The fiscal year of the City shall be determined in accordance with State law by ordinance and such shall also constitute the budget and accounting year.
City department heads and officers shall submit budget requests for the next fiscal year to the City Manager for review and consolidation. The City Manager shall submit to the Council a proposed annual budget, which shall provide a complete financial plan for the fiscal year and shall conform to the requirements of state law. The proposed budget shall be filed with the City Secretary.
(Amnd. by Ordinance 2025-02-03-03 at an election held on May 3, 2025, prop. C)
The Council shall hold at least one public hearing on the proposed budget, in accordance with the state law, prior to the time the Council adopts the budget and sets the tax levy.
Before taxes are levied, but after public hearing, the Council shall adopt the annual budget. The Council may amend the proposed budget, but shall not delete or decrease appropriations required by debt service, or by law, and shall not authorize any expenditures in excess of the total estimated income plus such funds as are available from earlier years. Copies of the adopted budget and any amendments thereto shall be filed with such municipal, county and state officials as required by State law.
If the Council fails to adopt the annual budget before the start of the fiscal year to which it applies, appropriations of the last budget adopted shall be considered as adopted for the current fiscal year on a month-to-month, prorata basis until the next budget is adopted.
During the fiscal year the Council shall have the power to transfer, by resolution, funds within the budget in accordance with state law, except that interest earned on unspent budgeted funds, shall be applied solely to debt reduction.
The Council shall have the power to borrow money on the credit of the City and to issue bonds, certificates of obligation, warrants, notes or other evidences of debt to a maximum of ten percent of the total ad valorem tax revenues received the preceding fiscal year in order to cover any single emergency or unanticipated appropriation. Otherwise, additional debt must be secured in accordance with Section 8.09.
The City shall have the power to borrow money on the credit of the City and to issue bonds, certificates of obligation, warrants, notes or other evidences of indebtedness for permanent public improvements or for any other public purposes not prohibited by the Constitution, the laws of the State of Texas and this Charter. All such bonds shall be issued in conformity with the laws of the State. The total general obligation debt of the City shall never exceed ten percent (10%) of the net taxable value of property on the tax rolls of the City, and any issue of bonds in excess of said sum shall be void to the extent of such excess.
Notwithstanding any other provision of this Charter to the contrary, ordinances authorizing the issuance of bonds, certificates of obligation, warrants, notes or other evidences of indebtedness, or ordinances authorizing the levy of taxes or the pledge of revenues to secure payment of indebtedness, shall require at least one reading, shall become effective immediately, and shall not be subject to referendum. Provided, however, that nothing in this Section excuses compliance with Section 8.09(b) of this Charter.
(Amnd. by Ordinance 2018-01-16-03 at an election held on May 5, 2018, prop. E)
All Bonds, warrants, and revenue bonds shall not be issued unless authorized by a majority of the qualified voters at a City election held for that purpose. The ordinance calling the election and the manner of conducting such shall conform in all respects to the laws of the State of Texas and the provisions of this Charter. Certificates of obligation shall not be issued except on the affirmative vote of two-thirds of all Council members. (Refunding bonds are exempt from the provision of Sec. 8.09(b.))
(Amnd. by Ordinance 2020-07-20-01, at an election held on November 3, 2020, prop. G)
Funds appropriated or budgeted shall lapse at the close of the fiscal year if not spent or encumbered and shall become resources to be applied to the budget for the next succeeding fiscal year.
No obligation shall be incurred unless the City Manager certifies that there are sufficient unencumbered funds in the appropriations. No payment shall be made unless the Finance Director certifies that funds have been properly obligated and that there is sufficient cash available to cover the payment.
(Amnd. by Ordinance 2025-02-03-03 at an election held on May 3, 2025, prop. C)
At the close of each fiscal year, and at such other times as may be deemed necessary, the Council shall have a certified public accountant licensed in the State of Texas conduct an independent audit of all accounts and prepare an annual financial statement based thereon. The certified public accountant retained shall have no personal interest, directly or indirectly, in the financial affairs of the City or with any of its officers. The audited financial statements shall be filed with the Finance Director.
All purchases made and contracts executed by the City shall be made in accordance with the requirements of the Constitution and the laws of the State of Texas.
Provision shall be made in the annual budget and in the appropriations ordinance for a contingency fund or appropriation in the amount not to exceed three percent (3%) of the revenue budget, to be used for unforeseen items of expenditure.
Such fund shall be under the control of the City Manager, and any expenditures therefrom can be made only upon the approval of the Council and only in cases of established emergencies. A detailed account of each expenditure shall be recorded.
Annually the Finance Director will review the City's compliance with its investment policy pursuant to provisions of State law.
(Amnd. by Ordinance 2025-02-03-03 at an election held on May 3, 2025, prop. C)