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City Of Haltom City Annual Budget, FY2025 Supplemental Information

primarily by the sale of general obligation or certificate of obligation bonds, sales
tax, and transfers from other funds.
2. Proprietary Fund Types
o Enterprise / Business-Type Funds: This fund type is used to account for the
provision of fee-based services to residents of the City. These funds include the
Water and Sewer Fund and the Drainage Fund. All activities necessary to provide
such services are accounted for in this fund, including, but not limited to, public
works administration, environment services, operations, maintenance, financing,
and related debt service.

Accounting and Budgetary Reporting

• Accounting and Financial Reporting: Haltom City’s accounting and financial reporting
system follows the principles established by the Governmental Accounting Standards
Board (GASB). An annual audit of the City’s system is performed by an independent public
accounting firm with the subsequent issuance of a comprehensive annual financial report.
• Basis of Accounting:
o The City’s accounting records for the Water and Sewer Fund and the Drainage
Fund are maintained on an accrual basis whereby revenues and expenses are
recorded in the accounting period in which they are earned or incurred.
o The remainder of the City’s funds are maintained on the modified accrual basis
whereby revenue is recorded when measurable and available and expenditures
are recorded when the liability is incurred except for interest on general long-term
debt.
• Basis of Budgeting
o The financial data throughout this document, for all funds, is presented by using a
cash basis of budgeting. This means that expenditures and revenues are measured
and forecasted on an inflow-outflow basis for the 12 months that comprise the
budget year. Capital outlay, reserves and debt service are included in the Water
and Sewer Fund budget as a budgetary control of cash expenditures.
o Under Generally Accepted Accounting Principles (GAAP), these items will be
reported as additions to capitalized assets and as a reduction of a liability,
respectively. Certain accounting adjustments based on GAAP will be applied when
the City closes its books for the year, but these types of adjustments are not part
of the budget presentation. The application of GAAP forms the basis of accounting
for the City using the cash, accrual, and modified accrual methods of revenue and
expenditure measurement. Where applicable, the effect of these end-of-year
adjustments for historical data has been reversed to maintain the cash basis of
budgeting consistently throughout the document.

Budget Process and Long-Term Planning

1. Overview