Page 57 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 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, Municipal Court fines and fees. General Fund expenditures
support the city’s police, fire, streets, building maintenance, fleet maintenance , parks and recreation,
library and administration.

CONCLUDING FISCAL YEAR 2021 FINANCIAL PERFORMANCE

Revenues in the General Fund are estimated to total $30.7 million, which is $259,470 more than
FY2020. The City collected more property tax due to higher taxable property value and delinquent
taxes. Sales Tax had a slight increase Licenses & Permits remained almost the same as last year in
which we doubled the revenue due to the rapid growth of new construction.

Expenditures in the General Fund are estimated to be $31.7 million, which is about $1,231,848 more
than FY2020 when all unnecessary spending was frozen. This amount included a total of over $2.7
million transferred to the Capital Replacement Fund for replacement of vehicles and equipment, debt
services fund for Economic Development debt. 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 FY2021 of $13.5 million, which is $972,378 less
than the beginning fund balance. The estimated fund balance reserve at the end of FY2021 is about
42% of the expenditures.

FISCAL YEAR 2022 BUDGET

General Fund Revenues For fiscal year 2022 revenues are expected to total $31.9 million, which
represents an increase of $1.4 million (4.7%) over FY2021. Revenues for FY2022 are budgeted
conservatively. Revenue increases are expected from property tax and sales tax. Decreases in revenues
are anticipated from Licenses & Permit fees. The estimated taxable value increased to $2.5 billion. The
total tax rate for FY2022 was lowered over $.02 to $0.64565 for every $100 taxable value.

Expenditures for fiscal year 2022 are projected to be $36.2 million, an increase of $5.2 million over the
FY2021 budgeted numbers. The increase is due to conservative operational budgets in previous years
in which no decision packages were added. A market study was conducted and salaries were adjusted
by $1.4 million total as a decision package request. No new positions were added.

Fund Balance - After expenditures and transfers to other funds, the projected ending fund balance at
year-end 2022 is $9.2 million, which is $4.7 million less than what was budgeted in 2021. The ending
fund balance represents about 25% of expenditures and is over the 20% reserve requirement governed
by the City’s financial policies.