Page 99 - Hurst FY20 Approved Budget

INTRAGOVERNMENTAL

The intragovernmental revenue source contributes 17% to citywide revenues and is projected to
decrease (2.12%) from the previous year. The Enterprise Fund continues to reimburse the
General Fund for a proportional share of salaries, building costs and sundry charges that have
been totally absorbed by the General Fund, but are applicable to the enterprise operation of the
City. The indirect cost allocation category also contains a cost allocation transfer from the
Community Services Half Cent Sales Tax Fund, Anti-Crime Half Cent Sales Tax Fund, Hurst
Conference Center, Fleet Fund, Storm Water Management Fund, and Commercial Vehicle Fund
will reimburse the General Fund for salary, maintenance and operation costs.

WATER AND SEWER REVENUES

Water and Sewer revenues are received primarily from water sales to City utility customers and
sewer charges. Fiscal year 2019-20 water sales account for 17% of citywide revenues and are
projected to be lower than the previous year budget primarily due to weather patterns and a
decrease in water rates. Sewer charges account for 10% of citywide revenues and are projected
to increase 3.7% due to increased wholesale costs. Other revenue sources consist of penalties,
service and miscellaneous fees and investment earnings. The financial policy objective for water
and wastewater rates is to ensure that rates are adequate to meet all operating needs; to meet
or exceed bond covenant tests and to provide sufficient working capital levels to be fiscally
responsible; and to provide a reliable and fiscally strong utility system.

COMMUNITY SERVICES HALF CENT SALES TAX REVENUES

For nearly two decades, the Community Services half percent (Half Cent) sales tax revenue has
been a contributing factor to the City's positive financial condition. Sales tax receipts are projected
to be $4,833,937 for fiscal year 2019-2020. This figure is net of the portion of the Simon
Properties revenue sharing agreement allocated to the Community Services Half Cent Sales Tax
fund. Revenues were conservatively estimated to ensure financial stability. Use of the funds is
restricted to Community Services' purposes but provides significant tax relief to Hurst citizens. If
this revenue source was not available, the property tax rate would need to be raised fifteen cents
to fund the current 2019-2020 operating budget.

ANTI-CRIME HALF CENT SALES TAX

The Anti-Crime Half Cent Sales Tax is in its twenty-ninth full year as a revenue source and
will provide tax relief to the General Fund by funding expanded crime prevention and
enforcement programs. Overwhelming and continued voter support of the Anti-Crime half
percent sales tax in May 2010 resulted in a twenty-year extension of the program. This tax
is collected primarily from non-resident consumers and is not included in the sharing
agreement with North East Mall. So, the City receives full benefit from the half-cent tax levied
on applicable sales and services. Fiscal year 2019-2020 sales tax revenues are projected at
$5,243,970. Legislation allows the Anti-crime Fund to impose local sales and use tax on the
residential use of gas and electricity. It is estimated that this will generate an additional
$150,000 per year. If this revenue source were not available, the property tax rate would
need to be raised fifteen cents to fund the 2019-2020 related expenditures.

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