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