Page 13 - HaltomCityFY25Budget

• Attracting/Retaining Employees with Competitive Compensation/Benefits

• Replacement of Aging Municipal Buildings/Facilities and Equipment
• Infrastructure Improvements and Maintenance

We appreciate your continued commitment to these critical areas as we work together to enhance the
well-being of our community.

BUDGET COMPONENTS

Each major fund begins with a Budget Summary of revenues and expenditures. This summary provides
an overview of the budget. The summary sheets provide information on the FY 2023 Year Actual, FY2024
Adopted Budget, Projected Year-End FY2024 Budget, and the Adopted Budget for FY 2024-2025. The
ending fund balance is also included and should be considered a key element in the decision-making
process for each of the larger funds.

The total FY 2024-2025 proposed budget revenues are $102.5 million while the total operating expenditures
are $92.5 million. It is important to note expenses can be carried over from previous budget years while
revenue from bond issuance(s) are recognized at the time received. Capital project expenditures, often
funded by debt issuance, are budgeted at $55.3 million with no new debt issuance(s) planned in the
current year.

One of the major revenue sources of the budget is property taxes. The proposed FY2024-2025 budget
was prepared using the No New Revenue Rate, which is a property tax rate calculated to generate the
same amount of revenue from existing properties as the previous year. This rate, defined and governed
by Section 26.04 of the Texas Property Tax Code, is set at $.580727 per $100 of net taxable value and the
certified Net Taxable Value of $4,174,569,663 provided by the Tarrant County Appraiser.

The overall tax rate is split into two parts, the maintenance and operating for normal operations and the
interest and sinking for debt service. The proposed rate for maintenance and operations is $0.386103 per
$100 of net taxable value and debt service is $.194624 per $100 of net taxable value. Continued economic
growth with increased values will continue to broaden the tax base.

Changes occurred a few years back when Senate Bill 2 was signed into law. The bill was called “Texas
Property Tax Reform and Transparency Act of 2019”, 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 three and a half percent (3.5%). The bill went into
effect on January 1, 2020.