Town of Barnstable, MA PART VI Financial Procedures

Section 6-1 Annual Budget Policy.

The president of the town council shall call a joint meeting of the town council and school committee prior to the commencement of the budget process to review the financial condition of the town, revenue and expenditure forecasts and other relevant information in order to develop a coordinated budget. The town manager and superintendent of schools shall be required to develop an annual policy agreement on the allocation of the projected revenue between the general government operations and the school department operations. Said agreement shall be subject to review of the school committee and the town council.

Section 6-2 Submission of Budget; Budget Message.

Within the period prescribed by the laws of the Commonwealth, the town manager shall submit to the town council a proposed operating budget for all town agencies, which shall include the school budget as adopted by the school committee, for the ensuing fiscal year with an accompanying budget message and supporting documents. The budget message submitted by the town manager shall explain the budget in fiscal terms and in terms of work programs for all town agencies. It shall outline the proposed fiscal policies of the town for the ensuing fiscal year; describe important features of the proposed budget and indicate any major variations from the current budget, fiscal policies, expenditures and revenues together with reasons for such change. The proposed budget shall provide a complete fiscal plan of all town funds and activities and shall be in the form the town manager deems desirable.

The budget as adopted by the school committee shall be submitted to the town manager at least thirty days prior to the submission of the proposed budget to the town council.

Section 6-3 Action of the Budget.

(a) Public Hearing. The town council shall publish in a newspaper of general circulation in the town a summary of the proposed operating budget as submitted by the town manager by a notice stating: (1) the times and places where copies of the entire proposed budget are available for inspection by the public, and (2) the date, time and place not less than fourteen days after such publication, when a public hearing on said proposed budget will be held by the town council. For the purpose of this section the summary of the proposed operating budget that is required to be published shall contain proposed appropriations, funding sources and any narrative summary deemed necessary by the town council.

(b) Adoption of the Budget. The town council shall adopt the budget, with or without amendments, within forty-five days following the date the budget is filed with the clerk of the council. In amending the budget, the town council may delete or decrease any programs or amounts except expenditures required by law or for debt service, but except on the recommendation of the town manager, the town council shall not increase any item in or the total of the proposed budget, unless otherwise authorized by the laws of the Commonwealth.

If the town council fails to take action with respect to any item in the budget within forty-five days after receipt of the budget, such amount shall, without any action by the town council become a part of the appropriations for the year, and be available for the purposes specified.

Section 6-4 Supplementary Budgets and Appropriations.

Whenever the town manager shall submit to the town council a request for an appropriation of any sum of money, whether as a supplement to the annual operating budget or for an item or items not included therein, the town council shall not act upon such request until it has (a) given notice by publication in a local newspaper of the request, and (b) held a public hearing concerning such request. The publication and the public hearing shall be in conformity with the provisions of section 6-3(a) concerning the proposed annual operating budget.

Section 6-5 Capital Improvements Plan.

(a) Preparation. The town manager shall, in conjunction with any committee established for such purpose, annually submit a capital improvement program to the town council at least thirty days prior to the date for submission of the operating budget, unless some other time is provided by ordinance.

(b) Contents. The capital improvement plan shall include: (1) a clear summary of its contents; (2) an itemization of all capital improvements, including those of the school department, proposed to be undertaken during the next five fiscal years with supporting data; (3) cost estimates, method of financing, and recommended time schedules; and, (4) the estimated annual cost of operating and maintaining the facilities included.

(c) Public Hearing. The town council shall publish in a newspaper of general circulation in the town a summary of the capital improvement plan and a notice stating: (1) the times and places where entire copies of the capital improvement plan are available for inspection by the public; and, (2) the date, time and place not less than fourteen days after such publication, when a public hearing on said plan will be held by the town council.

(d) Adoption. At any time after the public hearing but before the first day of the last month of the current fiscal year, the town council shall by resolution adopt the capital improvement plan with or without amendment, provided that each amendment must be voted separately and that any increase in the capital improvement plan as submitted must clearly identify the method of financing proposed to accomplish this increase.

Section 6-6 Long Term Financial Forecast.

[Amended 11-7-2017]

The town manager shall annually prepare a 5 year financial forecast of town revenue, expenditures and the general financial condition of the town. The forecast shall include, but not be limited to, an identification of factors which will impact on the financial condition of the town, revenue and expenditure trends; potential sources of new or expanded revenues and any long or short term actions which may be taken that will enhance the financial condition of the town. The forecast shall be submitted to the town council and shall be available to the public for inspection.

Section 6-7 Annual Audit.

The town council shall provide for an annual audit of the books and accounts of the town to be made by a certified public accountant, or firm of accountants, who have no personal interest, direct or indirect, in fiscal affairs of the town government or any of its offices.

Section 6-8 Financial Management Standards.

The town council may by ordinance establish reasonable standards relating to the management of financial systems and practices. Any standards adopted shall conform to modern concepts of financial management.