ORD 2015-25TOWN OF TROPHY CLUB, TEXAS
ORDINANCE 2015-25
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS,
REPEALING ARTICLE XVI, ENTITLED "CITIZENS FINANCIAL
ADVISORY BOARD", OF CHAPTER 1 ENTITLED "ADMINISTRATION"
OF THE CODE OF ORDINANCES AND ADOPTING A NEW ARTICLE
XVI "BUDGET ADMINISTRATION AND FIDUCIARY OVERSIGHT", OF
CHAPTER 1 "ADMINISTRATION" OF THE TOWN OF TROPHY CLUB
CODE OF ORDINANCES IN ORDER TO ADOPT PROCEDURES FOR
ADMINISTRATION AND FIDUCIARY OVERSIGHT OF THE BUDGET;
PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING
FOR AN AMENDMENT; PROVIDING A CUMULATIVE REPEALER
CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR
ENGROSSMENT AND ENROLLMENT, AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club, Texas is a Home Rule Town acting under
its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas
constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the Town Charter stipulates that the Council shall provide by
ordinance the procedures for administration and fiduciary oversight of the budget; and
WHEREAS, the Budget Process sets forth certain requirements such as cost of
service delivery comparisons, procedures for administration and fiduciary oversight of
the budget, proposed goals for current and future operations and methods to measure
outcomes and performance related to goals, and a five year capital plan; and
WHEREAS, the Town Council previously created a Citizens Financial Advisory
Board and since that time, the Town has made changes to its budgeting procedures
and strengthened its processes by following Government Finance Officers Association
regulations and those regulations set forth standards for administration and oversight of
municipal budgets; and
WHEREAS, the Town Council has determined that the adoption of the
Procedures for Administration and Fiduciary Oversight of the Budget as set forth in this
Ordinance serve the best interests of the Town and its residents; and
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS, THAT:
SECTION 1.
INCORPORATION OF PREMISES
The above and foregoing premises having been found by the Town Council to be
true and correct are incorporated herein and made a part hereof for all purposes.
SECTION 2.
AMENDMENT - ADOPTION OF ARTICLE XIV OF CHAPTER XV
2.01 Article XVI entitled "Citizens Financial Advisory Board" of Chapter 1 entitled
"Administration" of the Code of Ordinances of the Town of Trophy Club is hereby
repealed in its entirety and a new Article XVI entitled "Budget Administration and
Fiduciary Oversight" of Chapter 1 entitled "Administration" is hereby adopted and shall
read in its entirety as follows:
"Section 16.01 Budget Administration and Development
A. Submission - The Town Manager shall submit to the Council a
proposed budget and accompanying message in accordance with the
Town Charter or as required by State law. The Council shall review
the proposed budget and revise it as deemed appropriate prior to
general circulation for public hearing (Charter Section 9.04).
B. Public Hearing on Budget - The Council shall hold a public hearing on
the budget and shall provide adequate public notice of such hearing,
including publication of notice as required by State law.
C. Truth in Taxation - Budget development procedures shall be in
conformance with the State law outlined in the Truth in Taxation
process. In the event of a tax increase, notices shall be provided and
required hearing(s) held in conformance to this State law.
D. Adoption - The Council, by majority vote, shall adopt the budget by
ordinance no later than the 30th day of September. Adoption of the
budget shall constitute appropriations of the amount specified as
expenditures from the fund indicated. If the Council fails to adopt a
budget by the beginning of the fiscal year, the budget currently in place
for the preceding year shall remain in place on a month-to-month basis
until such time as a new budget has been adopted.
E. Amendment - The Council, by ordinance, may make supplemental
appropriations for the year. To address a public emergency affecting
life, health, property, or the public peace, the Council may also make
emergency appropriations. Such appropriations may be made by
emergency ordinance. The level of budgetary control for amendments
shall be, at a minimum, made on a fund level.
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F. Transfers - At any time during or before the fiscal year, the Council
may, by resolution, transfer part or all of the unencumbered
appropriation balance from one department, fund, service, strategy or
organizational unit to the appropriation for other departments or
organizational units or a new appropriation. The Town Manager may
transfer funds among programs within a department, fund, service,
strategy, or organizational unit and shall report such transfers to the
Council in writing in a timely manner.
G. Reduction of Appropriations - If at any time during the fiscal year it
appears probable to the Town Manager that the revenues or fund
balances available will be insufficient to finance the expenditures for
which appropriations have been authorized, the Town Manager shall
report to the Council without delay, indicating the estimated amount of
the deficit, any remedial action taken by the Town Manager and
recommendations as to any other steps to be taken. The Council shall
then take such further action as it deems necessary to prevent or
reduce any deficit and for that purpose it may by ordinance reduce or
eliminate one or more appropriations.
H. Public Records - The budget, budget message, and all supporting
schedules shall be in a public record in the office of the Town
Secretary and shall be public records available to the public for
inspection upon request.
I. Balanced Budget Required - The Town of Trophy Club shall develop
balanced budgets in which current resources (current revenues plus
fund balance) shall equal or exceed current expenditures.
J. Funding of Current Expenditures with Current Revenues - The budget
will assure that current expenditures are funded with current revenues.
Current operating expenses will not be capitalized or funded through
the use of long-term debt.
Section 16.02 Revenue Policies
A. Revenue Goal - The Town shall attempt to maintain a diversified and
stable revenue stream to shelter it from short -run fluctuations in any
one revenue source.
B. Development of Revenue Projection - The Town shall estimate its
annual revenues using an objective analytical process. Each year, the
Town shall project revenues for the budget year and two (2)
subsequent years; and these projections shall be updated annually.
ORD 2015-25 Page 3 of 5
Each existing and potential revenue source shall be examined
annually.
C. Fund Balance Policy - The Town has adopted a policy setting
guidelines for fund balance to provide for the financial stability of the
Town in accordance with Governmental Accounting Standards Board
Statement No. 54, and shall update that policy as necessary.
Unassigned fund balance is an important measure of economic
stability; therefore, the Town shall maintain adequate levels of
unassigned fund balance to mitigate financial risk that can occur from
unforeseen revenue fluctuations, unanticipated expenditures, and
similar circumstances. The fund balance shall also be maintained to
provide cash flow liquidity for the Town's general operations.
16.03 Council Subcommittee
At the first meeting in June of each year, the Town Council shall take
action to designate three (3) of its members to serve on a Council
Subcommittee formed for the purpose of providing fiduciary oversight of
the budget, as well as providing input regarding the administration of the
budget and the budget process. The Subcommittee shall meet with Town
staff and shall provide updates to the full Council as the budget is
developed."
SECTION 3.
CUMULATIVE REPEALER
This Ordinance shall be cumulative of all other Ordinances of the Town and
except as expressly provided herein or where this Ordinance is in direct conflict with
previously adopted Ordinances, this Ordinance shall not repeal any of the provisions of
such Ordinances; whether such Ordinances are codified or uncodified, and all other
provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in
conflict with the provisions of this Ordinance, shall remain in full force and effect.
SECTION 4.
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance, or application thereof to any person or circumstance, is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of the Ordinance, and the Town Council hereby
declares it would have passed such remaining of the Ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
ORD 2015-25 Page 4 of 5
SECTION 5.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross
and enroll this Ordinance in accordance with the Town Charter and by filing this
Ordinance in the Ordinance records of the Town.
SECTION 6.
EFFECTIVE DATE
This Ordinance shall take effect from and after its date of passage in accordance
with law, and it is so ordained.
PASSED AND APPROVED by the
Texas, this 8th day of September, 2015.
ATTEST:
Holly Fim res, Town Secretary
Town of Trophy Club, Texas
APPROVED AS TO FORM:
Patricia A. Adams, Town Attorney
Town of Trophy Club, Texas
Town Council of the Town of Trophy Club,
C. Nick Sanders,_Mayor
Town of Trophy Club, Texas
[SEAL]
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