Section 5.01. Fiscal year.
The fiscal year of the town shall begin on the first day of July and end on the last day of June (to become effective after January 1, 1982.)

Section 5.02. Submission of budget and budget message.
On or before the first day of May of each year, the town manager shall submit to the council a proposed budget for the ensuing fiscal year and an accompanying message.

Section 5.03. Budget message.
The town manager's message shall explain the budget both in fiscal terms and in terms of the work programs. It shall outline the proposed financial policies of the town for the ensuing fiscal year, 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 town's debt position and include such other material as the manager deems desirable.

Section 5.04. Budget.
The budget shall provide a complete financial plan of all town funds and activities for the ensuing fiscal year and, except as required by law or this charter, shall be in such form as the manager deems desirable or the council may require. In organizing the budget, the manager shall utilize the most feasible combination of expenditure classification by fund, organization unit, program, purpose or activity, and object. It shall begin with a clear general summary of its contents; shall show in detail all estimated revenue, indicating the proposed property tax levy, 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 of the current fiscal year and actual income and expenditures of the preceding fiscal year. Revenue shall not include those additions to assets which (a) increase any liability, (b) represent the cancellation of certain liability without a corresponding increase in other liabilities or a decrease in assets. (It) The budget shall (indicate) be presented in three (3) separate sections:

A. (1) Proposed expenditures for current operations during the ensuing fiscal year, (detailed by offices, departments and agencies in terms of their respective work programs, and the method of financing such expenditures.) as well as proposed contributions to dedicated reserve funds;

B. Proposed federal, state, and local revenue projections for the forthcoming fiscal year, to include but not limited to charges for services, fines, reimbursements, state revenue sharing, grants, leases and rentals, franchises, licenses, permits excise taxes, interest, and general revenues derived from departmental programs. This does not include revenues projected from local property taxes.

C. (2) Proposed capital expenditures during the ensuing fiscal year, detailed by offices, departments and agencies when practicable, and the proposed method of financing each such capital expenditure. (The total of proposed expenditures shall not exceed the total of estimated income.) The capital expenditure portion of the budget will include a five year projection of capital programs and summary of the status of current capital reserve funds. A narrative addressing program objectives and accomplishments will also accompany this portion of the budget.

Section 5.05. Council action on budget.

A. Initial Guidance. Prior to March 15th of each year the Council shall be provided the opportunity to issue guidance to the Town Manager regarding budget direction.

B. Initial Review. Following receipt of the proposed budget the Town Manager shall schedule a series of Council Workshops for the purpose of reviewing various elements of the Expense, Revenue, and Capital Budgets. During this series of meetings the Council may make alterations to the proposed budget based on recommendations made by the Town Manager and Department Heads, prioritization of departmental requirements and assessment of the need.

C. (a) Notice and hearing. The council shall publish in a conspicuous place, and in one or more newspapers of general circulation in the town the general summary of the budget and a notice stating the times and places where copies of the message and budget are available for inspection by the public, and the notice must be published no less than seven (7) calendar days prior to the scheduled public hearing.

1. The times and places where copies of the message and budget are available for inspection by the public, and

2. The time and place, not less than 2 weeks after such publication, for a public hearing on the budget.

D. (b) Amendment before adoption. After the public hearing, the 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 those expenditures required by law or for debt service. (or for estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than the total estimated revenues.)

E. (c) Adoption. The council shall adopt the municipal budget on or before the (last day of the last month of the fiscal year currently ending) first regularly scheduled Council meeting in July. If (it) there is a failure (fails) to adopt either the school budget or municipal budget by this date, the amounts appropriated for current operation for the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis, with all items in it prorated accordingly, until such time as the council adopts a budget for ensuing fiscal year. From the date of adoption of the budget, the amount stated therein as the amount to be raised by property tax shall constitute a determination of the amount of the levy for the purposes of the town in the corresponding tax year. A copy of the budget as finally adopted shall be certified by the manager and filed by him with the town assessor, whose duty it shall be to levy such taxes for the corresponding tax year.

Section 5.06. Capital program.
(a) Submission to council. The manager shall prepare and submit to the council a capital program at least 3 months prior to the final date for submission of the budget.
(b) Contents. The capital program shall include:

(1) A clear general summary of its contents;

(2) A list of all capital improvements which are proposed to be undertaken during the 5 fiscal years next ensuing, with appropriate supporting information as to the necessity for such improvements.

(3) Cost estimates, method of financing and recommended time schedules for each such improvement; and

(4) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired.

Section 5.08. Public records.
Copies of the budget and the capital program as adopted shall be public records and shall be made available to the public at suitable places in the town.

Section 5.06 Other Reserve Funds
The Town Council shall have the authority to create such other reserve funds as authorized by statute or that the Council shall deem advisable. The order creating such fund shall include a statement as to the intent and purpose of the fund, the funding mechanism, and the authority to use and withdraw from the fund.

Section (5.09) 5.07 Amendments after adoption.
A. (a) Supplemental appropriations. If during the fiscal year the manager certifies 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.

B. (b) Emergency appropriations. To meet 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 section (2.12) 2.10. To the extent that there are no available unappropriated revenues to meet such appropriations, the council may by emergency ordinance authorize the issuance of temporary notes, which may be renewed from time to time, but the emergency notes and renewals of any fiscal year shall be paid not later than the last day of the fiscal year next succeeding that in which the emergency appropriation was made.

C. (c) Reduction of appropriations. If at any time during the fiscal year it appears probable to the manager that the revenues available will be insufficient to meet the amount appropriated, the manager shall report to the council without delay, indicating the estimated amount of the deficit, any remedial action taken by the manager and the manager's recommendations as to any other steps to be taken. The council shall then take such further action as it deems necessary to prevent or minimize any deficit and for the purpose it may by ordinance reduce one or more appropriations.

D. (d) Transfer of appropriations. At any time during the fiscal year the manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office or agency and, upon written request by the manager, the council may by ordinance transfer part or all of any unencumbered appropriation balance from one department, office or agency to another.

E. (e) Limitations; effective date. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of 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.)

F. Effective date. The supplemental and emergency appropriations and reduction or transfer of appropriations authorized by this section may be made effective immediately upon adoption.

Section (5.10) 5.08 Administration of budget.
(a) Work programs and allotments At such time as the manager shall specify, each department, office or agency shall submit work programs for the ensuing fiscal year showing the requested allotments of its appropriation by periods within the year. The manager shall review and authorize such allotments with or without revision as early as possible in the fiscal year. The manager may revise such allotments during the year if the manager deems it desirable and shall revise them to accord with any supplemental, emergency, reduced or transferred appropriations made pursuant to section 5.09.

A. Monthly reporting and adjustments. The Town Manager shall monthly prepare financial reports for each municipal department which reflects expenditures and revenues (if applicable) . Periodic assessments will be made by the Town Manager to determine if departmental expenditures or appropriations require adjustment. Adjustment to departmental appropriations shall be accomplished pursuant to section 5.07 of this charter.

B. (b) Payments and obligations prohibited. No payment shall be made or obligation incurred against any (allotment or) appropriation except in accordance with appropriations duly (made) authorized and unless the manager or his/her designee first certifies that there is a sufficient unencumbered balance in such (allotment or) appropriation and that sufficient funds therefrom are or will be available to cover the claim or meet the obligation when it becomes due and payable. Any authorization of payment or incurring of obligation in violation of the provisions of this charter shall be void and any payment so made illegal. Such action shall be cause for removal of any officer, official, or employee, who knowingly authorized or made such payment or incurred such obligation, and he/she shall also be liable, to the town for any amount so paid or obligated. However, except where prohibited by law, nothing in this charter shall be construed to prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, provided that such action is(made or) approved by (ordinance) . the Town Council or authorized to be undertaken by the Town Manager.

C. Warrant Process. The Town Treasurer may disburse funds only on the authority of a warrant drawn for the purpose, either (a) affirmatively voted and signed by a majority of the Town Council at a duly called public meeting, (b) seen and signed by a majority of the Council acting individually and separately, or (c) signed as otherwise provided by law for the disbursement of employee wages and benefits, and payment of municipal education costs.

Section (5.11) 5.09. Lapse of appropriation
Every appropriation, except an appropriation for a capital expenditure, dedicated reserve fund, or those appropriations expressly approved by the Town Council to be carried forward to the ensuing fiscal year, shall lapse into the Town’s General Fund at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the purpose for which it was made has been accomplished or abandoned. (The purpose of any such appropriation shall be deemed abandoned if 3 years pass without any disbursement from or encumbrance of the appropriation.)

Section 5.12. Interim expenditures.
In the period between the end of the fiscal year and the adoption of the budget, the amounts appropriated for current operations of the prior fiscal year shall be deemed adopted for the new fiscal year on a month-to-month basis, with all items in it prorated accordingly until such time as the budget for the new fiscal year is adopted.

Section 5.13. Tax administration.
(a) Division of assessment. There shall be established a division of assessment, the head of which shall be the town assessor. The assessor shall exercise the same powers and be subject to the same duties and liabilities that similar officers of the several towns and cities in the State may exercise, and may now or hereafter be subject to, under the laws of the State of Maine.

Section 5.10 Audit

A. Audit Report. An audit report of the Town’s financial transactions shall be performed annually .

B. Filing. Upon the completion of the report, the auditor shall present it to the Town Council. The audit report shall be included in the Town Report.

C. Action of the Council. In addition to accepting the audit report by resolve, the Council shall review and advise the Town Manager on the implementation of changes in the Town’s financial management plan as recommended by the auditor.