The fiscal year of the Borough shall be the
calendar year. However, if not prohibited by General 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 to be used and followed
in all financial plans, budgets, and financial reports.
The Manager shall, at the time of submitting
the proposed budget to Council, submit as an annex to the budget,
tentative financial projections for a period of at least five (5)
years, such projections beyond the year budgeted to be advisory only
for the purpose of long range planning. The projections shall include:
A.
Comparative figures for actual and estimated revenues
and expenditures for the current fiscal year and actual revenues and
actual expenditures for the preceding fiscal year.
B.
The proposed operating budget for the next fiscal
year, in such form as Council shall prescribe.
C.
The forecast of revenue and expenditures for a period
of at least five (5) years, individually stated, to be advisory only
for the purpose of long-range planning. The information to be provided
shall be stated in general categories only.
D.
A capital program as further set forth in Section
805 hereby, including the proposed method of financing each capital
project or purchase, but in no case less than the next five (5) fiscal
years; a schedule for the amortization of all existing capital projects;
and proposed funding for any proposed new capital projects to finance
capital expenditures, showing both separately and inclusively for
each capital item the payments for principal and interest.
At least ninety (90) days before the end of
the fiscal year, the Manager shall prepare and submit to Council a
proposed operating budget for the ensuing fiscal year. The operating
budget shall be the operating plan of revenues and expenditures for
the 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 Council, which shall include, in addition
to the major classifications as set forth for appropriations by the
Pennsylvania Department of Community Affairs by which expenditures
are to be allocated and controlled, a detailed analysis of the various
items of revenue and expense.
B.
Budget Message. The Manager and, in the case of the
Police Department, the Mayor, shall include with the proposed budget
a statement explaining the budget (including the annex of financial
projections) both in fiscal terms and in terms of work to be done,
outlining the proposed fiscal policies of the ensuing fiscal year,
any changes in policies or programs, and reasons for changes that
affect the level of revenues and expenditures.
C.
Balanced Budget. The budget adopted by 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 the rates.
D.
Borough Council Review. On or before forty-five (45)
days prior to the end of the fiscal year, Council shall complete its
review of the proposed budget, make such adjustments as it deems necessary.
and adopt a preliminary budget.
E.
Advertising and Public Hearing. No later than fourteen
(14) days following the adoption of the preliminary budget by Council,
the Manager shall cause to be published in one or more newspapers
of general circulation in the Borough, summaries of the budget and
the annex of financial projections and notice of the date, time and
place at which Council shall hold a public meeting on the proposed
budget, which shall take place at any regular or special meeting of
Council at least seven (7) days after advertisement. The preliminary
budget and annex of financial projections shall be available for public
inspection at the office of the Manager.
F.
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 no later than the last
day of the fiscal year, to be effective on the first day of the next
fiscal year.
G.
Levy of Taxes.
(1)
Upon completion of the annual budget and the adoption
thereof by Council, it shall be the duty of Council to adopt an Ordinance
Levying sufficient taxes from authorized sources that, with other
revenues and available receipts and balances, shall provide for a
balanced budget.
(2)
The Borough of West Chester shall have the same power
to levy and collect taxes as a borough has, or shall in the future
have, under the Borough Code, the Local Tax Enabling Act, or under
any existing or future act enabling a borough to levy taxes.
(3)
The Borough shall use the assessment valuations of
real property and assessment ratios fixed by the County of Chester.
H.
Revised Budget. Notwithstanding any other provisions of this Article, when the fiscal year of the Borough is the calendar year, in any year following a municipal election year, Council may, within forty-five (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 subsections E, F, and G above, with the time periods adjusted to forty-five (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 the budget and tax levies adopted by the previous Council.
I.
Budget Execution. The Manager shall cause the appropriations
voted by Borough Council to be entered in the accounting records of
the Borough, and shall approve no contract or expenditure that would
exceed the unencumbered balance of appropriations in any account.
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 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
off set the deficiency in revenues, and the Council shall make necessary
adjustments in the appropriations to maintain a balanced budget. All
unexpended appropriations shall lapse at the end of the fiscal year.
J.
Emergency Appropriations. In the event of a clear
and present emergency, unanticipated at the time the operating budget
was adopted, Council may make appropriations to meet the emergency
and the Council may authorize the issuance of temporary notes that
shall constitute unfunded debt to be funded and repaid in accordance
with the Local Government Unit Debt Act (Act 185), as amended. Operating
expenses shall neither be appropriated nor paid out of loan funds
except to meet clear and present emergencies.
A.
At the time the Manager submits the proposed operating
budget to Council, he or she shall also submit to 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 not less than five (5) years, the first year of which shall be
in detail and constitute the capital budget for the next fiscal year.
The capital program shall be a projection of construction or acquisition
of capital assets and the means of their financing. The capital program
shall set forth all proposed capital improvements, identified by project;
the year at which acquisition and construction is to be scheduled;
the means by 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
of existing debt and debt limits.
B.
The Borough will coordinate development of the capital
improvement budget with development of the operating budget. Future
operating costs associated with new capital improvements will be projected
and included in operating budget forecasts.
C.
The Borough will maintain all its assets at a level
adequate to protect the Borough's capital investment and to minimize
future maintenance and replacement costs.
D.
The Borough Manager will project the Borough's equipment
replacement and maintenance needs for not less than five years and
will update this projection each year. From this projection a maintenance
and replacement schedule will be developed and followed.
E.
The Borough Manager will identify the estimated costs
and potential funding sources for each capital project proposal before
it is submitted to Council for approval.
F.
The Borough Manager will determine the least costly
financing method for all new projects.
G.
The capital program and the capital budget shall be
adopted by Borough Council only after advertisement and public hearing
in the same manner as provided for in the adoption of the operating
budget. The capital budget may be financed from appropriations of
current revenues or monies borrowed as authorized by applicable General
Law or by this Charter. The Manager shall control expenditures in
the capital budget in the same manner as provided for the operating
budget. Borough Council may amend the capital budget at any time,
but before doing so it must amend the capital program.
H.
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 following
year.
A.
The Borough may make contracts for lawful purposes,
subject to applicable General Law or this Charter. No contract shall
be made or obligation incurred unless the Manager shall certify that
there is a sufficient unencumbered balance in an appropriation and
that sufficient monies therefrom are or will be available to cover
the claim or meet the obligation when it becomes due and payable.
Any contract made or obligation incurred in violation of this provision
shall be void and any officer authorizing any contract to be made
in violation of this provision shall be subject to removal from office
and liable to the Borough or its surety for any loss incurred as a
result of such action. Borough Council shall specify in the Administrative
Code procedures for letting contracts which shall not be inconsistent
with applicable General Law or this Charter.
B.
All contracts of the Borough involving sums in excess
of an amount specified by Borough Council in the Administrative Code
or other ordinance shall be in writing. The Manager shall execute
all contracts on behalf of the Borough. Authorization for contracts
for the purchase, sale, lease, 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 Borough Council as well
as the Manager. Any officer authorized to execute a written contract
shall submit the form of contract to the Borough Solicitor for approval
before executing the contract.
C.
Borough Council shall, by the Administrative Code,
establish the requirements of and the procedure for competitive bidding
to include as a minimum the kinds and amounts of contracts requiring
competitive bidding; definitions; publication and notice requirements;
length of term; deposit and bond requirements, conditions, terms,
rules, regulations, waiver, rights of acceptance and rejection; 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 Borough Council
when not constrained by applicable General Law. Competitive bidding
shall not be required for:
(1)
Labor or services rendered by any Borough official
or employee;
(2)
Contracts for labor, materials, supplies, or services
aggregating less than the amount specified by Borough Council in the
Administrative Code or other 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 emergencies;
(7)
Contracts with governmental entities, authorities,
agencies, or political subdivisions, except where required by General
Law;
(8)
Contracts made for public utility service under tariffs
on file with the Pennsylvania Public Utility Commission.
D.
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 Borough, shall be authorized on behalf
of the Borough except with the lowest responsible bidder, after competitive
bidding.
E.
No person shall evade the competitive bidding provisions
of this Charter or General Law 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 according
to this section or applicable General Law to require competitive bidding.
The Manager shall authorize disbursement of
Borough monies only after determining that all goods and services
contracted for have actually been received or performed and the proper
purchasing procedures have been performed.
The Manager shall:
A.
Provide for the recording of all financial transactions
and related activities of the Borough in terms of dollars and other
appropriate units of measurement, in accordance with the form and
procedures prescribed by Council in the Administrative Code, in order
that required reports and analyses may be produced for the proper
management and control of such activities.
B.
Prepare periodic financial reports, at least monthly,
and at the end of each fiscal year, prepare an annual financial report.
The monthly financial reports shall be submitted to Borough Council
at its regular monthly meeting, and be made available to the public.
C.
Provide for the preservation of official financial
records, which shall be kept at the Borough office and shall be available
for public inspection during regular office hours.
Council shall provide for an independent annual
audit of all Borough receipts, expenditures, accounts, and reports,
including the accounts of the Treasurer, 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 Borough or any of its elected or appointed
personnel or employees. 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 Borough, with the results of
the independent auditor's survey of internal control, and any recommendation
thereon, shall be included in an 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 the internal control, shall be
available for public inspection at the Borough Office. A summary of
the key accounts and findings shall be published by the Borough Manager
not more than 60 days after completion of the audit. 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.
Borough Council shall provide for the bonding
of all officers and employees who are responsible for the handling
and/or authorization of receipts and disbursements, except as otherwise
provided for in this Charter. All such bonding shall be approved by
the Borough Solicitor for form and sufficiency. The premium for such
bonding shall be paid for by the Borough.
The borrowing of money by the Borough shall
continue to be limited in amounts, and governed by procedures, contained
in the Local Government Unit Debt Act (Act 185 of 1972) as amended,
or by other applicable General Law.
