Page 167 - HaltomCityFY25Budget

City Of Haltom City Annual Budget, FY2025 Supplemental Information

• Inflation Trends: The same Congressional Budget Office reported inflation is projected to gradually decline
over the next few years. Growth in the price index for personal consumption expenditures (PCE) is expected to
slow from 2.6% in 2024 to 2.2% in 2025. This moderation in inflation may alleviate some cost pressures on
households and businesses.

• Housing Market Dynamics: The Dallas-Fort Worth (DFW) area is anticipated to continue to be a leading
real estate market in 2025, driven by robust economic growth and population increases according to “Dallas
Housing Market: Prices, Trends, Forecast 2024-2025” November 12, 2024, statistics by Norada Real Estate
Investments. However, housing prices are expected to experience modest adjustments, with forecasts indicating
slight declines in the near term.

• Economic Growth: The U.S. economy is projected to grow steadily, with real Gross Domestic Product
(GDP) increasing by 1.1% in 2024 and 2.0% in 2025. This growth is expected to support employment and income
levels, contributing to housing demand according to the Congressional Budget Office.

The City Council’s remains committed to attracting and retain high-quality staff and avoid falling behind in employee
compensation standards. Operational expenses, such as vehicle and information technology replacements, are
re-evaluated annually in decision packages and one-time expenses will be considered for efficiency gains as
revenues continue to trend favorably. Given the potential economic shifts with neighboring cities and services to
our citizens, future adjustments may be considered based on economic indicators.

Addressing critical facility and infrastructure needs is a long-term goal. The City has structured debt capacity to
fund these needs without increasing property taxes, leveraging the benefits of new commercial and residential
growth. Lowering the property tax rate demonstrates a commitment to broadening the tax base, lessening the
burden on citizens. Building reserves remains a priority, providing a financial buffer during unforeseen events
allowing an emphasis on sustainability.