Law:Title 4. Finances (Texas)

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Subtitle A. Municipal Finances

Contents

Chapter 101. General Financial Provisions Affecting Municipalities

Subchapter A. Provisions Affecting Type A General-law Municipalities

Section  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.



Section  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.



Section  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.



Section  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.



Section  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.



Section  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

Section  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.



Section  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.



Section  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.



Section  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

Section  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.



Section  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.

Chapter 102. Municipal Budget

Section  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.



Section  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.



Section  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.



Section  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.



Section  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.



Section  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.



Section  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.



Section  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.



Section 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.



Section  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.



Section  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.



Section 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.


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