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.
The City Manager, at least forty-five (45) days prior to the beginning of each fiscal year, shall prepare or cause to be prepared a proposed plan and an explanatory message, in the form and with the contents required in this article and outlined by the laws of Texas. For such purpose at such dates 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 expenditures, and such other supporting data as he may request. In preparing the fiscal plan, the City Manager shall review the estimates, shall hold hearings thereon, and may revise the estimates as he may deem advisable.
The fiscal plan and plan message and all supporting schedules shall be filed in the office of the City Manager not less than 30 days prior to the adoption of the tax levy, and open to public inspection by anyone.
The plan shall provide a complete program of action for the fiscal year. It shall contain the following:
A.
OBJECTIVES - Established by the City Council.
B.
GOALS - City Manager’s program to meet the objectives of the Council.
C.
BUDGET - Financial plan to meet the administrative needs of the City for the fiscal year consistent with the Objectives and Goals set by the Council and City Manager.
D.
STAFF PLAN - A summary of the personnel requirements required to provide the services of the City. Additions or deletions of personnel must be specifically identified and justified.
The City Council shall hold a minimum of two public hearings on the plan not less than 15 days subsequent to the filing of the plan by the City Manager. Public notice of said hearings shall be given by the City Council not less than 10 or more than 30 days prior to the hearings. The two public hearings shall be 7-14 days apart, and may be held in conjunction with regular Council meetings.
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 plan submitted, at which all interested persons shall be given an opportunity to be heard, for or against the estimates of any item thereof.
The plan shall be finally adopted at the conclusion of the last public hearing by the favorable votes of at least a majority of all members of the whole City Council.
Upon final adoption, the budget shall be in effect for the fiscal year. Copies of the plan, as finally adopted, shall be maintained at City Hall for public inspection, filed with the County Clerk(s) of the appropriate County, and filed with the State Comptroller of Public Accounts in Austin. The final plan shall be reproduced, in whole or in part, 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.
The plan message shall be explanatory of the budgets[;] it shall contain an outline of the proposed financial policies of the City for the fiscal year and shall describe in connection therewith, the important features of the plan. It shall set forth the reasons for salient changes from the previous year in expenditure and revenue items, and shall explain any major changes in financial policy.
The budget shall be developed using the principle of “zero budgeting.” That is, the budget each year shall be assembled from a zero base not factored from a prior year budget or from prior year expenditures. The total estimated expenditures of the City shall not exceed the total estimated resources for each fund (prospective income plus cash on hand).
All appropriations shall lapse at the end of the fiscal year to the extent that they have not been expended or lawfully encumbered.