The fiscal year of the City shall begin on the first day of
each October and end on the last day of September of the succeeding
year. All funds collected by the City during any fiscal year including
both current and delinquent revenues, shall belong to such fiscal
year; and except for funds derived to pay interest and create a sinking
fund on the bonded indebtedness of the City, may be applied to the
payment of expenses incurred during such fiscal year.
Copies of the budget adopted shall be public records and shall
be made available to the public for inspection upon request.
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 such form as the City Manager
deems desirable or the Council may require. A budget message explaining
the budget both in fiscal terms and in terms of the work programs
shall be submitted with the budget. It shall outline the proposed
financial policies of the City for the ensuing fiscal year, describe
the important features of the budget, [and] indicate any major changes
from the current year in financial policies, expenditures, and revenues,
with reasons for such changes. It shall also summarize the City’s
debt position and include such other material as the City Manager
deems desirable or the Council requires. The budget shall begin with
a clear general summary of its contents; and shall show in detail
all estimated revenues, indicating the proposed property tax levy,
and all proposed expenditures, including debt service, for the ensuing
fiscal year. The proposed budget expenditures shall not exceed the
total of estimated funds available from all sources. The budget shall
be so arranged as to show comparative figures for actual and estimated
revenues and expenditures of the current fiscal year and actual revenue
and expenditures of the preceding two (2) fiscal years, compared to
the estimate 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 increase or decrease of such items of expenditure compared
with the current fiscal year.
(3) A narrative
statement for each department indicating projects to be accomplished
by the department during the year and additional desirable projects
to be accomplished if possible. The narrative shall state specifically
all capital expenditure items to be purchased during the year, all
capital expenditure items to be purchased if funds become available,
all major projects on which work will be performed during the year
and any extraordinary items included in the budget.
(4) A statement
of the total probable revenues of the City from taxes for the fiscal
year.
(5) Tax levies,
rates, and collections for the preceding five years.
(6) An itemization
of all anticipated revenue from utilities and all sources other than
the tax levy.
(7) The amount
required for interest on the City’s debts, for sinking fund
and for maturing serial bonds.
(8) The total
amount of outstanding City debts, with a schedule of maturities on
bond issues.
(9) The total
amount established for addition to reserve funds.
(10) A capital
program, which may be revised and extended each year to indicate capital
expenditures pending or in process of construction or acquisition,
shall include the following items:
(a) A
summary of objectives, accomplishments and proposed programs.
(b) A
list of all capital expenditures which are proposed to be undertaken
during the five (5) fiscal years next ensuing, with appropriate supporting
information as to the necessity for such expenditures.
(c) Cost
estimates, method of financing and recommended time schedules for
each such expenditure.
(d) The
estimated cost of operating and maintaining the facilities to be constructed
or acquired.
(11) Such
other information as may be required by the Council.
Submission. The City Manager shall submit
a draft budget on or before the thirtieth (30) day of June of each
year. Council shall review the draft budget and revise it as deemed
appropriate prior to the proposed budget. The City Manager shall submit
to the Council a proposed budget and accompanying message by the first
council meeting in August. The Council shall review the proposed budget
and revise it as deemed appropriate prior to general circulation for
public hearing.
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Public Notice and Hearing. The Council
shall post in the City Hall and publish in the official newspaper
a general summary of the proposed budget and a notice stating:
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(1)
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The time and places where copies of the message and budget are
available for inspection by the public.
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(2)
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The time and place, not less than fifteen (15) days after such
publication, for a public hearing on the budget.
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(3)
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Such other public hearings as are necessary or required by law.
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Amendment Before Adoption. After the
hearing the Council may adopt the budget with or without amendment.
In amending the budget the Council 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. No amendment to
the budget shall increase the authorized expenditures to an amount
greater than the total of estimated funds available from all sources.
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Adoption. The budget shall be finally
adopted by ordinance not later than the first day of October. Should
the council take no final action on or prior to that day, the budget
as submitted shall be deemed to have been finally adopted by the Council.
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(Prop. 6, approved at election of 5/9/09; Resolution 2015-007 adopted 2/17/15, prop. 10, approved at election of 5/9/15; Ordinance 1244 adopted 2/20/18, prop. H, approved at election of 5/5/18)
Payments and Obligations Prohibited. No
payment shall be made or obligation incurred except in accordance
with appropriation duly passed, and unless the Finance Officer first
certifies there is a sufficient unencumbered balance and sufficient
funds are, or will be available to meet the obligation when it comes
due and payable. If funds are not currently available to make an appropriate
payment, but will become available within the fiscal year, the Finance
Officer may request the Council for authority to borrow money to make
payment provided that the money will be repaid by the end of the fiscal
year. Any authorization of payment or incurring of obligation in violation
of the provisions of this Charter shall be void and any payment made
illegal. Such action shall be the cause for removal of any officer
who, not acting in good faith, knowingly authorized or made such payment
or incurred such obligations.
However, this prohibition shall not be interpreted to prevent the making or authorizing of payments or making of contracts for capital expenditures. These payments may be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness, certificates of obligation or other similar evidence of indebtedness. Nor may they prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, provided that action is made or approved by ordinance. Section
6.06 Borrowing to Meet Emergency Appropriations and Section
6.07 Borrowing in Anticipation of Property Taxes discuss additional borrowing provisions. Borrowing Provisions for capital expenditures are detailed in ARTICLE X. BONDS, Section
10.01.
Financial Reports. In the event there
is no Department of Finance, the City Manager, with approval of the
Council, shall designate a person as Finance Officer for the City.
The Finance Officer shall be responsible to the City Manager and the
Council for preparing all reports.
Some Additional Duties of the Finance Officer. The Finance Officer shall provide Council with monthly financial
reports showing the financial condition of the City. The monthly financial
reports may be provided electronically, posted on city website, and
are due prior to the second regularly scheduled meeting each month.
In addition, the Finance Officer shall also present Council with quarterly
financial reports for quarters ending December 31 (Q1), March 31 (Q2),
June 30 (Q3), and September 30 (Q4). The quarterly financial reports
shall be presented to Council during the second regularly scheduled
City Council meeting of the month after the end of each quarter (Quarter
1 - January; Q2 - April; Q3 - July; Q4 - Year end November).
These financial reports shall include the following: Balance
Sheet, Revenue and Expenditure Statement in summary form for the preceding
month, Year-to-Date Expenditure Statement for each department, detailed
statement of each category of Revenue and Expense by department, and
an analysis of all funds invested including rates, and any other report
requested by Council. The financial reports and records of the City
shall be maintained on a modified accrual basis to support this type
of financial management.
(Resolution 2015-007 adopted 2/17/15, prop. 11, approved at election of 5/9/15; Ordinance 1244 adopted 2/20/18, prop. I, approved at election of 5/5/18)
In accordance with State Law, the City Council may make changes in the budget for municipal purposes. Emergency expenditures may be necessary to protect public health, safety or welfare. These emergency expenditures may be authorized to meet conditions which were not anticipated in the original budget. They shall be authorized by a majority of the Council Members present as provided in Section
3.17 Emergency Ordinances. Supplements and amendments shall be approved by ordinance as provided in Section
3.16 Ordinances and Section
3.17 Emergency Ordinances and shall be filed with the original budget. Borrowing to meet deficit spending is provided in Section
6.06 Borrowing to Meet Emergency Appropriations.
(Resolution 2015-007 adopted 2/17/15, prop. 12, approved at election of 5/9/15; Ordinance 1244 adopted 2/20/18, prop. J, approved at election of 5/5/18)
In the absence of available funds to meet emergency appropriations provided for under the preceding Section
6.05 Amendment and Supplemental Budgets, the Council may authorize the borrowing of money to meet the deficit as provided by Federal or State Law or as provided in Section
3.17 Emergency Ordinances.
(Resolution 2015-007 adopted 2/17/15, prop. 13, approved at election of 5/9/15)
In any fiscal year in anticipation of the collection of the
ad valorem property tax for such year, whether levied or to be levied
in such year, the Council may authorize the borrowing of money not
to exceed in any fiscal year an amount equal to seventy-five percent
(75%) of the ad valorem property tax for that fiscal year. Such borrowing
shall be by the issuance of negotiable notes of the City, each of
which shall be designated, “Tax Anticipation Note for Year 19_____
(stating the tax year). Such notes shall mature and be payable not
later than the end of the fiscal year in which issued.
Every four (4) years, beginning with the first fiscal year after
adoption of this Charter, the Council shall in its first meeting in
the month of August select a depository or depositories for City funds
on the basis of bids received from such institutions in accordance
with the provisions of Local Government Code, Chapter 105, et seq.
as now or hereafter amended. Provided however, that the Council may
by resolution invest reserve funds in any state or federally chartered
bank or savings institution. All monies received by any person, department
or agency of the City for or in connection with affairs of the City
shall be promptly deposited by the Finance Officer in the City depository
or depositories. All checks, vouchers, or warrants for the withdrawal
of money form [from] the City depositories shall be signed by the
Mayor or designated assistant. The Council, under such regulation
and limitations as it may prescribe, may by ordinance authorize the
use of machine imprinted facsimile signatures of such persons on such
checks, vouchers and warrants.
(Prop. 7, approved at election of 5/9/09; Ordinance 1117 adopted 2/28/13, prop. 13, approved at election of 5/11/13)
All 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, and shall be documented in a purchasing
policy that addresses protocols and procedures for all purchases and
contracts for the City. Such policy shall be reviewed and approved
by resolution of the City Council.
(Resolution 2015-007 adopted 2/17/15, prop. 14, approved at election of 5/9/15)
Editor’s note–Section
6.10 pertaining to the audit board and as amended by Ordinance 1117 adopted 2/28/13, prop. 14, approved at election of 5/11/13 was repealed in its entirety by Ordinance 1244 adopted 2/20/18, prop. K, approved at election of 5/5/18.
The City shall follow the State of Texas Chapter 103, Local
Government Code, for Audit of Municipal Finances. At the close of
each fiscal year, the Council shall cause an independent audit to
be made of all accounts of the City by a certified public accountant.
This audit shall be made as soon as practicable after the close of
the fiscal year, but not later than 180 days past the end of the fiscal
year. The certified public accountant shall have no personal interest,
directly or indirectly, in the financial affairs of the City or of
its officers. Upon completion, the audit shall be published on the
official website of the City of Brady and copies of the audit placed
on file in the City Secretary’s office as public record.
(Prop. 8, approved at election of 5/9/09; Resolution 2015-007 adopted 2/17/15, prop. 15, approved at election of 5/9/15)
Within thirty (30) days after the close of each fiscal year,
the City Manager shall report to the Council all nondesignated funds.
The Council shall designate such funds as appropriated funds for a
specific purpose including appropriate reserves. The budget may be
amended to reflect this designation of funds.