Page 117 - Hurst FY19 Approved Budget

Fund revenues. Projections are based on a level adequate to make traffic enforcement
effective. Municipal Court fine collections are projected to decrease by (12%) in fiscal
year 2018-2019

MISCELLANEOUS REVENUES

Miscellaneous revenues account for 1% of revenues and consist primarily of interest
earnings from the investment of city funds. All funds of the city are constantly 100%
invested in certificates of deposit, obligations of the U.S. Treasury, discount notes,
interest bearing money market accounts, savings accounts, or in investment pools.
Interest rates declined in 2001 to 2004 as the economy entered a shallow but lingering
recession in March 2001. In response to the recession, the Federal Reserve lowered the
Federal Funds Rate thirteen times, bringing rates down from 6.5% to a 40 year low at
1.00%. This fundamental shift in the Treasury market caused a dramatic decrease in
interest earnings. Interest rates subsequently rose with the Federal Funds Rate ending
Fiscal Year 2007 at 4.75%. However, the Nation entered the Great Recession and the Fed
cut rates several times. The current Federal Funds rate is in a target range of 0.00% to
0.25%. Maturing investments continue to be reinvested in lower yielding instruments.
Staff will continue to monitor economic conditions on an ongoing basis throughout the
year.

INTRAGOVERNMENTAL

The intragovernmental revenue source contributes 18% to citywide revenues and is
projected to increase 2.27% from the previous year. The Enterprise Fund continues
to reimburse the General Fund for a proportional share of salaries, building costs and
sundry charges that have been totally absorbed by the General Fund, but are applicable
to the enterprise operation of the City. The indirect cost allocation category also contains
a cost allocation transfer from the Community Services Half Cent Sales Tax Fund and
Anti-Crime Half Cent Sales Tax Fund that will reimburse the General Fund for salary,
maintenance and operation costs. The Hurst Conference Center started contributing to
the general fund in 2017-2018. The Fleet Fund will see an increase of 7.44% to cover the
increase in staff. The Commercial Vehicle Fund and the Storm Drainage Utility Fund also
participate in a projected reimbursement of overhead costs related to their operations.

WATER AND SEWER REVENUES

Water and Sewer revenues are received primarily from water sales to City utility customers
and sewer charges. Fiscal year 2018-2019 water sales account for 27% of citywide
revenues and are projected to be higher than the previous year budget primarily due

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