Page 10 - Haltom City FY20 Approved Budget

City of Haltom City Annual Budget, FY 2020 Introduction

Property Tax – One of the largest revenue sources for the City is the property tax. The
estimated net certified tax rolls amount to over $2.4 billion. Property tax revenue is
expected to be approximately $15.7 million—with $9.8 million for General Fund, and $5.9
million for Debt Service Fund. The proposed total property tax rate is $0.6657—with
$0.4137 for General Fund (M&O), and $0.2520 for Debt Service Fund (I&S). This
represents an increase of $0.0127 from the FY2019 rate of $0.65300.

In November 2010, the voters approved $21.2 million in capital projects with the clear
understanding that an increase of $.06 per $100 taxable value may be necessary once
the total bond issuance was complete. In November 2018, voters also approved $7.8
million for parks, streets, and a new fire station. The FY2020 Debt Service Fund is set at
$0.25, which will provide about $5.9 million of debt service payments.

Sales Tax – Sales tax is the largest revenue source for the City, with over $10.5 million
estimated for FY2020. For FY2020, the allocation will be 1.375% for General Fund,
0.375% for Streets, and 0.25% for Crime Control and Prevention District.

Reserves – In FY2002, the City Council adopted a Fund Balance Policy calling for Haltom
City to achieve and maintain a 20% minimum fund balance. This fund balance is based
on 20% of current year expenditures. For FY2020, the fund balance reserves for General
Fund, Water and Sewer Fund, and Drainage Funds were set at 22%, 27% and 12%
respectively. The challenge moving forward is to protect these balances while developing
plans to replenish the Drainage Fund reserve balance to a minimum of 20%. The
temporary draw down on the Drainage Fund balance is due to capital improvement
projects. The General Fund reserve balance is projected to be better than the previous
year with the increase of the property tax rate.

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