Page 154 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 Supplemental Information

Budget Concepts

Balanced Budget. The City shall prepare a budget for each fund and each program within the fund.
The budget should be balanced with current revenues equal to or greater than current expenditures.
In order to accomplish this aim emphasis will be placed first on encouraging increased productivity
and recovering costs through fees. Reserves above the required levels are available for one-time
expenditures. Non-essential services that cannot generate revenues to support some or all of
operations may be reduced or eliminated. Tax increases will be considered only in the event that
the above strategies fail to address essential service levels that cannot be reduced.

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.