Page 88 - Hurst FY20 Approved Budget

Financial Plan continued

FUND DESCRIPTIONS

General Fund

The General Fund is the primary operating fund of the City. The General Fund is used to
account for all revenues and expenditures not accounted for in other designated funds. It
receives a greater variety and amount of revenues and finances a wider range of governmental
activities than any other fund. The General Fund is primarily supported by the ad valorem tax,
general sales tax, franchise taxes, licenses and permits fees, fines and miscellaneous revenue
sources. General Fund expenditures support the following major functions: legislative &
judicial services, administration, general services, fiscal services, police, fire, public works and
community services. All programs which are justified, efficient and serve the needs of the
community are adequately funded. Service levels are increased substantially through indirect
participation in the General Fund by the Half Cent Sales Tax Fund and the Anti-Crime Tax
Fund.

Enterprise Fund

The Enterprise Fund is used to account for the provision of water and wastewater services to the
residents of the City. All activities necessary to provide such services are accounted for in this fund,
including, but not limited to, administration, operations, maintenance, financing and related debt
service, billing and collection. The operations of the Enterprise Fund are financed and operated in a
manner similar to private business enterprises where the expenses (including depreciation) of
providing services are recovered primarily through user charges.

Other Funds

The Internal Service funds are the Fleet Service Fund, the Information Technology Fund and the
Loss Reserve Fund. The Fleet Service Fund and Information Technology Fund were established to
charge user departments for vehicle and computer maintenance and replacement costs,
respectively. The self-funded Loss Reserve Fund records all activity for the employee health care
benefit program.

The Debt Service Fund's purpose is to provide for principal and interest payments for the City's
General long-term debt obligations.

The Fourteen Restricted Funds are the, the Special Projects Fund, the Hotel-Motel Tax Fund, the
Park Donation Fund, the Fire Grant Fund, the Police Grant Fund, the Municipal Court Building
Security Fund, the Municipal Court Technology Fund, the Juvenile Case Manager Fund, the Traffic
Signal Safety Fund, the Commercial Vehicle Inspection Fund, the Video and Cable Provider Peg
Fee Fund, the Storm Drainage Management Fund, the Community Services Half Cent Sales Tax
Fund, and the Anti-Crime Half Cent Sales Tax Fund. They were established to account for the
proceeds of specific revenue sources that are restricted to expenditures for specific purposes.

Other Proprietary or Enterprise Funds provision of water and wastewater services has
historically been the City’s only proprietary or enterprise operation. As such, the City’s budget
continues to label water and wastewater operations as the “Enterprise Fund.” The City constructed
and opened a state-of-the-art conference center in 2010. Staff will continue to classify water and
wastewater operations as the City’s Enterprise Fund, but will also account for the Hurst Conference
Center Fund as an enterprise fund.

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