89R23797 DNC-F
 
  By: Bell of Montgomery H.B. No. 5267
 
  Substitute the following for H.B. No. 5267:
 
  By:  Bell of Montgomery C.S.H.B. No. 5267
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to municipal and county financial requirements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 140, Local Government Code, is amended
  by adding Sections 140.014 and 140.015 to read as follows:
         Sec. 140.014.  LIMIT ON ANNUAL EXPENDITURES. (a)  In this
  section:
               (1)  "Board" means the Legislative Budget Board.
               (2)  "Consumer price index" means the average over a
  calendar year of the index the board considers to most accurately
  report changes in the purchasing power of the dollar for consumers
  in this state.
               (3)  "Inflation rate" means the amount, expressed in
  decimal form rounded to the nearest thousandth, computed by
  determining the percentage change in the consumer price index for
  the preceding calendar year as compared to the consumer price index
  for the calendar year preceding that calendar year.
               (4)  "Population growth rate" means the rate of growth
  of the state's population during the preceding calendar year,
  expressed in decimal form rounded to the nearest thousandth,
  determined by the board in accordance with the most recent
  population estimates published by the United States Census Bureau.
         (b)  This section applies only to a political subdivision
  that is a municipality or county.
         (c)  Except as provided by Subsection (e) and subject to
  Subsection (f), a political subdivision's total expenditures from
  all available sources of revenue in a fiscal year may not exceed the
  greater of:
               (1)  the political subdivision's total expenditures
  from all available sources of revenue in the preceding fiscal year;
  or
               (2)  an amount determined by multiplying:
                     (A)  the political subdivision's total
  expenditures from all available sources of revenue in the preceding
  fiscal year; and
                     (B)  the sum of one and the rate most recently
  published by the board under Subsection (d).
         (d)  Not later than January 31 of each year, the board shall
  publish a rate equal to the sum of the population growth rate and
  the inflation rate.
         (e)  A political subdivision's total expenditures from all
  available sources of local revenue in a fiscal year may exceed the
  amount described by Subsection (c) if:
               (1)  the political subdivision's voters approve the
  additional expenditures for that fiscal year at an election called
  for that purpose and held on a uniform election date; or
               (2)  the governor declares or renews a declaration of a
  state of disaster under Section 418.014, Government Code, in that
  fiscal year, and the governor's designation of the area threatened
  includes all or part of the geographic territory of the political
  subdivision.
         (f)  The amount by which a political subdivision's total
  expenditures from all available sources of revenue in a fiscal year
  may exceed the amount described by Subsection (c) under Subsection
  (e)(2) may not exceed an amount equal to the actual costs incurred
  by the political subdivision as a result of the declared disaster
  described by Subsection (e)(2).
         (g)  For purposes of this section, the following are not
  considered an available source of revenue:
               (1)  money received from the issuance of bonds approved
  by the voters; or
               (2)  a grant, donation, or gift.
         Sec. 140.015.  TAXPAYER'S BUDGET SUMMARY. (a) This section
  applies only to a political subdivision that is a municipality or
  county.
         (b)  Not later than the 20th day after the date the governing
  body of a political subdivision adopts a budget for the fiscal year,
  the political subdivision shall post on the political subdivision's
  Internet website, if the political subdivision maintains a website,
  or make publicly available if the political subdivision does not
  maintain an Internet website a summary of the adopted budget that
  includes:
               (1)  the total amount of the budget adopted for that
  fiscal year;
               (2)  the amount budgeted for the fiscal year in each of
  the following categories:
                     (A)  general government;
                     (B)  public health;
                     (C)  public safety; 
                     (D)  parks and recreation;
                     (E)  business and economic development;
                     (F)  transportation;
                     (G)  debt service; 
                     (H)  capital improvements; and
                     (I)  other expenditures; and 
               (3)  a taxpayer impact statement that:
                     (A)  lists the name of each fee and property tax,
  as applicable, imposed by the governmental body on a typical
  residential ratepayer;
                     (B)  states the amount of each fee or tax listed in
  Paragraph (A) for a typical residential ratepayer for:
                           (i)  the fiscal year preceding the year
  applicable to the proposed budget; and
                           (ii)  the fiscal year applicable to the
  proposed budget;
                     (C)  states the difference in the amounts stated
  in Paragraphs (B)(i) and (B)(ii) for each fee or tax listed in
  Paragraph (A);
                     (D)  briefly defines a typical residential
  ratepayer for each fee and property tax listed in Paragraph (A);
                     (E)  includes an aggregated total for the amounts
  stated in Paragraphs (B)(i), (B)(ii), and (C), stated separately;
  and
                     (F)  includes aggregate amounts for each fee,
  property tax, or other source of revenue, broken down by the revenue
  type that will be used to fund expenditures in the proposed and
  adopted budget.
         (c)  Not later than the 20th day before the date the
  governing body of a political subdivision holds a public hearing on
  the adoption of a budget for the upcoming fiscal year, the political
  subdivision shall post on the political subdivision's Internet
  website, if the political subdivision maintains a website, or make
  publicly available if the political subdivision does not maintain
  an Internet website a summary of the proposed budget that includes
  for each category described by Subsection (b), in a manner that
  allows comparison of the amounts across categories:
               (1)  the budgeted amount for the preceding fiscal year;
  and
               (2)  the proposed amount for the upcoming fiscal year.
         (d)  A summary prepared under this section:
               (1)  must include a total budget amount that is equal to
  the sum of the budget amounts provided for each category; and
               (2)  may not include an expenditure in more than one
  budget category.
         SECTION 2.  Sections 140.014 and 140.015, Local Government
  Code, as added by this Act, apply only to a fiscal year of a
  municipality or county that begins on or after December 1, 2025.
         SECTION 3.  This Act takes effect September 1, 2025.