Common use of Funding Obligations Clause in Contracts

Funding Obligations. The CITY presently intends to continue this AGREEMENT each fiscal year through its term, to pay all payments due, and to fully and promptly perform all of the obligations of the CITY under this AGREEMENT. All obligations of the CITY shall be paid only out of current revenues or any other funds lawfully available therefore and appropriated for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. In the event that the City of Austin cannot meet its funding obligations, as provided in the State Constitution, this entire AGREEMENT becomes null and void. In the event of any change in state law that modifies the City’s budgetary and revenue authority, such that the City’s anticipated revenues are impaired, the City Council shall have the authority to make proportionate adjustments to any additional costs in the relevant fiscal year of this AGREEMENT, after a full opportunity for the ASSOCIATION to address that action in a posted public meeting. Before making any such adjustments the City will meet and confer in good faith with the ASSOCIATION for a period of at least thirty (30) calendar days concerning the manner in which such proportionate adjustments are to be effected. For the purposes of this Article, proportionate adjustments shall be in relation to the total reduction in tax rate availability from the immediately prior fiscal year. (For example, if there is a scheduled base wage increase of 1% and the legislature reduces the City’s revenue authority from 8% to 6% through a legislative tax cap, the effect on the base wage increase for the relevant year could be a decrease of up to 2%, resulting in a 0.98% increase for that year).