which it was incurred, and shall refer to Chapter II of this Article.

SEC. 7. It shall be the duty of the Auditor to keep an official register of all claims against the various Specific Funds in the Treasury presented to him for allowance or audit, entering them therein as soon as presented, and numbering them in the order of their presentation as to such Specific Fund, and shall show the special number of the demand as acted upon by the Supervisors or the Board, Department or authority authorizing the same and to act upon and allow or reject the same in the order of their priority as to payment. He shall not allow or approve any claim out of its order or give priority to one claim over another claim drawn upon the same Specific Fund, to the prejudice of such other, unless such claim be entitled thereto. A transcript of the Auditor's register of claims shall be by the Auditor furnished and delivered to the Treasurer, so that he shall at all times know what claims are pending or have been allowed against each Specific Fund.

SEC. 8. Every lawful demand upon the Treasury, duly audited as in this Charter required, shall in all cases be paid on presentation, and cancelled with a punch cutting the word "cancelled" therein, and the proper entry thereof be made, if there be sufficient money in the Treasury belonging to the Specific Fund out of which it is payable and applicable to the payment of such demand under the provisions of this Chapter; but if there be not sufficient money belonging to said Specific Fund and so applicable, then it shall be registered in a book kept for that purpose by the Treasurer. The register to be kept by the Treasurer shall show the special number given by the Supervisors or other authority, and also by the Auditor to each claim presented, also when presented, the date, amount, name of original holder and on what account allowed and out of what Specific Fund payable, and being so registered shall be returned to the party presenting it, with an endorsment of the word "registered," dated and signed by the Treasurer, provided that no claim or demand presented to the Treasurer after the close of the Fiscal year, during which such claim or demand was contracted or incurred, shall ever be registered or entitled to registration; but the fact that any claim or demand is not registered shall not affect its right to payment out of any money then in the proper Specific Fund in the Treasury or which should afterwards come into the proper Fund out of the income and revenue of the proper Fiscal year, and applicable to the payment thereof, as provided in this Chapter, and, provided, further, that the registration of any claim or demand shall not operate in any manner to recognize or make valid such claim or demand if incurred in contravention of any of the provisions of this Charter. The Treasurer shall not give or allow priority in payment of one claim over another claim drawn upon the same Specific Fund, or pay claims out of their order to the detriment, delay or injury of the holder of any claim.

SEC. 9. If the Auditor refuses or omits to approve or allow any claim or demand when presented to him, which has been regularly authorized approved and allowed by the Supervisors, the Board of Education or any other authority having power to contract or incur liabilities against the Treasury, and which is shown to have been regularly passed upon, authorized and approved by all the authorities necessary to constitute a valid claim under this Charter, except the Auditor alone, and drawn upon the proper Specific Fund, and in all respects legal in substance and form, and which only lacks the allowance of the Auditor to entitle the same to payment out of the Treasury, and out of the Specific Fund upon which it is drawn, all of which must appear upon its face, then, and in such case the holder of such claim may serve a certified copy thereof, with the proceedings had thereon, upon the Treasurer, who shall at once set aside and reserve a sum out of the appropriate Specific Fund sufficient to liquidate said claim, should it finally prove valid, if there be money in such Specific Fund, which would be lawfully applicable to such payment if allowed by the Auditor, and if there be no such money, then out of any money that may afterwards come into such Fund as its portion of the income and revenue of the Fiscal year in which such claim was incurred and applicable to such payment under the provisions of this Chapter. Such money shall remain in reserve till the question of the validity of the claim is determined, and the holder of any valid audited claim against the same Specific Fund subsequent in time, payment of which is delayed by reason of such reservation shall have the right to contest the same as a party in interest.

SEC. 10. It shall not be lawful for the Supervisors, Board of Education, or for any Board or authority having power to incur, authorize or contract liabilities against the Treasury of said city and county, to incur, authorize, allow, contract for, pay, or render payable, in the present or future, in any one month, any expenditure, demand or demands against said Treasury, or any of the Specific Funds thereof, which taken with all other expenditures, indebtedness or liability made or incurred up to the time in such month, of making or incurring the same which shall exceed twelfth part of the amount of money provided by the Supervisors, and actually collected and paid into the Specific

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Fund, as and for the income and revenue of the fiscal year during which such liability, expenditure or demand is incurred, and apportioned to the Specific Fund, to be charged therewith and allowed by law in force at the time such expenditure is made or liability incurred, to be expended out of such Specific Fund as the money apportioned to the same for such fiscal year; but this provision shall not apply to such appropriations as from their nature are not continuous or running expenses, but are intended to be, and can be lawfully made in single payments or sums. If at the beginning of any month any money remains unexpended in any of the Specific Funds set apart for maintaining the Municipal Government, and which might lawfully have been expended the preceding month, such unexpended sum or sums, except so much thereof as may be requisite to pay all valid unpaid claims upon such Specific Fund, may be carried forward in the same Specific Fund and expended by order of the Supervisors in any succeeding month of such fiscal year, but not afterwards, except in payment of claims lawfully incurred during such fiscal year; and all officers and others are charged with notice of the condition of the Treasury of said city and county, and of the extent of the claims against the same. The Auditor, should he give an incorrect or untrue certificate when called upon to act as provided by Section 12 of this Chapter, and thus permit the authorizing or allowing of any claim or demand upon or against said Treasury, or any Specific Fund thereof, in violation of any of the provisions of this section, and each Supervisor, School Director or other officer or member of any Board, Department or authority voting to authorize or incur such expenditure or liability upon its final passage, or having otherwise wilfully contributed to the authorization, incurrence or approval of the same shall be liable in person, and upon his official bond, to the contractor or person damaged by such illegal authorization, to the extent of his loss by reason of such action.

SEC. 11. The limitations in the preceding section contained upon the payment of money, or the incurring of any debt or liability, shall not apply in case of any great public necessity or emergency; but in such cases, such limitations may be temporarily suspended as to any lawful contract, authorization or expenditure necessary to provide for such necessity or gency; provided, that such expenditure, contract authorization shall only be made by ordinance, passed by the unanimous vote of all members elected or appointed to said Boards of Supervisors, and entered in the Journals of the Boards of Supervisors respectively, and

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the character of such necessity or emergency shall be recited in the ordinance authorizing such action, and such ordinance must be approved in writing by the Mayor, Auditor and Treasurer of said city and county; but nothing in this exception or proviso shall be deemed to allow of the incurring of liabilities against the Treasury or any Specific Fund thereof, not allowed by law, or which cannot be paid out of the income and revenue provided, collected and paid into the proper Specific Fund as the proportion of the same for such fiscal year, or to permit liabilities or indebtedness incurred in any one fiscal year to be a charge upon or paid out of the income or revenue of any other fiscal year.

SEC. 12. All ordinances or resolutions appropriating money or incurring any indebtedness or liability against the Treasury or any Specific Fund thereof introduced in either of the Boards of Supervisors, or in the Board of Education, or other Department or authority, shall, before being passed, be referred to the appropriate standing committee, who shall present the same to the Auditor, in order that he may certify if such be the fact that such an appropriation can be made or indebtedness incurred without violating any of the provisions of this Chapter; and until the Auditor shall so certify in writing upon such claim, ordinance or resolution, no further action shall be had upon the same; provided, that such certificate of the Auditor shall not take the place of or affect the allowance of such claim and final action of the Auditor thereupon as in this Charter elsewhere provided.

SEC. 13. Neither the City and County of San Francisco, nor the Supervisors, Board of Education, or any other Department or authority, shall ever have power to legalize, allow, make valid, or in any manner recognize any claim or demand against the city and county, or its Treasury, which was not at the time of its incurrence or creation a valid claim against the same, and authorized by law; nor shall they, nor any of them, ever allow or authorize to be paid, or in any manner recognize any claim or demand which, without such action, would be invalid, or which shall then be barred by any statute or law of limitation, or for which said city and county was never legally liable, and any act or proceeding in contravention of this Section shall be void.

SEC. 14. Any taxpayer of said city and county may maintain an action to restrain or prevent any Board, Department, officer or authority from incurring, authorizing, allowing or paying any demand or liability against the Treasury, or any Specific Fund thereof, in contravention of any of the provisions of this Charter, or to compel the return of and payment to the Treasury of any sum so paid out.

CHAPTER III.

OF TAXATION AND SPECIFIC FUNDS.

SECTION 1. The expenditures of, and the debts and liabilities against, the city and county, payable out of Specific Funds, shall only be paid as is limited and controlled by the provisions of this Chapter, anything in this Charter to the contrary notwithstanding. No Department, Board or officer shall make any expenditure, or authorize or incur any liability against the Treasury or any Specific Fund therein, unless expressly authorized so to do by an ordinance of the Supervisors, made in pursuance of law and of the express powers granted by this Charter.

SEC. 2. The income and revenue provided, collected and paid into said Treasury shall be kept in separate Specific Funds as hereinafter provided: and it shall not be lawful to transfer money from one Fund to another Fund, or to use the same in the payment of demands upon another Specific Fund.

Nor shall any surplus remaining in the Treasury at the end of any fiscal year be carried over to any future year except as otherwise expressly provided in this Chapter, so long as any unpaid funded debt of said city and county remains outstanding, but all such moneys shall be applied under such regulations as the Supervisors may prescribe for the liquidation of such funded debt, after which any surplus in the Treasury at the end of any fiscal year shall be carried forward to the credit of, and be used during, the following year.

SEC. 3. On or before the last Monday of May in each year the Auditor shall prepare and transmit to the Supervisors, accompanied with the estimates and reports of each department, which he shall require to be delivered to him, an estimate of the probable necessities of the city and county Government for the next ensuing fiscal year, giving the amount required to meet the interest and sinking funds for any and all valid outstanding funded debts, together with the amount needed for salaries and the probable wants of all the departments of the municipal government in detail, and showing specifically the necessities of each of the several Specific Funds to be provided for in the Treasury. The estimate shall also show, as nearly as may be, what amount of income and revenue is likely to accrue to the Treasury, and be collected from fines, licenses, and all other sources of revenue, exclusive of taxes upon property, and shall give an estimate of what amount will be required to be levied and raised by tax upon all property in said city and county subject to taxation, in order to meet the necessities of such fiscal year.