A.
The annual budget and the capital program for the
ensuing fiscal year shall be prepared, adopted, revised or amended
as required by §§ 7.02 through 7.09 of the Charter.
B.
The annual budget shall include estimated income, including any proposed tax levy, and proposed expenditures by the Township. No annual budget shall project an excess of expenditures over receipts. Proposed expenditures shall be divided into those major classifications that most fully describe the financial operations of the Township. Revenues shall be shown in enough detail to indicate their sources. Capital improvement expenditures shall be identified and the method of their financing shall be described. A three-year capital program shall be submitted in accordance with § 7.06 of the Charter.
D.
The annual budget shall include a summary of debt service which shows the date, purpose, amount and maturity date of original issue; the interest rate; the balance outstanding at the beginning of the fiscal year; the principal and interest payable for the fiscal year; and retirement by year, principal and interest. It shall also conform to other requirements of § 7.05 of the Charter.
A.
Major classifications of revenue accounts in the general
fund shall include as a minimum:
B.
Subdivisions within the major classifications shall
be those in the adopted budget for the current year and may change
from year to year. The classification of revenue accounts for other
funds shall include the beginning balance and interest earnings; assessments,
rents, fees, grants, bond revenue and donations, if applicable; and
such other classifications as are used in the annual budget.
C.
Major classifications (departments or offices) for
expenditure accounts for all funds shall be those which most fully
describe the financial operations of the Township. These major classifications
shall be subdivided, where appropriate, into control accounts, as
follows, and into such other classifications as may be needed. The
classifications may be further subdivided for effective control.
D.
Each of the above classifications in the adopted budget shall be treated as a control account for the current year. The Finance Director shall maintain a current list of account numbers. These account numbers shall be used for all financial records in the Township. Each control account for the current year shall be funded by an appropriation and may be revised, amended or transferred as provided in § 7.08 of the Charter.
A.
Records and reports maintained and prepared by the
Finance Director.
(1)
The Finance Director shall supervise the preparation
and maintenance of records of all financial transactions consistent
with accounting procedures and practices of the American Institute
of Certified Public Accountants (AICPA). Accounting records shall
be maintained on the modified accrual basis. The financial statements
at year-end shall be prepared on a modified accrual basis consistent
with the procedures and practices of the AICPA. The Township shall
record all transactions using a double-entry bookkeeping system.
(2)
The following books of account shall be maintained
for each fund, where applicable, to record each financial transaction:
(4)
The Finance Director shall prepare as promptly as
possible financial practices and procedures, in writing, for the Township.
Practices and procedures shall describe procedures and forms necessary
to record, preserve and report the financial transactions of the Township
in accordance with the provisions of the Charter and this chapter.
These written procedures and practices shall cover as a minimum the
following areas:
B.
Procedures covering the Township Treasurer.
(1)
Receipts.
(a)
As provided in § 4.05 of the Charter, all payments to the Township shall be received by the Treasurer. No other Township employee (elected or appointed) shall be authorized to receive money for the benefit of the Township unless specifically designated by the Treasurer. Money belonging to the Township shall be deposited each business day in the name of the Township in a depository previously designated.
(b)
The Treasurer shall issue receipts for funds collected. At the end of each business day, copies of all receipts, plus duplicate deposit slips, shall be forwarded to the Finance Director. The Treasurer shall prepare a daily summary of the collections for the day by major classification, as set forth in § 5-45A. The original shall be retained by the Treasurer and a copy shall be forwarded to the Finance Director. The daily summary shall be signed by the Treasurer or his duly authorized designee. The Treasurer shall use the same chart of accounts as the Township.
(2)
Disbursements. The treasurer shall disburse Township funds in the manner prescribed in § 5-48. The Treasurer shall maintain a file of disbursement authorizations in his office.
(3)
Real estate tax. The Treasurer shall check for accuracy
the real estate tax duplicate provided by Delaware County and shall
advise the county of any errors or discrepancies. He shall keep accurate
records of the real estate tax billings, receipts and accounts receivable.
A.
Depositories.
(1)
The Board of Commissioners shall designate, from time
to time, by resolution, a depository or depositories for Township
funds. Such depository or depositories shall be banks, banking institutions
or trust companies located in the commonwealth.
(2)
Depositories so designated shall, upon receipt of
notice of their selection as a depository of Township funds, furnish
a bond to secure payment of deposits of Township funds and any interest
to the Township, with a proper warrant to confess judgment in favor
of the Township, secured by a surety company or individual sureties
to be approved by the Board, or deposit obligations of the United
States or the commonwealth or any political subdivision thereof, with
a bond rating of at least A by Moody's Investor Service, to secure
the payment of Township deposits and any interest thereon. Such surety
bonds shall be in a sum, to be fixed by the Board, at least equal
to the probable greatest amount of such deposit at any one time. The
market value of deposit bonds at all times shall be at least equal
to 120% of the amount of Township funds to be secured. Such deposit
bonds shall be accompanied by proper assignments or powers of attorney
to transfer the same. In the event of the failure of the depository
to pay to the Township the full amount of such deposits and interest
thereon, such bonds and the proceeds of sale thereof shall belong
to the Township until it shall receive therefrom the full amount of
such deposits and interest thereon, and the Township shall have a
prior standing as respects such bonds and be in all respects preferred
to any and all claims except such as have heretofore been preferred
by law.
(3)
Nothing herein contained shall be construed to require
a depository to furnish bond or collateral security to cover the amount
of any deposit to the extent that the same is insured with the Federal
Deposit Insurance Corporation or the Federal Savings and Loan Insurance
Corporation.
(4)
The Treasurer shall, upon the designation and qualification
of such depository or depositories, thereafter keep Township funds
only in such depository or depositories in the name of the Township.
B.
Separation of funds. Whenever any moneys which have
been pledged or assigned to a special Township fund are received by
the Treasurer, the Treasurer shall deposit said moneys into the appropriate
fund account and shall not disburse them or any part of them for any
purpose other than that for which they were collected. Misuse of such
moneys shall be an offense for which the authorizers and signers of
the illegal checks, money orders or drafts shall be liable for surcharge
for the sum misused or the loss of the Township.
C.
Transfers and loans between funds. The Finance Director
may borrow from one Township fund to another with the approval of
the Board. All loans shall be repaid within one year. Any loans to
or from the sewer fund shall be repaid with interest at 6% per annum.
Loans and/or transfers between funds shall be accompanied by appropriate
documentation.
E.
Escrow accounts. Any escrow funds or refundable deposits
received by the Township shall be deposited in escrow accounts by
the Treasurer. The Treasurer shall release said funds only after authorization
by the Township official responsible for certifying that the conditions
requiring the release of the escrow funds or refundable deposits have
been met.
A.
Check signing.
(1)
Checks shall be prepared upon the authorization of
the Finance Director after he is satisfied that the expenditure is
proper.
(2)
The Treasurer shall disburse funds of the Township
by check, draft or other order of payment on a form of disbursement
authorization adopted by the Manager and issued to the Treasurer by
the Manager or, in his absence, by the Secretary. The Treasurer shall
assure himself that each disbursement shall not exceed the applicable
appropriation.
(4)
Individual payroll checks shall bear the actual signature
or facsimile thereof of the Manager and the signature of the Treasurer
or his approved designee. The Treasurer shall receive with the checks
to be signed payroll authorization supporting the disbursements which
have been approved by the Manager or, in his absence, the Secretary.
A.
All purchases shall be made with a purchase order
except those made from petty cash and regular bills that are paid
upon presentation. A petty cash imprest system shall be used only
for the purchase of small items, as defined in purchasing procedures,
and shall be fully documented. Blanket purchase orders may be used
on a monthly or annual basis for those vendors from whom regular purchases
are made. Confirming purchase orders may be used for emergencies only.
The Finance Director shall provide appropriate forms for purchase
orders and control the issuing of the forms. All purchase orders shall
be signed by the Finance Director or the Manager.
B.
Vendors for nonbid items shall be selected based on
quotations obtained by telephone, in writing or from current catalogs.
Written quotations shall be obtained when specifications are used.
All quotations and related documentation shall be submitted with the
purchase order. Written justification shall be made when a quotation
other than the lowest one is accepted.
C.
If the purchase price is $300 or less and the price is considered reasonable, only one quotation need be obtained. If the purchase price is between $300 and $3,000, three quotations shall be solicited. Purchases of $3,000 or more shall be made in accordance with the procedures given in § 5-50 on competitive bidding.
D.
The department receiving supplies, material, equipment
or contractual services shall verify that they meet the specifications
set forth in the order or contract. The Township shall have the authority
to require chemical, physical and performance tests of materials submitted
with bids and delivery samples to determine their quality. For such
tests, the Township may make use of outside testing facilities.
E.
The Township, with the approval of the Board, may
enter into agreements to purchase cooperatively with other governmental
entities.
A.
General procedures.
(1)
All purchases of labor, material, supplies or services, aggregating $3,000 or more in any fiscal year, shall be bought after the awarding of bids as provided in this chapter. In determining whether or not a purchase exceed $3,000, the definition of items to be bid shall be the class rather than specific items within a class, e.g., tires of different sizes or grades are all of one class. Exemptions from and restrictions on competitive bidding are governed by § 7.11 of the Charter.
(2)
All bids in all cases, whether of straight sale price,
conditional sale, bailment lease or otherwise, shall be for the entire
amount which the Township shall pay to the successful bidder or his
assigns in order to obtain the services or property, or both, and
shall not be construed to mean only the amount which shall be paid
to acquire title or to receive any other particular benefit or benefits
of the whole bargain. All bids shall be sealed by the bidder. A bid
bond may be required of all bidders on a contract at the discretion
of the Board or the Manager.
B.
Advertising.
(1)
A legal advertisement shall be required for bids for
each nonexempted purchase aggregating $3,000 or more. This advertisement
shall state in general terms the material, labor, supplies or service
needed; where and when the specifications and plans can be obtained
and their price, if any; the time limit on receipt of bids; and the
date, time and place for publicly opening the bids. This advertisement
shall be published at least twice in the same newspaper. The first
time shall be not less than 10 days before the opening date for the
bids. Additional advertisements in appropriate trade or legal journals
and notification of prospective bidders may be made at the discretion
of the Board or the Manager.
(2)
Specifications and plans must be available on the
date of the first advertisement for bids.
C.
Opening of bids. Bids shall be publicly opened and
read aloud at the time and place specified in the legal advertisement.
All bids shall be available for public inspection.
D.
Performance bonds. The successful bidder may be required,
at the discretion of the Board or the Manager, to furnish bond with
requirements guaranteeing the performance of the contract or, as required
by law, with surety in an amount sufficient to guarantee the completion
of the contract. Performance bonds, if required, shall be given to
the Township within 20 days after the contract has been awarded unless
the Board shall prescribe a shorter period of not less than 10 days.
Upon failure to furnish bond within such time, the previous award
shall be void. The contract may then be awarded to another bidder
or it may be readvertised for bids. Deliveries, accomplishment and
guaranties may be required in all cases of expenditures, including
negotiated contracts.
E.
Bonds for protection of labor and material. The Township
shall require any person, partnership, association or corporation
entering into a contract with the Township for the construction, erection,
installation, completion, alteration, repair of or addition to any
public work or improvement of any kind whatsoever where the amount
of the contract is $3,000 or more, before commencing work under such
contract, to execute and deliver to the Township, in addition to any
other bond which may now or hereafter be required by law to be given
in connection with such contract, an additional bond for the use of
any and every person, partnership, association or corporation interested,
in a sum not less than 50% and not more than 100% of the contract
price, as the Township may prescribe, having as surety thereon one
or more surety companies legally authorized to do business in the
commonwealth, conditioned for the prompt payment of all material furnished
and labor supplied or performed in the prosecution of the work, whether
or not said material or labor enter in and become component parts
of the work or improvements comtemplated. Such additional bond shall
be deposited with and held by the Secretary for the use of any part
interested therein. Every such additional bond shall provide that
every person, partnership, association or corporation that, whether
as subcontractor or otherwise, has furnished material or supplied
or performed labor in the prosecution of the work as above provided
and that has not been paid therefor may sue in assumpsit on said additional
bond, in the name of the Township, for his, their or its use and prosecute
the same to final judgment for such sum or sums as may be justly due
him, them or it and have execution thereon; provided, however, that
the Township shall not be liable for the payment of any costs or expense
of any suit.
F.
Awarding of bids. All bids shall be awarded by the
Board at a public meeting to the lowest responsible and qualified
bidder after the bids have been publicly opened and have been evaluated
by the Township staff. When the award is not given to the lowest bidder,
a statement of the reasons for awarding the contract to another bidder
shall be recorded in the minutes of the meeting at which the bid was
awarded. The Board may award part or all of any bid or may reject
all bids for any reason.
A.
General.
(1)
The terms of contracts for purchase of materials,
supplies and services shall not exceed two years. All contracts of
the Township involving sums in excess of $3,000 shall be in writing
and approved formally by the Board. Single contracts for a project
or program may be used at the discretion of the Board.
(2)
No contract shall be made or obligation incurred unless
there is a sufficient unencumbered balance in an appropriation and
sufficient money is available to cover the contract or meet the obligation
when it becomes due and payable. Any official who knowingly authorizes
a contract to be made in violation of this provision shall be subject
to removal from office and liable to the Township or its surety for
any loss incurred as a result of such action. The Township Solicitor
shall approve all written contracts before they are signed by any
Township official.
(3)
A special type of contract may be used whereby the
Township does not obligate itself to purchase or to accept a commodity
but furnishes the vendor with an estimate of its probable needs as
a guide to the amount that may be purchased.
(4)
No contract shall be awarded any contractor who has
any other interests in the same project.
B.
Procedures for specific categories of contracts.
(1)
Purchase, sale, use or lease for three or more years
of real property. The contract shall be authorized by ordinance. The
written contract shall be signed by the President of the Board and
the Manager.
(2)
Construction of public capital improvements. The contract
shall be awarded by competitive bidding if the amount is over $3,000.
The contract shall be authorized by ordinance. The written contract
shall be signed by the President of the Board and the Manager.
(3)
Labor contract with a union. The contract shall be
negotiated by the Board or its designee, and such contract shall be
subject to approval by the Board. The written contract shall be signed
by the President of the Board.
(4)
Professional or unique services and supplies. Professional
or unique services and supplies costing over $3,000 shall require
public notice, including a request for proposals. Initial screening
of the applicants shall be done by the Manager. The contract shall
be approved by the Board at a public meeting. The written contract
shall be signed by the President of the Board or the Manager if authorized
by the Board.
(5)
Insurance and surety company bonds. A contract shall
be negotiated by the Manager or Finance Director. The Township shall
seek additional proposals before renewing existing contracts. The
contract shall be subject to approval by the Board at a public meeting.
The written contract shall be signed by the President of the Board
or the Manager if authorized by the Board.
(6)
Contracts with other governmental entities, authorities,
agencies or political subdivisions. Contracts shall be negotiated
by the Manager subject to the approval of the Board. The written contract
shall be signed by the President of the Board or the Manager if authorized
by the Board.
(7)
Emergency repairs or service and equipment required
by emergency conditions. Approval shall be given by the Manager or
Finance Director and the department head involved in the emergency.
If the contract is for over $3,000, it shall be approved by a special
meeting of the Board. The written contract shall be signed by the
President of the Board or the Manager if authorized by the Board.
[Amended 5-14-2012 by Ord. No. 2012-04]
A.
Real property.
(1)
No real property of the Township shall be sold or disposed of without
the approval of the Board of Commissioners. No real estate owned by
the Township having a fair market value, as determined by a professional
appraisal, in excess of $1,500 may be sold except to the highest bidder
after due notice by advertisement for bids or advertisement of a public
auction in one newspaper of general circulation in the Township. The
advertisement shall be published once not less than 10 days before
the date set for the opening of bids or public auction, and the date
for opening bids or public auction shall be announced in the advertisement.
The award of contracts shall be made only by public announcement at
a regular or special meeting of the Board of Commissioners or at the
public auction. All bids shall be accepted on the condition that payment
of the purchase price in full shall be made within 60 days of the
acceptance of bids or upon such other conditions of purchase price
payment as determined by the Board of Commissioners at the time of
bid advertisement.
(2)
The Board of Commissioners may reject all bids if the bids are deemed
to be less than the fair market value of the property. In the case
of a public auction, the Board of Commissioners may establish a minimum
bid based on the fair market value of the real property.
(3)
All sale of real property by the Township shall comply with the requirements of the Donated or Dedicated Property Act, 53 P.S. 3381 et seq., if applicable, including any conveyances or leases of real property as identified in Subsection A(4) of this section.
(4)
Conveyances or leases.
(a)
The requirements of this section do not apply to conveyances
or leases of real property by the Township to any of the following:
[1]
A municipal corporation.
[2]
The federal government.
[3]
The commonwealth.
[4]
An institution district.
[5]
A school district.
[6]
A municipality authority.
[7]
A county.
[8]
A public utility.
[9]
A volunteer fire company.
[10]
A nonprofit corporation engaged in community industrial, commercial
or affordable housing development.
[11]
A volunteer ambulance service or volunteer rescue squad located
within the Township.
[12]
A nonprofit corporation organized as a public library.
[13]
A nonprofit medical service corporation.
[14]
A nonprofit housing corporation.
[15]
A nonprofit organization providing community service or development
activities.
[16]
A nonprofit corporation established for the preservation of
historical, architectural or aesthetic sites or artifacts.
[17]
A nonprofit association or nonprofit corporation organized to
acquire and maintain real property for the preservation, conservation
and stewardship of open space.
(b)
Such conveyances or leases shall be at the sole discretion of
the Township.
(5)
When real property is sold to a nonprofit corporation organized as
a public library or to a nonprofit medical service corporation, nonprofit
housing corporation, volunteer fire company, volunteer ambulance service
or volunteer rescue squad, the Board of Commissioners may elect to
accept any nominal consideration for the property as it believes appropriate.
Real property sold under this subsection is subject to the condition
that when the property is not used for the purposes of the corporation
or volunteer fire company, the property reverts to the Township.
(6)
Any official or employee who sells or authorizes the sale of any
Township real property without complying with the provisions of this
section shall be subject to a surcharge in the amount of any loss
sustained by the Township by reason of such sale, as well as any additional
disciplinary action the Township deems appropriate.
B.
Personal property.
(1)
No personal property of the Township shall be sold or disposed of without the approval of the Board of Commissioners. No personal property owned by the Township, the estimated fair market value of which is $1,000 or more, shall be sold except to the highest bidder after due notice by advertisement for bids or for public auction in one newspaper of general circulation in the Township. The advertisement shall be published once not less than 10 days before the date set for the opening of bids or public auction, and the date for opening bids or public auction shall be announced in the advertisement. The advertisement for electronic auction sales authorized in Subsection B(4) shall include the Internet address or means of accessing the electronic auction and the date, time and duration of the electronic auction. If after attempting twice to receive bids or if at a public auction no bid was received, the Board of Commissioners may by resolution adopt a procedure by which the personal property may be sold without further action of the Board of Commissioners. A procedure adopted pursuant to this authorization shall be subject to and shall conform with the requirements of any law governing the sale of property by municipal corporations generally when no bids have been received. The award of contracts shall be made only by public announcement at a regular or special meeting of the Board of Commissioners or at the public auction. Except as provided in Subsection B(4), all bids shall be accepted on the condition that payment of the purchase price in full is made immediately upon acceptance of the successful bid. The Board of Commissioners may reject any bids received if the bids are believed to be less than the fair market value of the property. In the case of a public auction, the Board of Commissioners may establish a minimum bid based on the fair market value of the personal property.
(2)
With respect to personal property, either individual items or lots
of items, that have a fair market value estimated to be less than
$1,000, the Board of Commissioners shall by resolution adopt a procedure
by which the property may be sold without further action by the Board
of Commissioners. The Board of Commissioners may arrange for the sale
of the item or items at public auction.
(3)
The bidding and advertising requirements of this section do not apply
to the following transactions:
(a)
If personal property of the Township is being traded in or exchanged
for other personal property.
(b)
The sale or lease of personal property to any one of the following:
[1]
A municipal corporation.
[2]
The federal government.
[3]
The commonwealth.
[4]
An institution district.
[5]
A school district.
[6]
A municipality authority.
[7]
A county.
[8]
A public utility.
[9]
A volunteer fire company.
[10]
A nonprofit corporation engaged in community industrial development.
[11]
A volunteer ambulance service or volunteer rescue squad located
within the Township.
[12]
A nonprofit corporation organized as a public library.
[13]
A nonprofit medical service corporation.
[14]
A nonprofit housing corporation.
[15]
Nonprofit organizations providing community service or development
activities.
[16]
A nonprofit corporation established for the preservation of
historical, architectural or aesthetical sites or artifacts.
(4)
A public auction may include an online or electronic auction sale.
During an electronic auction sale, bids shall be accepted electronically
at the time and in the manner designated in the advertisement. During
the electronic auction, each bidder shall have the capability to view
the bidder's bid rank or the high bid price. Bidders may increase
their bid prices during the electronic auction. The record of the
electronic auction shall be accessible for public inspection. The
purchase price shall be paid by the high bidder immediately or at
a reasonable time after the conclusion of the electronic auction as
determined by the Township. In the event that shipping costs are incurred,
they shall be paid by the high bidder.
(5)
Any official or employee who sells or authorizes the sale of any
Township personal property without complying with the provisions of
this section shall be subject to a surcharge in the amount of any
loss sustained by the Township by reason of such sale, as well as
any additional disciplinary action the Township deems appropriate.
(6)
When no bids are received for unserviceable or junk property, the
Board may authorize the Finance Director or other authorized Township
representative to dispose of such property in the manner most advantageous
to the Township.
A.
Fidelity bonds in the amount set by the Board shall
be approved by the Township Solicitor for form and sufficiency and
shall be with a surety company or other company authorized by law
to act as a surety and approved by the Board. The bonds shall be conditioned
upon the faithful performance and discharge of their respective duties
and for proper application and payment of all money or property for
which they are responsible by virtue of their offices or employment.
B.
Officials and employees to be bonded before September
1, 1977, are the Treasurer, the Treasurer's employees and employees
who are responsible for receipts or disbursements of funds. The Board
may require bonds for other individuals. The cost of the bonds shall
be borne by the Township. However, the Township shall not provide
a bond for the collection of county or school taxes.
It shall be the duty of the Finance Director
to cause accounts of any sinking funds and other accounts relating
to the indebtedness of the Township to be kept and to see to the proper
application and superintend the investment of moneys therein in accordance
with law. Moneys in a sinking fund may be invested only in obligations
of the commonwealth or the United States of America, in deposits in
banking institutions or in shares of building and loan associations
or Federal Savings and Loan Associations, the deposits or shares of
which are insured by the Federal Deposit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation and which deposits
or shares shall at no time exceed the maximum amount so insured. The
income derived from such investments or on any bank balances credited
to the sinking fund shall be credited and applied only to the sinking
fund.
A.
Annual audit. An audit of the financial records of
the Township shall be made annually by an independent auditor, as
provided in §§ 4.05 and 7.13 of the Charter.
B.
Appointment of independent auditor. Such independent
auditor shall be appointed annually by the Board at least 30 days
prior to the close of the fiscal year.
C.
Audit due date. The annual audit shall be filed with
the Board within 90 days of the close of the fiscal year.
