Page 112 - Hurst FY19 Approved Budget

ANALYSIS OF CHANGES IN
FUND BALANCES/RETAINED EARNINGS

The following table indicates the reasons for projected changes in fund balances/retained earnings of ($1,289,047):
2017-2018 2018-2019
Fund Difference Explanation
Year End Year End
Budget balanced and provides for at least 90 days of
General Fund $8,400,000 $8,400,000 $0 operations. Any savings will be transferred to the Special
Projects Fund.
Retained earnings are expected to decrease due to
depreciation costs, which do not impact the fund's cash
Enterprise Fund $16,851,356 $17,419,252 $567,896
position. The retained earnings at year end will continue to
allow for 90+ days of operational funding.
Fee collections in 2018-2019 will cover current
expenditures. Now in its 11th year of operations, the city is
Storm Water Management $351,648 $370,493 $18,845 utilizing $18,845 in fund balance to complete one time
Fund
maintenance and drainage improvement projects approved
for 2018-2019.
For fiscal year 2018-2019, the City has budgeted
conservatively. The City feels the Conference Center will
Conference Center Fund $300,000 $271,994 ($28,006)
break even for this year, however; any short falls will be
covered by Hotel/Motel fund reserves.
The decrease in fund balance is due to the continuance of
a $3 million economic contingency reserve. For fiscal year
Anti-Crime Fund $5,027,257 $4,915,115 ($112,142)
2018-2019, the city restricted funds in the amount of
$500,000 to partially fund an animal control center.

Current revenues will cover 2018-2019 operating costs.
Community Services Half $2,937,109 $2,192,812 ($744,297) The decrease in undesignated fund balance is due to one-
Cent Sales Tax time pay-as-you-go capital costs to improve parks,
recreation and aquatics.

Increase is primarily due to a 2.5% Cost of Living increase
Court, Public Safety and $1,610,779 $1,740,794 $130,015 in Building Security Fund and Juvenile Case Manager
Other Special Revenues Fund. The Police Department will utilize $95,000 in one
time capital outlay from the city's Red Light Camera Fund.

Depreciation is included in this change in fund balance.
Fleet Services Fund $3,931,173 $4,204,446 $273,273 For 2018-2019 $316,000 of Police, Fire and City wide
vehicles will be replaced.
Depreciation is included in this change in fund balance.
Information Technology
Fund $4,020,069 $4,134,906 $114,837 For 2018-2019 $211,800 of annual IT equipment and one
time capital outlay will be replaced.
The decrease is due to the increase of eligiblity for the
Debt Service $572,000 $531,509 ($40,491)
senior tax freeze.

Decrease assumes that allocated funds for specific
projects will be spent and the city's policy to maintain an
Special Projects $16,224,963 $12,311,037 ($3,913,926) $8 million dollar economic contingency reserve will remain
in effect. All planned projects require final approval from
the City Manager or Council before commencement.

Current revenues will sufficiently offset current operating
Hotel Motel/Park Donation $1,804,460 $1,816,208 $11,748 and debt-related expenditures. The city designates
$730,000 as a debt service reserve in Hotel/Motel Fund.

The increase in Bond Fund balances are due to the
Capital Project Bond Funds $10,824,936 $13,258,137 $2,433,201 anticipated issuance of debt for a new animal control
center and street improvement projects.
Totals $72,855,750 $71,566,703 ($1,289,047)

95