A.
The Township Manager shall submit to Council a recommended budget, together with budget message as provided in § 5-31.
B.
Council shall
adopt a balanced operating plan and budget and a capital plan and
budget which shall reflect the policies and objectives established
by Council, encompass all Township funds and activities and specify
a total of expenditures not to exceed estimated revenues from all
sources to be received in the course of normal governmental activity,
but excluding any extraordinary income not contracted for at the date
of adoption. Available surpluses from prior years may be included
with estimated revenues.
The financial planning and municipal budget shall be in the
form and detail as Council shall direct and, at a minimum, shall contain
the following:
A.
An operating
plan of revenue and expenditures for the next two fiscal years which
shall contain, as a minimum, the amounts to be appropriated for each
activity, stated as personal services, contractual services, material,
supplies, equipment and such additional classes as Council may prescribe.
The first year of the plan shall be in detail and shall constitute
the operating budget. The second year of the plan shall be advisory
for the purpose of long-range planning and may be stated in general
categories only.
B.
A capital
plan for the next five or more fiscal years and shall contain, as
a minimum, all proposed capital improvements identified by project,
the year of acquisition or construction, proposed funding and the
impact upon the operating expenses, debt structure and borrowing limitations
of the Township. The first year of the plan shall be in detail and
shall constitute the capital budget. The remaining years of the plan,
except where capital expenditures are approved, shall be advisory
for the purpose of long-range planning and may be stated in general
categories only. The capital budget may be financed from appropriations
of current revenues or moneys borrowed as authorized by the First
Class Township Code or general law. All appropriations for the capital
budget shall lapse at the end of the fiscal year, but sufficient amounts
to complete projects in progress may be appropriated in the budget
for the following year.
C.
The financial
plan and budget required herein shall include an explanation in terms
of programs, projects and services to be provided and the funding
thereof.
D.
The budget
shall be presented and published in a simplified, plain language format,
identified and labeled so as to be clear and understandable.
A.
The Township
Manager shall present to Council the proposed plan and budget and
an accompanying budget message not later than November 15th of the year before which such budget shall apply.
B.
The Township
Manager’s budget message shall explain the programs to be undertaken
and their financial implications. 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 Township’s financial
position; include the tax levies necessary to produce anticipated
revenues; and include such other material as Council deems desirable.
The budget as recommended by the Township Manager and adopted
by Council shall be balanced.
Advertising and public hearings: After the Township Manager’s
recommended budget message is given to Council and after the completion
of changes directed by Council, if any, Council shall cause to be
published in one or more newspapers of general circulation within
the Township:
A.
The proposed
budgets or the times and places where copies of the proposed budgets
shall be available for inspection.
B.
Notice of
a public meeting, with the date, time and place specified, at which
said budgets will be considered by Council, which meeting shall constitute
the first reading of the budgets and shall take place during the month
of November prior to the fiscal year within which such budgets shall
apply. At such public meeting, the public shall be afforded the opportunity
to comment.
A.
During January
next following any municipal election, Council may direct the Township
Manager to submit an amended budget to Council for its consideration
and adoption as an amended budget, which adoption shall not be later
than February 15 of the same year.
B.
Council may
make supplemental appropriations and authorize the transfer within
the same fund on any unencumbered balances in accordance with the
applicable provisions of the First Class Township Code.
Council shall establish a classification of accounts or funds
to be used in any financial plan, budget and report consistent with
all applicable laws and sound financial administration.
A.
The independent
auditors shall prepare and submit the annual financial statement of
the Township within 105 days following the end of the fiscal year.
Such statement shall be prepared in accordance with generally accepted
accounting principles applicable to governmental units.
B.
Financial
reporting required under the Optional Plans Law, the First Class Township
Code and general law, including but not limited to financial reports
to the Pennsylvania Department of Community Affairs, shall be prepared
and filed in accordance with the applicable provisions of such laws.
A.
To meet the
financial statement requirements as defined in this article, the statutory
financial reporting requirements of the Commonwealth of Pennsylvania
and the monthly and financial operating reporting requirements of
the Township, the following records of accounts for each Township
fund shall be maintained:
(1)
(2)
General
ledger. The basic objectives served by the general ledger are to provide
summary information necessary to show the financial condition and
operations of each Township fund:
B.
Each asset
and liability account shall be reconciled monthly to the details in
the subsidiary and other ledger records.
C.
It shall
be the responsibility of the Finance Officer to prepare and maintain
the records of account.
D.
The Finance
Officer shall be responsible for preparing internal monthly financial
statements in a form prescribed by Council and in accordance with
good financial reporting practices.
The Finance Officer, together with the Township Manager, shall
have the authority to invest, redeem and reinvest funds available
but not immediately required for Township operations, within the limits
of programs previously approved by Council. Such investment shall
be limited to authorized investments for Township funds as set forth
in the applicable provisions of the First Class Township Code [53
P.S. § 56705.1(d)]. It shall be the responsibility of the Finance
Officer, together with the Township Manager, to maximize investment
revenues consistent with applicable laws and minimum investment risks.
A.
No payment
of funds shall be made unless provided for in the budgets or otherwise
authorized by Council.
B.
All checks,
drafts or other orders of payment, except checks drawn upon the payroll
fund, shall bear at least three of the signatures of the Township
Manager, Finance Officer, Council President, Council Vice-President
or Township Secretary. A facsimile signature may be used for the President
of Council with his written approval.
C.
All checks,
drafts or other orders of payment against the payroll fund shall bear
the signature of the Township Manager.
A.
The Township
Manager shall establish a purchasing system which shall provide the
regulations, policies and procedures covering the acquisition of goods
and services required by all departments in the Township, subject
to the provisions of the First Class Township Code and this chapter.
B.
Purchases
and contracts in excess of the amount from time to time established
by the First Class Township Code for noncompetitive bidding shall
be in writing and approved by ordinance or resolution of the Council
and, except where specifically stated otherwise in the First Class
Township Code, shall be made through competitive bidding.
C.
The rules
and regulations governing competitive bidding shall follow procedures
as set forth in the First Class Township Code.
D.
Bid procedure.
All bids shall be firmly sealed in an envelope and labeled to indicate
the specific purchase for which the bid is submitted. All bids should
be read at an advertised public meeting. All bid openings shall be
open to the public. Any bids received after the bid opening has commenced
shall be returned to the bidder unopened. Upon completion of the bid
opening, the Township Manager and administrative staff shall analyze
the bids for conformance with the specifications and procedures and
recommend to Council the lowest responsible bid or the rejection of
all bids when in the best interest of the Township.
All contracts of the Township and the procedures for entering into such contracts shall be in accordance with Article XVIII, Contracts, of the First Class Township Code.[1]
[1]
Editor’s Note: See 53 P.S. § 56801 et seq.
A.
The sale
of real estate owned by the Township shall be in conformity with the
applicable provisions of the First Class Township Code.
B.
The sale
of personal property owned by the Township with a sale value of more
than $200 shall be in conformity with the applicable provisions of
the First Class Township Code.
C.
The Township
Manager shall have the authority, with consent of Council, to dispose
of surplus personal property owned by the Township with the sale value
of less than $200 in the manner most beneficial to the Township.
The accounts of the Township shall be audited annually by an
independent auditor who shall be a certified public accountant registered
in Pennsylvania or a firm of certified public accountants so registered.
The independent auditor shall be appointed annually by resolution
before the end of May of each fiscal year. Said auditor shall make
an independent examination of all the accounts and related accounting
records of the Township for the fiscal year then closing. Such independent
auditor shall have and possess all the powers and perform all the
duties provided for elected auditors under the First Class Township
Code. The compensation of such appointed independent auditor shall
be fixed by Council from time to time.
A.
The following
officials and employees shall deliver a fidelity bond or bonds to
the Township with a surety or sureties approved by Council, conditioned
upon the faithful performance of their official duties and in such
amounts as specified:
B.
All such
bonds shall be approved by the Township Solicitor as to form and sufficiency.
The Township shall pay the cost of all such bonds.
The following financial policies shall be followed in the administration
of the fiscal affairs of the Township, to the extent that they are
not inconsistent with the applicable provisions of the Optional Plans
Law, the First Class Township Code or general law:
A.
Financial
policies which will help Township officials view financial management
from an overall, long-range vantage point to make effective financial
decisions.
B.
Operating
budget policies.
(1)
The Township
shall pay all current expenditures with current revenues.
(2)
The budget
should provide for adequate maintenance of capital plant and equipment
and for orderly replacement.
(3)
The Township
shall update expenditure projections annually for the next five years.
Projections will include operating costs of future capital improvements
that are included in the capital budget.
C.
Revenue policies.
(1)
The Township
Manager shall project revenues for the next five years and will update
this projection annually. Each existing and potential revenue source
will be reexamined annually.
(2)
The Township
Manager, by action of Council, shall establish all user charges and
fees at a level that supports the costs of providing the service.
The Township shall annually recalculate the full costs of activities
supported by user fees to assess the impact of inflation and other
cost increases.
D.
Improvements
and budget policies.
(1)
The Township
Manager shall develop a five-year plan for capital improvements and
submit same to Council and shall update it annually on the basis of
the Township’s comprehensive and functional plans.
(2)
Council
shall enact an annual capital budget on the basis of the Multi-Year
Capital Improvement Plan. Future capital expenditures necessitated
by changes in population, real estate development or the economic
base shall be calculated and included in capital budget projects.
E.
Debt policies.
(1)
The Township
should confine long-term borrowing to capital improvements or projects
that cannot be financed from current revenues.
(2)
The Township
should endeavor to keep the average maturity of general obligations
at or below 10 years.
(3)
The Township
should not use long-term debt for current operations.
F.
Reserve policies.
(1)
The Township
should establish an emergency reserve to pay for needs caused by unforeseen
emergencies. This fund will be estimated on the basis of the Township’s
contingency plan, but it should not be maintained at less than 3%
of the general operating fund.
(2)
The Township
should establish an equipment reserve fund and will appropriate funds
to it annually to provide for timely replacement of equipment. The
amount of $50,000 should be added annually to this fund commencing
at such time as the Township’s revenues permit, until there
is an unencumbered reserve of no less than $200,000. The amount in
the reserve should be maintained at a minimum of $200,000.
