Page 78 - Hurst FY20 Approved Budget

inter-department and inter-fund transfers during the fiscal year, if necessary.

Budget Process continued

STRATEGIC PLANNING PROCESS

On March 2, 2019, the City Council met with City Management to review the Council’s goals and
establish long-term Strategic Plans. These Plans focus on improving current services,
implementing new services, and planning new initiatives to enhance the Quality of Life in the City
of Hurst. City departments utilize those Strategic Plans to define service levels, update short-
term divisional objectives, and propose budget enhancements during the budget process.

BUDGET PREPARATION

The functions of preparing and analyzing the 2019-2020 budget were performed by the City
Manager's Office and Budget Department. The budget process was initiated on March 25, 2019,
during the Staff Planning Session. Department heads were updated on the City Council’s
Strategic Plans and budget preparation packets were distributed. After careful re-estimation of
fiscal year 2018-2019 expenditures and revenues, each projected line item was justified with cost
estimates to provide current service levels for the new-year. Any increases or decreases from
the prior year’s budget were explained. In May, the departments submitted preliminary 2019-
2020 budgets with Supplemental Program Requests. Meetings were held with each department
to review each line item for both the current budget and the proposed budget to determine if
service levels were to be maintained, improved, or reduced. Revenues were projected as
accurately as possible in order to set priorities for proposed expenditures. After final review by
the City Manager, issues were addressed in workshops held with the City Council during the
month of August.

MULTI-YEAR FINANCIAL PLAN

Multi-year projections have become an integral part of the budget process as estimates of future
financial operating conditions are provided to the City Council. Historical data, as reconciled to
the CAFR, plus growth assumptions for each line item are combined to provide projections that
indicate the City's future fiscal position. The multi-year projections identify any potential problem
in matching projected revenues with anticipated growth in expenditures. One important result of
the multi-year financial overview has been the ability to project when tax supported bonds can be
sold while stabilizing the tax rate, therefore, drawing together the operating budgets and the
Capital Improvements Program. Also, alternative tax rate strategies have been addressed during
recent Multi-Year Financial Reviews, which assisted in balancing future budgets.

In May, the Department Directors prepared the additional four-year budgetary projection based
on current budget and anticipated growth factors. This information was utilized in the annual
Multi-Year Financial Overview presented to the City Council on August 18th. Selected Multi-Year
Financial Overview schedules are located in the Long Term Strategic Planning section.

PUBLIC HEARING AND BUDGET ADOPTION

On August 10th, the City Council reviewed the Preliminary Budget and set a time and place for
the Public Hearing. The City Council voted on and approved the budget on September 10th with
the final reading on September 24th. After the budget's adoption, monthly financial reports are
issued so that the budget can be monitored and controlled during the fiscal year.

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