Page 12 - HaltomCityFY26Budget

COMPENSATION

To remain competitive in the job market employee compensation and benefits continue to be a priority. In
the past, the city fell significantly behind the market. When you fall too far behind the market in employee
compensation, it is almost impossible and too costly to catch up. We all understand that it costs more
to hire and train new employees, and we understand employee retention is very important. When we
become the training ground for others, there is a loss in efficiency and effectiveness in providing quality
services. Our employees and our citizens deserve the benefits of adequately compensated work teams.
Haltom City will continue to strive to not only review compensation but be creative with retention tools
such as alternative work schedules, relaxed dress code, increased paid holidays, and other benefits.

The council has communicated through the Strategic Goals that employee retention and attracting
qualified talent is a high priority for each of you that serve on the City Council. Therefore, for the FY
2025-2026 budget, there is a proposed salary increase of 5% for all employees as the city competes with
retaining employees as neighboring municipalities continue to increase their pay scales. This increase in
compensation combats the phenomena that all the surrounding cities are facing with the workforce not
accepting many critical positions at the old rate of pay.

FISCAL RESPONSIBILITY

In FY 2001-2002, the City Council adopted a Fund Balance Policy, like many other cities, to achieve and
maintain a 20% minimum fund balance. For FY 2025-2026, the operating fund balance reserves for General
Fund are projected to be 31%, Water and Sewer Fund 33%, and Drainage Fund is projected to be 35%.
Capital Projects are directly tied to fund balances since money is transferred from the operating funds
to cover the costs of maintaining and updating the City’s infrastructure, when possible. The challenge,
moving forward, is to maintain and replenish all fund reserve balances.

PERFORMANCE MEASUREMENT/MANAGEMENT

Measurement and reporting are critical to evaluate progress, measure effectiveness, determine
accountability, and guide future planning and operations. Therefore, we constantly measure our efforts to
the Council’s long-term strategic goals and communicate the objectives and outcomes per department.

MUNICIPAL INFRASTRUCTURES AND EQUIPMENT