Page 138 - Haltom City FY20 Approved Budget

City of Haltom City Annual Budget, FY 2020
Supplemental Information

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 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.

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