City of Sweeny, Texas

CITY CHARTER

 

ARTICLE VII.  FINANCE

Sec. 7.01. Fiscal Year.

The fiscal year of the City shall be as established by ordinance of the City Council. In the event the City Council does not thus establish the fiscal year, the fiscal year of the City shall begin on the first day of each October and end on the last day of September of the following year. All funds collected by the City during any fiscal year, including both current and delinquent revenues, shall belong to such fiscal year and, except for funds derived to pay interest and create a sinking fund on the bonded indebtedness of the City, may be applied to the payments of expenses incurred during such fiscal year, except as provided in this Charter. Any revenues uncollected at the end of any fiscal year, and any unencumbered funds actually on hand, shall become resources of the next succeeding fiscal year.

Sec. 7.02. Budget Preparation and Adoption.

At least sixty (60) days prior to the end of each fiscal year, the City Manager shall submit to the City Council a proposed budget presenting a complete financial plan for the ensuing fiscal year. If the City Council fails to adopt an annual budget before the start of the fiscal year to which it applies, appropriations of the last budget adopted shall be considered as adopted for the current fiscal year on a month to month, pro rata basis, until the annual budget is adopted. No budget shall be adopted or appropriations made unless the total of estimated revenues, income, and funds available shall be equal to or in excess of such budget or appropriations, except as otherwise provided in this Article.

The annual budget shall specify appropriations for capital expenditures and for expenditures directed by City Council for services and for the operation of the City. It shall comply with fund requirements of bond covenants.

Sec. 7.03. Appropriation.

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several objects and purposes named therein. Except as provided in this Article, no funds of the City shall be expended, nor shall any obligation for the expenditure of money be incurred, except pursuant to the annual appropriation ordinance provided by this Article. At the close of the each fiscal year any unencumbered balance of an appropriation shall revert to the fund from which appropriated and become available for reappropriation for the next fiscal year. The City Council may transfer any unencumbered appropriation balance or portion thereof from one office, department, or agency to another, at any time. The City Manager shall have authority, without City Council approval, to transfer appropriation balances from one expenditure account to another within a single office, department, or agency of the City.

Sec. 7.04. Contingent Appropriation.

Provision shall be made in the annual budget for a contingent appropriation in an amount not to exceed ten percent (10%) of the total budget, to be used in case of unforeseen items of expenditure. Such contingent appropriation shall be under the control of, and distributed by, the City Manager, after approval by the City Council. Expenditures from this appropriation shall be made only in the event of established emergencies or public necessities, and a detailed account of such expenditures shall be recorded and reported.

Sec. 7.05. Borrowing in Anticipation of Property Taxes.

In any fiscal year, in anticipation of the collection of the ad valorem property tax for such year, whether levied or to be levied in such year, the City Council may by resolution authorize the borrowing of money, not to exceed in any fiscal year an amount equal to ten percent (10%) of the budget for that fiscal year. Such borrowing shall be by the issuance of negotiable notes of the City, each of which shall be designated "tax anticipation note for the year (stating the tax year)." Such notes shall mature and be payable not later than the end of the fiscal year in which issued, and may be secured by the pledge of the ad valorem property taxes for such year.

Sec. 7.06. Depository.

All moneys received by any person, department, or agency of the City for or in connection with affairs of the City shall be deposited promptly in the City depository or depositories, which shall be designated by the City Council in accordance with such regulations and subject to such requirements as to security for deposits and interest thereon as may be established by ordinance or by the Laws of the State of Texas. All checks, vouchers, or warrants for the withdrawal of money from the City depositories shall be signed by the City Manager and/or such other person or persons as the City Council shall designate by ordinance or resolution. Provided, that the City Council, under such regulations and limitations as it may prescribe, may by ordinance authorize the use of machine imprinted facsimile signatures on such checks, vouchers car warrants.

Sec. 7.07. General Obligation Bonds.

The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or for any other public purpose not prohibited by the Constitution and Laws of the State of Texas, and to issue refunding bonds to refund outstanding bonds of the City previously issued. All such bonds shall be issued in conformity with the Laws of the State of Texas.

Sec. 7.08. Revenue Bonds.

The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing public utilities, recreational facilities, or any other self-liquidating municipal function not prohibited by the Constitution and Laws of the State of Texas, and to issue revenue bonds to evidence the obligation created thereby. Such bonds shall be a charge upon and payable solely from the properties, or interest therein, pledged, or the income therefrom, or both, and shall never be a debt of the City. All such bonds shall be issued in conformity with the Laws of the State of Texas.

Sec. 7.09. Sale of Bonds.

No bond (other than refunding bonds issued to refund and in exchange for previously issued outstanding bonds) issued by the City shall be sold for less than par value and accrued interest. All bonds of the City having been issued and sold in accordance with the terms of this Section, and having been delivered to the purchasers thereof, shall thereafter be incontestable, and all bonds issued to refund and in exchange for outstanding bonds previously issued shall, after said exchange, be incontestable.

Sec. 7.10. Purchase Procedure.

All purchases made and contracts executed by the City shall be pursuant to a requisition from the head of the office, department, or agency whose appropriations will be charged, and no contract or order shall be binding upon the City unless and until the City Manager certifies that there is to the credit of such office, department or agency a sufficient unencumbered appropriation and allotment balance to pay for the supplies, materials, equipment, or contractual services for which the contract or order is to be issued. All purchases made and contracts executed by the City shall be in accordance with the requirements of the Constitution and Laws of the State of Texas.

Sec. 7.11. Independent Audit.

At the close of each fiscal year, and at such other times as it may be deemed necessary, the City Council shall cause an independent audit to be made of all accounts of the City by a certified public accountant. The certified pubic accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the City or any of its officers. Upon completion of the audit, copies thereof shall be placed on file in the City Secretary's office as a public record.