Page 33 - Hurst FY20 Approved Budget

continued at this level until steps were taken to address the “Great Recession” that began in
December 2007. Fiscal year 2008-2009 began in a deepening recessionary environment. At
mid-year, fiscal responses from Levels III and IV were necessary and implemented. Mandatory
budget reductions resulted in over $600,000 savings to the General Fund. Additional fee
evaluations were performed and implemented, vacant positions were frozen indefinitely and a
new storm water management fee was implemented. Economic conditions stabilized in 2010-
2011 allowing the city to return to Level I of the plan. Sales tax revenue began rising after
almost two years of decline and property values became less volatile. The city’s proactive steps
to address economic downturns allowed the General Fund to continue operating at a surplus
in all of these years. Recent concerns over sales tax revenue have caused the city to prepare to
operate under various levels of the plan; however, sales tax revenue has stabilized but we remain
prepared to act as necessary under the guidance of the plan. During 2019-2020 we will evaluate
all our fees to help ensure a broad response to challenges in our primary revenue sources. Staff
will also conduct a thorough review of the Fiscal Management Plan to ensure its relevance and
applicability under the legislative revenue caps, changes in the economy, and Hurst’s focus on
redevelopment. The 2019-2020 budget continues to support quality services and programs
that Hurst residents and businesses have come to enjoy and expect, even in the face of ongoing
economic uncertainty. As the attached budget indicates, signs of economic concern are evident
and the budget remains conservative. The Fiscal Management plan is an important component
of the long-term strategic planning process and allows the city to proactively maintain the city’s
financial stability.

SUMMARY

The city’s positive financial condition attained through economic development efforts and
appropriate multi-year planning will help the city continue to provide quality city services. Staff
presented a conservative budget to City Council that maintains service levels in all operational
areas. The city will continue to retain and attract staff that will be committed to the organization’s
Code of Ideals that emphasizes a strong customer service philosophy. The City Council and staff
remain focused and committed to providing efficient and cost-effective services and programs
to the Citizens of Hurst as outlined in the Strategic Plan. It is our goal to protect and enhance
the city’s tax base and other important revenue sources, and to continue to monitor and adapt
to ever changing economic conditions. The city’s redevelopment programs are energizing the
entire city and staff as new city facilities are being completed and private businesses continue to
seek Hurst as a favorable location. Through these conservative and focused efforts, the city will
be able to continue to provide quality public services to all Hurst residents and guests.

Sincerely,

Clay Caruthers,
City Manager

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