Page 107 - HaltomCityFY26Budget

City Of Haltom City Adopted Budget, FY2026 Supplemental Information

while maintaining service quality, encouraging increased productivity and
recovering costs through fees.
o Reserves exceeding the required levels may be used for one-time
expenditures. Non-essential services that cannot generate revenues to
support some or all operations may be reduced or eliminated.
o Tax increases will be considered only in the event that the above strategies
fail to address essential service levels that cannot be reduced.
o Detail control is accomplished by maintaining appropriations and expended
balances by line-item account within each operating department within each
budgeted fund. Purchase orders or payments that would result in an over-
expenditure of a line-item account are not processed without the approval of
the Finance Director or the City Manager
2. Planning
o The City shall prepare a proposed itemized budget for each fund annually
with a multi-year outlook. The budget process will be performance-based
and focused on goals, objectives, and performance indicators.
o For each capital fund, the annual budget will have a five-year financial plan.
3. Revenue Projection
o Projections of revenues will be realistic, modest and based upon historical
trends coupled with current economic conditions.
o Revenues are projected for the current fiscal year, proposed fiscal year. The
estimates for outlying years are reviewed annually and revised as needed.
4. Expenditures/Expenses
o All new spending will be analyzed for its impact upon future years. The
budget will provide adequate funding for maintenance and replacement of
capital plant and equipment.
o The City will avoid budgetary procedures that balance current, reoccurring
expenditures at the expense of meeting future years’ expenses that may
jeopardize the ability to meet expenses in subsequent years.
o Fund balances in excess of policy minimums may be used for capital
outlays, contingencies, or one-time expenditures.
o Budgets for the use of bond proceeds will be developed in accordance with
the use of proceeds covenant in the bond ordinance.

Fund Balance/Operating Position Concepts

1. Required Reserves
o The City will maintain an unallocated fund balance (cash and investments)
to be used for unanticipated emergencies of at least 20 percent of the
expenditure budgets of the major operating funds (General, Water & Sewer,
Drainage Funds). These monies will be used to avoid cash-flow interruptions,
generate interest income, reduce the need for short-term borrowing, and
assist in maintaining an investment-grade bond rating.