What are the procedures for establishing a municipal fiscal year?

Establishing a municipal fiscal year involves a few procedures. In California, the process begins when the governing body of the municipality, usually composed of elected officials, decides that it is necessary to establish a municipal fiscal year. To create the fiscal year, the governing body must pass a resolution or ordinance setting out the exact start and end dates of the fiscal year, and it must be approved by a majority of the members of the governing body. Once the resolution or ordinance is approved, the municipality must ensure that all financial documents and transactions are filed and tracked accordingly. This includes filing documents with the Revenue and Taxation department of the State of California. The municipality also needs to adhere to the California Government Code, which stipulates that the fiscal year must be divided into two accounting periods and that the municipality must adopt a system of accounting that meets the requirements of California law. To fund its operations, the municipality must issue bonds in accordance with the municipal bond laws. This involves obtaining an official bond opinion from a third-party to ensure the bond issuance is valid and appropriate. The municipality must also develop a budget that is consistent with the established fiscal year; this includes evaluating its financial position and developing an operating budget and a debt management plan. Finally, the municipality must ensure that its financial documents and reports are filed in accordance with the Government Accounting Standards Board; this includes filing an annual financial report to the state controller each year. With this set of procedures, a municipality can effectively establish and follow a fiscal year.

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What are the procedures for establishing a municipal fiscal year?

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