Page 47 - Haltom City FY20 Approved Budget

City of Haltom City Annual Budget, FY 2020
General Fund

GENERAL FUND DESCRIPTION

FUND SUMMARY

The General Fund is used to account for all revenues and expenditures not designated in other funds.
It receives a greater variety and amount of revenues as well as finances a wide range of governmental
activities than any other fund. The General Fund is supported by property taxes, sales & use taxes,
franchise fees, license and permit fees, charges and Municipal Court fines. General Fund
expenditures support the city's police, fire, streets, building maintenance, fleet, parks and recreation,
library and administration.

CONCLUDING FISCAL YEAR 2019 FINANCIAL PERFORMANCE

Revenues in the General Fund are estimated to total $30.2 million, which is $0.5 million 1% more than
FY2018. The City collected more property tax due to higher taxable property value. Sales Tax slightly
increased by about 1% as. On the other hand, Fine and Fees declined by more than $0.33 million
(24.2%) with low activities in citations and state law ban the use of red-light cameras.

Expenditures in the General Fund are estimated to be $30.4 million, which is about $2.8 million or
10.5% higher than FY2018. This amount included a total of over $1.8 million transfer to the Capital
Replacement Fund for replacement of vehicles and equipment, debt services fund for Economic
Development debt and operating cost for Economic Development.

Fund Balance - the difference in revenues and expenditures, combined with a beginning fund balance,
contribute to an estimated ending fund balance for FY2019 of $8.4 million, which is $0.2 million less
than the beginning fund balance. The fund balance reserve is about 27% of the expenditures.

FISCAL YEAR 2020 BUDGET

Revenues for fiscal year 2020 are expected to total $31.4 million, which represents an increase of

$1.2 million (4%) over FY2019. Revenues for FY2020 are budgeted conservatively. Revenue

increases are expected from property tax, sales tax, and transfers. Decrease in revenue

are anticipated from fines and other revenues. The estimated taxable value increased to

$2.1 billion. The total tax rate for FY2020 decreased to $0.66576 for every $100 taxable value.

Expenditures for fiscal year 2020 are projected to be $32.2 million, an increase of $1.7 million or 6%
over the FY2019 end-of-year estimate. The increase is primarily due to salary increase, added 6
new positions, equipment purchases and increase in operating costs.
Fund Balance - After expenditures and transfers to other funds, the projected ending fund balance is

at $7.4 million, which is $2.26 million (12%) less than FY2019. This decrease is due to smaller

increase in revenues and larger increase in expenditures. This represents structural imbalance and

corrective actions should be taken to maintain financial sustainability. The ending fund balance

represents about 22% of expenditures and is over the 20% reserve requirement governed by the
City's financial policies.
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