The fiscal year of the Town shall be the twelve-month period commencing on the first day of July.
The Department of Finance shall be responsible for maintaining and implementing itemized and transparent annual budgets for departments and agencies of the Town of Windham general government, the Windham Board of Education Windham pre-K to 12 Public School District, the Water Pollution Control Authority and the Water Commission. The Department of Finance shall be led by a Finance Director who shall provide centralized financial management services and reports to the Town Council, Board of Education and Board of Finance of the Town of Windham. The Financial Director shall report and be accountable to the Town Manager who shall provide the Financial Director with annual goals and objectives and perform timely performance reviews. The Department of Finance shall have an Associate Director empowered to act as "business manager" of the Windham District of Education with responsibility for financial accounts that are specific to that School District and for maintaining and implementing itemized and transparent annual education budgets. The Associate Director of Finance shall report to and be accountable to the Superintendent of Schools who in consultation with the Director of Finance shall provide the Associate Director with annual goals and objectives and perform timely performance reviews. The Director of Finance shall be able to review but not alter Town accounts which directly affect the Board of Education budget such as Educational Cost Sharing (ECS) and other grant funding from the State. Any instance of uncertainty regarding whether any Windham financial account should be overseen or managed by the Financial Director or Associate Director shall be determined by the Board of Finance after consultation with the Town Manager and Superintendent of Schools. In each calendar year there will be quarterly meetings of the Town Manager, Superintendent of Schools, chairpersons of the Board of Finance and Board of Education and the Mayor or Town Council chairperson or their designees with the Town Finance Director and Associate Director. The meetings will review the departmental operations and in particular the operation and performances of the various Town combined funds, such as but not limited to healthcare and workers compensation reserves. Upon the authorization of a query or investigation approved by a majority of the Board of Finance present and voting, the Chair of the Board of Finance or the Vice Chair or their designee shall have full and unfettered access forthwith to any and all financial records directly related to any such query or investigation. The Town shall be solely responsible for the compensation of the Finance Director and the Windham Board of Education shall be solely responsible for the compensation of the Associate Director of Finance.
The Town Manager shall lead and coordinate the work of directors of Town departments and agencies with the Department of Finance to develop preliminary annual budgets. With the exception of the Board of Education, the director of each Town department shall present their annual budget proposal to the Town Manager on or before January 15. This budget may include a detailed estimate of the expenditures to be made by such office or agency and of the revenues other than tax revenues, to be collected by such department or agency, in the next fiscal year. Such estimates shall be accompanied by a statement setting forth, in narrative or such other form as the Town Manager may prescribe, a program or programs showing services, activities and work accomplished during the current fiscal year and to be accomplished during the next fiscal year.
On or before February 28, the Town Manager shall present to a joint session of the Town Council and the Board of Finance a proposed annual budget for the next fiscal year. In addition to the proposed annual budget, the Town Manager shall present a program concerning proposed Town capital improvement projects for the next five (5) fiscal years, including those projects proposed to be undertaken during the next fiscal year and a method of financing the same.
On or before March 15, the Town Manager shall present to the Board of Finance the proposed budget and five-year capital improvement program as amended by the Town Council.
On or before March 15, the Board of Education shall submit its proposed annual budget for the next fiscal year and a five-year capital improvement program to the Board of Finance.
The Board of Finance shall hold one (1) or more public hearings at least two (2) weeks before the date of the annual budget meeting at which the public shall have an opportunity to be heard regarding the budget proposed for the next fiscal year. At any time prior to or following any such public hearing, the Board of Finance may revise the annual sum total of estimated itemized costs in the proposed budget of the Board of Education and of each other Town department as it deems desirable and shall recommend such revised budget to the annual budget meeting of the Town. Copies of the proposed annual budget shall be available for general distribution in the office of the Town Manager and on the Town website at least five (5) days prior to the public hearing or hearings. Copies of the budget recommended by the Board of Finance following the public hearing shall likewise be available for general distribution at least five days prior to the annual budget meeting.
The annual budget meeting of the Town shall be held on the first Tuesday in May for discussion of the budget recommended by the Board of Finance, and shall be adjourned to a referendum vote on the budget recommended by the Board of Finance. The referendum vote shall take place no later than seven (7) days after the first Tuesday in May, provided that the Board of Finance may change the dates for the annual budget meeting and voter referendum based on the General Assembly's progress with approving the State budget. The Board of Finance shall cause notice of the time, date and place of the annual budget meeting, including the recommended budget and other information required by the General Statutes, to be published by the Town Clerk in a newspaper having a substantial circulation in the Town. The notice shall specify the date, times and places of the referendum vote. The notice shall provide that separate votes shall be taken on the portion of the budget for the Board of Education and the portion of the budget for the remaining general government items. The Board of Finance may specify in the notice that separate votes will be held on any individual appropriation or group of appropriations in the general government portion of the budget as determined by the Board of Finance. The annual budget meeting may not change the budget recommended by the Board of Finance. Electors of the Town of Windham and voters entitled to vote in the annual budget referendum of the Town of Windham pursuant to Chapter I-1 of this Charter shall be entitled to discuss the budget at the annual budget meeting and shall be eligible to vote for or against the budget at the budget referendum. Should the annual budget referendum fail to approve the budget, the Board of Finance may revise the proposed budget, and submit the revised budget to a subsequent budget meeting and referendum in accordance with the provisions described in this Section for the annual budget meeting and referendum.
(If the date of the annual budget meeting is a public holiday the meeting shall be held the next day. No referendum on the annual budget nor any subsequent budget shall be held on a public holiday or a Friday, Saturday or Sunday.)
An official copy of the budget as finally adopted shall be filed by the Board of Finance with the Town Clerk within one (1) week following adoption. After adoption of the annual budget the Board of Finance shall fix the tax rate in mills which shall be levied on the taxable property in the Town for the next fiscal year.
If the Town fails to approve an annual budget prior to the beginning of the fiscal year, the Town Council shall have the power to approve necessary expenditures pending the adoption of the annual budget as provided in the General Statutes. If the Town fails to approve an annual budget by June 15, the Town Council shall have the power to levy taxes on the taxable property in the town at a rate in mills which does not exceed the tax rate for the fiscal year just ending.
The provisions of this Section shall apply only to the government of the Town of Windham, but the governing authority of either taxing district may choose to adopt any of said provisions and to work together with the Town of Windham in these or any other ways.
(a) 
Appropriations for construction or other permanent improvements, from whatever source derived, shall not lapse until the purpose for which the appropriation was made shall have been accomplished or abandoned, provided that any such project shall be deemed to have been abandoned if three fiscal years shall elapse without any addition to, or expenditure from or encumbrance of the appropriation therefor.
(b) 
No purchase shall be made by any office or agency, except through the Treasurer and such purchases shall be made under such rules as may be established by the Town Council.
(c) 
No voucher, claim or charge shall be paid until the same has been approved by the board or official incurring the voucher, claim or charge, and reviewed and approved by the Treasurer as correct and proper. Checks drawn for the payment of approved claims shall be valid only when countersigned by the Treasurer or the Treasurer's authorized agent. In the absence or inability to act of the Treasurer with respect to the above duty, the Town Council is authorized to appoint a substitute to act temporarily for the Treasurer.
(d) 
The Treasurer shall have the custody of all funds and shall keep an accurate record of all funds received and disbursed. The Treasurer shall prescribe the time and manner persons receiving money shall pay such money to the Treasurer.
(e) 
The several boards, officers and agencies shall not involve the Town or any Taxing District in any obligation to spend money for any purpose in excess of the amount appropriated for such board, office or agency.
(f) 
Additional appropriations for the Town and each taxing district over and above the annual budget appropriations may be approved from time to time by the Board of Finance for the Town of Windham and by the board of directors for its taxing district upon certification from the Town Manager that there is available an unappropriated and unencumbered general cash surplus to meet such appropriations, subject to town meeting or taxing district meeting approval if required by this Charter.
(g) 
Upon request transmitted by the Town Manager and approved by the Town Council or taxing district board, the Town of Windham may transfer any unexpended and unencumbered appropriation, balance or portion thereof from one board, office or agency, except the Board of Education, to another. No transfer shall be made from any appropriation for debt service and other statutory or contractual charges, or from any appropriation in the Town budget to any Taxing District budget or from any Taxing District budget to the Town budget or any other Taxing District budget.
(h) 
Except for appropriations for capital improvements as provided in (a) of this Section, all appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or encumbered.
(i) 
Every payment made in violation of the provisions hereof shall be deemed illegal and every official authorizing or making such payment or any part thereof shall be liable for the full amount so paid or received. If any officer or employee shall knowingly incur any obligation or shall authorize or make any expenditures in violation hereof or take any expenditures in violation hereof or take any part therein, such action shall be cause for removal.
(j) 
Moneys and investments for each taxing district shall be kept in funds separate from the Town's other funds and shall not be commingled or used for any purpose other than the purposes of the respective taxing districts. Separate accounts shall be maintained for each taxing district and the Town. An annual audit of all such funds and accounts shall be made as provided in the General Statutes.
The Town shall have the power to incur indebtedness for the Town itself or for either taxing district at the expense of the taxing district by issuing its bonds or notes as provided by the General Statutes or as otherwise provided herein.
The Town shall maintain separate funds and accounts for the revenues and expenditures of the Water Pollution Control Authority and Water Commission. The Water Pollution Control Authority and Water Commission shall prepare annual budgets and submit such annual budgets to the Town Council for its review at least thirty (30) days prior to the beginning of each fiscal year. Each such budget shall provide for an amount of expenditures which does not exceed the amount of revenues projected to be available to pay such expenditures and any prior deficits or liabilities. The Water Pollution Control Authority, and Water Commission shall have the power to incur and approve expenditures to the extent of revenues and other moneys available pursuant to such annual budgets and to revise such annual budgets during each fiscal year, except that revenues from assessments or user charges or other sources which are intended or needed to pay debt service on bonds, notes or other obligations issued by the Town to finance facilities for the Water Pollution Control Authority Commission and Water Commission shall be applied to pay such debt service.