The fiscal year of the city government shall begin on the first day of October and shall end on the last day of September of each calendar year. Such fiscal year shall also constitute the budget and accounting year. As used in this charter the term “Budget Year” shall mean the fiscal year for which any particular budget is adopted and in which it is administered.
The mayor, at least forty-five days prior to the beginning of each budget year, shall submit to the council a proposed budget and an explanatory budget message in the form and with the content provided by sections 41 and 43. For such purpose, at such date as he shall determine, he, or an officer designated by him shall obtain from the head of each office, department or agency estimates of revenue and expenditures of that office, department or agency, detailed by organization units and character and object of expenditure, and such other supporting data as he may request. In preparing the budget, the mayor shall review the estimates, shall hold hearings thereon and may revise the estimates, as he may deem advisable.
The budget and budget message and all supporting schedules shall be a public record in the office of the city secretary open to public inspection by anyone. The mayor shall cause sufficient copies of the budget and budget messages to be prepared for distribution to interested persons.
At the meeting of the council at which the budget and budget message are submitted, the council shall determine the place and time of the public hearing on the budget, and shall cause to be published in official newspaper a notice of the place and time, not less than seven days after date of publication, at which the council will hold a public hearing.
At the time and place so advertised, or at any time and place to which such public hearing shall from time to time be adjourned, the council shall hold a public hearing on the budget as submitted, at which all interested persons shall be given an opportunity to be heard, for or against the estimates or any item thereof.
The budget shall be adopted by the favorable votes of at least a majority of all elected council members.
The budget shall be finally adopted as submitted by the mayor or amended by the council not later than the 27th 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 mayor shall be deemed to have been finally adopted by the council.
Upon final adoption, the budget shall be in effect for the budget year. A copy of the budget, as finally adopted, shall be filed with the city secretary, the county clerk of Milam County, and the state comptroller of public accounts in Austin. The final budget shall be printed, mimeographed or otherwise reproduced and sufficient copies shall be made available for the use of all offices, departments and agencies, and for the use of interested persons and civic organizations.
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.
From the effective date of budget, the amount stated therein as the amount to be raised by property tax shall constitute a determination of the amount of the levy for the purposes of the city, in the corresponding tax year.
The budget message submitted by the mayor to the council shall be explanatory of the budget, shall contain an outline of the proposed financial policies of the city for the budget year and shall describe in connection therewith the important features of the budget plan. It shall set forth the reasons for salient changes from the previous years in expenditure and revenue items and shall explain any major changes in financial policy.
Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material, in respect to both current operations and capital operations and capital outlays, as the mayor shall believe useful to the council.
The budget shall provide a complete financial plan for the fiscal year. It shall contain the following:
(1) 
A budget message.
(2) 
A consolidated statement of receipts and expenditures for all funds.
(3) 
An analysis of property valuations.
(4) 
An analysis of tax rate.
(5) 
Tax levies and tax collections by years for at least ten years or for a number of years for which records are available.
(6) 
General fund resources in detail.
(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 by each activity to support the summaries No. 7 and 8 above. Such estimates of expenditures are to include an itemization of positions showing the number of persons having each title and rate of pay.
(10) 
A revenue and expense statement for all types of bonds and time warrants.
(11) 
A description of all bond and time warrant issues outstanding, showing rate of interest, date of issue, maturity, date, amount authorized, amount issued, and amount outstanding.
(12) 
A schedule of requirements for the principal and interest on each issue of bonds and time warrants.
(13) 
A special funds section.
(14) 
The appropriation ordinance.
(15) 
The tax levying ordinance. The total estimated expenditures of the general fund and debt service fund shall not exceed the total estimated resources of each fund (prospective income plus cash on hand.) The classification of revenue and expenditure accounts shall conform, as nearly as local conditions will permit to the uniform classification as promulgated by the National Committee on Municipal Accounting or some other nationally accepted classification.
In parallel columns opposite the several items of revenue there shall be placed the actual amount of such item for the last completed fiscal year, the estimated amount for the current fiscal year, and the proposed amount for the ensuing budget year.
The proposed expenditures for the administration, operation, maintenance and capital outlay of each office, department or agency of the city shall be itemized by character and object. In parallel column opposite the various items of expenditures there shall be placed the actual amount of such items of expenditures for the last completed fiscal year, the estimated amount for the current fiscal year and the proposed amount for the ensuing budget year.
Provision shall be made in the annual budget and in the appropriation ordinance for a contingent appropriation in an amount not more than five per centum of the total general fund expenditure, to be used in the case of unforeseen items of expenditures. Such contingent appropriation shall be under the control of the council and distributed by the council. Expenditures from this appropriation shall be made only in case of established emergencies as determined by the council and a detailed account of such expenditures shall be recorded and reported. The proceeds of the contingent appropriation shall be disbursed only by transfer to other departmental appropriations, the spending of which shall be charged to the departments or activities for which the appropriations are made.