Page 15 - Haltom City FY 22 Budget

Goal 2: Compensation - The City had not implemented a market adjustment for the employees since 2014
and the majority of that was for public safety. We are in a very competitive market, and we had fallen too
far behind other cities. Additionally, if we fall too far behind it becomes almost impossible and too costly
to catch up. We all understand that it cost more to hire and train new employees than it does to retain
well-trained quality employees. When we become the training ground for others, there is loss in efficiency
and effectiveness in providing quality services. Our employees and our citizens deserve the benefits of
adequately compensated work teams. The new compensation adjustment also addresses areas where
compression has become a problem among the ranks.

I know this Council has impressed upon me their desire for this City not to become the training grounds
for surrounding cities. Employee retention and attracting qualified talent is a high priority for each of you
that serve on the City Council. It also addresses one of the Strategic Goals set at our Strategic Planning
Meeting.

For the FY 2021-2022 budget, there is an approved salary adjustment for all employees as follows:

• All non-sworn employees qualify for a market adjustment.
• Positions significantly below market will be adjusted to the proper rate.

• Compression issues among the sworn employee ranks will be adjusted.

• All sworn employees will receive at least a 2.5% market increase.
• Sworn employees step plan will move to an 8-year in grade top out.

Goal 3: Fiscal Responsibility – In FY 2001-2002, the City Council adopted a Fund Balance Policy like many
other cities, to achieve and maintain a 20% minimum fund balance. For FY 2021-2022, the fund balance
reserves for General Fund are projected to be 26%, Water and Sewer Fund 27%, and Drainage Fund is
projected to be 20%. Capital Projects are directly tied to fund balances since money is transferred from
the core funds to cover the costs of maintaining and updating the City’s infrastructure. The challenge
moving forward is to protect these balances while making plans to replenish all required fund reserve
balances to a minimum of 20%.

Goal 4: Performance Measurement/Management - Measurement and reporting are critical to evaluate
progress, effectiveness, determine accountability, and guide future planning and operations. Therefore,
we constantly measure our efforts to the Council’s long-term strategic goals and communicate the
objectives and outcomes per departments.

Goal 5 & 6: Municipal Infrastructures and Equipment - One long-term focus has been providing enough
funding each year to maintain the City’s existing infrastructure like streets, for example. Our community
continues to face challenges with aging infrastructure and will be forced to absorb large reconstruction
costs in the future if annual maintenance is not sufficiently funded. Revenues of a 3/8 cent sales tax
provides funding for street repairs. The City Council also approved a Certificate of Obligation debt in
2020-2021 for additional street infrastructure repairs. Other infrastructure priorities that will carry over
from the current budget year into subsequent budget year(s) include the completion of replacement Fire
Station #3, remodel of the Civic Center to move and house the new Senior Center, and the progression of
constructing the new Haltom City Law Enforcement Center.

Equipment decision packages have been approved to replace equipment such as dump trucks, backhoes, pump
replacements, etc. Much of this equipment is twenty plus years old and is simply worn out. The Water and Sewer
department is funded by water and sewer rates and not by the General Fund. The Water and Sewer Rate Study
has been a project over the last two years in which new rate structure options have been presented. The new
rate structure will be more in line with industry standards and billing methods. The study also gave us a 5-year
outlook so we can plan revenue requirements to support operations and future Capital Improvement Projects.