What happens if funds are not appropriated for the next fiscal year?

If funds are not appropriated for the next fiscal year, the correct outcome is that the Agreement will terminate without penalty to the City. This provision is particularly important in government contracts, as it protects the City from being obligated to continue funding if financial resources are no longer available. Such clauses are often included to ensure that governmental entities can align their operational costs with the resources available, reflecting fiscal responsibility and planning.

The rationale for this policy is based on the principle that government contracts cannot obligate future appropriations unless there is a specific legal provision allowing for continued funding. This mechanism allows for flexibility and responsiveness to funding changes, ensuring that the City is not liable for obligations it cannot meet in the absence of appropriated funds.

While alternatives like seeking reduced funding, finding alternative funding sources, or maintaining the agreement until further notice seem viable, they do not embody the specific legislative and fiscal prudence reflected in the termination clause related to non-appropriation.