Article 5
FINANCE

Sec. 5.1. Fiscal year.
The fiscal and budget year of the town shall begin on the first day of January and end on the 31st day of December, unless other dates shall be fixed by action of the Town Council.

Sec. 5.2. Budget procedure.
At such time as may be requested by the Administrator 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 Administrator. The Administrator shall, based on these estimates and other data, prepare a recommended budget which he shall, together with these department estimates, submit to the Council no later than the last workday prior to November 1 of the current year. The Council shall review the budget for the following fiscal year and make such modifications and amendments as it desires.

Sec. 5.3. Budget hearings.
The Town Council shall hold in convenient places as many public hearings on the budget as it deems necessary, but at least one (1) public hearing on the budget shall be held at least fourteen (14) days before its final adoption by the Council at such time and place, convenient to the public, as the Council shall direct. Notice of such public hearing, together with a copy of the budget as submitted, shall be posted in two (2) public places and published once at least one (1) week in advance by the Town Clerk.

Sec. 5.4. Final date for budget adoption.
The budget shall be adopted not later than the last workday of the preceding fiscal year, unless another date shall be fixed by ordinance. Failure by the Council to adopt a budget by the deadline established in this section will establish the budget as recommended by the Administrator as the adopted budget.

Sec. 5.5. Appropriations after adoption of budget.
No appropriation shall be made for any purpose not included in the annual budget as adopted unless approved by a two-thirds majority of the Council after a public hearing. The Council shall, by resolution, designate the source of any money so appropriated. This provision shall not apply, however, to emergency appropriations adopted pursuant to 3.10 of this Charter.

Sec. 5.6. Quarterly budget reports; reductions.
At the beginning of each quarterly period during the fiscal year, and more often if required by the Council, the Administrator or his designee shall submit to the Council data showing the relation between the estimated and actual income and expenses to date, together with outstanding indebtedness and estimated future expenses; and if it shall appear that the income is less than anticipated, the Administrator, with Council approval, may reduce the appropriation for any item or items in the budget, except amounts required for debt, interest charges and other fixed costs, to such a degree as may be necessary to keep expenditures within the cash income. At any time, the Administrator may provide for monthly or quarterly allotments of appropriations to departments, funds or agencies under such rules as he shall prescribe.

Sec. 5.7. Transfers.
After the budget has been adopted, no money shall be drawn from the treasury of the town nor shall any obligation for the expenditure of money be incurred except pursuant to a budget appropriation, unless there shall be a specific additional appropriation therefor. The head of any department, with the approval of the Administrator, may transfer any unspent balance or any portion thereof from one fund or agency within his department to another fund or agency within his department. The Administrator, with the approval of the Council, may transfer any unspent balance or any portion thereof from one department to another.

Sec. 5.8. Capital Improvement Plan.
A. The Town Administrator, after consultation with the Planning Board, shall prepare and submit to the Council a capital improvements plan at least one (1) month prior to the final date for submission of the budget. The capital improvements program shall include:

1. A clear summary of its contents.

2. A list of all capital improvements, including major replacements, which are proposed to be undertaken during the next six (6) fiscal years, including but not limited to equipment, sewer and water mains or facilities, roads, sidewalks, bicycle paths or lanes, public open spaces and recreation facilities, new police and/or fire stations and other new public facilities and major items of equipment, with appropriate supporting information as to the necessity for such improvements.

3. Cost estimates, methods of financing and a recommended time schedule for each such improvement.

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

Sec. 5.9. Lapse of appropriations.
Every appropriation, except an appropriation for a capital expenditure or dedicated funds, shall lapse 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.

Sec. 5.10. Depository.
The Council shall approve to the Treasurer the depository or depositories for town funds and shall provide for the timely deposit of all town moneys. The Council may require such security for town deposits as it deems necessary, except that personal surety bonds shall not be deemed proper security.

Sec. 5.11. Bonding of officials.
Any town officer elected or appointed by authority of this Charter shall be bonded in an amount as required by state law or dictated by prudent fiscal practice for the faithful performance of the duties of his office. The Administrator and all officers receiving or disbursing town funds shall be so bonded. All official bonds shall be corporate surety bonds, and the premiums thereon shall be paid by the town. Such bonds shall be filed with the Town Clerk.

Sec. 5.12. Borrowing procedure.
A. Subject to the applicable provisions of state law and the rules and regulations provided by ordinance in the Administrative Code, the Council, by resolution, may authorize 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 therefor any may pledge the full faith, credit and resources of the town for the payment of the obligation created hereby, provided that no bonds shall be issued by the Council in excess of five hundred thousand dollars ($500,000.00) per issue except by a two-thirds vote of the Council, and not exceeding one million dollars ($1,000,000.00) except by a two-thirds vote of the Council and a two-thirds vote at a regular town election or special ballot called by the Council. Notification and posting of such bond issues in excess of one million dollars ($1,000,000.00) shall be in the same manner as if it were a bond issue of a town pursuant to RSA 33, as amended, with voting by ballot at a regular or special election. In addition to any other public hearings required by this Charter or state law, the Council shall hold a public hearing on such bond issue in excess of five hundred thousand dollars ($500,000.00) preceding its vote on the issue.
B. Borrowing for a term exceeding one (1) year shall be authorized by the Council only after a duly advertised public hearing.
C. For the purpose of borrowing funds under state law, the Town Council shall have all the powers and duties of the governing body; the Town of Durham shall be vested with the powers and duties of a city; and, for purposes of borrowing, the Chairman of the Council shall be vested with the powers and duties of a Mayor, as are used in state law.

Sec. 5.13. Purchasing procedure.
The Administrative Code shall establish purchasing and contract procedure, including the assignment of all responsibility for purchasing to the Administrator or his designee and the combination purchasing of similar articles by different departments. The Council shall establish dollar limits for purchases and contracts which must be by competitive bid and shall establish the bidding procedures. No competitive bids shall be required when purchasing through the State of New Hampshire or at State of New Hampshire bid prices. Requirements for bids may be waived in specific instances by a two-thirds vote of the Council. The Council shall establish dollar amounts for purchases and contracts over which no purchases shall be made or contracts entered into without the affirmative vote of a majority of the Council. If the Council has voted to make a purchase or enter into a contract, the Administrator shall carry out the vote of the Council and enter into such transaction on behalf of the town.

Sec. 5.14. Special assessments.
When it appears, either by resident petition or Council deliberation, that a capital public improvement project should be defrayed in part or whole by special assessment, the Council shall have the authority, subject to state law, to undertake such project. The Council shall hold a public hearing on the project prior to enacting any special assessment resolution. Such resolution shall state the estimated cost of the project(s), the proportion to be borne by special assessment and the proportion to be borne by town revenues. The resolution shall designate the areas of the town or the premises on which the special assessment shall be levied and the conditions of payment of the levy. All of the procedures utilized in executing any project involving special assessment shall conform to the requirements of 5.13 of this Article and such special conditions as may be required by affirmative majority vote of the Council.

Sec. 5.15. Trust Funds.
A. Trustees of the trust funds. There shall be three (3) Trustees of the trust funds, who shall hold office for three (3) years and until their successors are elected and qualified, on a staggered basis so that one (1) Trustee is elected at each town election. They shall have all the powers and duties granted to Trustees of trust funds by this Charter and state law.
B. Investments. Trust funds, except where otherwise provided by the instrument creating such trust, shall be kept separate and apart from all other funds and shall be invested by the Trustees in legal investments, having been advised by the investment advisor.
C. Vacancy. In the event of a vacancy in office, the Council shall fill such vacancy by appointment, such appointment to be effective until a successor to fill the unexpired term is elected at the next town election and is then qualified to serve.