The fiscal year of the City of Glenn Heights shall begin on October 1st of each calendar year and will end on September 30th of the following calendar year. The fiscal year will also be established as the accounting and budget year. All funds collected by the City during any fiscal year including both current and delinquent revenue shall belong to such fiscal year and, except funds derived to pay interest and create a sinking fund on the bonded indebtedness of the City, may be applied to the payment of the expenses incurred during such fiscal year. Any revenues uncollected at the end of any fiscal year, and any unencumbered funds actually on hand, shall become resources of the next fiscal year.
The City Manager, prior to August 1st of each year, shall prepare and submit the budget, covering the next fiscal year, to the Council, which shall contain the following information. In preparing the budget, each employee, officer, board and department shall assist the City Manager by furnishing all necessary information.
(a) 
The City Manager’s budget message shall outline the proposed financial policies for the next year with explanations of any change from previous years in expenditures and any major changes of policy and complete statement regarding the financial conditions of the City.
(b) 
An estimate of all revenue from taxes and other sources, including the present tax structure rates and property evaluation for the ensuing year.
(c) 
A carefully itemized list of proposed expenses by office department, agency, employee and project for the budget year as compared to actual expenses of the last fiscal year, and the present year-to-date.
(d) 
A description of all outstanding bond indebtedness, showing amount, purchaser, date of issue, rate of interest, and maturity date, as well as any other indebtedness which the City had incurred and which has not been paid.
(e) 
A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provisions for financing.
The budget and all supporting schedules shall [be] filed with the City Secretary when submitted to the Council and shall be open to public inspection by anyone interested.
At the Council meeting at which time the budget is submitted, the Council shall name the date and place of a public hearing and shall cause to be published in the official newspaper of the City the time and place, which will be not less than seven (7) days nor more than fifteen (15) days after the date of the notice. At this hearing, interested citizens may express their opinions concerning items of expenditure, giving their reasons for wishing to increase or decrease any items of expense.
After public hearing the Council shall analyze the budget, making any additions or deletions which they feel appropriate, and shall, prior to the beginning of the next fiscal year, adopt the budget by a favorable majority vote of all members of the Council.
On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the Council shall constitute the official appropriation as proposed expenditures for the current year and shall constitute the basis of the official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriations may be transferred to any line item budgeted for the same general purpose.
The City Manager may recommend for action by the Council, an unallocated reserve fund to be used for unexpected items of expense which were not contained as original items of expenditures.
No obligation shall be incurred against the City except for appropriations duly made in the budget. Furthermore, no payment shall be made nor obligations incurred against the City until the City Manager or his/her designee first verifies that there is or will be sufficient funds or monies available to cover the claim or meet the obligation when it becomes due and payable. There shall be no transfer of funds or monies from one fund to another fund to cover a claim or meet an obligation when it becomes due and payable without prior Council approval.
(Amended by Ordinance O-09-12 at an election held on May 12, 2012, prop. 5)
The City Manager shall submit to the Council each month a report of the financial condition of the City by budget item, budget estimate compared to expenditures for the preceding month and for the fiscal year-to-date. The financial records of the City will be maintained on an modified accrual basis to support this type of financial management. The City Manager shall make available to the City Council monthly a cash disbursements journal of the City of all funds and accounts.
When conditions arise which could not reasonably have been foreseen in the normal process of planning the budget, the Council may amend or change the budget for any municipal or public purpose; however, the total expenditures from all City funds for the fiscal year may not be increased except by a vote of five (5) members of the City Council following a posted public hearing at which members of the public may provide input on such proposed amendment. In the event that a proposed budget amendment is in order to meet a grave public necessity, the City Council may, by a vote of five (5) of its members, waive the requirement for the public hearing. Amendments shall be by ordinance, and shall become an attachment to the original budget.
(Amended by Ordinance O-09-12 at an election held on May 12, 2012, prop. 6)
A copy of the budget, as finally adopted, shall be filed with the City Secretary. The final budget shall be printed, or otherwise reproduced and sufficient copies shall be made available for the use of all offices agencies and for the use of interested persons and civic organizations.
Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements shall not nullify the tax levy or the tax rate.
At the close of each fiscal year, and at such other times as it may be deemed necessary, the Council shall direct that an independent audit be made of all accounts of the City by a Certified Public Accountant. The Certified Public Accountant shall have no personal interest, directly or indirectly, in the financial affairs of the City or any of its officers. Upon completion of the audit, the results thereof shall be placed on file in the City Secretary’s office for public record.
All sales of City property, purchases made, and contracts executed by the City shall be made in accordance with the requirements of the Constitution and laws of the State of Texas, including all laws related to the purchasing and contracting authority of municipalities, bids for public works contracts, high technology procurements, and professional services procurements.
(Amended at election of May 4, 2002)