Page 57 - Haltom City Budget FY21

CITY OF HALTOM CITY aNNUAL BUDGET, FY2021 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 2020 FINANCIAL PERFORMANCE

Revenues in the General Fund are estimated to total $29.9 million, which is $76,050 more than
FY2019. The City collected more property tax due to higher taxable property value and delinquent
taxes. Sales Tax slightly decreased while Licenses & Permits was almost double what was budgeted
due to the rapid growth of new construction.

Expenditures in the General Fund are estimated to be $29.4 million, which is about $326,500 higher
than FY2019. This amount included a total of over $1.4 million transferred to the Capital Replacement
Fund for replacement of vehicles and equipment, debt services fund for Economic Development debt
and operating cost for Economic Development. The Economic Development Fund has been eliminated
and the expenses are now being reported within the General Fund since the dissolvement of the
Economic Development Board in July of 2020.

Fund Balance - the difference in revenues and expenditures, combined with a beginning fund balance,
contribute to an estimated ending fund balance for FY2020 of $9.3 million, which is $511,936 more than
the beginning fund balance. The estimated fund balance reserve at the end of FY2020 is about 31%
of the expenditures.

FISCAL YEAR 2021 BUDGET

General Fund Revenues for fiscal year 2021 are expected to total $30.5 million, which represents
a decrease of $907,973 (3%) under FY2020. Revenues for FY2021 are budgeted conservatively.
Revenue increases are expected from property tax and licenses & permits. Decreases in revenue are
anticipated from sales tax, charges for services, fines and fees, and transfers. The estimated taxable
value increased to $2.5 billion. The total tax rate for FY2021 stayed the same at $0.66576 for every
$100 taxable value.

Expenditures for fiscal year 2021 are projected to be $30.5 million, a decrease of $741,311or 3%
under the FY2020 budgeted numbers. The decrease is due to conservative operational budgets in each
department without any added decision packets. A salary increase of 3% was added for employees but
will not be implemented until the second quarter of the fiscal year. EDC expenses were also moved to
the General Fund

Fund Balance - After expenditures and transfers to other funds, the projected ending fund balance at
year-end 2021 is $9 million, which is $700,444 more than what was budgeted in 2020. The ending fund
balance represents about 29% of expenditures and is over the 20% reserve requirement governed by
the City’s financial policies.

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