Page 41 - Hurst FY19 Approved Budget

These programs will support City Council priorities in leadership and innovation coming
directly from Team Hurst members through the newly formed Hurst Way Advocacy
Team. The senior leadership team is championing these efforts under the guidance
of two department heads. The Executive Director of Administration and Customer
Services will be providing storyboarding opportunities across the organization, and the
Executive Director of Strategic and Fiscal Services will be educating the organization
even further on the Hurst Way Scorecard and it’s integrated into our action plans and
performance measures.

Fiscal Management Plan

The imperfect economy, natural disasters, and dynamic energy costs have been the
primary influences on the operating budget in recent years. The city’s financial policies
include a Fiscal Management Plan that was adopted to guard against resulting financial
instability. The plan has four levels that progressively emphasize budgetary discretion
in staffing levels, compensation, capital outlay, user fees and overall service levels.
Redevelopment efforts and conservative fiscal policy helped stabilize the city’s financial
outlook in recent years. There were enhancements in service levels, and all budget
objectives were accomplished during very difficult economic times.

Various stages of the Fiscal Management Plan have been in place since the economic
downturn in 2001. In September 2005, several provisions of Level II were implemented
due to escalating fuel prices and the dramatic economic impact of hurricanes that hit
the Gulf Coast. Capital projects and purchases were delayed and spending was reduced
where possible. For budget year 2006-2007, the economy experienced a recovery with
positive market indicators and rising interest rate yields. The city’s Fiscal Management
Plan returned to Level I and spending continued at this level until steps were taken
to address the “Great Recession” that began in December 2007. Fiscal year 2008-2009
began in a deepening recessionary environment. At mid-year, fiscal responses from
Levels III and IV were necessary and implemented. Mandatory budget reductions
resulted in over $600,000 savings to the General Fund. Additional fee evaluations were
performed and implemented, vacant positions were frozen indefinitely and a new storm
water management fee was implemented. Economic conditions stabilized in 2010-
2011 allowing the city to return to Level I of the plan. Sales tax revenue began rising
after almost two years of decline and property values became less volatile. The city’s
proactive steps to address economic downturns allowed the General Fund to continue
operating at a surplus in all of these years. Recent concerns over sales tax revenue have
caused the city to prepare to operate under various levels of the plan; however, sales tax
revenue has stabilized but the Council remains prepared to act as necessary under the
guidance of the plan. The 2018-2019 budget will continue to support quality services
and programs that Hurst residents and businesses have come to enjoy and expect,
even in the face of ongoing economic uncertainty. As the attached budget indicates,

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