Page 12 - Haltom City FY19 Annual Budget

taxable value may be necessary once the total bond issuance was complete. The
FY2019 Debt Service Fund is set at $0.23, which will provide about $5 million of debt
service payments.

Sales Tax – Sales tax is the largest revenue source for the City, with over $14.7 million
estimated for FY2019. For FY2019, the allocation will be 1.375% for General Fund, 0.0%
for Economic Development Corporation, 0.375% for Streets, and 0.25% for Crime Control
and Prevention District. Since there will be no direct funding from sales tax for the
Economic Development Corporation, transfers from General Fund to the Economic
Development Corporation will be needed for current operations and debt service.

Infrastructure Maintenance – One long-term concern has been providing enough
funding each year to maintain the City’s existing and aging infrastructure – primarily
streets. Many Cities are facing challenges with aging infrastructure and will be forced to
absorb large reconstruction costs in the future if annual maintenance is not sufficient in
the years following original road construction. The City Council allocated 3/8 of a cent of
sales tax for streets since FY2017. The total revenues from Sales Tax dedicated to the
Street Reconstruction Fund for FY2019 are in excess of $2.7 million.

Capital Improvement Program – The long-term Capital Improvement Programs are
construction projects that reflect prioritization regarding the scheduling of projects, the
related cost of the projects, and the funding of the projects. The Capital Improvement
Program also addresses two of the Council’s Long-term Strategic Goals: transportation
and updating municipal facilities. Capital projects for FY2019 are as follows:

Vehicles / Water &
Fund Equipment Streets Fire Station Parks Sewer Drainage Total
Street Reconstruction 8,083,500 8,083,500
Capital Improvements 5,500,000 2,875,000 8,375,000
Equipment Replacement 573,000 573,000
Water & Sewer Projects 4,799,500 4,799,500
Water & Sewer Impact Fees 250,000 250,000
Drainage Capital Projects 1,045,000 1,045,000
Total $573,000 $8,083,500 $5,500,000 $2,875,000 $5,049,500 $1,045,000 $23,126,000

Water and Sewer Rates – With the increase in fees from the City of Fort Worth and an
increase in operation costs, it is necessary to raise the water and sewer rates. For
FY2019, the water rate will increase by 4.5%--and the sewer and sewer surcharge rates
will increase by 13.5%. These increases will cost an average residential customer with a
consumption of 5000 gallons an additional $7.92 per month.

Economic Development – Three major economic development projects for the City are
the North East Loop 820 Corridor, the Belknap Corridor and Overall Community

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