Page 159 - HaltomCityFY25Budget

City Of Haltom City Annual Budget, FY2025 Supplemental Information

Capital Planning Criteria

1. Capital Improvement Budget
o The City will coordinate the development of the capital improvement budget with
the development of the operating budget. Future operating costs associated with
new capital improvements will be projected and included in operating budget
forecasts.
o The estimated costs and potential funding sources for each capital project will be
identified before the project is submitted to the City Council for approval.
2. Alternative Capital Financing
o The City shall explore funding alternatives in addition to long-term debt including
leasing, grants and other aid, developer contributions, capital recovery fees, and
current funds.
o Intergovernmental assistance will be used to finance only those capital
improvements that are consistent with the Capital Improvement Plan and City
priorities, as well as those operating and maintenance costs which have been
included in the operating budget.

Debt Management

1. Limits
o The City will strive to limit general obligation annual debt requirements to 25% of
general government expenditures. Furthermore, the debt service portion of the
tax rate will not exceed $0.25 per $100 to service the bonds as approved by the
voters in 2010.
o Long-term debt shall not be used for financing current operations. The life of the
bonds and/or other debt source shall not exceed the useful life of the asset.
2. Re uired Coverage
o Revenue bond coverage (Water & Sewer) shall be maintained at a minimum of
revenues, less operating expenses, exceeding the annual debt service cost by 25%
(1.25 times coverage). This exceeds our covenanted standard of 1 times coverage.
3. Continuing Disclosure
o Full disclosure of operations and open lines of communication shall be made to
rating agencies. The City staff, with the assistance of bond advisors, shall prepare
the necessary materials and presentation to the rating agencies. Inter-period
reporting of material events to rating agencies and other oversight agencies is
required as events occur.
4. Variable Rate / Floating Rate Debt
o Debt instruments structured with variable rate or floating rate features (including
derivatives) are to be utilized only after careful review by the City’s financial
advisor and bond counsel and subject to continuous monitoring and reporting.

Performance Measurement