Knowledgebase-An Ordinance Adopting the Annual Budget and Tax Rate


Information Product

Title:An Ordinance Adopting the Annual Budget and Tax Rate
Summary:MTAS was asked to write an ordinance for adopting a municipal budget and levying a property tax.
Original Author:Darden, Ron
Co-Author:
Product Create Date:10/04/2002
Last Reviewed on::09/27/2010
Subject:Budgets--Municipal; Taxes--Personal property; Municipal ordinances
Type:Ordinance
Original Document: Budget Ordinance.pdf

Reference Documents:

Text of Document:
ORDINANCE NO. _______

AN ORDINANCE OF THE CITY OF _______________, TENNESSEE
ADOPTING THE ANNUAL BUDGET AND TAX RATE FOR THE FISCAL YEAR BEGINNING JULY 1, 20XX AND ENDING JUNE 30, 20XY
WHEREAS, Tennessee Code Annotated Title 9 Chapter 1 Section 116 requires that all funds of the State of Tennessee and all its political subdivisions shall first be appropriated before being expended and that only funds that are available shall be appropriated; and

WHEREAS, the Municipal Budget Law of 1982 requires that the governing body of each municipality adopt and operate under an annual budget ordinance presenting a financial plan with at least the information required by that state statute, that no municipality may expend any moneys regardless of the source except in accordance with a budget ordinance and that the governing body shall not make any appropriation in excess of estimated available funds; and

WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget.

NOW THEREFORE BE IT ORDAINED BY THE CITY OF ___________________, TENNESSEE AS FOLLOWS:

SECTION 1: That the governing body estimates anticipated revenues of the municipality from all sources to be as follows:

General Fund
FY 20XW
Actual
FY 20XX
Estimated
FY 20XY
Proposed
Local Taxes
Intergovernmental Revenue
Fines and Forfeitures
Miscellaneous Revenue

Fund Balance
Total Available Funds
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________

$________
$________



State Street Aid Fund
FY 20XW
Actual
FY 20XX
Estimated
FY 20XY
Proposed
Intergovernmental Revenue
Miscellaneous Revenue

Fund Balance
Total Available Funds
$________
$________
$________
$________
$________
$________

$________
$________


Drug Fund
FY 20XW
Actual
FY 20XX
Estimated
FY 20XY
Proposed
Court Fines and Costs

Fund Balance
Total Available Funds
$________
$________
$________

$________
$________



SECTION 2: That the governing body appropriates from these anticipated revenues and unexpended and unencumbered funds as follows:

General Fund
FY 20XW
Actual
FY 20XX
Estimated
FY 20XY
Proposed
General Government
Public Safety
Public Works
Parks and Recreation
Debt Service

Total Appropriations
$________
$________
$________
$________
$________

$________
$________
$________
$________
$________
$________

$________
$________
$________
$________
$________
$________

$________


State Street Aid Fund
FY 20XW
Actual
FY 20XX
Estimated
FY 20XY
Proposed
Streets

Total Appropriations
$________

$________
$________

$________
$________

$________




Drug Fund
FY 20XW
Actual
FY 20XX
Estimated
FY 20XY
Proposed
Police

Total Appropriations
$________

$________
$________

$________
$________

$________



SECTION 3: At the end of the current fiscal year the governing body estimates balances/(deficits) as follows:

General Fund $____________
State Street Aid Fund $____________
Drug Fund $____________

SECTION 4: That the governing body recognizes that the municipality has bonded and other indebtedness as follows:

Bonded or Other Indebtedness
Debt Redemption
Interest Requirements
Debt Authorized and Unissued
Condition of Sinking Fund
Bonds
Notes
Capital Leases
Other Debt
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________
$________



SECTION 5: During the coming fiscal year the governing body has planned capital projects and proposed funding as follows:

Proposed Capital Projects
Proposed Amount Financed by Appropriations
Proposed Amount Financed by Debt





SECTION 6: No appropriation listed above may be exceeded without an amendment of the budget ordinance as required by the Municipal Budget Law of 1982 T.C.A. Section 6-56-208. In addition, no appropriation may be made in excess of available funds except to provide for an actual emergency threatening the health, property or lives of the inhabitants of the municipality and declared by a two-thirds (2/3) vote of at least a quorum of the governing body in accord with Section 6-56-205 of the Tennessee Code Annotated.

SECTION 7: Money may be transferred from one appropriation to another in the same fund only by appropriate ordinance by the governing body, subject to such limitations and procedures as it may describe as allowed by Section 6-56-209 of the Tennessee Code Annotated. Any resulting transfers shall be reported to the governing body at its next regular meeting and entered into the minutes.

SECTION 8: A detailed financial plan will be attached to this budget and become part of this budget ordinance. In addition, the published operating budget and budgetary comparisons shown by fund with beginning and ending fund balances and the number of full time equivalent employees required by Section 6-56-206, Tennessee Code Annotated will be attached.

SECTION 9: If for any reason a budget ordinance is not adopted prior to the beginning of the next fiscal year, the appropriations in this budget ordinance shall become the appropriations for the next fiscal year until the adoption of the new budget ordinance in accordance with Section 6-56-210, Tennessee Code Annotated provided sufficient revenues are being collected to support the continuing appropriations. Approval of the Director of the Division of Local Finance in the Comptroller of the Treasury for a continuation budget will be requested if any indebtedness is outstanding.

SECTION 10: There is hereby levied a property tax of $ ______ per $100 of assessed value on all real and personal property.

SECTION 11: All unencumbered balances of appropriations remaining at the end of the fiscal year shall lapse and revert to the respective fund balances.

SECTION 12: This ordinance shall take effect July 1, 20XX, the public welfare requiring it.


Please remember that this ordinance was drafted based upon the drafting requirements and authority granted to a particular city or town in its charter and in general law. These drafting requirements and the authority exercised in this ordinance might not apply to your city or town.

Please confer with your city attorney or an MTAS legal consultant, or both, before using this ordinance as a model.