Page 9 - HaltomCityFY26Budget

BUDGET COMPONENTS

Each major fund begins with a Budget Summary of revenues and expenditures and provides an overview of
the budget. The summary sheets provide information on the Prior Year Actual, Current Adopted Budget,
Projected Year-End Budget, and FY 2025-2026 Adopted Budget. The ending fund balance is also included
and should be considered a key element in the decision-making process for each of the larger funds.

The total FY 2025-2026 adopted budget revenues are $93.9 million while the total operating expenditures
are $113.1 million. Of the total operating expenditures, $12 million is a one-time transfer from the General
Fund to the Streets Reconstruction Fund. Capital project expenditures, which are generally funded by
debt issues, are budgeted at $43.7 million. Expenses can be carried over from previous budget years for
multi-year projects and revenues are recognized at the time the debt is issued and received.

One of the major revenue sources of the budget is property taxes. Certified Values were received on
July 24th, and Tarrant County reviewed and signed the Truth in Taxation worksheet calculating the City’s
property tax rate on August 6th. The Fiscal Year’s 2024-2025 Budget was prepared using the tax rate of
$.580727 per $100 of net taxable value and an estimated net taxable value of $3,663,528,267. The current
budget for FY 2025-2026 was prepared using a total tax rate of $.557290 per $100 of net taxable value and
an estimated net taxable value of $4,724,884,829.

The overall tax rate is split into two parts, the maintenance and operating for normal operations and the
interest and sinking for debt service. The current rate for maintenance and operations is $.36924 per
$100 of net taxable value and debt service is $.188050 per $100 of net taxable value totaling $.557290
per $100 of net taxable value.

In 2025, the Tarrant Appraisal District adopted a policy to appraise residential properties every two years
instead of every year. Fortunately, we saw the greatest increase in commercial appraisals, with commercial
appraisals and personal property values increasing by $490 million. The increased value has allowed a
decrease in the city’s property tax rate. New growth broadens the City’s tax base, and efforts will continue
to facilitate additional development.

Changes occurred a few years back when Senate Bill 2 was signed into law. The bill was called “Texas
Property Tax Reform and Transparency Act of 2019” and made various changes to the appraisal process
and how property taxes are set. As a reminder, the “Voter Approved Tax Rate” (previously termed “Rollback
Rate”) decreased from eight percent (8%) to three and a half percent (3.5%). The bill went into effect on
January 1, 2020.