§ 21.12-1204. Financial Plan Including Proposed Budgets.

 A. The Financial Plan as submitted by the President to the Board shall provide a complete plan of all Township funds and activities for the ensuing fiscal year and, except as required by this Charter, the proposed budgets contained therein shall be in such form as the President deems desirable except as otherwise required by the Board. The Financial Plan shall contain, among other things, the following:

   1. Comparative figures for actual and estimated income and expenditures for the current fiscal year and actual income and actual expenditures for the preceding fiscal year.

   2. Proposed Operating Budget for the next fiscal year, in such form as the Board shall prescribe.

   3. Forecast of revenue and expenditures for a period of at least two additional years, individually stated, to be advisory only for the purpose of long range planning. The information to be provided shall be stated in general categories only.

   4. Capital program for the remainder of the term of the improvements then in progress or proposed to be undertaken, but in no case less than the next five fiscal years, the first year of which shall be in detail and designated as the proposed Capital Budget, in such form as the Board shall prescribe.

   5. Statement of debt with an amortization schedule through a time period covering the latest final maturity of any existing issue and showing in addition to existing debt the amortization schedule for all proposed debt for each project included in the capital program.

 B. In the operating budget as proposed by the President, the total of proposed expenditures shall not exceed the total of estimated revenue and available surplus, and in the capital budget as proposed by the President, the proposed expenditures shall not exceed the anticipated available means of financing.

   Commentary: : The Financial Plan includes the proposed operating and capital budgets and also the various schedules and figures and projections which are necessary for the Board and its committees to make a proper evaluation of these proposed budgets. In general, the items required are the ones which are now customarily supplied.

   The changes from current procedure which this section contemplates include the submission of a proposed forecast of revenue and expenditures for at least two additional years in general terms (§  21.12-1204A3) and the adoption of a capital budget at the same time as the adoption of the operating budget, rather than at a separate time as is the current practice. With regard to the two year forecast projection of operating budget, it is not expected that any attempt will be made to forecast with any definitive accuracy the likely inflationary or salary increases; it is rather the purpose of this projection to indicate areas in which a shift of priorities or the deletion or addition of programs is suggested in terms of current dollars. Thus, as the GSC views it, it would be satisfactory to set forth such items as salaries and material costs in current dollars for the purpose of projection.

   The GSC contemplates that the requirements that the Board may impose on the President regarding the form of the proposed operating budget and capital program to be submitted by him may be different and less detailed than the form in which the Board will ultimately adopt the operating and capital budgets. Thus, the Board might not require the President to set forth the salary levels for employees while it would undoubtedly set forth such salary levels in its ultimately adopted operating budget.

   This section cited in 346 Pa. Code §  21.12-1203 commentary (relating to budget message).