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PUBLIC FINANCE.

El Paso City Charter art. VII
in effect

El Paso City Charter, art. VII, § 7.1 FISCAL YEAR.

Section 7.1 - FISCAL YEAR. The fiscal year and the budget year of the City shall begin on September 1st and end on the succeeding August 31st. A. Change in Fiscal Year. The Council, by ordinance, is authorized to provide for a change in the City's fiscal and budget year from the present period to the period October 1 through September 30, in one or more stages, and to provide for necessary and appropriate changes to be made in the dates for preparation and adoption of the budget and other related matters. In order to provide any necessary financing during the transition or changeover period, the Council may, by ordinance, authorize the borrowing of money by the issuance of general obligation bonds or promissory notes and the levying of a sufficient tax to pay the interest thereon and to provide the required sinking fund to pay the principal thereof, and/or may authorize the payment of all or any part of said interest and principal from any other anticipated tax receipts or other available funds. (Ord. No. 18401, Amd. No. 7, 8-11-2015, Election of 11-3-2015)

El Paso City Charter, art. VII, § 7.2 BUDGET.

Section 7.2 - BUDGET. The budget must present a complete financial plan for the fiscal year, and must contain all elements required under State law. (Ord. No. 18401, Amd. No. 8, 8-11-2015, Election of 11-3-2015)

El Paso City Charter, art. VII, § 7.3 BUDGET PROCEDURES.

Section 7.3 - BUDGET PROCEDURES. The procedures here stated shall govern adoption of the annual budget and the appropriations of monies pursuant thereto. A. Department Estimates. Annually, but not later than three months before the first day of the City's fiscal and budget year, administrative units of the City shall transmit estimates of their budgetary requirements and descriptions of their work programs to the Office of Management and Budget and to the City Manager. The work programs shall include all requested appropriations for the departments' operation and maintenance, including capital equipment, construction, and acquisition. B. Public Hearing. After its presentation to the Council, at least one public hearing on the budget shall be held prior to its adoption; and notice of that public hearing shall be published in accordance with state law. The proposed budget shall be made available for examination at the office of the City Clerk, in accordance with State law. C. Changes. After the required public hearing, the governing body may make any changes to the budget in accordance with and/or permitted by State law. D. Adoption. The budget shall be adopted by resolution, subject to the Mayor's veto, not later than the day before the first day of the City's fiscal and budget year; but, in the event the budget is not adopted, the appropriation for personnel and essential operating supplies made in the previous year shall be extended until the new budget is adopted. E. Filing. A copy of the budget, as finally approved, shall be filed with the El Paso City and County Clerks' offices. F. Tax Levy. As soon as possible after the completion of the tax roll, the Council shall pass the tax levy ordinance in accordance with the laws of Texas. G. Balanced Budget. If at any time during the fiscal year, the City Manager ascertains that available income for the year, including fund balances, will be less than total appropriations, the Council shall reduce those appropriations so that expenditures will not exceed income. Expenditures in excess of gross revenues during the fiscal year are prohibited. H. Availability. The final budget shall be available for use by City departments and for examination in the City Clerk's office by any interested persons. (Ord. No. 18401, Amd. No. 8, 8-11-2015, Election of 11-3-2015)

El Paso City Charter, art. VII, § 7.4 CASH RESERVE FUND.

Section 7.4 - CASH RESERVE FUND. A cash reserve fund in the general operating fund of the City shall be maintained in an amount no less than five percent (5%) of the prior year's adopted general fund operating expenditure budget. The cash reserve fund shall be maintained and reported as restricted under applicable Governmental Accounting Standards Board rules and must be invested in accordance with the laws of Texas. Short term borrowing from the cash reserve fund shall be for a period of no more than one calendar year and must be approved by the Council. Annual income from the cash reserve fund may be used only for capital improvements. "Capital improvements" shall be construed to include acquisition, construction, reconstruction, or improvement of facilities, equipment, or land for use by the City and all expense incidental thereto.

El Paso City Charter, art. VII, § 7.5 MONEY TO BE DRAWN FROM TREASURY IN ACCORDANCE WITH APPROPRIATIONS.

Section 7.5 - MONEY TO BE DRAWN FROM TREASURY IN ACCORDANCE WITH APPROPRIATIONS. No money shall be drawn from the treasury of the City, nor shall any obligation for the expenditure of money be incurred, except in pursuance of the annual appropriation resolution or any of its amendments. At the close of each fiscal year any unencumbered balance of an appropriation shall revert to the fund from which appropriated and shall be subject to reappropriation as provided by this Charter.

El Paso City Charter, art. VII, § 7.6 SALE OF CAPITAL ASSETS.

Section 7.6 - SALE OF CAPITAL ASSETS. The proceeds from the sale of capital assets may not be used for recurring operational expenses. These proceeds shall be invested in accordance with the laws of Texas, until used for the purchase of other capital assets or to retire bonded debt.

El Paso City Charter, art. VII, § 7.7 DEPOSITORIES.

Section 7.7 - DEPOSITORIES. All monies received by any person, in connection with the business of the City, shall be deposited. promptly in a City depository and, whenever possible, within one business day after its receipt. All City bank accounts shall be carried in the name of the City, with such additional designations as are required to distinguish accounts for special purposes. The City's investments shall be governed by a City Investment Policy which shall be adopted and reviewed as provided by state law, but in no event, shall the policy be adopted or reviewed by the Council less frequently than annually.

El Paso City Charter, art. VII, § 7.9 CITY PROPERTY.

Section 7.9 - CITY PROPERTY. City property of every nature, and its appurtenances, shall be exempt forever from City taxes, executions, attachments or forced sales.

El Paso City Charter, art. VII, § 7.10 ASSESSMENT OF PROPERTY TAXES.

Section 7.10 - ASSESSMENT OF PROPERTY TAXES. On January 1st of each year, or on any other date prescribed by the laws of Texas, each person, firm, business, partnership and corporation owning real or personal property in the City shall be subject to assessment for tax purposes, in accordance with the laws of Texas.

El Paso City Charter, art. VII, § 7.11 PROPERTY TAX PAYMENTS.

Section 7.11 - PROPERTY TAX PAYMENTS. All property taxes due the City shall be paid in legal tender at the office of the City Tax Collector or the designated depository. All taxes remaining unpaid after January 31st will be delinquent. The Council may, by ordinance, change the time and method of tax payments. The interest and penalty assessed on delinquent taxes shall accord with the laws of Texas.

El Paso City Charter, art. VII, § 7.12 LEVYING OF PROPERTY TAXES.

Section 7.12 - LEVYING OF PROPERTY TAXES. Annually, the Council shall levy by ordinance on all property subject to property taxation by the City, a property tax not to exceed one dollar and eighty-five cents on each one hundred dollars of assessed valuation. The maximum tax provided shall not apply to the taxes required to be levied to pay the interest and principal on general obligation bonds. The Council shall levy taxes to retire bonds authorized in accordance with the laws of Texas. No increase in the property tax rate shall be levied except by a majority of the entire Council at a regular meeting. Any levy of taxes to pay general obligation bonds shall not exceed the amount necessary to pay the interest and principal on such bonds.

El Paso City Charter, art. VII, § 7.13 LEVY, ASSESSMENT AND COLLECTION OF OTHER MUNICIPAL TAXES.

Section 7.13 - LEVY, ASSESSMENT AND COLLECTION OF OTHER MUNICIPAL TAXES. The Council shall have power by ordinance to levy and collect occupation, license, franchise, hotel-motel occupancy taxes and other taxes, in a manner not inconsistent with the laws of Texas. These taxes shall be collected by the Officer of the Comptroller or other designated officer, and shall be paid to that officer by each and every person or entity owing the tax.

El Paso City Charter, art. VII, § 7.14 HOTEL OCCUPANCY TAX.

Section 7.14 - HOTEL OCCUPANCY TAX. The City shall have the power to levy and collect a hotel-motel occupancy tax, as provided under the laws of Texas. When this tax is levied by the Council, the proceeds shall be used as follows: A. To the extent of the proceeds raised by a rate of one-half of one percent, to maintain, improve, administer and develop auditorium and convention center and related permanent improvements owned by the City; B. To the extent of the proceeds raised by a rate of two and one-half percent, to pay the principal of and interest on bonds issued by the City to construct that auditorium and convention center and related permanent improvements; C. To the extent of the proceeds raised by any additional rate, as may be established by the City Council, to fund any use authorized by the laws of Texas. Once the principal and interest on bonds issued pursuant to this section are paid, the Council then may levy and use the hotel-motel occupancy tax only as provided by the laws of Texas.

El Paso City Charter, art. VII, § 7.15 LIABILITY OF THE TAXPAYER.

Section 7.15 - LIABILITY OF THE TAXPAYER. A failure on the part of the City Tax Collector, or any other officer or employee who shall be designated by the Council, to prepare the delinquent tax roll or to mail tax statements, or a failure on the part of the City to file suits within the proper time for the collection of taxes when due, or any other omission, shall in no way affect the liability of the delinquent taxpayer. Neither shall it release the property upon which the tax is due from the operation of the lien, charge or encumbrance here created.

El Paso City Charter, art. VII, § 7.16 AUTHORIZATION TO ISSUE BONDS.

Section 7.16 - AUTHORIZATION TO ISSUE BONDS. All bonds issued by the City shall be authorized by ordinance. Where required by law, the bonds shall be approved by the Texas Attorney General and registered by the Texas Comptroller of Public Accounts before delivery to the purchaser.

El Paso City Charter, art. VII, § 7.17 GENERAL OBLIGATION BONDS.

Section 7.17 - GENERAL OBLIGATION BONDS. General obligation bonds may be issued for any lawful purpose in accordance with the laws of Texas and, where required by law, shall be issued only when authorized through a bond election. The total principal amount of such bonds together with the principal amount of all other outstanding tax indebtedness of the City shall not exceed ten percent of the total assessed valuation of the City's tax rolls.

El Paso City Charter, art. VII, § 7.19 DEBT SERVICE FUND.

Section 7.19 - DEBT SERVICE FUND. Debt service funds created for the retirement of bonds shall be deposited in separate accounts in the City depositories and shall not be used except to pay interest and principal on those bonds. These debts service funds may be invested as allowed by the laws of Texas.

El Paso City Charter, art. VII, § 7.20 DISBURSEMENT OF CITY FUNDS.

Section 7.20 - DISBURSEMENT OF CITY FUNDS. All disbursement of City funds shall be by check, electronic means, or as authorized by City ordinance.

El Paso City Charter, art. VII, § 7.21 INDEPENDENT AUDIT.

Section 7.21 - INDEPENDENT AUDIT. As soon as practicable after the close of each fiscal year, an independent audit, in accordance with specifications defined by ordinance, shall be made of all accounts of the City by a certified public accountant selected by a majority of the Council. The accountant(s) shall have no substantial financial interest in the affairs of the City. The complete audit report must be available for public examination.

El Paso City Charter, art. VII, § 7.22 PUBLISHING OF FINANCIAL POSITION OF THE CITY.

Section 7.22 - PUBLISHING OF FINANCIAL POSITION OF THE CITY. Within 120 days after the close of each fiscal year, the City shall publish in any contemporary means of information sharing including but not limited to publication in a newspaper of general circulation in the City or placement on the City's web site in the manner designated by the Council, a financial statement of the City prepared with generally accepted accounting principles for municipalities. This will be limited to balance sheets, statement of revenue and expenditures and changes in fund equities.

El Paso City Charter, art. VII, § 7.23 LEASE AND LEASE PURCHASE.

Section 7.23 - LEASE AND LEASE PURCHASE. The City may execute, perform, and make payments under a contract with any person for the use, purchase or other acquisition of any real or personal property, or the financing thereof, including a lease, a lease with an option or option to purchase, an installment purchase or other form considered appropriate by the Council.
Source: City of El Paso, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/el_paso/codes/code_of_ordinances?nodeId=CH_ARTVIIPUFIFetched: 10/28/2026

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