The fiscal year of the city shall begin on the first day of
each October and end on the last day of September of the succeeding
year. All funds collected by the city during any fiscal year, including
both current and delinquent revenues, shall belong to such fiscal
year and, except for funds derived to pay interest and create a sinking
fund on the bonded indebtedness of the city, may be applied to the
payment of expenses incurred during such fiscal year, except as provided
in this charter. Any revenues uncollected at the end of any fiscal
year, and any unencumbered funds actually on hand, shall become resources
of the next succeeding fiscal year.
Copies of the budget adopted shall be public records and shall
be made available to the public for inspection upon request.
(a)
Content: The budget shall provide a complete financial plan
of all city funds and activities and, except as required by law or
this charter, shall be in such form as the city manager deems desirable
or the council may require. A budget message explaining the budget
both in fiscal terms and in terms of the work programs shall be submitted
with the budget. It shall outline the proposed financial policies
of the city for the ensuing fiscal year; describe the important features
of the budget, indicate any major changes from the current year in
financial policies, expenditures and revenue, with reasons for such
changes. It shall also summarize the city's debt position and include
such other material as the manager deems desirable. The budget shall
begin with a clear general summary of its contents; shall show in
detail all estimated income, indicating the proposed property tax
levy, and all proposed expenditures, including debt service for the
ensuing fiscal year. The proposed budget expenditures shall not exceed
the total of estimated revenues. The budget shall be so arranged as
to show comparative figures for actual and estimated revenues and
expenditures of the current fiscal year and actual income and expenditures
of the preceding fiscal year, compared to the estimate for the budgeted
year. It shall include in separate sections:
(1)
An itemized estimate of the expense of conducting each department,
division and office.
(2)
Reasons for proposed increases or decreases of such items of expenditure
compared with the current fiscal year.
(3)
A separate schedule for each department, indicating tasks to be accomplished
by the department during the year and additional desirable tasks to
be accomplished if possible.
(4)
A statement of the total probable income of the city from taxes for
the period covered by the estimate.
(5)
Tax levies, rates and collections for the preceding five (5) years.
(6)
An itemization of all anticipated revenue from sources other than
the tax levy.
(7)
The amount required for debt service payments on the city's bonds
and other debt obligations.
(8)
The total amount of outstanding city debts, with a schedule of repayment.
(9)
Such other information as may be required by the council.
(10)
Anticipated net surplus or deficit for the ensuing fiscal year of
each utility owned or operated by the city and the proposed method
of its disposition; subsidiary budgets for each such utility giving
detailed income and expenditure information shall be attached as appendices
to the budget.
(11)
A capital program, which may be revised and extended each year to
indicate capital improvements pending or in process of construction
or acquisition, and shall include the following terms:
a.
A summary of proposed programs;
b.
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;
c.
Cost estimates, method of financing and recommended time schedules
for each such improvement; and
d.
The estimated annual cost of operating and maintaining the facilities
to be constructed or acquired.
(b)
Submission: On or before the first day of August of each
year, the manager shall submit to the council a proposed budget and
an accompanying message. The council shall review the proposed budget
and revise as deemed appropriate prior to general circulation for
public hearing.
(c)
Public notice and hearing: The council shall post in the
city hall and publish in the official newspaper a general summary
of their proposed budget and a notice stating:
(d)
Amendment before adoption: After the hearing, the council
may adopt the budget with or without amendment. In amending the budget,
it may add or increase programs or amounts and may delete or decrease
any programs or amounts, except expenditures required by law or for
debt service or for estimated cash deficit, provided that no amendment
to the budget shall increase the authorized expenditures to an amount
greater than the total of estimated income plus funds available from
prior years.
(e)
Adoption: The budget shall be finally adopted not later
than the twenty-seventh day of the last month of the fiscal year.
Adoption of the budget shall constitute a levy of the property tax
therein proposed. Should the council take no final action on or prior
to such day the budget, as submitted, together with its proposed tax
levy, shall be deemed to have been finally adopted by the council.
No budget shall be adopted or appropriations made unless the total
of estimated revenues, income and funds available shall be equal to
or in excess of such budget or appropriations, except as otherwise
provided in this article. Immediately after adoption of the budget
the city manager shall file, or cause to be filed, true copies of
the budget with any and all governmental authorities as may be required
under the laws of the State of Texas.
(a)
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 designee first determines 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. However, this prohibition
shall not be construed to prevent the making or authorizing of payments
or making of contracts for capital improvements to be financed wholly
or partly by the issuance of bonds, time warrants, certificates of
indebtedness, or certificates of obligation, 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.
(b)
Budget amendments: At any time in any fiscal year, council
may, if it determines that emergency conditions have arisen which
could not reasonably had been foreseen in the normal process of planning
the budget, amend or change the budget to provide for any additional
expense to protect the public health, safety or welfare. These amendments
shall be made only upon recommendation of the city manager and shall
be by ordinance, which ordinance shall be an attachment to the original
budget.
(c)
Transfer of funds: Notwithstanding anything contained in
this Section to the contrary, upon written recommendation of the city
manager, the city council may at any time transfer any unencumbered
appropriation or allotment balance or any portion thereof within a
department, office or agency to another.
(d)
Financial reports: The city manager shall submit to the
council at its second regular meeting each quarter the financial condition
of the city by budget item, budget estimate versus actual accruals
for the preceding quarter, and for the fiscal year to date, along
with comparative figures of the preceding year.
In the absence of unappropriated available revenues or other funds to meet emergency appropriations provided for under the preceding Section 8.04, the council may by resolution authorize the borrowing of money to meet such deficit as provided by law.
In any fiscal year, in anticipation of the collection of the
ad valorem property tax for such year, whether levied or to be levied
in such year, the council may by resolution authorize the borrowing
of money, not to exceed in any fiscal year an amount equal to ten
(10) percent of the budget for that fiscal year. Such borrowing shall
be by the issuance of negotiable notes of the city, each of which
shall be designated, "Tax Anticipation Note for the Year 19__" (stating
the tax year). Such notes shall mature and be payable not later than
the end of the fiscal year in which issued.
All monies received by any person, department or agency of the
city for or in connection with affairs of the city shall be deposited
promptly in the city depository or depositories, which shall be designated
by the council in accordance with such regulations and subject to
such requirements as to security for deposits and interest thereon
as may be established by ordinance. All checks, vouchers or warrants
for the withdrawal of money from the city depositories shall be signed
by the mayor and countersigned by the city manager or city secretary.
Provided that the council, under such regulations and limitations
as it may prescribe, may by ordinance authorize the use of machine-imprinted
facsimile signatures of said mayor and city manager on such checks,
vouchers and warrants.
All purchases made and contracts entered into by the city shall
be pursuant to a requisition from the head of the office, department,
or agency whose appropriation will be charged and no contract or order
shall be binding upon the city unless the city manager or his designee
approves the same. All purchases made and contracts entered into by
the city shall be in accordance with the procedural requirements of
the Constitution and laws of the State of Texas, intending hereby
to adopt the competitive bidding procedures as set forth in the Revised
Civil Statutes of Texas, as amended from time to time. Provided however,
that the council or the city manager in such cases as he is authorized
to contract for the city, shall have the right to reject any and all
bids. Contracts for personal or professional services shall not be
let on competitive bids. No individual purchase or contract requiring
payment in excess of three hundred dollars ($300.00) shall be paid
by the city until examined and approved by at least two (2) members
of the city council.
At the close of each fiscal year, and at such other times as
it may be deemed necessary, the council shall cause an independent
audit to be made of all accounts of the city by a certified public
accountant. The certified public accountant so selected 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 summary thereof shall be published immediately in the official
newspaper of the City of Hillsboro and copies of the audit placed
on file in the city secretary's office as public record.
