Page 35 - Hurst FY19 Approved Budget

property tax revenue of 8.53% or $1,092,314 which is being used to off-set losses in
other revenues and funding our economic development obligations. Tax exemptions
(e.g., disabled veteran, senior citizen and homestead exemptions) offered to property
owners will provide over $6 million in property tax relief for the 2018-2019 budget.

The average city tax bill for a homeowner in Hurst is $843 annually or $70 per month.
This amount is for city services only and does not include the property taxes owed for
school district, county, hospital district, or college district services. Overall, the city’s
bonded indebtedness, paid primarily through the tax rate, has increased over the past
several years to fund infrastructure improvements and new facilities. The property tax
rate steadily declined from 1992 until the rate was began to increase in 2006 based
upon financial plans and funding needs before being reduced again in recent years.
Rates levied by most neighboring cities in Tarrant County remained flat or increased
each year during this same time period. The city’s willingness to lower the tax rate in
strong economic times has saved taxpayers over $25 million since 1992. In addition to
tax rate relief since, the city grants the maximum residential homestead exemption and
provides additional senior and disabled citizen exemptions. The city Council passed the
senior and disabled tax cap, which freezes Hurst taxes at the level paid when property
owners become disabled or reach 65 years of age. This cap remains in effect for all future
budget years, assuming this section of the state constitution is not amended. Senior
and disabled property owners in Hurst will receive approximately $780,000 in tax relief
in the 2018-2019 fiscal year.

Sales Tax Revenues

The second major financial consideration that guides the city’s budget development
is the projection of sales tax revenues. The city collects a total of 2% sales tax: 1% for
General Fund; ½% for the Community Services Half-Cent Sales Tax Fund; and ½% for the
Anti-Crime Fund. It is a city policy to use a conservative approach in forecasting this
revenue. City sales tax collections reached their highest point in 2016, reaching $10.82
million for the General Fund but has flattened in recent year with approximately 10.5
million in FY 2017-2018. To support economic development, a portion of total sales tax
collections are shared with local businesses, including Simon Property Group who owns
North East Mall. For fiscal year, 2087-2019, total sales tax revenues are projected to be
flat from the previous year’s General Fund budget and includes a $1,000,000 reserve for
economic contingencies. The reserve provides protection against impacts of economic
downturn. The Half-Cent Community Development Corporation participates in the
revenue sharing agreement with Simon while the Anti-Crime Fund does not participate.
All projections of sales tax revenues are very conservative due to the volatility of this
revenue source. Retail growth in Hurst offset any declines due to economic conditions
up until fiscal year 2007-2008 when the Great Recession began. In addition, the state-
mandated sales tax holidays each year have had an expected negative effect on retail
sales taxes, but this impact cannot be directly measured. The biggest challenge in the

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