Page 94 - Hurst FY19 Approved Budget

streets by Enterprise Operations. The following intragovernmental revenue transfers for
2018-2019 are budgeted:

• Enterprise Fund will contribute $3,680,332
• Fleet Service Fund will contribute $246,376
• Community Services Half Cent Sales Tax Fund will contribute $691,120
• Anti-Crime Half Cent Sales Tax Fund will contribute $1,681,437
• Other Indirect costs will contribute $275,856

General Fund Reserves
The General Fund balance should be adequate to handle unexpected decreases in
revenues plus a reasonable level for extraordinary unbudgeted expenditures. The
minimum fund balance should be 90 days computed separately from designated
components of the fund balance. A surplus typically exists in the General Fund each
year and is transferred to a Special Projects Capital Fund after 90 days fund balance
allowance is considered.

Capital Budget Policies
New capital programs will not be budgeted and implemented until the full annual
operating and maintenance costs and financial impacts of the program are known.
The replacement of existing capital that is worn out, broken or costly to maintain will
not be deferred in order to protect the City’s capital investment. A multi-year capital
improvement plan is updated annually and is available as a separate document. The
funded portion of the multi year capital improvement plan is located in the Capital
Improvements section of this document.

REVENUE POLICIES

Property Tax
The tax rate should fall within a reasonable range of comparable cities and should be
adequate to produce the revenues needed to pay for approved City services. The tax
rate will not exceed the rollback rate as computed by State of Texas Truth in Taxation
laws. The Notice of Effective Tax Rate is located in the Appendix. The City adopted a tax
rate decrease of approximately .094% cents to $.58 per $100 valuation for 2018-2019.

Section 5.42 of the City’s Charter limits the maximum tax rate to $1.50 per $100 property
valuation. This is one dollar lower than the $2.50 allowed by state laws. The City’s total
tax rate provides funding for general debt and operations. So, any increase in operations
or debt costs must be absorbed by growth in property values, any offsetting reductions
in costs, or by an increase in the tax rate. Debt issued for proprietary purposes shall
primarily be supported by associated revenues (e.g. water and wastewater fees for

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