Article 6: Finance and Taxation
Sec. 1. Fiscal year.
The fiscal year of the city shall commence on the first day of July each year.
Sec. 2. Council to provide for tax system; use of county services.
The council may by ordinance provide a system for the assessment, levy and collection of all city taxes, not inconsistent with the provisions of this charter; provided, however, the council shall have power to avail itself of any law of this state, now or hereafter in force, and comply with the requirements thereof whereby assessments may be made by the assessor of the county in which the city is situated and taxes collected by the tax collector of said county for and in behalf of the city.
Sec. 3. Submission of recommendations and estimates to council.
Each year, on or before the second regular council meeting in May, or on such date as determined by the council, the city manager, after consultation with the other city officers, shall prepare and submit in writing to the council recommendations for the next fiscal year with estimates of the city’s probable expenditures, including funds required to service any outstanding indebtedness, the amount of income expected from all sources, and the probable amount required to be raised by taxation.
Sec. 4. Preparation and tentative adoption of a budget; publication of budget and notice of meeting to fix tax levies.
The council shall meet annually prior to fixing the tax levy and make a budget of the estimated amounts required to pay the expenses of conducting the business of the city for the next fiscal year. The budget shall be prepared in such detail as provided by law and, together with a notice that the council will meet for the purpose of making tax levies, in accordance with said budget, at the time and place set out in said notice, shall be published as required by state law or ordinance.
Sec. 5. Public hearing and adoption of budget.
The council shall, at the first regular meeting in June and at the time and place designated in such notice, hold a public hearing at which any taxpayer may appear and be heard in favor of or against any proposed expenditure or tax levy. When such hearings shall have been concluded, the council shall finally determine and adopt estimates of proposed expenditures for the various purposes as set forth in the published proposal and such adopted estimates will constitute the budget for the next fiscal year.
Sec. 6. Exceeding adopted budget.
Nothing in this article shall be construed to limit the power of the council to exceed the adopted budget for emergency or unanticipated municipal expenditures, as provided by state law.
Sec. 7. Adoption of ordinance fixing tax rate.
On the day set for making tax levies, but not later than the third Monday in August, the council shall meet and adopt an ordinance levying upon the assessed valuation of the property within the city, subject to the provisions of this charter, a rate of taxation upon each one hundred dollars ($100.00) of valuation, sufficient to raise the amounts estimated to be required in the annual budget, less the amounts estimated to be received from fines, licenses and other sources of revenue.
Sec. 8. Additional taxes for special purposes.
The council shall have the power to levy and collect taxes in addition to the taxes herein authorized to be levied and collected, sufficient to pay the interest and maintain the sinking fund of the bonded indebtedness of the city and an additional amount deemed to be advisable and necessary for any public or municipal purposes.
Sec. 9. Transaction privilege tax.
The council shall have the power to levy a transaction privilege tax provided that no such tax levy computed or measured on the gross receipts, gross income or gross proceeds of sales of the taxpayer without deduction for cost of goods, or property or services sold or other costs shall be levied at a rate in excess of one percent of such gross receipts, gross income or gross proceeds of any such taxpayer unless such rate is approved by a majority of the qualified electors of the city, voting on the question whether such a rate should be approved at a general or special election wherein such question has been submitted.
Sec. 10. Tax exempt property.
All the property within the city shall be subject to taxation, except that property which is exempt from taxes under the laws of the United States and the laws of this state.
Sec. 11. Transfer of appropriations.
The city manager, subject to the approval of the council, may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department or agency. At the request of the city manager, the council may transfer any unencumbered appropriation balance or portion thereof from one office, department or agency to another.
Sec. 12. Claims or demands against the city.
The time and manner for making notice of a claim against the city shall be as set forth in state law. The council shall prescribe by ordinance procedures relating to the auditing and payment of a claim.
Sec. 13. Transfer of sums from any funds to principal and interest funds.
Whenever there shall not be sufficient moneys, in any of the interest or principal reduction funds for bonded indebtedness of the city to pay the interest or any principal payment on such bonded indebtedness when due, the council shall direct the transfer from the general or any other fund having moneys therein, except private contributions or endowment funds in the possession or control of the city, to such interest or principal funds the necessary amounts of money to pay the interest or principal payment due on said bonded indebtedness, and the amount so transferred shall be returned to the respective funds from which such transfer was made whenever sufficient moneys shall accrue in said bonded indebtedness funds.
Sec. 14. Independent annual audit.
Prior to the end of each fiscal year the council shall designate certified public accountants who shall perform an independent audit of the city’s annual financial statements in accordance with generally accepted government auditing standards. The certified public accountants shall be independent of the city government, having no personal interest, direct or indirect, in the fiscal affairs of city government or any of its officers. The certified public accountants shall submit their reports to the council. All such audit reports shall be a matter of public record.
Sec. 15. Investment of funds.
The council shall have the authority to invest all funds available at the highest available interest rate, assuring that all moneys are fully secured.
Sec. 16. Capital improvements excluded from expenditure limitations.
The City of Scottsdale may accumulate and expend local revenues for the purpose of purchasing land, buildings or improvements or constructing buildings or improvements as funds excluded from expenditure limitations pursuant to article IX, section 20(3)(d)(viii) Arizona Constitution.