Page 16 - HaltomCityFY25Budget

The council has communicated through the Strategic Goals that employee retention and attracting
qualified talent is a high priority for each of you that serve on the City Council. Therefore, for the
FY 2024-2025 budget, there is a proposed salary increase for all employees as the city competes
with retaining employees as neighboring municipalities continue to increase their pay scales. This
compensation increase combats the phenomena that all the surrounding cities are facing with the
workforce not accepting many critical positions at the old rate of pay.

Fiscal Responsibility

In FY 2001-2002, the City Council adopted a Fund Balance Policy, like many other cities, to achieve
and maintain a 20% minimum fund balance. For FY 2024-2025, the fund balance reserves for General
Fund are projected to be 51%, Water and Sewer Fund 33%, and Drainage Fund is projected to be 52%.
These Fund Balances have increased slightly due to moving some large equipment expenses to Capital
Projects. Capital Projects are directly tied to fund balances since money is transferred from the core
funds to cover the costs of maintaining and updating the City’s infrastructure. The challenge moving
forward is to maintain and replenish all fund reserve balances.

Performance Measurement/Management

Measurement and reporting are critical to evaluate progress, effectiveness, determine accountability,
and guide future planning and operations. Therefore, we constantly measure our efforts to the Council’s
long-term strategic goals and communicate the objectives and outcomes per department.

Municipal Infrastructures and Equipment

One long-term focus has been providing enough funding each year to maintain the City’s existing
infrastructure, primarily our streets. Our community continues to face challenges with aging
infrastructure and will be forced to absorb large reconstruction costs in the future if annual maintenance
is not sufficiently funded. Revenues of a 3/8 cent sales tax provides funding for street repairs. Other
aging infrastructures concerns have been our city buildings.

To address the critical facility and infrastructure needs, our citizens approved general obligation bonds
for a replacement fire substation, a new Law Enforcement Center (which opened in January 2024), and
a new City Hall slated to open in October 2024. Additionally, certificate of obligation debt are issued to
fund continuous and future street projects. Those funds, along with Texas Parks and Wildlife grants, will
be used to reconstruct North Park. Recognizing street projects are a major budget focus in the General
Fund, street projects are coordinated in conjunction with Water and Sewer projects which are paid for
separately through rates.

Water and Sewer projects are part of the Capital Improvement Projects have a different funding source than
street projects. The operations of the Water and Sewer department and capital improvement projects are
funded by water and sewer rates. The proposed Water and Sewer Rates for the 2024-2025 budget year