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Article XII - Budget, Taxation and Finance

12.1 Fiscal Year
Unless otherwise provided by ordinance, the fiscal year of the City shall begin on the first day of January and end on the last day of December.

12.2 Proposed Budget
The City Manager shall submit the proposed budget for the ensuing fiscal year to the City Council on or before the 15th day of September of each year.

12.3 Scope of Budget
The proposed and the adopted budget for the ensuing fiscal year shall include but not be limited to the following:

(a) An estimate of anticipated revenues from all sources;

(b) An estimate of cash available, if any, as of December 31 of the present fiscal year;

(c) An estimate of proposed expenditures necessary for the operation of the City;

(d) The expenditures necessary for debt service;

(e) The proposed capital expenditures and methods of financing such expenditures;

(f) An estimate of the amount required to be raised from an ad valorem property tax levy, and

(g) The balance between total estimated expenditures and total anticipated revenues, including surpluses.

12.4 Public Hearing
There shall be at least two public hearings on the proposed budget before it is adopted by the City Council. There shall be a notice of the time and place of public hearing, which shall include the location of where the proposed budget is on file for public inspection. Such notice shall be published not later than five days prior to each public hearing in a newspaper of general circulation in the City, or in such other news media as authorized by City Council. (Amended November 5, 1991.)

12.5 Budget Adoption and Appropriation
On or before the first day of November of each year, the City Council shall adopt a budget for the ensuing fiscal year. Prior to the commencement of the fiscal year, the City Council shall make the appropriation for the ensuing fiscal year by ordinance. The amounts appropriated shall not exceed the balanced amounts between estimated revenues and estimated expenditures as set forth in the adopted budget.

12.6 Funds
(a) All revenues not specifically allocated to any other fund shall be deposited in the General Fund. The General Fund may provide for contingencies in such manner as determined by the City Council.

(b) Special funds may be created by ordinance in order to provide for the deposit of monies to be held or used for special purposes as determined by the City Council.

(c) The Capital Improvements Fund is hereby established for the purpose of paying the costs of capital improvements. The City Council may establish rules and regulations by ordinance for the administration of the Capital Improvements Fund.

12.7 Transfer of Funds
The City Manager may, at any time, transfer any unencumbered appropriation balance, or portion thereof, from one classification of expenditure to another within the same department, office, or agency. The City Manager shall report all such transfers to the City Council. The City Council may authorize the transfer of any unencumbered appropriation balance, or portion thereof, between administrative departments or among funds.

12.8 Supplemental Appropriations
The City Council may make supplemental appropriations by ordinance during the fiscal year for unanticipated expenditures required for the operation of the City, provided the aggregate of such supplemental appropriations made during the fiscal year does not exceed the amount by which actual and anticipated revenues for the fiscal year are exceeding the revenues as estimated in the adopted budget, or as such monies not anticipated in the adopted budget may otherwise become available to the City.

12.9 Appropriations to Lapse
Every appropriation shall lapse at the close of the fiscal year to the extent that it has not been encumbered or expended, except that an appropriation within the capital improvements fund or a special fund shall not lapse until the purpose for which the appropriation was made shall have been accomplished or abandoned.

12.10 Levy and Collection of Taxes
The City Council shall, by ordinance, provide for the levy and collection of taxes and special assessments by either the City or by the County or by the State.

12.11 Limitation on Sales and Use Tax Rates
No increase in municipal sales or use tax rates within the City shall take effect until such increase is approved at a special or regular municipal election by a majority of those registered electors voting thereon. The requirement for an election on sales or use taxes shall apply only to an increase in rates of sales or use taxes, and no election shall be required for the administration, revision, extension, or any other action taken by the City Council affecting sales and use taxes.

12.12 Limitation on Property Taxes
(a) The City Council shall not levy an ad valorem tax on taxable property in the City that provides revenue from such levy in an amount greater than was levied in the preceding year plus seven percent, except as hereafter provided. This limitation on the levy of an annual ad valorem tax on taxable property shall not apply for any purpose to the following:

(1) The payment of securities issued by the City pursuant to the provisions of this Charter if such securities and interest thereon are payable from ad valorem property taxes, and all such securities issued by the City shall be payable pursuant to the terms of issuance;

(2) The payment of any contractual obligation that has been approved by the registered electors of the City; and

(3) In the event the City, as the result of exclusion, dissolution, or as otherwise provided by law, continues to provide the services of a special district or special taxing district, the City Council may levy and collect the ad valorem property tax necessary to continue such services in an amount not to exceed that amount most recently levied by the special district or special taxing district for such services; provided, however, that any subsequent levy by the City pursuant to this subsection (a)(3) shall be subject to the seven percent limitation as provided herein.

(b) In computing the seven percent limitation, the following shall be excluded:

(1) The increased valuation for assessment attributable to annexation or inclusion of additional land, improvements thereon, and personal property connected therewith within the City for the preceding year;

(2) The increased valuation for assessment attributable to new construction and personal property connected therewith within the City for the preceding year; and

(3) The increased valuation for assessment attributable to increased volume of production for the preceding year by a producing mine or petroleum well if said mine or petroleum well is wholly or partially within the City and if such increase in volume of production causes a change in services or an increase in the level of services provided by the City.

(c) The City Council may submit the question of increasing the levy over the seven percent limitation for any one year to a vote of the registered electors of the City at a regular or special municipal election. If a majority of the registered electors voting thereon vote in favor of increasing the levy over the seven percent limitation, then the City Council may increase the levy for the year voted upon by the amount approved by the registered electors.

12.13 Accounting
The City Manager shall direct and administer a system of accounts and records in conformance with generally accepted municipal accounting practices.

12.14 Annual Audit
An audit of all City accounts and financial records shall be conducted annually by a certified public accountant selected by City Council. The City Council may call for special audits at any time.

12.15 Deposit of Funds
The City Treasurer may deposit funds in those depositories that are legally designated by state statute. The City Council may designate, by ordinance, those depositories in which funds of the City may be deposited, provided such depositories are legally authorized by statute.

12.16 Investment of Funds
(a) The City Treasurer is authorized to invest funds of the City in any of the following investments:

(1) Those investments that are legal for governmental entities as provided by statute;

(2) Bonds or other interest bearing obligations of any agency of the United States, and

(3) Repurchase agreements that are fully collateralized by obligations of the United States or any agency thereof.

(b) The City Treasurer shall adhere to the investment standards prescribed for pension and death and disability funds of the City by the Employee Retirement Income Security Act of 1974, as amended.