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Committee clarifies charter language: financial transfers generally require two-thirds vote year-round
Summary
The Charter & Rules Committee moved amendments that modernize Section 49 (transfers and appropriations) and reaffirm that transfers between appropriations require a two-thirds vote of all council members throughout the fiscal year; it also reflects the July 1 fiscal-year start.
The Charter & Rules Committee voted to forward an amendment to Charter Section 49 that clarifies the city’s rules for transfers and appropriations.
The proposed change updates archaic phrasing, confirms the fiscal year begins July 1, and states explicitly that no expenditure or liability shall be incurred until a sufficient appropriation or financial transfer has been voted by the city council. Importantly, the amendment restates that a two-thirds vote of all council members is required for transfers, and the committee added language saying that the provisions apply during all 12 months of the fiscal year.
Councilors and staff discussed recent Department of Revenue (DOR) guidance and legislative changes that allow some municipalities flexibility to permit majority votes in the last two months of a fiscal year. Committee members said they believe the DOR guidance does not override charter language unless the charter is changed, and the committee chose to keep the two-thirds requirement for transfers year-round while acknowledging that withdrawals from certain “special stabilization” funds may be governed by statute.
Councilor Durden, who sponsored the amendment language, said the change modernizes 19th-century language and avoids unintended interpretations that have arisen in practice. The committee approved the language and forwarded it to the full council with recommendation.
