Page 118 - Hurst FY19 Approved Budget

to weather patterns and an increase in water and sewer rates. Sewer charges account
for 5.8% of citywide revenues. Other revenue sources consist of penalties, service and
miscellaneous fees and investment earnings. Water and sewer rates for 2018-2019 will
increase on average by 1.5% for the City utility customer. The increase is due primarily
to the City of Fort Worth proposing a wholesale water and sewer rate increase. The
financial policy objective for water and wastewater rates is to ensure that rates are
adequate to meet all operating needs; to meet or exceed bond covenant tests and
to provide sufficient working capital levels to be fiscally responsible; and to provide a
reliable and fiscally strong utility system.

COMMUNITY SERVICES HALF CENT SALES TAX

REVENUES

For nearly two decades, the Community Services half percent (Half Cent) sales tax
revenue has been a contributing factor to the City’s positive financial condition. Sales
tax receipts are projected to be $4,912,991 for fiscal year 2018-2019. This figure is net
of the portion of the Simon Properties revenue sharing agreement allocated to the
Community Services Half Cent Sales Tax fund. Revenues were conservatively estimated
to ensure financial stability. Use of the funds is restricted to Community Services’
purposes but provides significant tax relief to Hurst citizens. If this revenue source was
not available, the property tax rate would need to be raised seventeen cents to fund the
current 2018-2019 operating budget.

ANTI-CRIME HALF CENT SALES TAX

The Anti-Crime Half Cent Sales Tax is in its twenty-ninth full year as a revenue source and
will provide tax relief to the General Fund by funding expanded crime prevention and
enforcement programs. Overwhelming and continued voter support of the Anti-Crime
half percent sales tax in May 2010 resulted in a twenty-year extension of the program.
This tax is collected primarily from non-resident consumers and is not included in the
sharing agreement with North East Mall. So, the City receives full benefit from the half-
cent tax levied on applicable sales and services. Fiscal year 2018-2019 sales tax revenues
are projected at $5,279,876. Legislation allows the Anti-crime Fund to impose local
sales and use tax on the residential use of gas and electricity. It is estimated that this
will generate an additional $150,000 per year. If this revenue source were not available,
the property tax rate would need to be raised 17.6 cents to fund the 2018-2019 related
expenditures.

101