Chapter 5

 BUDGETARY EVALUATION PROGRAM

[HISTORY: Adopted by the Mayor and Council of the Town of Elsmere 3-10-1988 as Ord. No. 228. Amendments noted where applicable.]

~ 5-1. Installation of program.

  A system known as the "Budgetary Evaluation Program" shall be installed.

~ 5-2. Departmental notification.

     A.   The first component of said program shall be a Departmental notification by the Finance Director of any budgeted line items approaching eighty percent (80%) of its yearly budget.

     B.     Notification shall be served one (1) month prior to reaching the expectant eighty-percent mark, based on previous expenditures, and the history of each line item in question.

     C.   Notice shall be served to Department Heads and/or Directors, Mayor and Council and Town Manager simultaneously.

~ 5-3. Duration of program.

  This program shall be used until the eighth month of each fiscal year. At this time, a full review of the town's budget shall take place by the Mayor and Council, Town Manager, Directors and Department Heads, to determine current status of budget and possible improvements to the management of tax dollars in the next fiscal period.

~ 5-4. Purpose of eight-month program.

  The purpose of having this program cut off and budget review starting at the eighth month of each fiscal year is as follows:

     A.   During the ninth month of any fiscal year, all line items of our total budget naturally should be approaching their respective eighty-percent mark.

     B.   The ending of the Budgetary Evaluation Program and the beginning of an annual review is a consistent and reliable way to evaluate all tax dollars expended during the fiscal year while increasing the knowledge base for those who review and prepare future budgets.

~ 5-5. Response by departments.

  The second component of this process shall be a procedure of response by the Department Heads and/or Directors. This component shall consist of an acknowledgment of receipt of notice, a verification that said line item is approaching the eighty-percent mark, or a statement of disagreement. This is to be sent to the Director of Finance.

     A.   If said line item can be assured by Department Heads and/or Directors that it will not exceed its budgeted amount, a simple response of that fact shall be forwarded to the Finance Director, Town Manager and Mayor and Council.

     B.   If said line item can't be kept within its budgeted amount, a response form should be completed stating reasons for over-expenditures, methods to be used to curtail excessive spending, if any, and possible ways to resolving the situation. If transferring from one line item budget to another is one possible solution, this shall also be stated.

~ 5-6. Transfers between line item budgets.

  Transfers between line item budgets shall be listed with account numbers and amounts to be transferred.

~ 5-7. Response form.

  Response form shall be sent to the Finance Director, Town Manager and Mayor/Council within one (1) week of receipt of notification.

~ 5-8. Oral presentation.

  The Department shall have an oral presentation prepared for the next scheduled work session of the Mayor/Council, if the budgeted line item will exceed one hundred percent (100%) of that fiscal year.