Page 21 - Hurst FY20 Approved Budget

service is expected to remain flat in FY 2020-2021 then decrease each year through maturity;
however, if additional debt becomes necessary, decreases in debt service may be applied
to future debt service obligations. As we work through our debt management program we
anticipate debt will be needed in the future in order to maintain our high quality roads and
facilities.

Community Services Half-Cent Sales Tax Fund

The Community Services Half-Cent Sales Tax Fund historically has seen large variances
from year to year based upon debt funded projects and other pay-as-you go capital and
infrastructure maintenance programs. The number and scope of pay-go projects varies from
year-to-year, which typically creates large “budget swings” within this fund. A detailed listing
of pay-as-you go projects can be found in the other funds section of this document. This
fund maintains a reserve to overcome losses in sales tax revenue. Unlike the General Fund,
this fund has a single revenue source and cannot rely upon another revenue to mitigate
losses in sales tax revenues.

The adopted budget for the Community Services Half-Cent Sales Tax Fund also includes the
previously discussed 2.5% salary adjustment and routine replacement of equipment for the
parks and recreation divisions. In addition to typical operational and maintenance costs,
this fund will also support investments in the Citiworks Management System, 2020 Project
Development, and Trail Master Plan. Total capital outlays for 2019-2020 are budgeted at
$300,190.

New debt is only issued as current debt is paid off and pay-as-you-go programming is
scaled back. As such, debt funded projects and debt capacity will continue to be closely
monitored as sales tax revenue stagnates and is budgeted for a minor decrease in 2019-2020.
In addition, multi-year financial plans are in place that call for new hotel tax revenue to lessen
the Community Services Half-Cent Sales Tax Fund’s debt service obligations. The 2019-2020
budget will focus on maintaining our investments and programs. The fund’s total budget
of $4.9 million includes operations, pay-as-you-go projects, and the annual debt service
payment for projects.

If the Community Services special revenue sales tax were not available, the city’s property
tax rate would need to be raised by approximately 15 cents to fund the programs currently
underway. The city is projected to receive about $5.16 million in gross sales tax revenues in
fiscal year 2019-2020 from this source. Economic Development incentives in the amount of
$327,165 will need to be deducted from the overall revenue generated.

Anti-Crime Half-Cent Sales Tax Fund

The Anti-Crime Half-Cent Sales Tax Fund budget will see a minor increase of just over
$85,000 which is less than 2%. The increase results from an additional grant funded crime
victim liaison position. Currently there is only one position that supports the cities of Hurst,
Euless, and Bedford through mutual aid agreements. The additional position will allow for
greater coverage working in shifts and improved services and assistance to victims. With sales
tax revenue expected to stagnate in FY 2019-2020, grant funds were required to support the
position. The grant will cover a two-year period at which point the position and funding will
be reevaluated. With an additional grant funded position we are able to increase victim’s
assistance services while continuing to maintain all other services without any significant

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