Page 158 - HaltomCityFY25Budget

City Of Haltom City Annual Budget, FY2025 Supplemental Information

o Detail control is accomplished by maintaining appropriations and expended
balances by line-item account within each operating department within each
budgeted fund. Purchase orders or payments that would result in an over-
expenditure of a line-item account are not processed without the approval of the
Finance Director or the City Manager
2. Planning
o The City shall prepare a proposed itemized budget for each fund annually with a
multi-year outlook. The budget process will be performance-based and focused
on goals, objectives, and performance indicators.
o For each capital fund, the annual budget will have a five-year financial plan.
3. Revenue Projection
o Projections of revenues will be realistic, modest and based upon historical trends
coupled with current economic conditions.
o Revenues are projected for the current fiscal year, proposed fiscal year. The
estimates for outlying years are reviewed annually and revised as needed.
4. Expenditures/Expenses
o All new spending will be analyzed for its impact upon future years. The budget will
provide adequate funding for maintenance and replacement of capital plant and
equipment.
o The City will avoid budgetary procedures that balance current, reoccurring
expenditures at the expense of meeting future years’ expenses that may
jeopardize the ability to meet expenses in subsequent years.
o Fund balances in excess of policy minimums may be used for capital outlays,
contingencies, or one-time expenditures.
o Budgets for the use of bond proceeds will be developed in accordance with the
use of proceeds covenant in the bond ordinance.

Fund Balance/Operating Position Concepts

1. Re uired Reserves
o The City will maintain an unallocated fund balance (cash and investments) to be
used for unanticipated emergencies of at least 20 percent of the expenditure
budgets of the major operating funds (General, Water & Sewer, Drainage Funds).
These monies will be used to avoid cash-flow interruptions, generate interest
income, reduce the need for short-term borrowing, and assist in maintaining an
investment-grade bond rating.
o All other funds are expected to maintain positive fund balances. Each fund may
borrow internally from other City funds to provide cash flow requirements. These
loans will be on a short-term basis.
2. Use of Surplus
o It is the intent of the City to use surpluses to accomplish three goals: meeting
reserve requirements, avoiding tax or rate increases in ensuing years, and
minimizing or avoiding future debt.