CMO Municipal Government Structure & Functions 4 — Questions and Answers
Question 1: Which type of municipal budget basis records revenues when received and expenditures when paid?
- Accrual basis
- Modified accrual basis
- Cash basis (Correct answer)
- Encumbrance basis
Correct answer: Cash basis
Cash basis accounting recognizes revenues and expenditures only when cash is actually received or disbursed, unlike accrual methods that recognize them when earned or incurred.
Question 2: In a commission form of government, individual commissioners typically:
- Serve only in a legislative capacity and hire an administrator
- Serve as both legislators and heads of specific municipal departments (Correct answer)
- Are appointed by the governor for staggered terms
- Share all executive duties equally without departmental assignments
Correct answer: Serve as both legislators and heads of specific municipal departments
Under the commission form, each elected commissioner both participates in legislative decisions and administers one or more city departments as an executive.
Question 3: Which legal doctrine holds that a municipal corporation possesses only those powers expressly granted, necessarily implied, or essential to its declared purposes?
- Home rule doctrine
- Dillon's Rule (Correct answer)
- Ultra vires doctrine
- Sovereign immunity
Correct answer: Dillon's Rule
Dillon's Rule, articulated by Judge John Dillon, strictly construes municipal authority and limits cities to powers expressly granted by the state or necessarily implied therefrom.
Question 4: An executive session of a municipal governing body is best described as:
- A meeting open to all residents to comment on proposed ordinances
- A closed meeting where the council discusses personnel, litigation, or real estate matters (Correct answer)
- A joint session between the city council and county board
- A session chaired by an outside mediator
Correct answer: A closed meeting where the council discusses personnel, litigation, or real estate matters
Executive sessions are closed to the public and typically limited to specific subjects permitted by open meetings laws, such as personnel actions, pending litigation, or real property negotiations.
Question 5: A municipal inter-local agreement is primarily used to:
- Amend the city charter without a public vote
- Allow two or more governmental units to cooperatively provide services or share resources (Correct answer)
- Transfer taxing authority from a municipality to a county
- Create a new special district with separate bonding authority
Correct answer: Allow two or more governmental units to cooperatively provide services or share resources
Interlocal agreements enable municipalities and other governmental units to jointly deliver services, share facilities, or pool resources to achieve economies of scale.
Question 6: What is the primary function of a municipal finance officer or treasurer?
- Prosecuting violations of city ordinances
- Safeguarding public funds and managing city investments and disbursements (Correct answer)
- Conducting performance audits of city departments
- Negotiating collective bargaining agreements
Correct answer: Safeguarding public funds and managing city investments and disbursements
The municipal treasurer or finance officer is responsible for receiving, safeguarding, investing, and disbursing public funds in accordance with law and council direction.
Question 7: Which process allows a municipality to bring adjacent unincorporated territory within its corporate limits?
- Consolidation
- Annexation (Correct answer)
- Incorporation
- Dissolution
Correct answer: Annexation
Annexation is the legal process by which a municipality extends its boundaries to include adjacent unincorporated land, subjecting that area to city jurisdiction and services.
CMO Municipal Government Structure & Functions 4
Which type of municipal budget basis records revenues when received and expenditures when paid?