Page 165 - CityofHaltomFY23Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2023 Supplemental Information

Debt capacity has been structured in previous years so it can be accomplished without an increase
in the I&S portion of the property tax. Fortunately, the new commercial and residential growth has
been an effective way to expand the overall values to broaden the tax base and lessen the burden
on citizens. Because of the increases in values, the City was able to lower its property tax rate to
its lowest in over thirteen years. The property tax rate was lowered almost four cents from the
previous year and almost six cents total in the last two budget years. Building the tax base is the
most effective way of accomplishing this. Not only do we strive to build the tax base, but we also
want to build our reserve balances. Our multi-year financial plan reflects these goals.

Building the reserve will only benefit the city in future years by preparing city staff to continue
to offer quality services and maintain staffing during economic down-turns. As unexpected as
the Covid-19 pandemic that caused a shut-down of many non-essential businesses during the
2020 fiscal year, having a healthy reserve balance will help weather a fiscal storm. The city has
effectively continued to build the fund balance in each fund to prepare for any future downturn in
the economy. Expenses will always be adjusted as necessary in relation to revenue forecasts.

Healthy fund balances will help fund all necessary expenses even if revenues decline.

MULTI-YEAR FINANCIAL OUTLOOK
GENERAL FUND
Budgeted Projected Projected Projected Projected
2023 2024 2025 2026 2027
REVENUES
Property Taxes $11,805,499 $12,749,938 $13,769,933 $14,871,528 $16,061,250
Sales & Other Taxes 12,794,100 14,073,510 15,340,126 17,027,540 18,049,192
Franchise Fees 3,486,220 3,621,325 3,654,221 3,796,123 3,796,123
Licenses & Permits 1,282,450 1,023,422 1,066,211 1,076,873 1,087,642
Charges For Services 1,608,546 1,758,358 1,775,941 1,793,701 1,811,638
Fines and Fees 734,620 741,966 749,386 756,880 764,449
Other Revenues 591,269 594,225 597,196 600,182 603,183
Transfers 1,519,000 1,543,000 1,543,000 1,543,000 1,543,000
Total Revenues $33,821,704 $36,105,745 $38,496,015 $41,465,827 $43,716,477
Percent increase/(decrease) from previous year 4.2% 6.8% 6.6% 7.7% 5.4%

EXPENDITURES $39,823,837 $37,512,545 $39,388,172 $41,357,581 $43,425,460
Percent increase/(decrease) from previous year 16.0% -5.8% 5.0% 5.0% 5.0%
Revenues Over/(Under) Expenditures (6,002,133) (1,406,800) (892,157) 108,247 291,018

ENDING FUND BALANCE $13,258,778 $11,851,978 $10,959,821 $11,068,067 $11,359,085

Fund Balance Target (20% Expenditures) $7,964,767 $7,502,509 $7,877,634 $8,271,516 $8,685,092

Percent of current year Expenditures 33% 32% 28% 27% 26%