[Amended 11-3-2020]
The fiscal year of the Town shall begin on the first (1st) day
of July and end on the last day of June or such other dates set by
the Town Council by Ordinance.
There shall be a Budget and Financial Review Board, consisting
of seven (7) voting members. The Finance Director shall be a non-voting
member ex-officio. All members of the Board shall be appointed by
the Town Council from among the qualified voters of the Town. Each
member shall serve a term of five years, except that the terms shall
be arranged so that the term of one member shall expire each year.
In the event that a Board member shall have missed three consecutive
meetings without the consent of the Chair, then his or her membership
shall expire forthwith. In the event of a vacancy on the Board for
any reason, the Town Council shall make an interim appointment for
the remainder of the unexpired term. Members shall be eligible for
reappointment.
The Budget and Financial Review Board shall elect a Chairperson,
Vice-Chairperson, and Secretary of the Board and shall adopt its own
rules and order of business. The Board shall meet monthly and make
recommendations to the Town Council regarding the annual Town budget,
as indicated below, and shall also perform the following duties:
A.
Receive and review the annual audit report and monitor the Town's
compliance with recommendations contained therein;
B.
Review and discuss financial trends and five-year budget projections
on at least an annual basis;
C.
Complete projects as assigned by the Town Council on the Town's
operation, as requested, and compile recommendations where applicable
to increase revenue, improve productivity and/or reduce costs;
D.
Issue reports to the Town Council on assigned projects when such
projects are completed;
E.
Schedule and conduct workshops with the Town Council and School Committee
to provide guidance to the Town Council regarding financial matters
including the Town's budget and assigned projects; and
F.
Assign two members to serve on the Capital Committee.
The Town Manager shall receive from the head of each department
and agency, including the School Committee, an estimate of the amount
necessary to carry on its work during the coming fiscal year. These
estimates accompanied by a message from the Town Manager shall be
submitted to the Budget and Financial Review Board on or before March
1st, which shall then prepare its budget recommendations (including
an estimated tax rate) for submission to the Town Council. In preparing
its budget recommendations the Budget and Financial Review shall investigate
the recommendations of the various department budget requests, including
the School Committee, and may request that the head of any of said
departments explain their estimates and recommendations. The Budget
and Financial Review Board shall confer with the Town Council and
shall hold one or more public hearings in preparing the budget, the
first of which shall be held at least three weeks after receipt of
the budget from the Town Manager. The public hearings for the proposed
municipal and school budgets shall be advertised by the Town Clerk
at least once in each of the two weeks preceding the hearings in two
newspapers of general circulation either daily or weekly which serve
the Town of Smithfield, as well as the Town's website. The advertisement
shall provide a general summary of the budget and the times and place
where copies of the budget and budget message are available for public
inspection.
The Town Manager's message shall explain the budget both
in fiscal terms and in terms of the work programs. It shall outline
the proposed financial policies of the Town for the ensuing fiscal
year, describe the important features of the budget, indicate any
major changes from the current year in financial policies, expenditures,
and revenues together with the reasons for such changes, summarize
the Town's debt position and include such other material as the
Town Manager deems desirable.
The budget shall 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, shall be in such form as the Town Manager
deems desirable or the Town Council may require. The budget shall
begin with a clear general summary of its contents; shall 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 shall be so arranged as to show comparative
figures for the budgeted and revised income and expenditures of the
current fiscal year and actual income and expenditures of the preceding
two (2) fiscal years. It shall indicate in separate sections:
(1)
The proposed goals and objectives and expenditures for current operations
during the ensuing fiscal year, detailed for each fund by organization
unit; program, purpose or activity; and, the method of financing such
expenditures;
(2)
Proposed capital expenditures during the ensuing fiscal year, detailed
for each fund by organization unit when practicable, and the proposed
method of financing each such capital expenditure; and
(3)
The anticipated income and expense and profit and loss for the same four (4) fiscal years outlined in § C-5.05 for each utility or other enterprise fund operated by the Town, including, but not limited to, the Smithfield Sewerage System, Smithfield Water Department, and Smithfield Ice Rink.
For any fund, the total of proposed expenditures shall not exceed
the total of estimated income plus carried forward fund balance, exclusive
of reserves.
The Budget and Financial Review Board shall submit its printed
report comprising the budget and budget message to the Town Council
no later than May 15th.
Subsequent to the submission of the budget by the Budget and
Financial Review Board, the Town Council shall hold a public hearing
on the proposed budget and decide whether to make any changes prior
to final adoption by the Town Council. Changes to the proposed budget
may include the addition or deletion of programs and/or increase or
decreases in program funding, except for expenditures required by
law or for debt service or for an estimated cash deficit. No change
to the proposed budget shall increase the authorized expenditures
to an amount greater than total estimated income, less any required
reserve.
There are hereby established a Capital Reserve Fund and a Land
Trust Reserve Fund. The Capital Reserve Fund shall be available to
the Town as necessary for expenditures relating to certain capital
expenditures pursuant to local ordinance. The Land Trust Reserve Fund
shall be used exclusively by the Smithfield Land Trust for the acquisition
and preservation of real property pursuant to the legislative charter
of said land trust.
Beginning in fiscal year 2016 and ending in fiscal year 2020,
the 5% undesignated fund balance shall be increased by 3/5 of a percent
of the subsequent year's appropriation. After each fiscal year
commencing in 2016 to the extent that the undesignated fund balance
exceeds 5 3/5% of the subsequent year's appropriation in
FY 2016, 6 1/5% in FY 2017, 6 4/5% in FY 2018, 7 2/5%
in FY 2019 and 8% in FY 2020, the excess shall be divided 80% for
the Capital Reserve Fund and 20% for the Land Trust Reserve Fund.
Expenditures from the Capital Reserve Fund and Disbursements from
the Land Trust fund shall be considered at the annual Financial Town
Meeting.
To implement the adopted budget, the Town Council shall adopt,
prior to the beginning of the ensuing fiscal year:
(1)
An Appropriation Resolution making appropriations by department or
major organizational unit and authorizing a single appropriation for
each program or activity;
(2)
A Tax Levy Resolution authorizing the property tax levy or levies
and setting the tax rate or rates; and
(3)
Any other Resolutions required to authorize new revenues or to amend
the rates or other features of existing taxes or other revenue sources.
(a)
Emergency Appropriations. To meet a public emergency affecting life, health, property or the public peace, the Town Council may make Emergency Appropriations. Such appropriations may be made by Emergency Ordinance in accordance with the provisions of § C-2.14. To the extent that there are no available unappropriated revenues or a sufficient fund balance 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 shall be paid not later than the last day of the fiscal year next succeeding that in which the Emergency Appropriation was made. Furthermore, the amount of the Emergency Appropriation cannot exceed two percent (2%) of the current operating budget.
(b)
Reduction of Appropriations. If at any time during the fiscal year
it appears probable to the Town Manager that the revenues or fund
balances available will be insufficient to finance the expenditures
for which appropriations have been authorized, the Manager shall report
to the Town Council without delay, indicating the estimated amount
of the deficit, any remedial action taken by the Manager and recommendations
as to any other steps to be taken. The Council shall then take such
further action to prevent any deficit and for that purpose it may
by Ordinance reduce one or more appropriation, excluding the School
Department.
(c)
Transfer of Appropriations. At any time during the fiscal year, the
Town Manager may transfer part or all of any unencumbered appropriation
balances among programs within a department or organizational unit
and shall report such transfers to the Council in writing within fifteen
(15) days.
(d)
Limitation 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 encumbered balance thereof. The supplemental and Emergency
Appropriations and reduction or transfer of appropriations authorized
by this section may be made effective immediately upon adoption.
(e)
Limitation Utility or Enterprise Funds. Furthermore, no utility or
enterprise fund shall exceed its adopted budget or the income raised
by it, whichever is lower, without the approval of the Town Council.
Moreover, the Town Council shall not divert any funds collected by
an enterprise fund without first adopting an Emergency Ordinance.
Any such diverted funds shall be restored not later than the close
of the ensuing fiscal year.
Every appropriation, except an appropriation for a capital expenditure,
shall lapse at the close of the fiscal year to the extent that it
has not been expended or encumbered. An appropriation for a capital
expenditure shall continue in force until expended, revised or repealed;
the purpose of any such appropriation shall be deemed abandoned if
three (3) years pass without any disbursement from or encumbrance
of the appropriation.
The Town Council shall provide by Resolution the procedures
for administering the budget.
No payment for any item over one thousand dollars ($1,000.)
for any Town department, including the School Department, shall be
made or obligation incurred against any allotment or appropriation
except in accordance with appropriations duly made and unless the
Town Manager or the Manager's designee, or in the case of the
School Department the School Superintendent or the Superintendent's
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. A violation
of this provision shall be cause for removal of any officer who knowingly
authorized or made such payment or incurred such obligation. Such
officer may also be liable to the Town for any amount so paid. Except
where prohibited by law, however, nothing in this Charter shall 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,
but only if such action is made or approved by Ordinance.
However, if at any time during the fiscal year the Town Manager
shall ascertain that the remaining unexpended balance of appropriations
of the School Department for the year will be insufficient to cover
proposed work programs for the School Department, the Town Manager
shall advise the School Department to reconsider their work programs
and allotments and to revise their allotments so as to forestall the
making by them of expenditures in excess of appropriations.
(a)
Capital Committee. There shall be one Capital Committee for the entire
town, including Smithfield Public Schools (The School Department)
and all other departments of the Town of Smithfield. The Capital Committee
will be an advisory board to the Town Council and shall consist of
eleven (11) members: Three (3) members of the School Department (One
member of the School Committee, the School Superintendent, and School
Department's Facilities Director) additionally, there will be
two (2) members of the Budget and Financial Review Board, one (1)
member of the Asset Management Commission, the Town Finance Director,
the Town Planner, two (2) Town Council Members (selected by the Town
Council President) and the Town Manager.
(b)
Submission to Town Council. The Capital Committee shall meet quarterly
and prepare and submit to the Town Council, three (3) months before
the operating budget submission date, a twenty (20) year Capital Program,
consisting of four (4) increments (of five (5) years each). The Town
Council will approve the annual Capital Plan Program.
(c)
Contents. The Capital Program shall include:
1)
A clear general summary of its contents; including but not limited
to capital revenues, debt service, what capital needs will be bonded,
etc.
2)
A list of capital improvements and other capital expenditures which
are proposed to be undertaken during the five (5) fiscal years ensuing,
with appropriate supporting information as to necessity for each item;
3)
Cost estimates and recommended time schedules for each improvement
or other capital expenditure;
4)
Method of financing, upon which each capital expenditure is to be
reliant;
5)
The estimated annual cost of operating and maintaining the facilities
to be constructed or acquired.
6)
The Capital Program shall be revised every year, with regard to capital
improvements that are still pending or in process of construction
or acquisition.
7)
For any capital item greater than $10,000, there will be a separate
resolution (for each item) for the Town or Smithfield Public Schools
(see section e below).
(d)
Life of Assets. Whenever the Town shall issue bonds to finance a
capital project, the useful life of the asset shall be at least equal
to the life of the bonds.
(e)
The Town of Smithfield shall establish, fund and administer its own
School Capital Reserve Fund (TSSCR) and will adhere to all RI General
Laws applicable.
The purpose of this fund is to augment Smithfield Public School's
capital budget that is approved through the Budget and Financial Review
Board and the Smithfield Town Council on an annual basis.
The intent of the School Capital Reserve Fund is to allow Smithfield
Public Schools to meet at least State of Rhode Island threshold annually,
for new "maintenance requirements" and approved projects under Rhode
Island General Law § 16-7-23.
(a)
Notice of Hearing. The Town Council shall publish in one (1) or more
newspapers of general circulation in the Town the general summary
of the Capital Program and a notice stating:
(b)
Adoption. The Town Council by Resolution shall adopt the Capital
Program with or without amendment after the public hearing and on
or before the third (3rd) Thursday of February of the current fiscal
year.
Copies of the budget, Capital Program and Appropriation and
Revenue Ordinances, and the annual audit shall be public records and
shall be made available to the public at suitable places in the Town.
The Town Council shall exercise all powers and perform all functions
which it may properly exercise and perform under State law regarding
the issuance of bonds and promissory notes, provided that all bond
issues and any issue of promissory notes which during the fiscal year
shall amount to a sum in excess of five percent (5%) of the current
operating budget of the Town, shall be approved by a majority of the
voters voting thereon at a general or special election.
The Town of Smithfield shall maintain any and all of its funds
in Federally insured banks, savings and loan companies, credit unions,
and/or in notes and securities issued by the United States Government
or as otherwise provided by State Law.
(a)
Central Purchasing. All supplies, materials and equipment required
by any department, office, agency, board or commission of the Town,
including the School Department, shall be processed for solicitation
and purchased centrally by the Purchasing Agent under the direction
of the Finance Director, including solicitation for contractual services.
All contracts and awards shall be reviewed by the Town Solicitor prior
to signing, provided however that items specific to instructional
needs, including, but not limited to, textbooks, workbooks, and curriculum
materials, may be purchased directly by the School Department with
the costs thereof charged to the appropriate budget item. Central
purchasing shall occur in such manner and under such procedures not
inconsistent with the provisions of this article, as may be prescribed
by the Town Council by Ordinance. Nothing in this section shall prohibit
the Town from participating in a cooperative purchasing agreement
with the State, other municipalities, agencies, or States.
(b)
Competitive Bidding. No purchase of supplies, materials, or equipment,
nor any contract for work performed for the Town whose costs shall
exceed an amount set by the Town Council, shall be authorized except
after competitive bidding that will comply with state law.
Potential suppliers or contractors shall be notified publicly
to submit bids in such a manner and under such general rules and regulations
as the Town Council may prescribe by Ordinance. All such purchases
and contracts shall be awarded to the lowest responsible bidder except
that the Finance Director may be directed by the Town Manager to reject
all bids and readvertise. Bids, specifications, and all other factors
being equal, preference shall be given to the bidder whose place of
business is in the Town. No transaction which is essentially a unit
shall be divided into a series of orders for the purpose of circumventing
this requirement or State Law. All contracts for municipal employment
shall be approved by vote of the Town Council. Contracts for municipal
employment, with the exception of the Town Manager, shall comply with
Charter provisions that provide that certain appointees serve at the
pleasure of the Town Manager.
(c)
Purchases and Emergencies. In the event of an emergency of sufficient gravity that compliance with the competitive bidding requirements set forth in subsection (b) of this section would endanger the health or welfare of the community or a portion thereof or would involve significant financial risk or loss to the Town, and upon certification by the Town Manager that such emergency conditions exist, a purchase whose cost would exceed the minimum bid limit may be made without competitive bidding. In any such case in which the gravity of the emergency permits, and in all cases of purchases whose cost shall exceed the minimum bid limit, three (3) or more verbal quotations followed by written confirmation shall be solicited and purchases made on the basis of the lowest feasible quotation received. Notation of said verbal quotations shall be entered in the record of each such purchase.
(d)
Whenever any department, office, or agency of the Town shall purchase
or contract for any supplies, materials, equipment or contractual
services, independent and contrary to the provisions of this Charter
or the rules and regulations made thereunder, such order or contract
shall be voidable by the Town Council.
There shall be a Comprehensive Audit of the Town performed every
five (5) years beginning in 2021. The Budget and Financial Review
Board shall be the selection committee which shall process the RFP
and recommend to the Town Council for award. In addition, the audit
shall be submitted to the Budget and Financial Review Board for their
review and written comments prior to the Town Council.
The Town shall codify a fund, separate and apart from the general
revenues of the Town of Smithfield, known as the "Other Post-Employment
Benefits Trust Fund," herein referred to as the "OPEB Trust Fund".
This fund may be separated into subaccounts for funding and reporting
purposes.
The addition of this trust into the Charter shall highlight
the growing liability and the responsibility of the Town Council to
monitor the Board, as deemed necessary. Further, the Town Council
shall conduct at least one annual meeting with the OPEB Board and
its actuary.
The establishment of a four-step process (Organize, Formalize,
Monitor and Implement) shall form level of prudence, such that the
OPEB trust shall be funded yearly with the goal of achieving 30% funded
within in 10 years of the date of this Charter addition.
Currently prescribed by ordinance in Chapter 69, the Town shall continue to execute the composition, responsibilities, Fiscal Powers, Consultants, Liability of the OPEB Board. Other components of the ordinance that are in effect may change as-needed.
