TOWN OF MERRIMACK
CHARTER COMMISSION
Budget Process Sub-Committee
Minutes
November 4, 2005
The meeting was called to order at 9:10 AM in the Town Hall Conference Room. Present were Tom Mahon, Tim Tenhave and Finlay Rothaus.
Mr. Mahon opened the meeting by handing out copies of two proposals for language: one to implement an Advisory Budget Committee; one to implement an Official Ballot Budgetary Meeting. (The proposed language for both items is attached).
The language of the two proposal was reviewed by the attendees. Mr. Mahon explained the contents of each proposal and how he had arrived at the quorum number for the Official Ballot proposal.
The focus of the meeting was on the Official Ballot language. Since Mr. Tenhave and Mr. Rothaus have been advocates of this form, Mr. Mahon urged them to take the language, distribute it to the entire commission and make personal contact with each member about the proposed language prior to Tuesday’s Public Meeting. Mr. Tenhave and Mr. Rothhaus agreed.
The meeting adjourned at 9:40 AM.
Respectfully submitted,
Thomas J. Mahon
Chairman
Advisory Budget Committee Language
Article 5-2
1.
Advisory Budget Committee. There shall be an [elected]
Advisory Budget Committee of seven (7) members [appointed by the Moderator] [appointed
by the Town Council] who shall serve three (3) year terms on a staggered
basis to advise the Town
Council on budgetary matters. Its
purpose is not to legislate or drive budget policy.
Organization. A quorum of 4 or more committee
members shall be necessary to conduct any committee business. The Advisory Budget Committee shall:
a)
act in
all matters as a body
b)
organize
and adopt rules of procedure not inconsistent with NH state law and this
charter
c)
elect
a chair, vice chair and clerk from its members on an annual basis
Vacancy. Should a vacancy occur, [the remaining members] [the Moderator]
[the Town Council] shall appoint a replacement to serve until the next
regular Town election at which time a replacement shall be elected to serve until
the next regular Town election.
However, if the vacancy occurs within 60 days of the next regular Town
election, no appointment shall be made and the vacancy shall be filled by
election at the regular Town election for the unexpired term.
Article 7 Finance
Preparation of Budget
The Council shall convey to the Manager expectations and
parameters as guidance for preparation of the budget for the ensuing fiscal
year, no later than 120 days before the end of the current fiscal year. Such guidance may include, but not be
limited to, expenditures necessary for the operations of town departments,
revenues, enterprise operations, implementation of capital projects and the
town portion of the tax rate.
The preparation of the fiscal budget of the Town shall begin
at such time as specified by the Manager, or as directed by the Administrative
Code. The chief officer or director of each department shall submit to the Manager
an itemized estimate of the expenditures and revenues, if any, for the next
fiscal year for the department or activities under the officer's control. The
Manager shall, based on these estimates and other data, prepare a recommended
budget which shall, together with these department estimates and a budget
message, be submitted to the Council and the Advisory Budget Committee [no later than 90 days before the end of
the fiscal year] on such date as the Council shall establish. In presenting
the budget to the Town Council and the Advisory Budget Committee, the Manager
shall also include a detailed report of estimated revenues other than those to
be derived from real estate taxes, paying particular attention to enterprise
departments or activities, and an estimate of the impact on the town portion of
the tax rate.
Budget Deliberation. After consultation with the Advisory Budget Committee, the
Council shall establish a schedule for the joint review of the Manager’s
recommended budget. Within 10 days
of completion of the joint review, the Advisory Budget Committee shall convey
their advisory report on the budget to the Council.
Budget Hearings
The Council shall hold at such time
and place, convenient to the public, as many public hearings on the budget as
it deems necessary, but at least one public hearing on the budget shall be
scheduled not later than 25 days before the end of the fiscal year and the
final adoption of the budget by the Council. The Council shall not adopt a
final budget until at least 10 days after the public hearing.
Notice of such public hearings,
together with a copy of a budget document showing the most recent fiscal year’s
expenditures, appropriation voted for the current fiscal year, the manager’s
budget and the council’s budget, and the report of the Advisory Budget
Committee shall be posted in two public places, and on the town’s web site. A
copy of the budget and the report of the Advisory Budget Committee shall be
available to the public at the office of the Town Clerk during regular business
hours. In addition, notice of such public hearing shall be published in a newspaper
of general circulation in the Town at least one week prior to each hearing by
the Town Clerk.
Quarterly budget reports
Quarterly, and more often if required by the Council, the Manager or his
designee shall submit to the Council and the Advisory Budget Committee data
showing the relation between the estimated and actual income and expenses to
date, together with outstanding indebtedness and estimated future expenses, anticipated transfers, other major
variances to the operating budget, active and anticipated risks to the Town
which may impact the operating
budget, and other reports related to present or future revenues and expenses
which the Council may require.
Borrowing procedure.
I. The town
council shall have the authority to issue bonds or notes in an amount not in excess
of 10 percent of the town's operating budget for the most recently concluded
fiscal year, as follows:
(a)
At least one joint meeting with the Advisory Budget Committee shall be held at
least 15 days prior to the public hearing on the bond issue or note to review
the reasons and the financial terms of the note. Notice of the time, place and subject matter of such meeting
shall be published in a newspaper of general circulation in the municipality at
least 7 days before the meeting is held and posted in at least 2 public places
in the municipality.
(b) At least one public hearing shall be held at least 30
days, but not more than 60 days, prior to the vote on the bond issue or note.
Notice of the time, place and subject matter of such hearings shall be
published in a newspaper of general circulation in the municipality at least 7
days before the hearing is held and posted in at least 2 public places in the
municipality. Nothing in this
charter shall preclude the joint meeting and the public hearing from being
schedules concurrently.
(c)
The issuance of any bonds or notes shall appear as an agenda item on the public
agenda of the town council meeting at which any vote is scheduled to be taken
and any action taken on such item shall be by a recorded roll call vote.
(d) A vote of five (5) members of the town council shall be required to
authorize the issuance of bonds or notes.
II. In the event that a proposed
bond issue or note is in excess of 10 percent of the town's operating budget
for the most recently concluded fiscal year, a referendum shall be held on said
issuance, as follows:
(a) At least one joint meeting with the Advisory Budget Committee shall be held
at least 15 days, prior to the regularly scheduled council meeting that will
consider a referendum on the issuance of the bond issue or note to review the
reasons and the financial terms of the note. Notice of the time, place and subject matter of such meeting
shall be published in a newspaper of general circulation in the municipality at
least 7 days before the meeting is held and posted in at least 2 public places
in the municipality.
(b) The town council shall, after notice and public hearing
at a regularly scheduled council meeting, order a referendum on the issuance to
be held on the Tuesday not less than 60 nor more than 67 days from the regular
meeting at which the order is passed.
(b) The town
council shall hold at least one additional public hearing on the proposed bond
or note after the issuance of its order for a referendum. The hearing shall be
held at least 30 days, but not more than 60 days, prior to the referendum.
(c) The same notice requirements for public hearings on
issuance of bonds or notes by vote of the town council shall apply to public hearings
on bonds or notes to be authorized by referendum.
(d) An additional public hearing shall be held if the
proposed bond or note issue is substantively altered by the town council after
public hearing. Subsequent public hearings shall be held at least 14 days after
the prior public hearing and shall comply with the same notice requirements.
(e) An official copy of the final bond or note proposal
shall be placed on file with the town clerk and made available to the public 7
days before the referendum and displayed at the voting place on the day of the
referendum.
(f) The town clerk shall prepare an official ballot which
shall include the following question:
"Are you in favor of appropriating the sum of $__________ for the purpose
of __________, with said sum to be in addition to any federal, state or private
funds made available therefor, and of authorizing the issuance of not more than
$__________ of bonds or notes in accordance with the provisions of the
municipal finance act, RSA Chapter 33?"
When submitting the question under this section to the voters, there shall be 2
squares printed after the question, one with the word "yes" beside it
and another with the word "no" beside it.
(g) If a 3/5 majority of the voters present and voting on
the issuance of bonds or notes shall vote in the affirmative, the appropriation
and issuance of bonds or notes in the amounts so stated in the question shall
be declared to have been adopted.
TRANSITION
Special Election
The Town
shall conduct a special election on the second Tuesday of June 2006 to elect
the following officials:
One (1) Town Councilor for a term to run from July 1, 2006
to the regular town election in April 2009.
One (1) Town Councilor for a term to run from July 1, 2006
to the regular town election in April 2008.
Three (3) Advisory Budget Committee members to serve from
July 1, 2006 to the regular town election in April 2009.
Two (2) Advisory Budget Committee members to serve from July
1, 2006 to the regular town election in April 2008.
Two (2) Advisory Budget Committee members to serve from July
1, 2006 to the regular town election in April 2007.
All shall
serve until their successors are elected and certified as provided in Article
2-7 of this charter.
[TRANSITION
INITIAL APPOINTMENT OF ADVISORY
BUDGET COMMITTEE MEMBERS.
The
Moderator shall make initial appoints of seven (7) Advisory Budget Committee
members to the following terms of office upon adoption of this charter:
Three
(3) to serve for three (3) years
Two
(2) to serve for two (2) years
Two
(2) to serve for one (1) year]
[TRANSITION
INITIAL APPOINTMENT OF ADVISORY
BUDGET COMMITTEE MEMBERS.
The Town
Council shall make initial appoints of seven (7) Advisory Budget Committee
members to the following terms of office upon adoption of this charter:
Three
(3) to serve for three (3) years
Two
(2) to serve for two (2) years
Two
(2) to serve for one (1) year]
DEFINITIONS
Budget Committee means the Advisory Budget Committee
established in Article 5-2
Official Ballot Budgetary Meeting Language
Amend: 3-8
Powers and Duties
Powers and Duties
Except
as herein otherwise provided, the Council shall have all the powers conferred
upon and discharge all the duties imposed upon town councils, town meetings,
boards of mayor and aldermen, and selectmen of towns by law, except the
adoption of a town budget, which prerogative is vested in the Official Ballot
Town meeting. All officers and members of all boards, commissions and
committees, and vacancies thereto shall be appointed by the Council from among
Town residents unless otherwise provided by this Charter.
ARTICLE
7
Budget Procedure
At
such time as may be requested by the Manager or specified by the Administrative
Code,
each officer or director of a department shall submit an itemized estimate of
the expenditures for the next fiscal year for the departments or activities
under his control to the Manager. The Manager shall, based on these estimates
and other data, prepare a recommended budget which shall, together with these department
estimates, be submitted to the Council on such date as the Council shall
establish. The Council shall review the budget for the following fiscal year
and make such modifications and amendments as it desires.
Budget Hearings
The
Council shall hold in convenient places as many public hearings on the budget
as it deems necessary, but at least one public hearing on the budget shall be
scheduled at least 20 days before the first session of the Budgetary Town
Meeting at such time and place, convenient to the public, as the Council shall
direct. Notice of such public hearing and Budgetary Town Meeting, together with
a copy of the budget as submitted, shall be posted in two public places. A copy
of the budget shall be available to the public at the office of the Clerk
during regular business hours. In addition, notice of such public hearing and
Budgetary Town Meeting shall be published in a newspaper of general circulation
in the Town, and posted on the town web site, at least one week prior to said
meeting.
Final Adoption of Budget
A. Notwithstanding RSA 39:3-d, RSA 40:4-e, the Town of Merrimack
shall utilize the official ballot for voting on all budgetary issues before the
voters.
B. The warrant for any annual budgetary meeting shall prescribe the
place, day and hour for each of 2 separate sessions of the meeting, and notice
shall be given in accordance with RSA 39:5.
C. The first session of
the annual budgetary meeting, which shall be for the transaction of all
business other than voting by official ballot shall be held between the second
Tuesday of March and the Saturday following the second Tuesday in March, at a
time prescribed by the Town Council. A quorum of 1% of the total number of registered voters on
the date of the meeting or 175 registered voters whichever is lower must be
present to conduct any business, including amending any warrant article and the
Operating Budget.
The
second Tuesday in April shall be deemed the annual meeting date for purposes of
all applicable statutes pertaining to hearings, notice, petitioned articles,
and warrants, including, but not limited to, RSA 31:95-d, 32:5, 32:16, 33:8-a,
39:3, 39:5.
D. The first session of the meeting, governed by the provisions of
RSA 40:4, 40:4a, 40:4b, 40:4f and 40:6-10, shall consist of explanation,
discussion, and debate of each warrant article. Warrant articles may be
amended, subject to the following limitations:
1) Warrant articles whose wording is prescribed by
law shall not be amended.
2) Warrant articles that are amended shall be placed on the official
ballot for a final vote on the main motion, as amended.
E. All budgetary warrant articles shall be placed on the official
ballot for a final vote.
F. The second session of the annual meeting, to elect officers of
the Town by official ballot, to vote on questions required by law to be
inserted on said official ballot, and to vote on all budgetary warrant articles
from the first session on official ballot, shall be held on the second Tuesday
in April.
G. The Town Clerk shall prepare an official ballot, which may be
separate from the official ballot used to elect officers, for all warrant
articles. Wording shall be substantively the same as the main motion, as it was
made or amended at the first session, with only such minor textual changes as
may be required to cast the motion in the form of a question to voters.
H. "Operating budget" as used in this section means a
statement of recommended appropriations and anticipated revenues submitted to
the budgetary town meeting as an attachment to, and as part of the warrant for,
an annual or special meeting, exclusive of "special warrant
articles", as defined in RSA 32:3, V.
I. If no operating budget article is adopted, the Town either shall
be deemed to have approved a “Default budget,” defined as the same
appropriations as contained in the operating budget authorized for the previous
year, reduced and increased, as the case may be, by debt service, contracts,
and other obligations previously incurred or mandated by law, or the Town
Council may hold a special meeting to take up the issue of a revised operating
budget only; provided that RSA 31:5 shall not apply to such a special meeting.
If no operating budget article is adopted the estimated revenues shall
nevertheless be deemed to have been approved.
J. The wording of the article on the operating budget shall be as
follows:
"Shall
the Town raise and appropriate as an operating budget, not including
appropriations by special warrant articles, the amounts set forth on the budget
posted with the warrant, for the purposes set forth therein, totaling
$____________ ? Should this article be defeated, the operating budget shall be
$_____________, which is the same as last year, with certain adjustments
required by previous action of the Town meeting, or by law or the Town Council
may hold one special meeting, to take up the issue of a revised operating
budget only."
K. Voting at the second session shall conform to the procedures for
the nonpartisan ballot system as set forth in RSA 669:19-29, including all
requirements pertaining to absentee voting, polling place and polling hours.
L. Approval of all warrant articles shall be by simple majority
except for questions which require a 3/5 or 2/3 vote by law, contract or
written agreement.
M. Votes taken at the second session shall be subject to recount under RSA
669:30-33 and RSA 40:4-c.
N. Votes taken at the second session shall not be reconsidered
except by warrant article at a subsequent annual or special meeting.
O. The warrant for any
special meeting shall prescribe the date, place and hour for both a first and
second session. The second session shall be warned for a date not fewer than 28
days nor more than 60 days following the first session. The first and second
sessions shall conform to the provision of this subdivision pertaining to the
first and second sessions of annual meetings. Special meetings shall be subject
to RSA 31:5, 39:3 provided that no more than one special meeting may be held to
raise and appropriate money in any one calendar year or fiscal year, whichever
applies, and further provided that any special meeting held pursuant to this
section shall not be subject to RSA 31:5 and shall not be counted toward the
number of special meetings which may be held in a given calendar or fiscal year.
P. The Council may make emergency expenditures
in accordance with the provisions of the Municipal Budget Law, RSA Chapter 32,
as the same may be amended from time to time.
Borrowing procedures.
A. Subject to the
applicable provisions of state law and the rules and regulations provided by
ordinance in the Administrative Code, the Council may authorize by resolution
the borrowing of money for any purpose within the scope of the powers vested in
the Town and the issuance of bonds of the Town or other evidence of
indebtedness therefore and may pledge the full faith, credit and resources of
the Town for payment of the obligation created hereby; provided that no notes
or bonds shall be issued by the Council in excess of $100,000 per issue except
by a vote of four (4) Councilors, and a 3/5 vote at regular Town election or
special ballot called by the Council. Notification and posting of such bond
issues in excess of $100,000 shall be in the same manner as if it were a bond
issue of a town pursuant to RSA 33, with voting by ballot at a regular or
special election. There must be an existing voted appropriation, so that the
borrowing does not incur expenditures in excess of the authorized voted
appropriations.
B.
Borrowing for a term exceeding one (1) year shall be authorized by the Council
only after a duly advertised public hearing.
C.
The Council may borrow in anticipation of taxes.
Amend: Article 9 – Citizen Initiatives
9-1
Petitioned articles regarding the appropriation of funds, including the
approval of bond issues shall be
presented to the Town Manager and placed on the warrant in accordance with RSA
39:3.