Town of New Milford, CT FINANCE AND TAXATION

The Director of Finance shall compile preliminary estimates for the annual budget. The head of each department, office, board, commission or agency of the Town, as described in Section 802 of this Chapter, and the Board of Education, shall not later than the first business day in February in each year, file with the Director of Finance a detailed estimate of the expenditures to be made by said department, office, board, commission or agency, summarized in the major object of expenditures categories of: personnel services, contractual services, materials and supplies, fixed charges and capital outlays, in such a form as the Mayor, with the approval of the Board of Finance, may prescribe, and the revenues, other than tax revenue, to be collected thereby in the ensuing fiscal year and such other information as may be required by the Town Council or the Mayor.

The Director of Finance shall furnish said information together with all information and data useful and necessary for the preparation of the budget to the Mayor so that he may present the annual budget to the Town Council and the Board of Finance not later than the third Tuesday in February in each year.

Following receipt of the required information, the Town Council and the Board of Finance shall jointly hold consultations with each department, agency or office head, including the Board of Education, to review their respective proposed budgets. The Mayor shall preside over said joint meetings.

Section 804 Duties of the Town Council on the Budget.

Not later than the third Tuesday in March the Mayor, with the approval of the Town Council, shall present to the Board of Finance a budget consisting of:

A budget message outlining the financial position of the Town Government and describing in connection therewith the important features of the budget plan indicating any major changes from the current year in financial policies, expenditures and revenue together with the current reasons for such changes, and containing a clear general summary of its contents.

Estimates of revenue, presenting in parallel columns the itemized receipts collected in the last completed fiscal year prior to the time of preparing the estimates, total receipts estimated to be collected during the current fiscal year, estimates of the receipts other than from the property tax, to be collected in the ensuing fiscal year, and an estimate of available surplus.

Itemized detailed estimates of expenditures, in a form acceptable to the Board of Finance, then summarized, presenting in parallel columns, actual expenditures for each department, office, board, commission and agency for the last completed fiscal year, actual expenditures of the first six months of the current fiscal year, estimated expenditures of the second six months of the current fiscal year, department requests for the succeeding fiscal year, and the recommendations of the Town Council, provided that the Town Council may offer other recommendations, and such other information as may be required by the Board of Finance.

As part of the budget the Mayor shall present a program of municipal improvements, approved by the Town Council and previously approved in accordance with the Connecticut General Statutes and Town ordinances for the ensuing fiscal year and for the four (4) fiscal years thereafter. Estimates of the costs of such projects shall be submitted by each department, office, board, commission or agency annually by February first in the form and manner prescribed by the Mayor. The Town Council shall then recommend to the Board of Finance those projects to be undertaken during the ensuing fiscal year and for the four (4) fiscal years thereafter and the method of financing the same.

The Mayor shall present reasons for all such proposals and recommendations.

Section 805 Duties of the Board of Finance on the Budget.

The Board of Finance shall hold one or more Public Hearings not later than the third Tuesday in April in each year, at which time any elector or taxpayer shall have an opportunity to be heard regarding proposed appropriations for the ensuing fiscal year.

Following receipt of the revenue and expenditure estimates for the ensuing fiscal year, the Board of Finance shall cause sufficient copies of the estimates to be made available for general distribution in the office of the Town Clerk, and at least five (5) days prior to the first of the aforementioned hearings, the Board of Finance shall cause to be published, in a newspaper having general circulation in the Town, a notice of such Public Hearing and of the proposed budget estimates showing anticipated revenues by major sources, and proposed expenditures by function or departments, the previous year's budget, the current year's budget, as amended to December 31, and the proposed budget for the upcoming fiscal year, and shall also show the amount to be raised by taxation.

The Board of Finance shall, by resolution adopted by an affirmative vote of at least four (4) members, and within fifteen (15) days after holding the final Public Hearing, approve a budget and file it with the Town Clerk for submission to the Annual Town Budget Meeting and Town Budget Referendum pursuant to Section 807 of this Charter.

The Budget as recommended for approval by the Board of Finance shall be published in a newspaper having general circulation in the Town at least five (5) days prior to the Annual Town Budget Meeting.

The resolution of the Board of Finance approving the budget shall provide for appropriations by major object of expenditure categories of: personnel services, contractual services, materials and supplies, fixed charges and capital outlays, and the revenues, other than tax revenue, to be collected in the ensuing fiscal year. The resolution of the Board of Finance approving the budget for the Board of Education shall set forth a total amount only, in accordance with the Connecticut General Statutes.

(f)

Should the Board of Finance fail to approve the budget within the specified fifteen (15) days, the budget as transmitted by the Mayor in accordance with the provisions of Section 804 of this Chapter shall be deemed to have been finally approved by the Board of Finance and the same shall be filed with the Town Clerk for submission to the Annual Town Budget Meeting and Budget Referendum for the purposes of final adoption.

Section 806 Duties of the Board of Finance on Other Financial Matters.

In addition to the duties prescribed elsewhere in this Charter, the Board of Finance shall:

Have the power, by resolution and only upon the recommendation of a majority of the entire Town Council, to make appropriations supplemental to those provided in the annual budget. In the event the Board of Finance fails to approve a supplemental appropriation recommended by a majority of the entire Town Council, the Town Council may, by a two-thirds vote of the entire Town Council, overrule the Board of Finance and approve a supplemental appropriation. For such an overrule to be considered, a majority of the Town Council must petition the Mayor to call a special meeting of the Town Council for purposes of the same.

Also have the power, by resolution, upon the recommendation of a majority of the entire Town Council, to incur indebtedness, and shall have such other powers and duties not inconsistent or in conflict with, or contrary to this Charter, conferred or imposed by the Connecticut General Statutes on Town Boards of Finance.

Within five (5) business days following the adoption of the Budget, fix the tax rate in mills which shall be levied on the taxable property in the Town for the ensuing fiscal year. The budget will be deemed adopted once each portion of the budget has passed at referendum.

For the purposes of Chapter 111 of the Connecticut General Statutes, have the power to select the independent public accountant.

Have the power to advise the Director of Finance and approve or reject the investment of any town funds exceeding one eighth of one mill — or exceeding one half of one mill in the aggregate during the course of a fiscal year - in one or more of the following:

(1)

time deposits of greater than 364 days;

(2)

marketable securities;

(3)

private placements.

Section 807 Budget Referendum.

After the Board of Finance approves the budget pursuant to Section 805 of this Charter, the Town Council shall set the date of the Annual Town Meeting and the date of the Budget Referendum. The Annual Town Meeting shall include the purpose of receiving public comment on the budget and to take action on such matters necessary and appropriate to implement the budget following final Budget Referendum approval.

The Annual Town Meeting shall schedule the Budget Referendum for a date which is no earlier than eight (8) nor later than fourteen (14) days after the Annual Town Budget Meeting, and shall also schedule the hours during which such referendum vote shall be held. The Town Clerk shall cause publication of the notice of said vote, and the date, time, and place thereof in a newspaper having general circulation in the Town, which publication shall be no later than five (5) days before the date of the referendum.

(1)

After the Annual Town Meeting sets the date of the Budget Referendum, the Board of Finance shall schedule a special meeting for the next business day after said referendum, and any subsequent referendum. The agenda for said special Board of Finance meeting will include reaction/response to the Budget Referendum.

(2)

In the event that the majority of those voting in the Budget Referendum approve the proposed Town Operating budget and/or the Board of Education budget the approved budget(s) shall be deemed final and not be subject to reconsideration for any subsequent referendum.

(3)

In the event that the majority of those voting in the Budget Referendum reject the proposed Town Operating Budget, the Board of Education Budget, or both, the Board of Finance shall revise the rejected portion(s) of the budget and submit proposed revisions thereof to a subsequent referendum, consistent with Section 805(e).

(4)

Within two (2) business days of a special Board of Finance meeting set forth in Section 807-c(1), a majority of the Town Council may petition the Mayor to call a special Town Council meeting for the purpose of overriding the Board of Finance revisions set forth in Section 807-c(3). The Mayor shall then schedule such a Town Council meeting for the next business day. At said meeting, a two-thirds vote of the entire Town Council may overrule the Board of Finance revisions to the rejected budget(s) and approve alternative revisions to be voted on by the ensuing referendum. In the event a majority of Town Council members do not timely petition the Mayor for such a meeting, the budget(s) as revised by the Board of Finance will be voted on by the ensuing referendum.

In the event the referendum shall fail to adopt one or both portions of the budget, the referendum shall be adjourned until the twenty-first (21st) day following and thence to successive twenty-one (21) days, until any previously rejected portion(s) of the budget become adopted. Appropriate notice shall be given prior to each referendum.

(1)

If the budget is rejected at such subsequent Budget Referendum, the Board of Finance shall follow the same procedure and deadlines set forth in Section 807-c in considering and making proposed revisions and submitting such revised proposed budgets to subsequent Budget Referenda, until a budget is adopted. The Town Council shall also follow the same procedure and deadlines set forth in Section 807-c with respect to potential override.

(2)

If the budget remains unaccepted after June 30th, the budget adopted for the then current fiscal year shall be deemed to be the temporary budget for the forthcoming fiscal year and expenditures may be made on a month-to-month basis in accordance with the temporary budget until such time as a Budget Referendum adopts a new budget.

(3)

In the initial Town Budget Referendum there shall be four (4) questions to be voted on by all voters, as follows:

Shall the sum of $_____ be appropriated as the annual town government budget for the 20___ fiscal year?
YES	NO
Advisory only. Is the proposed town operations budget in the amount of $_________
TOO HIGH	ADEQUATE	TOO LOW
Shall the sum of $_____ be appropriated as the annual Board of Education budget for the 20___ fiscal year?
YES	NO
Advisory only. Is the proposed education budget in the amount of $__________
TOO HIGH	ADEQUATE	TOO LOW

(4)

Subsequent referendums shall consider only the budget question(s) rejected in the previous referendum, with revised amounts pursuant to Section 807-c and the respective accompanying advisory question(s).

(f)

The adoption of the budget shall be deemed to constitute the appropriation to each department and to each office, board, commission and agency separately listed as set forth in the proposed budget as approved by the Town Referendum.

Section 808 Emergency Appropriations.

For the purpose of meeting a public safety emergency threatening the lives, health or property of citizens, emergency appropriations, the total amount of which shall not exceed one-eighth (1/8) of one (1) mill on the last completed taxable Grand List of the Town, may be obligated by the Mayor. Any amount above this shall require a majority vote of the Town Council and an affirmative vote of two-thirds of the Board of Finance.

In the event the appropriation fails to pass the Board of Finance, the Board of Finance may be overruled by a two-thirds vote of the Town Council.

In the absence of sufficient general fund resources to meet such appropriations, additional means of financing shall be provided in such manner, consistent with the provisions of the Connecticut General Statutes and of this Charter.

The Mayor, pursuant to Section 503 of this Charter, shall have the power to declare an emergency.

Section 809 Tax Bills.

It shall be the duty of the Tax Collector to issue to each taxpayer a tax bill prepared in accordance with the provisions of Chapter 204 of the Connecticut General Statutes. Except as otherwise specifically provided in this Charter, the assessment of property for taxation and the collection of taxes shall be carried on in accordance with the provisions of Chapters 203 and 204 of the Connecticut General Statutes.

Section 810 Expenditures and Accounting.

No purchase to be satisfied with Town funds, other than sewer use revenue of the Sewer Commission, shall be made by any department, board, commission, employee or officer of the Town, excluding the Board of Education and the New Milford Public Library, except through procedures approved by the Director of Finance and the Mayor.

The Director of Finance shall cause the amount of authorized purchases and contracts for future purchases to be recorded as encumbrances against the appropriations from which they are to be paid.

No voucher, claim or charge against the Town shall be paid until the same has been audited by the Director of Finance and approved by him for correctness, validity and legality.

Payment of all approved claims against the Board of Education accounts shall be authorized by the Superintendent of Schools, or his agent, which authorization shall be valid when countersigned by the Director of Finance.

Payment of all approved claims against all other Town accounts shall be authorized by the Mayor which authorization shall be valid when countersigned by the Director of Finance.

(f)

The Director of Finance shall prescribe the manner in which persons receiving money on behalf of the Town shall transfer the same to the Director of Finance.

(g)

No expenditure or commitment to make an expenditure shall be made, caused to be made, or authorized by any officer, agent, employee, or agency of the Town, or by any board or commission of the Town unless an appropriation shall have been made covering such expenditure or commitment in accordance with the provisions of this Charter.

(h)

Each order drawn upon the Director of Finance shall state the department, commission, board or officer and the appropriation against which it is to be charged.

(i)

Any board, commission or department head (with the Mayor's written permission and notice to the Town Council) may transfer funds from one category to another category within the budget for such board, commission or department, provided that the aggregate amount of transfers within the budget for such board, commission or department shall not exceed $5,000 provided that written notification of such transfer shall be given to the Mayor and the Director of Finance as each transfer occurs.

(j)

Upon the request of any board, commission or department or the Mayor, subject to the approval of the Town Council, the Mayor may instruct the Director of Finance to transfer funds in excess of $5,000 from one category of such board, commission or department to another category of such board, commission or department provided that no new category is created.

(k)

Appropriations for construction or for other permanent improvements, from whatever source derived, shall not lapse until the purpose for which the appropriation was made shall have been accomplished or abandoned, provided any such project shall be deemed to have been abandoned if three (3) fiscal years shall elapse without any expenditure from or encumbrances of the appropriation therefore.[1]

[1]

Editor's Note: So in original; should be "therefor."

(l)

Each department shall send a list to the Mayor with a copy to the Town Council of any project, construction or permanent improvement for which an appropriation has been made but for which there has been no expenditure for twelve (12) consecutive months. The list shall state the amount of appropriation or encumbrance remaining unexpended.

Any portion of an annual appropriation remaining unexpended and unencumbered at the close of the fiscal year shall lapse unless continued in force and effect upon consideration of the Director of Finance and approval of the Town Council.

(m)

Every payment made in violation of the provisions of this Charter shall be deemed illegal, and every official willfully authorizing or knowingly taking part therein shall be jointly and severally liable to the Town for the full amount so paid or received. The Town Council may adopt, by resolution, such rules and regulations concerning expenditures and bidding procedures, not inconsistent with the provisions of this section, as it may from time to time deem necessary and appropriate.

Section 811 Borrowing.

The Town shall have the power to incur indebtedness by issuing its bonds or notes as provided by the Connecticut General Statutes subject to the limitations thereof and the provisions of this Charter. The issuance of any such bonds and notes, except tax anticipation notes, shall be authorized by resolution adopted by the Town Meeting as provided in Section 903 of the Charter.

Section 812 Official Bonds.

All officers and employees as may be required to do so by the Town Council or by the Connecticut General Statutes, shall, before entering on their respective official duties, execute to the Town, in the form prescribed by the Town Council and approved by the Town Attorney, and filed with the Town Clerk, a surety company bond in a penal sum to be fixed by the Town Council conditioned upon the honest and/or the faithful performance of such official duties.