Page 62 - Burleson FY22 City Budget

3) PROPERTY TAX REVENUES. All real and business personal property located within the City shall be valued at
100% of the fair market value for any given year based on the current appraisal supplied to the City by the
Johnson County Appraisal District and Tarrant County Appraisal District. Total taxable valuation will be
reappraised and reassessed in accordance with State statute, in order to maintain current market values.

A 98% collection rate shall serve each year as a goal for tax collections. All taxes shall be aggressively pursued
each year by the City's appointed tax assessor/collector. Tax accounts delinquent July 1st shall be submitted for
collection each year to an attorney selected by the City Council. A penalty shall be assessed on all property taxes
delinquent in accordance with State law and shall include all court costs, as well as an amount for compensation
of the attorney as permitted by State law and in accordance with the attorney's contract with the City. Annual
performance criteria will be developed for the attorney.

4) INTEREST INCOME. Interest earned from investment of available monies, whether pooled or not, will be distributed
to the funds in accordance with the operating and capital budgets which, wherever possible, will be in accordance
with the equity balance of the fund from which monies were provided to be invested.

5) USER-BASED FEES AND SERVICE CHARGES. For services associated with a user fee or charge, the direct and
indirect costs of that service will be offset by a fee where possible. There will be an annual review of fees and
charges to ensure that fees provide adequate coverage of costs of services. User charges may be classified as
"Full Cost Recovery", "Partial Cost Recovery," and "Minimal Cost Recovery," based upon City Council policy.

6) UTILITY RATES. The City will review and adopt utility rates annually that will generate revenues required to fully
cover operating expenditures, meet the legal restrictions of all applicable bond covenants, and provide for an
adequate level of working capital needs. This policy does not preclude drawing down cash balances to finance
current operations. However, it is best that any extra cash balance be used instead to finance capital projects.
Components of Utility Rates will include transfers to the General Fund as follows:

a. General and Administrative Charge. An administrative fee will be charged to the Utility Fund for services of
general overhead, such as administration, finance, personnel, data processing, and legal counsel. This fee will
be documented through a cost allocation procedure.

b. Franchise payment. A rate consistent with those charged to private utilities will be charged to the Utility Fund..
This rate may be either raised or lowered so as to be consistent with those of the private utilities.

c. Payment in lieu of Property Tax (PILOT). A fee will be charged to the Utility Fund to equate to property taxes
lost due to municipal ownership. Net book value will be used as a basis, barring absence of known market
value. The existing tax rate will be applied to this base to determine the PILOT charge.

7) REVENUE MONITORING. Revenues received will be regularly compared to budgeted revenues and significant
variances will be investigated. This process will be summarized in the appropriate budget report.

VI. EXPENDITURE CONTROL

A. APPROPRIATIONS. The level of budgetary control is at the Department level budget in the General and Enterprise
Funds, and at the fund level in all other funds. When budget adjustments among Departments and/or funds are
necessary, these must be approved by the City Council. Budget appropriation amendments at lower levels of control,
which is defined as transfers that increase budgetary fund balances, shall be made in accordance with the applicable
administrative procedures.

B. AMENDMENTS TO THE BUDGET. In accordance with the City Charter, all budget amendments shall be approved by
the Council.

C. CENTRAL CONTROL. No recognized or significant salary or capital budgetary savings in any Department shall be spent
by the Department Director without the prior authorization of the City Manager. However, Department Directors are
authorized to approve budgetary line items transfers in the same fund within their own assigned departments. The City

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