The fiscal year for the City of Easton shall
be the calendar year. If not prohibited by law, the Council may, by
ordinance, adopt a different fiscal year, specifying an orderly procedure
for financial and budgetary controls in making such a transition.
On or before one hundred twenty (120) days prior
to the start of the fiscal year, the City Administrator shall submit
a draft budget and budget message to the Mayor. On or before ninety
(90) days prior to the start of the fiscal year, the Mayor shall submit
to the City Council a budget for the ensuing fiscal year and an accompanying
message.
The Budget shall be accompanied by a message
prepared by the Mayor that shall explain the Budget both in fiscal
terms and in terms of the work programs, linking those programs to
organizational goals and community priorities. It shall outline the
proposed financial policies of the City for the ensuing fiscal year
and the impact of those policies on future fiscal years. 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 City's debt position, include factors affecting the ability to
raise resources through debt issues, and include such other materials
as the Mayor deems desirable.
The Budget shall be a complete financial plan
of all City funds and activities for the ensuing two (2) fiscal years
and, except as required by law or this Charter, shall be in such form
as the Mayor deems desirable or the Council shall require for effective
management and an understanding of the relationship between the Budget
and the City's strategic goals. The Budget shall begin with a clear
general summary of its contents; shall show in detail all estimated
income, indicating the proposed property tax levies, and all proposed
expenditures, including debt service, for the ensuing fiscal year;
and shall be so arranged as to show comparative figures for actual
and estimated income and expenditures for the current and preceding
fiscal years. It shall indicate in separate sections:
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(1)
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The proposed goals and expenditures for current
operations during the ensuing fiscal year, detailed for each fund
by department or other organizational unit, and program, purpose or
activity, method of financing such expenditures, and methods to measure
outcomes and performance related to the goals;
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(2)
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Proposed longer-term goals and capital expenditures
during the ensuing fiscal year, detailed for each fund by department
or by other organization unit when practicable; the proposed method
of financing each such capital expenditure; and methods to measure
outcomes and performance related to the goals; and
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(3)
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The proposed goals, anticipated income and expense,
profit and loss for the ensuing fiscal year for each utility or other
enterprise fund or internal service fund operated by the City, and
methods to measure outcomes and performance related to the goals.
For any fund, the total of the proposed expenditures shall not exceed
estimated income plus carried forward fund balance exclusive of reserves.
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A.
Notice; Public Access; Hearing.
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The City Council shall publish the general summary
of the Budget and a notice stating:
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(1)
That the proposed budget shall be available for public
inspection at the office of the City Clerk and copies of the Budget
shall also be made available to the public at the City Clerk's office
for purchase at a reasonable price to be set by Council.
(2)
The time and place for a public hearing(s) on the
Budget, which shall be not less than 14 days after such publication.
B.
Amendment before Adoption.
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After the public hearing, the City Council may
adopt the Budget with or without amendment. In amending the Budget,
it may add or increase programs or amounts and may delete or decrease
any programs or amounts, except expenditures required by law or for
debt service or for an estimated cash deficit, provided that no amendment
to the Budget shall increase the authorized expenditures to an amount
greater than total estimated income.
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C.
Adoption.
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The Council shall adopt a budget for the ensuing
fiscal year on or before sixteen (16) days before the end of the current
fiscal year (December 15, if the calendar year is the fiscal year).
If the Council fails to adopt a budget by that date, the budget proposed
by the Mayor shall be the Official Budget for the City for the ensuing
fiscal year.
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D.
Revised Budget.
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It is the intent of this Charter that a new
Council in the year following a municipal election shall have the
power to revise the Budget in effect and modify appropriation and
tax and fee levy ordinances. The procedures established in this section
for Budget submission, consideration and adoption shall apply, but
all actions must be completed within forty-five (45) days of the start
of the fiscal year. A revised Budget, once adopted, shall be effective
retroactively to the start of the fiscal year and shall rescind and
replace the Budget in effect.
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E.
"Publish" Defined.
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As used in this Article, the term "publish"
means to print in the contemporary means of information sharing, which
includes, but is not limited to, one or more newspapers of general
circulation in the City and in the City's website.
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A.
To implement the adopted Budget, the Council shall
adopt, prior to the beginning of the fiscal year:
(1)
An appropriation ordinance making appropriation by
department, fund, service, strategy, or other organizational unit
and authorizing an allocation for each program or activity;
(2)
A tax levy ordinance authorizing the tax levy or levies
and setting the tax rate or rates; and
(3)
Any other ordinances required to authorize, amend
or modify the rates of any other taxes, fees, or charges or other
revenue sources.
B.
Revenue Powers.
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Council shall have the power to levy any taxes
permitted by the Constitution of the Commonwealth of Pennsylvania
and authorized for home rule municipalities by the Legislature, but
in the case of real estate taxes they shall be restricted to the provisions
of state law provided for cities of the Third Class.
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A.
Supplemental Appropriations.
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If during or before the fiscal year the City
Administrator and Director of Finance determine that there are available
for appropriation revenues in excess of those estimated in the Budget,
the Council, by ordinance, may make supplemental appropriations for
the year up to the amount of such excess.
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B.
Emergency Appropriations.
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To address a public emergency affecting life, health, property or the public peace, the Council may make emergency appropriations. Such appropriations may be made by emergency ordinance in accordance with the provisions of § C-2.14. To the extent that there are no unappropriated revenues or sufficient fund balances 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 or refinanced as long-term debt not later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made.
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C.
Reduction of Appropriations.
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If at any time during the fiscal year it appears
probable to the City Administrator and Director of Finance that the
revenues or fund balances available will be insufficient to finance
the expenditures for which appropriations have been authorized, the
City Administrator shall report to the Council without delay, indicating
the estimated amount of the deficit, any remedial action taken by
the Administrator and recommendations as to other steps to be taken.
The Council shall then take such further action as it deems necessary
to prevent or reduce any deficit, and for that purpose it may, by
ordinance, reduce or eliminate one or more appropriations.
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D.
Transfer of Appropriations.
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At any time during or before the fiscal year,
the Council may, by ordinance, transfer part or all of the unencumbered
appropriation balance from one department, service, strategy or organizational
unit to another or to a new appropriation. The City Administrator
may transfer funds among programs within a department, service, strategy
or organizational unit, and shall report such transfers to the Council
in writing in a timely manner.
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E.
Limitation; Effective Date.
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No appropriation for debt service may be reduced
or transferred, except to the extent that the debt is refinanced and
less debt service is required, and no appropriation may be reduced
below any amount required by law to be appropriated or by more than
the unencumbered balance thereof. The supplemental and emergency appropriations
and reduction or transfer of appropriations authorized by this section
may be made effective immediately upon adoption.
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F.
Lapse of Appropriations.
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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.
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The City Administrator working with the Director
of Finance shall be responsible for the administration of the Budget.
The Council shall provide, by ordinance, the procedures for administration
and fiduciary oversight of the Budget.
A.
Submission to the Mayor and Council.
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The City Administrator shall prepare and submit
to the Mayor and Council a multi-year Capital Program no later than
three (3) months before the final date for submission of the Budget
to the Council by the Mayor.
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B.
Contents.
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The Capital Program will include:
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(1)
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A clear general summary of its contents;
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(2)
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Identification of the long-term goals of the
City;
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(3)
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A list of all capital improvements and other
capital expenditures which are proposed to be undertaken during the
fiscal years next ensuing, with appropriate supporting information
as to the necessity for each;
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(4)
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Cost estimates and recommended time schedules
for each improvement or other capital expenditure;
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(5)
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Method of financing upon which each capital
expenditure is to be reliant;
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(6)
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The estimated annual cost of operating and maintaining
the facilities to be constructed or acquired;
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(7)
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A commentary on how the plan addresses the sustainability
of the community and the region of which it is a part; and
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(8)
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Methods to measure outcomes and performance
of the Capital Program related to the long-term goals of the community.
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The above shall be revised and extended each
year with regard to capital improvements still pending or in process
of construction or acquisition.
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A.
Notice; Public Access; Hearing.
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Council shall publish a general summary of the
Capital Program and a notice stating:
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(1)
That the Capital Program will be available for public
inspection at the office of the City Clerk and any other places Council
may designate, and copies will be available for purchase at a reasonable
price to be set by the Council at the City Clerk's office;
(2)
The time, place and date, not less than fifteen (15)
days after the publication of the notice, for a public hearing(s)
on the Capital Program.
B.
Adoption.
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The Council, by resolution, shall adopt the
Capital Program with or without amendment after the public hearing(s)
on or before thirty (30) days prior to the final date for submission
of the Budget by the Mayor.
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The Council shall provide for an independent
annual audit of all City government accounts and may provide for more
frequent or extensive audits, as it deems necessary. An independent
certified public accountant (CPA) or firm of such accountants shall
perform such audits. Such audits should be performed in accordance
with generally accepted auditing standards (GAAS) and generally accepted
government auditing standards (GAGAS).
The Council shall annually establish an Audit
Committee, comprised of the City Controller, two (2) members of Council,
and two (2) registered voters of the City, who:
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(1)
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Do not hold public office;
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(2)
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Are willing to perform these duties as citizen
volunteers;
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(3)
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Are not employed by the City of Easton or any
of its departments, offices, or agencies; and
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(4)
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Possess at least two (2) of the following:
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(a)
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An understanding of generally accepted accounting
principles (GAAP) and financial statements;
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(b)
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Experience in the preparation or auditing of
financial statements of entities of a similar size;
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(c)
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Experience in the application of GAAP in regard
to estimated accruals and reserves;
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(d)
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Experience with internal controls; and
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(e)
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An understanding of how an audit committee works.
One of the Council Members shall chair the Committee.
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The Audit Committee shall:
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•
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Lead the process of selecting an independent
auditor;
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•
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Direct the work of the independent auditor as
to the scope of the annual audit and any matters of concern with respect
to internal controls; and
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•
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Receive any report of the independent auditor
and present that report to the Council with any recommendations from
the Committee.
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The Council shall, using competitive bidding,
designate the independent auditor or firm annually, or for a period
not to exceed five (5) years, but the designation for any particular
fiscal year shall be made no later than thirty (30) days after the
beginning of such fiscal year. The standard for independence is that
the auditor must be capable of exercising objective and impartial
judgment on all issues encompassed within the audit engagement. No
accountant or firm may provide any other service to the City during
the time it is retained to provide independent audits to the City.
The Council may waive this requirement by a majority vote at a public
meeting.
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Copies of the Budget, Capital Program, independent
audits, and appropriation and revenue ordinances shall be public records
and shall be made available at the City Clerk's office. Copies shall
also be available for purchase by the public at a reasonable price
to be established by the Council.
A.
Competition Principle.
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All purchases of materials, supplies, equipment
and services by the City government shall be made through competitive
processes, with evidence available to demonstrate broad solicitation
of suppliers and opportunities for participation in the acquisition
process, and the value received for the money paid.
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B.
Competitive Policies Code.
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Consistent with applicable federal and state
laws, the Council shall adopt and may amend, by ordinance, a code
for the establishment, regulation, and maintenance of a competition
system, governing the policies necessary to effectively administer
a system of competitive purchasing for the City government. This code
may include but is not limited to:
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(1)
Establishing varied procedures for types of services
or materials to be acquired;
(3)
Establishing procedures for determining sole source
contract awards;
(4)
Policies regarding minority or local resident preference
(if any); and
(5)
Policies and procedures to encourage the use of contemporary
purchasing techniques such as reverse auctioning and electronic commerce.
