The fiscal year of the City of Houston shall be the first day of July each year to the thirtieth day of June of the following year.
(Ord. 09-05 § 4, 2009; Ord. 16-02 § 5, 2016)
A. 
The Mayor shall submit a comprehensive operating budget to the Council, with an accompanying message and proposed ordinance for appropriations to be disbursed, no later than the first regular meeting in May of each year.
B. 
Budget preparation shall begin at the department level with each department head and committee chair to submit, before March 30th each year, a preliminary budget for the department.
C. 
The Council shall hold at least one public hearing on the budget ordinance.
D. 
The Council will adopt the annual budget before June 30th each year.
E. 
The approved annual operating budget shall be the approved spending plan of the City and shall be managed by the Mayor or designee.
F. 
The budget of the City includes the following departments:
1. 
Administration.
2. 
Public Works/Road Department.
3. 
Public Safety Department.
4. 
Houston Animal Safety and Protection.
G. 
A separate section of the annual budget should be labeled "Capital Projects" and reflect projected operating costs of new capital projects.
H. 
An additional section shall be labeled "Enterprise Funds" with a separate annual budget for each enterprise fund the City establishes.
(Ord. 09-05 § 4, 2009; Ord. 12-12 § 4, 2012; Ord. 16-02 § 5, 2016; Ord. 23-04 § 4, 2023; Ord. 23-09 § 4, 2023; Ord. 24-19 § 5, 2024)
The Council must make all appropriations by noncoded ordinance. Within a departmental budget, the Mayor may transfer part or all of any appropriation among line items, as necessary up to 10 percent of the departmental budget.
(Ord. 09-05 § 4, 2009; Ord. 10-04 § 4, 2010; Ord. 12-12 § 4, 2012; Ord. 16-02 § 5, 2016; Ord. 23-04 § 4, 2023)
The Council shall establish a separate interest-bearing capital account. As determined by the City's Capital Improvement Plan and a majority vote of the Council, this account shall be used for:
A. 
Acquisition of new assets.
B. 
Replacing existing assets.
C. 
Investment in projects.
This account shall be funded primarily by the sales, lease or use of lands to which the City has title, as well as from the sale of timber, gravel or other resources taken or extracted from the land. Additional funding may be determined by Council.
(Ord. 12-12 § 4, 2012; Ord. 16-02 § 5, 2016)
The Council shall establish a separate interest-bearing account and it shall be known as a "Reserve Fund." The Reserve Fund balance goal shall be one-quarter of the current budgeted FY year expenditures. This fund may be used upon majority vote of the Council to:
A. 
Meet unforeseen or emergency expenses.
B. 
Make up budget shortfalls.
C. 
Transfer funds that are above the Reserve Fund goal by 15 percent for that current fiscal year expenditures are to be transferred to a nonrecurring revenues fund.
(Ord. 09-05 § 4, 2009; Ord. 12-12 § 4, 2012; Ord. 16-02 § 5, 2016; Ord. 23-04 § 4, 2023)
The City keeps all financial documents in accordance with the adopted records retention schedule.
(Ord. 09-05 § 4, 2009; Ord. 16-02 § 5, 2016)
A. 
The Treasurer prepares a monthly report of City finances for the Council. The monthly report shows balances in each fund. The Treasurer shall also prepare monthly up-to-date budget reports for each department for the Mayor and Council. The report shall be approved by the Mayor before submission to the Council.
B. 
The Treasurer shall prepare an annual report for the Mayor's use in budgeting for the coming fiscal year.
(Ord. 09-05 § 4, 2009; Ord. 16-02 § 5, 2016)
A. 
Purpose. An enterprise fund for a municipality is a financial mechanism used to support services that are intended to be self-sustaining through user fees, rather than funded by general tax revenue. These funds are typically established for specific services or facilities, such as water and wastewater systems, public transportation, or recreational facilities.
B. 
Enterprise Fund – Self-Sustaining. Revenue generated from services must cover operational costs, maintenance, and capital improvements.
C. 
User Fees. Funding is primarily derived from fees charged to users of the service, such as utility bills or ticket sales.
D. 
Separate Accounting. Enterprise funds are kept separate from the general fund, allowing for clear tracking of income and expenditures related to specific services.
E. 
Financial Accountability. These funds are subject to accounting and reporting standards to ensure transparency and accountability.
F. 
Investment in Infrastructure. Funds can be used for long-term infrastructure projects, ensuring the sustainability of essential services.
G. 
Establish Pricing Structures. Set fair and transparent user fees to cover costs.
H. 
Create Separate Accounting. Implement accounting systems to track the fund's finances. Regularly review fund performance and adjust fees or services as needed.
(Ord. 24-19 § 5, 2024)