Chapter 54
FINANCE AND TAXATION
[HISTORY: Adopted by the Common Council of the City of Bayfield 4-1-1992 (§§ 3-1-1 through 3-1-18 and 3-4-1 through 3-4-7 of the 1992 Code of Ordinances). Amendments noted where applicable.]
§ 54-1. Fee for returning checks with insufficient funds; reimbursement of collection costs.
A. There shall be a fee as set by the Common Council for processing checks made payable to the City that are returned for any reason in the account in question. [Amended 2-9-2005 by Ord. No. 3231]
B. Collection costs and attorney fees shall be added to the principal amounts of unpaid bills owed to the City that are placed with collection agencies.
§ 54-2. Duplicate treasurer's bond eliminated.
A. Bond eliminated. The City of Bayfield elects not to give the bond on the City Clerk or City Treasurer provided for by § 70.67(1), Wis. Stats.
B. City liable for default of treasurer. Pursuant to § 70.67(2), Wis. Stats., the City shall be obligated to pay, in case the City Treasurer shall fail to do so, all state and county taxes required by law to be paid by such City Treasurer to the County Treasurer.
§ 54-3. City budget.
A. Departmental estimates. On or before August 1 of each year, each officer, department, board and committee shall file with the City Treasurer an itemized statement of disbursements made to carry out the powers and duties of such officer, department, board or committee during the preceding fiscal year, and a detailed statement of the receipts and disbursements on account of any special fund under the supervision of such officer, department, board or committee during such year, and of the conditions and management of such fund; also detailed estimates of the same matters for the current fiscal year and for the ensuing fiscal year. Such statements shall be presented in the form prescribed by the City and shall be designated as "departmental estimates," and shall be as nearly uniform as possible for the main division of all departments.
B. Consideration of estimates. The Mayor shall consider such departmental estimates in consultation with the department heads, and recommend to the Common Council a budget amount for such department or activity.
C. Proposed budget. On or before September 1, the Mayor shall prepare and submit to the Common Council a proposed budget presenting a financial plan for conducting the affairs of the City for the ensuing calendar year. The budget shall include the following information:
(1) The expense of conducting each department and activity of the City for the ensuing fiscal year and last preceding fiscal year, with reasons provided for increase and decrease recommended as compared with appropriations for the current year.
(2) An itemization of all anticipated income from the City from sources other than general property taxes and bonds issued, with a comparative statement of the amounts received by the City from each of the same or similar sources for the last preceding and current fiscal year.
(3) An estimate of the amount of money to be raised from general property taxes which, with income from other sources, will be necessary to meet the proposed expenditures.
(4) Such other information as may be required by the Common Council and by state law.
D. Copies of budget. The City Clerk or City Treasurer shall provide a reasonable number of copies of the budget summary thus prepared for distribution to citizens. The entire fiscal budget shall be available for public inspection in the office of the City Clerk during regular office hours.
E. Hearing.
(1) The Mayor shall submit to the Council at the time the annual budget is submitted the draft of an appropriation resolution providing for the expenditures proposed for the ensuing fiscal year. Upon the submission of the proposed appropriation resolution to the Council, it shall be deemed to have been regularly introduced therein.
(2) A summary of such budget and notice of the time and place where such budget and detail is available for public inspection and notice of the time and place for holding the public hearing thereof shall be published in the official newspaper of the City at least 15 days prior to the time of such public hearing.
(3) Not less than 15 days after the publication of the proposed budget and the notice of hearing thereof, the public hearing shall be held at the time and place stipulated, at which time any resident or taxpayer of the City shall have an opportunity to be heard on the proposed budget. The budget hearing may be adjourned from time to time.
(4) A majority vote of the Common Council is required to adopt the proposed budget.
§ 54-4. Changes in budget.
Upon written recommendation of the Mayor, the Council may at any time, by a two-thirds vote of the entire membership, transfer any portion of an unencumbered balance of an appropriation to any other purpose or object. Notice of such transfer shall be given by publication within 10 days thereafter in the official newspaper of the City.
§ 54-5. Expenditures to conform to appropriation.
No money shall be drawn from the treasury of the City, nor shall any obligation for the expenditure of money be incurred, except in pursuance of the annual appropriation in the adopted budget or when changed as authorized by § 54-4 of this chapter. At the close of each fiscal year, any unencumbered balance of an appropriation shall revert to the general fund and shall be subject to reappropriation; but appropriations may be made by the Common Council, to be paid out of the income of the current year, in furtherance of improvements or other objects or works which will not be completed within such year, and any such appropriation shall continue in force until the purpose for which it was made shall have been accomplished or abandoned.
§ 54-6. Fiscal year.
The calendar year shall be the fiscal year.
§ 54-7. Public depositories. 2
The Common Council shall designate the public depository or depositories within this state within which City funds shall be deposited, and when the money is deposited in such depository in the name of the City, the City Clerk, City Treasurer and bondsman shall not be liable for such losses as are defined by state law. The City Treasurer shall invest and the interest arising therefrom shall be paid into the City treasury.
§ 54-8. Claims against City.
A. Payment of claims. In addition to, and in lieu of the other methods provided by statute for the payment of claims against the City, financial claims against the City may be paid from the City treasury after the Clerk or Treasurer shall have audited and approved each such claim as a proper charge against the treasury and shall have endorsed his approval thereon, after having determined that the following conditions have been complied with:
(1) That funds are available therefor, pursuant to the budget approved by the Council;
(2) That the item or service covered by such claim has been duly authorized by the proper official, department head, or board or commission;
(3) That the item or service has been actually supplied or rendered in conformity with such authorization;
(4) That the claim is just and valid, pursuant to law. The Clerk or Treasurer may require the submission of such proof and evidence to support the foregoing as in his discretion he may deem necessary.
B. Auditing of accounts.
(1) No account or demand against the City, except as provided in Subsection C of this section, shall be paid until it has been passed upon by the Common Council and an order drawn on the City Treasurer therefor. Every such account shall be itemized and certified as provided in Subsection A.
(2) If the Common Council shall approve the same, it shall direct the Treasurer to issue a City order for the amount of the claim approved. All money paid out of the City treasury shall be paid upon an order signed by the Mayor and countersigned by the Treasurer, except that payments of regular wages or salaries shall be as provided in Subsection C below. The minutes of the proceedings of the Council or a statement attached thereto, shall show to whom, and for what purpose, every such account was allowed and the amount.
C. Payment of regular wages, salaries or previously council-authorized expenditures wherein a discount applies for prompt payment. Regular wages or salaries of City officers and employees shall be paid by payroll, verified by the proper City official or department head, and filed with the Treasurer in time for payment on the regular pay day. In addition, the Mayor and/or appropriate department heads may certify invoices for payment wherein a delay to obtain Common Council approval would result in the loss of a discount. This applies only to budgeted items and/or items previously authorized by the Common Council.
§ 54-9. Temporary investment of funds not immediately needed.
The City Treasurer may invest any City funds not immediately needed, pursuant to §§ 66.0603(lm) and 219.05, Wis. Stats., and applicable investment policies adopted by the Common Council.
§ 54-10. Receipt of money.
A. The City Clerk and/or City Treasurer or their deputies shall not receive any money into the treasury from any source except on account of taxes levied and collected during the fiscal year for which they may then be serving, without giving a receipt therefor in the manner specified by the Common Council.
B. Upon the payment of any money (except for taxes as herein provided), the City Clerk and/or City Treasurer shall make out a receipt in duplicate for the money so received. The Treasurer shall charge the amount thereof to the treasury and credit the proper account. The payment of the money to any receiving agent of the City or to the City or to the Treasurer shall be safeguarded in such manner as the Common Council shall direct.
§ 54-11. Statement of real property status. 3
The Treasurer is authorized to prepare a Statement of Real Property Status form to be used to provide information often requested for transfers of real property such as the amount of outstanding special assessments, deferred assessments, changes in assessments, amount of taxes, outstanding water, electric, and sewer bills, current water and sewer bills, contemplated improvements, floodplain status, violations of the building and health codes and similar information. Any such information sought shall be provided to the person requesting it on said form. A minimum of 48 hours is required for preparation of a statement of real property status. There shall be a fee as set by the Common Council for compiling such information.
§ 54-12. Accounts receivable billing procedures.
Billings by the City may be paid within 30 days after billing without interest. Thereafter, interest may be charged at the rate of 1 1/2% per month or any fraction thereof, until the following 15th day of November. Bills not paid on or before the 15th day of November shall have added to the total amount due 1 1/2% of said charges shall be entered on the tax roll as a special charge and become a lien upon real estate.
§ 54-13. Annual audits.
A firm of certified public accountants shall be employed each year by the City, subject to the confirmation of the Common Council, to conduct a detailed audit of the City's financial transactions and its books, and to assist the Treasurer in the management of the City's financial affairs, including the City's public utilities. These auditors shall be employed on a calendar-year basis. The books audited may, in addition to the City financial records of the office of the Treasurer, include the City Treasurer's books, the City's public utilities, Police Department records, and any other books of any boards, commission, officers or employees of the City handling City moneys.
§ 54-14. Liability of City for acts of agents.
No agent of the City having authority to employ labor or to purchase materials, supplies or any other commodities may bind the City or incur any indebtedness for which the City may become liable without approval of the Council. Each such employment or purchase order shall be drawn against a specific appropriation, the money for which shall be available in the City treasury and not subject to any prior labor claims or material purchase orders at the time when such employment is negotiated or purchase order drawn. The City Treasurer shall keep a record of such employment and purchase orders and shall charge them against the proper appropriation.
§ 54-15. Bid solicitation procedures.
A. Definitions.
(1) Verbal quotation form. The City solicits verbal quotations on items the City purchases which are $10,000 or less. The results of the verbal quotations are recorded on a memorandum of verbal quotation form.
(2) Informal quotation. An informal quotation is a written request for quotation sent to vendors. The informal quotation is used for the purchase of goods and services in an amount $10,000 or less.
(3) Formal bid. The formal bid procedure is used for purchasing goods and services in an amount over $10,000, and in some instances in amounts less than this amount. The formal bid procedure requires a legal public notice and contains detailed, written specifications regarding the goods and services to be purchased and a number of specific conditions associated with the purchase.
B. Bid solicitation.
(1) Competitive bids or quotations shall be obtained before contracting to purchase articles, goods, wares, material services or merchandise which amount in bulk to more than $1,000. Competitive bids and/or quotations may be waived at the discretion of the department head provided the quotation form is annotated "standard catalog items - price known to be fair and reasonable." Purchases up to $1,000 may be made by either telephone quotation, informal written quotation or formal bid. Purchases from $1,000 to and including $10,000 shall be made by written quotation, telephone quotation or formal bid. Purchases over $10,000, pursuant to Subsection A above, shall be made by formal bid unless exempted from it by action of the Common Council.
(2) For purchases in excess of $1,000, quotations for goods and services shall be secured from at least two qualified vendors and the results of the quotations shall be recorded on the "memorandum of verbal quotation" form and signed by the person receiving the quotation.
(3) When it is determined that an emergency exists, or delays may be incurred that would significantly hamper the completion of a project, department heads may waive the requirements for solicitation of bids provided that they furnish written documentation as to the reason for not obtaining competitive prices.
(4) When a formal bid is required or deemed to be in the best interests of the City, the bidding procedure shall follow the legal requirements associated with a Class 1 notice under State Statute and the procedures normally associated with the formal bid proposal.
(5) The formal bid proposal will contain at least the following information:
(a) The bid number.
(b) A detailed description of the goods and services required, including enough information about the items or services required so that more than one vendor can meet the specifications.
(c) The time, date and place the bids will be opened.
(d) The address to which the bids shall be mailed or delivered. Instructions to bidders shall include such information as delivery dates, transportation charges, proposal prices, conditions for guaranteeing the proposal, payment terms, right of rejection of proposals, right to reject merchandise, insurance requirements, alternative proposal consideration, tax information, and other appropriate information regarding the awarding and execution of the contract and contract considerations.
(e) The bid proposal shall also include a section on special provisions including guarantees and service considerations, trade-in considerations, and other information relating to special conditions.
(6) Specifications for all items purchased shall be developed with the full involvement and participation of the using departments. However, the Mayor shall insure that the specifications are sufficiently broad enough that competition in the bidding process is preserved.
C. Blanket purchase orders.
(1) Upon authorization by the Common Council, the City Clerk or Public Works Director may issue blanket purchase orders to those few merchants from whom many repetitive purchases are made as supplies are required.
(2) The Common Council shall determine the need to use a blanket purchase order procedure.
(3) The bidding procedure for blanket purchase orders may follow the procedures used for other goods and services.
(4) After a vendor has been selected, the using department or departments shall use the same purchase order number on all purchases made under the blanket purchase order. The Common Council shall authorize the individual or individuals who shall have the authority to sign for purchases under the blanket purchase order procedure.
§ 54-16. Public construction.
Pursuant to the provisions of § 62.15, Wis. Stats., the City of Bayfield is authorized and empowered to directly undertake and execute all classes of public construction, or any part thereof, under its immediate supervision and control, without submitting the same for bids. In the alternative, the Council may, from time to time, require that certain types of public construction be submitted for bids.
§ 54-17. Overdue personal property taxes.
Overdue personal property taxes shall be assessed an interest charge of 1% per month.
§ 54-18. Premier resort area tax.
A. Title. This section may be cited as the "City of Bayfield Premier Resort Area Tax Ordinance."
B. Authority. This section is enacted under the authority of 1) § 66.1113(2)(f), Wis. Stats.; and Subchapter X of Ch. 77, Wis. Stats., and acts amendatory thereto.
C. Definitions. As used in this section, the following words have the meanings indicated:
INFRASTRUCTURE EXPENSES --% Those expenses specifically referred to in § 66.1113(1)(a), Wis. Stats.
PREMIER RESORT AREA TAX --% The premier resort area tax referred to in § 77.994, Wis. Stats.
D. Findings. The Common Council of the City of Bayfield makes the following findings and determinations, to wit:
(1) That the City of Bayfield (the "City") is a political subdivision of the State of Wisconsin; and
(2) That the Common Council has determined that the City will have in the future certain infrastructure expenses, as that term is defined in § 66.1113(1)(a), Wis. Stats., and that the declaration of the City as a premier resort area and imposition of the premier resort area tax pursuant to § 66.1113(2)(b), Wis. Stats., would serve a public purpose by providing recreation and transportation facilities, encouraging economic development and tourism, and promoting the public safety and welfare of the people of the City.
(3) Purpose. The sole purpose of the City of Bayfield in enacting this section is to raise revenues from the premier resort area tax imposed by this section to pay for infrastructure expenses in accordance with the terms of § 66.1113, Wis. Stats.
(4) Declaration of premier resort area. Pursuant to its authority under § 66.1113(2)(f), Wis. Stats., the City hereby declares the City to be a "premier resort area," as that term is defined in § 66.1113(1)(c), Wis. Stats.
(5) Premier resort area tax. Pursuant to, and in strict conformity with, the provisions of § 66.1113, Wis. Stats., and Subchapter X of Ch. 77, Wis. Stats., the City of Bayfield does hereby elect to impose a premier resort tax in the manner and to the extent permitted by Subchapter X of Ch. 77, Wis. Stats.
(6) Premier resort area tax rate. The premier resort area tax imposed by this section shall be at the rate of 0.5%.
(7) Conformity to state laws. It is the express intent of the City of Bayfield that the construction, administration and application of this section to all persons in all situations shall conform to the laws of the State of Wisconsin in all ways, and it shall be so construed, applied and administered.
(8) Severability. The provisions of this section are severable. If any section, subsection, sentence, clause, phrase or portion of this section is for any reason held invalid or unconstitutional, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portion thereof.
(9) Effective date. This section shall become effective as of the first day of January 2003.
§ 54-19. Hotel-motel room tax.
A. Definitions. In this chapter, the following definitions shall apply:
GROSS RECEIPTS --% As defined in § 77.51(4)(a), (b) and (c), Wis. Stats., insofar as applicable.
HOTEL or MOTEL --% A building or group of buildings in which the public may obtain accommodations for a consideration, including, without limitation, such establishments as inns, motels, tourist homes, tourist houses or courts, bed-and-breakfast establishments, lodging houses, rooming houses, summer camps, apartment hotels, resort lodges and cabins and any other building or group of buildings in which accommodations are available to the public, except accommodations rented for a continuous period of more than one month and accommodations furnished by any hospital, sanitariums or nursing homes or by corporations or associations organized and operated exclusively for religious, charitable or educational purposes provided that no part of the net earnings of such corporations and associations inures to the benefit of any private shareholder or individual.
SITES --% A campground pad or location for which the public may obtain accommodations for a consideration, including without limitation, such establishments as state and private owned campgrounds, except accommodations rented for a continuous period of more than one month and accommodations furnished by corporations or associations organized and operated exclusively for religious, charitable or educational purposes, provided that no part of the net earnings of such corporations and associations inures to the benefit of any private shareholder or individual.
TRANSIENT --% Any person residing for a continuous period of less than one month in a hotel, motel or other furnished accommodations available to the public.
B. Imposition of tax. Pursuant to § 66.0615, Wis. Stats., a tax is hereby imposed on the privilege and service of furnishing, at retail, of rooms, lodging, or sites to transients by hotelkeepers, motel operators and other persons furnishing accommodations that are available to the public, irrespective of whether membership is required for the use of the accommodations. Such tax shall be at the rate of 6 1/2% of the gross receipts from such retail furnishing of rooms, lodgings, or sites. Such tax shall not be subject to the selective sales tax imposed by § 77.52(2)(a)1, Wis. Stats. A portion of the proceeds of said tax will be shared with the Bayfield Chamber of Commerce for use in advertising and promotion of hospitality and tourist business in the Bayfield area. A written agreement, binding for a maximum of one year, will specify the percentage of the accommodation tax to be paid the Chamber of Commerce annually. The terms of this agreement cannot be altered by either party during the specified period it is in force.
C. Collection of tax.
(1) Administration by City Treasurer.
(a) This tax shall be administered by the City Treasurer who shall, at City expense, provide the necessary application and reporting forms at no cost to the taxpayer. The tax imposed is due and payable within 30 days of the end of each calendar quarter. A return shall be filed with the Treasurer, by those furnishing at retail such rooms, lodging or sites within the City on or before the same date on which such tax is due and payable upon a form approved by the City Treasurer. Every person required to file such quarterly returns shall file an annual calendar year return. Such annual return shall be filed within 30 days of the close of each calendar year.
(b) The annual return shall summarize the quarterly returns, reconcile and adjust for errors in the quarterly returns, and shall contain certain such additional information as the Treasurer requires. The Treasurer may, for good cause, extend the time for filing any return, but in no event longer than one month from the filing date.
(2) Application for permit. Every person furnishing rooms of lodging under Subsection B shall file with the City Treasurer an application for a permit for each place of business. Each application for permit shall be made upon a form prescribed by the City Treasurer and shall set forth the name under which the applicant transacts or intends to transact business, the location of his/her place of business and such other information as the City Treasurer requires. The application shall be signed by the owner, if a sole proprietor and, if not a sole proprietor, by the person authorized to act on behalf of such seller. At the time of making an application, the applicant shall pay to the City Treasurer a fee as set by the Common Council.4
(3) Issuance of permit. After compliance with Subsection C(2) above by the applicant, the City Treasurer shall grant and issue to each applicant a separate permit for each place of business within the City. Such permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein.
(4) Failure to comply.
(a) When any person fails to comply with this chapter, the Treasurer may, upon 10 days' notification and after affording such person the opportunity to show cause why his/her permit should not be revoked, revoke or suspend any or all of the permits held by such person under this chapter.
(b) The Treasurer shall give to such person written notice of the suspension or revocation of any of his/her permits. The Treasurer shall not issue a new permit after the revocation of a permit until said person complies with the provision of this chapter. A fee as set by the Common Council shall be imposed for the renewal or issuance of a permit which has been previously suspended or revoked. [Amended 10-18-2006 by Ord. No. 335]
(5) Report due upon sale or conveyance of business. Notwithstanding the accounting period provided for above, if any person liable for any amount of tax under this section sells out his business or stock of goods or quits the business, his successors or assigns shall withhold sufficient of the purchase price to pay such amount until the former owner produces a receipt from the City Treasurer that such tax has been paid for or a certificate stating that no amount is due. If a person subject to the tax imposed by this section fails to withhold such amount of tax from the sale price and such tax remains unpaid, the buyer and seller shall be jointly responsible for the payment of such tax.
(6) Audit of returns. The City Treasurer may, by office audit, or other means if so directed by the Council, determine the tax required to be paid to the City or the refund due to any person under this section. The determination may be made upon the basis of the facts contained in the return being audited or on the basis of any other information within the City Treasurer's possession or knowledge. Whenever the City Treasurer has probable cause to believe that the correct amount of room tax has not been assessed or that the tax return is not correct, the City Treasurer or agents appointed by such Treasurer are authorized to examine and inspect the books, records, memorandum and property of any person in order to verify the tax liability of that person or of another person.
(7) Roomage assessment. If any person fails to file a return as required by this chapter, the City Treasurer shall cause an estimate of the amount of the gross receipts which would have been taxable under this chapter to be computed. On the basis of this estimate, the City Treasurer shall compute and determine the amount required to be paid to the City, adding to the sum thus arrived at a penalty equivalent to 10% thereof.
(8) Penalty provision.
(a) All unpaid taxes under this chapter shall bear interest at the rate of 10% per annum from the due date of the return until paid.
(b) Delinquent tax returns shall be subject to a late filing fee as set by the Common Council. In addition, if no return is filed, or a return is filed over 10 days after notification to make payment, the entire tax finally determined shall be subject to a penalty of 25% of the tax, exclusive of any interest or other penalties. If a person fails to file a return when due or file a false or fraudulent return with the intent in either case to defeat or evade the tax imposed by this chapter, a penalty of 50% shall be added to the tax required to be paid, exclusive of interest and other penalties.5 [Amended 4-6-2005 by Ord. No. 325; 10-18-2006 by Ord. No. 335]
D. Security required. In order to protect the revenue of the City, the City Treasurer may require any person liable for the tax imposed by this section to place with him before or after a permit is issued such security not in excess of $5,000 as the City Treasurer shall determine. If any taxpayer fails or refuses to place security, the City Treasurer may revoke or refuse to issue such permit. If any taxpayer is delinquent in the payment of the taxes imposed by this section, the City Treasurer may, upon 10 days' notice, recover the taxes, interest and penalties from the security placed with the said Treasurer by such taxpayer. No interest shall be paid or allowed by the City to any persons for the deposit of such security. In the event the payment of the tax shall be delinquent in any given period, the taxpayer shall be required to furnish security and the amount of such delinquency for the succeeding two tax periods. Upon failure to provide such security, the permit provided for in Subsection C(3) shall be revoked.
E. Records to be maintained. Every person liable for the tax imposed by this section shall keep or cause to be kept such records, receipts, invoices and other pertinent papers in such form as the City Treasurer and this section shall require. Such records shall be retained and made available for a period of five years from the due date of a filing period.
F. Confidentiality maintained.
(1) All tax returns, schedules, exhibits, writings or audit reports relating to such returns on file with the City Treasurer are deemed to be confidential, except the City Treasurer may divulge their contents to the following and no others:
(a) The person who filed the return.
(b) Officers, agents or employees of the Federal Internal Revenue Service or the State Department of Revenue.
(c) Officers, employees or agents of the City Auditors.
(d) Such other public officials of the City of Bayfield when deemed necessary.
(2) No person having an administrative duty under this section shall make known in any manner the business affairs, operations or information obtained by an investigation of records of any person on whom a tax is imposed by this section or the amount or source of income, profits, losses, expenditures or any particulars thereof, set forth or disclosed in any return, or to permit any return or copy thereof to be seen or examined by any person, except as provided above.
G. Violations and penalties. Any person who is subject to the tax imposed by this section who fails to obtain a permit as required in Subsection C(2) or (3) or who fails or refuses to permit the inspection of his records by the City Treasurer after such inspection has been duly requested by such Treasurer, or who fails to file a return as provided in this section, or who violates any other provision of this section, shall be subject to a forfeiture of not less than $100 nor more than $500. Each day, or portion thereof, that such violation continues is hereby deemed to constitute a separate offense. The total forfeiture imposed shall not exceed 50% of the tax imposed.6