Page 27 - Hurst FY20 Approved Budget

allowance. There is no change in the city’s sales tax rate as it is already equal to the maximum rate
allowed by state law (2%). The property tax rate is slightly higher than the prior year increasing
from .58 to .597299 per $100 in valuation. The rate increase will fund voter approved GO bonds
for construction of an animal services facility and street improvement bonds issued in 2019.
Personnel costs remain budgeted at full employment although vacancies will occur throughout
the year. The city also maintains strong fund balances or reserves for emergency needs.

Property Tax Revenues

Each year the General Fund works through the challenge of setting the property tax rate to fund
services and programs. The proposed budget cannot be prepared without the Certified Tax Roll
received July 25th from the Tarrant Appraisal District (TAD). Once the roll is received, the tax rate
is set based on both the debt rate needed to pay for the city’s bonded indebtedness and funds
necessary for maintenance and operations in the General Fund. The tax rate distribution for
2019-2020 allocates 80.07% of the adopted rate ($0.597299) to operations and 19.93% to debt.
This is a favorable distribution given an accepted benchmark of a 25% maximum allocated to
debt service.

From tax years 2010 through 2019, appraised values have gone up by $1.42 billion and now
total $3.99 billion. Net taxable values in tax year 2019, which fund the 2019-2020 budget,
increased 10.3%. When exemptions, protested values and the Senior Tax Freeze impacts are
considered, the net taxable value increase of approximately 10.01% is positive when compared
to conservative budget projections calling for values growth between zero and 3%. This year’s
increase represents value growth in Hurst due to strong demand for housing, a robust regional
economy and Hurst’s premier location in the Dallas/Fort Worth metroplex. The Council’s
recognition of capital and economic development needs coupled with decreasing revenue in
sales tax and court fines led the council to approve a tax rate that exceeds the effective rate. This
means the city will see an increase in total property tax revenue of $1.38 million which is being
used to off-set losses in other revenues and 380 obligations. Tax exemptions (e.g., disabled
veteran, senior citizen and homestead exemptions) offered to property owners will provide
over $7.6 million in property tax relief for the 2019-2020 budget.

The average city tax bill for a homeowner in Hurst is $962 annually or about $80 per month. This
amount is for city services only and does not include the property taxes owed for school district,
county, hospital district, or college district services. Overall, the city’s bonded indebtedness, paid
primarily through the tax rate, has increased over the past several years to fund infrastructure
improvements and new facilities. The property tax rate was lowered several times since 1992
and increases were only approved in accordance with financial plans and funding needs. Rates
levied by most neighboring cities in Tarrant County remained flat or increased each year during
this same time period. The city’s willingness to lower the tax rate in strong economic times saved
taxpayers over $25 million since 1992. In addition to tax rate relief provided during this time, the
city grants the highest exemption for homestead allowed by state law and provides additional
senior and disabled citizen exemptions. The City Council passed the senior and disabled tax cap,
which freezes Hurst taxes at the level paid when property owners become disabled or reach 65
years of age. This cap remains in effect for all future budget years, assuming this section of the
state constitution is not amended. Senior and disabled property owners in Hurst will receive
nearly $1.1 million in tax relief for the 2019-2020 fiscal year.

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