[1]
Editor's Note: Former § C-40, Town Clerk, amended 5-13-1986, effective 6-22-1986, and § C-41, Powers and duties of Town Clerk, were repealed 5-25-2022 by Res. No. 2022-01, effective 7-14-2022.
[Amended 5-25-2022 by Res. No. 2022-01, effective 7-14-2022]
The Town Administrator shall provide a bond with such corporate surety and in such amount as the Commission by ordinance may require.
The Town shall operate on an annual budget. The fiscal year of the Town shall begin on the first day of July in any year and shall end on the last day of June in the following year. The fiscal year constitutes the tax year, the budget year, and the accounting year.
[Amended 5-25-2022 by Res. No. 2022-01, effective 7-14-2022]
The Commission, on such date as the ordinance determines but at least 45 days before the beginning of each fiscal year, shall review the budget submitted by the Town Administrator. The Commission will ensure that the budget provides a complete financial plan for the budget year, contain estimates of anticipated revenues and proposed expenditures for the upcoming budget year, and that the total of anticipated revenues equals or exceeds the total of proposed expenditures. The budget shall be a public record in the office of the Town Clerk, open to public inspection by anyone during normal business hours.
[Amended 8-26-2009 by Res. No. 2009-18, effective 10-6-2009]
Before adopting the budget the Commission shall consider the budget at a regular or special public meeting of the Commissioners. Said consideration of the budget shall take place after notice of said meeting, and the purpose thereof, is published at least once in a newspaper having general circulation within the municipality at least six days before said meeting. The Commission may insert new items or may increase or decrease the items of the budget. If the Commission increases the total proposed expenditures, it shall also increase the total anticipated revenues in an amount at least equal to the total proposed expenditures. The budget shall be prepared and adopted in the form of a resolution. A favorable vote of at least a majority of the total membership of the Commission is necessary for adoption of the budget.
No public money may be expended without having been appropriated by the Commission. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes named therein.
Any transfer of funds between major appropriations for different purposes must be approved in the form of a resolution by the Commission before becoming effective.
No officer or employee during any budget year may expend or contract to expend any money or incur any liability or enter into any contract which by its terms involves the expenditure of money for any purpose, in excess of the amounts appropriated for or transferred to that general classification of expenditure pursuant to this Charter. Any contract, verbal or written, made in violation of this Charter is null and void. Nothing in this section shall prevent the making of contracts or the spending of money for capital improvements to be financed in whole or in part by the issuance of bonds or other evidence of indebtedness, nor the making of contracts for lease or services for a period exceeding the budget year in which the contract is made.
[Amended 8-23-2017 by Res. No. 2017-05, effective 10-13-2017]
All appropriations lapse at the end of the budget year to the extent that they are not expended or lawfully encumbered. Any unexpended and unencumbered funds shall be considered a surplus at the end of the budget year and shall be either included in the anticipated revenues for the next budget year or otherwise included in a specific Town fund to be determined by the Town Commissioners.
[Amended 5-13-1986, effective 6-22-1986; 12-12-1989 by Res. No. 89-2, effective 1-31-1990; 8-23-2006 by Res. No. 2006-21, effective 10-12-2006; 5-25-2022 by Res. No. 2022-01, effective 7-14-2022]
All checks, drafts and withdrawals drawn on any account containing funds of the Town shall be signed by two authorized signers. The persons authorized to sign checks, drafts and withdrawals drawn on any account containing funds of the Town shall be the five Commissioners and the Town Administrator.
All real property and all tangible personal property within the corporate limits of the Town, or personal property which may have a situs there by reason of the residence of the owner therein, is subject to taxation for municipal purposes, and the assessment used shall be the same as that for state and county taxes. No authority is given by this section to impose taxes on any property which is exempt from taxation by any act of the General Assembly.
From the effective date of the budget, the amount stated therein as the amount to be raised by the property tax constitutes a determination of the amount of the tax levy in the correspondent tax year.
Immediately after the levy is made by the Commission in each year, the Town Clerk shall give notice of the making of the levy by posting a notice thereof in some public place in the Town. He or she shall make out and mail or deliver in person to each taxpayer or his or her agent at his or her last known address a statement of the amount of real and/or personal property with which the taxpayer is assessed, the rate of taxation, the amount of taxes due, and the date on which the taxes will bear interest. Failure to give or receive any notice required by this section shall not relieve any taxpayer of the responsibility to pay on the dates established by this Charter all taxes levied on his or her property.
The taxes provided for in § C-52 (Budget authorizes levy) of this Charter are due and payable on the first day of July in the year for which they are levied and are overdue and in arrears on the first day of the following October. They shall bear interest while in arrears at the rate as may from time to time be established by the Commission, provided that said rate does not exceed the maximum interest rate permissible under Maryland law, for each month or fraction of a month until paid. All taxes not paid and in arrears after the first day of the following January shall be collected as provided in § C-55 (Sale of tax-delinquent property) of this Charter.
[Amended 5-13-1986, effective 6-22-1986; 8-23-2017 by Res. No. 2017-05, effective 10-13-2017]
A list of all property on which the Town taxes have not been paid, or on which the Town has any lien for water, sewer, or other charges which have not been paid, and which are in arrears as provided by § C-54 (When taxes are overdue) of this Charter, shall be turned over by the Town Clerk to the official of Talbot County responsible for the sale of tax-delinquent property as provided by state law. All such property for which Town taxes, water, sewer, or other charges remain in arrears shall be sold for taxes by that county official, in the manner prescribed by state law.
All fees received by an officer or employee of the Town government in his or her official capacity shall belong to the Town government and be accounted for to the Town.
The financial books and accounts of the Town shall be audited annually as required by Maryland law.
During the first six months of any fiscal year, the Town may borrow in anticipation of the collection of the property tax levied for that fiscal year, and may issue tax anticipation notes or other evidences of indebtedness as evidence of such borrowing. Such tax anticipation notes or other evidence of indebtedness shall be a first lien upon the proceeds of such tax and shall mature and be paid not later than six months after the beginning of the fiscal year in which they are issued. No tax anticipation notes or other evidences of indebtedness shall be issued which will cause the total tax anticipation indebtedness of the Town to exceed 50% of the property tax levy for the fiscal year in which the notes or other evidences of indebtedness are issued. All tax anticipation notes or other evidences of indebtedness shall be authorized by ordinance before being issued. The Commission shall have the power to regulate all matters concerning the issuance and sale of tax anticipation notes.
[Amended 1-11-2006 by Res. No. 2005-24, effective 3-22-2006; 5-3-2006 by Res. No. 2006-13, effective 6-22-2006]
A.
In addition to the authority provided for in § C-58 of this Charter with respect to tax anticipation borrowings, the Town shall have the power to borrow money for any proper public purpose and to evidence such borrowing by the issuance and sale of its general obligation bonds, notes or other evidences of indebtedness in the manner prescribed in this section.
B.
As determined by or provided for in the authorizing ordinance and/or resolution of the Commissioners, the general obligation bonds, notes or other evidences of indebtedness of the Town may be issued and sold:
(1)
By private (negotiated) sale without advertisement or solicitation of competitive bids or by the solicitation of competitive bids at public sale after publication or dissemination of the notice of sale, as determined by the Commissioners by ordinance or resolution;
(2)
For a price or prices that may be at, above or below the par value of the bonds, notes or other evidences of indebtedness;
(3)
At a rate of interest or rates of interest that may be fixed or variable or may be determined by a method approved or provided for by the Commissioners; and
(4)
For cash or other valuable consideration.
C.
The ordinance or resolution that authorizes the general obligation bonds, notes or other evidences of indebtedness may provide for their redemption prior to maturity, at such price or prices at, above or below par value as determined or provided for by the Commissioners, and for the manner of publishing or otherwise giving notice of such redemption.
D.
The Town may enter into agreements with agents, banks, fiduciaries, insurers or others for the purpose of enhancing the marketability of or as security for the general obligation bonds, notes or other evidences of indebtedness and for securing any tender option granted to holders thereof.
E.
The official signatures and seals affixed to any of the general obligation bonds, notes or other evidences of indebtedness may be imprinted in facsimile.
F.
In connection with any sale of general obligation bonds, notes or other evidences of indebtedness by the solicitation of competitive bids at public sale, any such competitive bids may be delivered by electronic and/or facsimile means and/or by any other then-commercially reasonable manner for the sale of municipal obligations at competitive bid; and any notice of sale may be published solely in summary form in a newspaper of general circulation in the Town and/or in a generally recognized financial journal such as The Bond Buyer, or any notice of sale may be disseminated solely in electronic form and/or by any other then-commercially reasonable manner for the sale of municipal obligations, as determined by the Commissioners by ordinance or resolution.
G.
Any resolution adopted by the Commissioners pursuant to this § C-59 may be introduced and adopted in a single session and shall not be subject to petition to referendum, notwithstanding the provisions of any other section of this Charter.
H.
In connection with the authorization of its general obligation bonds, notes or other evidences of indebtedness, the Town may pledge to the payment thereof, or provide that such obligations shall be payable in the first instance from, any other sources of revenue available to the Town.
I.
The power conferred on the Town under this § C-59 of the Charter shall be deemed to be additional and supplemental to any other general obligation borrowing authority granted to the Town by Maryland public general or public local law, and the Town may authorize, issue and secure any such general obligation debt in conformity with this Charter and/or any other applicable law.
K.
All general obligation bonds, notes or other evidences of indebtedness validly issued by the Town previous to the effective date of this Charter, as amended, and all ordinances and resolutions passed concerning them, are hereby declared to be valid, legal and binding and of full force and effect as if herein fully set forth.
The power and obligation of the Town to pay any and all bonds, notes, or other evidences of indebtedness issued by it under the authority of this Charter shall be unlimited and the Town shall levy ad valorem taxes upon all the taxable property of the Town for the payment of such bonds, notes, or other evidences of indebtedness and interest thereon, without limitation of amount. The faith and credit of the Town is hereby pledged for the payment of the principal of and the interest on all bonds, notes, or other evidences of indebtedness issued under the authority of this Charter, whether or not such pledge be stated in the bonds, notes, or other evidences of indebtedness, or in the ordinance authorizing their issuance.
All bonds, notes, or other evidences of indebtedness validly issued by the Town previous to the effective date of this Charter and all ordinances passed concerning them are hereby declared to be valid, legal and binding and of full force and effect as if herein fully set forth.
[Amended 9-8-1998 by Res. No. 1998-6, effective 10-28-1998; 9-27-2006 by Res. No. 2006-27, effective 11-17-2006; 5-25-2022 by Res. No. 2022-01, effective 7-14-2022]
All purchases and contracts for the Town government shall be made by the Commission. The Commission may provide by ordinance for rules and regulations regarding the use of competitive bidding and contracts for all Town purchases and contracts.
A.
Except as provided in § C-62B, C and D below, all expenditures for supplies, materials, equipment, construction of public improvements, or contractual service involving $5,000 or more shall be made on written contract. The Commission shall obtain sealed bids, in such manner as may be prescribed by ordinance, for all such written contracts. The written contracts shall be awarded to the bidder who offers the lowest or best bid, quality of goods and work, time of delivery or completion, and responsibility of bidders being considered. All such written contracts shall be approved by the Commission before becoming effective. The Commission may reject all bids. The Town at any time in its discretion may employ its own forces for the construction or reconstruction of public improvements without receiving bids. All written contracts may be protected by such bonds, penalties, and conditions as the Town may require.
B.
Purchases and contracts under $5,000 may be made by the Commissioners and/or the Town Administrator, provided the funds have been appropriated in the budget for the use intended.
C.
All contracts involving professional services, such as accounting, architecture, auditing, consulting, computer maintenance and support services, engineering, law, planning, and surveying, may not be subject to competitive bidding, but may be negotiated by the Town Administrator with the approval of the Commission or by the Commission itself.
D.
The Town may contract with any contractor who offers goods, services, insurance, or construction on the same terms as provided to (i) the State of Maryland; (ii) any other state of the United States of America; (iii) any county or local governments or agencies of the State of Maryland or any other state of the United States of America [the entities listed in (i), (ii) and (iii) shall collectively be referred to as “governmental entities”], which governmental entities have arrived at those terms through a competitive procurement procedure requiring bids, proposals from bidders, and analysis of responsive bids in accordance with the applicable laws of such governmental entities.
[Added 3-19-2008 by Res. No. 2008-03, effective 5-9-2008; amended 8-23-2017 by Res. No. 2017-05, effective 10-13-2017]
After the Town has ceased to own and ceased to have any responsibility for operating the St. Michaels electric distribution system (the "System"), after the Town has received all payments due to it relating to the lease and/or sale of the System, and after the Town has made all payments due from it relating to the System, then the balance of all such revenues, and the balance the Town's sinking fund relating to the System, after payment of all expenses of the Town relating to the termination of the lease of the System to Delmarva Power & Light Company and the sale of the System to Choptank Electric Cooperative, Inc., shall be transferred to the Town's general fund. The funds thus transferred to the Town's general fund shall be segregated and such funds, together with all earnings thereon, shall be used solely for such Town capital improvements, repairs and maintenance as deemed appropriate by the Town Commissioners from time to time.
[Added 8-23-2017 by Res. No. 2017-05, effective 10-13-2017; amended 5-25-2022 by Res. No. 2022-01, effective 7-14-2022]
The Town Commissioners shall segregate Town monies into separate funds to help ensure the Town's long-term financial stability. Upon the Town Administrator's recommendation, the Town Commissioners shall establish by resolution the balances maintained in such funds and the methods for maintenance. The following funds shall be established and maintained as the Town Commissioners deem appropriate from time to time:
A.
General Operating Fund. A fund used to account for all activity, assets and liabilities of the Town except those assigned for other purposes in another specific fund. This fund is the primary operating fund that contains uncommitted resources that may be used for the Town's general purposes.
B.
Repair and Replacement Fund. A fund used to cover anticipated expenses for the repair and replacement of Town facilities, equipment, and infrastructure, otherwise known as reserve elements, as identified in a formal reserve study, which may be updated from time to time at the Town Commissioners' discretion and may be further defined and described by resolution. This fund's purpose is to maintain adequate reserves for the repair, maintenance and replacement of Town assets over time.
C.
Capital Fund. A fund used for capital projects and improvements, including the acquisition of property and assets not accounted for in the Repair and Replacement Fund.
D.
Contingency Fund. A fund used to manage uncertain or unexpected emergencies, events, and risks.
E.
Water System Enterprise Fund. A fund used to manage the Town's water system finances. This fund may be used for all activity related to the Town's water system, including capital expenditures.