[HISTORY: Adopted by the Town Council of
the Town of Smithfield 1-27-1976 (Ch. 2, Art. III, Div. 2, of the
1985 Code of Ordinances); amended in its entirety 3-19-2024 by Ord. No. 2024-4. Subsequent amendments noted where applicable.]
The following terms, when used in this chapter, shall have the
meanings ascribed to them in this section, except where the context
clearly indicates a different meaning:
Refers to the numerical code assigned to each element of
Town government to identify that element's approved portion of
the total budget, as well as to indicate the general accounting category
for expenditures charges during the fiscal year.
Refers to the numerical code assigned to each subcategory
of each budget account to identify categorically the budget amount
applicable to that subaccount, as well as to indicate the general
accounting subcategory for expenditures charges during the fiscal
year.
This chapter is adopted for the purpose of establishing a financial
management system for the documentation and control of the approved
Town budgets on an account and subaccount basis.
A.
The Town Treasurer is authorized to execute the responsibilities
assigned and to promulgate procedures deemed necessary to implement
the provisions and intent of this chapter.
B.
The Town Council reserves the authority to render decisions on any
and all matters included in, or related to, this chapter and its implementation.
Such decisions shall be final and binding on all parties involved,
unless subsequently found to be in violation of the Council's
delegated authority, or unless subsequently changed by the Council.
A.
Town department heads, office supervisors and all other persons responsible
for the preparation and execution of any portion of the annual budget
of the Town shall be responsible for:
(1)
Submitting annual budget requests which project the needs of the
submitting element for the fiscal year, by account and subaccount
categories, as accurately as possible;
(2)
Executing their approved portions of the budget in such a manner
that overexpenditure of any subaccount is precluded;
(3)
Obtaining approval of the Town Council to transfer funds from one
subaccount to another prior to any subaccount being overexpended;
in this respect no expenditures shall be committed against any subaccount
if such commitment would result in overexpenditure of that subaccount.
Transfer of funds from one subaccount to another, or from one account
to another, or any combination thereof, shall in all cases be with
the prior approval of the Town Council only; disapproval of such a
request shall be binding on the status of any and all subaccounts
involved; and
(4)
Ensuring that expenditures made from, or commitments made against,
any subaccount are appropriate to the category of the subaccount cited
in the transaction.
B.
The Town Treasurer shall be responsible for:
(1)
Establishing a budget accounting system in such a manner as to identify
every budget account by subaccount category and reflecting the amount
of funds allocated to each subaccount at the start of each fiscal
year. Such subaccount categories shall be defined, and the amount
of funds authorized for each, by the Town Council prior to the start
of any fiscal year;
(2)
Maintaining continuing records of expenditures from each subaccount,
for each account, in such a manner as to reflect an accurate balance
in each subaccount on a monthly basis;
(3)
Informing the Town Council, in writing, by the 10th day of each month,
of any and all subaccounts, by account identification as well, which
have been overexpended, or, in the Treasurer's judgment, may
be overexpended before the end of the fiscal year if not carefully
administered. In addition, the Treasurer shall inform the person responsible
for the accounts involved of the situation and of the report being
rendered to the Town Council, prior to the report being submitted;
(4)
Transferring funds from one account to another, from one subaccount
to another or any combination thereof, only by prior approval, in
writing, from the Town Council; and
(5)
Reviewing each expenditure document submitted for assurance that
the purpose of the expenditure is in consonance with the subaccount
category against which the expenditure has been recommended by the
submitter. In those cases where the expenditures and the recommended
subaccount under which the expenditure has been identified are not
considered compatible, the Treasurer shall attempt to resolve the
issue with the submitting element; if resolution cannot be made, the
matter shall be referred by the Treasurer to the Town Council for
decision, with the submitter so prior informed.
C.
The Town Council shall be responsible for:
(1)
Providing the Town Treasurer with the account and subaccount categories,
with authorized budget amounts applicable to each, prior to the start
of any fiscal year;
(2)
Receiving reports from the Town Treasurer, by the 10th of each month,
on the overexpenditure or potential overexpenditure of subaccounts,
and taking appropriate action thereon;
(3)
Making decisions on requests for transfer of funds from one account
to another, from one subaccount to another or any combination thereof;
such decisions shall be documented in writing; and
(4)
Making decisions on any matters brought to its attention by the Treasurer
in regard to any unresolved subaccount classification issues, or any
other matter dealing with this chapter requiring decision.
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. School Committee estimates, shall be provided to the Town Manager, no later than the third Monday in February. These estimates, accompanied by a message from the Town Manager, shall be submitted to the Budget and Financial Review Board on or before March 1, which Board 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 Board 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. See Town Charter § C-5.03.
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. See Town Charter § C-5.04.
A.
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 the Town 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 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
fiscal years outlined above 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.
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 15. See Town Charter § C-5.06.
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 increases 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. See Town Charter § C-5.07.
A.
A Capital Reserve Fund and a Land Trust Reserve Fund have been established
by the Town Charter. 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.
B.
Beginning in fiscal year 2020, the undesignated fund balance shall be 8% of the subsequent year's appropriation; 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 Reserve Fund shall be considered as part of the annual budget adoption. See Town Charter § C-5.08.
To implement the adopted budget, the Town Council shall adopt,
prior to the beginning of the ensuing fiscal year:
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 of the Town Charter. 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 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 appropriations, 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 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.
See Town Charter § C-5.10.
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 years pass without any disbursement from or encumbrance of the appropriation. See Town Charter § C-5.11.
The Town Council shall provide by resolution the procedures for administering the budget. See Town Charter § C-5.12.
A.
No payment for any item over $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 section 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 section 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.
B.
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. See Town Charter § C-5.13.
