Page 19 - Hurst FY20 Approved Budget

included a Mental Health Coordinator, the Tarrant County Auto Theft Task Force, and Highway
10 landscaping. Grant proceeds vary from year-to-year and grants for fiscal year 2019-2020 are
expected to fall within traditional levels and will primarily fund infrastructure and public safety
needs.

Major Operating Funds

The 2019-2020 primary operational and debt service budgets listed in the table below total
$75,508,789, which represents a 1.08% increase from the previous year. The increase is primarily
related to voter approved debt for the new animal services center and other bonds issued for
critical street projects. Budgeted expenditures in the city’s two largest operating funds, the
General and Enterprise Funds, represent an average increase of only 1.65%.

Fund Budget 2017-2018 Budget 2018-2019 % Change
General Fund $37,045,966 $37,504,522 1.24%
Debt Service Fund 3,226,086 3,860,410 19.66%
CS Half-Cent Sales Tax Fund 5,657,288 4,921,177 -13.01%
Enterprise Fund 23,178,124 23,656,065 2.06%
AC Half-Cent Sales Tax Fund 5,593,663 5,566,615 -.48%
Total 74,701,127 75,508,789 1.08%

General Fund

During the outset of the budget process, the city’s executive team was instructed to bring
forward a General Fund budget that maintained the high quality services our community
has come to expect. However, they were also instructed to highlight any cost increases
required to continue to maintain service levels and justify the increase through the Strategic
Plan. This process yielded reasonable budget increase as outlined below. Additionally, the
General Fund was challenged with stagnating sales tax and unexpected loss of franchise tax
revenue mandated by state legislation. With the exception of economic recessions, sales
tax revenue grew steadily for many years. However, more retail competition in the region
and a regional mall entering a redevelopment phase has stabilized sales tax revenue growth.
Regardless of economic condition, the city will continue to conservatively budget a sales
tax reserve. This practice has allowed the city to handle declines in sales tax revenue growth
while building reserves. The closing of Sears at North East Mall is having an impact on sales
tax earnings. But under the visionary leadership of our City Council, staff has been active
in the business community recruiting private partners for new developments and rehab of
existing commercial properties. In fact, representatives from Simon Property Group continue
to work with the city as they plan for future use of the Sears space and other improvements at
North East Mall. Recent renovations to the JC Penney’s store have brought national attention
to this new flagship model and we are hearing positive reports on the store’s performance.
We are also working with national retailers to occupy the space left behind from the closure
Toys ‘R’ Us and Babies ‘R’ Us. We remain proactive in mitigating risks related to sales tax and
will continue our conservative budget approach.

Property values increased again in 2019 providing additional ad valorem tax revenue to offset
stagnating sales taxes with potential losses from announced store closures, state mandated

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