The fiscal year of the city shall begin on the first day of
October and end on the last day of September.
The budget shall be a public record and copies shall be made
available to the public 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 a form that the manager deems desirable
or that the council may require. A budget message explaining the budget
both in fiscal terms and in terms of city programs shall be submitted
with the budget. The budget message shall (1) outline the proposed
financial policies of the city for the coming fiscal year, (2) describe
the important features of the budget, (3) indicate any major changes
from the current year in financial policies, expenditures, and revenues,
with reasons for such changes, (4) summarize the city’s debt
position, and (5) include other material as the manager deems necessary
or desirable.
The budget shall begin with a clear general summary of its contents and shall show in detail all estimated income, based on the proposed property tax levy and all proposed expenditures, including debt service, for the coming fiscal year. The proposed budget expenditures shall not exceed the total of estimated income and any fund balances available from prior years. For every budget adopted after the 1997-1998 fiscal year budget, except in the event of an emergency under Section
9.04(b), the adopted budget must include an unencumbered general fund balance that is at least sufficient to cover three months of the city’s budgeted general fund operation and maintenance expenses. This fund balance may be used for emergency appropriations in accordance with Section
9.04(b). The budget shall be arranged to show comparative figures for the current fiscal year’s actual and estimated income and expenditures, the preceding fiscal year’s actual income and expenditures, and the estimate of income and expenditures 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 in specific expenditures, 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 years.
6. All
anticipated revenue from itemized sources other than the tax levy.
7. The
amount required for interest on the city’s debts, for the sinking
fund, and for maturing serial bonds.
8. The
total principal amount of outstanding city debts, with a consolidated
schedule of debt service requirements.
9. Anticipated
net surplus or deficit for the coming fiscal year of each utility
owned or operated by the city and the proposed method of its disposition.
Subsidiary budgets for each utility, with detailed income and expenditure
information shall be attached as appendices to the budget.
10. A capital program, which may be revised and extended each year to
indicate capital improvements pending or in process of construction
or acquisition, that includes the following items:
a. a summary of proposed programs;
b. a list of all capital improvements proposed to be undertaken during
the next five fiscal years, with appropriate supporting information
regarding the necessity for the improvements, including the five-year
plan related to that particular type of capital improvement;
c. cost estimates, methods of financing, and recommended time schedules
for each improvement; and
d. the estimated annual cost of operating and maintaining the facilities
to be constructed or acquired.
11. Other information required by the council.
(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 it as the council deems appropriate prior to general
circulation for public hearing.
(c) Public notice and hearing:
The council shall post in
the city hall and on the city’s official website or other electronic
media that is readily accessible to the public a general summary of
the proposed budget and a notice stating the times and places where
copies of the message and budget are available for inspection by the
public and the time and place for a public hearing on the budget.
The public hearing must be held not fewer than ten or more than thirty
days after publication of the notice.
(d) Amendment before adoption:
After the public 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; however,
no budget amendment shall increase the authorized expenditures to
an amount greater than the total of estimated income, plus funds available
from prior years.
(e) Adoption:
The council shall adopt its annual budget
by ordinance, on one reading, by the fifteenth day of September, or
as soon thereafter as practical. Adoption of the budget shall require
an affirmative vote of at least a majority of all members of the council.
Adoption of the budget shall constitute appropriations of the amounts
specified as expenditures from the funds indicated.
(November 2, 2021, measure J)
(a) Supplemental appropriations:
If, during the fiscal year,
the manager certifies that there are revenues available for appropriation
in excess of those estimated in the budget, the council by ordinance
may make supplemental appropriations for the year up to the amount
of the excess.
(b) Emergency appropriations:
To meet a public emergency
created by a natural disaster or manmade calamity affecting life,
health, property, or the public peace, the council may make emergency
appropriations by emergency ordinance in accordance with the provisions
of this charter. If there are no available unappropriated revenues
or general fund balances to meet such appropriations, the council
may by emergency ordinance authorize the issuance of renewable emergency
notes sufficient to fund the appropriation. The three-month general
fund operating reserve requirement may be suspended by a resolution
approved by Council. The resolution should reference the extenuating/emergency
situation that created the expending of reserves below the three-month
level; and, should also provide a proposed process and timeline for
rebuilding the three-month reserve.
(c) Reduction of appropriations:
If at any time during the
fiscal year it appears probable to the manager that the revenues available
will be insufficient to meet the amount appropriated, he shall report
to the council without delay, indicating the estimated amount of the
deficit, any remedial action taken by them, and their recommendations
for any other steps to be taken. The council shall take 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) Transfer of appropriations:
At any time during the fiscal
year the manager may transfer part or all of any unencumbered appropriation
balance among programs within a department, division, or office. Upon
written request by the manager, the council by ordinance may transfer
part or all of any unencumbered appropriation balance from one department,
office, or agency to another.
(e) Limitations:
No appropriation for debt service may be
reduced or transferred. No appropriation may be reduced below any
amount required by law to be appropriated or by more than the amount
of the unencumbered balance.
(f) Effective date:
Supplemental and emergency appropriations
and reduction or transfer of appropriations authorized by this section
may be made effective immediately upon adoption of the enacting ordinance.
(November 2, 2021, measure E)
Every unexpended or unencumbered appropriation, except an appropriation
for a capital expenditure, shall lapse at the close of the fiscal
year. An appropriation for a capital expenditure shall continue in
force until the purpose for which it was made has been accomplished
or abandoned. The purpose of any appropriation shall be deemed abandoned
if three years pass without any disbursement from or encumbrance of
the appropriation.
(a) Payments and obligations prohibited:
No payment shall
be made or obligation incurred against any allotment or appropriation
unless the manager or their designee certifies there is a sufficient
unencumbered balance in the allotment or appropriation and that sufficient
funds are or will be available to cover the claim or meet the obligation
when it becomes due and payable. Any payment authorized or obligation
incurred in violation of this provision shall be void; any payment
made in violation of this provision shall be illegal. Making unauthorized
payments or obligations shall be cause for removal of any officer
who knowingly authorized or made such a payment or incurred such an
obligation. Furthermore, the person making the payment shall also
be liable to the city for any amount illegally paid. 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 the action is made
or approved by ordinance.
(b) Financial Reports:
The city manager shall submit a report
each quarter that describes the financial condition of the city by
budget item, and shows budgeted and actual income and expenditures
for the preceding month and the fiscal year to date. The financial
records of the city will be maintained on a basis consistent with
generally accepted accounting procedures.
(c) Independent audit:
At the close of each fiscal year,
and at any other times deemed necessary, the council shall call for
an independent audit of all city accounts to be conducted by a certified
public accountant. The certified public accountant selected shall
have no personal interest, direct or indirect, in the city’s
financial affairs, or in any of its officers and, in any event, the
same certified public accountant shall not perform the city’s
audit for more than five consecutive years. The audit shall contain
all information required by any covenants contained in any bond ordinance
of the city. Upon completion of the audit, and presentation of the
auditor’s report to the city council, the summary of the audit
results shall be made available in the city secretary’s office
as a public record, and a copy of the audit shall also be forwarded
to each of the two primary bond rating agencies, as determined by
the city’s financial advisor, at their principal offices.
(November 2, 2021, measure E; November 2, 2021, measure K)
The city council shall annually establish the annual rate of
taxation of the city, and city taxes shall be levied and collected
on all property taxable by the city which is not exempt from taxation
under the State constitution or State law. The council shall adopt
a tax levy ordinance, on one reading, by the 15th day of September
of each year, or as soon after the certification of the appraisal
rolls of the city as practical. Failure of the council to enact a
tax levy ordinance for a particular year shall not invalidate the
collection of taxes for that year and, in such event, the tax levy
ordinance last enacted shall remain in effect until the next tax levy
ordinance is adopted by the council.
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.