CHAPTER 102. MUNICIPAL BUDGET - Texas Statutes

LOCAL GOVERNMENT CODE

TITLE 4. FINANCES

SUBTITLE A. MUNICIPAL FINANCES

CHAPTER 102. MUNICIPAL BUDGET

Sec. 102.001. BUDGET OFFICER. (a) The mayor of a municipality

serves as the budget officer for the governing body of the

municipality except as provided by Subsection (b).

(b) If the municipality has the city manager form of government,

the city manager serves as the budget officer.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 102.002. ANNUAL BUDGET REQUIRED. The budget officer shall

prepare each year a municipal budget to cover the proposed

expenditures of the municipal government for the succeeding year.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 102.003. ITEMIZED BUDGET; CONTENTS. (a) The budget

officer shall itemize the budget to allow as clear a comparison

as practicable between expenditures included in the proposed

budget and actual expenditures for the same or similar purposes

made for the preceding year. The budget must show as definitely

as possible each of the projects for which expenditures are set

up in the budget and the estimated amount of money carried in the

budget for each project.

(b) The budget must contain a complete financial statement of

the municipality that shows:

(1) the outstanding obligations of the municipality;

(2) the cash on hand to the credit of each fund;

(3) the funds received from all sources during the preceding

year;

(4) the funds available from all sources during the ensuing

year;

(5) the estimated revenue available to cover the proposed

budget; and

(6) the estimated tax rate required to cover the proposed

budget.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 102.004. INFORMATION FURNISHED BY MUNICIPAL OFFICERS AND

BOARDS. In preparing the budget, the budget officer may require

any municipal officer or board to furnish information necessary

for the budget officer to properly prepare the budget.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 102.005. PROPOSED BUDGET FILED WITH MUNICIPAL CLERK; PUBLIC

INSPECTION. (a) The budget officer shall file the proposed

budget with the municipal clerk before the 30th day before the

date the governing body of the municipality makes its tax levy

for the fiscal year.

(b) A proposed budget that will require raising more revenue

from property taxes than in the previous year must contain a

cover page with the following statement in 18-point or larger

type: "This budget will raise more total property taxes than

last year's budget by (insert total dollar amount of increase and

percentage increase), and of that amount (insert amount computed

by multiplying the proposed tax rate by the value of new property

added to the roll) is tax revenue to be raised from new property

added to the tax roll this year."

(c) The proposed budget shall be available for inspection by any

person. If the municipality maintains an Internet website, the

municipal clerk shall take action to ensure that the proposed

budget is posted on the website.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

924, Sec. 1, eff. September 1, 2007.

Sec. 102.006. PUBLIC HEARING ON PROPOSED BUDGET. (a) The

governing body of a municipality shall hold a public hearing on

the proposed budget. Any person may attend and may participate

in the hearing.

(b) The governing body shall set the hearing for a date

occurring after the 15th day after the date the proposed budget

is filed with the municipal clerk but before the date the

governing body makes its tax levy.

(c) The governing body shall provide for public notice of the

date, time, and location of the hearing. The notice must

include, in type of a size at least equal to the type used for

other items in the notice, any statement required to be included

in the proposed budget under Section 102.005(b).

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

924, Sec. 2, eff. September 1, 2007.

Sec. 102.0065. SPECIAL NOTICE BY PUBLICATION FOR BUDGET HEARING.

(a) The governing body of a municipality shall publish notice

before a public hearing relating to a budget in at least one

newspaper of general circulation in the county in which the

municipality is located.

(b) Notice published under this section is in addition to notice

required by other law, except that if another law requires the

governing body to give notice, by publication, of a hearing on a

budget this section does not apply.

(c) Notice under this section shall be published not earlier

than the 30th or later than the 10th day before the date of the

hearing.

(d) Notice under this section must include, in type of a size at

least equal to the type used for other items in the notice, any

statement required to be included in the proposed budget under

Section 102.005(b).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 24, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 402, Sec. 9, eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

924, Sec. 3, eff. September 1, 2007.

Sec. 102.007. ADOPTION OF BUDGET. (a) At the conclusion of the

public hearing, the governing body of the municipality shall take

action on the proposed budget.

(b) The governing body may make any changes in the budget that

it considers warranted by the law or by the best interest of the

municipal taxpayers.

(c) Adoption of a budget that will require raising more revenue

from property taxes than in the previous year requires a separate

vote of the governing body to ratify the property tax increase

reflected in the budget. A vote under this subsection is in

addition to and separate from the vote to adopt the budget or a

vote to set the tax rate required by Chapter 26, Tax Code, or

other law.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

924, Sec. 4, eff. September 1, 2007.

Sec. 102.008. APPROVED BUDGET FILED WITH MUNICIPAL CLERK:

POSTING ON INTERNET. On final approval of the budget by the

governing body of the municipality, the governing body shall:

(1) file the budget with the municipal clerk; and

(2) if the municipality maintains an Internet website, take

action to ensure that a copy of the budget is posted on the

website.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

924, Sec. 5, eff. September 1, 2007.

Sec. 102.009. LEVY OF TAXES AND EXPENDITURE OF FUNDS UNDER

BUDGET; EMERGENCY EXPENDITURE. (a) The governing body of the

municipality may levy taxes only in accordance with the budget.

(b) After final approval of the budget, the governing body may

spend municipal funds only in strict compliance with the budget,

except in an emergency.

(c) The governing body may authorize an emergency expenditure as

an amendment to the original budget only in a case of grave

public necessity to meet an unusual and unforeseen condition that

could not have been included in the original budget through the

use of reasonably diligent thought and attention. If the

governing body amends the original budget to meet an emergency,

the governing body shall file a copy of its order or resolution

amending the budget with the municipal clerk, and the clerk shall

attach the copy to the original budget.

(d) After the adoption of the budget or a budget amendment, the

budget officer shall provide for the filing of a true copy of the

approved budget or amendment in the office of the county clerk of

the county in which the municipality is located.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 102.010. CHANGES IN BUDGET FOR MUNICIPAL PURPOSES. This

chapter does not prevent the governing body of the municipality

from making changes in the budget for municipal purposes.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 102.011. CIRCUMSTANCES UNDER WHICH CHARTER PROVISIONS

CONTROL. If a municipality has already adopted charter

provisions that require the preparation of an annual budget

covering all municipal expenditures and if the municipality

conducts a public hearing on the budget as provided by Section

102.006 and otherwise complies with the provisions of this

chapter relating to property tax increases, the charter

provisions control. After the budget has been finally prepared

and approved, a copy of the budget and the amendments to the

budget shall be filed with the county clerk, as required for

other budgets under this chapter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

924, Sec. 6, eff. September 1, 2007.