Page 98 - Hurst FY19 Approved Budget

FINANCIAL PLAN

PURPOSE OF FINANCIAL PLAN

The main purpose of a financial plan is to guide the City in financing cost effective
services, programs and capital needs, while focusing on a stabilized tax levy and
appropriate levels for fees and service charges as prescribed by approved financial
objectives. The annual audit, internal audits, and review of Monthly Financial Reports
assure the compliance of financial objectives.

FUND ACCOUNTING

All City accounts are organized on the basis of funds, or account groups, and each is
considered a separate accounting entity. The operations of each fund are accounted for
with a separate set of self-balancing accounts. Using these accounts, the revenues and
expenditures/expenses are budgeted and approved before the beginning of each fiscal
year by an ordinance passed by the City Council.

The various funds are primarily grouped by two types, governmental fund and
proprietary fund types. Governmental funds finance most of the City’s functions and
include, but are not limited to, the General Fund, Debt Service Fund, Special Revenue
Fund, and Capital Projects Funds. Proprietary funds are used to account for the City’s
organizations and activities which are similar to those often found in the private sector.
The Enterprise Fund is the City’s main proprietary fund and the Hurst Conference
Center, Storm Drainage Utility, Information Technology, Fleet Services, and Loss Reserve
funds are the remaining proprietary funds. Governmental accounting further classifies
funds into major and non-major categories. The City’s major operating funds include:
the General Fund, Community Services, Half Cent Sales Tax Fund, Anti-Crime Fund,
and Enterprise Fund. All other debt service, capital projects and operational funds are
considered non-major. Descriptions of all funds are included in the respective sections
along with supporting information and in-depth analysis.

OPERATIONAL STRUCTURE

Each operational fund is comprised of departments, which are major organizational units
of the City. Each department has overall management responsibility for one or more
divisions. For all divisions, mission statements and descriptions stating responsibilities,
goals and objectives (indicating direction) and performance measures (indicating
progress) are presented. Expenditure summaries list the subtotal expenditures/expenses

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