FINANCIAL PROCEDURES

Sec. 5-1. Date of Annual Organization for Budget Purposes
Sec. 5-2. Report of Estimated Expenses; Period Covered; Contents
Sec. 5-3. Submission to City Council; Procedure for Approval, Rejection or Alteration
Sec. 5-4. Power of Council to Add to Appropriation; Conditions; Limitations
Sec. 5-5. Salary Provisions in Budget; Requirements and Limitations
Sec. 5-6. Transfer of Appropriations; Restrictions

CHAPTER 5 - FINANCIAL PROCEDURES

Section 5-1. Date of Annual Organization for Budget Purposes

For the purpose of the date of annual organization of the government which is referred to in Section 32 of Chapter 44 of the General Laws, the date of organization of the City government of Methuen shall be the first secular day of January of each year.

Section 5-2. Report of Estimated Expenses; Period Covered; Contents

Every officer having charge of, or jurisdiction over, any office, department or undertaking, requesting an appropriation shall, between November first and December first each year, furnish the Mayor and the City auditor, on forms provided by the City Auditor or officer having similar duties, and approved by the Bureau of Accounts in the Department of Corporations and Taxation, detailed estimates of the full amounts deemed necessary for the next fiscal year for the ordinary maintenance of the office, department or undertaking under his charge or jurisdiction and, for expenditures other than the ordinary maintenance with the amounts, if any, expended for similar purposes during the preceding fiscal year and an estimate of the amounts required to be expended for such purposes during the last eight months of the then current fiscal year, giving explanatory statements of any differences between the amount of any estimate for the next fiscal year and the amount expended or estimated to be required as aforesaid.

The information hereby required to be furnished shall set forth the number of permanent or temporary employees, or both, requested in each classification or rating in the next fiscal year and the number of permanent or temporary employees, or both, employed on October thirty first of the then fiscal year, or the nearest weekend thereto, except laborers and persons performing the duties of laborers, with the annual, monthly, weekly or hourly compensation of such employees and shall state whether such compensation is fixed by ordinance or otherwise and whether or not such employees are subject to Chapter thirty-one of the Massachusetts General Laws.

The foregoing shall not prevent the Mayor from so setting forth the number of permanent or temporary laborers and persons performing the duties of laborers, or both such permanent and temporary laborers and persons, with the annual, monthly, weekly or hourly compensation of such employees. The City Accountant, or officer having similar duties, shall forthwith at the close of each calendar year furnish the Mayor with a written report of the money received from estimated receipts applicable to the payment of expenditures of the first six months of the then current fiscal year, with an estimate of such receipts for the last six months of such year and for the next fiscal year.

Section 5-3. Submission to City Council; Procedure for Approval, Rejection or Alteration

Within one hundred seventy days after the annual organization of the City government, or such other time as may be specified by the General Court as per Chapter 44, Section 32, the Mayor shall submit to the City Council the annual budget which shall be a statement of the amounts recommended by him for proposed expenditures of the City for the next fiscal year. In addition, included with the annual budget figure shall be a summary of all expenditures, appropriations and tax rates for the five years preceding the budget submission. The annual budget shall be classified and designated so as to show separately with respect to each officer, department or undertaking for which an appropriation is recommended:

1. Ordinary maintenance, which shall also include debt and interest charges matured and maturing during the next fiscal year and shall be subdivided as follows:

a) Salaries and wages of officers, officials and employees other than laborers or persons performing the duties of laborer;
and

b) Ordinary maintenance not included under (a).

2. Proposed expenditures for other than ordinary maintenance, including additional equipment, the estimated cost of which exceeds one thousand dollars.

The foregoing shall not prevent the Mayor, with the approval of the Council, from adopting additional classifications and designations, nor shall this in any way be interpreted to rescind any previously adopted classification or designations.

The full City Council may, by majority vote, make appropriations for the purposes recommended and may reduce or reject any amount recommended in the annual budget, but, except on recommendations of the Mayor, shall not increase any amount in or the total of the annual budget, no add thereto any amount for a purpose not included therein, except as provided in Section 5-2 of the Charter. Except as otherwise permitted by law, all amounts appropriated by the City Council, as provided in this section, shall be for purposes specified. In setting up an appropriation order or orders based on the annual budget, the Council shall use, so far as possible, the same classifications required for the annual budget. If the Council fails to take action with respect to any amount recommended in the annual budget, either by approving, reducing or rejecting the same within forty-five days after the receipt of the budget, such amount shall, without any action by the Council, become part of the appropriations for the year and be available for the purposes specified.

If, upon the expiration of one hundred and seventy days after the annual organization of the City government, the Mayor shall not have submitted to the City Council the annual budget for said year, the City Council shall, within thirty days, upon its own initiative, prepare the annual budget and such preparation shall be subject to the same requirements as the Mayor's annual budget, so far as apt.

Within fifteen days after such preparation of the annual budget, the City Council shall proceed to act by voting thereon and all amounts so voted shall thereupon be valid appropriations for the purposes stated therein to the same extent as though based upon a Mayor's annual budget, but subject, however, to such requirements, if any, as may be imposed by law.

If the Council fails to take action with respect to any amount recommended in the budget, either by approving, reducing or rejecting the same, within fifteen days after such preparation, such amount shall, without further action by the Council, become a part of the appropriations for the year and be available for the purposes specified.

Nothing in this section shall prevent the City Council, acting upon the written recommendation of the Mayor, from voting appropriations not in excess of the amount so recommended, either prior or subsequent to the passage of the annual budget.

Notwithstanding any provisions of this section to the contrary, the Mayor may submit to the City Council a continuing appropriation budget for said City on a month-by-month basis for a period not exceeding three (3) months if said City has not approved an operating budget for the fiscal year because of circumstances beyond its control.

Subsequent to the submission to the Council of the budget, and, prior to action on such, the Council shall publish in one or more newspapers of general circulation in the City a general summary of the proposed budget as submitted by the Mayor by a notice stating (1) the time and places where copies of the proposed budget are available for inspection by the public, and (2) the date, time and place, not less than two weeks after such publication, when a public hearing on said proposed budget will be held by the Council.

At the time and place so advertised, or, at any time or place to which such public hearing may from time to time be adjourned, the City Council shall hold a public hearing on the annual budget as submitted by the Mayor, at which all interested persons shall be given an opportunity to be heard for or against the proposed expenditures or any item thereof.

Section 5-4. Power of Council to Add to Appropriation; Conditions; Limitations

In case of the failure of the Mayor to transmit to the City Council a written recommendation for an appropriation for any purpose not included in the annual budget, which is deemed necessary by the Council after having been so requested by vote thereof, said Council, after the expiration of seven days from such vote, upon its own initiative, may make such appropriation by a vote of at least two-thirds of its members and shall in all cases clearly specify the amount to be expended for each particular purpose.

Section 5-5. Salary Provisions in Budget; Requirements and Limitations

The annual budget shall include sums sufficient to pay the salaries of officers and employees fixed by law or by ordinance. Notwithstanding any contrary provision of any City Charter, no ordinance providing for an increase in the salaries or wages of municipal officers or employees shall be enacted except by a two-thirds vote of the full City Council, nor unless it is to be operative for more than three months during the calendar year in which it is passed. No new position shall be created or increase in rate made by ordinance, vote or appointment during the financial year subsequent to the submission of the annual budget unless provision therefore has been made by means of a supplemental appropriation. No ordinance, vote or appointment creating a new position in any year in which a municipal election is held shall be valid and effective unless said ordinance, vote or appointment is operative for more than three months during said municipal election year.

Section 5-6. Transfer of Appropriations; Restrictions

On recommendation of the Mayor, the full City Council may, by majority vote, transfer any amount appropriated for the use of any department to another appropriation for the same department, but no transfer shall be made of any amount appropriated for the use of any department to the appropriation for any other department except by a two-thirds vote of the full City Council on recommendation of the Mayor and with the written approval of the amount of such transfer by the department having control of the appropriation from which the transfer is proposed to be made. No approval other than that expressly provided herein shall be required for any transfer under the provisions of this section.

(Amended by Ord. #274, Eff. Dec. 2nd, 1987; as further amended by
Ord. #567, Eff. May 3rd, 1996)