89R15047 DNC-F
 
  By: Bell of Montgomery 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), 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 product 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)  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)  A political subdivision shall not later than the 20th
  day after the date the governing body of the political subdivision
  adopts a budget for the fiscal year post on the political
  subdivision's Internet website, if the political subdivision
  maintains a website, a summary of the adopted budget that includes:
               (1)  the total amount of the budget adopted for that
  fiscal year; and
               (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. 
         (c)  A political subdivision shall not later than the 20th
  day before the date the governing body of the political subdivision
  holds a public hearing on the adoption of a budget for the upcoming
  fiscal year post on the political subdivision's Internet website,
  if the political subdivision maintains a 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.