Page 70 - CityofEulessFY26AdoptedBudgetOrdinance2432

E.
Revenue Adenuacv — The City will require that there be a balance in the revenue system. That is, the
revenue base will have the characteristic of fairness and neutrality as it applies to cost of service,
willingness to pay, and ability to pay.
F. Cost/ Benefit of Abatement — The City will use due caution in the analysis of any tax, fee, or water and
wastewater incentives that are used to encourage development. Ideally, a cost/benefit (fiscal impact)
analysis will be performed as a part of such review.
G. Diversification and Stability — In order to protect the government from fluctuations in a revenue source
due to fluctuations in the economy, and variations in weather ( in the case of water and wastewater), a
diversified revenue system will be maintained which has a stable source of income.
H. Nonrecurrino Revenues — One-time revenues will not be used for ongoing operations. Nonrecurring
revenues will be used only for nonrecurring expenditures. Care will be taken not to use these revenues
for budget balancing purposes.
Property Tax Revenues —
1. Process. Property shall be assessed at 100% of the fair market value as appraised by Tarrant
Appraisal District. Reappraisal and reassessment shall be done regularly as required by State
law. A 97%
collection rate will serve as a goal for tax collections, with a delinquency rate of
3%
or less. All delinquent taxes will be aggressively pursued, with delinquents greater than
150 days being turned over to an attorney and a penalty assessed to compensate the attorney
as allowed by State law, and in accordance with the attorney's contract. Annual performance
criteria will be developed for the attorney.
2.
Reduce Reliance on Property Tax. The City will try to reduce reliance on property tax by
seeking additional revenue sources and attempting to expand and diversify the City tax base.
J. Exemptions —
In order to maintain stability of funds for the City, it is the Councii' s intentions for the
exemptions presently allowed by the City to be continued with no allowance for additional exemptions.
Tax abatements should be used selectively and only when a good chance exists of economic return
exceeding the loss.
K. User -Based Fees — For services associated with a user fee or charge, the direct and indirect costs of
that service will be offset by a fee where possible. There will bean annual review of fees and charges
to ensure that fees provide adequate coverage of costs of services.
L. Property Tax Distribution — The percentage of the tax rate allocated to the General Fund is the percent
equal to the Maintenance and Operations portion of the total tax rate. The allocation of the tax rate far
debt purposes is the percent equal to the Interest and Sinking portion of the total tax rate. Debt service
should not exceed 40% except for extraordinary and temporary reasons.
M. Proprietary — Proprietary funds will pay the General Fund for direct services rendered. Additionally,
the Water and Wastewater Fund will pay a franchise fee of 5% of gross receipts. This is to compensate
the General Fund for the lost revenue that would be payable from a privately owned utility.
N. Franchise Aoreements — The City will monitor the status of existing financial agreements and take
necessary actions to negotiate new agreements as they near expiration or as they need revisions to
best serve the citizens of Euless.

O. General and Administrative Charles — A method will be maintained whereby the General Fund may
impose a charge to the proprietary funds for general and administrative services ( indirect costs)
performed on the enterprise funds' behalf.
P. Utility Rates — The City will review and adopt utility rates that will generate revenues required to fully
cover operating expenditures, meet the legal restrictions of all applicable bond covenants, and provide
for an adequate level of working capital needs. This policy does not preclude drawing down cash
balance to finance current operations. However, it is best that any extra cash balance be used instead
to finance capital projects.
Q. Interest income — Interest earned from investment of available moneys, whether pooled or not, will be
distributed to the funds in accordance with the operating and capital budgets which, wherever possible,
will be in accordance with the equity balance of the fund from which moneys were provided to be
invested.

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Ordinance No. 2432, Page 70 of 474