(A) Budget overview. The city shall annually adopt a balanced budget where current estimated revenues plus available unreserved fund balances are equal to or exceed current and proposed expenditures. Any year end surpluses will revert to unappropriated balances for use in maintaining reserve levels, for capital projects and/or “one-time only” expenditures.
(B) Budgetary controls. The city shall maintain a budgetary control system to ensure adherence to adopted budget and associated appropriations. Monthly reports shall be provided for Council approval, listing check detail for each fund/account including item number, payee, account, paid amount from the previous month. Monthly reports shall be provided for Council approval, showing the bank reconciliation for each fund/account including beginning balance, cleared transactions and uncleared transactions and ending balance and a disbursements ledger showing all revenue and payments for the previous month.
(C) Policy. It is hereby declared to be the policy of the city to provide for efficient, economical and effective controls over the creation, and management of the city budget from creation to ultimate disposition, consistent with the requirements of the Tex. Loc. Gov’t Code and accepted financial management practice.
(D) Financial Management Officer. The City Secretary will serve as Financial Manager for the city and will ensure adherence to the adopted budget and associated appropriations; the preparation of required financial reports; and the efficient management of city finances in accordance with city policy and procedures.
(E) Control of unbudgeted expenditures. The legal level for expenditure (expense) budget control is the Fund Level. Changes in line items should be processed through the Mayor and/or the City Council. The City Financial Manager is given latitude to stay within the total budgeted amount for each fund. Unbudgeted items must be approved by the mayor and/or the city council according to the Tex. Loc. Gov’t Code and city policy concerning approval of expenditures and bidding for services.
(Ord. 0811-1, passed 8-8-2011)