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ORDINANCE NO. 40-24                                                            PAGE 2

               appropriation in the General Fund of $9,551,487 (i.e., 10 percent of total expenditures) to be
               used in the event of unforeseen items of expenditure.  Such contingent appropriations shall be
               under the  control  of  the  Town Manager  and  distributed  by  him,  after  approval of  the  Town
               Council.

                                                        SECTION 3

                       No  expenditure  of  the  funds  of  the  Town  shall  hereafter  be  made  except  in  strict
               compliance with said budget, except that in the case of public necessity, the Town Council shall
               authorize  amendments  to  said  budget  such  emergency  expenditures  to  meet  unusual  and
               unforeseen conditions which could not, by reasonably diligent thought and attention, have been
               included in the original budget.

                                                        SECTION 4

                       The Town Manager shall file or cause to be filed three (3) true and correct copies of said
               approved budget, along with this Ordinance, with the Town Secretary, who shall file or cause to
               be  filed  one  (1)  true  and correct  copy  of  same  in  the  office  of  the  County  Clerk  of  Denton
               County, Texas and one (1) true and correct copy of same in the office of the County Clerk of
               Tarrant County, Texas.

                                                        SECTION 5

                       Any and all ordinances, resolutions, rules, regulations, policies, or provisions in conflict
               with the provisions of this Ordinance are hereby repealed and rescinded to the extent of any
               conflict herewith.

                                                        SECTION 6

                       If  any  section,  paragraph,  sentence,  clause,  phrase,  or  word  in  this  Ordinance,  or
               application thereof by any persons or circumstances is held invalid in any Court of competent
               jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance;
               and the Town Council hereby declares  it  would  have  passed such  remaining portions of the
               ordinance despite such invalidity, which remaining portions shall remain in full force and effect.

                                                        SECTION 7

                       The necessity of adopting and approving a budget for the next fiscal year as required by
               the laws of the State of Texas requires that this Ordinance shall take effect immediately from
               and after its passage.
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