Page 15 - CityofHaltomFY23Budget

understand that it cost more to hire and train new employees and believe retention is very important.
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. This year’s new compensation adjustment helps to ensure we remain competitive with not only
compensation but other retention tools such as alternative work schedules, relaxed dress code, and
increased paid holidays.

You have continued to make it clear to me that 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. Therefore, for the FY 2022-2023 budget, there is a salary
increase for all employees as the city competes with retaining employees as neighboring municipalities
continue to increase their pay scales. This compensation increase combats the phenomena that all the
surrounding cities are facing with the workforce not accepting many critical positions at the old rate of
pay.

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 2022-2023, the fund balance
reserves for General Fund are projected to be 33%, 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 maintain and replenish all fund reserve balances.

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.

Municipal Infrastructures and Equipment - One long-term focus has been providing enough funding
each year to maintain the City’s existing infrastructure – primarily streets. 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, and $10 million in 2022 for
additional street infrastructure repairs, and parks projects. The Voters and City Council also approved
the 2022 General Obligation Bond Debt of $25 million to construct a new City Hall Facility. Other
infrastructure priorities that will carry over from the current budget year into subsequent budget year(s)
include the planning and construction of the new Haltom City Law Enforcement Center.

Equipment decision packages would replace equipment such as dump trucks, backhoes, pump
replacements, etc. Much of this equipment is twenty plus years old and is simply worn out. Additionally,
we have been playing catch up the last two years as it relates to replacement equipment due to our
spending reduction related to the unknowns of COVID in the recent past budgets. The ARPA (American
Rescue Plan Act) funds have been key to helping us rebound from the COVID Pandemic.