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after the approval on "second reading", and does not require a <br />further thirty day waiting period as required by Section 417 <br />(Section 607). In effect, Section 607 creates an exception <br />to Section 417 in the matter of the effective date of an appro- <br />priation ordinance. <br />If a new appropriation ordinance is not enacted <br />according to the above procedures by July 1, all departments <br />of the city are authorized to continue to operate and to spend <br />at the level expended for the last month (June) of the imme- <br />diately preceeding fiscal year (Section 607). Inasmuch as the <br />budget, whenever adopted, covers the entire fiscal year from <br />July 1 through June 30, when it is finally adopted it may be <br />applied retroactively to July 1. It is advisable, however, <br />for the adopting ordinance to specify this retroactive opera- <br />tion. <br />QUESTION 2: Under appropriate circumstances, may <br />an appropriation ordinance be adopted <br />on the date of its introduction, as <br />an emergency measure? <br />ANSWER: Yes. <br />ANALYSIS: <br />Section 415 permits introduction and adoption of <br />any ordinance on "first reading" if five or more councilmen <br />vote affirmatively and if the Council declares that an emer- <br />gency exists requiring such adoption to preserve public peace, <br />health or safety. The appropriation ordinance drafted by the <br />city manager must specify the reasons for this urgency proce- <br />dure. <br />Inasmuch as Section 607 allows the City to operate <br />at the spending levels of the last month of the preceeding <br />year, the mere fact that a new budget has not been adopted by <br />July 1 does not constitute an emergency. However, if the <br />Council finds that spending at the levels authorized in the <br />new budget is essential to preserve public peace, health and <br />safety and that continued operation under June expenditure <br />levels is not adequate to meet these goals, an emergency <br />situation may be established. <br />We are also of the opinion that the failure to <br />adopt a new budget under normal ordinance procedures prior to <br />July 31 does not, by itself, constitute an emergency since <br />Section 607 permits continued June-level spending f.or "each <br />calendar month" "[b]etween the first (lst) day of_ July and <br />any subsequent date on which the budget is adopted." However, <br />the preceeding comments concerning the substantiation of an <br />90 <br />