City Charter




                        Section 1.01.  NAME AND BOUNDARIES.  The City of Tracy, in the County of Lyon, and the State of Minnesota, shall, upon the effect of this Charter, continue to be a Municipal Corporation, under the name and style of the City of Tracy, within the corporate limits as now established or as hereafter established in the manner provided by law.


                        Section 1.02.  POWERS OF THE CITY.  The City shall have all powers which it may now or which hereafter would be possible for a Municipal Corporation in this state to exercise, in harmony with the constitution of this state and the United States.  It is the intention of this Charter that every power which the people of the City of Tracy might lawfully confer upon themselves, as a Municipal Corporation, by specific enumeration in this Charter shall be deemed to have been so conferred by the provisions of this section.  This Charter shall be construed liberally in favor of the City and the specific mention of particular powers in the Charter shall not be construed as limiting in any way the generality of the power herein sought to be conferred.


                                    Section 1.03.  CHARTER A PUBLIC ACT.  This Charter shall be a public act and need not be pleaded or proved in any case.  It shall take effect thirty (30) days from and after its adoption as provided by the constitution and laws of the State of Minnesota.


                                    Section 1.04.  SUCCESSION TO RIGHTS AND OBLIGATIONS.  The City shall succeed to all the property, rights and privileges and shall be subject to all the legal obligations of the City under the former Charter.


                        Section 1.05.  PRESENT OFFICERS.  The present officers of the City shall continue in their respective offices and function until the first Council meeting in January following the first municipal election held after the adoption of this Charter.


                        Section 1.06.  STATUTES NOT AFFECTED BY CHARTER.  All general laws and statutes of the state applicable to all cities operating under home rule Charters, or applicable to cities of the same class as the City of Tracy operating under home rule Charters, and not inconsistent with the provisions of this Charter shall apply to the City of Tracy and shall be construed as supplementary to the provisions of this Charter.


            Section 1.07.  EXISTING ORDINANCES CONTINUED.  All ordinances and regulations of the City in force when this Charter takes effect, and not inconsistent with the provisions thereof, are hereby continued in full force and effect until amended or repealed.


                        Section 1.08.  ORDINANCES TO MAKE CHARTER EFFECTIVE.  The Council shall by ordinance make such regulations as may be necessary to carry out and make effective the provisions of this Charter.


                        Section 1.09.  CHARTER COMMISSION.  A Charter Commission as authorized by Minnesota Statutes, Section 410.05, Subdivision 1, is hereby established.  The size of the Charter Commission shall be fixed at seven members.  The Charter Commission shall comply with and have the power and duties as authorized by Minnesota Statutes Section 410, as amended.







                        Section 2.01.  FORM OF GOVERNMENT.  The form of government established by this Charter is the Mayor-Council plan.  The City Council shall exercise the legislative power of the City, determine all matters of policy, and shall be subject to initiative, referendum, and recall powers of the people, for the proper administration of all affairs relating to the City.  It shall have complete control over the City Administration, which it shall exercise either directly through the Mayor or through its City Clerk, City Administrator, appointed officers and heads of departments, subject to provisions of this Charter and any regulations or ordinances consistent herewith.


                        Section 2.02.  BOARDS AND COMMISSIONS.  The City Council in addition to the boards and Commissions hereinafter set out may establish advisory boards and Commissions as it shall deem necessary.   The Charter Commission shall meet at a minimum of two times in a calendar year.


                        Section 2.03.  CITY COUNCIL COMPOSITION AND ELECTION

Effective January 1, 2021 the City Council shall be composed of a Mayor and six (6) Councilpersons who as qualified electors shall be elected at large.  In the event of a change to the composition of the City Council, either by amendment or other lawful means, the City Council shall by resolution determine the procedure on how to implement any such changes to the council composition.   No Mayor or Councilperson shall serve for more than 14 consecutive elected or appointed years.  A one calendar year hiatus shall be required after serving 14 years.  The Mayor and each Councilperson shall serve a term of four (4) years and until his/her successor is elected and qualifies.   **



            Section 2.04.  APPOINTIVE OFFICERS.  At the first regular meeting in January, the Mayor, with City Council approval, shall appoint the following officers, who shall hold office for a term of one (1) year, and until his/her successor is appointed and has qualified, or is removed: the City Clerk; the City Attorney; and any other officers that are deemed necessary.


                        Section 2.05.  INCOMPATIBLE OFFICERS.  No member of the City Council shall hold any municipal office of employment under the City, except as authorized by State Statute.  Until one (1) year after the expiration of his/her term as Mayor or Councilperson no former member shall be appointed to any paid appointive office or employment by the City which office or employment was created or the emolument of which was increased during his/her term as Mayor or Councilperson.


                        Section 2.06.  VACANCIES IN THE CITY COUNCIL.  A vacancy in the office of Mayor or council member shall be deemed to exist in the case of any person elected thereto being convicted of a felony, whether before or after his/her qualification, or in the case, without good cause, upon the happening of any of the following: 1) a failure of the person to qualify on or before the date of the second regular meeting of the newly elected City Council; 2) a person absenting themselves from the City for more than three (3) months; 3) the failure of the person to perform any of the duties of their office for a period of three (3) months; 4) the occurrence of any other reason or circumstance, which, by law, causes a vacancy to exist.  A vacancy shall be filled in a timely manner by the City Council appointing an eligible person to fill the vacancy, after advertisement for applicants made in the official publication of the City, for a minimum of once a week for two consecutive weeks.  If the vacancy occurs before the first day to file Affidavits of Candidacy for the next regular city election and more than two (2) years remain in the unexpired term, a special election shall be held at the time of the next regular city general election to fill the unexpired portion of the term, and the appointed person shall serve until the qualification of the successor elected at such election.  If the vacancy occurs on or after the first day to fill Affidavits of Candidacy for the next regular city election or when less than two (2) years remain in the unexpired term, no special election need be held and the appointed person shall serve until the election and qualification of a successor at and after the next general election.


                        Section 2.07.  MAYOR.  The Mayor shall preside at meetings of the City Council and shall have a vote as a member.  The Council shall choose from its members a Mayor pro tem who shall hold office at the pleasure of the Council.  He/she shall preside at meetings of the City Council in the Mayor's absence and as Mayor in case of the Mayor's disability or absence from the City.  The Mayor shall be recognized as head of the City government for all ceremonial purposes, by the courts for the purpose of servicing civil process, and by the governor for purposes of martial law.


                        Section 2.08.  CITY ADMINISTRATOR.  The City Council may, by ordinance, provide for a City Administrator.  The City Administrator shall have such duties and powers as the City Council may, from time to time, establish and provide by ordinances duly adopted.  At the first regular meeting in January, the City Administrator shall appoint, with City Council approval, a Deputy City Clerk and a Deputy City Administrator.  The City Administrator may appoint a separate person for each of the roles of Deputy City Clerk and Deputy City Administrator.  During the absence or disability of the City Administrator, the Deputy City Administrator shall have all the powers, rights and privileges, and perform all the duties imposed on or granted to the City Administrator.


                        Section 2.09.  ADMINISTRATIVE ORGANIZATION.  The City Council may, by ordinance, establish City departments, officers, and agencies and prescribe their functions.  No power or duty conferred by this Charter upon a particular office or agency shall be transferred to any other except special provisions providing for specific powers or duties shall prevail over general provisions providing for general powers or duties.


                        Section 2.10.  CITY CLERK.  The City Clerk shall be the secretary of the City Council.  He/she shall have the care and custody of the corporate seal of said City and of all papers, instruments, files and records of the City.  He/she shall prepare and sign all orders and checks and keep such records and accounts as he/she shall be required to keep by this Charter or by the City Council.  He/she shall keep in permanent form minutes of all City Council meetings.  He/she shall have all powers, rights, and privileges and perform all the duties imposed or granted by the City Council, or by Statutes of the State of Minnesota so far as applicable and except as herein otherwise provided.  All fees paid to the City Clerk shall be turned over by him/her to a depository designated by the City Council.  During the absence or disability of the City Clerk, the Deputy City Clerk shall have all the powers, rights and privileges, and perform all the duties imposed on or granted to the City Clerk.


                        Section 2.11.  SALARIES.  The Mayor and Councilpersons shall receive such compensation as is fixed by the City Council in accordance with law.  All subordinate officers and employees of the City shall receive such salaries or wages as may be fixed by the Council.


                        Section 2.12.  INVESTIGATION OF CITY AFFAIRS.  The City Council and any officer or officers formally authorized by them, shall have the power to make investigations into the City's affairs, to subpoena witnesses, administer oaths, and compel the production of books and papers.  The City Council shall provide for a yearly audit of the City's accounts as provided by the law by the state department in charge of such work or pursuant to Section 7.01 of the City Charter.  The City Council may at any time provide for an examination or audit of the accounts of any officer or department of the City government and it may cause to be made any survey or research study of any subject of municipal concern.


                        Section 2.13.  MERIT SYSTEM.  Neither the City Council nor any of its members shall dictate the appointment of any person to office or employment by the City Administrator, Police Commission, Hospital Board or Liquor Store Manager or in any manner interfere with the City Administrator, Advisory Commissions or Boards, or Manager of Liquor Store or prevent them from exercising their own judgment in the appointment of officers and employees in the administrative service.  Except for the purpose of inquiry, the Council and its' members shall deal with and control the administrative services solely through the City Administrator, or the other departments as listed herein and neither the City Council nor any member thereof shall give orders to any of the subordinated of the City Administrator and/or the boards or commissions listed herein, either publicly or privately.


                        Section 2.14.  OATH OF OFFICE.  Every officer of the City, before entering upon the duties of his office, shall take and subscribe an oath of office in substantially the following form:

"I do solemnly swear (or affirm) to follow and support the laws and Constitution of the United States and the State of Minnesota, and the Charter and ordinances of the City of Tracy, and do faithfully discharge the duties devolving upon me as a ........ of the City of Tracy, to the best of my judgement and ability."


                        Section 2.15.  OFFICIAL BOND.  The clerk and such other officers and employees of the City of Tracy as designated by the City Council, before entering upon the duties of their respective offices, shall give a corporate surety bond to the City in such sum as may be fixed by the City Council as additional security for the faithful performances of their respective official duties and safekeeping of the public funds.  Such bonds shall be approved by the City Council and shall be endorsed by the Mayor as having been so approved.  Such bonds may be either individual or blanket bonds in the discretion of the City Council.








                        Section 3.01.  COUNCIL MEETINGS.  On the first regular meeting in January the incumbent City Council shall meet at its usual time and place and at which time the newly elected officers shall take their oaths and assume their duties.  Thereafter the Council shall meet from time to time including two (2) regular Council meetings each month except during the month of December there shall be one (1) regular meeting.  The Mayor or a majority of the Council may call a meeting pursuant to the Open Meeting Law of the State of Minnesota.  All records including Council meeting minutes shall be available pursuant to the Open Meeting Law and the Data Practices Act of the State of Minnesota.


                        Section 3.02.  SECRETARY OF COUNCIL.  The City Clerk shall act as secretary of the Council.  He/she shall keep a journal of Council proceedings and shall keep such other records and perform such other duties as may be required in this Charter or the Council may require.  The City Council shall choose such other officers and employees as may be necessary to serve at its meetings.  In the absence of the City Clerk the Council may designate any other official or employees of the City (except a member of the Council) to act as the secretary of the Council.


                        Section 3.03.  RULES OF PROCEDURE AND QUORUM.  The City Council shall determine its own rules and order of business.  A majority of all members elected shall constitute a quorum to do business, but a smaller number may adjourn from time to time.  The City Council may, by ordinance, provide a means by which a minority may compel the attendance of absent members.


                        Section 3.04.  ORDINANCES, RESOLUTIONS AND MOTIONS.  Except as in this Charter otherwise provided, all legislation shall be by ordinances, all matters of policy, City Council directives and business shall be by resolutions.  Internal matters affecting Council Members and Council procedure only may be done by a simple motion.  The aye and no vote on ordinances, resolution, and motions shall be recorded unless the vote is unanimous.  An abstention shall be recorded as a negative vote.  An affirmative vote of a majority of all the members of the City Council shall be required for the passage of all ordinances and resolution, except as otherwise provided in this chapter.


                        Section 3.05.  PROCEDURE ON ORDINANCES.  The enacting clause of all ordinances shall be in the words, "The City of Tracy does ordain."  Every ordinance shall be presented in writing.  An ordinance may be introduced only at a regular City Council meeting by any member of the City Council, by the Mayor, or by a petition signed by ten percent (10%) of the number of qualified voters voting in the last presidential or gubernatorial election.  If the ordinance, as submitted or revised, is approved by a majority vote of the City Council, the City Council shall then cause a notice to appear in the official publication of the City explaining in general the extent of the ordinance and give a brief resume as to the purpose of the ordinance.  The notice shall also contain the date of the next regular meeting at which a public hearing will be held regarding the proposed ordinance.  After all voters in attendance at the hearing have been heard regarding the ordinance, the Mayor shall call for a vote.  If the ordinance is approved by at least four (4) members of the City Council the same shall become effective 30 days after publication or at such later date as the ordinance specifies.  Every ordinance and resolution adopted by the voters of the City shall take effect immediately upon its adoption or at such later date as it specifies.  


                        Section 3.06.  EMERGENCY ORDINANCES.  An emergency ordinance is an ordinance necessary for the immediate preservation of the public peace, health, morals, safety or welfare in which the emergency is defined and declared in a preamble thereto, and is adopted by a vote of at least two-thirds (2/3) majority of the City Council.  No prosecution shall be based upon the provisions of any emergency ordinance until twenty-four (24) hours after the ordinance has been filed with the City Clerk and posted in three (3) conspicuous places or until the ordinance has been published, unless the person charged with violation had actual notice of the passage of the ordinance prior to the act or omission complained of.  An emergency ordinance shall take effect immediately after its adoption.


                        Section 3.07.  PROCEDURE OF RESOLUTIONS.  Every resolution shall be presented in writing and read in full before a vote is taken thereon, unless the reading of a resolution is dispensed with by unanimous consent.  A resolution shall take effect immediately after its adoption or at such later date as fixed therein.


                        Section 3.08.  SIGNING AND PUBLICATION OF ORDINANCES AND RESOLUTIONS.  Every ordinance or resolution passed by the City Council shall be signed by the Mayor or by two (2) other Council members, attested by the City Clerk and filed and preserved by him/her.  Every ordinance shall be published at least once in the official newspaper, or publication requirements may be met by publication, at least once in the official newspaper, of the title and a summary of the ordinance with notice that copies of the ordinance are available during regular working hours at the office of the City Clerk and other locations the Council so designates.  Such procedure shall be followed if the Council so directs, at the time of the adoption of the ordinance.  Council shall approve the text of the summary and determine that it clearly informs the public of the intent and effect of the ordinance.  To the extent and in the manner provided by law, an ordinance may incorporate a Statute of Minnesota, state administrative rule or a regulation, a Code or ordinance or part thereof without publishing the material referred to in full.


                        Section 3.09.  REVISION AND CODIFICATION OF ORDINANCES.  By ordinance the City Council may revise, rearrange and codify its ordinances with such additions and deletions as may be deemed necessary.  Such ordinance Code shall be published in book, pamphlet or continuously revised loose-leaf form and copies shall be made available by the Council at the office of the City Clerk for general distribution to the public at a reasonable charge.  Publication in such a Code shall be a sufficient publication of any ordinance provision not previously published, if a notice that copies of the codification are available at the office of the City Clerk is published in the official newspaper for at least two (2) successive weeks.


                        Section 3.10.  AMENDMENT AND REPEAL OF ORDINANCES AND RESOLUTIONS.  Every ordinance or resolution repealing all or part of a previous ordinance or resolution shall give the number, if any, and the title of the ordinance or resolution to be repealed in whole or in part.  No ordinance or resolution shall be amended by reference to the title alone, but such an amending ordinance or resolution shall set forth in full each section or subdivision to be amended and shall indicate by appropriate type or symbols matter to be omitted or added.







                        Section 4.01.  THE REGULAR MUNICIPAL ELECTION.  A regular municipal election shall be held on the first Tuesday after the first Monday in November of each even numbered year at such place or places as the City Council may designate.  The City Clerk shall give at least ten days posted notice, of the election, stating the time of the election, the location of each polling place, the offices to be filled, and all propositions or questions to be voted upon at the election. The City Clerk shall also post a copy of the notice in the City Clerk’s office for public inspection.


                        Section 4.02.  SPECIAL ELECTION.  The City Council may by resolution order a special election.  The City Clerk shall give at least ten days posted notice, of the election, stating the time of the election, the location of each polling place, the offices to be filled, and all propositions or questions to be voted upon at the election. The City Clerk shall also post a copy of the notice in the City Clerk’s office for public inspection.  Special elections shall be held on dates authorized by Minnesota Statute.


                        Section 4.03.  FILING FOR OFFICE.  Affidavits of candidacy shall be filed in the office of the City Clerk/Administrator pursuant to procedures including notices, times and fees in accordance with statutory law relating to municipal elections. 


                        Section 4.04.  PROCEDURE AT ELECTIONS.  Subject to this Charter and applicable state laws, the City Council may by ordinance further regulate the conduct of municipal elections.  Except as otherwise provided by this Charter and supplementary ordinances, general state laws on election shall apply to municipal elections.


            Section 4.05.  ELECTION PRECINCTS.  The peripheral boundaries of the City shall constitute one election precinct.  In the event a ward system is determined to be in the best interest of the City, the Council shall, by ordinance, provide for the establishment of wards and the procedure for boundary definitions or changes, increases and elimination of wards in the City pursuant to applicable state laws.  No change which increases or eliminates wards shall be made within three (3) months prior to any City office election.  Within six (6) months following the filing of the official certification of the decennial census of the United States with the City, the Council shall, by ordinance, redetermine ward boundaries to equalize ward population.








                        Section 5.01.  GENERAL VOTER AUTHORITY.  The voters of the City shall have the right, in accordance with this Charter, to propose ordinances and to require ordinances to be submitted to a vote by processes known respectively as the initiative, referendum and recall of elected officials.


                        Section 5.02.  PETITIONS.  An initiative, referendum or recall shall be initiated by a petition signed by registered voters of the City equal in number to twenty percent (20%) of those who voted for Mayor in the last proceeding City election.  Each petition shall be sponsored by a committee of five voters whose names and addresses shall appear on the petition.  A petition may consist of one or more papers, but each paper circulated separately shall contain at its head or attached to it the statement required by Section 5.05, 5.06, or 5.07 as the case may be.  Each signer shall sign his name and give his street address.  Each separate page of the petition shall have appended to it a certificate, verified by oath, that each signature is the genuine signature of the person whose name it purports to be.  The person making the certificate shall be a resident of the City.  Any person whose name appears on a petition may withdraw his/her name by a statement in writing filed with the City Clerk before the Clerk advises the Council of the sufficiency of the petition.


                        Section 5.03.  DETERMINATION OF SUFFICIENCY.  Immediately upon receipt of the petition, the City Clerk shall examine the petition as to its sufficiency and report to the Council within twenty (20) days.  Upon receiving the report, the Council shall determine by resolution the sufficiency of the petition.


                        Section 5.04.  DISPOSITION OF INSUFFICIENT PETITION.  If the Council determines that the petition is insufficient or irregular, the City Clerk shall deliver a copy of the petition, together with a written statement of its defects, to the sponsoring committee.  The committee shall have thirty (30) days in which to file additional signature papers and to correct the petition in all other particulars.  If at the end of that period, the Council finds that the petition is still insufficient or irregular, the City Clerk shall file the petition in his/her office and notify the sponsoring committee.  The final finding that the petition is insufficient or irregular shall not prejudice the filing of a new petition of the same purpose nor shall it prevent the Council from referring the ordinance to the voters at the next regular or special election at its option but no further recall action shall be taken thereon.


                        Section 5.05.  INITIATIVE.  Any ordinance, except an ordinance relating to the budget or capital program, the appropriation of money, the levy of taxes, or the salaries of City Officers or employees, may be proposed by a petition which shall state at the head of each page or attached thereto the exact text of the proposed ordinance.  If the Council passes the proposed ordinance with amendments and a majority of the sponsoring committee do not disapprove the amended form by a statement filed with the City Clerk within ten (10) days of its passage by the Council, the ordinance need not be submitted to the voters.  If the Council fails to enact the ordinance in an acceptable form within sixty (60) days after the final determination of sufficiency of the petition, the ordinance shall be placed on the ballot at the next election occurring in the City.  If no election is to occur within one-hundred twenty (120) days after the filing of the petition, the Council shall call a special election on the ordinance.  If a majority of those voting on the ordinance  vote in its favor, it shall become effective thirty (30) days after adoption unless the ordinance specifies a  date.


                        Section 5.06.  REFERENDUM.  Any ordinance subject to the initiative may be subjected to referendum by a petition which shall state, at the head of each page or on an attached paper, a description of the ordinance.  Any ordinance upon which a petition is filed, other than an emergency ordinance, shall be suspended in its operation as soon as the petition is found sufficient.  If the ordinance is not thereafter entirely repealed, it shall be placed on the ballot at the next election or at a special election called for that purpose, as the Council determines.  If a majority of the voters voting thereon favors the ordinance, it shall go into effect immediately or on the date specified in the ordinance; if a majority of the electors voting thereon votes against the ordinance, it shall be considered repealed upon certification of the election results.  If a petition is filed against an emergency ordinance, the ordinance shall be repealed if a majority of the voters voting on the ordinance vote against it.


                        Section 5.07.  RECALL.  Any elected official may be subjected to recall by a petition which shall state, at the head of each page or on attached paper, the grounds of misfeasance or malfeasance in his/her office in not more than two hundred fifty (250) words and the intention to bring about his/her recall.  If the petition or corrected petition is found sufficient, the City Clerk shall transmit it to the Council without delay and officially notify the person sought to be recalled of the sufficiency of the petition and of pending action.  The Council shall at its next regular meeting by resolution provide for the holding of a special recall election.  The City Clerk shall include with the published notice of the election the statement of the grounds for the recall and in not more than five hundred (500) words the answer of the officer concerned in justification of his/her conduct in office.  The election shall be conducted as far as practicable in accordance with the usual procedure in municipal elections.  Unless the officer whose removal is sought resigns within ten (10) days after the receipt by the Council of the completed recall petition, the form of the ballot as such election shall be:  "Shall__________be recalled?"  the name of the official whose recall is sought being inserted in the blank, and the electors shall be permitted to vote separately "yes" or "no" upon this question.  If a majority of those voting on the question vote in favor of recall, the official shall be thereby removed from office.  In the event the recall is successful, the Council at its next regular meeting by resolution provide for holding a special election to fill the vacancy occasioned by the recall.  The candidate who receives the highest number of votes for such vacancy shall be elected thereto for the remainder of the unexpired term.  If the officer sought to be recalled resigns within ten (10) days after the receipt by the Council of a complete recall petition, the position shall be filled pursuant to Section 2.06 of this Charter.







                        Section 6.01.  PURCHASES.  All contracts for the purchase of commodities or services or construction, in an amount and when required by the Uniform Municipal Contracting Law of the State of Minnesota shall be made only as a result of a public call for bids as herein provided.  Such items as professional services, real estate, patented or exclusively held material, and all services or property needed for public uses for which the taking of competitive offers is impossible or impracticable are exempt from such bidding.  The City may purchase realty on a contract for deed or personal property on a conditional sales contract.


                        Section 6.02.  PROCEDURE.  In all cases where a public letting of a contract is required, complete and detailed written plans and specifications shall be prepared and filed with the City Clerk.  The City Clerk shall then advertise for bids by written notice published in the official newspaper of the City once each week or not less than two (2) weeks, which notice shall provide that any and all bids may be rejected by the Council.  Additional notice may be given in such other publication and form as may be deemed necessary.  Each bidder shall be required to deliver with his/her bid a certified or cashier's check or a bidders bond (secured by a surety licensed to do business in the State of Minnesota) in an amount of at least five percent (5%) of the total of his/her bid, to be forfeited as liquidated damages if the bidder shall fail to execute the contract if awarded to him.  Bids received shall be publicly opened at such time and place as specified in the advertisement for bids.  The contract shall be awarded to the lowest responsible bidder except that the Council may exercise a reasonable discretion as provided by law.  Subject to the provisions of this chapter, the Council may by ordinance adopt further regulations for taking of bids and letting of contracts.


                        Section 6.03.  EMERGENCY PROCEDURE.  In the event of emergency and when delay would cause great damage to the public interest or endanger the public safety, the Council may direct the making of necessary repairs or the performance of necessary work by day labor and secure machines and materials therefore in the open market without the necessity of call for bids.


                        Section 6.04.  CONTRACT - BONDS.   All municipal instruments of whatsoever nature including contracts and bonds shall be executed by Mayor and City Clerk upon approval of the City Council.  A party entering into a contract with the City for the doing of any work shall provide such bonds as may e required by state law to make such contract valid, and the City reserves the right to require such bonds in other such instances where it is determined the public interest warrants same.


                        Section 6.05.  CITY OFFICERS NOT TO BE INTERESTED IN CONTRACTS.  Except as otherwise permitted by law, no officer of the City who is authorized to take part in any manner in any contract with the City shall voluntarily have a personal financial interest in such contract or personally benefit financially therefrom.










                        Section 7.01.  COUNCIL TO CONTROL FINANCES.  The Council shall have full authority over the financial affairs of the City, and shall provide for the collection of all revenues and other assets, settlement of accounts, and safe-keeping and disbursement of public money, and in the exercise of a sound discretion shall make appropriations for the payment of all liabilities and expenses.  It shall be the duty of the City Council to cause an audit of the City's books to be made at the end of the fiscal year.  Said audit shall be made by a licensed accountant or a certified public accountant and shall show the condition of the City's financial affairs and comprehend such items and information as are usually included in an audit.  A condensed report of said audit as prepared by a licensed accountant or a certified public accountant shall be published by the City Council in the official newspaper of said City within three (3) months after the end of the fiscal year.


Section 7.02.  FISCAL YEARS.  The fiscal year of the City of Tracy shall be January 1 through December 31.


                        Section 7.03.  SYSTEM OF TAXATION.  Subject to the state constitution and except as forbidden by it or by state legislation, the Council shall have full power to provide by ordinance for a system of local taxation.  In the taxation of real and personal property as such, the City shall conform to the general state law as to the assessment of such property and the collection of such taxes.


                        Section 7.04.  BOARD OF EQUALIZATION.  The City Council shall constitute a Board of Equalization to equalize assessment of taxes for real property.


                        Section 7.05.  PREPARATION OF THE ANNUAL BUDGET.  The Mayor or his/her designee shall direct the preparation of estimates for the annual budget.  The budget shall be by funds and shall include all the funds of the City, except the funds made up of proceeds of bond issues, hospitals, liquor store and utility fund, and special assessment funds, and may include any of such funds at the discretion of the City Council.  The estimate of expenditures for each fund budgeted shall be arranged for each department or division of the City under the following heads:  (1)  ordinary expenses (for operation, maintenance, and repairs); (2) payment of principal and interest on bonds and other fixed charges; (3) capital outlays (for new construction, new equipment, and all improvements of a lasting character).

            Ordinary expenses shall be sub-divided into :  (a) total salaries and the number of persons salaried; (b) other expenses, with sufficient detail to be readily understood.  All increases and decreases shall be clearly shown.  In parallel columns shall be added the amounts granted and the amounts extended under similar headings for the past two (2) completed fiscal years and the current fiscal year, actual to date and estimated for the balance of the year.  In addition to the estimates of expenditures, the budget shall include for each budgeted fund a statement of the revenues which have accrued for the past two (2) completed fiscal years with the amount collected and uncollected balances together with the same information, based on, so far as necessary, estimates, for the current fiscal year, and an estimate for the revenues for the ensuing fiscal year.  The statement of revenues for each year shall specify the following items: (a) taxation, (b) fees, (c) fines, (d) interest, (e) miscellaneous, not including the foregoing, (f) sales and rentals, (g) earnings of public utilities and other public service enterprises, (h) special assessments and (i) sales of bonds and other obligations.  Such budget estimates shall be printed or typewritten with sufficient copies for each member of the City Council, and the City Clerk.  Such budget estimates shall be made public and submitted to the City Council at its first regular monthly meeting in September of each year. The Mayor may submit with the budget estimates such explanatory statement or statements as he/she may deem necessary.


                        Section 7.06.  PASSAGE OF THE BUDGET.  The budget shall be the principal item of business at the first regular meeting of the City Council in August and the Council shall hold adjourned meetings from time to time until all the estimates have been considered.  The meetings shall be so conducted as to give interested citizens a reasonable opportunity to be heard.  The budget estimates shall be read in full and the Mayor shall explain the various items thereof as fully as may be deemed necessary by the Council.  The annual budget finally agreed upon shall set forth in detail the complete financial plan of the City for the ensuing fiscal year for the funds budgeted and shall be adopted by the majority of the full Council. It shall indicate the sums to be raised and from what sources; and the sums to be spent and for what purposes according to Section 7.05.


            The City Council shall adopt the budget not later than as required by statute by a resolution which shall set forth the total for each budgeted fund and each department with such segregation as to objects and purposes of expenditures as the Council deems necessary for the purposes of budget control.  The Council shall also adopt a resolution levying whatever taxes it considers necessary within statutory limits for the ensuing year.  The tax levy resolution shall be certified to the county auditor as required by statute.  At the beginning of the fiscal year, the sums fixed in the budget resolution shall be and become appropriated for the several purposes named in the budget resolution.


                        Section 7.07.  ENFORCEMENT OF THE BUDGET.  It shall be the duty of the City Council to enforce strictly the provisions of the budget.


                        Section 7.08.  ALTERATIONS IN THE BUDGET.  After the budget resolution has been adopted, the Council shall have no power to increase the amounts fixed in the budget resolution, by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts exceed the estimates and then not beyond the actual receipts.  The budget may further be altered to provide for capital expenditure finances by bond and/or non tax sources.  The City Council may at any time, by resolution approved by a majority of the full Council reduce the sums appropriated for any purpose by the budget resolution, or by a vote of two-thirds (2/3) majority of the full Council, authorize the transfer of sums from unencumbered balances of appropriations in the budget resolution to other purposes.


                                    Section 7.09.  EMERGENCY APPROPRIATIONS IN BUDGET.  The City Council may include an emergency appropriation as part of the budget but not to exceed ten percent (10%) of the total budget.  A transfer from the emergency appropriation to any other appropriation shall be made only by a vote of two-thirds (2/3) majority of the full Council and shall be used only for the purposes designated by the Council.


                        Section 7.10.  DISBURSEMENTS.  HOW MADE.  No disbursements of City funds shall be made except such payment be authorized by vote of majority of all members of the City Council and be made by a check signed by the Mayor and the City Clerk or Deputy City Clerk except otherwise provided herein or by ordinance, and specifying the purposes for which the disbursement is made and the fund from which it is drawn.  No such check shall be issued until the claim to which it relates has been supported by an itemized bill, payroll, or timesheet approved and signed by the responsible City Officer who vouches for its correctness and reasonableness.  The Clerk shall note on each contract requiring the payment of money by the City out of the particular fund from which it is to be paid.  The Council may by ordinance make further regulations for the safekeeping and disbursement of the funds of the City.


                        Section 7.11.  FUNDS TO BE KEPT


Subd 1.  There shall be maintained in the City Treasury a general fund for the payment of

such expenses as the City Council may deem proper.  Into this fund shall be paid all moneys levied for this fund and all moneys not required to be placed in some other fund.


                                    Subd 2.  There shall also be maintained in the City Treasury such other funds, or division of funds, as the budget shall require or City Council shall direct.  There shall also be maintained in the City Treasury such other funds or divisions of funds as are required by law, ordinance or resolution.


                        Section 7.12.  ACCOUNTING PROCEDURE.  The City Council may prescribe and enforce proper accounting methods, forms, blanks and other devices consistent with the law, the Charter, and the ordinances adopted in accord therewith.


                        Section 7.13.  CITY INDEBTEDNESS.  No obligations shall be issued to pay current expense, but the City Council may issue and sell obligations for any other municipal purpose in accordance with law and within the limitations prescribed by law.  Except in the case of an obligation for which an election is not required by this Charter or by state law, no such obligations shall be issued and sold without the approval of the majority of the electors of the City voting on the question at a general or special election.


                         Section 7.14.  TAX ANTICIPATION CERTIFICATES.  At any time after the date set forth in Minnesota Statutes Section 2.75.065, as amended, for the City Council to certify the proposed property tax levy for taxes payable in the following year the City Council may issue certificates of indebtedness in anticipation of the collection of taxes levied for any fund and not yet collected.  The total amount of certificates issued against any fund for any year with interest thereon until maturity shall not exceed seventy percent (70%) of the total current taxes for the fund uncollected at the time of issuance.  Such certificates shall be issued on such terms and conditions as the City Council may determine, but they shall become due and payable not later than one (1) year following the date of their issuance.  The proceeds of the tax levied for the fund against which tax anticipation certificates are issued, and the full faith and credit of the City of Tracy, shall be irrevocably pledged for the redemption of the certificates in the order of their issuance against the fund.


            Section 7.15.  EMERGENCY DEBT CERTIFICATES.  If any year the receipts from taxes or other sources should for some unforeseen cause become insufficient for the ordinary expenses of the City, or if any calamity or other public emergency should subject the City of the necessity of making extra-ordinary expenditures, the Council may by ordinance issue and sell on such terms and in such manner as the Council determines, emergency debt certificates to run not to exceed five (5) years.  A tax sufficient to pay principal and interest on such certificates with the margin required by law shall be levied as required by law.  The ordinance authorizing an issue of such emergency debt certificates shall state the nature of the emergency and be approved by a majority of the Council.  It may be passed as an emergency ordinance.


            Section 7.16.  FEES SHALL BE PAID TO THE CITY GOVERNMENT.  All fees received by any officer or employee shall belong to the City.









                        Section 8.01.  POWER TO MAKE IMPROVEMENTS AND LEVY ASSESSMENTS.  The City shall have the power to make any and every type of public improvement not forbidden by the laws of this state and to levy special assessments to pay all or any part of the cost of such improvements as are of a local character.  The amounts assessed to benefited property to pay such local improvements may equal the cost of the improvements, including all costs and expenses connected therewith, with interest, until paid, but shall in no case exceed the benefits to the property.


            Section 8.02.  ASSESSMENTS FOR SERVICE.  All proceedings for the construction and improvements to paid for by special assessments against the benefited property may be instituted by either of two (2) methods as follows:


                        1) The procedures authorized by the laws of the State of Minnesota; or


                        2) A proceeding for any of the public improvements may be initiated by the filing of a petition by the property owners affected or benefited by such improvements, or upon the Council adopting a resolution determining that such public improvements are for the benefit of the general public convenience, safety or health.


If the proceedings for the improvement is initiated by petition, the petition shall be signed by 35% of the owners of property benefited or affected by the improvement, and the Council shall not be required to consider a petition for public improvement in the absence of such signatures.









                        Section 9.01.  POWER TO ACQUIRE PROPERTY.  The City may acquire, by purchase, gift, devise, or condemnation, any property, corporeal or incorporeal, either within or without its corporate boundaries, which may be needed by the City for any public use of purpose.  Easements for slopes, fills, sewer, building lines poles, wires, pipes, and conduits for water, gas, heat, and power may be acquired by gift, devise, purchase, or condemnation in the manner provided by law.


                        Section 9.02.  CITY MAY TAKE ENTIRE PLANT.  If the City condemns a public utility which is operated at the time of the commencement of the condemnation proceedings as one property or one system, it shall not be necessary in the condemnation proceeding or any or the proceedings of the Council, to describe or treat separately the different kinds of property composing such system; but all the property, lands, articles, franchises, and rights which comprise such system may, unless otherwise ordered by the court, be treated together as one property and an award for the whole property in one lump sum may be made by the Council or other body assessing the damages on condemnation.  This does not prevent the City, when the plant and property are separable into distinct parts, from acquiring only such part or parts thereof as may be necessary in the public interest.









                        Section 10.01.  FRANCHISES REQUIRED.  Except as otherwise provided by law, no persons, firm, or corporation shall place or maintain any permanent fixtures in, over, upon, or under such street or public place for the purpose of operating a public utility or for any other purpose without a franchise therefore from the City.  A franchise shall be granted only by ordinance, which shall not be an emergency ordinance.  Every ordinance granting a franchise shall contain all the terms and conditions of the franchise.  The grantee shall bear the cost of publication of the franchise ordinance and shall make sufficient deposit with the clerk to guarantee publication before the ordinance is passed.


                        Section 10.02.  TERM.  No exclusive or perpetual franchise shall ever be granted.  No franchise for a term exceeding twenty (20) years shall be effective until approved by a majority of the electors voting thereon.


                        Section 10.03.  PUBLIC HEARING.  Before any franchise ordinance is adopted or any rates, fares, or prices to be charged by a public utility are fixed by the Council, the Council shall hold a public hearing on the matter.  Notice of such hearing shall be published at least once in the official newspaper not less than ten (10) days prior to the date of the hearing.


                        Section 10.04.  POWER OF REGULATION RESERVED.  Subject to any applicable law the Council may by ordinance reasonably regulate and control the exercise of any franchise, including the maximum rates, fares or prices to be charged by the grantee.  No franchise value shall be included in the valuation of the grantee's property in regulating utility rates, fares, or prices under any applicable law, ordinance or regulation or in proceedings for municipal acquisition of the grantee's property by purchase or eminent domain.


                        Section 10.05.  RENEWALS OR EXTENSIONS.  Every extension, renewal or modification of any existing franchise or of any franchise granted hereafter shall be subject to the same limitation and shall be granted in the same manner as of a new franchise.












                        Section 11.01.  ACQUISITION AND OPERATION OF UTILITIES.  The City of Tracy may own and operate any gas, water, heat, power, lights, telephone or other public utility for supplying its own needs for utility service or for supplying utility service to private consumers or both.  It may construct all facilities reasonably needed for that purpose and may acquire any existing utility properties so needed; but no proceedings to acquire any such public utility shall be consummated unless the City has the money in the treasury to pay for the acquisition or has made provision for paying for the property proposed to be acquired.  The operation of all public utilities owned by the City shall be under the supervision of the City Council.


                        Section 11.02.  RATES AND FINANCES.  The Council may fix rates, fares, and prices, for municipal utilities but such rates, fares, and prices shall be just and reasonable.  In like manner the Council may prescribe the time and manner in which payments for such services shall be made, and may make such other regulations as may be necessary, and prescribe penalties for violation of such regulations.


                        Section 11.03.  PURCHASE IN BULK.  The Council may, in lieu of providing for the local production of gas, electricity, water, and other utilities, purchase the same in bulk and resell them to local consumers at such rates as it may fix.


                        Section 11.04.  LEASE OF PLANT.  The Council may, if the public interest will be served thereby, contract with any responsible person, co-partnership, or corporation for the operation of any utility owned by the City, upon such rentals and conditions as it may deem necessary; but such contract shall be embodied in and let only by an ordinance approved by five (5) members of the Council.  Such ordinance shall not be an emergency ordinance.  In no case shall such contract be for a longer term than ten (10) years.


                        Section 11.05.  PUBLIC UTILITY.  HOW SOLD.  No public utility owned by the City shall be sold or otherwise disposed of by the City unless the full terms of the proposition of sale or other disposition are embodied in an ordinance approved by a majority of the electors voting thereon at a general or special election.  In the case of a water works or light plant, any sale, lease, or abandonment shall be subject, in addition, to the requirement of state law.









                        Section 12.01.  OFFICIAL PUBLICATIONS.  The Council shall annually designate a legal newspaper as provided by the laws of Minnesota as its official newspaper.


                        Section 12.02.  SALE OF REAL PROPERTY.  The sale of any real property acquired by the City which is no longer needed for public purposes shall be approved by a majority of the Council.  The Council shall determine whether competitive bidding is necessary in each proposed sale.  The proceeds of any sale of such property shall be used as far as possible to retire any outstanding indebtedness by the City in the purchase construction or improvement of this or other property used for the same public purpose.  If there is no such outstanding indebtedness, the Council may by resolution designate some other public use for the proceeds.


                        Section 12.03.  VACATION OF STREETS.  The Council may by ordinance approved by a majority of the full Council vacate any street or alley or part thereof within the City.  Such vacation may be made only after published notice and an opportunity for affected property owners and public to be heard, and upon such further terms and by such procedure as the Council by ordinance may prescribe.  A notice of completion of such proceedings shall be filed with the proper county officers in accordance with law.


                        Section 12.04.  FORMER CHARTER REPEALED.  The existing Charter of the City of Tracy as amended is hereby amended by striking all the provisions thereof and substituting therefore the foregoing Charter of the City of Tracy.