Ord 1993-037 - Laserfiche WebLink

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J 2~J)& City of San Marcos, Texas Exhibit 6 Notes to General Purpose Financial Statements (continued) September 30, 1992 1. Significant Accounting Policies (continued) The accrual basis of accounting is utilized by proprietary funds and nonexpendable trust funds. Under the accrual basis of accounting, revenues are recognized in the accounting oericxi in which they are earned and become measurable. Expenses are recorded in the _,-,counting period incurred, if measurable. Unbilled service receivables have been accrued in the Proprietary Funds. Budgets and Budgetary Accounting The City Charter prescribes certain requirements for adoption of an annual operating budget by the City Council. Major requirements are summarized here. The Council must have a public hearing on the budget and may not adopt the budget until after 14 days after the hearing. The budget is to be adopted at least 15 days before the fiscal year to which it applies. .. The amounts of proposed expenditures become appropriated to the objectS and purposes named in the budget upon the effective date after adoption. The total estimated expenditures of the General Fund shall not exceed the total estimated resources of the fund (prospective income plus cash on hand). The City budget may be amended and appropriations altered in cases of public necessity, as declared by the City Council. The City Manager has the ability to reallocate funds from one line item to another within the various budget categories within the same department (i.e., personnel services, other charges, contracted services, etc.). City Council approval is required for budget adjustments between departments. The budget ordinance states that expenditures should not be exceeded in the various departmentS (administration, personnel, finance, etc.) within an individual fund. The City's appropriation ordinance approves items as detailed in the approved budget. Budgeted amountS reported are based on the budget ordinance originally adopted and as amended by the City Council throughoUt the year. Governmental Fund anlJual operating budgets are required and prepared for the General Fund, Debt Service Fund, all Capital Projects Funds, and all Special Revenue Funds. -17-