(a)

(1) In order for the fiscal affairs of a local government to be maintained on a cash basis, after the issuance of any debt as provided by this chapter, and in order that the current receipts of such local government shall be sufficient to meet current expenditures, an annual budget shall be required of the local government by the comptroller of the treasury or the comptroller's designee. The annual budget shall be prepared in a form consistent with accepted governmental standards and as approved by the comptroller of the treasury or the comptroller's designee.

(2)

(A) Notwithstanding subdivision (a)(1), the comptroller of the treasury may authorize a municipality to submit a biennial budget if the comptroller of the treasury or the comptroller's designee determines that the municipality operates with sufficient financial resources to more than adequately service its issued debt. In such case, the comptroller of the treasury or the comptroller's designee may approve the municipality for a biennial budget as authorized by § 4-3-305.

(B) The comptroller of the treasury or the comptroller's designee may revoke the authority of a municipality to submit a biennial budget in its discretion at any time and for any reason. If a municipality utilizes short-term financing to meet operating expenses, then the authority to submit a biennial budget shall be automatically revoked.

(C) A municipality that operates under a biennial budget shall submit any budget amendments adopted by the municipality and such reports as may be required to the comptroller of the treasury or the comptroller's designee.

(3) As used in subdivision (a)(2), “biennial budget” means the adoption of two (2) annual budgets every two (2) years.

(b) After receiving the annual budget estimate, the governing body shall prepare an appropriation resolution, using the budget estimate as a basis, but appropriating such sums as the governing body may deem proper for current operating expenses, whether greater or less than the budget estimate set forth. However, no appropriation recommended by the budget estimate for interest on the indebtedness of the local government for sinking funds and for principal of debt maturing during the fiscal year shall be reduced by the governing body. The taxes levied for such appropriation may be over and above all other taxes authorized or limited by law. Immediately after the passage of the appropriation resolution, the governing body shall pass a resolution levying upon all property subject to taxation, a tax rate sufficient to produce the sum necessary to balance the budget upon a cash basis.

(c) The comptroller of the treasury or the comptroller's designee shall require any periodic information from a local government which has issued debt under this chapter or under prior authorizing statutes and make such audits as the comptroller of the treasury or the comptroller's designee may deem necessary, to the end that it may be ascertained that the budget is kept balanced during the life of the debt. The annual budget of each local government with debt outstanding shall be submitted to the comptroller of the treasury or the comptroller's designee immediately upon its adoption. The comptroller of the treasury or the comptroller's designee must thereupon determine whether or not the budget will be in balance in accordance with this chapter. If the budget does not comply with this chapter, then the comptroller of the treasury or the comptroller's designee shall have the power and the authority to direct the governing body of the local government to adjust its estimates or to make additional tax levies sufficient to comply with this chapter. Any budget adopted by the governing body of a local government which had debt outstanding at the beginning of the fiscal year which was issued under this chapter or under prior statutes shall not become the official budget for the fiscal year until such budget is approved by the comptroller of the treasury or the comptroller's designee. The comptroller of the treasury or the comptroller's designee shall approve the budget only when the comptroller of the treasury or the comptroller's designee is satisfied that it complies with this chapter.