[Added 8-22-2016 by Ord. No. 34-2016]
A. General Fund Budget
(1) Submission and adoption.
Section 902 of the Charter provides:
§ 902. Submission of Balanced Budget and Capital Program.
On or before 90 days prior to the ensuing fiscal year the departments heads will submit a proposed budget and capital program to the Managing Director. On or before 90 days prior to the ensuing fiscal year the Mayor will submit to the City Council a balanced budget, capital program, and an accompanying message. The proposed balanced budget and capital program shall be in such form us the Mayor deems desirable, unless otherwise required by Council.
(2) Budget message
(a) Section 903 of the Charter provides:
§ 903. Budget message.
The budget shall be accompanied by a message which shall include:
A. An explanation of the expenditures and revenues in the proposed budget, indicating and explaining major changes from the current year and the prior year.
B. An outline of proposed programs and an explanation of new, expanded, or abolished programs or functions.
C. A summary of the City's debt position.
D. Such other material that will inform the Council and the public of municipal goals.
(3) Budget organization and content.
(a) Section 904 of the Charter provides:
§ 904. Budget
The budget shall provide a complete financial plan of all City funds and activities for the ensuing fiscal year in accordance with all generally accepted accounting principles and, except as required by this Charter, shall be in such form as the Mayor deems desirable or the Council may require. In organizing the budget, the Mayor shall utilize the most feasible combination of expenditure classification by fund, organization unit, program, purpose or activity, and object. The budget shall contain, among other things, the following:
A. It shall begin with a general summary of its contents.
B. It shall show in detail all estimated income, indicating the existing and proposed tax levies, as well as other assessments, fees and charges.
The estimated income shall mean the total of estimated revenue plus the prior fiscal year's fund balance. If a deficit exists, a plan to eliminate that deficit must be included in the budget.
C. It shall show all proposed expenditures, including debt service, for the ensuing fiscal year.
D. It shall show the number of proposed employees in every job classification and the proposed salaries of all exempt employees beginning in 2009.
[Amended 1-26-2009 by Ord. No. 3-2009]
The budget shall include the position ordinance, defined in § 5-212, Ordinances, which shows the number of all proposed employees in every job classification, as defined in § 70-201, Categories of employment, highlighting changes and the proposed salaries of all exempt employees beginning in 2009 (plain italic language required by Bill No. 3-2009 enacted January 26, 2009, and approved by the Mayor January 27, 2009).
[Amended 10-26-2009 by Ord. No. 60-2009; 8-27-2012 by Ord. No. 86-2012]
[a] In some cases, however, prudent succession management may call for temporarily exceeding the position allowance in a particular department. Some examples are:
[i] When there is a known planned retirement of an individual in a highly technical position, smooth operations would call for an extended period of knowledge transfer that would require hiring the replacement individual prior to the retirement.
[ii] In the case of extended apprenticeships or training periods, such as police, it would make sense to consider the historic rate of attrition when determining the ideal class size. This would provide a more consistent number of trained staff versus the current system which can produce peaks and valleys.
[b] Therefore, in order to manage the operations of the City more effectively, City Council may, by ordinance, authorize the Managing Director to exceed the position ordinance for any department with the following conditions:
[i] No departmental position ordinance will be exceeded for a period of time greater than six months.
[ii] The temporary addition of employees will not cause the total wages of the City to exceed budgeted levels.
[iii] The Managing Director will report to Council on all planned hires which will exceed any position ordinance and will report on the status of all such hires on a regular basis.
[iv] At no time will the total number of City employees exceed the total number of employees authorized under position ordinances by more than 10 employees.
E. It shall be so arranged as to show comparative figures for actual and estimated income and expenditures for the current fiscal year and actual income and expenditures of the preceding four fiscal years.
F. It shall indicate proposed expenditures during the ensuing fiscal year, detailed by offices, departments and agencies, in terms of their respective work programs and the methods of financing such expenditures.
G. It shall indicate proposed capital expenditures during the ensuing fiscal year, detailed by office, departments and agencies when practicable, and the proposed method of financing each such capital expenditure. The Mayor will include this separate capital program section in the annual budget and submit to Council with appropriate supporting information as to the necessity for such programs.
H. It shall indicate anticipated net surplus or deficit for the ensuing fiscal year of each utility owned or operated by the City and the proposed method of its disposition; subsidiary budgets for each such utility giving detailed income and expenditure information shall be attached as appendices to the budget.
The total of proposed expenditures shall not exceed the total of estimated income.
Editor's Note: Section 901 of the Charter provides:
§ 901. Fiscal year.
The fiscal year of the City shall be the calendar year. If not prohibited by law, the Council may, by ordinance, adopt a different fiscal year, specifying an orderly procedure for financial and budgetary controls in making such transition.
(4) Adoption.
(a) Section 905 of the Charter provides:
§ 905. City Council action on budget.
I. Notice and hearing. Council shall publish in one or more newspapers of general circulation in the municipality the general summary of the budget with a notice stating:
A. The times and places where copies of the budget message and budget document are available for inspection by the public.
B. The time, place, and date, not less than 15 days or more than 30 days after such publication, for a public hearing on the budget. The public hearing shall not be on the date of a regular Council meeting.
C. The proposed budget shall be available for public inspection at City Hall and copies shall be available for the public at a reasonable fee to be set by the Council.
(5) Amendments.
(a) Section 905 of the Charter provides:
§ 905 (b) Amendment before adoption.
After the public hearing, the City 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 expenditures required by law or for debt service or for an estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than total estimated income and thereby allowing for line item changes by the City Council.
If the amended budget increases, decreases, or readjusts funding requirements by more than 5%, or adds or deletes a program, the budget shall be returned to the Mayor immediately for comment and resubmission to the Council within three normal City workdays.
Council shall provide for another public hearing to be held within five days after the Mayor has resubmitted the budget.
(b) After the public hearing, the City 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 expenditures required by law or for debt service or for an estimated cash deficit, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than total estimated income and thereby allowing for line item changes by the Council.
(c) If the amended budget increases, decreases, or readjusts funding requirements by more than 5%, or adds or deletes a program, the budget shall be returned to the Mayor immediately for comment and resubmission to the Council within three normal business days.
Three normal City work and/or business days ("normal business days" shall mean weekdays and shall exclude Saturdays, Sundays and holidays).
(d) Council shall provide for another public hearing to be held within five regular business days after the Mayor has resubmitted the budget.
Five normal City work and/or business days ("normal business days" shall mean weekdays and shall exclude Saturdays, Sundays and holidays).
(6) Adoption.
(a) Section 905 of the Charter states:
§ 905 (c) Adoption. Council must adopt an annual budget by no later than December 15 of the fiscal year currently ending. If Council fails to adopt a budget by December 15, then the Mayor's original proposed balanced budget shall become the official budget of the City for the ensuing fiscal year.
(b) The Council must adopt an annual budget by no later than December 15 of the fiscal year currently ending. If Council fails to adopt an annual budget by that date, the Mayor's original proposed balanced budget shall become the official budget of the City for the ensuing fiscal year.
(c) Within 30 days after the adoption of a budget ordinance, the Finance Director shall file a copy of the budget with the appropriate state agency.
(7) Revised budget.
(a) Section 906 of the Charter provides:
§ 906. Revised budget. Notwithstanding any other provisions of this article, when the fiscal year of the City is the calendar year, in any year following a Municipal election year the Council may, within 45 days after the start of the fiscal year, revise the budget and tax levies adopted by the previous Council. The procedures for adopting a revised budget shall be in accordance with §§ 905, 906, with the time periods adjusted to 45 days after the start of the fiscal year. Ordinances adopting a revised budget shall be effective as of the start of the fiscal year and shall rescind and replace the budget ordinance of the previous Council. It is the intent of this Charter that a new Council, in the year following a municipal election, shall have the power to revise the budget and tax levies adopted by the previous Council.
(b) Within 15 days after the adoption of an amended budget ordinance, the Finance Director shall file a copy with the appropriate state agency.
(8) Amendments after adoption.
(a) Section 908 of the Charter provides:
§ 908. Amendments after adoption.
1. Emergency appropriations may be made by the Council to meet a public emergency posing a sudden, clear and present danger to life or property. Such appropriations may be made by emergency ordinance in accordance with the provisions of § 220 of this Charter.
2. Supplemental appropriations may be made by the Council by ordinance upon certification by the Mayor that there are available for appropriation revenues in excess of those estimated in the budget.
3. Transfer of appropriations may be made in accordance with provision of the Administrative Code.
Editor's Note: Section 220 of the Charter provides:
§ 220. Emergency ordinance.
An emergency ordinance may be adopted to meet a public emergency posing a sudden, clear and present danger to life or property. An emergency ordinance shall be introduced in the form and manner prescribed for ordinance generally, except that it shall be plainly designated as an emergency ordinance and shall describe in clear and specific terms the nature of the emergency. Every emergency ordinance shall automatically stand repealed as of the 91st day following the date on which it was adopted, but this shall not prevent reenactment of the ordinance if the emergency still exists.
(b) Transfer of appropriations may be made in accordance with the provision of the Administrative and Fiscal Codes in accordance with the provisions of § 908 of the Charter.
B. Capital Program. [Amended 10-22-2012 by Ord. No. 98-2012]
(1) Definitions.
(a) Capital improvement program (CIP). A five-year plan that shall contain eligible capital projects listed in order of priority for funding during the five-year period.
(b) Capital project. Any project funded or proposed to be funded by public monies in part or whole to build, restore, retain, rehabilitate, purchase or repurchase any equipment, property, facility, infrastructure, vehicle, hardware for information technology, park facility, or building that is to be used for the public benefit or is a public asset, and has minimum total value of $50,000.
(c) Capital program budget. An annual budget that shall identify the total funding and source of funding for each capital project adopted in the capital improvement plan that to be executed during the fiscal year.
(d) Capital purchase. Any purchase of a vehicle or other motorized equipment.
(e) Capital expenditure. An allocation from the capital budget for an approved capital project.
C. Capital priorities. Each year in the first week of May, the Mayor shall provide an annual statement of CIP priorities to the Council and to the departments funded by the CIP. The statement of priorities shall indicate substantive outcomes that the City is seeking to achieve through projects funded through the CIP and operational goals.
(1) Project and purchase proposals.
(a) Each year in the first week of June, the Finance Department shall issue a formal request to each City department for capital project proposals. The request shall be via a standard format set by the Finance Director that includes an estimate of the aggregate size, in dollar figures, of the proposed capital budget for the fiscal year.
(b) Each capital project and purchase proposal shall be submitted to the Finance Director by the first week of July and shall include the following:
[1] For projects:
[a] A description of the geographic location of each proposed capital project. If a capital expenditure is for a general citywide project, the description shall list anticipated locations, but note that the list may not be exhaustive;
[b] An estimated timeline for the completion of the capital project;
[c] An estimated total budget for the capital project;
[d] Any potential impact the capital project may have on the City's operating budget;
[e] The estimated useful life of the capital project;
[f] For capital projects related to the general maintenance of infrastructure, the total projected funds required to improve or rehabilitate the infrastructure type citywide to an acceptable state of function of repair;
[g] The departmental priority for each capital project submitted;
[h] A statement of whether the capital project will impact public safety or public health;
[i] A statement of whether the project is CDBG eligible;
[j] A proposed source of financing;
[k] A statement of whether the capital project is consistent with the City Comprehensive Plan.
[2] For purchases:
[a] A description of the proposed vehicle's use;
[b] A description of the condition of the vehicle being replaced including mileage and age;
[c] The inventory of vehicles used by the department with a statement of primary purpose and frequency of use;
[d] An estimated total budget for the capital purchases.
(c) Charter § 911 (b) (6) states that All Capital Projects must be included in the Capital Program Budget.
(2) Capital Improvement Program Committee, the CIPC.
(a) The Capital Improvement Program Committee (CIPC) shall advise the Mayor and City Council on the selection and prioritization of all capital projects and ensure that the CIP is properly administered. The membership of the CIPC shall consist of the following seven members:
[1] Director of Finance;
[2] Director of Community Development;
[3] Director of Public Works;
[4] Chief of the Fire Department;
[5] Chief of the Police Department;
[6] City Auditor;
[7] One Member of City Council, appointed by the President of City Council.
(b) The Chair or assignee of the CIPC shall provide a complete listing of all capital project proposals for the CIPC members to review and analyze prior to the meeting on the proposed projects.
(c) The Chair or assignee of the CIPC shall produce a report on the findings of the committee.
(3) Contents of the CIPC Report.
(a) Each year the CIPC shall produce a report, as required by Section 911 (1) of the Home Rule Charter, Preliminary feasibility study that details the following:
[1] A clear general summary of its contents;
[2] Cost estimates and recommended time schedules for each improvement of other capital expenditure;
[3] Method of financing, upon which each capital expenditure is to be reliant;
[4] The annual cost of operating and maintaining the project to be constructed or acquired.
[5] The percentage of total funds to be allocated to capital purchases versus capital projects.
Charter § 911 (b) (2) also requires a list of all capital improvements and other capital expenditures which are proposed to be undertaken during the five fiscal years next ensuing, with appropriate supporting information as to the necessity for each;
(b) Each capital project proposal shall be ranked by the CIPC according to the following criteria:
[1] Projects that will resolve an imminent threat to public or employee safety or health;
[2] Achieve compliance with federal or state statutory mandates;
[3] Reduce expenditures in the operating budget;
[4] Improve efficiency or effectiveness of service delivery;
[5] Comply with the City's Comprehensive Plan;
[6] Achieve community or economic revitalization;
[7] Any other criteria as determined by the Committee.
(c) The CIPC shall also evaluate the five-year CIP and propose any changes that are necessary to ensure that the plan is consistent with the City's capital needs.
(d) The CIPC Report shall be provided to the Mayor by no later than the first week of September of each year, and the Chair of the Committee or assignee shall draft the report.
(4) Submission and approval.
(a) The Mayor shall prepare and submit to the City Council a five-year capital program no later than the final date for submission of the budget. The capital program shall include a capital budget. The proposed five-year capital program and budget shall be posted on the City's website for public review on the date the budget is submitted to Council.
(b) The Mayor, with the assistance of the Managing Director, Finance Director and the Director of Community Development and in accordance with the provision of the Municipalities Planning Code (53 P.S. § 10209.1), the Managing Director shall be responsible for developing administering the capital budget. The Mayor shall prepare and submit to the City Council a five-year capital program no later than the final date for submission of the budget.
(c) The Council approval of capital projects in this preliminary feasibility study will require a simple majority vote in order to move on to a final approval and funding acceptance.
(5) Final proposal and financing Charter § 911 (d).
(a) The final capital project proposal and financing shall include:
[1] A clear general summary of its purpose and justification.
[2] The cost estimates and time schedule for the capital project, including the cost of the post-project-completion audit.
[3] The method of financing and sources upon which this capital project is reliant.
[4] The annual cost of operating and maintaining the project to be constructed or acquired.
[5] This final capital project proposal will be published and made available for the public to review (use notice and hearing notice, Charter § 912). Capital project replaces capital program.
[6] The final Council approval of capital projects will require five votes to approve.
(b) The contracts for capital projects shall be subject to the procurement process established by the Charter and the Code.
(6) City Council action on the capital improvement program (Charter § 912)
(a) Notice and hearing. Council shall publish in one or more newspapers of general circulation in the municipality the general summary of the capital program with a notice stating:
[1] The times and places where copies of the capital program message and capital program document are available for inspection by the public.
[2] The time, place, and date, not less than 15 days or more than 30 days after such publication, for a public hearing on the capital program. The public hearing shall not be on the date of a regular Council meeting or on hearing date of the operating budget.
[3] The proposed capital program shall be available for public inspection at City Hall and copies shall be available for the public at a reasonable fee to be set by the Council.
(7) Adoption. [Charter § 912(3)(b)] Council must adopt an annual capital program by no later than December 15 of the fiscal year currently ending. If Council fails to adopt a capital program by December 15, then the Mayor's original capital program shall become the official capital program of the City for the ensuing year.
(8) Capital project execution. [Charter § 911 (d) (3), Capital project reporting.]
(a) Current projects. All capital projects in process must be reported on a quarterly basis and provide an update on cost, completion date, and estimated revised operating costs. This information is to be supplied by the Finance Director and the Project Manager to the City Council in such a form that it is available to the public.
(b) Quarterly report. The quarterly report on all capital projects approved for the current budget year shall be distributed to Council by the last day of each fiscal quarter. The report shall include the following:
[1] A clear general summary of its purpose and justification.
[2] A statement of each project's status as of the date of the report.
[3] A statement of whether the project is 50% more or less completed.
[4] The cost estimates and time schedule for each capital project, including the cost of the post project completion audit.
[5] The method of financing and sources upon which this capital project is reliant.
[6] The annual cost of operating and maintaining the project to be constructed or acquired.
Also refer to Charter § 911 (d)(3)(a)
Current projects. All Capital Projects in process must be reported on a quarterly basis and provide an update on cost, completion date, and estimated revised operating costs. This information is to be supplied by the Finance Manager and the Project Manager to the City Council in such a form that it is available to the public.
(c) Extended projects. If commencement of a capital project does not begin by end of the fiscal year following the year in which final approval is obtained, the project must go through § 911(d)(1) and (2) of and as required by the Charter § 911(d)(3), and Subsection K(l), (2) and (3) of this section in the subsequent year.
(d) Post-project-completion audit. (Charter § 911(d)(4)) Following completion of the capital project, a complete and detailed audit must be published and made available to the public. This post audit is to be completed by an independent auditor appointed by the Council. The purpose of the post audit is to confirm the estimates of costs and explain any deviation between actual and estimated costs.