[Ord. No. 794, 2-21-2017]
A. Prior
to the commencement of each fiscal year, a budget for the City shall
be prepared and the same will be presented to and approved by the
Board of Aldermen.
B. The
annual budget shall present a complete financial plan for the ensuing
fiscal year and shall include at least the following information:
1. A budget message describing the important features of the budget
and major changes from the preceding year;
2. Estimated revenues to be received from all sources for the budget
year, with a comparative statement of actual or estimated revenues
for the two (2) years next preceding, itemized by year, fund and source;
3. Proposed expenditures for each department, office, commission, and
other classification for the budget year, together with a comparative
statement of actual or estimated expenditures for the two (2) years
next preceding, itemized by year, fund, activity and object;
4. The amount required for the payment of interest, amortization and
redemption charges on the debt of the City; and
5. A general budget summary.
C. The
Budget Officer shall calculate and establish the minimum encumbered
fund balance for each of the City of Strafford’s Revenue Funds
prior to the beginning of the budget process for a new fiscal year,
per the requirements stated below:
1. General Fund – The absolute minimum encumbered fund balance
for the General Fund shall be three (3) months equivalent (twenty-five
percent (25%)) of the annual total General Fund Revenue, less revenue
from project specific sources such as grants, bond and certificates
of participation proceeds and loans, projected for the current fiscal
year. The desired minimum encumbered fund balance for the General
Fund shall be six (6) months equivalent (fifty percent (50%)) of the
annual total General Fund Revenue, less revenue from project specific
sources such as grants, bond and certificates of participation proceeds
and loans, projected for the current fiscal year.
2. Water/Sewer/Trash Fund – The minimum encumbered fund balance
for the Water/Sewer/Trash Fund shall be three (3) months equivalent
(twenty-five percent (25%)) of the annual total Water/Sewer/Trash
Fund Revenue, less revenue from project specific sources such as grants,
bond and certificates of participation proceeds and loans, projected
for the current fiscal year.
D. In
no event shall the total proposed expenditures from any fund exceed
the estimated revenues to be received plus any unencumbered balance
or less any deficit estimated for the beginning of the budget year;
provided, that nothing herein shall be construed as requiring the
City to use any cash balance as current revenue or to change from
a cash basis of financing its expenditures.
The Board of Aldermen may revise, alter, increase or decrease
the items contained in the proposed budget, subject to such limitations
as may be provided by law; provided, that in no event shall the total
authorized expenditures from any fund exceed the estimated revenues
to be received plus any unencumbered balance or less any deficit estimated
for the beginning of the budget year. Except as otherwise provided
by law, the Board of Aldermen shall, before the beginning of the fiscal
year, approve the budget and approve or adopt such orders, motions,
resolutions or ordinances as may be required to authorize the budgeted
expenditures and produce the revenues estimated in the budget.
After the City has approved the budget for any year and has
approved or adopted the orders, motions, resolutions or ordinances
required to authorize the expenditures proposed in the budget, the
City shall not increase the total amount authorized for expenditure
from any fund, unless the Board of Aldermen adopts a resolution setting
forth the facts and reasons making the increase necessary and approves
or adopts an order, motion, resolution or ordinance to authorize the
expenditures.