Bill Text - HB1430 (2006)

Allowing cities, towns, and counties to adopt an October 1 fiscal year.


Revision: Jan. 21, 2010, midnight

HB 1430 – AS INTRODUCED

2006 SESSION

06-2840

06/04

HOUSE BILL 1430

AN ACT allowing cities, towns, and counties to adopt an October 1 fiscal year.

SPONSORS: Rep. D. L. Christensen, Hills 19; Rep. Brundige, Hills 19; Rep. Graham, Hills 18; Sen. Roberge, Dist 9

COMMITTEE: Municipal and County Government

ANALYSIS

This bill allows cities, towns, and counties to adopt a fiscal year that starts on October 1.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2840

06/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT allowing cities, towns, and counties to adopt an October 1 fiscal year.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Optional Fiscal Year; October 1 Added. Amend RSA 31:94-a to read as follows:

31:94-a Optional Fiscal Year.

I. Cities and towns and counties, may adopt a single 18 month accounting period running from January 1 of the calendar year following adoption and ending June 30 of the next following year. Thereafter, accounting periods for such towns, cities, and counties shall run from July 1 to June 30 of the following year.

II. Cities, towns, and counties may adopt a single 9-month accounting period running from January 1 of the calendar year following adoption and ending on September 30 of the same year. Thereafter, accounting periods for such towns, cities, and counties shall run from October 1 to September 30 of the following year.

2 Reporting Date for October 1 Fiscal Year Added. Amend RSA 21-J:34, V to read as follows:

V. A financial report for each city, town, school district, village district, or county shall be filed showing the summary of receipts and expenditures, according to uniform classifications, during the preceding fiscal year, and a balance sheet showing assets and liabilities at the close of the year. This report shall be submitted on or before April 1 if the municipality keeps its accounts on a calendar year basis, [or] on or before September 1 if the municipality keeps its accounts on an optional fiscal year basis pursuant to RSA 31:94-a, I, or on or before January 1 if the municipality keeps its accounts on an optional fiscal year basis pursuant to RSA 31:94-a, II. School districts shall submit financial reports on or before September 1 of each year.

3 County Convention Appropriations; October 1 Fiscal Year Added. Amend RSA 24:14, II to read as follows:

II. The county convention shall adopt its annual budget within 90 days after the beginning of the county's fiscal year if the county operates on a calendar year basis. If the county operates on an optional fiscal year basis pursuant to RSA 31:94-a, I, then the county convention shall adopt its annual budget not later than September 1. If the county operates on an optional fiscal year basis pursuant to RSA 31:94-a, II, then the county convention shall adopt its annual budget not later than December 1. If the county convention does not adopt its annual budget by the time specified, the budget, as recommended by the commissioners, shall take effect.

4 Statement of Financial Condition; October 1 Fiscal Year Added. Amend RSA 24:21 to read as follows:

24:21 Statement of Financial Condition. The county commissioners shall deliver or mail to each member of the county convention, the chairperson of the board of selectmen in each town and the mayor of each city within the county and to the secretary of state prior to the fifteenth day of February annually, a statement of the condition of the county treasury depicting expenditures and income on the preceding December 31, or if the county is on an optional fiscal year basis pursuant to RSA 31:94-a, I, prior to the fifteenth day of August a statement of the condition of the county treasury depicting expenditures and income on the preceding June 30. If the county is on an optional fiscal year basis pursuant to RSA 31:94-a, II, the statement of the condition of the county treasury shall be delivered or mailed prior to the fifteenth day of November depicting expenditures and income on the preceding September 30.

5 Budget Estimates; Budget Estimate Date for October 1 Fiscal Year. Amend RSA 24:21-a, I and II to read as follows:

I. Except as provided in [paragraph] paragraphs II and II-a, the county commissioners shall deliver or mail to each member of the county convention who will be in office on the date that appropriations are voted and to the chairperson of the board of selectmen in each town and the mayor of each city within the county and to the secretary of state prior to December 1 annually their itemized recommendations of the sums necessary to be raised for the county in the year next ensuing, stating therein in detail the objects for which the money is required, together with a statement of actual expenditures and income for at least 9 months of the preceding calendar year. All moneys to be appropriated by the county must be stipulated in the budget on a “gross” basis, showing revenues from all sources, including grants, gifts, bequests and bond issues, as offsetting revenues to appropriations affected.

II. If the county is on an optional fiscal year basis pursuant to RSA 31:94-a, I, the recommendations together with a statement of actual expenditures and income for at least 9 months of the preceding fiscal year shall be mailed or delivered prior to June 1 annually and the delivery or mailing to the members of the county convention shall be made to those members in office on the date of the delivery or mailing.

II-a. If the county is on an optional fiscal year basis pursuant to RSA 31:94-a, II the recommendations together with a statement of actual expenditures and income for at least 9 months of the preceding fiscal year shall be mailed or delivered prior to September 1 annually and the delivery or mailing to the members of the county convention shall be made to those members in office on the date of the delivery or mailing.

6 Authorization to use Accounting Period; October 1 Fiscal Year. Amend RSA 31:94-c to read as follows:

31:94-c Authorization to Use Accounting Period.

I. Any town, city, or county which adopts the provisions of RSA 31:94-a, I may budget [their] its receipts and expenditures, raise and appropriate revenues, and assess taxes on the basis of a single 18 month accounting period running from January 1 of the calendar year following adoption and ending June 30 of the next following year. Thereafter, [they] it shall operate [their] its fiscal affairs on the basis of a 12 month accounting period running from July 1 to June 30 of the next following year.

II. Any town, city, or county which adopts the provisions of RSA 31:94-a, II may budget its receipts and expenditures, raise and appropriate revenues, and assess taxes on the basis of a single 9-month accounting period running from January 1 of the calendar year following adoption and ending September 30 of the same year. Thereafter, it shall operate its fiscal affairs on the basis of a 12-month accounting period running from October 1 to September 30 of the next following year.

7 Proration of Property Tax Exemptions During Transition Period to October 1 Fiscal Year. Amend RSA 31:94-cc to read as follows:

31:94-cc Proration of Property Tax Exemptions During Transition Period.

I. Any city or town which adopts the provisions of RSA 31:94-a, I and assesses taxes on the basis of the 18-month accounting period as permitted under RSA 31:94-c, I shall prorate any exemption or tax credit available under RSA 72:28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 39-b, 62, 66, and 70 to reflect that 18-month period.

II. Any city or town which adopts the provisions of RSA 31:94-a, II and assesses taxes on the basis of the 9-month accounting period as permitted under RSA 31:94-c, II shall prorate any exemption or tax credit available under RSA 72:28, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 39-b, 62, 66, and 70 to reflect that 9-month period.

8 Transition Period; October 1 Fiscal Year Added. Amend RSA 31:94-e to read as follows:

31:94-e Transition Period. Where the provisions of RSA 31:94-a, I are adopted by a town, city or county, the selectmen, city treasurer or county treasurer, respectively, may borrow money in anticipation of taxes, for the transition period in the manner provided by RSA 33:7, I for cities and towns and RSA 29:8 for counties.

9 Debt During Transition Period; Limited to Change to July 1 Fiscal Year. Amend RSA 31:94-d to read as follows:

31:94-d Debt During Transition Period.

I. Towns, cities, and counties which have adopted the provisions of RSA 31:94-a, I may incur debt under the provisions of RSA 33 in an amount not to exceed 1/3 of all taxes assessed on April 1 of the year following adoption of RSA 31:94-a, I, excluding payments upon outstanding debts, said debt to be discharged in not more than 20 years. For the purposes of this section, taxes assessed shall include all taxes reimbursed to the town, city or county in accordance with the provisions of RSA 31-A. Debt incurred pursuant to this section shall not be included in the debt limit of the town, city or county, and the funds borrowed pursuant to this section shall be used only to defray additional costs that result from the adoption of an 18 month transitional accounting period.

10 New Paragraph; Optional Provisions; October 1 Fiscal Year; August Budgetary Town Meeting. Amend RSA 39:2-a by inserting after paragraph II the following new paragraph:

III. A town which has adopted an October 1 fiscal year under RSA 31:94-a, II shall hold a session of its town meeting on a date set by the selectmen in August for the transaction of budgetary matters.

11 Effective Date. This act shall take effect 60 days after its passage.