Page 14 - HaltomCityFY25Budget

The “No-New Revenue Tax Rate” (previously termed “Effective Rate”) refers to the tax rate needed to raise
the same amount of maintenance and operations property taxes on existing properties as the previous
year. The “Voter-Approval Tax Rate” is the rate necessary to increase the “No-New Revenue Rate” by
three and a half percent (3.5%) more maintenance and operations tax revenue than the previous year. If
the proposed 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 inflation rate in the DFW area according to the Consumer Price Index of the U.S. Bureau of Labor
Statistics is 5% from April and May of 2024, which is greater than the cap set on property tax rates.

Sales tax is another significant revenue source for the city, with over $20.3 million in collections predicted
for FY 2024-2025. Due to the types of businesses that make up our sales tax base, as of July 2024, the Sales
and Use Tax revenues have continued to increase year over year although some cooling off is noted in the
economy compared to last year. The City receives 2% sales tax, and the allocation is 1.375% for General
Fund, 0.375% for Streets, and 0.25% for the Crime Control and Prevention District.

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

The second component consists of decision package requests. Decision package requests are submitted
for proposed changes in the current level of service, including the addition of new programs, acquiring
new equipment and new personnel. Decision packages are presented in budget workshops for discuss and
review and were included in the Preliminary Budget Book. The accepted decision packages are reflected in
the Proposed Budget and support the City Council’s priorities and goals.

MAJOR PRIORITIES

Economic Development

Three major economic development focuses for the city are Loop 820, Highway 377, and the Belknap
Corridors. These corridors promise the most advantageous locations to promote our overall community
revitalization and new development.

Our three-pronged approach or strategy has proven successful because the plan has brought us record
economic growth. Our job-creating industries, our new residential neighborhoods, and holding to our
development and code standards, are revitalizing our city and will serve as a catalyst to obtain more
restaurants, retail, etc. Below is a list of our current developments: