Page 157 - CityofHaltomFY24Budget

City Of Haltom City Annual Budget, Fy2024 Supplemental Information City Of Haltom City Annual Budget, Fy2024 Supplemental Information

Budget Concepts Budget Assumptions and Short-Term Polices

Balanced Budget. The City shall prepare a budget for each fund and each program within the fund. The objective of this budget is to preserve current service levels while seeking opportunities to
The budget should be balanced with current revenues equal to or greater than current expenditures. H[SDQG VHOI VXVWDLQLQJ VHUYLFHV DQG SXUVXLQJ HFRQRPLF GHYHORSPHQW SRVVLELOLWLHV 2WKHU VLJQL¿FDQW
,Q RUGHU WR DFFRPSOLVK WKLV DLP HPSKDVLV ZLOO EH SODFHG ¿UVW RQ HQFRXUDJLQJ LQFUHDVHG SURGXFWLYLW\ assumptions include:
and recovering costs through fees. Reserves above the required levels are available for one-time
expenditures. Non-essential services that cannot generate revenues to support some or all of
operations may be reduced or eliminated. Tax increases will be considered only in the event that x 0RGHVW SURSHUW\ YDOXH JURZWK 7KLV LV UHÀHFWHG LQ WKH DYHUDJH JURZWK LQ DVVHVVHG SURSHUW\
the above strategies fail to address essential service levels that cannot be reduced. values according to the appraised value by Tarrant County Appraisal District. There has
been little population growth in the City since 2000 and new home development has been
modest at best.
Planning. The City shall prepare a proposed itemized budget for each operational fund annually. Sales Tax. It can be expected that sales tax collections will be moderate to above average
)RU HDFK RSHUDWLQJ IXQG WKH DQQXDO EXGJHW ZLOO EH D FRPSRQHQW RI D ¿YH \HDU ¿QDQFLDO SODQ 7KH x for the next year and return to historical growth rates thereafter.
budget process will be performance-based and focused on goals, objectives and performance
indicators. x Utilities. Growth in revenues from utility operations will come primarily from increased rates.
Expense growth must be restrained as the City seeks to maintain a competitive position in
Northeast Tarrant County. Cost increases from Fort Worth Water will continue to be passed
Revenue Projection. Projections of revenues will be realistic and based upon historical trends directly through to the customers.
coupled with current economic conditions. Current operating revenue, coupled with available x Realistic projections of revenues and expenditures. Conservative projections help ensure
UHVRXUFHV ZLOO EH VXႈFLHQW WR VXSSRUW FXUUHQW RSHUDWLQJ H[SHQGLWXUHV that adequate resources will always be available to meet budgeted obligations. Projections

DUH EDVHG XSRQ WKH ODVW ¿YH \HDUV RI DFWXDO KLVWRU\ DGMXVWHG IRU NQRZQ FXUUHQW HYHQWV DQG
statutory changes.
5HYHQXHV DUH SURMHFWHG IRU WKH FXUUHQW ¿VFDO \HDU SURSRVHG ¿VFDO \HDU DQG QRW OHVV WKDQ IRXU
succeeding years. The estimates for outlying years are reviewed annually and revised as needed. x $QQXDO 5HYLHZ RI DOO VLJQL¿FDQW IHHV )HHV DUH UHYLHZHG DQQXDOO\ DQG DGMXVWHG DV QHHGHG
Frequent but moderate increases are preferable to infrequent but large rate increases.
x Maintain or enhance target fund balances. This strategy is essential to the preservation
Expenditures/Expenses. Increases in proposed spending must be supported with new revenues RI ¿QDQFLDO LQWHJULW\ )XQGV WDUJHWHG ZLWK UHVHUYHV DUH WKH *HQHUDO )XQG :DWHU DQG
RU RႇVHW ZLWK H[SHQGLWXUH VDYLQJV $OO QHZ VSHQGLQJ ZLOO EH DQDO\]HG IRU LWV LPSDFW XSRQ WKH ¿YH Sewer Fund and Drainage Fund.
\HDU ¿QDQFLDO SODQ 7KH EXGJHW ZLOO SURYLGH DGHTXDWH IXQGLQJ IRU PDLQWHQDQFH DQG UHSODFHPHQW RI
capital plant and equipment. x Salary Adjustments. Annual salary adjustments will be made for all employees when
resources are available to retain and motivate employees. Market study will be conducted
periodically, and salary schedule will be revised accordingly.
The City will pay for all current expenditures with current revenues. The City will avoid budgetary
procedures that balance current expenditures at the expense of meeting future years’ expenses,
such as postponing expenditures or accruing future year’s revenues. Fund balances in excess of Fund Balance/Operating Position Concepts
policy minimums may be used for capital outlays or one-time expenditures.

Required Reserves. The City will maintain an unallocated fund balance (cash and investments)
'HEW RU ERQG ¿QDQFLQJ ZLOO QRW EH XVHG WR ¿QDQFH FXUUHQW H[SHQGLWXUHV %XGJHWV IRU WKH XVH RI to be used for unanticipated emergencies of at least 20 percent of the expenditure budgets of the
bond proceeds will be developed in accordance with the use of proceeds covenant in the bond major operating funds (General, Water & Sewer, Drainage Funds). These monies will be used to
ordinance. DYRLG FDVK ÀRZ LQWHUUXSWLRQV JHQHUDWH LQWHUHVW LQFRPH UHGXFH WKH QHHG IRU VKRUW WHUP ERUURZLQJ
and assist in maintaining an investment-grade bond rating. All other funds are expected to maintain
5HYHQXHV DUH SURMHFWHG IRU WKH FXUUHQW ¿VFDO \HDU SURSRVHG ¿VFDO \HDU DQG QRW OHVV WKDQ IRXU SRVLWLYH IXQG EDODQFHV (DFK IXQG PD\ ERUURZ LQWHUQDOO\ IURP RWKHU &LW\ IXQGV WR SURYLGH FDVK ÀRZ
succeeding years. The estimates for outlying years are reviewed annually and revised as needed. requirements. These loans will be on a short-term basis.