Home Rule Study Commission – Budget & Finance in the Home Rule Charter

Home Rule Study Commission - Budget & Finance in the Home Rule Charter

The content below is provided by the Home Rule Study Commission, not the City of Lancaster or the Sorace Administration. Learn more about the Home Rule Study Commission at https://www.cityoflancasterpa.gov/home-rule/.

Home Rule Charter and Fiscal Procedures

The most notable changes are to move the submission of the General fund budget to October rather than late-November, to require submission of capital program and budget in June and to approve this before presenting the General fund budget, and to require quarterly budget updates to council by the administration and department heads.

• The public will receive more than double the time allowed now to review and comment on the City's annual budget and tax rates.
• The charter requires development of a multi-year City capital program with a process that provides for public debate before decisions are made. Currently, unless bond or other financing is required, public input is not required for large capital spending.
• Every three months, the charter requires the Mayor to report to the Council and public on the progress and performance of the budget at a public meeting.
• Requires a process be established so citizens can expect a written response to questions presented during the budget approval process,
• Requires a 3-year budget outlook (upcoming year + 2 years)
• Requires the administration to highlight new programs, expanded programs, abolished programs
• A "taxpayer protection" clause, where year-over-year budgeted total tax revenue may not increase more than 6% without additional action by Council
• The Controller, a separately elected and independent official, has budget review authority before budget adoption.

While the Charter added new processes for how decisions are made, some things did not change. The budget has to be balanced (revenue has to cover all expenses), the Mayor has to give a public budget message, the fiscal year is January 1 to December 31, Council can revise the budget, though the Mayor has veto power over council revisions and Council can override those the mayor's veto.

Council Action on Budget

• When the budget is introduced, it includes the Mayor's budget message and related documents
• Council must hold at least one special hearing to review budget
• Council may amend the budget after public hearing
• Council may add or increase or delete or decrease programs or line-items, except debt service or items required by law
• If Council revisions exceed certain thresholds, an additional public review is required.
• Must be adopted 16 days before end of the fiscal year.
• If Council fails to adopt, the Mayor's proposed budget becomes the Official Budget.

Capital Program and Budget

• Administration must submit a 5-year capital program report no later than June 30 of each year.
• Capital budget review procedures are similar to general fund budget review procedures.
• Council responsible for adopting or amending proposed capital program no later than September 30, following the same process as approving comprehensive budget.
• Capital spending reports are required and must include original estimates of financing and project costs and must explain any material deviation between actual and estimated financing and project costs.

Sincerely,

Home Rule Study Commissioners

PS: two local reporters have attended every Commission meeting. Consider reading their work, which is available to all with no subscription required.

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