Page 111 - HaltomCityFY26Budget

City Of Haltom City Adopted Budget, FY2026 Supplemental Information

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
o The Charter of Haltom City specifies that an Operating Budget be adopted
prior to the first day of the fiscal year beginning October 1st. The City’s
budget preparation process is a seven-month cycle, which begins in mid-
February and ends in mid-September. The City Council, management,
departments, and the public have opportunities to participate in the
preparation of the budget at various stages in the process. Throughout the
process, the City Manager presents reports delineating particular areas of
concern to the Council. The Council provides the direction and guidance
necessary to implement the goals and objectives of the City.
2. Preparation of the Operating Budget
o In Early Spring, the Finance Department distributes a budget calendar and
other materials to prepare for the upcoming fiscal year. Departments submit
budget proposals. During the months of May, June, and July, the City
Manager develops the recommended budget based on the policy direction
received from Council. The City’s Charter requires that the proposed budget