City of Methuen Annual Report: 2012

C i t y o f M e t h u e n A n n u a l R e p o r t : 2 0 1 2Office of the City AuditorBudget ProcessIn a city form of government, within 120 days (extended to 170 days by special legislation) after theannual organization of the city government (which is ordinarily in early January), the Mayor isrequired to submit a budget of proposed expenditures for the fiscal year beginning on the next July1. The city or town Council may make appropriations for the recommended purposes and mayreduce or reject any item. Without a recommendation of the Mayor, the Council may not make anyappropriation for a purpose not included in the proposed budget, except by a two-thirds vote in caseof a failure of the Mayor to recommend an appropriation for such a purpose within 7 days after arequest from the Council. The Council may not increase any item without the recommendation ofthe Mayor (except as provided by legislation, subject to local acceptance, under which the schoolbudget or regional school district assessment can be increased upon recommendation of the schoolcommittee or regional district school committee and by two-thirds vote of the Council, provided thatsuch increase does not cause the total annual budget to exceed property tax limitations). If theCouncil fails to act on any item of the proposed budget within 45 days, that item takes effect.If the Mayor does not make a timely budget submission, provision is made for preparation of abudget by the Council. Provision is also made for supplementary appropriations uponrecommendation of the Mayor. Water and sewer department expenditures are included in thebudget adopted by the Council. Gas and electric department expenditures are customarily excluded.Under certain legislation any city or town which accepts the legislation may provide that theappropriation for the operating costs of any department may be offset, in whole or in part, byestimated receipts from fees charged for services provided by the department. It is assumed thatthis general provision does not alter the pre-existing power of an electric or gas department toappropriate its own receipts. As a result of an initiative law adopted in November 1980, schoolcommittees are no longer autonomous with respect to school expenditures for current purposes.The school budget is limited to the total amount appropriated by the City Council, but the schoolcommittee retains full power to allocate the funds appropriated.Department heads are generally required to submit their budget requests to the Mayor betweenNovember 1 and December 1. This does not apply to the school department, which must submit itsrequest in time for the Mayor to include them in the submission to the Council.State and county assessments, abatements in excess of overlays, principal and interest not otherwiseprovided for, and final judgments are included in the tax levy whether or not included in the budget.Revenues are not required to be set forth in the budget but estimated non-tax revenues are takeninto account by the assessors in fixing the tax levy.18Budget TrendsThe following table sets forth the trend in operating budgets. As such, said budgets reflect neitherrevenues nor state and county assessments and other mandatory items. Similarly, the budgets