An annual operating budget shall be prepared according to generally accepted accounting principles for approval by the Board of Directors. The budget shall contain estimated revenues and balances available to cover the proposed budget and the estimated tax rate.

A public hearing on the annual budget shall be held by the Board of Directors after notice of such hearing has been published at least ten (10) days before the date set therefore. Notice of the budget hearing shall be published in a newspaper of general circulation in the Hospital District. Any resident of the district shall have the right to be present and participate in said hearing.