Page 85 - Hurst FY20 Approved Budget

FINANCIAL PLAN

PURPOSE OF FINANCIAL PLAN

The main purpose of a financial plan is to guide the City in financing cost effective services,
programs and capital needs, while focusing on a stabilized tax levy and appropriate levels for fees
and service charges as prescribed by approved financial objectives. The annual audit, internal
audits, and review of Monthly Financial Reports assure the compliance of financial objectives.

FUND ACCOUNTING

All City accounts are organized on the basis of funds, or account groups, and each is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self-balancing accounts. Using these accounts, the revenues and expenditures/expenses are
budgeted and approved before the beginning of each fiscal year by an ordinance passed by the City
Council.

The various funds are primarily grouped by two types, governmental fund and proprietary fund
types. Governmental funds finance most of the City's functions and include, but are not limited to,
the General Fund, Debt Service Fund, Special Revenue Fund, and Capital Projects Funds.
Proprietary funds are used to account for the City's organizations and activities which are similar to
those often found in the private sector. The Enterprise Fund is the City's main proprietary fund and
the Hurst Conference Center, Storm Drainage Utility, Information Technology, Fleet Services, and
Loss Reserve funds are the remaining proprietary funds. Governmental accounting further classifies
funds into major and non-major categories. The City’s major operating funds include: the General
Fund, Community Services, Half Cent Sales Tax Fund, Anti-Crime Fund, and Enterprise Fund. All
other debt service, capital projects and operational funds are considered non-major. Descriptions of
all funds are included in the respective sections along with supporting information and in-depth
analysis.

OPERATIONAL STRUCTURE

Each operational fund is comprised of departments, which are major organizational units of the City.
Each department has overall management responsibility for one or more divisions. For all divisions,
mission statements and descriptions stating responsibilities, goals and objectives (indicating
direction) and performance measures (indicating progress) are presented. Expenditure summaries
list the subtotal expenditures/expenses for categories such as personnel services, materials and
supplies and capital outlay. Personnel summaries indicate the title and number of full-time
equivalent positions in each division. Program analyses are also provided highlighting the past
2018-2019 budget, the current and future level of service, cost savings measures, new programs
and capital outlay for the 2019-2020 budget, future projects and plans/expectations for the division.
The following chart indicates the funds included in each section of the budget with their respective
departments and divisions, if applicable.

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