The fiscal year of the township shall be the
calendar year. However, after 1977, if not prohibited by law, the
Board may, by ordinance, adopt a different fiscal year, specifying
an orderly procedure for financial and budgetary controls in making
such transition.
The Board 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 Board, submit, as an annex to the
budget, tentative financial projections for a period of at least three
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 60 days before the end of the fiscal
year, the Manager shall prepare and submit to the Board 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 Board, 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:
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 township 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 Board 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.
Budget review. On or before 30 days prior to the end
of the fiscal year, the Board shall complete its review of the proposed
budget, make such adjustments as it deems necessary and adopt a preliminary
budget.
[Amended 2-2877 by Ord. No. 1660, approved at referendum 5-17-1977]
F.
Publication of preliminary budget; public hearing. No later than 10 days following the adoption of the preliminary budget by the Board, the Manager shall cause to be published in one or more newspapers of general circulation in the township a summary of the budget and notice of the date, time and place at which the Board shall hold a public meeting on the proposed budget, which shall take place at a regular or special meeting of the Board at least seven days after advertisement. The preliminary budget shall be available for public inspection at the Township Office, and copies, including the financial projection required in § C-703, shall be available for the public to have without charge or at a reasonable fee to be set by the Board.
[Amended 2-28-1977 by Ord. No. 1660, approved at referendum 5-17-1977]
G.
Budget adoption. Following advertising and public hearing at which interested citizens shall have the right to express their views on the budget, the Board, by a majority vote of its total membership, shall adopt a final budget with such amendments as the Board 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 Board 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 bud get.
H.
Levy of taxes. At the time of adopting the annual
budget, the Board shall simultaneously levy sufficient taxes from
authorized sources which, with other revenues and available receipts
and balances, will provide for a balanced budget.
I.
Revised budget. Notwithstanding any other provisions of this Article, when the fiscal year of the township is the calendar year, in any year following a municipal election year the Board may, within 45 days after the start of the fiscal year, revise the budget and tax levies adopted by the previous Board. The procedures for adopting a revised budget shall be in accordance with Subsections F, G and H above, with the time periods 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 Board. It is the intent of this Charter that a new Board, in the year following a municipal election, shall have the power to revise the budget and tax levies adopted by the previous Board.
J.
Budget execution. The Director of Finance 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 may at any time amend the operating budget, but
changes m appropriations, either increases or decreases, shall be
made only pursuant to an ordinance authorizing such changes. Supplemental
appropriations may be made by the Board 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 Board
shall make necessary adjustments in appropriations to maintain a balanced
budget. All unexpended 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 Board may make 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 a temporary note, which shall
constitute unfunded debt to be funded and repaid in accordance with
the Local Government Unit Debt Act (Act 182 of 1972).[1] Operating expenses shall neither by appropriated nor paid
out of loan funds except to meet genuine emergencies.
[1]
Editor's Note: See 53 P.S. § C-6780-1
et seq.
A.
At the time the Manager submits his proposed operating
budget to the Board, he shall also submit to the Board a proposed
capital program incorporating a listing of the capital projects and
the amounts required to be appropriated for each covering a period
of three 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 Board 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 Board 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 'm progress may be appropriated in the budget for the year
following.
The Board shall, in the Administrative Code,[1] provide procedures for the receipt, deposit and accounting
for all moneys due and received by the township. 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
Board, shall designate the depositories for township 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
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 general
law or this Charter, and shall include as a minimum the following
provisions:
A.
Written contracts. All contracts of the township involving
sums in excess of an amount specified by the Board by ordinance shall
be in writing. The Manager shall execute all contracts on behalf of
the township. 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 Board, as well as the Manager. Any officer authorized
to execute a written contract shall submit the form of the contract
to the Township Solicitor for approval before executing the contract.
B.
Competitive bidding. The Board 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 Board when not constrained
by uniform state law. Competitive bidding shall not be required for
the following:
(1)
Labor or services rendered by any township officer
or employee.
(2)
Contracts for labor, material, supplies or services
aggregating less than the amount specified by the Board, 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.
(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 township
shall be authorized on behalf of the township 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 transactions
would, in the exercise of reasonable discretion and prudence, be considered
as one transaction amounting to more than the amount specified by
the Board.
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 township moneys 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 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 his direction 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 township in terms of dollars and other
appropriate units of measurement in accordance with the form and procedures
prescribed by the Board 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 Board at its regular
meetings and made available to the public.
C.
Provide for the preservation of official financial
records, which shall be kept at the Township Office and shall be available
for public inspection during regular office hours.
The Board shall provide for an independent 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 personnel. The Board 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 township, 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 township 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.
The Board 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
Township Solicitor for form and sufficiency. The premium for such
bonding shall be paid for by the township.
The township shall be limited in sources and
rates of taxation by general 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, except that taxes levied for a special purpose other than
for debt service need not be accounted for in special funds.
[1]
Editor's Note: A proposed amendment to this
section to increase the permissible limit on taxes for fire protection
to five mills was adopted by the Board of Commissioners 3-13-1978
by Ord. No. 1699. That amendment was rejected by the voters of the
Township of Haverford at a referendum held 5-16-1978.
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),[1] as amended, or other laws.of the General Assembly of the
Commonwealth of Pennsylvania.
[1]
Editor's Note: See 53 P.S. § C-6780-1
et seq.
