The fiscal year of the town begins on the first day of July
and ends on the last day of June following.
At least 45 calendar days before the beginning of the fiscal
year, the manager must submit to the council the complete proposed
town budget for all the departments, including the school department
for the ensuing fiscal year, and an accompanying message.
The manager's message is to explain the proposed budget
both in fiscal terms and in terms of the work programs. It must outline
the proposed financial policies of the town for the ensuing fiscal
year, describe the important features of the proposed budget, indicate
any major changes from the current year in financial policies, expenditures
and revenues together with the reason for such changes, summarize
the town's debt position and include such other material as the
manager deems desirable.
(1)
The proposed budget must provide a complete financial plan of all
town funds and activities for the ensuing fiscal year and, except
as required by law or this charter, be in such form as the manager
deems desirable or the council requires. In organizing the proposed
budget the manager must utilize the most feasible combination of expenditure
classifications by fund, organization unit, program, purpose or activity,
and object. It is to begin with a clear general summary of its contents;
show in detail all estimated income, indicating the proposed property
tax levy, and all proposed expenditures, including debt service, for
the ensuing fiscal year; and be so arranged as to show comparative
figures for actual and estimated income and expenditures of the preceding
year. It must indicate in separate sections:
(a)
Proposed expenditures for current operations during the ensuing
fiscal year, detailed by offices, departments and agencies in terms
of their respective work programs, and the method of financing such
expenditures;
(b)
Proposed capital expenditures during the ensuing fiscal year,
detailed by offices, departments and agencies when practicable, and
the proposed method of financing each such capital expenditure; and
(2)
The total of proposed expenditures may not exceed the total of estimated
income.
(1)
Submission to manager. The town manager shall prepare and submit
to the council a 5-year capital program at least 90 calendar days
prior to the final date for submission of the proposed budget.
(2)
Contents. The capital program shall include:
(a)
A clear general summary of its contents;
(b)
A list of all capital improvements which are proposed to be
undertaken during the 5 fiscal years next ensuing, with appropriate
supporting information as to the necessity for such improvements;
(c)
Cost estimates, method of financing and recommended time schedules
for each such improvement; and
(d)
The estimated annual cost of operating and maintaining the facilities
to be constructed or acquired.
(e)
Recommendations to fund improvements in the established capital
program dedicated reserve account; any proposed multi-year capital
bonds for voter approval; or, any to be addressed as a separate budget
line item to be fully funded in the ensuing fiscal year with voter
approval. Debt service for voter-approved capital bonds and capital
improvement program dedicated reserve funds are annual appropriations.
(3)
Capital program requirements approved by council to be entirely funded
in the ensuing fiscal year, as a separate budget account line item
outside the capital program dedicated reserve account, must be submitted
to the qualified voters of the town after a public hearing, at a regular
or special election, or town meeting as prescribe herein, and are
obligated provided a majority of the legal votes cast in such election
are in the affirmative.
(4)
The above information may be revised and extended each year with
regard to capital improvements still pending or in process of construction
or acquisition.
(1)
Notice and hearing. The council shall publish as soon as possible
on the Town's web site, and post in the Municipal Offices, the
U.S. Post Office(s) in Kittery and Kittery Point, the Community Center,
and the Resource Recovery Facility, the general summary of the proposed
budget and a notice stating:
(2)
Amendment before adoption. After the public hearing, the council
may adopt the proposed budget with or without amendment. In amending
the proposed budget, it may add or increase programs or amounts and
may delete or decrease any program or amounts, except expenditures
required by law or for debt service or for estimated cash deficit,
provided that no amendment to the proposed budget increases the authorized
expenditures to an amount greater than the total of estimated income.
(3)
Adoption of budget and appropriation. The council shall adopt the
budget on or before the first day of July. If it becomes evident to
the council that the budget cannot be adopted on or before the first
day of July the council may by resolution extend the adoption deadline
by one month. During this one month extension the amount appropriated
for operation for the previous year is deemed adopted for the current
fiscal year with all items in it prorated on the basis of one-twelfth
of the previous year's appropriation. After such extension, if
the council does not adopt the budget on or before the first day of
August the budget is deemed adopted for the ensuing fiscal year as
presented. As an exception to this rule final action on the school
budget, only, may be deferred to a later date which may have been
mandated for that year by the state legislature or the state board
of education, and the school department must continue to operate on
the basis of one-twelfth of the previous year's budget per month
until final action is taken.
(a)
The budget is effective on the first day of July or immediately
upon adoption, whichever is later. The amounts stated in the budget
as the amount to be raised by property tax constitutes a determination
of the amount of the levy for the purposes of the town in the corresponding
tax year and becomes effective on the effective date of the budget
or upon the date of final action on the school budget if such date
be later. A copy of the entire budget as finally adopted must be certified
by the manager and filed with the town assessor, whose duty it is
to levy such taxes for the corresponding tax year.
(b)
Adoption of the budget constitutes adoption of an ordinance
appropriating amounts specified therein from the funds indicated.
(4)
Tax levy. The tax levy must be adopted by council resolution.
(1)
All capital projects which the council, by ordinance, proposes to finance through the issuance of bonds must be submitted to the qualified voters of the town at a regular or special election, after public hearings in the manner and form prescribed in § 2.14 and by law, and become effective 30 days after such election, provided a majority of the legal votes cast in such election are in the affirmative.
(2)
The town clerk shall prepare the necessary ballots for said election.
(3)
The question for each project proposed must be as follows:
"Shall the Town of Kittery council be authorized to issue bonds
in a total amount not to exceed _____ for the purpose of _____"
Yes_____ No_____
(4)
The municipal treasurer shall prepare a signed statement which must
be printed on or accompany each ballot. The statement must set forth:
(a)
The total amount of bonds of the municipality outstanding and
unpaid; the total amount of bonds of the municipality authorized and
unissued; the total amount of bonds of the municipality contemplated
to be issued if the project(s) submitted receive voter approval; and
the bonding limit of the municipality;
(b)
A brief and general description of each project together with
an estimate and explanation of costs involved including varying interest
rates, the estimated cost of interest on the bond amount to be issued,
the total cost of principal and interest to be paid at maturity and
any other substantive information relating to the debt of the municipality
as the treasurer may deem appropriate;
(c)
A statement that the validity of the bonds and of the voters'
ratification of the bonds may not be affected by any errors in the
estimate made pursuant to paragraph (2). If the actual amount of the
total debt service for the bonds varies from the estimate, the ratification
by the voters is nevertheless conclusive and the validity of the bonds
is not affected by reason of the variance; and
(d)
A listing of proposed revenue sources if the bonds are to be
financed, in whole or in part, by other than general property taxes.
Copies of the budget and the capital program as adopted are
public records and must be made available to the public at suitable
places in the town.
(1)
Supplemental appropriations. If during the fiscal year the manager
certifies that there are available for appropriation revenues in excess
of those estimated in the budget, the council by ordinance may make
supplemental appropriations for the year up to the amount of such
excess, but not to exceed an aggregate amount of $125,000.
(2)
Emergency appropriations. To meet a public emergency affecting life, health, property or the public peace, the council may make emergency appropriations. Such appropriations may be made by emergency ordinance in accordance with the provisions of § 2.15. To the extent that there are no available unappropriated revenues to meet such appropriations, the council may by such emergency ordinance authorize the issuance of emergency notes, which may be renewed from time to time, but the emergency notes and renewals of any fiscal year must be paid not later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made.
(3)
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 council without delay, indicating the estimated amount
of the deficit, any remedial action taken and recommendations as to
any other steps to be taken. The council shall then take such further
action as it deems necessary to prevent or minimize any deficit and
for that purpose it may, by ordinance, reduce one or more appropriations.
(4)
Transfer of appropriations. At any time during the fiscal year or
within 60 days of the fiscal year closure, the manager may transfer
part or all of any unencumbered appropriation balance among programs
within a department, office or agency and, upon written request by
the manager, the council may by ordinance transfer a part or all of
any unencumbered appropriation balance from one department, office
or agency to another.
(5)
Limitations; effective date. No appropriation for 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 upon adoption.
Every appropriation, except an appropriation for a capital expenditure,
lapses at the close of the fiscal year to the extent that it has not
been expended or encumbered. An appropriation for a capital expenditure
continues in force until the purpose for which it was made has been
accomplished or abandoned. The purpose of any such appropriation is
deemed abandoned if 3 years pass without any disbursement from or
encumbrance of the appropriation.
(1)
Work programs and allotments. At such time as the manager may specify, each department, office or agency shall submit work programs for the ensuing fiscal year showing the requested allotments of its appropriation by periods within the year. The manager must review and authorize such allotments with or without revision as early as possible in the fiscal year. The manager may revise such allotments during the year if the manager deems it desirable and revise them to be in accord with any supplemental, emergency, reduced or transferred appropriation made pursuant to § 6.09.
(2)
Payments and obligations prohibited. No payment shall be made or
obligation incurred against any allotment or appropriation except
in accordance with appropriations duly made and unless the manager
or his designee first certifies that there is a sufficient unencumbered
balance in such allotment or appropriation and that sufficient funds
therefrom are or will be available to cover the claim or meet the
obligation when it becomes due and payable. Any authorization of payment
or incurring of obligation in violation of the provisions of this
charter shall be void and any payment so made illegal. Such action
shall be cause for removal of any officer who knowingly authorized
or made such payment or incurred such obligations, and the officer
shall also be liable to the town for any amount so paid.
(3)
Issuance of bonds and multi-year contracts. Except where prohibited
by law, nothing in this charter may be construed to prevent the making
or authorizing of payments or making of contracts for capital improvements
to be financed wholly or partly by the issuance of bonds, or to prevent
the making of any contract or lease providing for payments beyond
the end of the fiscal year, provided that such action was made or
approved by ordinance. Where a non-appropriation of funds clause is
incorporated into a contract with termination and there is no penalty
if not appropriated, and any renewal year is automatic with an approved
appropriation, the contract is not considered multi-year.
