Page 57 - CityofHaltomFY23Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2023 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, services charges and Municipal Court fines.
General Fund expenditures support the city’s police, fire, streets, building maintenance, fleet, parks
and recreation, library and administration.

CONCLUDING FISCAL YEAR 2022 FINANCIAL PERFORMANCE

Revenues in the General Fund are estimated to total $32.5 million, which is $560,260 more than
FY2022 adopted budget. The City collected more property tax due to higher taxable property value and
delinquent taxes. Sales Tax, License and Permits had significant increases.

Expenditures in the General Fund are estimated to be $34.3 million, which is $1,910.372 less than
FY2022 adopted budget. This amount included a total of over $1.3 million transferred to the Capital
Replacement Fund for replacement of vehicles and equipment, Debt Service Fund for economic
development debt and operating cost for economic development. 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 FY2022 of $19.1 million, which is $1.9 million
less than the beginning fund balance. Six million of the additional fund balance includes Certificate
of Obligation funds. The estimated fund balance reserve at the end of FY2022 is about 55% of the
expenditures.

FISCAL YEAR 2023 BUDGET GENERAL FUND REVENUES

General Fund revenues for fiscal year 2023 are expected to total $33.8 million, which represents
an increase of $1.4 million (4%) over FY2022. Revenues for FY2023 are budgeted conservatively.
Revenue increases are expected from property tax, sales tax, and licenses & permit fees. The
estimated taxable value increased to $3.1 billion over last year’s $2.5 billion. The total tax rate for
FY2023 was lowered $.037 to $0.608162 for every $100 taxable value.

Expenditures for fiscal year 2023 are projected to be $39.8 million, an increase of $5.4 million over
the FY2022 budgeted numbers. The increase is due to a new ladder truck for fire department, new
gradall and skid steer loader for streets division, computer desktop replacements, city website rehab,
salary increases, and four new positions.

Fund Balance - After expenditures and transfers to other funds, the projected ending fund balance at
year-end 2023 is $13 million, which is $4 million more than what was budgeted in 2022. The ending
fund balance represents about 33% of expenditures and is over the 20% reserve requirement governed
by the City’s financial policies.