Page 20 - Hurst FY20 Approved Budget

loss of franchise tax revenue, and declines in other General Fund revenues. The adopted
General Fund budget represents a 1.24%, or $458,556 increase. The overall cost increase
includes market driven employee pay adjustments, increasing economic development
obligations, public safety equipment, increasing health care costs, and other miscellaneous
increases. On an annual basis, Human Resources conducts surveys several neighboring
cities to assess the competitiveness of pay and benefits and supported a modest 2.5% COLA.
Other pay adjustments occurred related to internal reorganizations, retirements, promotions
and other changes related to internal organizational structure and work assignments. The
employee value proposition for Hurst employees remains competitive in comparison to
similar cities. Hurst remains committed to our people by continuing to ensure they receive
competitive wages and opportunities for professional development. The City Council and the
city’s executive management team understand that out employees are our most important
asset.

The city will continue to move forward with capital replacement programs with final City
Manager approval throughout the year. Approved 2019-2020 capital expenditures and
infrastructure maintenance projects within the General Fund total $3.7 million. Maintenance
of streets, facilities, fleet, and technology hardware will cost approximately $8.1 million
citywide. Ongoing investments in infrastructure maintenance helps extend its useful life
prior to more expensive replacement.

Debt Service Fund

The Debt Service Fund accounts for a dedicated portion of the ad valorem (property) tax
that are reserved to pay principal and interest on the city’s tax supported indebtedness.
Refinancing over the past decade has provided substantial savings for the city. Staff and City
Council evaluate the city’s tax rate, debt position, and infrastructure needs on an annual basis.
Bonds are issued for capital projects, including public safety, public works infrastructure,
facilities and other assets.

• During 2014-2015, $4.915 million of General Obligation bonds were refunded yielding
ap-proximately $261,674 in savings for the General Debt Service Fund. The city
issued a total of $3 million in debt for Public Works projects including improvements
to Pipeline Road and miscellaneous Water and Sanitary Sewer Replacements.

• During 2015-2016, most of the 2008 debt issued was refunded in the amount of $12.6
mil-lion resulting in approximately $2.1 million in savings for the General Debt Service
Fund, Enterprise Fund, Hotel/Motel Fund, and Half-Cent Community Services Fund. The
city is-sued a total of $5.4 million in debt for Community Services projects such as the
renovation of Central Aquatics Center and the Roof Repair at the Recreation Center.

• During 2016-2017 bonds were issued for $1.18 million in new debt for a new
ladder truck and issued an additional $1.5 million for refunding of existing debt.

• During 2018-2019 a voter approved General Obligation bond was issued for $7.5
million to fund a new animal services facility and an additional $2 million Certificate of
Obligation was issued for road improvements based upon our pavement condition index.

The FY 2019-2020 debt service obligations increased by 19.66% over the prior year. As
mentioned above, this increase is related the GO and CO bonds issued in FY 2018-2019. Debt

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