Introduction.
This article provides for the development of a comprehensive financial management program that will permit the borough to maintain budgetary, cash, long term and service level solvency in the short and longer term by adherence to nationally recognized fiscal practices for public sector organizations. To assure the integrity of the financial management process, the borough recognizes its responsibility to employ a professional finance official to work in conjunction with the Borough Manager to effectively fulfill the financial management function.
The budget and the budget approval process constitute the most visible and important activity undertaken by the government. The annual operating budget and multi-year capital plan are the products of the translation of disparate and often conflicting community goals and objectives into comprehensive financial documents. The financial planning process establishes a set of short-and long-term goals for the community and aids in resolving disagreements that arise in the execution of the operations of the government.
The complete financial plan involves two major elements: 1) the current annual budget, and 2) the multi-year capital program which is coordinated with the annual budget.
[Amended 7-31-2025 by Ord. No. 1663]
The fiscal year of the borough shall begin on the first day of January and end on the last day of December.
[Amended 7-31-2025 by Ord. No. 1663]
The Borough Manager's message shall explain the budget both in fiscal terms and in terms of the work programs, linking those programs to organizational goals and community priorities. It shall outline the proposed financial policies of the borough for the ensuing fiscal year and the impact of those policies on future years. It shall 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 borough's debt position, including factors affecting the ability to raise resources through debt issues, and include such other material as the Borough Manager deems desirable.
[Amended 7-31-2025 by Ord. No. 1663]
Budgets proposed for all of the borough's funds shall provide a complete financial plan of all funds and activities for the ensuing fiscal year and, except as required by law or this Charter, shall be in such form as the Borough Manager deems desirable or the Borough Council may require for effective management and an understanding of the relationship between the budget and the borough's strategic goals. The budget shall begin with a clear general summary of its contents; shall show in detail all estimated income, indicating the proposed property and earned income tax levies, and all proposed expenditures, including debt service, for the ensuing fiscal year and shall be so arranged as to show comparative figures for actual and estimated income and expenditures of the current fiscal year and actual income and expenditures of the preceding fiscal year. It shall indicate in separate sections:
(1) 
the proposed goals and expenditures for current operations during the ensuing fiscal year, detailed for each fund by department or by other organization unit, and program, purpose or activity, method of financing such expenditures, and methods to measure outcomes and performance related to the goals;
(2) 
proposed longer-term goals and capital expenditures during the ensuing fiscal year, detailed for each fund by department or by other organization unit when practical, the proposed method of financing each such capital expenditure, and methods to measure outcomes and performance related to the goals; and
(3) 
the proposed goals, anticipated income and expense, profit and loss for the ensuing year for each utility or other enterprise fund or internal service fund operated by the borough, and methods to measure outcomes and performance related to the goals. For any fund the total of proposed expenditures shall not exceed the total of estimated income plus carried forward fund balance exclusive of reserves.
(a) 
Notice and Hearing. The Council shall publish the general summary of the budget and a notice stating:
(1) 
the times and places where copies of the message and budget are available for inspection by the public, and
(2) 
the time and place, not less than two weeks after such publication, for a public hearing(s) on the budget.
(b) 
Amendment Before Adoption. After the public hearing the Council may adopt the budget with or without amendment. It may add or increase programs or amounts and may delete or decrease any programs or amounts, except expenditures required by law or for debt service or for an estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than total estimated income.
(c) 
Adoption. The Council shall adopt the budget on or before the 31st day of December of the fiscal year currently ending. If it fails to adopt the budget by this date, spending levels shall continue as adopted for the previous year for a period not to exceed 60 days.
(d) 
"Publish" defined. As used in this article, the term "publish" means to print in the contemporary means of information sharing, which includes but is not limited to, one or more newspapers of general circulation, and, if available, in a web site.
To implement the adopted budget the Council shall adopt, prior to the beginning of the fiscal year:
(1) 
a motion to authorize appropriations by department, fund, service, strategy or other organizational unit and authorizing an allocation for each program or activity;
(2) 
tax levy ordinances authorizing the property and non-property tax levy or levies and setting the tax rate or rates; and
(3) 
any other ordinances required to authorize new revenues or to amend the rates or other features of existing taxes or other revenue sources.
[Amended 7-31-2025 by Ord. No. 1663]
(a) 
Supplemental Appropriations. If during or before the fiscal year the Borough 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.
(b) 
Emergency Appropriations. To address a public emergency affecting the health, safety and welfare of the community or the public peace, the Council may make emergency appropriations. Such appropriations may be made by emergency ordinance in accordance with the provisions of Section 3.15. 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 or short term loans, which may be renewed from time to time, but the emergency loans and renewals of any fiscal year shall be paid or refinanced as long term debt not later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made.
(c) 
Reduction of Appropriations. If at any time during the fiscal year it appears probable to the 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 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 legislative action as it deems necessary to prevent or reduce any deficit and for that purpose it may by reduce or eliminate one or more appropriations.
(d) 
Transfer of Appropriations. At any time during or before the fiscal year, the Council may by resolution transfer part or all of the unencumbered appropriation balance from one department, fund, service, strategy or organizational unit to the appropriation for other departments or organizational units or a new appropriation. The Manager may transfer funds among programs within a department, fund, service, strategy or organizational unit and shall report such transfers to the Council in writing in a timely manner.
(e) 
Limitation; Effective Date. No appropriation for debt service may be reduced or transferred, except to the extent that the debt is refinanced and less debt service is required, 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.
[Amended 7-31-2025 by Ord. No. 1663]
No payment of any funds of the borough shall be made unless it is provided for in the budget and is approved by council. Payments of payroll and utility charges and other continuing legal obligations based on previously approved council actions or contracts may be made at the discretion of the Borough Manager. Directives for payment as approved by borough council shall be certified by the Borough Manager. Signatories to checks and drafts of the borough shall be two of the following: Mayor, Deputy Mayor when acting as Mayor, the Borough Manager, Treasurer and an administrative appointee of the Borough Manager.
The Council shall provide by ordinance the procedures for administration and fiduciary oversight of the budget to include but not be limited to the timely submission of monthly financial reports based on generally accepted accounting principles (GAAP) to Council and quarterly public presentations by the Manager to report on budget implementation and identify issues related to significant variances in budgeted to actual revenues and expenditures.
[Amended 7-31-2025 by Ord. No. 1663]
(a) 
Authorization. Council may authorize the borrowing of money for any purpose within the scope of powers vested in the borough by the Pennsylvania General Assembly, including revolving funds for municipal improvements, and for the issuance of bonds of the borough or other evidences of indebtedness. Council may pledge the full faith, credit and resources of the borough for the payment of the obligations created thereby.
(b) 
Limitation. When borrowing over one million dollars, a vote of the majority of Council plus one is required.
[Amended 7-31-2025 by Ord. No. 1663]
Council may provide for the temporary investment of borough funds in accordance with general statutes that identify investment instruments, insurance or collateralization requirements, and permit cooperative investment programs.
(a) 
Submission to Council. The Manager shall prepare and submit to the Council a multi-year capital program no later than two months (September 1) before the final date for submission of the budget.
(b) 
Contents. The capital program shall include:
(1) 
a clear general summary of its contents;
(2) 
identification of the long-term goals of the community;
(3) 
a list of all capital improvements and other capital expenditures which are proposed to be undertaken during the fiscal years next ensuing, with appropriate supporting information as to the necessity for each;
(4) 
cost estimates and recommended time schedules for each improvement or other capital expenditure;
(5) 
method of financing upon which each capital expenditure is to be reliant;
(6) 
the estimated annual cost of operating and maintaining the facilities to be constructed or acquired;
(7) 
a commentary on how the plan addresses the sustainability of the community and the region of which it is a part; and
(8) 
methods to measure outcomes and performance of the capital plan related to the long-term goals of the community.
(c) 
Annual Revision. The above shall be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition.
(a) 
Notice and Hearing. The Council shall publish the general summary of the capital program and a notice stating:
(1) 
the times and places where copies of the capital program are available for inspection by the public, and
(2) 
the time and place, not less than two weeks after such publication, for a public hearing(s) on the capital program.
(b) 
Adoption. The Council by resolution shall adopt the capital program with or without amendment after the public hearing and on or before the 15th day of October of the current fiscal year.
[Amended 7-31-2025 by Ord. No. 1663]
(a) 
Rates and Levies. Borough Council, concurrent with the adoption of the annual budget, shall by ordinance set tax rates and levies on the various subjects of taxation as permitted by law. Council shall determine the rates of all taxes levied by a vote of the majority of Council plus one.
(b) 
EIT Limitations. When setting Earned Income Tax (EIT) rates for borough residents, Borough Council shall not exceed an annual increase of more than .5% and shall not exceed an EIT rate of more than 2.5%.
(c) 
Property Tax Limitations. When setting real estate tax rate for general purposes, Borough Council shall not exceed 30 mills.
[Amended 7-31-2025 by Ord. No. 1663]
(a) 
Annual Audit. The Council shall provide for an independent annual audit of all borough accounts and may provide for more frequent audits as it deems necessary. An independent certified public accountant or firm of such accountants shall make such audits. Such audits should be performed in accordance with Generally Accepted Auditing Standards (GAAS) and Generally Accepted Governmental Auditing Standards (GAGAS).
(b) 
Audit Presentation. The independent auditor shall present a public review of the audit for the immediately preceding year.
(c) 
Audit Committee. The Council shall designate no fewer than three of its members to serve as an Audit Committee. This Committee shall:
(1) 
lead the process of selecting an independent auditor;
(2) 
direct the work of the independent auditor as to the scope of the annual audit and any matters of concern with respect to internal controls; and
(3) 
receive the report of the independent auditor and present that report to the council with any recommendations from the Committee.
(d) 
Professional Audit Services. The Council shall, using a professional services request for proposals (RFP) process, designate such accountant or firm annually, or for a period not exceeding five years, but the designation for any particular fiscal year shall be made no later than 30 days after the beginning of such fiscal year. The standard for independence is that the auditor must be capable of exercising objective and impartial judgment on all issues encompassed within the audit engagement. No accountant or firm may provide any other services to the borough during the time it is retained to provide independent audits to the borough. The Council may waive this requirement by a majority vote at a public hearing. If the state makes such an audit, the Council may accept it as satisfying the requirements of this section.
Copies of the budget, capital program, independent audits, and appropriation and revenue ordinances shall be public records and readily available to the general public.