Page 13 - HaltomCityFY26Budget

One long-term focus has been providing enough funding each year to maintain the City’s existing
infrastructure – primarily streets. Our community continues to face challenges with aging infrastructure
and will be forced to absorb large reconstruction costs in the future if annual maintenance is not sufficiently
funded. Revenues of a 3/8 cent sales tax provide funding for street repairs. Another aging infrastructures
is our city buildings.

To meet the critical facility and infrastructure needs, the citizens approved general obligation bonds for a
replacement fire substation, a new Law Enforcement Center (which opened in January 2024), and a new
City Hall (which opened in November 2024). Additionally, the construction of North Park was funded with
certificate of obligation debt and a grant from Texas Parks and Wildlife. Prior certificate of obligation debt
was used to fund various street projects. With street maintenance projects being a major budget focus
in the General Fund, capital projects for street reconstruction will be continuously reviewed for proper
revenue sources to cover costs.

Water and Sewer projects are part of the Capital Improvement Projects and are funded differently than
street projects. The operations of the Water and Sewer department and capital improvement projects
are funded by water and sewer fees. The Water and Sewer rates for the 2025-2026 budget year have been
updated to reflect Fort Worth’s 5.9% increase in water cost while no changes were made to sewer rates.
The FY 2025-2026 Fee Schedule will list the proposed rates which will need to be adopted as part of the
budget process. The rate structure continues to meet the industry standards and billing methods. We
will continue to work with our consultants on rate studies for the 5-year outlook. The 5-year plan reviews
revenue requirements to support both operations and future Capital Improvement Projects.

CAPITAL IMPROVEMENTS

The process of street replacement is a one that takes a long time since it includes extensive design,
engineering, and construction phases. When roads are replaced, the drainage, water, and sewer
infrastructure must also be replaced. We do not build new streets over 20 to 50-year-old utilities.

Equipment purchases used for these projects are also budgeted. Street equipment can be funded from
the General Fund along with regular repairs and maintenance, but larger equipment purchases are often
moved to the Capital Project Funds as they relate to projects.

Over several years, the city has budgeted approximately $72 million to road replacement and repairs
with multiple funding sources and is looking to bring on another $32 million in future road projects.
Because this is a request of high priority to our citizens, our City Council has committed more to street
replacement/repair in last two years more than at any other time in the past, totaling approximately $104
million in your tax dollars at work.

The FY 2025-2026 Capital Improvement Budget has $43.5 million in planned projects for paving, drainage,
and water/sewer projects. Just like other capital projects, many cities continue to budget over multiple
years until completion.