Proposed Charter Amendment – New Section 7, Article X

ARTICLE X, SECTION 7.

MUNICIPAL SPENDING, SURPLUS AND TAXATION - LIMITS.

A)  SPENDING LIMITS.  The City Council shall not enact or otherwise authorize an increase in aggregate city expenditures for a fiscal year that exceeds the aggregate city expenditures for the previous fiscal year by a percentage that is greater than the sum of the rate of inflation plus the rate of population increase combined, or 3.5 percent a year, whichever was greater.  (1.) The City Council may enact or otherwise authorize an increase in aggregate city expenditures that exceeds the foregoing limitation only upon passage of an ordinance which (a.) specifically identifies the amount and purpose of the excess expenditures and the means by which the revenue necessary to fund the excess expenditures shall be generated, (b.) receives the affirmative vote of not less than two-thirds of the members of The City Council, and (c.) shall be subject to a vote of affirmation by a majority of electors at the next citywide special, primary or general election occurring more than sixty days after passage.  (d.) If a majority of electors voting at such an election approve the ordinance, the ordinance shall take effect thirty days after the election.

B)  SURPLUS LIMITS.  A 'Budget Reserve Fund' shall be established by The City Council for the purpose of receiving and holding budgetary reserves for the City.  (1.) Money may be appropriated directly to the said Budget Reserve Fund by legislation enacted by The City Council, provided that such appropriations to the Budget Reserve Fund for the fiscal year in which they are made shall be subject to the expenditure limitation established by subsection (A) of this section.  (2.) Additionally, at the end of each fiscal year, all unencumbered money in the separate general revenue funds and ten percent of all unencumbered money in all non-general revenue funds, as determined by The Director of Finance for the city shall be transferred to the Budget Reserve Fund by The City Council.  (3.) If, on the first day of the fiscal year, the said Budget Reserve Fund exceeds twenty percent (20%) of the aggregate city expenditures for the preceding fiscal year, all money in excess of that amount shall be refunded by The Director of Finance for the city on a pro rata basis to all individuals who paid Rocky River Real Estate Tax and/or Rocky River City Income Tax in the preceding calendar year.  (4.) Money in the Budget Reserve Fund may be expended by The City Council for any lawful purpose, provided that the aggregate expenditures from their separate Budget Reserve Fund for the fiscal year in which such expenditures are made shall be subject to the expenditures limitation established by subsection (A) of this section.  (5.) Any interest earnings from these said separate Budget Reserve Funds shall be credited to that specific fund.

C)  TAXATION LIMITS.  On and after the effective date of this section The City Council shall not (1.) levy a new tax, or (2.) increase the rate of an existing tax, without an affirmative vote of the majority of electors voting on the issue in the city (3.) and any and all tax levy and/or tax levies set and assessed by Rocky River Charter Law shall be renewed annually with an affirmative vote of the majority of electors voting on the issue in the city.

D)  EXCEPTIONS TO LIMITS.  However, The City Council may provide, by ordinance, that the limitations established in this section may be waived upon the affirmative vote of two-thirds of the members of The City Council, in a fiscal year only - (1.) in which the Mayor - shall first declare a ‘state of emergency’ caused only by a civil disorder, human suffering, flood, fire, storm or natural disaster - (2.) and if such a vote is subject to a referendum of the electors of the city.

E)  ENFORCEMENT OF LIMITS.  Council shall adopt and codify 'laws' that dictate what happens to elected Rocky River city officials and non-elected Rocky River city officials when they break the laws of this entire said section of Rocky River Charter Law.

F) All ordinances, resolutions, proclamations, motions and Charter provisions inconsistent with this section are hereby repealed and declared null and void.

G) This section’s subparts shall be severable and if any part, word or application thereof is held invalid for any reason, such holding shall not invalidate or affect the force and effect of any other part, word or application thereof.

H)  DEFINITIONS.  As used in this section:

(1.)  "Fiscal Year" means The Municipal Corporation of the City of Rocky River, Ohio and of the County of Cuyahoga fiscal year.

(2.)  "Aggregate City Expenditures" shall include all expenditures made by the Rocky River City Government - but shall not include expenditures (a) the source of funds for which is the federal government; (b) for tax relief; and (c) made from proceeds of gifts or bequests for purposes specified by the donor.

(3.)  "Rate of Inflation" means the rate of national inflation, as measured by the United States Department of Labor's Consumer Price Index (or its successor) for the most recent calendar year for which data is available.

(4.)  "Rate of Population Increase" means the rate of population growth in Rocky River, Ohio - as determined by the United States Bureau of the Census, for the most recent calendar year for which data is available.

(5.)  "The City" means the Municipal Corporation of the City of Rocky River, Ohio and of the County of Cuyahoga.