(1) Prior to the passage of the annual operating budget ordinance, the Council shall adopt a capital program and a capital budget.

(2) The capital program shall embrace all physical public improvements and any preliminary studies and surveys relative thereto, the acquisition of property of a permanent nature, and the purchase of equipment for any public improvement when first erected or acquired that are to be financed in whole or in part from funds subject to control or appropriation by the Council. It shall show the capital expenditures which are planned for each of the six ensuing fiscal years. For each separate purpose, project, facility, or other property there shall be shown the amount, if any, and the source of the money that has been spent, encumbered, or is intended to be spent or encumbered prior to the beginning of the ensuing fiscal year and also the amounts and the sources of the money that are intended to be spent during each of the ensuing six years.

The Council may delete projects from the capital program as submitted to it, but it shall not otherwise amend the capital program until it has requested through the Mayor the recommendations of the City Planning Commission. The Council shall not be bound by such recommendations and may act without them if they are not received within thirty days from the date they were requested.

(3) The capital budget ordinance shall show in detail the capital expenditures intended to be made or incurred in the ensuing fiscal year that are to be financed from funds subject to control or appropriation by the Council, and shall be in full conformity with the part of the capital program applicable to the year which it covers. Amounts specified as intended to be spent out of new appropriations shall, upon enactment of the capital budget ordinance, constitute appropriations of such amounts.

The Council may amend the capital budget ordinance but no amendment shall be valid which does not conform to the capital program.

ANNOTATION

Sources: No specific source.

Purposes: 1. For the first time a definite budget procedure is established for the orderly planning and making of capital improvements. Two types of legislation are contemplated in the field of capital finances to make possible long range planning and current authorizations in accordance with such planning. The capital program is a blueprint of capital expenditures for the ensuing six years. The capital budget shows in detail the capital expenditures to be made or to be incurred during the next ensuing fiscal year.

2. The capital program will be prepared initially by the City Planning Commission whose special function is capital planning. The Mayor will submit it with his recommendations to the Council. Since the Mayor is ultimately responsible for the financial condition of the City, he is free to say he approves or disapproves of the program, in part or in whole; but he must forward to Council the Commission's initial recommendations.

3. The capital budget ordinance will also be prepared initially by the City Planning Commission and submitted with the Mayor's recommendation to the Council. The capital budget and amendments to it must conform with the capital program applicable to the year in question so that long range planning will not be upset. The capital budget encompasses funds appropriated by the Council as well as funds which the Council may control such as grants from the State and Federal governments.