Page 151 - Haltom City Budget FY21

CITY OF HALTOM CITY aNNUAL BUDGET, FY2021 SUPPLEMENTAL INFORMATION

• 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.
• 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.

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