditor must be capable of exercising objective and impartial judgment on all issues encompassed within the audit engagement. No accountant or firm the time it is to provide may provide any other services to the city during retained independent audits to the city. The city council may waive this requirement by a majority vote at a public hearing. If the state makes such an audit, the council may accept it as satisfying the requirements of this section. Commentary. Since the value of independent audits is directly related to the caliber of those who conduct them, it is provided that certified public accountants be retained, except when a state audit is required. W'? Selection of a professional accountant or firm does not lend itself to the usual requirement, however, of choosing the " lowest responsible bidder." While the council should not disregard cost, this is a case where the factors of competence, reliability and reputation are more significant. For an audit to be most beneficial, some of it must extend over the entire year, which necessitates designation of the auditor during the first month. If the state conducts periodic audits of the city's finances that meet council -established requirements, the state audit may be an acceptable and money- saving substitute for an audit by a private firm. While the Model emphasizes financial audits, the council also has a responsibility to institute performance and management audits to evaluate the operations of departments, services, and programs. Section 5. 12. Public Records. Copies of the budget, capital program, independent audits, and appropriation and revenue ordinances shall be public records. Commentary. In addition to compliance with the formal legal requirement that copies of the budget document and capital program be made available, many cities prepare and widely distribute popular summaries, which provide citizens with essential general information. Article VI ELECTIONS Introduction. Previous editions of the Model contained detailed provisions on the nomination and election process. Since the election laws of each state apply to municipalities whether or not they operate with a local charter, these provisions from earlier editions have been removed. The text on methods of electing council members that appears below has been moved from Article II in the earlier editions of the Model. Provision for nonpartisan elections and control over the timing of elections are among the few aspects of elections that remain under local discretion. Operating within the limitations imposed by state law, the city may by ordinance adopt regulations deemed desirable. Section 6. 01. City Elections. a) Regular Elections. The regular city election shall be held [ at the time established by state law] on the first [ day of week], in [ fall or spring month of odd- or even- numbered year], and every 2 years thereafter. b) Registered Voter Defined. All citizens legally registered under the constitution and laws of the state of to vote in the city shall be registered voters of the city within the meaning of this charter. 39  c) Conduct of Elections. The provisions of the general election laws of the state of shall apply to elections held under this charter. All elections provided for by the charter shall be conducted by the election authorities established by law. Candidates shall run for office without party designation. For the conduct of city elections, for the prevention of fraud in such elections and for the recount of ballots in cases of doubt or fraud, the city council shall adopt ordinances consistent with law and this charter, and the election authorities may adopt further regulations consistent with law and this charter and the ordinances of the council. Such ordinances and regulations pertaining to elections shall be publicized in the manner of city ordinances generally. d) Proportional Representation. The council may be elected by proportional representation by the method of the single transferable vote. e) Beginning of term. The terms of council members shall begin the _ day of _ after their election. Commentary. a -c) Although most states regulate local elections entirely or to a very substantial extent by state statutes, a local charter may provide certain variations. For example, home rule charters may provide for nonpartisan local elections as provided in this section. Traditionally, the Model has advocated separating municipal elections from state and national elections to allow a clear focus on local issues. State election laws and city charters frequently schedule municipal elections in the fall of odd -numbered years or in the spring of the year. However, recent evidence suggests that turnout is higher during state and national elections. Some now advocate moving local elections to coincide with state and national elections to increase participation in local races. The Committee that developed this Model recognized the trade -off involved with each choice and decided not to express a preference. If permissible under the state election laws, such timing should be specified in the charter. d) As in the sixth and seventh editions, the eighth edition includes proportional representation ( PR) via the single transferable vote method as an alternative means for electing the council. Until 1964 when the sixth edition of the Model City Charter was published), the Model recommended the Hare system ( also known as preference voting, choice voting, and the single transferable vote system) of PR as the preferred method of electing city councils. It had been used in 22 American cities but by the early 1960s had been discarded in all but Cambridge, Massachusetts, where it is still used to elect the city council and school committee. The Republic of Ireland also uses it to elect members of the House of Parliament. Unquestionably, PR provides the greatest equity in representing all sectors of the community. However, the relative complexity of PR when using antiquated voting procedures and the long and expensive process of counting ballots by hand concerned some voters where it was used and prevented it from becoming a widespread reform measure. There is renewed interest in PR because of its