§ 4.05. Action by the city council on budget.

(a)

The city council may amend the operation budget proposed by the city manager; except, that the budget as finally amended and adopted must provide for all expenditures required by law or by other provisions of this charter and for all debt service requirements for the ensuing fiscal year and the total appropriations from any fund shall not exceed the estimated fund balance, reserves and revenues, constituting the fund availability of such fund.

(b)

The city council shall adopt the final operating budget for the current fiscal year not later than August thirtieth of each year. If the city council fails to adopt the budget by this date, the amounts appropriated for the current operations for the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis with all items prorated accordingly until such time as the council adopts the budget for the ensuing fiscal year. Such adoption shall take the form of an appropriation ordinance setting out the estimated revenues in detail by source and making appropriations according to fund and by organizational unit, proposed or activity as set out in the budget document.

(c)

The amount set out in the adopted operating budget for each organizational department shall constitute the annual appropriations for such department, and no expenditure shall be made or encumbrance created in excess of the otherwise unencumbered balance of the appropriation, or allotment thereof, to which it is chargeable, except as provided in section 4.06 of this charter.