Page 24 - Hurst FY19 Approved Budget

in 2018-2019. In 2016, the city issued $5.4 million in Certificates of Obligation to
support the reconstruction of Central Aquatic Center and repairs at the Recreation
Center. The Recreation Center repairs included a complete roof replacement,
replacement of the window wall system in the Cardio Room, replacement of
waterproofing components throughout the building, and replacement of the
main gym floor. The 2018-2019 budget will focus on maintaining our investments
and programs. The fund’s total budget of $5.66 million includes operations, pay-
as-you-go projects, and annual debt service payments.

If the Community Services special revenue sales tax were not available, the city’s
property tax rate would need to be raised by approximately 17 cents to fund the
programs currently underway. The city is projected to receive about $5.17 million
in gross sales tax revenues in fiscal year 2018-2019 from this source. Economic
Development incentives in the amount of $316,152 will need to be deducted
from the overall revenue generated; however, these incentive payments provide
a return to the city through continued redevelopment of blighted property and
is matched with private investment to improve property values and increase
economic activity.

Enterprise Fund

The Enterprise Fund is operated as a stand-alone utility business providing water
and sewer services to Hurst residents and commercial customers. This fund’s
approved operating budget increased by 1.67% or $351,253. The City of Hurst
does not own or operate its own wastewater plant. As such, the city contracts
with the City of Fort Worth and the Trinity River Authority for the provision of
wholesale water and wastewater services. Unfortunately, the City of Hurst has
limited ability to control wholesale costs, which have increased by 34% over the
past seven years. For fiscal year 2018-2019, wholesale costs charged by Ft. Worth
are projected to increase by approximately $215,736 or 2.95%. Additionally,
wholesale costs associated with the Trinity River Authority (TRA) are projected to
decrease; however, future increases are expected in FY 2019-2020 that will exceed
the FY 2018-2019 costs. The city is participating in a TRA project to replace the
Walker Branch Sanitary Sewer Trunk line which will cost $7.9 million over the next
twenty-six years. The city’s Public Works Department monitors water usage and
system capacity on a 24/7 basis. The city uses well water and other means to
lower maximum hour and daily demands of water, which helps control wholesale
costs as much as possible.

Last year I met with Northeast Tarrant County City Managers and the Ft. Worth
City Manager to discuss contract options and the challenges the city faces due
to rising wholesale costs. Unfortunately, the Council has very little control to
change the contract terms; however, the city was successful in getting Ft. Worth to

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