(a) 
Creation of Departments.
The Council may by ordinance establish City departments, offices or agencies in addition to those created by this Charter and may prescribe the functions of all departments, offices and agencies, except that no function assigned by this Charter to a particular department, office or agency may be discontinued or, unless this Charter specifically so provides, assigned to any other.
(b) 
Direction by Manager.
All departments, offices and agencies under the direction and supervision of the City Manager shall be administered by an officer appointed by and subject to the direction and supervision of the City Manager. The appointments of the directors of all departments established by the Council or by this Charter shall be subject to the approval of the Council, but approval by the Council shall not be required for the heads of subdivisions of any department, office or agency, or of any other subordinate employee of the City. The City Manager may serve as head of one or more such departments, offices or agencies or may appoint one person as the head of two or more of them.
The City Manager shall prepare personnel rules and the Council may by ordinance adopt them with or without amendment. These rules shall provide for:
(a) 
The classification of all City positions, based on the duties, authority and responsibility of each position, with adequate provision for reclassification of any position whenever warranted by changed circumstances;
(b) 
A pay plan for all City positions;
(c) 
Methods for determining the merit and fitness of candidates for appointment or promotion;
(d) 
The policies and procedures regulating reduction in force and removal of employees;
(e) 
The hours of work, attendance regulations and provisions for sick and vacation leave;
(f) 
The policies and procedures governing persons holding provisional appointments;
(g) 
Policies regarding in-service training programs;
(h) 
Grievance procedures; and
(i) 
Other practices and procedures necessary to the administration of the City personnel system.
The City Council shall appoint a City Attorney from recommendations of the City Manager, or by any member of the City Council, who shall be duly licensed to practice law in the State of Texas. He shall receive for his services such compensation as may be fixed by Council. He may be removed at any time by majority vote of the City Council.
The City Attorney shall represent the City of Midlothian in all its litigation. He shall be the legal advisor of and attorney and counsel for the City of Midlothian, the Council and all boards, commissions and agencies, and all officers and departments thereof.
The City Attorney shall have authority to appoint one or more assistants, subject to approval of the City Manager, such assistant or assistants to hold office at the will of the City Attorney so long as he remains as such.
Notwithstanding the above provisions, the Council may engage special legal counsel to represent the City of Midlothian in any specific matter or for the performance of any specifically delineated duties otherwise to be performed by the City Attorney.
The Council shall cause an independent audit to be made of the books of account, records and transactions of all the administrative departments of the City at least once yearly. Such audits, during such fiscal year, shall be made by one or more certified public accountants who, for the three (3) years next preceding, have held a certificate issued by the State Board of Accountancy of the State of Texas, or by a state maintaining an equal standard of professional requirements, which entitled the holder of such certificate to a Texas certificate. The auditor or auditors to make the audit shall be selected by the Council, and shall be responsible to the Council. The duties of the auditor or auditors so appointed shall include the certification of all statements required of the City Manager in his annual budget estimate. Such statements shall include a balance sheet, exhibiting the assets and liabilities of the City, supported by departmental schedules, and schedules for each utility publicly owned or operated, summaries of income and expenditures, supported by detailed schedules; and also comparisons, in proper classification, with the last previous year. The report of such auditor or auditors for the fiscal year shall be printed and a copy thereof shall be furnished to each member of the Council and the City Manager and a copy shall be kept available in the office of the City Secretary for inspection by any citizen upon request. A summary of such report of the auditor or auditors may also be published once in the official newspaper. The original report of the auditor or auditors shall be kept among the permanent records of the City.