Page 151 - Haltom City FY19 Annual Budget

procedures that balance current expenditures at the expense of meeting future years’ expenses,
such as postponing expenditures or accruing future year’s revenues. Fund balances in excess
of policy minimums may be used for capital outlays or one-time expenditures.

Debt or bond financing will not be used to finance current expenditures. Budgets for the use of
bond proceeds will be developed in accordance with the use of proceeds covenant in the bond
ordinance.

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.

Budget Assumptions and Short-Term Polices

The objective of this budget is to preserve current service levels while seeking opportunities to
expand self-sustaining services and pursuing economic development possibilities. Other
significant assumptions include:

• Modest property value growth. This is reflected in the average growth in assessed
property values according to the appraised value by Tarrant County Appraisal District.
There has been little population growth in the City since 2000 and new home development
has been modest at best.
• Sales Tax. It can be expected that sales tax collections will be moderate to above
average for the next year and return to historical growth rates thereafter.
• Utilities. Growth in revenues from utility operations will come primarily from increased
rates. Expense growth must be restrained as the City seeks to maintain a competitive
position in Northeast Tarrant County. Cost increases from Fort Worth Water will continue
to be passed directly through to the customers.
• Realistic projections of revenues and expenditures. Conservative projections help ensure
that adequate resources will always be available to meet budgeted obligations.
Projections are based upon the last five years of actual history adjusted for known current
events and statutory changes.
• Annual Review of all significant fees. Fees are reviewed annually and adjusted as
needed. Frequent but moderate increases are preferable to infrequent but large rate
increases.
• Maintain or enhance target fund balances. This strategy is essential to the preservation
of financial integrity. Funds targeted with 20% reserves are the General Fund, Water and
Sewer Fund and Drainage Fund.
• Salary Adjustments. Annual salary adjustments will be made for all employees when
resources are available to retain and motive employees. Market study will be conducted
periodically, and salary schedule will be revised accordingly.

Fund Balance/Operating Position Concepts

Required Reserves. The City will maintain an unallocated fund balance (cash and investments)
to be used for unanticipated emergencies of at least 20 percent of the expenditure budgets of
the major operating funds (General, Water & Sewer, Drainage Funds). These monies will be
used to avoid cash-flow interruptions, generate interest income, reduce the need for short-term
borrowing and assist in maintaining an investment-grade bond rating. All other funds are

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