Page 108 - HaltomCityFY26Budget

City Of Haltom City Adopted Budget, FY2026 Supplemental Information

o All other funds are expected to maintain positive fund balances. Each fund
may borrow internally from other City funds to provide cash flow
requirements. These loans will be on a short-term basis.
2. Use of Surplus
o It is the intent of the City to use surpluses to accomplish three goals:
meeting reserve requirements, avoiding tax or rate increases in ensuing
years, and minimizing or avoiding future debt.

Capital Planning Criteria

1. Capital Improvement Budget
o The City will coordinate the development of the capital improvement budget
with the development of the operating budget. Future operating costs
associated with new capital improvements will be projected and included in
operating budget forecasts.
o The estimated costs and potential funding sources for each capital project
will be identified before the project is submitted to the City Council for
approval.
2. Alternative Capital Financing
o The City shall explore funding alternatives in addition to long-term debt
including leasing, grants and other aid, developer contributions, capital
recovery fees, and current funds.
o Intergovernmental assistance will be used to finance only those capital
improvements that are consistent with the Capital Improvement Plan and
City priorities, as well as those operating and maintenance costs which have
been included in the operating budget.

Debt Management

1. Limits
o The City will strive to limit general obligation annual debt requirements to
25% of general government expenditures. Furthermore, the debt service
portion of the tax rate will not exceed $0.25 per $100 to service the bonds as
approved by the voters in 2010.
o Long-term debt shall not be used for financing current operations. The life of
the bonds and/or other debt source shall not exceed the useful life of the
asset.
2. Required Coverage
o Revenue bond coverage (Water & Sewer) shall be maintained at a minimum
of revenues, less operating expenses, exceeding the annual debt service
cost by 25% (1.25 times coverage). This exceeds our covenanted standard of
1 times coverage.