Page 116 - Pantego FY22 Operating Budget

2. NON-RECURRING REVENUES. One-time or non-recurring revenues will not be
used to finance current ongoing operations. Non-recurring revenues should be used
only for one-time expenditures such as long-lived capital needs.

3. PROPERTY TAX REVENUES. All real and business personal property located
within the Town shall be valued at 100% of the fair market value for any given year
based on the current appraisal supplied to the Town by Tarrant County Appraisal
District. Total taxable valuation will be reappraised and reassessed in accordance
with State statute, 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 Town's appointed tax
assessor/collector. Tax accounts delinquent July 1st shall be submitted for collection
each year to an attorney selected by the Town 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 Town. Annual
performance criteria will be developed for the attorney.

4. SALES AND USE TAX REVENUE. The State Comptroller Office collects,
administers and disburses this revenue each month. The Texas sales and use tax
rate is 6.25%, but local taxing jurisdictions may also impose a sales and use tax up
to 2% for a total maximum combined rate of 8.25%.

The Town, through the Pantego Economic Development Corporation, will encourage
and participate in economic development efforts to expand the Town’s economy, to
increase local employment and to invest in the community when there is a defined
specific long-term return.

5. INTEREST INCOME. Interest earned from investment of available funds, 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 funds were provided to be invested.

6. 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 Town Council approval.

7. UTILITY RATES. The Town will review and/or adopt utility rates annually that will
generate revenues required to fully cover operating expenditures, meet the legal
restrictions of all applicable bond covenants (when applicable), and provide for an
adequate level of working capital. 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:

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