[HISTORY: Adopted by the Borough Council of the Borough of Downingtown 10-13-1993 by Ord. No. 93-10. Amendments noted where applicable.]
The Director of Administration and Finance shall, at the time of submitting the proposed budget to Council, submit, as an annex to the budget, financial projections for a period of at least three additional years, such projections beyond the year budgeted to be advisory only for the purpose of long-range planning. The projections shall include:
Comparative figures for actual and estimated revenues and expenditures for the current fiscal year and actual revenues and actual expenditures for the preceding fiscal year.
The proposed operating budget for the next fiscal year, in such form as Council shall prescribe.
The forecast of revenue and expenditures for a period of at least three additional years, individually stated, to be advisory only for the purpose of long-range planning. The information to be provided shall be stated in line item format only.
A capital program as further set forth below, including the proposed method of financing each capital project or purchase, but in no case less than the next five fiscal years; a schedule for the amortization of all existing capital projects; and proposed funding for any proposed new capital projects.
The Director of Administration and Finance shall cause the appropriations voted by Borough Council to be entered in the accounting records of the Borough and shall approve no contract or expenditure that would exceed the unencumbered balance of appropriations in any account. Council may at any time amend the operation budget, but changes in appropriations, either increases or decrease, shall be made only pursuant to an ordinance authorizing such changes. Supplemental appropriations may be made by Council in the event that revenues are found and certified by the Director to exceed estimates in the budget. If revenues are found and certified by the Director to fall short of estimates in the budget, the Director shall recommend reductions in appropriations to offset the deficiency in revenues, and the Council shall make necessary adjustments in the appropriations to maintain a balanced budget. All unexpected appropriations shall lapse at the end of the fiscal year.
The budget proposed by the Director and the budget subsequently adopted by Council shall be balanced so that appropriations shall not exceed the estimated revenues and available surplus. In making revenue estimates, the Director shall show the amounts anticipated from existing taxes and service charges at existing rates, and the increase and decrease to result from any proposed changes in the rates.
At the time the Director submits the proposed operating budget to Council, he or she shall also submit to Council a proposed capital program incorporating a listing of the capital projects and the amounts required to be appropriated for each, covering a period of not less than five years, the first year of which shall be in detail and constitute the capital budget for the next fiscal year. The capital program shall be a projection of construction or acquisition of capital assets and the means of their financing. The capital program shall set forth all proposed capital improvements, identified by project; the year at which acquisition and construction is to be scheduled; the means by which the capital program is to be financed; the effect of any proposed capital expenditures on future operating expenses; and the effect of any proposed new indebtedness on the amortization of existing debt and debt limits.
The Borough will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvement will be projected and included in operating budget forecasts.
The Borough will maintain all its assets at a level adequate to protect the Borough's capital investment and to minimize future maintenance and replacement costs.
The Borough Director will project the Borough's vehicle equipment replacement and maintenance needs for not less than five years and will update this projection each year. From this projection, a maintenance and replacement schedule will be developed and followed.
The Borough Director will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to Council for approval.
The Borough Director will determine the least costly financing method for all new projects.
The capital program and the capital budget shall be adopted by Borough Council only after the advertisement and public hearing in the same manner as provided for the adoption of the operating budget. The capital budget may be financed from appropriation of current revenues or moneys borrowed as authorized by applicable law. The Director shall control expenditures in the capital budget in the same manner as provided for in the operating budget. Borough Council may amend the capital budget at any time, but, before doing so, it must amend the capital program.
All appropriations for the capital budget shall lapse at the end of the fiscal year, but sufficient amounts to complete proposed projects and projects in progress can be appropriated in the budget for the following year.
Council shall provide for an independent annual audit of Borough receipts, expenditures, accounts and reports, including the accounts of the Treasurer, by a Pennsylvania certified public accountant or a certified public accounting firm, experienced in municipal finance, having no personal interest, direct or indirect, in the fiscal affairs of the Borough or any of its elected or appointed personnel or employees. Council may provide for more frequent audits at its discretion. The results of the annual audit and a financial statement of the fiscal affairs of the Borough, with the results of the independent auditor's survey of internal control and any recommendation thereon, shall be included in an annual report of the Director. A summary of the annual audit of the independent auditor, including any recommendation made with respect to the survey of the internal control, shall be available for public inspection at the Borough Office. The annual audit shall be conducted in accordance with generally accepted auditing standards. The financial report shall be prepared in accordance with generally accepted accounting principles.