Page 155 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 Supplemental Information

Budget Assumptions and Short-Term Polices

The objective of this budget is to preserve current service levels while seeking opportunities to
expand self-sustaining services and pursuing economic development possibilities. Other significant
assumptions include:

• Modest property value growth. This is reflected in the average growth in assessed property
values according to the appraised value by Tarrant County Appraisal District. There has
been little population growth in the City since 2000 and new home development has been
modest at best.

• Sales Tax. It can be expected that sales tax collections will be moderate to above average
for the next year and return to historical growth rates thereafter.
• Utilities. Growth in revenues from utility operations will come primarily from increased rates.
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.