Texas Government Code 1507.254 – Limitation On Amount of Warrants and Notes Issued
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(a) The governing body may not issue warrants or notes under this subchapter in an amount exceeding 80 percent of the difference between:
(1) the estimated revenue of the municipality for the fiscal year; and
(2) the sum of:
(A) the interest on the bonded indebtedness of the municipality to be paid from that revenue; and
(B) any amount that the municipality is required to pay from that revenue into a sinking fund, special fund, or special trust fund of the municipality.
(b) The limitation prescribed by Subsection (a) does not apply to warrants or notes issued for refunding purposes.
Terms Used In Texas Government Code 1507.254
- 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
(c) The aggregate principal amount of warrants or notes issued under this subchapter and outstanding at any time in a fiscal year may not exceed the greatest amount by which the proposed expenditures for the fiscal year are estimated by the governing body to exceed the estimated revenue available for payment of warrants and notes during the fiscal year, as computed under Subsection (a).