ARTICLE 5
Finance

Sec. 5.1. Fiscal Year.
The fiscal and budget year of the Town shall begin on the first day of July and end on the thirtieth day of June.

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. The Hooksett School District, Village Water Precinct and Central Water Precinct shall submit budgets for the following fiscal year and make such modifications and amendments as it desires. The Council shall then present their budget to the Budget Committee and subsequent actions shall follow the Municipal Budget Act.

Sec. 5.3. Budget Hearings.
The Budget Committee shall hold hearings as specified in RSA Chapter 32, but no later than 25 days before the first session of the annual or special town meeting.

1. Notwithstanding RSA 39: 3-d, RSA 40: 4-e, the Town of Hooksett shall utilize the official ballot for voting on all budgetary issues before the voters.
2. The warrant for any annual 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.
3. The first session of the annual meeting, which shall be for the transaction of all business other than voting by official ballot shall be held between the first and second Saturdays in April, at a time prescribed by the Town Council. The second Tuesday in May 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.
4. The first session of the meeting, governed by the provisions of RSA 40: 4, 40: 4a, 40: 4-b, 40: 4-f 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.
5. All budgetary warrant articles shall be placed on the official ballot for a final vote.
6. 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 warrant articles from the first session on official ballot, shall be held on the second Tuesday in May.
7. 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.
8. Operating budget as used in this section means “budget” as defined in RSA 32:3, III, exclusive of “special warrant articles”, as defined in RSA 32:3,V and exclusive of other appropriations voted separately.
9. If no operating budget article is adopted, the local political subdivision either shall be deemed to have approved 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.
10. 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, and other appropriations voted separately 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.”
11. 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.
12. Approval of all warrant articles shall be by simple majority except for questions, which require a 2/3 vote by law, contract, or written agreement.
13. Votes taken at the second session shall be subject to recount under RSA 669:30-33 and RSA 40: 4-c.
14. Votes taken at the second session shall not be reconsidered except by warrant article at a subsequent annual or special meeting.
15. 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.

Sec. 5.5. Budget Reports; Reductions.
At the beginning of each month during the fiscal year, and more often if required by the Council, the Administrator or his designee shall submit to the Council financial reports (format of reports agreed to by Council and Administrator) showing the relation between the budgeted and actual income and expenses to date, together with estimated future expenses to year end and outstanding indebtedness; 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 allotments of appropriations to departments, funds or agencies under such rules, as he shall prescribe.

Sec. 5.6. Transfer.
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. The head of any department, with the approval of the Administrator, may transfer any unexpended balance or any portion thereof from one appropriation within his department to another appropriation within his department. The Administrator, with the approval of the Council, may transfer any unexpended balance or any portion thereof from any appropriation within one department to any appropriation within any other department.

Sec. 5.7. Capital Improvement Plan.

1. The Town Administrator, after consultation with the Planning Board, shall prepare and submit to the Council a capital improvement plan at least one (1) month prior to the final date for submission of the budget. All town departments and agencies (including School District and Water Precincts) shall participate in preparing input for the capital improvement plan. The capital improvement program shall include:
   (1) A clear summary of its contents.
   (2) A list of all capital improvements which are proposed to be undertaken during the next six (6) fiscal years, including, but not limited to equipment, sewer, 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 recommended time schedule for each such improvement.
   (4) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired.
2. The capital improvement plan shall be based on a period of not less than six (6) years and shall include reference to or be influenced by, where appropriate, the town master/comprehensive plan.
3. The above information may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition.
4. The Town Council and Town Planning Board shall meet annually in preparation for and review of the capital improvement plan in a manner determined from time to time by the Town Council.
5. A summary of the updated capital improvement plan with estimated costs shall be included in the town report and such portions of the year's costs, as the Council deems appropriate, included in the town budget.
   

Sec. 5.8. Lapse of Appropriations.
Every appropriation shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered, with exceptions allowed by RSA 32.7.

Sec. 5.9. Independent Audit.
Independent compliance and financial audits shall be made of all accounts of the Town at least annually and more frequently if deemed necessary by the Council. Such audits shall be conducted according to auditing procedures of the American Institute of Certified Public Accountants, the National Committee on Government Accounting, and other such procedures which may be necessary under the circumstances by certified public accountants experienced in municipal accounting. Abstracts of the results of such audits shall be made public. At least once every seven (7) years the Council shall request that such audits be made by Certified Public Accountants other than those involved in such audits during any of the previous six years. An annual report of the Town's business for the preceding year shall be made available to the public not later than sixty days after the close of the fiscal year.

Sec. 5.10. 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, and the premiums thereon shall be paid by the Town. Such bonds shall be filed with the Town Clerk.

Sec. 5.11. Borrowing Procedure.

1. All borrowing procedures shall be in accordance with State Law.
2. Council may borrow in anticipation of taxes.

Sec. 5.12. 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 (2/3) 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. 5.13. Trust Funds.

1. 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 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.
2. 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.
3. 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.

Sec. 5.14. Gifts.
The Council may, in accordance with the provisions of State Law, apply for, accept and expend, without further action by the town meeting, money from the State, Federal or other Governmental Unit or a private source, which becomes available during the fiscal year.