LOCAL GOVERNMENT CODE
TITLE 4. FINANCES
SUBTITLE A. MUNICIPAL FINANCES
CHAPTER 101. GENERAL FINANCIAL PROVISIONS AFFECTING
MUNICIPALITIES
SUBCHAPTER A. PROVISIONS AFFECTING TYPE A GENERAL-LAW
MUNICIPALITIES
Sec. 101.001. MUNICIPALITY COVERED BY SUBCHAPTER. This
subchapter applies only to a Type A general-law municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.002. CONTROL OF FINANCES. The governing body of the
municipality may manage and control the finances of the
municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.003. APPROPRIATIONS; PAYMENTS. The governing body of
the municipality may appropriate money and provide for the
payment of municipal debts and expenses.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.004. SPECIAL FUNDS; DISBURSEMENT. The governing body
of the municipality may provide by ordinance for the creation of
special funds for special purposes and may provide that a special
fund may be disbursed only for the purpose for which the fund was
created.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.005. DEBT PAYMENTS; IMPROVEMENTS. (a) The governing
body of the municipality may appropriate municipal revenues to:
(1) retire and discharge the accrued indebtedness of the
municipality;
(2) improve public markets and streets; or
(3) erect and operate municipal hospitals, a city hall,
waterworks, or other municipal buildings and facilities.
(b) The governing body may appropriate municipal revenues under
this section in amounts and under conditions that it considers
appropriate.
(c) In order to fulfill its functions under this section, the
governing body may borrow money based on the credit of the
municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.006. RECEIVERSHIP FOR PAYMENT OF DEBTS. (a) On the
failure of the municipality to accomplish a compromise of its
debts or pending the negotiation of a compromise, the
municipality may apply to the district court of the county in
which the municipality is located to have the court take charge
of the collection and appropriation of all taxes levied and
assessed by the municipality, except an amount of taxes necessary
to pay the current expenses of the municipality. The application
must describe the financial condition and insolvency of the
municipality.
(b) After the application is made to the district court, the
court shall appoint a receiver or designate the assessor and
collector of the municipality as receiver to collect and pay into
a named depository, for the payment of the municipal debts, all
taxes levied by the municipality. The district court may not
appoint a receiver except on the voluntary application of the
municipality.
(c) The district court shall decide all questions of priority
between conflicting claimants of the municipal funds in the
depository and shall provide for the ratable and equitable
distribution of the funds among all creditors entitled to the
funds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER B. PROVISIONS APPLICABLE TO HOME-RULE MUNICIPALITIES
Sec. 101.021. MUNICIPALITY COVERED BY SUBCHAPTER. This
subchapter applies only to a home-rule municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.022. GENERAL FISCAL POWERS. The municipality may:
(1) control and manage the finances of the municipality; and
(2) prescribe its fiscal year and other fiscal arrangements.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 101.0221. FISCAL YEAR FOR CERTAIN MUNICIPALITIES.
Notwithstanding any fiscal year provision in the municipal
charter, a municipality with a population in excess of 500,000
which is situated in a county bordering the Republic of Mexico
may prescribe its fiscal year by ordinance.
Added by Acts 1993, 73rd Leg., ch. 618, Sec. 1, eff. Aug. 30,
1993. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 13.14, eff.
Sept. 1, 1999.
Sec. 101.023. GARNISHMENT. The municipality may provide that
its municipal funds are not subject to garnishment and that the
municipality is not required to answer in garnishment
proceedings.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER C. PROVISIONS APPLICABLE TO GENERAL-LAW MUNICIPALITIES
Sec. 101.041. MUNICIPALITY COVERED BY SUBCHAPTER. This
subchapter applies only to a general-law municipality.
Added by Acts 1993, 73rd Leg., ch. 68, Sec. 1, eff. May 2, 1993.
Sec. 101.042. FISCAL YEAR. The governing body of the
municipality by ordinance may prescribe the fiscal year of the
municipality.
Added by Acts 1993, 73rd Leg., ch. 68, Sec. 1, eff. May 2, 1993.