(a) The governing body of a municipality may appropriate the net revenue from any municipal public utility system, service, or enterprise, in the amount that the governing body determines is in the best interest of the municipality, to:
(1) the credit of the sinking fund for any bonded debt incurred because of the utility system, service, or enterprise; or
(2) the payment of any interest on the bonded debt incurred because of that utility system, service, or enterprise.
(b) A governing body that makes an appropriation under Subsection (a) must make the appropriation:
(1) at the end of the municipality’s fiscal year; and
(2) before the governing body adopts a tax rate for that fiscal year.

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Terms Used In Texas Government Code 1501.051

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Year: means 12 consecutive months. See Texas Government Code 311.005
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