Res 1991-052 - Laserfiche WebLink

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Municipal Sales Tax History The City has adopted the Municipal Sales and Use Tax Act, VATCS, Tax Code, Chapter 321, which grants the City the power to impose and levy a 196 Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the Bonds. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deduction of a 296 service fee, to the City monthly. Revenue from this source, for the years shown, has been: Fiscal Year 96 of Equivalent of Ended Total Ad Valorem Ad Valorem Per 9-30 Collected Tax Levy Tax Rate ~ 1981 $ 878,369 51. 2496 $0.728 38.52 1982 1,123,309 56.5496 0.582 45.85 1983 1,305,517 54.5996 0.355 49.87 1984 1,535,273 57.0096 0.388 46.04 1985 1,759,830 50.8896 0.386 52.53 1986 1,848,274 48.5896 0.369 52.81 1987 1,629,912 42.6096 0.209 47.04 1988 2,330,252 60.6296 0.297 67.25 1989 2,907,649 76.2696 0.444 78.80 1990 2,965,002 72 .5596 0.433 80.43 * Based on estimated population for all years. Financial Administration The financial administration of the City is vested in the Department of Finance. The Department of Finance operates under the Director of Finance, who is appointed by the City Manager. Required activities of the Department of Finance are control, custody and disbursement of City funds, assessment and collection of taxes and issuance of licenses. Other activities of the department include data processing, utility billing and collections, internal service fund operation, annual budget preparation and interim and annual financial reports. Financial Policies Basis of Accounting... The City's accounting records of the governmental fund revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they are available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt. The accrual basis of accounting is utilized by proprietary funds. Under the accrual basis of accounting, revenues are recognized in the accounting period in which they are earned and become measurable. Expenses are recorded in the accounting period incurred, if measurable. General Fund Balance. . . The City policy is to maintain surplus and unencumbered fund equal to three (J) months of expenditures in the General Fund. This allows the City to avoid interim borrowing pending tax receipts. Use of Bond Proceeds, Grants, etc. . . The City's policy is to use bond proceeds, grants, revenue sharing or other non-recurring revenues for capital expenditures only. Such revenues are never to be used to fund City operations. Budgetary Procedures... The City Charter establishes the fiscal year as the twelve-month period beginning October 1. The departments submit to the City Manager a budget of estimated expenditures for the ensuing fiscal year by the first of June. The City Manager subsequently submits a budget of estimated expenditures and revenues to the City Council by August 1. The City Council shall hold a public hearing on the budget after giving at least 7 days notice of the hearing in the official newspaper of the City. The Council shall then make any changes in the budget as it deems advisable and shall adopt a budget prior to September 15. During the fiscal year, budgetary control is maintained by the review of departmental appropriation balances with purchase orders prior to their release to vendors. Departmental appropriations that have not been expended lapse at the end of the fiscal year. Therefore, funds that were budgeted and not used by the departments during the fiscal year are not available for their use unless appropriated in the ensuing fiscal year's budget. Fund Investments. . . The City investment policy parallels state law which governs investment of public funds. The City generally restricts investments to direct obligations of the United States Government and to insured or collateralized bank certificates of deposits. -16 -