The fiscal year of the city shall begin on the first day of October, and end on the last day of September. Recognition of revenues and expenditures for each fiscal year shall be governed by generally accepted accounting principles, properly applied to municipal governments.
(Ordinance 4267, sec. 2, adopted 1/16/93; Ordinance 4745, sec. 2, adopted 3/8/99)
(a) 
Preparation and submission of the proposed budget.
The city manager, at least fifty (50) days prior to the beginning of each fiscal year, shall submit to the council a proposed budget. The proposed budget shall be prepared in conformance with standard municipal budgeting procedures. It shall provide a complete financial plan for the fiscal year. It shall include, but is not limited to, the disclosures required by state law.
(1) 
A budget message, explanatory of the budget, which message shall contain an outline of the proposed financial policies of the city for the fiscal year, shall set forth the reasons for salient changes from the previous fiscal year in expenditure and revenue items, and shall explain any major changes in financial policy.
(2) 
A consolidated statement of receipts and expenditures for all funds.
(3) 
Analysis of property valuation.
(4) 
An analysis of tax rate.
(5) 
Tax levies and tax collections by years for the last five (5) years.
(6) 
General fund resources in detail.
The anticipated revenues and proposed expenditures of each utility or other public service enterprise owned or operated by the City of Sherman shall be stated in a separate section of the budget (each bearing the name of the utility) and, as each such utility, an anticipated surplus, if legally available for general purposes, shall be stated as an item of miscellaneous revenue in the budget.
(7) 
Summary of proposed expenditures by function, department, and activity.
(8) 
Summary of proposed expenditures by character and object.
(9) 
Detailed estimates of expenditures shown separately for each activity to support the summaries in Nos. 7 and 8 above. Such estimates of expenditures are to include an itemization of position, showing the number of persons by classification and personnel costs by department.
(10) 
A revenue and expense statement for all types of bonds.
(11) 
A description of all bond issues outstanding, showing rates of interest, date of issue, maturity date, amount authorized, amount issued, and amount outstanding.
(12) 
A schedule of requirements for the principal and interest of each issue of bonds.
(13) 
A special funds section.
(14) 
The appropriation ordinance.
(15) 
The tax levying ordinance.
(16) 
Anticipated revenues compared with other years in budget.
(17) 
Proposed expenditures compared with other years.
(b) 
Reservation of fund balance.
Provisions shall be made in the annual budget and in the appropriation ordinance for a reservation of fund balance in an amount equal to five percent (5%) of the total general fund expenditures and ten percent (10%) of the utility fund expenditures. Such funds shall only be expended in accordance with the provisions of Section 5(b) of this article. Other reservations of fund balances, as seem prudent in the judgment of the city manager and city council, are allowable.
(c) 
Estimated expenditures shall not exceed estimated resources.
Total estimated expenditures of the general fund and debt service fund shall not exceed the total estimated resources of each fund (prospective revenue plus cash on hand).
(Ordinance 3048, sec. 2(17), (18), adopted 4/5/75; Ordinance 4267, sec. 2, adopted 1/16/93; Ordinance 6246 adopted 9/3/19)
(a) 
Proposed budget. The city council shall hold a public hearing on the proposed budget, as required by state law, and shall publish notice of the date, time and place at least five (5) days prior to the hearing.
(b) 
Final budget adoption. The city council shall publish notice of the date, time and place at least five (5) days prior to the public hearing at which the final budget is submitted for adoption.
(c) 
Public record. The proposed budget, the final budget, and all supporting schedules are a public record and shall be filed with the city clerk as the officer of public records.
(Ordinance 4267, sec. 2, adopted 1/16/93; Ordinance 5920, sec. 1, adopted 12/7/15)
(a) 
Proceedings on proposed budget after public hearing amending or supplementing budget. After the conclusion of such public hearing, the council may insert new items or may increase or decrease the items of the budget, except items in proposed expenditures fixed by law. Before inserting any additional item or increasing any item of appropriation, it must cause to be published a notice setting forth the nature of the proposed increases and fixing a place and time, not less than five (5) days after publication, at which the council will hold a hearing thereon.
(b) 
Proceedings on adoption of budget. After such further hearing, the council may insert the additional item or items, and make the increase or increases, to the amount in each case indicated by the published notice, or to a lesser amount but, where it shall increase the total proposed expenditures, it shall also provide for an increase in the total anticipated revenue to at least equal such total proposed expenditures.
(c) 
Vote required for adoption. The budget shall be adopted by the favorable vote of a majority of the members present and voting.
(d) 
Date of final adoption; failure to adopt. The budget shall be finally adopted not later than the twenty-fifth day of the last month of the fiscal year. Should the council take no final action on or prior to such day, the budget as submitted by the city manager shall be deemed to have been finally adopted by the council.
(e) 
Effective date of budget; certification; copies made available. Upon final adoption, the budget shall be in effect for the fiscal year. A copy of the budget, as finally adopted, shall be filed with the officer of public records and may be obtained from the office of public records or from the city's website.
(f) 
Budget establishes 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 therein named.
(Ordinance 3048, sec. 2(19), adopted 4/5/75; Ordinance 4745, sec. 2, adopted 3/8/99; Subsec. (e) amnd. by amendment 6 approved at an election held November 2, 2010 and certified by Resolution 5535 adopted 11/15/10; Ordinance 5920, sec. 2, adopted 12/7/15)
(a) 
Supplemental appropriations. If, during the fiscal year, the city manager determines that there are resources available for appropriation, the council may by resolution make supplemental appropriations.
(b) 
Emergency appropriations. To meet a public emergency affecting life, health, property, or the public peace, the council may make emergency appropriations by a majority vote of the city council members present and voting. Such appropriations may be made by emergency ordinance in accordance with the provisions governing emergency ordinances. To the extent that there are no available unappropriated revenues to meet such appropriations, the council may by such emergency ordinances authorize the issuance of the emergency notes, which may be renewed from time to time, but the emergency notes and renewals of the fiscal year shall be paid not later than the last day of the fiscal year next succeeding that in which the emergency appropriations was [sic] made.
(c) 
Reduction of appropriations. If at any time during the fiscal year it appears probable to the city manager that the revenues available will be insufficient to meet the amount appropriated, he or she shall report to the council without delay, indicating the estimated amount of the deficit, any remedial action taken by him or her and his or her recommendations as to any other steps to be taken. The council shall then take such further action as it deems necessary to prevent or minimize any deficit, and for that purpose it may by ordinance reduce one or more appropriations.
(d) 
Level of budgetary control. Budgetary control shall be exercised at the fund level. The city manager may move part or all of any unencumbered appropriation balance among the various departments, programs, offices or agencies within each fund, provided that total expenditures do not exceed total appropriations for that fund. In the case where additional expenditures are required within a fund, the city council, by resolution, may increase that fund's appropriations.
(e) 
Limitations; effective date. No appropriation for debt service may be reduced or transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. The supplemental and emergency appropriations and the reduction or transfer of appropriations authorized by this section may be made effective immediately upon adoption.
(Ordinance 4267, sec. 2, adopted 1/16/93; Ordinance 4745, sec. 2, adopted 3/8/99; Resolution 4442 adopted 5/6/03)
Every appropriation shall lapse at the close of the fiscal year in which it is made, except those related to encumbrances outstanding at the close of the fiscal year. Encumbrances are defined as commitments related to unperformed contracts or purchase orders for goods or services. Appropriations pertaining to capital projects that have lapsed may be reinstated by resolution.
(Ordinance 3048, sec. 2(20), adopted 4/5/75; Ordinance 4745, sec. 2, adopted 3/8/99)
(a) 
Work programs and allotments.
At such time as the city manager shall specify, each department, office, or agency shall submit work programs for the ensuing fiscal year, showing the requested allotments of its appropriation by periods within the year. The manager shall review and authorize such allotments with or without revision as early as possible in the fiscal year. He or she may revise such allotments during the year if he or she deems it desirable, and shall revise them to accord with any supplemental, emergency, reduced, or transferred appropriations made pursuant to Section 5 of this article.
(b) 
Payments and obligations prohibited.
No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made and unless the city manager or his or her designee first certifies that there is a sufficient unencumbered balance in such allotment or appropriation, and that sufficient funds therefrom are or will be available to cover the claim or meet the obligation when it becomes due and payable. Any authorization of payment or incurring of obligation in violation of the provisions of this charter shall be void and any payment so made illegal; such action shall be cause for removal of any officer who knowingly authorized or made such payment or incurred such obligation, and he or she shall also be liable to the city for any amount so paid. However, except where prohibited by law, nothing in this charter shall be construed to prevent the making or authorizing of payments or the making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds or to prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, provided that such action is made or approved by ordinance.
(c) 
Budget establishes amount to be raised by property tax.
From the effective date of the budget, the amount stated therein as the amount to be raised by property tax shall be made available for the use of all offices, departments, and agencies.
(d) 
Penalty for diversion of interest or sinking fund.
Any officer of the City of Sherman, who shall divert or use the interest or sinking funds for any purpose except that for which the fund is created or is expressly authorized to be invested, shall be liable and responsible to the City of Sherman in the full amount of such diversion and/or use, with lawful interest; and, in case such diversion or use is made or participated in by more than one officer of the City of Sherman, the liability and responsibility therefore [therefor] shall be joint and several.
(Ordinance 3048, sec. 2(21), adopted 4/5/75)
The council shall designate a qualified certified public accountant who, as of the end of the fiscal year, shall make an independent audit of accounts and other evidences of financial transactions of the city government, and shall submit his or her report to the council and to the city manager. The original reports shall be kept among the permanent records of the city, and a copy of the audit report shall be available from the finance department, by calling the city, or from the city's website. Such accountant shall have no personal interest, direct or indirect, in the fiscal affairs of the city government or of any of its officers. The accountant shall not maintain any accounts or records of the city business, but, within specifications approved by the council, shall post-audit the books and documents kept by the department of finance and any separate or subordinate accounts kept by any other office, department, or agency of the city government. Special audits shall be made when deemed necessary by the council.
(Ordinance 3048, sec. 2(22), adopted 4/5/75; Ordinance 4745, sec. 2, adopted 3/8/99; Ordinance 5920, sec. 3, adopted 12/7/15; Ordinance 6085, sec. 1, adopted 12/4/17)
(a) 
Submission to council.
The city manager shall cause to be prepared and shall submit to the council a five (5) year capital program in conjunction with the final date for submission of the annual budget.
(b) 
Contents.
The capital program shall include:
(1) 
A clear general summary of its contents.
(2) 
A list of all capital improvements which are proposed to be undertaken during the five (5) fiscal years next ensuing, with appropriate supporting information as to the necessity for such improvements.
(3) 
Cost estimates, method of financing, and recommended time schedule for each such improvement.
(4) 
The estimated annual cost of operating and maintaining the facilities to be constructed or acquired.
The above information will be revised and extended each year, with regard to capital improvements still pending or in process of construction or acquisition.
(Ordinance 4267, sec. 2, adopted 1/16/93)
(a) 
Notice and hearing.
The council shall publish on the City's official website, the general summary of the capital program and a notice stating:
(1) 
The times and places where copies of the capital program are available for inspection by the public.
(2) 
The time and place, not less than two (2) weeks after such publication, for a public hearing on the capital program.
(b) 
Adoption.
The council, by resolution, shall adopt the capital program, with or without amendments, after the public hearing and on or before the twenty-fifth (25th) day of the last month of the current fiscal year. Copies of the capital program, as adopted, shall be public records and shall be available from the office of public records, by calling the city, or from the city's website.
(Ordinance 4267, sec. 2, adopted 1/16/93; Ordinance 5920, sec. 4, adopted 12/7/15; Ordinance 6246 adopted 9/3/19)
(a) 
General obligation bonds.
The city shall have the power to borrow money on credit of the city, and to issue general obligation bonds for permanent public improvements, or for any other public purpose not prohibited by the Constitution and laws of the State of Texas, and to issue refunding bonds to refund outstanding bonds of the city previously issued. All such bonds shall be issued in conformity with the laws of the State of Texas, and only after an election by the qualified voters of the City of Sherman, and after these bonds have been authorized by a majority of the electorate voting, unless now or hereafter prohibited by law.
(b) 
Revenue bonds.
The city shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities, or any other self-liquidating municipal function not prohibited by the Constitution and Laws of the State of Texas, and to issue revenue bonds to evidence the obligation thereby created. Such bonds shall be a charge upon and payable solely from the properties, or interest therein pledged, or the income therefrom, or both, and shall never be a debt of the city. All such bonds shall be issued in conformity with the Laws of the State of Texas.
(c) 
Other debt instruments.
The city shall have the power to borrow money on the credit of the City for any public purpose not prohibited and as provided by the Constitution and Laws of the State of Texas.
The aggregate amount of bonds and other debt instruments secured by the value of property within the city that is subject to ad valorem taxes at the time of issuance shall at no time exceed ten percent (10%) of the value of the property within said city subject to ad valorem tax.
All bonds of the city having been issued and sold in accordance with the terms of this section, and having been delivered to the purchasers thereof, shall thereafter be incontestable, and all bonds issued to refund and in exchange for outstanding bonds previously issued shall, after said exchange, be incontestable.
No bonds of the City of Sherman shall be sold until after they have been advertised once a week for two (2) consecutive weeks, the first publication to be at least fourteen (14) days prior to the time set for the sale, and shall be sold at public sale for the best bid, upon sealed bids, and upon such other terms and conditions not inconsistent with express provisions of law and of this charter, as the city council may order. The city council shall have the right to reject any or all bids. The provisions of this section shall not apply to the sale of refunding bonds unless the council so elects.
The ordinance authorizing any bonds to be issued shall provide for the creation of a sinking fund sufficient to pay the bonds at maturity, and shall make provision for the payment of the interest thereon as it matures, and any surplus in any sinking fund or any general fund may be invested in bonds of the State of Texas or in securities of the United States, or such funds may be used for the purchase of the bonds of the City of Sherman which are not yet due; provided, however, that the price paid for said bonds or securities shall not exceed the market value at the time of purchase and the accrued interest on said bonds; and provided further that no such bonds shall be purchased which, according to their terms, mature at a date subsequent to the time of maturity of the bonds for the payment of which such sinking fund was created. Neither interest nor sinking fund shall be devoted to any other purpose whatsoever.
(Ordinance 3048, sec. 2(23), adopted 4/5/75; Ordinance 4267, sec. 2, adopted 1/16/93; Ordinance 4745, sec. 2, adopted 3/8/99; Resolution 6300 adopted 11/20/17; Ordinance 6085, sec. 2, adopted 12/4/17)
(a) 
All laws of the State of Texas now or hereafter existing which pertain to the selection of city depositories by home rule cities shall apply to the selection of the city depository, save and except as may be validly provided otherwise by this charter or by resolution or ordinance of the city council.
(b) 
The city depository shall be selected for a period of one year or for such longer period of time as may be determined by the city council by resolution or ordinance.
(c) 
In determining which application or applications offer the most favorable terms and conditions for the handling of city funds, the city council may give such consideration as it deems appropriate to additional services of value to the city which may be offered by any applicant or applicants.
(d) 
The city council shall have the right to reject any and all applications and readvertise for applications. If for any reason no application is submitted to act as city depository, or if all applications are declined, or in any other event in which there is no duly selected and qualified city depository, then, in any such case, the city council shall have the power and the duty to deposit the funds of the city with any one or more banking corporations or associations not doing business within the city but doing business in Texas within a radius of seventy-five (75) miles of the city, in such amounts and for such periods of time as may be determined by the city council to be advisable.
(e) 
An applicant selected as city depository shall comply and continue to comply with the applicable laws of Texas relating to the pledge of securities by a city depository including requirements for securing public funds with eligible securities in accordance with Government Code Chapter 2257.
(f) 
The city depository shall provide continuous, secure, online access to the city's accounts.
(g) 
As used herein, "city depository" means each city depository if there be more than one.
(h) 
All money and all other evidences of funds payable to or belonging to the city, received by any department or other agency of the city or by any officer, employee or agent of the city, for or in connection with affairs of the city, shall be transmitted forthwith to the director of finance, who shall deposit the same promptly in the city depository.
(i) 
All checks, vouchers or warrants for the withdrawal of funds from the city depository shall have affixed thereto the legal signature of both the city manager and officer or officers of the city as may be designated by the city council.
(Ordinance 5920, sec. 5, adopted 12/7/15; Ordinance 6085, sec. 3, adopted 12/4/17)
Editor's note–Former section 13, pertaining to the "appropriation of revenue for retiring bonded indebtedness and making public improvements; general authority to borrow money and issue bonds," was deleted in its entirety by Ordinance 6085, sec. 4, adopted 12/4/17.
Editor's note–Former section 14, pertaining to the "issuance of notes for current expenses," was deleted in its entirety by Ordinance 6085, sec. 5, adopted 12/4/17.
Contracts, expenditures, purchases and procedure: The city council shall approve all contracts, expenditures, and purchases for non-budgeted items, and shall approve such for budgeted items in excess of that amount fixed by state law for competitive bidding, before they can become binding upon the city. The city council annually may designate a not to exceed amount for which the city manager may approve such contracts, expenditures, and purchases for budgeted items, without further council approval being required, provided that such established amount shall not exceed that amount fixed by state law for competitive bidding and any contracts, expenditures, or purchases in excess of the amount so established shall require council approval.
Items requiring competitive bidding by state law shall be let to the lowest responsible bidder after considering responsiveness to the specifications, ability to perform, quality of the products or services, and applicable warranties, except that the city reserves the right at all times to reject any and all bids. If a change order involves a decrease or an increase of the amount fixed by state law, or less, the city council may grant general authority to the city manager to approve the change order. Contracts for professional services need not be, but can be, made by competitive bids as provided by law, and insurance coverage and programs may be adopted by the city council with or without competitive bids by a resolution.
All managers and directors of any office, department, or agency shall first submit to the city manager, for his or her approval, a written request to make any contract, expenditure or purchase, which may not be binding upon the city without such approval at the council's election, and provided that there exists to the credit of such office, department, or agency a sufficient unencumbered appropriation or allotment balance to cover the cost and expense of the request.
(Ordinance 3048, sec. 2(24), adopted 4/5/75; Ordinance 3565, sec. 2, adopted 2/8/82; Ordinance 4745, sec. 2, adopted 3/8/99; Ordinance 6246 adopted 9/3/19)