Page 150 - Haltom City Budget FY21

CITY OF HALTOM CITY aNNUAL BUDGET, FY2021 SUPPLEMENTAL INFORMATION

Planning. The City shall prepare a proposed itemized budget for each operational fund annually.
For each operating fund, the annual budget will be a component of a five-year 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.

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