Page 26 - Hurst FY20 Approved Budget

The Fire service maintains its strong efforts in fire prevention, fire inspection, fire suppression,
and advanced life support transport, also providing exceptional 24-hour response to
community needs. The Fire department provides progressive medical support to the
community under the guidance of a medical director. All entry Firefighters are required to
be certified or licensed as a Paramedic further supporting the department’s commitment
to service. The fire service participates with area medical facilities to provide state-of-
the-art care for all types of emergency medical calls including STEMI and stroke care.

Financial risk is closely examined during the city’s annual Multi-Year Financial
Overview and Strategic Planning Process. The city has formalized recurring internal
audit strategies as objectives of that plan. The city also entered into a team-based
internal audit approach by capitalizing on the expertise of an independent and
objective outside party as well as the professional skill of staff members within
the Fiscal Services Department. For several years, a comprehensive data analysis
of accounts payable, purchasing card activity, and payroll has been prepared and
this process will continue as part of this program. The budget also includes funding
for additional internal audit projects as deemed necessary throughout the year.

In 2019-2020, staff will continue to closely monitor the national, state and local
economies. Some remain concerned that the economy could slow down during
the upcoming presidential election year. As previously mentioned, the city is also
facing in our sales tax revenue. If trends in the retail sector continue and economic
conditions worsen, the city may be affected through shrinking property and sales tax
bases and other side effects, similar to those felt during the most recent recession.
Finally, the State of Texas mandated a 3.5% property tax revenue cap beginning next
year. The approved budget is balanced conservatively with economic contingencies
existing in both revenues and expenditures. Fiscal Management Strategies are located
in the Long Term Strategic Plans and Budget Summary sections of this document.

BUDGET ISSUES

Conservative Budgeting Approach

Each year, the continuation of conservative financial and operational policies guides the
development of annual budget. This conservative approach is critical for the 2019-2020
budget due to uncertain economic conditions in the retail sector and State of Texas’ continued
legislative efforts to minimize revenue opportunities and local control. The city’s two primary
revenue sources, property tax and sales tax, are facing challenges in two different aspects; a
more competitive environment for retailers and legislative changes. Court revenue has been
in decline in recent years due to state legislative changes and national perception regarding
law enforcement. For the 2019-2020 budget, General Fund property tax revenue is expected
to increase overall by around 10% and is driven by increases in property values. This increase is
helping to offset decreases in other revenue categories and our current economic development
incentive agreements; however, future laws will impose a 3.5% revenue cap on property taxes
received by cities. Sales tax revenue is budgeted for a minor decrease of 2.3%. The adopted
budget includes a 1.5% allowance for uncollectable property tax revenue and an 11.5% reserve
(allowance) for sales tax revenue contingencies. Economic conditions have a more direct and
quicker impact on retail sales. As such, the sales tax allowance is higher than the property tax

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