FINANCE

Omaha City Charter art. V

in effect

Omaha City Charter, art. V, § 5.01 Finance Department.

Section 5.01. - Finance Department. The head of the Finance Department shall be the Finance Director, who shall be appointed by the Mayor and be subject to removal by the Mayor. The Finance Director shall have had at least five years of such experience in a responsible public or private financial post as shall qualify the Director for the duties of the office. The following functions shall be assigned to the Finance Department: accounting and internal auditing; budget formulation and execution under the Mayor's supervision; purchasing and stores; collection of miscellaneous revenues and such other treasury management activities as are not assigned to the City Treasurer; equipment pool; real estate buying, selling, exchanging, leasing, and renting; and any centralized secretarial, duplicating, or clerical services.

Omaha City Charter, art. V, § 5.02 Fiscal Year.

Section 5.02. - Fiscal Year. The fiscal and budget year of the city government shall begin on the first day of January and shall end on the last day of December of each year unless the Council by ordinance establishes a different fiscal year.

Omaha City Charter, art. V, § 5.03 Fund Structure.

Section 5.03. - Fund Structure. In this charter the word "fund" shall mean "a sum of money or other resources that is segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations, and that constitutes an independent fiscal and accounting entity." If and as needed, the following types of funds shall be established for the purposes and types of operations with which identified: (1) A single "General Fund" shall be established to account for all revenues and the activities financed by them which are not accounted for in some special fund. (2) "Special Revenue Funds" shall be established to account for taxes and other revenues, except special assessments, set aside for a particular purpose. (3) "Internal Service Funds" shall be established to account for the financing of activities carried on by one department or division for other departments and agencies of the city government and may be established for the control of inventories. (4) "Special Assessment Funds" shall be established to account for special assessments levied to finance improvements or services deemed to benefit the properties against which the assessments are levied. (5) "Capital Project Funds" shall be established to account for the receipt and disbursement of proceeds of bond issues, tax increment financing receipts and other financing services, except for those payable from special assessment, utility, and enterprise funds. (6) "Debt Service Funds" shall be established to account for the accumulation of resources for retiring bonds, including any administrative costs related thereto; such as, publication of notice, trustee, registrar, and paying agent fees. (7) "Fiduciary Funds" shall be established to account for cash or other assets held by the city as trustee, custodian, or agent. (8) "Proprietary Funds" shall be established to account for the financing of services rendered primarily to the general public for compensation where the intent is that the operation shall be self-supporting. (9) "Advance Acquisition Fund." There shall be established a Capital Project Fund to be known as the Advance Acquisition Fund, the purpose of which shall be to facilitate the orderly and timely acquisition of real estate for public purposes. Moneys in the fund may be used to option, purchase, make down payments, and take other actions necessary to acquire real estate for specific public purposes related to the development of the City as proposed in the master plan. No purchase of any real estate or any substantial expenditure in connection therewith shall be made unless reviewed and reported on by the Capital Improvement Priority Committee and approved by the Council. Any real estate purchased or otherwise acquired by the City through the workings of this fund may later be sold or otherwise disposed of by the City if it is found that such real estate is not needed for a public purpose. (10) "Cash Reserve Fund." There shall be established a reserve fund for the purpose of meeting emergencies arising from: (a) The loss or partial loss of a revenue source; or (b) An unanticipated expenditure demand due to a natural disaster, casualty loss or act of God; or (c) Expenditure demand for the satisfaction of judgments and litigation expenses when the Judgment Levy Fund balance is inadequate. (d) Conditions wherein serious loss of life, health or property is threatened or has occurred. The amount of funds to be held in this account, if any, shall not exceed 8% of General Appropriations. Interest earned on any such amount shall be retained in said account and shall be included in the calculation of the fund balance. In the event that the fund has reached the 8% maximum balance, then any interest accruing thereafter, until the balance is decreased by an expenditure, shall be transferred to the General Fund. Notwithstanding section 5.14 of the home rule charter, or any other provision to the contrary, any amount, or portion thereof, held as general fund surplus at the close of any fiscal year may be appropriated for the sole and limited purpose of increasing the balance of this reserve fund; provided, however, that some shall not be used to increase the balance beyond the 8% limitation stated herein. (11) Reserved. (Amended by special election 5-14-74; amended by special election 11-6-84; amended by special election 5-11-93; Ord. No. 36653, § 1, special election of 5-9-05; Ord. No. 40092, § 1, 8-19-14, ref. of 11-4-14)

Omaha City Charter, art. V, § 5.04 Formulation and Submission of Budget.

Section 5.04. - Formulation and Submission of Budget. The procedure and calendar for the formulation and submission of the annual budget shall be as follows: (1) On or before a date to be specified by the Mayor, each city department and agency head shall transmit to the Finance Director estimates for the ensuing fiscal year of revenue and operating expenditure for the department or agency concerned, along with such work program information and supporting data as the Mayor may require. (2) The Mayor with the assistance of the Finance Director shall review all estimates and the capital improvement program prepared pursuant to section 7.07 and shall formulate the proposed budget, making such revisions of estimates as the Mayor deems desirable. (3) Not later than thirty days before the tax levy certification date, the Mayor shall submit to the Council for its consideration the proposed budget. Upon submission the budget shall become a public record and shall be open to inspection. (4) For purposes of this section and all other sections with article V, the term "tax levy certification date" shall mean the date established by statute, upon which the county board of equalization must levy taxes for the year. (Ord. No. 33371, § 1, 9-13-94, ref. of 11-8-94)

Omaha City Charter, art. V, § 5.05 Scope and Content of the Budget.

Section 5.05. - Scope and Content of the Budget. The annual budget shall be a complete financial plan for the ensuing budget year and shall consist of an operating budget and a capital budget. The capital budget shall provide for acquisition of real estate, physical improvements, equipment and furniture required in connection with physical improvement projects, and equipment with a probable useful life of fifteen or more years; and the operating budget shall provide for all other classes of expenditure. The budget submitted by the Mayor to the Council shall contain at least the following: (1) A budget message in which the Mayor shall discuss the city's financial condition and prospects, explain both in terms of money and work programs the important features of the operating budget, identify major projects in the capital budget, and outline the financial policies the Mayor proposes for the ensuing budget year. (2) Appropriate statements showing for each fund the estimated transactions and balances for the ensuing budget year and comparative data for the current and immediately past budget years. (3) Schedules of all estimated revenues itemized by sources for the ensuing budget year and comparative data for the current and immediately past budget years. Revenue estimates for the general and special revenue funds shall include only those revenues expected to be received in cash during the budget year concerned. (4) Operating budget schedules showing by activity or program the proposed operating expenditures for the ensuing budget year, and in a column entitled "Appropriations," the lump sum recommended for appropriation, which lump sums need not be itemized further than by departments, divisions, and major activities and programs. Comparative expenditure data for the current and immediately past budget years and information on work programs and volumes shall also be presented. (5) Capital budget schedules showing the total amount proposed for expenditure during the ensuing budget year and a complete analysis of the sources of funds by projects showing balances available and amounts to be appropriated, borrowed, or derived from other sources. (Ord. No. 40092, § 1, 8-19-14, ref. of 11-4-14)

Omaha City Charter, art. V, § 5.06 Consideration and Adoption of Budget by Council.

Section 5.06. - Consideration and Adoption of Budget by Council. At the meeting of the Council at which the Mayor submits the budget, the Council shall determine the time and place at which it will hold a public hearing on the budget. The date for public hearing shall be scheduled for not later than ten days prior to the tax levy certification date, and the time and place of the hearing shall be published in each of the daily newspapers of general circulation in the city not less than five days before the hearing. After the hearing the Council may revise the expenditure side of the budget by increasing, decreasing, inserting, or deleting appropriation items, except that it shall not reduce appropriations for debt service. The Council may revise revenue estimates if such revision is concurred in by five of its members. Not later than the day prior to the tax levy certification date, the Council shall by majority vote adopt a budget by resolution and thereby authorize appropriations for the ensuing budget year. The budget as adopted shall be reproduced, and copies shall be made available to interested citizens and other governmental jurisdictions.

Omaha City Charter, art. V, § 5.07 Tax Levy.

Section 5.07. - Tax Levy. The Council, on the basis of the budget as finally adopted, shall certify by adopting an appropriate resolution a single City of Omaha tax levy for the ensuing fiscal year, which single tax levy shall be sufficient so that total year end fund balances are greater than or equal to zero. The single City of Omaha tax levy certified in any year shall not exceed $.6125 per $100 of actual taxable value plus whatever tax levy is necessary to provide for principal and interest payments on the indebtedness of the city, and for the administrative expenses incurred in issuing and maintaining bonds, and for the satisfaction of judgments and litigation expenses in connection therewith. (Adopted by special election 5-15-84; Ord. No. 40092, § 1, 8-19-14, ref. of 11-4-14)

Omaha City Charter, art. V, § 5.08 Prohibition of Special Levies and Segregated Revenues.

Section 5.08. - Prohibition of Special Levies and Segregated Revenues. The Council shall not at any time establish a special levy or segregate the proceeds of any revenue source for any purpose, program, or project, except that revenue sources may be segregated and pledged in conjunction with the issuance and retirement of revenue bonds and revenue from the sewer use fee may be segregated for sewerage system and sewage disposal plant purposes. The funds and fund structure of the city, as established in section 5.03, shall constitute authorized segregations of city revenues, but it is the intent of this section that no new special revenue funds shall be established, except where necessary to allow the city to accept federal, state, and other grants-in-aid.

Omaha City Charter, art. V, § 5.09 Allotment System.

Section 5.09. - Allotment System. Prior to the beginning of each fiscal year, the Mayor shall require each department and agency head to submit to the Mayor or the Finance Director requests for allotments from each appropriation approved in the budget and a work program for each activity appropriated for. Requests for allotments shall be on a monthly or quarterly basis as the Mayor may require and shall cover the entire fiscal year. The Mayor, after reviewing the requests for allotments and associated work programs, shall authorize allotments, and may authorize amounts greater or less than those requested but shall not authorize aggregate allotments for any division of any department in excess of the total amount appropriated for that division. The Mayor shall file the approved allotment schedule with the Finance Director, who shall not allow any commitments or expenditures to be made except on the basis of approved allotments. Allotments may be revised during the budget year by the Mayor. If, at any time during the budget year, the Mayor determines that a fund's available income for the year will be less than the total appropriations authorized, the Mayor shall revise allotments so as to forestall the making of expenditures in excess of income.

Omaha City Charter, art. V, § 5.10 Transfer of Appropriations.

Section 5.10. - Transfer of Appropriations. The Mayor may at any time transfer an unencumbered appropriation balance or portion thereof between appropriations of the same division. Transfers between divisions in the same department may be authorized by resolution of the Council, and transfers between departments may be authorized by ordinance. In the event of an emergency, ordinances authorizing transfers between departments may be passed as emergency measures as provided in section 2.13.

Omaha City Charter, art. V, § 5.11 Emergency Appropriations.

Section 5.11. - Emergency Appropriations. To meet a public emergency threatening serious loss of life, health, or property, the Council may by ordinance make emergency appropriations or transfers. If there are no unappropriated moneys available, the Council may by ordinance authorize the issuance of emergency notes. Such notes may be renewed from time to time, but an appropriation sufficient to pay off such notes shall be included in the first budget adopted after the issuance of the emergency notes, except in cases where an alternative means for paying off the notes is found in advance of the date on which such budget is adopted. The total amount appropriated for emergencies in any fiscal year shall not exceed 5 per cent of the total appropriations made in the operating budget for that year.

Omaha City Charter, art. V, § 5.12 Lapsing of Operating Appropriations.

Section 5.12. - Lapsing of Operating Appropriations. Unencumbered balances of operating appropriations shall lapse at the end of the budget year for which authorized.

Omaha City Charter, art. V, § 5.13 Accounting.

Section 5.13. - Accounting. Provisions and requirements pertaining to accounting systems and practices shall be as follows: (1) The Finance Director shall prescribe an accounting system which shall be bindingupon all departments and agencies of the city. Such system shall provide for double entry accounts. The Finance Director may prohibit the keeping of any departmental accounts that the Director deems unnecessary. (2) The revenue ledgers shall reflect all accounts known to be due the city, including special assessments; actual cash receipts; and non-cash credits against revenues receivable. (3) Payrolls shall be charged against the appropriate appropriation and allotment accounts prior to payment. All other obligations shall be encumbered against the appropriate appropriation and allotment accounts prior to the time the obligation is incurred. (4) At the close of each fiscal year, a reserve for encumbrances shall be established in the amount and for the liquidation of the unpaid portions of contracts and other evidences of valid obligations which the city shall have incurred during that year. (5) A system of inventory accounts shall be designed and installed for the purpose of controlling the city's holdings of real and personal property, including materials and supplies.

Omaha City Charter, art. V, § 5.14 Year-End General Fund Balance; Definition and Application.

Section 5.14. - Year-End General Fund Balance; Definition and Application. The general fund balance, including any special revenue funds, at the close of any fiscal year shall constitute the year-end general balance, and shall include: (1) Any unappropriated year-end general fund balance from prior years. (2) The amount by which the cash income for the current year exceeds the sum of expenditures and unliquidated encumbrances applicable to the year. (3) Balances of reserves for encumbrances from prior years for which all encumbrances have been liquidated. The year-end fund balance as of the close of any particular fiscal year shall be applied as general fund revenue in the budget for the fiscal year two years subsequent to that fiscal year. (Adopted by special election 11-6-84)

Omaha City Charter, art. V, § 5.15 Centralized Purchasing.

Section 5.15. - Centralized Purchasing. Acting in accordance with provisions of this charter and rules and regulations established by ordinance, persons, who may be in the classified service of the city or who may be employees of another governmental entity with whom the city has an agreement for merger of purchasing functions, shall purchase and contract for all materials, parts, supplies, equipment, and contractual services required by any department or agency of the city government. The terms Purchasing Agent and Purchasing Division when used in this charter and in ordinances enacted by the council shall refer to the person or persons performing the purchasing and stores functions specified herein. (Ord. No. 37087, § 1, special election of 5-9-06)

Omaha City Charter, art. V, § 5.16 Purchasing Procedure.

Section 5.16. - Purchasing Procedure. The Purchasing Division, in making any purchase in the amount of $50,000.00 or more, shall advertise for formal sealed competitive bids to be opened in public and to be the basis for awards. Purchases in amounts less than this amount may be made without calling for formal sealed bids, but at least three informal bids shall be secured, if practicable. All bids shall be recorded. When a situation exists requiring an immediate purchase, the Mayor may give written approval, with advice to the Council, to the Purchasing Division to make the necessary purchases. When the Purchasing Division has advertised for formal sealed competitive bids to be opened in public and no bids are received, the Council may, by resolution, authorize the Purchasing Division to make purchases in amounts or quantities and for periods specified in the resolution. Competitive bidding shall not be required in purchasing unique or non-competitive articles, including library books and publications, or in contracting for professional services. The Purchasing Division may upon its own authority award orders for amounts of less than $50,000.00 each, except any award to be made to one other than the lowest bidder shall be approved by Council resolution, but no award for $50,000.00 or more shall be made until approved by resolution of Council. All awards shall be made to the bidder submitting the lowest and best bid; provided, however, a resident bidder shall be allowed a preference over a nonresident bidder from a state or city which gives or requires a preference to bidders from that state or city. The preference shall be equal to the preference given or required by the state or city of the nonresident bidder. Resident bidder as used in this section shall mean any person, partnership, association, or foreign or domestic corporation who has a bona fide establishment for doing business within the corporate limits of this city for the length of time established by the state or city of the nonresident bidder necessary to receive the benefit of that state's or city's preference law on the date when any advertisement for formal sealed competitive bids was first advertised. Any contract entered into without compliance with the resident bidder preference provisions of this section shall be null and void. (Adopted by special election 5-14-74; amended by special election 11-6-84; Ord. No. 33171, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 33172, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 33353, § 1, 8-23-94, ref. of 11-8-94; Ord. No. 36620, § 1, special election of 4-5-05; Ord. No. 43931, § 1, 8-6-24)

Omaha City Charter, art. V, § 5.17 Contracts.

Section 5.17. - Contracts. Except as provided in Section 5.16, competitive bids shall be secured before any purchase is made or any contract awarded for construction, alteration, repairs, maintenance, or services, and contracts in all cases shall be awarded to the bidder submitting the lowest and best bid. All contracts in excess of $50,000 shall be approved by resolution of the Council. All contracts involving the payment of money from appropriations of more than one fiscal year of the City Government shall be approved by Ordinance. No contract involving the payment of money from appropriations of more than one fiscal year of the City Government shall be made for a period of more than ten years with an option to renew or renegotiate for subsequent ten-year periods subject to the approval of the Council in office at the time said option or renegotiation is put into effect, nor shall any such contract, option, or renegotiation be valid unless made or approved by Ordinance. Leases in which the City is to be either the lessee or lessor may be consummated where the power to lease exists and may be for such periods as the Council may determine. The Council may by Ordinance enter into lease-purchase agreements. The Council may by Ordinance require that successful bidders provide performance bonds, labor and material bonds, or other appropriate types of bonds, but it shall not provide in connection with any contract that a percentage of the contract amount be withheld for a period beyond the date on which the City finally accepts materials, equipment, work, or services as provided by the contractor. All contracts of the City shall contain a provision that contractors shall not, in the performance of the contract, discriminate or permit discrimination in violation of Federal or State laws or local ordinances because of race, color, sex, age, political or religious opinions, affiliations, or national origin. The Council may by Ordinance authorize participation by the City in joint procurement of materials, equipment, work, or services with other public corporations within the state. The Council may by Ordinance establish contract requirements and procedures that extend this section but do not conflict with it. (Adopted by special election 5-14-74; Ord. No. 33172, § 2, 2-8-94, ref. of 5-10-94; Ord. No. 43722, § 1, 2-27-24)

Omaha City Charter, art. V, § 5.18 Insurance and Surety Bonds.

Section 5.18. - Insurance and Surety Bonds. Insurance may be procured for the protection of the property of the city in such amounts and under such conditions as the Council shall determine. The city may, without waiver of its governmental immunity, procure liability insurance covering such risks and in such amounts as the Council shall determine. The Council, except as otherwise provided in this charter, shall determine which officials, officers, and employees shall be required to furnish surety bonds and shall determine the amount of each individual or blanket bond. All such bonds shall be in favor of the city and the premiums thereon shall be borne by the city. The Finance Department shall procure all insurance and surety bonds in accordance with the ordinance authorizing the same, which insurance and surety bonds shall be procured from companies licensed by the state to insure such risks of the types and amounts involved.

Omaha City Charter, art. V, § 5.19 Investment of City Funds.

Section 5.19. - Investment of City Funds. Idle city moneys available for investment may be invested in any investment authorized under state law for the investment of state funds. This provision shall not apply to the investment of the assets and reserves of any city pension fund. (Ord. No. 33173, § 1, 2-8-94, ref. of 5-10-94)

Omaha City Charter, art. V, § 5.20 Disposal of Real Property.

Section 5.20. - Disposal of Real Property. The Planning Department shall at least every two years review the real property holdings of the city and make recommendations for the disposal of such property as is no longer needed for public purposes. With the approval of the Finance Department, the Planning Department shall recommend to the Council that such unneeded real property be disposed of, and the Council may by ordinance provide that such disposition shall be accomplished by sale or exchange and may establish, on the basis of the Planning Department's recommendation, any restrictions as to the future use of such property. The Finance Director shall cause the property to be sold or exchanged in accordance with rules and regulations which the Council shall establish by ordinance. The net proceeds from any such sale or exchange shall be placed in the Advance Acquisition Fund. (Ord. No. 33174, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 36655, § 1, special election of 5-9-05)

Omaha City Charter, art. V, § 5.21 Disposal of Personal Property.

Section 5.21. - Disposal of Personal Property. All departments and agencies having personal property that is not useful to them shall at least annually furnish a list of such items to the Finance Department, which shall examine such property and determine whether it is useful for any other city purpose. If found to be usable, such property shall be inventoried for subsequent issue upon requisition. If such property is found to be unusable for any city purposes, the Finance Director shall cause the property to be disposed of in a lawful manner. If found to be unusable for city purposes, but not obsolete nor damaged beyond any reasonable use or repair, the Finance Director shall cause the property to be sold at public auction or on the basis of bids. Proceeds from such sales shall become general fund revenue. Notwithstanding the foregoing, if any such property is found to be unusable for city purposes, upon recommendation of the Finance Director, the City Council may, by resolution, authorize same to be disposed of in any manner, including donation, to any organization to be used for the public good. Nothing in this section shall be construed to prevent the trading-in of usable or unusable property on new items being purchased. As long as DOT.Comm or its successors is the primary information technology provider to the city, DOT.Comm will determine the disposition of usable, unusable, obsolete or damaged beyond any reasonable use or repair, for personal property related to information technology. (Ord. No. 33175, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 36656, § 1, special election of 5-9-05; Ord. No. 43719, § 1, 2-27-24)

Omaha City Charter, art. V, § 5.22 Reimbursement of Expenses.

Section 5.22. - Reimbursement of Expenses. Within six months after taking office, the first Mayor shall recommend to the Council for its enactment as an ordinance a definition of official city business and rules and regulations providing for and governing the reimbursement of expenses incurred by persons engaged in the transaction thereof.

Omaha City Charter, art. V, § 5.23 Treasury Management.

Section 5.23. - Treasury Management. A City Treasurer shall be a classified position appointed through the competitive testing process. The City Treasurer shall collect all real, personal, and special taxes or assessments due the city either using city employees or by contract with the Douglas County Treasurer; act as official custodian for all city moneys; disburse funds on the basis of valid written authorizations; and, in the administration of city functions, comply with the provisions of this charter, ordinances adopted hereunder, other applicable laws, and the accounting rules of the city. The City Treasurer shall receive such compensation from the city as may be provided by law or by appropriation in the city budget. A surety bond for the City Treasurer shall be procured in accordance with section 5.18. The Finance Director shall be responsible for the collection of all moneys due the city and the prompt deposit of such moneys. To effect such collections on an orderly, efficient, and safe basis, the finance director is authorized to appoint collection agents and to prescribe systems for accountability of moneys. (Ord. No. 38655, § 1, 2-9-10, ref. of 5-11-10; Ord. No. 43719, § 1, 2-27-24)

Omaha City Charter, art. V, § 5.24 Statements of Accounts Receivable.

Section 5.24. - Statements of Accounts Receivable. With respect to statements of accounts and payment notices relating to moneys due the city, the Finance Director shall be held responsible for accomplishing the following tasks or ensuring that they are effectively accomplished: (1) Preparing and mailing to the debtor an appropriate statement of indebtedness to the city at the time that such indebtedness is first entered into the accounts receivable of the city. (2) Preparing notices concerning the second and successive installments due on special assessments and mailing such notices not less than thirty nor more than sixty days prior to the due date. (3) Preparing and mailing within ninety days after the close of each fiscal year appropriate statements concerning delinquent taxes and all other delinquent items due the city, except for delinquent special assessments. (4) Preparing and mailing statements concerning delinquent special assessments within sixty days after the date of delinquency. All statements and notices shall be solely for the convenience of the person owing money to the city, and failure of the city to send such statements and notices, or of the debtor to receive such documents, shall not be available as a defense against payment of any amounts due or any interest charges and penalties in connection therewith.

Omaha City Charter, art. V, § 5.25 Special Assessment Financing.

Section 5.25. - Special Assessment Financing. There is hereby established a Special Assessment Fund to provide for the temporary financing of all work done by the city and ultimately to be paid for from special assessments against property. All present and future assets of the city derived from or appertaining to special taxes or assessments for paving, sewers, sidewalks, or other purposes and all interest in connection therewith received or to be received shall be transferred to this fund. The Council may augment this fund by general fund appropriation. Should the cash on hand in the fund at any time prove inadequate for current requirements, the Council may augment the cash balance by negotiating general obligation notes, which are limited as to amount and term by the provisions of sections 5.27 and 5.29. Notwithstanding any other provision of this charter, the city shall have the power in accordance with State law, to issue and sell Special Assessment Bonds without a vote of the people, the principal and interest of which shall be paid from the Special Assessment Fund. (Adopted by primary city election 5-11-82)

Omaha City Charter, art. V, § 5.26 Power to Incur Indebtedness.

Section 5.26. - Power to Incur Indebtedness. For purposes of this charter, the term "notes" shall mean written evidences of indebtedness maturing not later than one year after the date of their issuance, and the term "bonds" shall mean written evidences of indebtedness maturing more than one year after the date of their issuance. The Council shall have the power to issue general obligations notes to temporarily provide cash from which to pay operating expenses authorized in the budget or from which to pay for expenditures ultimately to be financed from proceeds of bonds previously authorized and to be issued under this charter. General obligation bonds may be issued only for the purposes of acquiring real property, constructing capital improvements, purchasing equipment with a probable useful life of fifteen or more years, or refunding outstanding bonded indebtedness. Refunding bonds may be issued only if (1) the total net interest cost to maturity of the refunding bonds plus the aggregate principal amount of the refunding bonds is less than the total remaining net interest cost to maturity of the bonds to be refunded plus the outstanding aggregate principal amount of the bonds to be refunded, or (2) the issuance of the refunding bonds is for the purpose of minimizing the cost to the city of a prospective or actual change in the federally tax-exempt status of the interest on all or a portion of the bonds to be refunded. Subject to this limitation, the principal amount of the refunding bonds may be more than, less than, or the same as the principal amount of the bonds to be refunded. (Ord. No. 33176, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 36625, § 1, special election of 4-5-05)

Omaha City Charter, art. V, § 5.27 Debt Limits.

Section 5.27. - Debt Limits. Debt limits relating to the various types of debt which the city is authorized to incur shall be as follows: (1) The total amount of general obligation indebtedness outstanding at any time, which shall include bonds issued but shall not include bonds authorized until they are issued, shall not exceed 3.5 per cent of the actual value of taxable real and personal property in the city. For the purpose of computing the city's general obligation debt margin, the full amount of any sinking fund maintained for principal or interest payments on general obligation bonded debt shall be deducted from the outstanding indebtedness. Outstanding general obligation notes issued pursuant to this charter shall not be chargeable against the debt limit, nor shall the outstanding amount of any lease-purchase agreement executed by the city as vendee or as lessee be chargeable against the debt limit. (2) Notes issued in anticipation of the receipt of revenue of the general fund or any special revenue fund shall not exceed 20 per cent of the revenues officially estimated to be collected for that fund during the remainder of the fiscal year concerned. (3) Notes issued in anticipation of the sale of bonds previously authorized shall not exceed 50 per cent of the principal amount of such bonds. (4) Notes issued to provide cash for the Special Assessment Fund shall not exceed ninety per cent of the sum of: (a) Assessments receivable, and (b) The contract amounts for work in progress which is ultimately to be assessed against property. (Adopted by special election 5-10-66; amended by special election 5-15-84)

Omaha City Charter, art. V, § 5.28 Bond Issues Upon Which Referendum Is Required.

Section 5.28. - Bond Issues Upon Which Referendum Is Required. No general obligation bonds of the city except refunding bonds shall be issued until authorized by a majority of the electors voting on the question as to their issuance. Each bond authorization question submitted to the electors shall relate to not more than one issue and shall specify the purpose for which moneys are to be borrowed and the maximum amount of bonds to be issued for that purpose. This provision shall not be construed as preventing the sale and issuance of single bond issues for multiple purposes, each of which purposes has been authorized by a separate vote of the electors. Should the Council determine that any portion of an authorized bond issue is not required for the accomplishment of the objectives in connection therewith, it may cancel such portion as is unneeded and unissued. Cancelled portions of any general obligation bond issue shall not be charged against the debt margin. (Adopted by special election 5-10-66)

Omaha City Charter, art. V, § 5.29 Terms of Debt Instruments.

Section 5.29. - Terms of Debt Instruments. Limitations on the terms of the various types of debt instruments which the city is authorized to issue shall be as follows: (1) General obligation bonds of the city shall mature as the Council may provide. The final maturity shall be for a period of years not exceeding the estimated life of the property or improvement to be acquired with the proceeds thereof, provided that no general obligation bonds of any type shall mature later than December 31 of the calendar year in which occurs the twentieth anniversary of the date of issue thereof. (2) Notes issued in anticipation of the receipt of revenue of the general fund or any special revenue fund shall mature within the same fiscal year in which issued. (3) Notes issued in anticipation of the sale of bonds previously authorized shall mature within one year. (4) Notes issued to provide cash for the Special Assessment Fund shall mature within one year. (5) Revenue bonds shall be issued for such terms as the ordinance authorizing them shall prescribe but shall not mature later than fifty years after the date of issue thereof. (Ord. No. 33177, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 36625, § 1, special election of 4-5-05)

Omaha City Charter, art. V, § 5.30 Bonds; General Provisions.

Section 5.30. - Bonds; General Provisions. General provisions concerning the form, issuance, interest rates, and other matters relating to bonds shall be as follows: (1) Bonds of the city shall be prepared under the direction of the Council, shall be signed by the Mayor, and countersigned by the City Clerk. Bonds shall be sold and disposed of by and under the direction of the Council and shall be delivered by the Finance Director, who shall promptly deliver the proceeds therefrom to the City Treasurer in all cases except where an exchange of bonds is directed. The purpose or purposes of each bond issue shall be stated on the bond, and the proceeds received from the sale thereof shall be used for no other purpose or purposes. (2) General obligation and Revenue bonds of the city shall be sold or exchanged for such prices as the Council shall provide. Interest on all bonds shall be payable as the Council may provide. (3) Bonds shall be payable at the office or place provided by general law or at such other place or places of payment as may be provided by the ordinance authorizing the issuance of the bonds. (4) The Council may provide for the registration of bonds by the Finance Director. (5) Bonds may be executed with the facsimile signature of the Mayor, and City Clerk, except that each bond shall be authenticated as to its validity in the manner designated by Council. The use of a printed facsimile of the city seal on bonds is also authorized. (6) Bonds of the city shall contain such provisions for call in advance of maturity as the Council may provide or as may be required by the general laws of the State. Call premiums, if any, shall not be in excess of 4 per cent. (7) Interim bonds or notes may be issued pending the issuance of permanent bonds and shall have the same qualities of negotiability as outstanding permanent bonds of the city. Owners thereof shall have the same rights as owners of permanent bonds. (Amended by special election 5-15-84; Ord. No. 33178, § 1, 2-8-94, ref. of 5-10-94; Ord. No. 36625, § 1, special election of 4-5-05; Ord. No. 40093, § 1, 8-19-14, ref. of 11-4-14)

Omaha City Charter, art. V, § 5.31 Revenue Bonds.

Section 5.31. - Revenue Bonds. Provisions concerning revenue bonds shall be as follows: (1) The city may issue revenue bonds for the purpose of acquiring, extending, or improving any revenue-producing facility for public or private use within or without the city that it may legally acquire, improve, or operate under this charter and the Constitution or laws of the State of Nebraska. (2) Revenue bonds shall be of such form, denomination, and other features as the Council shall determine. (3) Any ordinance authorizing revenue bonds may contain such covenants and provisions to protect and safeguard the security of the holders of such bonds as shall be deemed necessary to assure the prompt payment of the principal thereof and the interest thereon. Such covenants and provisions may establish or provide for, but shall not be limited to, the creation of trust funds and the appointment of trustees for the purpose of receiving and disbursing bond proceeds on the collection and disbursement of revenues from the facility for which the bonds were issued; the limitations or conditions upon the issuance of additional bonds payable from the revenues of the facility for which the original bonds were issued; the operation, maintenance, management, accounting, and auditing procedures to be followed in the operation of the facility; and the conditions under which any trustee or bondholders committee shall be entitled to the appointment of a receiver to take possession of the facility, manage it, and receive and apply revenues from the facility. (4) The provisions of this section and any ordinances authorizing the issuance of revenue bonds pursuant to this section shall constitute a contract of the city with every holder of said bonds and shall be enforceable by any bondholder by mandamus or other appropriate action at law or in equity in any court of competent jurisdiction. (5) Bonds issued pursuant to this section or notes issued pending permanent revenue bond financing shall not be a debt of the city within the meaning of any constitutional, statutory, or charter limitation upon the creation of general obligation indebtedness of the city, and the city shall not be liable for the payment thereof out of any funds of the city other than the revenues pledged to the payment thereof, and all bonds or notes issued pursuant to this section shall contain a recital to that effect. The holders of all revenue bonds or notes shall have a lien on the revenues of the project with respect to which they are issued subject to conditions provided in the ordinance authorizing the issuance of such bonds or notes. (6) Whenever the Council shall have issued any revenue bonds or notes, it shall establish, maintain, revise, and collect charges at least sufficient to provide for all costs associated with the ownership, operation, maintenance, renewal, and replacement of the facility for which the bonds were issued and the payment of the principal and interest on all indebtedness incurred with respect thereto.

Source: City of Omaha, Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/ne/omaha/codes/code_of_ordinances?nodeId=PTICH_ARTVFIFetched: 10/28/2026