Town Of Sharpsburg Fy 2009-2010 Budget Introduction

Town of Sharpsburg FY 2009-2010 Budget Introduction INTRODUCTION Section 159-8 of the North Carolina General Statutes requires each local unit of government to operate under a balanced budget ordinance. Statutes prohibit a local government from expending funds that are not in accordance with a board approved budget ordinance. The adopted Sharpsburg budget provides a basis for all fiscal policy decisions during the period covered. The Sharpsburg Town Administrator has been appointed as the Budget Officer by resolution of the Town Board of Commissioners.

BUDGET ORDINANCE The Sharpsburg Budget Ordinance is the legal document adopted by the Board to estimate revenues, establish appropriations, and levy taxes for a unit of government. G.S. 159-13(b) provides specific directions and limitations that bind the governing board in adopting the budget. The Budget Ordinance must be organized by fund. Within each fund, revenues should be organized by source while expenditures are organized by function, department, or program. Transfers, appropriated fund balance, and contingencies should be separated with each fund. In addition to the ordinances, most units also prepare a detailed budget that is used as a basis for the information contained in the actual ordinance. The Budget Ordinance should be adopted as an official document. The ordinance may not be adopted by mere reference to it in the board meeting Minutes (G.S. 159-13 (d)). Once the ordinance is adopted, a copy must be presented to the Finance Officer, Budget Officer, and Town Clerk within five days after adoption of the ordinance by the Board of Commissioners.

BUDGETING AMOUNTS FOR CONTINGENCIES A contingency line item appropriation serves to set aside funds in the budget for unanticipated expenses within a department or functional area. No actual expenditures are made within the contingency line item. Funds must first be re-allocated from the contingency line to another authorized expenditure line item by a Budget Amendment. It is the responsibility of the Budget Officer to seek approval for Budget Amendments as mandated in the Annual Budget Ordinance.

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COPIES OF THE BUDGET ORDINANCE Copies of the Budget Ordinance shall be furnished to the Town Clerk, Board of Commissioners, Budget Officer, and Finance Officer to be kept on file by them for their direction in the disbursement of funds for FY 2009-2010. The total budget for the Town of Sharpsburg for FY 2009-2010 is $5,234,181.

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