Page 117 - Pantego FY22 Operating Budget

a. General and Administrative Charge. An administrative fee will be charged to
the Utility Fund for services of general overhead, such as administration,
finance, personnel, data processing and legal counsel. This fee will be
documented through a cost allocation procedure.

b. Franchise payment. A rate consistent with those charged to private utilities
will be charged to the Utility Fund. Presently these rates vary between 2% &
4% of gross sales. This rate may be either raised or lowered to be consistent
with those of the private utilities.

8. REVENUE MONITORING. Revenues received will be regularly compared to
budgeted revenues and variances will be investigated. This process will be
summarized in the appropriate budget report.

VI. EXPENDITURE CONTROL

A. APPROPRIATIONS. The level of budgetary control is at the Department level budget in
the General and Proprietary Funds, and at the fund level in all other funds. When budget
adjustments within a department are necessary, these must be approved by the Town
Manager, provided the transfer amounts between general classifications of expenditures
do not result in a net increase in total appropriations, and further provided that no
amounts shall be transferred from or to any capital outlay line-item accounts. When
budget adjustments between Departments and/or funds are necessary, these must be
approved by the Town Council and through a budget amendment.

All budget appropriations (except for capital projects) lapse at year-end (September 30).
Any encumbered appropriations at year-end may be re-appropriated by the Town
Manager in the ensuing fiscal year. Such re-appropriations shall be subsequently
reporting to the Town Council. Except in emergency situations, and only upon approval
by the Town Council, no department shall exceed appropriations.

B. AMENDMENTS TO THE BUDGET. The Town Council shall approve any budget
modification resulting in net increase in appropriations, or any proposed use of
contingency funds.

C. CENTRAL CONTROL. Significant salary (vacancy) or capital budgetary savings in any
Department will be centrally controlled and may not be spent by the Department without
the prior authorization of the Town Manager and/or the Town Council.

D. PURCHASING. All purchases should be in accordance with the Town's purchasing
policies as defined in the Town’s Purchasing Policy. The Town’s procurement process is
governed by state and federal law, as well as Town’s Purchasing Policy. Generally,
purchases are authorized as follows:
1. All purchases over $500 but less than $1,000 must be approved by the Town
Manager. The purchase orders need to be approved before the purchase is
completed, except for emergency purchases. A department head may make the
determination of an emergency but should make all efforts to contact the Town
Manager before making emergency purchases. Any emergency purchase is
subject to ratification at the following Council meeting.

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