Page 139 - Haltom City FY20 Approved Budget

City of Haltom City Annual Budget, FY 2020
Supplemental Information

 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 motivate 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 expected to maintain positive fund
balances. Each fund may borrow internally from other City funds to provide cash flow
requirements. These loans will be on a short-term basis.

Use of Surplus. It is the intent of the City to use surpluses to accomplish three goals:
meeting reserve requirements, avoidance of tax or rate increases in ensuing years, and
avoidance of future debt.

Capital Planning Criteria

Multi-year Planning. The City will develop a multi-year plan for capital improvements and
update the plan annually. The City will enact an annual capital budget based on the multi-
year Capital Improvement Plan.

Capital Improvement Budget. The City will coordinate development of the capital
improvement budget with development of the operating budget. Future operating costs
associated with new capital improvements will be projected and included in operating
budget forecasts. The estimated costs and potential funding sources for each capital
project will be identified before the project is submitted to the City Council for approval.

Alternative Capital Financing. The City shall explore funding alternatives in addition to
long-term debt including leasing, grants and other aid, developer contributions, capital
recovery fees, and current funds.

Intergovernmental assistance will be used to finance only those capital improvements that

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