The fiscal year of the city shall be the calendar year. However, after 1980, if not prohibited by law, the Council may, by ordinance, adopt a different fiscal year, specifying an orderly procedure for financial and budgetary controls in making such transition.
The Council shall adopt in the Administrative Code a uniform classification of accounts and codes to be used and followed in all financial plans, budgets and financial reports.
The Manager shall, at the time of submitting the proposed annual budgets to the Council, submit as an annex to the budget tentative financial projections for a period of at least four additional years, such projections beyond the year budgeted to be advisory only for the purpose of long-range planning. The projections shall deal with operations, capital programs and a schedule for the amortization of all existing debt through a time period covering the latest final maturity of any issue and the amortization schedule for any proposed new debt to finance capital improvements, showing both separately and inclusively for each item of debt the payments for principal and interest.
At least 45 days before the end of the fiscal year, the Manager shall prepare and submit to the Council a proposed operating budget for the ensuing fiscal year. The following procedures shall govern the presentation, adoption and execution of the operating budget:
A. 
Budget form. The operating budget shall be submitted in the form required by the Council, which shall include, in addition to the major classifications of appropriations by which expenditures are to be allocated and controlled, a detailed analysis of the various items of revenue and expense. All appropriations shall be made in lump sum amounts and according to the following classes of expenditure for each office, department, major operating unit, board or commission:
(1) 
Personal services.
(2) 
Contractual services.
(3) 
Materials, supplies and equipment.
(4) 
Debt service.
(5) 
Capital expenditures.
(6) 
Such additional classes as the Board may prescribe.
B. 
Budget content. The operating budget shall show, individually for each fund and in total, netting out interfund transfers, the anticipated revenues and expenditures of the city government. In addition to anticipated revenues and expenditures, the budget document shall include for each item the estimated revenues and expenditures of the fiscal year currently ending and the actual receipts and expenditures of the last completed year. The budget shall also show the estimated balance of each fund at the close of the fiscal year currently ending and any surplus or deficit to be included in financing the proposed budget.
C. 
Budget message. The Manager shall include with the proposed budget a statement explaining the budget both in fiscal terms and in terms of work to be done, outlining the proposed fiscal policies for the ensuing fiscal year, any changes in policies and programs and reasons for changes which affect the level of revenues and expenditures.
D. 
Balanced budget. The budget proposed by the Manager and the budget subsequently adopted by the Council shall be balanced so that appropriations shall not exceed the estimated revenues and available surplus. In making revenue estimates, the Manager shall show the amounts anticipated from existing taxes and service charges at existing rates and, separately, the increase or decrease to result from any proposed changes in rates.
E. 
Council review. On or before 30 days prior to the end of the fiscal year, the Council shall complete its review of the proposed budget, make such adjustments as it deems necessary and adopt a preliminary budget.
F. 
Advertising and public hearing. No later than 10 days following the adoption of the preliminary budget by the Council, the Manager shall cause to be published in one or more newspapers of general circulation in the city a summary of the budget and notice of the date, time and place at which the Council shall hold a public meeting on the proposed budget, which shall take place at any regular or special meeting of the Council at least seven days after advertisement and at least 20 days prior to the end of the fiscal year. The preliminary budget shall be available for public inspection at City Hall, and copies, including the financial projections required by § 2-603, shall be available for the public to have without charge or at a reasonable fee to be set by the Council.
G. 
Budget adoption. Following advertising and public hearing, at which interested citizens shall have the right to express their views on the budget, the Council, by a majority vote of its total membership, shall adopt a final budget with such amendments as the Council considers advisable. The budget shall be adopted by ordinance, which shall be effective as of the start of the fiscal year. The provisions of Article III of this Charter shall not apply to ordinances adopting and amending proposed budgets. Should the Council, for any reason, fail to adopt a budget before the start of the fiscal year, the appropriations of the preceding year, prorated on a month-to-month basis, shall be considered to be adopted temporarily pending adoption of a final budget.
H. 
Levy of taxes. At the time of adopting the annual budget, the Council shall simultaneously, by ordinance, levy sufficient taxes from authorized sources which, with other revenues and available receipts and balance, will provide for a balanced budget.
I. 
Revised budget. Notwithstanding any other provisions of this Article, when the fiscal year of the city is the calendar year, in any year following a municipal election year, the Council may, within 45 days after the start of the fiscal year, revise the budget and tax levies adopted by the previous Council. The procedures for adopting a revised budget shall be in accordance with Subsection F, G and H above, with the time period adjusted to 45 days after the start of the fiscal year. Ordinances adopting a revised budget shall be effective as of the start of the fiscal year and shall rescind and replace the budget ordinance of the previous Council. It is the intent of this Charter that a new Council, in the year following a municipal election, shall have the power to revise budget and tax levies adopted by the previous Council.
J. 
Budget execution. The Director of Finance shall cause the appropriations voted by the Council to be entered in the accounting records of the city and shall approve no contract or expenditure which would exceed the unencumbered balance of appropriations in any account. The Council may at any time amend the operating budget, but changes in appropriations, either increases or decreases, shall be made only pursuant to an ordinance authorizing such changes. Supplemental appropriations may be made by the Council in the event that revenues are found and certified by the Manager to exceed estimates in the budget. If revenues are found and certified by the Manager to fall short of estimates in the budget, the Manager shall recommend reductions in appropriations to offset the deficiency in revenues, and the Council shall make necessary adjustments in appropriations to maintain a balanced budget. All appropriations shall lapse at the end of the fiscal year.
K. 
Emergency appropriations. In the event of a genuine emergency unanticipated at the time the operating budget was adopted, the Council may make appropriations to meet the emergency. To the extent that there are no available unappropriated revenues to meet the emergency, the Council may authorize the issuance of a temporary note, which shall constitute unfunded debt to be funded and repair in accordance with the Local Government Unit Debt Act (Act 182 of 1972).[1] Operating expenses shall neither be appropriated nor paid out of loan funds except to meet genuine emergencies.
[1]
Editor's Note: See 53 P.S. § 6780-1 et seq.
A. 
At or before the time of submitting the proposed operating budget to the Council, the Manager shall also submit to the Council a proposed capital program incorporating a listing of the capital projects and the amounts required to be appropriated for each, covering a period of five years or more, the first year of which shall be in detail and constitute the capital budget for the next fiscal year. The capital program shall set forth all proposed capital improvements, identified by project, the year at which the capital program is to be financed, the effect of any proposed capital expenditures on future operating expenses and the effect of any proposed new indebtedness on the amortization schedule of existing debt and debt limits.
B. 
The capital program and the capital budget shall be adopted by the Council only after advertisement and public hearing as provided for the adoption of the operating budget. The capital budget may be financed from appropriations of current revenues or moneys borrowed as authorized by law or by this Charter. The Director of Finance shall control expenditures in the capital budget in the same manner as provided for the operating budget. The Council may amend the capital budget at any time but before doing so must amend the capital program.
C. 
All appropriations for the capital budget shall lapse at the end of the fiscal year, but sufficient amounts to complete projects in progress may be appropriated in the budget for the year following.
The Council shall, in the Administrative Code, provide procedures for the receipt, deposit and accounting for all moneys due and received by the city. Such procedures shall be assigned to the Director of Finance or employees under the supervision of the Director of Finance. The Manager, with the approval of the Council, shall designate the depositories for city receipts.
The Manager may make contracts for all lawful purposes, subject to general law or this Charter. No contract shall be made or obligation incurred unless the Director of Finance shall certify that there is a sufficient unencumbered balance in an appropriation and that sufficient moneys therefrom are or will be available to cover the claim or meet the obligation when it becomes due and payable. Any officer authorizing any contract to be made in violation of this provision shall be subject to removal from office and liable to the city or its surety for any loss incurred as a result of such action. The Council shall provide in the Administrative Code the procedures for letting contracts, which shall not be inconsistent with general law or this Charter and shall include as a minimum the following provisions:
A. 
Written contracts. All contracts of the city involving sums in excess of an amount specified by the Council by ordinance shall be in writing. The Manager shall execute all contracts on behalf of the city. Authorization for contracts for 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 Council as well as the Manager. Any officer authorized to execute a written contract shall submit the form of the contract to the City Solicitor for approval before executing the contract.
B. 
Competitive bidding. The Council shall, by ordinance, establish a procedure for competitive bidding to include definitions of amounts, publication and notice requirements, deposit and bond requirements, conditions, terms, rules, regulations, waiver and exceptions, as it shall from time to time deem advisable and in accordance with general law and this Charter. Both single-contract and separate-contract procedures may be used at the discretion of the Council when not constrained by uniform state law. Competitive bidding shall not be required for:
(1) 
Labor or services rendered by any city officer or employee;
(2) 
Contracts for labor, material, supplies or services aggregating less than the amount specified by the Council, by ordinance, for the item in the year supplied;
(3) 
Contracts relating to the acquisition or use of real property;
(4) 
Contracts for professional or unique services or supplies;
(5) 
Contracts for insurance and surety company bonds, except that the use of competitive bidding for such items shall be encouraged where practicable;
(6) 
Contracts for emergency repairs; and
(7) 
Contracts with other governmental entities, authorities, agencies or political subdivisions.
C. 
Lowest bidder. Except as otherwise provided in this Charter, no contract for materials, supplies, labor, franchise or other valuable consideration, to be furnished to or by the city, shall be authorized on behalf of the city except with the lowest responsible bidder after competitive bidding.
D. 
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, which transaction would, in the exercise of reasonable discretion and prudence, be considered as one transaction amounting to more than the amount specified by the Council.
E. 
Limit on terms. The terms of contracts for the purchase of materials and supplies shall not exceed two years.
The Director of Finance shall authorize disbursement of city moneys only after determining that all goods and services contracted for have actually been received or performed. The Council shall provide in the Administrative Code for the procedures for the signing and countersigning of all checks, drafts or other orders of payment by two persons, one of whom shall be the Director of Finance or other employee under the direction of the Director of Finance as shall be prescribed in the Administrative Code.
The Director of Finance shall:
A. 
Provide for the recording of all financial transactions and related activities of the city in terms of dollars and other appropriate units of measurement, in accordance with the form and procedures prescribed by Council in the Administrative Code and as shall be directed by the Manager, in order that the required reports and analysis may be produced for the proper management and control of such activities.
B. 
Prepare periodic financial reports, at least monthly, and at such other times as the Manager may direct, and at the end of each fiscal year prepare an annual financial report. The monthly reports to the Manager shall be submitted to the Council at its regular meetings and made available to the public.
C. 
Provide for the preservation of official financial records, which shall be kept at City Hall and shall be available for public inspection during regular office hours.
The Council shall provide for an annual independent audit of city receipts, expenditures, accounts and reports by a Pennsylvania certified public accountant or a certified public accounting firm, experienced in municipal finance, having no personal interest, direct or indirect, in the fiscal affairs of the city or any of its elected or appointed personnel. The Council may provide for more frequent audits at its discretion. The results of the annual audit and a financial statement of the fiscal affairs of the city, with the results of the independent auditor's survey of internal control and any recommendations thereon, shall be included in the annual report of the Manager. A summary of the annual audit of the independent auditor, including any recommendations made with respect to the survey of internal control, shall be published at least once in one or more newspapers of general circulation in the city within 60 days after the close of the fiscal year. The annual audit shall be conducted in accordance with generally accepted auditing standards. The financial report shall be prepared in accordance with generally accepted accounting principles and shall include a balance sheet for each fund and on a consolidated-fund basis, reflecting all current assets, current liabilities and fund balances.
The Council shall provide in the Administrative Code for the bonding of all officers and employees who are responsible for the handling and/or authorization of receipts, disbursements, materials and supplies. All such bonding shall be approved by the City Solicitor for form and sufficiency. The premium for such bonding shall be paid for by the city.
[Amended 1-26-1981 by Ord. No. 619-81]
The Home Rule Charter shall not give any power or authority to the City Council contrary to or in limitation or enlargement of powers granted by Acts of the General Assembly to third-class cities generally with respect to the fixing of the rates of property taxes.
The borrowing of money by the city 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 other laws of the General Assembly of the Commonwealth of Pennsylvania.
[1]
Editor's Note: 53 P.S. § 6780-1 et seq.