[HISTORY: Adopted by the Mayor and Council
of the Town of Elsmere 3-10-1988 by Ord. No. 228. Amendments noted where
applicable.]
A system known as the "Budgetary Evaluation
Program" shall be installed.
A.
The first component of said program shall be a departmental
notification by the Finance Director of any budgeted line items approaching
80% of its yearly budget.
B.
Notification shall be served one month prior to reaching
the expectant eighty-percent mark, based on previous expenditures,
and the history of each line item in question.
C.
Notice shall be served to department heads and/or
directors, Mayor and Council and Town Manager simultaneously.
This program shall be used until the eighth
month of each fiscal year. At this time, a full review of the Town's
budget shall take place by the Mayor and Council, Town Manager, directors
and department heads, to determine current status of budget and possible
improvements to the management of tax dollars in the next fiscal period.
The purpose of having this program cut off and
budget review starting at the eighth month of each fiscal year is
as follows:
A.
During the ninth month of any fiscal year, all line
items of our total budget naturally should be approaching their respective
eighty-percent mark.
B.
The ending of the Budgetary Evaluation Program and
the beginning of an annual review is a consistent and reliable way
to evaluate all tax dollars expended during the fiscal year while
increasing the knowledge base for those who review and prepare future
budgets.
The second component of this process shall be
a procedure of response by the department heads and/or directors.
This component shall consist of an acknowledgment of receipt of notice,
a verification that said line item is approaching the eighty-percent
mark, or a statement of disagreement. This is to be sent to the Director
of Finance.
A.
If said line item can be assured by department heads
and/or directors that it will not exceed its budgeted amount, a simple
response of that fact shall be forwarded to the Finance Director,
Town Manager and Mayor and Council.
B.
If said line item can't be kept within its budgeted
amount, a response form should be completed stating reasons for over-expenditures,
methods to be used to curtail excessive spending, if any, and possible
ways to resolving the situation. If transferring from one line item
budget to another is one possible solution, this shall also be stated.
Transfers between line item budgets shall be
listed with account numbers and amounts to be transferred.
Response form shall be sent to the Finance Director,
Town Manager and Mayor/Council within one week of receipt of notification.
The Department shall have an oral presentation
prepared for the next scheduled work session of the Mayor/Council,
if the budgeted line item will exceed 100% of that fiscal year.
