CHAPTER 102. MUNICIPAL BUDGET
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.