THEODORE R. MCKELDIN, GOVERNOR 165

Board of Commissioners shall increase the total proposed
expenditures it shall also increase the total anticipated
revenue to at least equal such total proposed expenditures.
The budget shall be prepared and adopted in the form of
an ordinance. A favorable vote of at least a majority of
the total membership of the Board of Commissioners shall
be necessary for adoption of the budget.

77IB. Appropriations. From the effective date of the
budget, the several amounts stated therein as proposed
expenditures shall be and become appropriated to the
several objects and purposes named therein.

771C. Transfer of Funds. Any transfer of funds be-
tween major appropriations for different purposes by the
mayor must be approved by the Board of Commissioners
before becoming effective.

771D. Over-expenditure Forbidden. No office, depart-
ment, or agency shall during any budget year expend or
contract to expend any money or incur any liability or
enter into any contract which by its terms involves the
expenditures of money, for any purpose, in excess of the
amount appropriated for that general classification of ex-
penditure pursuant to this sub-title. Any contract, verbal
or written, made in violation of this act shall be null and
void. Any officer or employee of the town who shall violate
this section shall be guilty of a misdemeanor and upon
conviction thereof shall cease to hold his office or employ-
ment. Nothing in this section, however, shall prevent the
making of contracts or the spending of money for capital
improvements to be financed in whole or in part by the
issuance of bonds, or the making of contracts of lease or
for services for a period exceeding the budget year in which
such contract is made, when such contract is permitted by
law.

772. Appropriations Lapse after One Year. All appro-
priations shall lapse at the end of the budget year to the
extent that they shall not have been expended or lawfully
encumbered. Any unexpended and unencumbered funds
shall be included in the next year's budget as surplus.

773. Contingent Fund. A contingent fund in an amount
of not more than five per cent (5%) of the total proposed
expenditures shall be established under the control of the
mayor and the Board of Commissioners. Money from this
fund may be allocated by the mayor with the approval of