Page 13 - CityofHaltomFY24Budget

Each budget decision is in accordance with the City Council’s 2023-2024 Strategic Goals as follows: One of the major revenue sources of the budget is property taxes. The FY 2023-2024 adopted budget
was prepared using the adopted tax rate of $.567283 per $100 of net taxable value and an estimated Net
Ø Goal 1: Continue to Cultivate the Commercial and Residential Development Plan for a successful taxable value of $3,663,528,267.
Economic Development Environment and approval of the TIRZ 2 Zone.

Ø Goal 2: Establish and maintain Competitive Employee Compensation to Retain and Attract High
Quality and Diverse Staff while maintaining a Relationships-Driven Culture along with other incentives The overall tax rate is split into two parts, the maintenance and operating for normal operations and the
such as alternative work schedules, increased number of paid holidays, etc. interest and sinking for debt service. The rate for maintenance and operations is $.371831 per $100 of
net taxable value and debt service is $.195452 per $100 of net taxable value. The adopted property tax
Ø Goal 3: Promote and Support Safety and Security within Our Community while providing Quality rate will decrease nearly four cents per $100 from last year, accumulating to a drop of thirteen cents
Services and increase safety in and around our schools. per $100 since 2017. Continued economic growth with increased values will continue to broaden the tax
base. The increased value from new growth is expected to continue to decrease the city’s property tax
Ø Goal 4: Practice Fiscal Responsibility while Utilizing Performance Measures.
rate in future years.
Ø Goal 5: Build and Maintain Partnerships with Non-Profit Sector to Advance the Revitalization and
Beautification of the City.
With the signing into law Senate Bill 2, called “Texas Property Tax Reform and Transparency Act of 2019”,
Ø Goal 6: Address Critical Facility & Infrastructure Needs. the bill made various changes to the appraisal process and how property taxes are set. As a reminder,
the “Voter Approved Tax Rate” (previously termed “Rollback Rate”) decreased from eight percent (8%) to
Ø Goal 7: Implement Innovation Technology Solutions for Security and Performance. three and a half percent (3.5%). The bill went into effect on January 1, 2020.

During our budget workshops, staff made presentations and received your feedback to develop this The “No-New Revenue Tax Rate” (previously termed “Effective Rate”) refers to the tax rate needed to raise
budget. On behalf of the staff, we want to thank you for your support, direction, and guidance. The the same amount of maintenance and operations property taxes on existing properties as the previous
budget adoption and tax rate setting also included public hearings to be conducted during Regular and year. The “Voter-Approval Tax Rate” is the rate necessary to increase the “No-New Revenue Rate” by
Special City Council Meetings. Some of the specific topics/concerns that formed this budget process are: three and a half percent (3.5%) more maintenance and operations tax revenue than the previous year. If
the adopted rate exceeded the three and a half percent (3.5%) ‘Voter Approval Rate”, the City would be
required to hold an automatic election. Unfortunately, the SB2’s cap of 3.5% is less than the current Texas
• Strategic Goals inflation rate of 4.2% in the current year and is much less than the inflation rate of the previous 2 years.
• Tax Rate, Debt Capacity, and Overall Fiscal Responsibility
Sales tax is another significant revenue source for the city, with over $17 million in collections predicted
• Economic Development and Revitalization for FY 2023-2024. Due to the types of businesses that make up our sales tax base, as of May 2023, the

• Attracting and Retaining Employees by Offering Competitive Compensation and Benefits Sales and Use Tax revenues have continued to increase this fiscal year by an average of 9.4% over last year.
The City receives 2% sales tax and allocates 1.375% for the General Fund, 0.375% for Streets, and 0.25%
• Replacement of Aging Municipal Buildings/Facilities and Equipment for the Crime Control and Prevention District.

• Infrastructure Improvements and Maintenance

The expenses consist of two major components. The first component is the base budget. The base budget
provides each department and division with similar funding as the prior fiscal year, less any one-time
BUDGET COMPONENTS costs. The base budget also includes capital projects, equipment replacements, and non-discretionary
items such as necessary price adjustments and commitments.

Each major fund begins with a Budget Summary of revenues and expenditures. This summary provides
an overview of the budget as adopted. The summary sheets provide information on the Prior Year Actual, The second component consists of decision package requests. Decision package requests are submitted
Current Proposed Budget, Projected Year-End Budget, and the Adopted Budget for FY 2023-2024. The for items that will result in a change in the current level of service, including the addition of new programs,
ending fund balance is also included and should be considered a key element in the decision-making new equipment, and new personnel. Decision packages have been presented in budget workshops and
process for each of the larger funds. were included in the Preliminary Budget Book. The accepted decision packages are reflected in the
Adopted Budget and support the City Council’s priorities and goals.

The total FY 2023-2024 adopted budget revenues are $89.5 million while the total operating expenditures
are $89.1 million with an additional expenditure carry-over from the previous budget of $ 2.7 million.
Capital project expenditures, which are generally funded by debt issues, are budgeted at $53.9 million.