Page 25 - Hurst FY19 Approved Budget

consider some small revisions to help with operations. For fiscal year 2018-2019
wholesale costs represent approximately 43% of the operating budget. With such
a significant portion of our budget being passed back to Ft. Worth, staff actively
works to educate consumers about the driving force behind our rates. Through
our membership with a consortium of cities, the Council is able to achieve
economies of scale in our purchase of wholesale water and wastewater services;
however, this consortium includes cities that are growing while consumption in
Hurst remains flat.

It has been the city’s financial policy to pass through additional charges originating
from the city’s wholesale contracts with the City of Fort Worth for water purchase
and wastewater treatment. For fiscal year 2018-2019 a 1.5% increase in water and
sewer rates was approved for commercial and residential consumers. The higher
fees will address increases in wholesale costs, and revenue fluctuations recognized
over the past several years.

Personnel costs represent 20% of Enterprise Fund expenditures with the vast
majority of costs related to wholesale operations and system depreciation and
maintenance. The Enterprise Fund includes the same market rate increase of
2.5% for wages that is included in General Fund. In the Enterprise Fund, other
increases include increased credit card processing fees, meter replacements,
and capital purchases for replacement of a back hoe and a meter reader truck
that have reached the end of their useful lives. The city continues to maintain
healthy reserves to support capital expenditures and serve as protection against
economic challenges.

Anti-Crime Half-Cent Sales Tax Fund

The Anti-Crime Half-Cent Sales Tax Fund budget will see a minor decrease of
$1,000 which is less than 1%. With sales tax revenue expected to remain flat in FY
2018-2019, police services without any significant cuts. The new Justice Center
and related parking approved by voters, were opened to the public in February
2015. The new facilities provide the following: a secure and effective Municipal
Court room; improved locker rooms for officers with appropriate accommodations
provided to female officers for the first time; more private interview rooms; safer
conditions for handling of prisoners; a much improved investigative laboratory;
a more functional dispatch center to receive and handle 911 calls; secure and
covered parking for patrol units; much needed parking for Hurst Town Center
guests; and other improvements to enhance the quality of Police and Municipal
Court services.

Anti-Crime Fund officers and civilian employees will also receive a 2.5% COLA;
however, the increase will not impact the Anti-Crime Fund budget. Indirect

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