The fiscal year of the city shall be established by the city council.
The city manager shall prepare a budget to cover all proposed expenditures of the city for the succeeding year and such budget shall be presented to the city council for consideration and approval. Such budget shall be prepared in conformity with state law. No public money shall ever be spent or appropriated, except in case of an emergency, or public calamity, unless funds are currently in the possession of the city to cover said expenditures or appropriation.
The city council is authorized to select one or more depositories for city funds in accordance with state law.
(a) 
The city council shall have the power and authority by ordinance duly passed, and it is hereby expressly authorized to issue bonds for 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, revenue warrants, notes, and other evidence of indebtedness as now authorized or as may be hereafter authorized to be issued by cities and towns in accordance with state law.
(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 Texas, or by the General Laws of the State of Texas.
(d) 
Ordinances authorizing any bonds, warrants, revenue warrants, 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, in accordance with state law.
(e) 
Any officer or agent of the city who shall unlawfully or knowingly divert or use said funds or cause or permit same to be diverted or used for any other purpose except that for which the fund is created or herein expressly authorized to be invested shall be deemed guilty of a felony and subject to prosecution as provided under the general laws of the State of Texas.
(f) 
What is known as "Bond and Warrant Law," the same being Article 2368a of Vernon's Civil Statutes of Texas, and being the Acts of 1931 Legislature, Page 269, Chapter 163, and all amendments thereafter made or that may be hereafter made, which are applicable to cities and towns, are hereby adopted by the city.
The city council shall cause an annual audit to be made of the books of accounts of each and every department of the city in accordance with state law. Such audit shall be made by certified public accountants who shall be selected by the city council, and a contract entered into from year to year; and such contract shall provide that the books of the city shall be audited at least annually, and such auditors' report to the city council shall be accessible to the public or for publication.