Town of Newtown, CT CHAPTER 6 BUDGET PROCESSES

6-01 General Provisions.

(a) The following terms shall have the meaning ascribed to them in the referenced section of this Charter:

(1) Board of Education Budget - Subsection 6-05(a),

(2) First Selectman's Budget - Subsection 6-05(b),

(3) Board of Selectmen Budget - Subsection 6-05(b),

(4) Recommended Board of Finance Budget - Subsection 6-15(c)(3),

(5) Town Budget - Subsection 6-20(d),

(6) Annual Town Budget Referendum - Subsection 6-25(a),

(7) Special Appropriation - Subsection 6-35(a),

(8) Emergency Appropriation - Subsection 6-35(a).

6-05 Preparation of the Board of Selectmen and Board of Education Budget Proposals.

(a) Not later than February 14th, in such form and with such supporting data as the Board of Finance shall require, the Board of Education shall submit to the Board of Finance an itemized estimate of expenditures proposed for the provision and maintenance of good public elementary and secondary schools and an itemized estimate of all revenue other than Town appropriations to be received by the Board of Education for its use during the next fiscal year (the "Board of Education Budget").

(b) At such time and in such manner as the First Selectman may require, every Town Department other than the Board of Education shall present to the First Selectman an itemized estimate of the expenditures to be made by and revenues to be received by such departments during the next fiscal year. After such revisions as the First Selectman may make, the First Selectman shall submit a comprehensive estimate of expenditures (the "First Selectman's Budget") to the Board of Selectmen by February 1st. The estimates shall be accompanied by such other reports and information as the Board of Selectmen may require. The Board of Selectmen shall then revise the estimates, as it deems desirable, and submit the revisions to the Board of Finance in such form and with supporting data as the Board of Finance shall require no later than February 14th, (the "Board of Selectmen Budget").

6-10 Role of the Finance Director.

(a) The Finance Director shall advise all Town Departments participating in the budget process at such times and manner as they may reasonably request.

(b) The Finance Director shall create and maintain a budget document throughout the budget process described in Sections 6-05 through 6-25. Said document shall be comprised of the proposed Board of Selectmen Budget and a single line item representing the proposed Board of Education appropriation, which shall be the proposed Town Budget. Estimated revenues, including sources of such revenues, and an estimated tax levy shall be added by the Finance Director to the budget document.

(c) The Finance Director shall be responsible for causing the publication of the proposed or recommended budgets whenever publication is required by the provisions of this Charter.

6-15 Financial Review of the Proposed Budgets by the Board of Finance.

(a) The Board of Finance shall conduct a public hearing not later than the first Wednesday in March on the proposed budgets and at said hearing or any adjournment thereof it shall hear all persons eligible to vote as defined in Section 7-6 of the General Statutes who may desire to be heard relative to the proposed budgets.

(b) The proposed budgets shall be noticed according to Subsection 1-25(b) not later than five (5) days prior to said hearing. The publication shall include the proposed budgets showing in parallel columns, for each item, the sum budgeted for the current fiscal year, the sum expended for the prior fiscal year and the sum proposed for the next fiscal year and the estimated tax rate for the next fiscal year.

(c) The Board of Finance shall hold working sessions and shall revise the proposed budgets as it deems desirable. The Board of Finance shall:

(1) Make such changes in any estimates or appropriations contained in the proposed budgets as it may deem proper;

(2) Add appropriations or estimated revenues not contained in the proposed budgets; and

(3) Approve a complete financial plan for the operations of the Town for the next fiscal year (the "Recommended Board of Finance Budget") which shall contain at least the following:

(i) A simple, clear, general summary of the contents, showing estimated revenues and total appropriations equal in amount;

(ii) The proposed expenditures in detail including provisions for any adjustments to the unassigned fund balance for the prior fiscal year, for debt service requirements, and for all other expenditures for the next fiscal year, including an appropriation for contingencies to be met from current revenues. All proposed expenditures should be classified in such manner as the Board of Finance deems desirable;

(iii) The estimated proposed revenues and the amount required from taxes, which shall be the amounts expected to be received during the next fiscal year; and

(iv) An itemized comparative statement by classification of all actual expenditures and receipts during the last completed fiscal year and the budget appropriations for the current fiscal year as revised to a recent specified date, together with estimated revenues for the current fiscal year.

(d) The Board of Finance shall submit to the Legislative Council its Recommended Board of Finance Budget for the next fiscal year by March 14th.

6-20 Preparation of the Proposed Town Budget by the Legislative Council.

(a) Upon receipt of the Recommended Board of Finance Budget, the Legislative Council shall cause sufficient copies thereof to be made available for general distribution in the office of the Town Clerk and shall hold a public hearing thereon not later than the last Wednesday in March each year. At least five (5) days prior to said hearing, a notice of the public hearing together with a summary of the budget recommended by the Board of Finance showing proposed expenditures, anticipated revenues by major sources, and the amount of revenue to be raised, shall be noticed according to Subsection 1-25(b).

(b) The Legislative Council shall have the following powers with respect to approval of any item in the proposed Town Budget:

(1) It shall have the power to reduce any item by a majority of at least six (6) affirmative votes;

(2) It may increase any item or add items above those provided in the Recommended Board of Finance Budget by an affirmative vote of at least eight (8); and

(3) The Legislative Council may only add or increase items up to the amounts included in the proposed Board of Selectmen and Board of Education Budgets inclusive of any amendments made in Subsection 6-20(f).

(c) No later than the second Wednesday in April, the Legislative Council shall approve a proposed Town Budget to be submitted for final adoption at the Annual Town Budget Referendum (the "Town Budget"). If the Legislative Council shall not have approved a proposed Town Budget on or prior to said date, then the Recommended Board of Finance Budget shall be submitted for adoption at the Annual Town Budget Referendum.

(d) If the Board of Finance shall fail to submit a Recommended Board of Finance Budget to the Legislative Council by March 14th, then the proposed Board of Selectmen and Board of Education Budgets shall be considered by the Legislative Council. The Legislative Council shall hold on public hearing on the budgets proposed by the Board of Selectmen and the Board of Education, together with estimated revenues, after giving notice and publication, all as set forth in Subsection 6-20(a). The Legislative Council shall have, when considering and acting upon the proposed Board of Selectmen and Board of Education Budgets, the same powers granted to the Board of Finance under provisions of Subsection 6-15(c), and shall exercise said powers by a majority of at least (6) affirmative votes.

(e) If the Legislative Council approves a project in the Capital Improvement Plan for appropriation and funding for an amount that exceeds the Legislative Council's authority, as established in Subsection 6-35(d), the Legislative Council shall use its best efforts to have the appropriation for the project added to the ballot for the Annual Town Budget Referendum.

(f) Prior to the final approval of a proposed Town Budget by the Legislative Council, the Board of Selectmen and the Board of Education may amend the proposed budget(s).

(1) Prior to the Annual Town Budget Referendum, amendments shall be submitted to the Board of Finance. If the amendments are approved by the Board of Finance the Legislative Council shall vote on the amendments as if they were part of the Recommended Board of Finance Budget. Otherwise the amendments shall be voted on by the Legislative Council as reductions, increases or additions, as the case may be, under Subsection 6-20(b).

(2) Prior to subsequent budget referenda, if any, amendments made by the Board of Selectman and/or the Board of Education to budget proposals shall not be exceeded by the Legislative Council. Should the Board of Selectman or Board of Education make any amendments to budget proposals, then the Legislative Council shall not thereafter increase the size of any such amended budget proposal.

6-25 Annual Town Budget Referendum.

(a) The proposed Town Budget shall be submitted for adoption at a referendum to be held on the fourth Tuesday of April between the hours of 6:00 A.M. and 8:00 P.M. (the "Annual Town Budget Referendum"). Notice of the Annual Town Budget Referendum and any subsequent referenda, as may be needed, and the proposed Town Budget together with the mil rate estimated to be necessary to fund said budget, shall be filed by the Legislative Council with the Town Clerk and noticed according to Subsection 1-25(b) at least five (5) days prior to the Annual Town Budget Referendum. At the Annual Town Budget Referendum, the proposed Town Budget shall be voted on as two appropriations; one for the Board of Selectmen, and one for the Board of Education. The two appropriations shall be approved individually by a majority vote. The questions on the Annual Town Budget Referendum ballot shall be as follows:

Shall the sum of $_____ be appropriated for the Board of Selectmen for the fiscal year?

Shall the sum of $_____ be appropriated for the Board of Education for the fiscal year?

The Annual Town Budget Referendum ballots shall include two advisory questions as follows:

If the proposed sum of $_____ for the Board of Selectmen is not approved, should the revised budget be higher?"

Yes_____

No_____

If the proposed sum of $_____ for the Board of Education is not approved, should the revised budget be higher?"

Yes_____

No_____

(b) In the event one appropriation fails and one is approved, the appropriation that is approved shall be considered adopted. In the event that a majority of those voting do not approve one or both appropriations of the proposed Town Budget, the Legislative Council shall amend only the non-approved appropriation or appropriations of the budget.

(1) The Legislative Council shall reconsider and amend the proposed Town Budget within seven (7) calendar days. When amending the Board of Selectmen Budget, the Legislative Council shall confer with the First Selectman and members of the Board of Selectmen. When amending the Board of Education Budget, it shall confer with members of the Board of Education. The Legislative Council shall request additional financial recommendations from the Board of Finance.

(2) The Legislative Council shall act on changes to a proposed Town Budget not approved, in whole or in part, at a budget referendum as follows:

(i) It shall have the power by a majority of at least six (6) affirmative votes to reduce any item or increase any item up to the Recommended Board of Finance Budget. To increase any item above the Recommended Board of Finance Budget shall require a majority of at least eight (8) affirmative votes;

(ii) The Legislative Council may only add or increase items up to the amounts included in the proposed Board of Selectmen and the Board of Education Budgets, inclusive of any amendments made in Subsection 6-20(f).

(3) The amended proposed Town Budget shall be filed with the Town Clerk and presented for adoption by vote at a referendum, pursuant to Subsection 6-20(a), not more than fourteen (14) days following the date the proposed Town Budget was filed with the Town Clerk. The ballot for each successive referendum shall include the applicable advisory question(s).

(c) When an appropriation of the proposed Town Budget is approved by referendum vote, the action is final and not subject to additional referenda. Similarly if one or both appropriations of the budget fail, Subsection 6-25(b) shall be repeated until both appropriations are approved by referendum vote.

(d) When a part or parts have been approved by majority vote, the Board of Selectmen and the Board of Education shall amend the proposed Board of Selectmen or the proposed Board of Education Budget to reflect the voter approved appropriations. Said amended budgets shall be available for public inspection.

(e) In the event a Town Budget has not been adopted by July 1st, the Town may levy, collect and expend any monies in the manner provided for in the General Statutes.

6-26 Local Questions on Ballot.

(a) The Legislative Council, with a majority vote of at least six (6) affirmative votes, may place local questions on the Annual Town Budget Referendum ballot.

6-30 Laying of Taxes.

(a) Following the adoption of the Town Budget for the next fiscal year, the Legislative Council shall meet and, with due provision for estimated and uncollectible taxes, abatements and corrections, shall lay such tax on the last completed Grand List at a mil rate that shall be sufficient, with the income from other sources, to meet the estimated expenses of the Town for the next fiscal year. The tax laid shall be based on facts known and estimates made at the time the Legislative Council acts and may be different from the mil rate estimated prior to the Annual Town Budget Referendum or any subsequent referendum even though the budget adopted is the same as the budget recommended to the Annual Town Budget Referendum or any subsequent referendum.

(b) The Tax Collector shall collect the tax in accordance with the General Statutes. Taxes shall be delinquent and interest charged in accordance with the General Statutes and any amendments thereto. Real estate tax bills shall be due and payable in 2 semi-annual installments, July 1 and January 1.

6-35 Special and Emergency Appropriations.

(a) A "Special Appropriation" is any appropriation of additional funds made during a fiscal year that is supplemental to an adopted Town Budget or capital project. An "Emergency Appropriation" is an appropriation required for an unforeseen or extraordinary event or threat to public health, safety, or welfare. The Board of Finance shall make a recommendation regarding a proposed Special Appropriation, but such a recommendation is not required for an Emergency Appropriation.

(b) A request for an Emergency Appropriation may be initiated by the First Selectman or by the Legislative Council. A request for a Special Appropriation may be initiated by the First Selectman with the approval of the Board of Selectmen, by the Board of Education, or by the Legislative Council. The request shall include an estimate of the funds required, the reasons therefore, and a proposed method of financing. Methods of financing include, without limitation, issuing notes or bonds of the Town or laying a special tax on the Grand List last completed. The Finance Director shall prepare a Financial Impact Statement for requests for Special Appropriations.

(c) If the First Selectman initiates an Emergency Appropriation request, the appropriation may be approved by a majority vote of the Legislative Council. If initiated by the Legislative Council, the Emergency Appropriation must be approved by the affirmative vote of at least eight (8) members of the Legislative Council.

(d) The Legislative Council shall request from the Board of Finance a recommendation as to whether or not a Special Appropriation should be made. The Board of Finance shall provide such recommendation within 90 days of the request. The Legislative Council may grant up to an additional 90 days upon request. After said number of days, the Council may act on the request without a recommendation from the Board of Finance.

(1) The Legislative Council shall have the power to approve, without referendum, Special Appropriations in an amount not in excess of $1,500,000. The total of Special Appropriations approved by the Legislative Council for all purposes during a fiscal year shall not exceed an amount equal to one mil on the most recently completed Grand List.

(2) The Legislative Council shall have the power to approve, without referendum, Emergency Appropriations in a cumulative amount for the fiscal year not in excess of an amount equal to one mil on the most recently completed Grand List. Said amount approved by the Legislative Council shall be cumulative as to the fiscal year. Upon approval by the Legislative Council of Emergency Appropriations beyond said one mil, approval by referendum is required.

(3) Only dollars sourced from property tax revenue and charges for services revenue shall be counted as part of the caps and limits on Special and Emergency Appropriations.

(e) The Legislative Council shall have the power to make Special Appropriations of any amount that are necessary to implement agreements reached through the process of collective bargaining.

(f) The Legislative Council shall recommend to a Town referendum all Special and Emergency Appropriations that equal or exceed the Legislative Council's authority.

(g) The Board of Finance shall recommend to the Legislative Council a method of financing the Special or Emergency Appropriation that shall be included by the Board of Selectmen in the warning of the referendum. In the case of an Emergency Appropriation and the Board of Finance is unable to make such recommendation, the Finance Director may make said recommendation.

(h) If a Special or Emergency Appropriation is voted for a purpose requiring the expenditure or encumbrance of funds during a fiscal year for which an annual budget has been adopted but the tax has not yet been laid in accordance with Subsection 6-30(a) of this Charter, it may be financed by being included in the mil rate for said fiscal year.

6-40 Grants or Other Financial Assistance.

(a) Grants and other forms of financial assistance, whether from the State of Connecticut, the United States or any other source, shall be subject to review for their financial impact on the Town. The Finance Director or the Town Department requesting a grant or other form of financial assistance shall submit a Financial Impact Statement to the Board of Finance and the Legislative Council that evaluates the impact of the commitments and the conditions required of the Town by the grant or financial assistance on present and future Town Budgets, Town Plans for Development and Capital Improvement Plans. The Impact statement shall be submitted and reviewed before any action is taken that commits the Town to accept said grant or financial assistance.