[HISTORY: Adopted by the Board of Selectmen
of the Town of Madison 10-9-1979; printed as last amended 4-12-1999.[1] Subsequent amendments noted where applicable.]
GENERAL REFERENCES
Expenditures for overdrafts ordinance — See Ch. 53.
[1]
Editor's Note: An interim amendment to this
policy was adopted 8-27-1991.
B.
Said obligations of funds need not be approved by
the Board of Selectmen provided the obligation of said funds will
not exceed the total amount either appropriated or credited to said
general fund accounts or cemetery fund. No Warrant Article "lump sum"
appropriation may be overexpended by any amount without prior approval
from the Board of Selectmen. Any employee who obligates public funds
without prior permission will be subject to immediate discipline,
up to and including dismissal. Any elected official who obligates
public funds over the Warrant Article "lump sum" appropriation without
prior permission will be subject to a financial assessment for the
amount of the unapproved overdraft. The overdraft will be paid through
payroll deductions from the elected official's paycheck.
Department heads shall be authorized to obligate
funds appropriated or otherwise credited to their departmental account(s)
provided the obligation of said funds will not exceed the total amount
either appropriated or credited to said account(s) (as authorized
by Town Meeting vote). The department heads shall exercise this right
under the supervision and control of the Town Manager, except where
local or state law indicates otherwise. The Town Manager and/or the
Madison Board of Selectmen must approve all obligations exceeding
line item recommended amounts (subject to the review criteria listed
below).
The budget of the Town is prepared on a modified
line basis. Expenditures during the year should follow as closely
as possible the items identified in the budget document. The Board
recognizes that unforeseen expenditures develop which result in the
need to purchase additional items not itemized in the budget. Occasionally,
circumstances arise in which items budgeted for can be deleted and
the funds need not be obligated. Any obligation exceeding recommended
line item appropriations in the published budget must receive approval
from the Town Manager. The Town Manager must feel comfortable that
the obligation of funds over the recommended amount will not cause
a future need to overdraft the "lump sum" operations appropriation
approved at Town Meeting. If the Town Manager does not feel that the
obligation of funds is appropriate, he/she has the authority to veto
the department head's decision. If the department head would like
to pursue the matter further, the Town Manager will put the employee
on the next agenda for the next regularly scheduled Selectmen's meeting.
If the department head obligates said funds over the line item amount
(without permission), he/she will be subject to discipline. No capital
project will be overspent by any amount without prior approval from
the Board of Selectmen. In most cases, because the capital project
was approved by the voters as a Special Warrant Article, the overdraft
will have to be "ratified" by a Town Meeting vote.
It is not uncommon to encounter an emergency
situation that requires overdrafting an approved warrant article by
drawing from "surplus" or a "general revenue" account. This is, by
law, an unauthorized overdraft. When this occurs, the Board of Selectmen
should prepare a Warrant Article for the next Town Meeting Warrant
which very clearly seeks an appropriation of whatever sum of money
was overdrafted for the purpose of covering the overdraft. If the
Town Meeting refuses to authorize the overdraft, and one or more taxpayers
want to press it in court, it is possible that a judge will order
the municipal officers to repay the Town for the overdrawn amount
out of their personal assets.
There are two exceptions to the general rule
prohibiting overdrafts:
A.
General assistance.
B.
The Road or Highway Account (operational budget, not
capital). 23 M.R.S.A. § 2705 allows an overdraft to occur
in the road or highway account, provided the overdraft does not exceed
15% of the amount appropriated for that purpose. The Road Commissioner
is authorized to incur this overdraft with the prior written consent
of the majority of the Board of Selectmen. Even though the law allows
up to a 15% overdraft, the Board of Selectmen are still required to
include an Article in the next Town Meeting Warrant to cover the amount
of the Highway Fund overdraft.
[Amended 2-25-2013; 6-14-2022]
A.
Competitive bidding procedures shall be conducted
in a manner consistent with the Town of Madison Purchasing Policy.
A copy of the Purchasing Policy is available at the Town Office. Bids
may be required on other services or supplies, as the Select Board
deems necessary. All aspects of all capital projects must go out to
bid, unless decided otherwise by a majority vote of the Select Board
at a regularly scheduled meeting.
B.
The Madison Select Board shall retain the right to
waive bid procedures when the Board determines it is in the best interest
of the Town to do so. The Board also directs that notice be placed
in all "requests for proposals" that the Madison Select Board reserves
the right to reject any and all bids and to waive all irregularities
or informalities in any proposal. Should the Town not successfully
negotiate a contract, the Town reserves the right to contract with
the next lowest responsive and responsible bidder. All items placed
out to bid shall have the contracts for said supplies and services
awarded by the Madison Select Board or its designee. In awarding contracts,
the Board may consider responsible, responsive bidders who offer the
best price and quality for their supplies, services, or equipment.
The Board shall solicit and consider the recommendation of the Town
Manager and (if relevant) the department head before awarding a contract
or purchase.
Nothing in this policy shall negate the Board
of Selectmen's responsibility to sign Warrants authorizing expenditure
of funds.
A.
No agent
or official of the Town may enter into a contract for service for
a period longer than one year unless approved by the Town Meeting.
This should not be confused with employment contracts. The Board of
Selectmen may enter into multiyear employment contracts. The term
of office for appointed officials (except the Town Manager) is one
year unless specified by contract (written or oral), ordinance, or
charter (30-A M.R.S.A § 2601). Employees who are not officials
(take no oath of office) usually serve on an indefinite basis unless
otherwise stated. The Town Manager's term of office is indefinite
unless otherwise specified by contract (30-A M.R.S.A § 2633,
Subsection 1).
B.
Services provided to the Town of Madison should be competitively
bid every three years. These would include, but not limited to, such
services as banking, waste disposal, recycling, mowing and care of
Town-owned property. Bids for services and capital items over $10,000
will be reviewed and approved by the Board of Selectmen prior to acceptance.
[Added 2-25-2013]
A.
Consistent with the Town Purchasing Policy, the Town
Manager shall require the use of purchase orders to review all expenditures
within all departments. Copies of the purchase orders shall be turned
into the Town Bookkeeper at the same time as payroll time cards each
week.
[Amended 2-25-2013; 6-14-2022]
B.
Department heads do not need to submit purchase orders
for operational expenditures such as utilities, payroll, benefits,
and as determined by the Town Manager.
C.
The Town Manager is instructed to send notice to all
vendors (on the Federal 1099 vendor list) in the month of January
to require department heads to submit a purchase order when purchasing
or obtaining services.
