The fiscal year of the township shall be the
calendar year. However, after 1976, if not prohibited by law, the
Board may by ordinance adopt a different fiscal year, specifying an
orderly procedure for financial and budgetary controls in making such
transition.
The Manager, with the assistance of the Finance
Director, shall, at the time of presenting the annual budgets of the
township for the consideration of the Board, submit as an annex to
the budgets the tentative financial projections for a period of three
or more years, said projections to be revised annually. The projections
shall deal with operations, capital programs and a schedule for the
amortization of debt. The Administrative Code[1] shall provide for the implementation of this section.
A.
At least 45 days before the end of the fiscal year,
the Manager, with the assistance of the Finance Director, shall prepare
and submit to the Board a proposed budget for the following fiscal
year. The Board shall prescribe the form in which the annual operating
budget is to be prepared, which shall include, in addition to the
major classification of appropriations by which expenditures are to
be allocated and controlled, a detailed analysis of the various items
of revenues and expenditures. All appropriations shall be made in
lump sum amounts and according to the following classes of expenditures
for each office, department, major operating unit, board or commission:
B.
At least 30 days before the end of the fiscal year,
the Board shall complete consideration of the Manager's proposed budget,
modify the Manager's proposal in such manner as it sees fit and adopt
a preliminary budget. The budget must be balanced so that appropriations
are matched by anticipated revenues and available surplus. A summary
of the preliminary budget shall be advertised at least once in two
or more newspapers of general circulation in the township at least
10 days before the date set for final adoption. In advertising the
preliminary budget, the Board shall state the date set for final adoption.
Copies of the detailed preliminary budget shall be available at the
township office for public inspection and copies shall be available
for purchase by any interested citizens for a reasonable fee to be
set by the Board. After advertisement, the Board shall hold at least
one public hearing on the preliminary budget, which may take place
at any regular or special meeting of the Board.
C.
The Board shall finally adopt a balanced budget before
the start of the fiscal year to which it applies, except that in the
year immediately following a municipal election, the new Board may
within 45 days after the start of the fiscal year adopt a revised
budget. The budget ordinance shall be effective as of the start of
the fiscal year. In the event that the Board fails to adopt a budget
by the start of the fiscal year, the amounts appropriated for the
previous fiscal year shall be considered appropriated temporarily,
prorated on a month-to-month basis, until a final budget is adopted.
D.
The Finance Director shall cause the appropriations voted by the Board to be entered in the accounting records of the township and shall approve no contract or expenditure which would exceed the unencumbered balance of appropriations in any account. The Board may at any time amend the allocations within each appropriation, but changes in appropriations, either increases or decreases, in any items on which budgetary controls are maintained, shall be made only pursuant to an ordinance of the Board authorizing such changes. Ordinances amending the budget may be adopted and take effect immediately at any regular or special public meetings of the Board. The provisions of § C-38 will not apply to ordinances amending the budget appropriations. Supplemental appropriations may be made by the Board at any time. In the event that revenues are found and certified by the Finance Director to fall short of estimates in the budget, the Board shall make necessary reductions in appropriations in order to maintain a balanced budget. All unexpended appropriations shall lapse at the end of the fiscal year.
E.
In the event of genuine emergencies, unanticipated
at the time the operating budget was adopted, the Board may make supplemental
appropriations to meet the emergency conditions. To the extent that
there are no available unappropriated revenues to meet such emergency
appropriations, the Board may authorize the issuance of temporary
notes which shall constitute unfunded debt to be funded and repaid
in accordance with the Local Government Unit Debt Act (Act 185 of
1972).[1] It is the intent of this Charter that operating expenditures
shall neither be appropriated nor paid out of loan funds except to
meet genuine emergencies.
[1]
Editor's Note: See 53 Pa.C.S.A. § 8001
et seq.
On or before the adoption of the operating budget, the Board shall adopt a capital program and a capital budget. The capital program shall set forth all capital expenditures amounting to $10,000 or more (except for maintenance of existing facilities, which shall be included in the operating budget), identified by project, the year in which acquisition or construction is to be scheduled, the means by which the capital program is to be financed, the effect of any proposed capital expenditures on future operating expenses and the effect of any proposed new indebtedness on the amortization schedule of existing debt and debt limits. The capital program shall incorporate all anticipated capital projects to be initiated with a period of three or more years. Following approval by the Board of the capital program, the Board shall adopt a capital budget providing appropriations for the next fiscal year, which shall be the first year of the capital program. The capital budget may be financed from unused appropriations of current revenues or moneys borrowed as authorized by this Charter or general law. All unused appropriations for the capital budget shall lapse at the end of the fiscal year. The Finance Director shall control expenditures in relation to appropriations in the capital budget in the same manner as required for the operating budget in § C-53D. The Board may amend the capital budget at any time during the fiscal year, but before doing so must amend the capital program. The capital program and the capital budget shall be adopted only after advertisement and public hearing in the same manner as provided for the adoption of the operating budget in § C-53B.
The Board shall provide in the Administrative
Code[1] for procedures for the receipt, deposit and accounting
for all moneys due and received by the township.
A.
The township may make contracts for lawful purposes
subject to the provisions of this Charter and general law. No contract
shall be made or obligation incurred unless the Finance Director shall
certify to the Manager that there is a sufficient unencumbered balance
in an appropriation and sufficient funds therefrom are or will be
available to cover the claim or meet the obligations when it becomes
due and payable. Any officer authorizing or permitting any contract
to be made in violation of this provision shall be subject to removal
from office and liable to the township for any loss incurred.
B.
All contracts of the township involving sums in excess
of an amount specified by the Board by ordinance shall be in writing.
The Manager shall execute all contracts on behalf of the township
involving sums of less than the amount specified by the Board, provided
that such action is in accordance with the budget or other specific
prior authorization. Contracts in excess of amounts authorized to
be approved by the Manager, or extending over a period of more than
two years, shall be formally approved by the Board and countersigned
by the Chairman of the Board as well as the Manager. Authorization
for contracts for the purchase, sale, lease or use of real estate
or for the construction of assessable public capital improvements
shall be given by ordinance. Any officer required to execute a written
contract shall submit the form of contract to the Township Solicitor
for approval before executing the contract.
C.
The Board shall, by ordinance, establish a procedure
for competitive bidding to include definitions of amounts, publication
and notice requirements, including advertisement at least once in
two or more newspapers of general circulation in the township, deposit
and bond requirements, conditions, terms, rules, regulation, waiver
and exceptions, as it shall from time to time deem advisable, in accordance
with this Charter and general law. Competitive bidding shall not be
required under this Charter for:
(1)
Labor or services rendered by any township officer
or employee.
(2)
Contracts for labor, material, supplies or services
aggregating less than the amount specified by the Board, by ordinance,
for the item in the year supplied.
(3)
Contracts relating to the acquisition or use of real
property.
(4)
Contracts for professional or unique services or supplies.
(5)
Contracts for insurance and surety company bonds,
except that the use of competitive bidding for such items shall be
encouraged where practicable.
(6)
Contracts for emergency repairs.
(7)
Contracts with other governmental entities, authorities,
agencies or political subdivisions.
D.
Except as otherwise provided in this Charter, no contract
for supplies, materials, labor, franchise or other valuable consideration,
to be furnished to or by the township, shall be authorized on behalf
of the township, except with the lowest responsible bidder after competitive
bidding.
E.
No person shall evade the provisions of this section
of the Charter by purchasing or contracting for services or supplies
piecemeal with transactions which would, in the exercise of reasonable
discretion and prudence, be conducted as one transaction amounting
to more than the amount as specified by the Board.
F.
The terms of contracts for the purchase of supplies
shall not exceed two years.
The Finance Director shall authorize disbursement
of township moneys only after determining that all goods and services
have actually been received or performed. The Board shall provide
in the Administrative Code[1] for procedures for the signing and countersigning of all
checks, drafts and other orders of payment by two persons, one of
whom shall be the Finance Director or other employee under his direction
as shall be specified in the Administrative Code.
A.
The Finance Director shall be responsible for providing
for the recording of all financial transactions and related activities
of the township in terms of dollars and other appropriate units of
measurement, in accordance with the form and procedures prescribed
by the Board in the Administrative Code[1] in order that required reports and analyses may be produced
for the proper management and control of such activities.
B.
The Finance Director shall take appropriate measures
reasonable to ensure that the Manager and the Board are kept informed
of any significant financial or financially related fact which would
have an impact or influence on the township.
C.
The Finance Director shall prepare for the Manager
and the Board periodic financial reports, at least monthly, and at
such other times as the Board or the Manager may direct, and shall
at the end of each fiscal year prepare an annual financial report
which shall be included in the Manager's annual report to the Board
and the public.
D.
The Finance Director shall provide for the preservation
of financial records which shall be kept at the office of the township
and shall be available for public inspection throughout normal office
hours.
The Board shall provide for an annual independent
certified standard municipal audit of township receipts, expenditures,
accounts and reports by a Pennsylvania certified public accountant
or accountant firm having no interest, direct or indirect, in the
fiscal affairs of the township government or any of its elected or
appointed personnel. The Board may provide for more frequent audits,
as well as special audits, as it deems necessary. The results of the
annual audit and a financial statement of the fiscal affairs of the
township shall be submitted to the Manager and to the Board and shall
be included in the annual report of the township. A summary of the
annual audit report of the independent auditor shall be published
at least once in two or more newspapers of general circulation in
the township within 60 days after the close of the fiscal year.
The Board shall provide in the Administrative
Code[1] for the bonding of all officers and employees who are
responsible for the handling and/or authorization of receipts, disbursements,
goods and supplies. All such bonds shall be approved by the Township
Solicitor as to form and sufficiency. The premiums for such bonds
shall be paid by the township.
A.
The Board shall be limited in sources and rates of
taxation by general laws applying to municipalities governed by a
Home Rule Charter. Pending enactment thereof, the tax limitation provisions,
including relief therefrom, applicable to townships of the second
class shall apply.
