Page 96 - Hurst FY20 Approved Budget

REVENUE
DESCRIPTIONS, EVALUATIONS AND PROJECTIONS

TAXES

The revenues from taxes are classified as General Property Taxes, Consumer Taxes and
Franchise Taxes in the General Fund operating budget. These charges are levied to provide
for general municipal services and benefits to the citizens.

General Property Taxes are assessed on real and personal property as of January 1 each
year. The $0.478236 tax rate for the General Fund is 80.07% of the total tax rate of
$0.597299 per $100 valuation and is set by the City Council. This tax is established by
ordinances and comprises 40% of the 2019-2020 General Fund revenues. Property tax
collections are projected to increase by 10.36% from the previous year's budget. The
approved tax rate for 2019-2020 was increased $0.017299 from $0.58 to $0.597299 as
compared to the prior year. Private developers continue to make substantial investment in
areas where the City has done the same. The budget includes a property tax collection rate
of 98.5%, which is equal to the previous year.

Each year the tax rate, as approved by the City Council, is largely dependent upon revaluation by
the Tarrant Appraisal District to reflect current market values. For tax years 2009 to 2019, a
cumulative increase in property values of approximately $1.25 billion or $125 million per year was
recorded. Tax year 2019 had an increase of approximately $374 million. This net increase
includes $10.8 million in new properties along with $350 million in higher residential and
commercial property values.

All tax information relative to
budgetary decisions is not available Billions Appraised Property Valuation
until July 25th of each year when the APPRAISED PROPERTY VALUATION
certified tax roll is received from the $4.40 Billions of Dollars
Chief Appraiser. At that time, other $4.20 4
revenue sources and expenditure $4.00 $4B
priorities are considered in preparing a $3.80 3.6 4.0
tax rate for the new budget year. $3.60 3.4 3.4 3.6
$3.40 $3B
Consumer Taxes are collected by the 2.77 2.76 3.1
3.1
State from the sale of goods and $3.20 2.59 2.57 2.6 2.66
2.75
services. The General Fund receives $3.00 2.75 2.77 2.76 $2B
the following portions of these taxes $2.80 2.59 2.57 2.6 2.66
from the State: Sales Tax - 1% of $2.60 $1B
each dollar taxed within the City, and $2.40
Mixed Beverage Tax - 1.5% (or $2.20
10.7143% of the State’s 14%) of each $2.00
2016
2011
2010
2015
2017
2013
2012
2014
dollar taxed within the City. Sales tax 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2018 2019
revenues are the second largest Tax Year
Tax Year
source 24% of General Fund
revenues and have been significantly
affected by aggressive retail development during the last decade. The North East Mall and Shops
at North East Mall are the primary retail centers within the City.

Traffic counts have grown from 176,000 cars per day to 230,000 since Hurst’s most significant
highway that connects Dallas and Ft Worth was expanded. The expansion of Highway 183/121
completed in October of 2014 and the resulting redevelopment of Hurst’s highest trafficked
intersection of Precinct Line Road and the Highway, also known as the 50-yard line, created one
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