Budgets and Finance

V.S.A. tit. 24 Appendix, ch. 149, subch. 4

in effect

24 App. V.S.A. ch. 149, § 41 Fiscal year of the Town government

41. Fiscal year of the Town government The fiscal year of the Town government shall be fixed by the Selectboard. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 42 Town Manager’s proposed budget timetable and preparation

42. Town Manager’s proposed budget timetable and preparation (a) Submission of timetable. At least five months before the scheduled date of Town meeting, the Town Manager shall prepare and present to the Selectboard and Budget Advisory Committee a proposed timetable that shall project the progress of events leading to the adoption of the Town budget. (b) Statement by the Selectboard regarding budget policy. Upon receipt of the Town Manager’s timetable, the Selectboard shall issue an annual budget policy statement, outlining the direction the Town Manager shall take in the drafting or assembly of the budget document. (c) Departmental submissions. In following the timetable submitted to the Selectboard, all department heads, and elected or appointed officials with budget responsibility, shall submit budget requests to the Town Manager in the format established by the Town Manager. (d) Drafting of annual budget. (1) Unified administrative request. The Town Manager shall, after consultation with department heads, submit to the Selectboard and the Budget Advisory Committee a single budget request from the administration for all departments. (2) Budget message. The Town Manager’s proposed budget shall be introduced by a budget message that shall explain the budget in both fiscal terms and in terms of work programs. It shall outline the budget of the Town for the coming year, describe important features of the budget, indicate any major changes from the current year in terms of revenues and expenditures, indicating the reasons for any changes. The message shall summarize the Town’s debt position, include a profile of the capital expenditure program for the year, and also include any other material that the Town Manager deems appropriate. (3) Budget; contents and format. (A) The budget shall provide a complete financial plan for all Town funded activities for the ensuing fiscal year, and except as required by law, or charter, shall be in a form the Town Manager deems appropriate or the Selectboard may prescribe. (B) The Town Manager shall organize the budget by utilizing the most feasible combination of expenditure classifications by fund, organizational units, work programs, purposes, actions, and objects. (C) The budget shall begin with a clear, general summary of its contents and shall show all expected revenue and all proposed expenditures. (D) The budget should be arranged so as to show comparative figures for actual and budgeted revenues and expenditures for the preceding year, and for the year covered by the budget. (E) The budget shall include: (i) proposed expenditures for operations during the ensuing fiscal year, detailed by offices, departments, and agencies, detailed in terms of respective work programs, and the method of financing such expenditures; (ii) amount required to meet the interest on maturing bonds, notes, or other outstanding indebtedness; (iii) proposed capital expenditures during the ensuing fiscal year detailed, wherever practical, by office, department, or agency, along with the method of financing; (iv) proposed estimated revenues to be raised from each source to be collected, levied, or raised by taxation to defray the expenses of the Town. (e) Subsidiary budgets for utilities. (1) For each utility or enterprise owned and operated by the Town, a subsidiary budget shall be drafted in accordance with these guidelines, with the process of review and approval to be dictated by the Selectboard. (2) Cross subsidy in areas other than fund management between Town government operations and utility operations shall be limited to services and support provided as approved by the Selectboard. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022; 2023, No. M-2, § 2, eff. May 4, 2023.

24 App. V.S.A. ch. 149, § 43 Capital expenditure program

43. Capital expenditure program (a) Preparation and submission. The Town Manager, after consultation with department heads, shall submit a proposed five-year capital expenditure program to the Selectboard, with a copy provided to the Budget Advisory Committee, at least three months prior to Town meeting. (b) Contents. (1) The capital expenditure program shall include: (A) a narrative summary of requests; (B) a list of all capital expenditures to be proposed for the next five years with appropriate supporting data; (C) cost estimates, proposed methods of financing, and necessary time schedules for each improvement or asset. (c) Revision and update. The above program shall be revised and extended each year to reflect progress or projects still pending or assets to be acquired. (d) Inclusion in budget. A summary of the capital expenditure program shall be included in the budget with special emphasis on the expenditures for the particular year. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 44 Reserve funds

44. Reserve funds (a) The Selectboard may raise and appropriate money for the establishment of reserve or equipment reserve funds for the financing of all or part of: (1) the construction, reconstruction, or acquisition of a specific capital improvement, or the acquisition of a specific item of equipment; (2) the construction, reconstruction, or acquisition of a type of capital improvement or acquisition of a type of equipment; (3) other purposes to meet specific obligations and needs of the Town so as to ensure efficient operations. (b) The size and regulation of reserve funds shall be determined by the Selectboard. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022; 2023, No. M-2, § 2, eff. May 4, 2023.

24 App. V.S.A. ch. 149, § 45 Board review and final action

45. Board review and final action Board review. (1) The Selectboard shall schedule one or more meetings, as it deems appropriate, for the review and discussion of the proposed budget and comments from the Budget Advisory Committee. (2) Upon completion of its review, the Selectboard shall act to finalize its budget proposal. (3) The Selectboard shall then schedule a public hearing prior to Town meeting, warned as such. (4) Following the public hearing, the Selectboard shall act to officially finalize the budget to be finalized or proposed at Town meeting. (5) The Selectboard, in finalizing the budget, shall place it on the warning as a gross appropriation. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 46 Special appropriations

46. Special appropriations In response to a request, or upon its own initiative, should the Selectboard so judge, the appropriation relative to a special element of Town business may be placed on the warning as a special appropriation by a majority vote of the Board Selectboard. In taking action, the Selectboard shall maintain the right to reject, alter, or reduce a request. This section does not apply to articles placed on the warning by petition, as described in subdivision 22(b)(3)(C)(i)(II) of this charter. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 47 Budget Advisory Committee; budget process

47. Budget Advisory Committee; budget process The Selectboard shall appoint a Budget Advisory Committee that shall be composed of not less than five and not more than nine registered voters of the Town at least six months before the scheduled date of the annual Town meeting. The Budget Advisory Committee shall be governed by operating procedures established by the Selectboard. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 48 Appropriation; budget

48. Appropriation; budget (a) Gross appropriation fixed and levy. (1) No appropriation may be voted unless such action was duly warned. (2) As of the effective date of the budget, all amounts stated therein are appropriated (for the specified agency’s or department’s purpose). Adoption of the budget shall constitute appropriations of the amounts specified therein from the funds indicated. This shall constitute an authorization to raise all monies required. (3) Nothing herein shall limit the authorizing of payments or making of capital expenditures to be financed, whether in whole or in part, by the issuance of bonds except as provided in section 52 of this charter. (4) The Town Manager or the Town Manager’s designee may, upon approval of the Selectboard, make a contract or lease for payments beyond the end of the fiscal year. (5) Every appropriation, except an appropriation for a capital expenditure and multiyear contracts for which Town monies have been obligated, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the purpose for which it has been made has been accomplished or abandoned. (b) Overruns on gross appropriations; emergency appropriations. (1) The gross appropriation may not be exceeded, except by consent of the Selectboard, as limited in this charter. (2) In the event of an emergency situation officially declared by the Selectboard, an amount not exceeding five percent of the gross appropriation may be expended. (3) Any amount in excess of five percent of the gross appropriation shall be warned and voted by special or regular Town meeting. (c) Under expenditures; excess revenues. (1) Under expenditures. If during the fiscal year, the Board, upon recommendation and certification of the Town Manager, determines that there are funds available due to under expenditure of the funds or revenue returns exceeding projections proposed in the budget, the Board may make supplemental appropriations for the fiscal year up to the amount of such excess, not to exceed five percent of the gross appropriation. (2) Excess revenues unexpected. If unexpected revenues or underexpenditures equal over five percent of the gross appropriation respectively, such overage shall be carried over as surplus. (d) Surplus. Any surplus created, subject to the provisions of subsection (d) of this section, may be carried over to the next fiscal year’s budget and counted as a fixed receipt on the calculation of the ensuing tax rate or, by action of the Selectboard, may be placed in a capital reserve fund as provided for in this charter. (e) Transfers—alterations in the work program. (1) The Town Manager may transfer, at any time, with a public report to the Selectboard, an unencumbered appropriation balance, or portion, between general classifications of expenditures within an office, department, or agency. (2) The Selectboard may transfer, by formal vote, any unencumbered portion or balance of an appropriation from one department or agency to another. (3) In no case shall a transfer violate the gross appropriation as limited by subsection (a) of this section. (f) Ongoing appropriation; in the event of a budget revote. (1) In the event that the budget is not adopted before the beginning of the fiscal year, the amount appropriated for the prior year shall be deemed adopted. (2) In the event that the budget is not adopted before the beginning of the fiscal year, expenditures during the budget revote shall be limited on a monthly basis to an allotment based on the prior year’s appropriation until such time as the budget is adopted. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 49 Financial administration and Town budget

49. Financial administration and Town budget (a) Finance Director. (1) The Town Manager may appoint, upon merit alone, a person who shall serve as the Finance Director. (2) The Finance Director shall be a member of the Town administration and be subject to all rules and regulations of the Town administration, and may not be the Town Treasurer or a Selectboard member. (3) The Finance Director shall perform such duties as the job description submitted by the Town Manager and approved by the Selectboard shall indicate. (b) Depository of Town funds; cash and fund management. (1) The Selectboard shall designate the depository of Town funds and shall ensure the appropriate cash management by the Town Treasurer and administration. (2) The Selectboard may provide for such security to Town deposits as it may deem necessary, except that personal surety bonds shall not be deemed proper security. (3) The officer responsible for each fund shall issue a report of investments and yields to the Town Manager and the Selectboard at least annually and when requested by either the Town Manager or the Selectboard. (c) Independent audit. (1) The Selectboard shall provide for an annual independent audit of all Town accounts and may require for any special audit it deems necessary. (2) The audits shall be made by certified public accountant or firm of such accountants who have no personal interest, direct or indirect, with Town government, its fiscal affairs, or its officers. (3) The Town Manager shall appoint such accountant or firm annually at a time proper to the scheduling of the audit itself. (4) Should the State of Vermont make such an audit at the request of the Selectboard, it shall meet the requirements of this section. (5) At the conclusion of the audit, the auditors shall present their report and findings to the Selectboard in open session. (d) Authorization for expenditure of Town funds. (1) Money shall not be paid out of the Town Treasury unless it is authorized by a payroll or payment authorization signed by at least three members of the Selectboard, or in accordance with the provisions of 24 V.S.A. § 1623. (2) No payment of money on account of any department of which the Town Manager has supervision shall be made except upon vouchers approved by the Town Manager or the Town Manager’s designated agent. (3) In the event of the absence, termination, or suspension of the Town Manager, the Selectboard may approve the vouchers or authorize their approval by a Town employee or other Town officer. (4) The Town Manager may provide for periodic or quarterly allotments of the appropriations to departments, funds, or agencies under such rules as the Town Manager may prescribe and as may be agreeable to the Selectboard. (e) Financial reports, and records. (1) Regular reporting. The Town Manager shall submit, on a schedule prescribed by the Selectboard, but not less often than quarterly, a budget report indicating the relationship between actual and estimated revenues and expenditures to date. (2) All accounting records, in relation to the receipt, holding, or disbursement of money of the Town kept by any official of the Town, shall be paid for by the Town, shall remain the property of the Town, and shall be turned over to the Town Clerk whenever the keeper of the accounting records retires from office. All records pertaining to Town affairs kept by the Town Manager, Town Clerk, or other elective or appointive officer of the Town shall be kept in the Town buildings in their proper places and shall not be removed therefrom without an order of a court or a vote of the Selectboard. (f) Purchasing and procurement. (1) All purchasing and procurement for the Town shall be the responsibility of the Town Manager, who may delegate purchasing authority within the limits allowed by charter. (2) All purchasing and procurement shall be by competitive bid or quote wherever practical or as required. (3) The Town Manager shall maintain purchasing and procurement policies approved by the Selectboard as part of the Town code. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022; 2023, No. M-2, § 2, eff. May 4, 2023.

24 App. V.S.A. ch. 149, § 50 Trust funds

50. Trust funds (a) Trust funds of the Town shall be accounted for separately and kept apart from other Town funds. (b) Trust funds shall be the responsibility of the trustees of public funds in accordance with this charter and State law, unless the trust document specifies otherwise. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 51 Taxation and collection

51. Taxation and collection (a) [Repealed.] (b) Responsibility for taxation and collection. (1) The Town Treasurer shall be responsible for tax collection. (2) [Repealed.] (3) The Collector of Taxes or Delinquent Taxes may charge and collect such fees and interest as may be fixed by the Selectboard and shall deposit them into the General Fund. Fees and interest established shall not exceed those provided by statute. (c) Manner of collection. (1) The timetable of tax collection in terms of due dates and installments shall be fixed by the Town Treasurer, subject to the approval of the Selectboard. (2) [Repealed.] (d) [Repealed.] (e) Tax stabilization. (1) The authority to negotiate and grant tax stabilization agreements shall be granted and revoked by the voters. (2) The Selectboard shall negotiate all stabilization agreements when so authorized by the voters. (3) Under this section, the Selectboard shall maintain uniform guidelines outlining the scope and nature of tax stabilization agreements. (4) The Selectboard shall retain final authority on stabilization agreements. (f) Special assessments. (1) The Selectboard shall have the authority to negotiate or impose by ordinance reasonable special assessments or special use charges. (2) The procedures for each special assessment must be outlined and authorized by an ordinance explaining the reason for the assessment, the amounts and basis for the amounts, the collection of the assessments, and all other matters related to the assessment. (g) [Repealed.] Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

24 App. V.S.A. ch. 149, § 52 Debt and bonded debt for Town improvements

52. Debt and bonded debt for Town improvements (a) Authorization for any long-term debt shall be granted by the voters at an annual or special Town meeting duly authorized for that purpose. As used in this section, “long-term” means a period of indebtedness greater than five years. (b) An article requesting authorization to incur long-term debt can only be placed on the warning by a vote of four Selectboard members. (c) [Repealed.] (d) Articles requesting authorization for long-term debt shall be warned in accordance with State statute. (e) The Town Treasurer shall be authorized, subject to the approval of the Selectboard, to incur short-term debt in anticipation of taxes for funding. Amended 2021, No. M-13 (Adj. Sess.), § 2, eff. May 16, 2022.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/24APPENDIX/149Fetched: 10/21/2026