The fiscal year of the City shall be set by the City Council. The dates of the fiscal year cannot be changed but once every three (3) years.
The City Manager, at least thirty days prior to the beginning of the fiscal year, shall prepare and submit the budget covering the next fiscal year to the Council. The City Manager’s budget document shall contain:
a. 
An outline of the proposed financial policies for the next fiscal year with explanations of any changes from preceding years in expenditures and any major changes of policy and a complete statement regarding the financial condition of the City.
b. 
An estimate of all revenue from taxes and other sources, including the present tax structure.
c. 
A carefully itemized list of proposed expenses by office for the budget year, as compared to actual expenses of the last ended fiscal year, and the present year-to-date.
d. 
A description of all outstanding bonded indebtedness, as well as any other indebtedness which the City has incurred and which has not been paid.
e. 
A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and recommended provision for financing.
f. 
A list of capital projects which should be undertaken within the next five succeeding years and the proposing [proposed] method of financing same.
a. 
Notice and Hearing.
The Council shall publish in a newspaper of general circulation in the City the general summary of the budget and a notice stating:
(1) 
The times and places where copies of the message and budget are available for inspection by the public and
(2) 
The time and place, not less than one (1) week after such publication, for a public hearing on the budget.
b. 
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, provided that no amendment to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income.
c. 
Adoption.
The Council shall adopt the budget on or before the last day of the fiscal year currently ending. If it fails to adopt the budget by this date, the amounts appropriated for current operation for the current fiscal year shall be deemed adopted for the ensuing fiscal year on a month-to-month basis, with all items in it prorated accordingly, until such time as the Council adopts a budget for the ensuing fiscal year. Adoption of the budget shall constitute appropriations of the amount specified therein as expenditures from the funds indicated and shall constitute a levy of the property tax therein proposed.
a. 
Supplemental Appropriations.
If during the fiscal year the City Manager certifies that there are available for appropriation revenues in excess of those estimated in the budget, the Council by ordinance may make supplemental appropriations for the year up to the amount of such excess.
b. 
Emergency Appropriations.
To meet a public emergency affecting life, health, property or the public peace, the Council may make emergency appropriations. Such appropriations may be made by emergency ordinance. To the extent that there are no available unappropriated revenue to meet such appropriations, the Council may by such emergency ordinance authorize the issuance of emergency notes.
c. 
Reduction of Appropriations.
If at any time during the fiscal year it appears probable to the City Manager that the revenues available will be insufficient to meet the amount appropriated, the City Manager shall report to the Council without delay, indicating the estimated amount of the shortfall, any remedial action taken and make recommendations as to any other steps to be taken. The Council shall then take such 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 City Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, office or agency. Upon written request by the City Manager, the Council may by ordinance transfer part or all of any unencumbered appropriation balance from one department, office or agency to another.
e. 
Limitations; Effective Date.
No appropriation for debt service may be reduced or transferred and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the unencumbered balance thereof. The supplemental and emergency appropriations and reduction or transfer of appropriations authorized by this section may be made effective immediately upon adoption.
Every appropriation, except an appropriation for a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. 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 such appropriation shall be deemed abandoned if three (3) years pass without any disbursement from or encumbrance of the appropriation.
The City Manager shall provide to the City Council sufficient financial reports to keep the Council aware of the City’s financial condition throughout the fiscal year.
At the close of each fiscal year and at other times as necessary, the City Council shall have a certified public accountant conduct an independent audit of all accounts of the City. The certified public accountant shall have no personal interest in the financial affairs of the City or of its officers. A summary of the results of the completed audit shall be on file in the City Clerk’s office as a public record.
The City Council is authorized to select a depository for City funds in accordance with Tex. Loc. Gov’t Code, section 105.001 et seq. as amended and to follow all the terms and provisions of same.
There shall be established a Department of Taxation to assess and collect taxes, the head of which shall be the City Assessor-Collector which office shall be filled by appointment by the City Manager. The Assessor-Collector shall give a surety bond for faithful performance of his duties, including compliance with all controlling provisions of the State Law bearing upon the functions of his office in a sum which shall be fixed by the City Council at not less than $50,000.00.
The City Council shall have the power under the provisions of the State Law to levy, assess and collect an annual tax upon real and personal property within the City not to exceed the maximum provided by the Constitution and general laws of the State of Texas. The City Council shall also have the power to levy occupation taxes on such occupations as consistent with the general laws of the State of Texas.
a. 
All real and personal property located within the City of Kermit on the first day of January, not expressly exempted by law, shall be subject to annual taxation. All city taxes shall be levied, assessed and collected in the same manner as may be provided by the laws of Texas for the levy, assessment and collections of state and county taxes, unless otherwise provided by this Charter or by ordinance. All powers conferred by the general laws of Texas, as they now or hereafter may exist, for the assessment, levy and collection of taxes by county and city assessors are hereby adopted and made applicable to the city and shall be in addition to and cumulative of the powers herein expressly granted, including without limitation those granted to county and city assessors and collectors of taxes, to boards of equalization and all other persons, bodies or agencies concerned with assessment and collection of taxes.
b. 
If, for any cause, the Council shall fail or neglect to pass a tax ordinance for any one year, levying taxes for that year, then and in that event, the tax levying ordinance last passed will and shall be considered in force and effect as the tax levying ordinance and the failure to so pass such ordinance for any one year shall in no way invalidate the collection of taxes for that year.
a. 
The City Council shall have the power and authority by ordinance duly passed and it is hereby expressly authorized to issue bonds of the purpose of refunding bonds of the City previously issued.
b. 
In keeping with the Constitution of Texas and not contrary thereto, the City shall have the power to issue all tax bonds, revenue bonds, funding and refunding bonds, warrants, time warrants, certificates of obligation, notes and other evidence of indebtedness as now authorized or as may be hereafter authorized to be issued by cities and towns under the provisions of Article 2368a and Article 1111 to 1118, as amended and Title 22 of the Revised Civil Statutes of Texas, or by the general laws of the State of Texas.
c. 
In all elections to determine the expenditures of money or the assumption of debt of any nature, qualified voters shall be deemed to be those who are qualified under the general laws of the State of Texas.
d. 
Ordinances authorizing any bonds, warrants, revenues warrants, certificates of obligation, notes or other evidences of indebtedness to be issued shall provide for the creation of a sinking fund sufficient to pay the principal and interest of such bonds when and as the same become due and payable. Such sinking fund, in excess of the amount necessary to pay the principal and interest of the bonds when and as the same become due and payable, may each year be invested, as provided for by Articles 836–837 of the Revised Civil Statutes of Texas.