Page 150 - Haltom City FY19 Annual Budget

only with City Council consent, after a public hearing held in accordance with the City Charter
and applicable State law.

Performance Measures. Performance measures and productivity indicators shall be used as
expenditure guidelines. The measures will be illustrative of departmental and organizational
goals. These measures will be reviewed annually for efficiency and effectiveness. This
information shall be included in the annual budgeting process and in the approved budget
document. Further, performance and productivity data will be reported to the City Council
periodically throughout the fiscal year.

Purchasing. Purchases over $50,000 shall conform to a formal bidding process as defined by
the laws of the State of Texas and ordinances of the City of Haltom City. Recommendation of
bids shall be made to the City Council for approval. Historically underutilized businesses (HUB’s)
will be sought for proposals on any purchases of $3,000 or greater.

Procedures shall be taken so as to maximize any discounts offered by creditors. Current
liabilities shall be paid within 30 days of receiving the invoice in accordance with applicable
Texas law. Accounts Receivable procedures shall target collection within 30 days from date of
service.

Budget Concepts

Balanced Budget. The City shall prepare a budget for each fund and each program within the
fund. The budget should be balanced with current revenues equal to or greater than current
expenditures. In order to accomplish this aim emphasis will be placed first on encouraging
increased productivity and recovering costs through fees. Reserves above the required levels
are available for one-time expenditures. Non-essential services that cannot generate revenues
to support some or all of operations may be reduced or eliminated. Tax increases will be
considered only in the event that the above strategies fail to address essential service levels that
cannot be reduced.

Planning. The City shall prepare a proposed itemized budget for each operational fund annually.
For each operating fund, the annual budget will be a component of a five-year financial plan.
The budget process will be performance-based and focused on goals, objectives and
performance indicators.

Revenue Projection. Projections of revenues will be realistic and based upon historical trends
coupled with current economic conditions. Current operating revenue, coupled with available
resources, will be sufficient to support current operating expenditures.

Revenues are projected for the current fiscal year, proposed fiscal year and not less than four
succeeding years. The estimates for outlying years are reviewed annually and revised as
needed.

Expenditures/Expenses. Increases in proposed spending must be supported with new revenues
or offset with expenditure savings. All new spending will be analyzed for its impact upon the
five-year financial plan. The budget will provide adequate funding for maintenance and
replacement of capital plant and equipment.

The City will pay for all current expenditures with current revenues. The City will avoid budgetary

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