The fiscal year of the township shall be the
calendar year. However, after 1978, if not prohibited by law, the
Board may, by ordinance, adopt a different fiscal year, specifying
an orderly procedure for fiscal and budgetary controls in making such
a transition.
The Board shall have responsibility for establishing
financial policies for the township, for developing and approving
the budget and for levying taxes. The Board shall adopt, in the Administrative
Code, a uniform classification of accounts to be used and followed
in all financial plans, programs, budgets, financial records and reports.[1] The budget for each fiscal year shall be balanced as provided
in this Article. The Manager shall have overall responsibility for
the administration of township finances. Under the supervision of
the Manager, the Finance Director shall administer the township finances
in accordance with the provisions of this Charter, the Administrative
Code, ordinance and law.
[Amended 1-7-2013 by Ord. No. 2012-22[1]]
At one or more regular or special meetings of
the Board, held as provided for below, the Manager and department
heads shall submit and present to the Board a proposed comprehensive
budget for the ensuing fiscal year, which shall be comprised of a
proposed operating budget and a proposed 3 year capital program. The
comprehensive budget and supporting documentation will be posted on
the Township's website at least 5 days in advance of the budget meeting
as described in § 7.06.C. of this Article.
[1]
Editor’s Note: This ordinance was subject to referendum
and was approved by a majority of the qualified voters 5-21-2013.
The presentation of the proposed budget shall
be accompanied by a budget message from the Manager. The Manager's
message shall explain the proposed budget both in terms of revenues
and expenditures as well as programs, projects and services. It shall
outline the proposed financial policies of the township for the ensuing
fiscal year; describe the important features of the budget; indicate
any major changes from the current year in financial policies, expenditures
and revenues together with the reasons for such changes; and summarize
the township's debt position. In the budget message, the Manager shall
also submit, for long-range planning and advisory purposes only, as
a supplement to the proposed capital program and proposed budget,
tentative projections of revenues and expenditures for a period of
at least three (3) years. The projections shall include programs,
projects and services, as well as a schedule for the amortization
of debt, stated in general categories in accordance with the provisions
of the Administrative Code.[1] The projections shall also include estimates for unfunded
obligations and contingent liabilities not set forth in the capital
program.
[Amended 1-7-2013 by Ord. No. 2012-22[1]]
The proposed, recommended, and adopted comprehensive budgets, which as provided in § 7.03 are each comprised of an operating budget and a three-year capital program, shall provide a complete financial plan of all Township funds and activities for the ensuing fiscal year. The proposed, recommended, and adopted comprehensive budgets shall follow Generally Accepted Accounting Principles (GAAP) and shall be in the form prescribed by this Charter, the Administrative Code,[2] and by law. They shall begin with a clear general summary
of their contents; shall show in detail all estimated income, indicating
any proposed tax levy, and all proposed expenditures, including debt
service, for the ensuing fiscal year; and shall be so arranged as
to show comparative figures for actual and estimated income and expenditures
of the preceding fiscal year.
[Amended 1-7-2013 by Ord. No. 2012-22[1]]
A.
Time line.
The time line for comprehensive budget approval is as follows:
(1)
No
later than 105 days before the end of the fiscal year: Submission
of the Manager's proposed comprehensive budget.
(2)
No
later than 60 days before the end of the fiscal year: Board Approval
of the recommended comprehensive budget.
(3)
No
later than 20 days before the end of the fiscal year: Board Adoption
of the final comprehensive budget.
B.
Approval
of the recommended comprehensive budget. At least 60 days before the
end of the fiscal year, the Board shall complete its review of the
Manager's proposed comprehensive budget, make such adjustments as
the Board deems necessary, and in a publicly noticed Board meeting,
approve by resolution a recommended comprehensive budget, copies of
which shall be made available promptly thereafter to the public.
C.
Public
Notice and Public Hearing. No later than 5 days following the approval
of the recommended comprehensive budget by the Board, the Board shall
provide public notice of the date, time, and place at which the Board
shall hold a public hearing on the recommended comprehensive budget.
This notice shall include a summary of the recommended comprehensive
budget. The public hearing shall take place at any regular or special
meeting of the Board at least 7 days after advertisement and at least
20 days prior to the end of the fiscal year.
D.
Levy of
Taxes. At the time of enacting the final budget, the Board shall,
by ordinance, levy sufficient taxes allowed by law which, with other
revenues and available receipts and balances, shall provide for a
balanced budget.
[1]
Editor’s Note: This ordinance was subject to referendum
and was approved by a majority of the qualified voters 5-21-2013.
[Amended 1-7-2013 by Ord. No. 2012-22[1]]
Within 15 days after the end of each fiscal quarter the Township
Manager shall present to Board at a public meeting a report on the
unfunded liabilities, incurred operating and capital expenditures,
revenues and cash position, along with a comparison to the comprehensive
budget adopted for the same period. The Township Manager shall also
present a budgetary forecast for the remaining fiscal year.
[1]
Editor’s Note: This ordinance was subject to referendum
and was approved by a majority of the qualified voters 5-21-2013.
A.
Budget revision by new Board. Notwithstanding any
other provisions of this Charter, in any year following a municipal
election, if the fiscal year is on a calendar-year basis, the newly
elected Board may, within forty-five (45) days after the start of
the fiscal year, enact a revised budget and levy a different tax in
place of the budget and tax levy enacted by the previous Board. The
Board shall make such revisions as it deems necessary in the budget
of the previous Board and shall adopt, by resolution, a preliminary
revised budget at a Board meeting. The procedures for adopting a final
revised budget shall be in accordance with § 7.07A through
D. Ordinances enacting a revised budget or levying taxes shall be
effective as of the start of the fiscal year and shall rescind and
replace the budget and tax ordinances of the previous Board.
B.
Supplemental appropriations. If during the fiscal
year the Manager certifies to the Board that there are available for
appropriation revenues in excess of those estimated in the budget,
the Board may make, by resolution, supplemental appropriations for
operating expenses or for the purpose of reducing indebtedness up
to the amount of such excess.
C.
Emergency appropriations. In the event of an emergency,
the Board may make supplemental appropriations to meet the emergency.
To the extent that there are no available unappropriated revenues
to meet the emergency, the Board may authorize the issuance of temporary
notes which shall constitute unfunded debt to be funded and repaid
in accordance with the Local Government Unit Debt Act[1] or other law. It is the intent of this Charter that the
proceeds of such temporary notes shall neither be appropriated nor
paid out except to meet emergencies.
[1]
Editor's Note: See 53 P.S. § 6780-1
et seq.
D.
Reduction of appropriations. If at any time during
the fiscal year it appears probable to the Manager that the revenues
available will be insufficient to meet the amount appropriated, the
Manager shall report to the Board without delay, indicating the estimate
amount of the deficit, any remedial action taken and recommendations
as to any other steps to be taken. The Board shall then take such
further action as it deems necessary to prevent or minimize any deficit,
and for that purpose, it may, by resolution, reduce one (1) or more
appropriations.
E.
Transfer of appropriations. At any time during the
fiscal year, the Manager, with the approval of the Board, may transfer
part or all of any unencumbered appropriation balance among programs
within a department or office, and, upon written request by the Manager,
the Board may, by ordinance, transfer part or all of any unencumbered
appropriation balance from one department or office to another.
F.
Limitations: effective date. No appropriation for
existing debt service may be reduced or transferred, and no appropriation
may be reduced below any amount required by law to be appropriated
or by more than the amount of the unencumbered balance thereof. The
supplemental and emergency appropriations and reduction or transfer
of appropriations authorized by this section may be made effective
immediately.
Every appropriation shall lapse at the close
of the fiscal year to the extent that it has not been expended or
encumbered.
A.
Receipts. The Board shall provide in the Administrative
Code, consistent with the provisions of this Charter, procedures for
the receipt, deposit and accounting by the Township Treasurer for
all moneys due and received by the township.[1]
B.
Expenditures. The Finance Director shall cause the
appropriations voted by the Board to be entered in the accounting
records of the township and shall approve no contract or expenditure
which would exceed the unencumbered balance of appropriations in any
account. The Board shall provide in the Administrative Code for a
uniform procedure for the execution and control of all township purchases,
including those involving sums less than three thousand dollars ($3,000.).[2] The Finance Director shall authorize disbursement of township
money only after determining that all goods and services contracted
for have actually been received or performed. The Board shall provide
in the Administrative Code for procedures for the signing and countersigning
of all checks, drafts or other orders of payment[3] by two (2) persons, one (1) of whom shall be the Treasurer
or such other employee of the Treasurer as the Treasurer may designate,
subject to the approval of the Board.
[Amended 1-7-2013 by Ord. No. 2012-23[1]]
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 authorizes
knowingly 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 Board
shall provide in the Administrative Code the procedures for letting
contracts which shall not be inconsistent with this Charter or law.[2]
A.
Written
contracts. All contracts of the township shall be in writing, either
in the form of a purchase order or more formal document. For sums
in excess of $3,000, the document shall bear signatures of the Township
and the vendor or contractor.
B.
Contracts
requiring approval by ordinance. Authorization for contracts for the
purchase, sale, lease or use of real estate or for the construction
of public capital improvements shall be given by ordinance, and such
contracts shall be signed by the President of the Board as well as
the Manager. Any official authorized to execute a written contract
shall submit a form of contract to the Township Solicitor for approval
before execution. All contracts requiring approval by Ordinance shall
be submitted to the Township Solicitor for legal review prior to final
execution.
C.
Expenditures
not exceeding $7,500. The Manager may, within the amounts and items
appropriated by the Board, but otherwise without specific Board approval
for such purchase or contract, make purchases and enter into contracts
on behalf of the Township involving expenditures not in excess of
$7,500.
D.
Expenditures
exceeding $7,500. All expenditures above $7,500 shall require Board
of Commissioners' specific approval, subject to the following:
(1)
Emergency
expenditures. Emergency expenditures may be made without Board of
Commissioners' prior approval when obtaining the Board's approval
would be impracticable and provided that such emergency expenditures
are promptly thereafter presented to the Board of Commissioners for
its approval.
(2)
Expenditures
of $25,000 and above. Expenditures of $25,000 and above shall only
be authorized by the Board of Commissioners pursuant to a contract
made with the lowest responsible and responsive bidder after public
advertising and receipt of bids in the manner provided.
E.
No-bid
contracts. Regardless of the amount of same, the following expenditures
may be authorized by the Board of Commissioners without being subject
to the advertisement and public bidding procedures in the Charter:
F.
Piecemeal
evasion prohibited. No person shall evade the provisions of this section
of the Charter by purchasing or contracting for materials, supplies
or services piecemeal, when the transactions would, in the exercise
of reasonable discretion and prudence, be considered as one transaction
amounting to more than $7,500.
G.
Limit
on terms. The terms of contracts for the purchase of materials, supplies
and services shall not exceed 3 years. The term for contracts, leases
or service agreements for capital equipment may be extended by the
Board to a period longer than 3 years, but in no event longer than
the expected usable life of such capital equipment.
H.
Future
adjustment of dollar limitations. The Board may increase by ordinance
the dollar limitations contained in this Section to reflect inflation.
Such increases must be approved by an affirmative vote of 2/3 of the
Commissioners.
A record of all township financial transactions
shall be maintained by the Finance Director in accordance with the
forms and procedures prescribed in the Administrative Code.[1]The Finance Director shall prepare financial reports, at
least monthly and at such other times as the Board shall direct, which
shall be submitted to the Manager and the Board. Such reports shall
be in such form as to present fairly the financial condition of the
township, including receipts, disbursements and account balances for
the month and year-to-date, compared with the budget allocation by
month. In addition, the Finance Director shall prepare an annual inventory
of capital assets. Special reports shall be prepared as required by
the Manager or the Board. All financial records shall be maintained
in the Township Building and shall be available for public inspection
at reasonable times within regular office hours.
The Board shall provide for an independent annual
audit of township receipts, expenditures, accounts and reports by
a Pennsylvania certified public accountant or a certified public accounting
firm, experienced in municipal finance and having no personal interest,
direct or indirect, in the fiscal affairs of the township or any of
its elected or appointed officials. The Board may provide for more
frequent audits at its discretion. The Board shall review the work
of such auditor annually and, at intervals not to exceed three (3)
years, shall obtain proposals for future audits from at least two
(2) other qualified firms for comparison with the incumbent auditor's
proposal. The results of the annual audit and financial statements
of the township shall be submitted to the Board and Manager, and the
audited financial statements shall be included in the township's annual
report. Any report of the independent auditor containing recommendations
concerning financial management or fiscal controls shall be presented
to the Board and made available to the public upon request. The financial
statements shall include a balance sheet showing all current assets
and liabilities.
The Board shall provide in the Administrative
Code for the bonding of the Treasurer, the Treasurer's employees and
township employees who are responsible for receipts, disbursements,
materials or supplies.[1] All such bonding shall be approved by the Township Solicitor
for form and sufficiency in accordance with amounts fixed by the Board.
The premium for such bonding shall be paid by the township.
The township shall be limited in sources and
rates of taxation by laws applicable to municipalities governed by
a home rule charter. Until such time as the General Assembly shall
provide tax rate limits which apply to a municipality governed by
a home rule charter, the township shall continue to be limited to
the rates which apply to Pennsylvania townships of the first class
generally. Proposed tax increases in excess of this limit shall require
approval of the registered electors of the township by referendum.
The borrowing of money by the township shall continue to be limited
in amounts and governed by procedures in the Local Government Unit
Debt Act (Act 185 of 1972), as amended,[1] or acts of the General Assembly of the Commonwealth of
Pennsylvania.
[1]
Editor's Note: See 53 P.S. § 6780-1
et seq.
