Page 11 - Hurst Budget FY21

How To Use This Budget continued

GENERAL FUND: This major section of the budget will show the reader how the General
Fund receives a greater variety of revenues and finances a wider range of governmental
activity than any other fund. For fiscal year 2021, the General Fund budgetary process
resulted in a decrease of 3.14% while maintaining current levels of public safety.
Unfortunately, other services will be reduced in order to help mitigate the financial impact
of the COVID-19 pandemic. The Crime Control District (Anti-Crime), Community Services
Half-Cent Sales Tax Funds and the Storm Water Management Fund will continue to provide
General Fund expenditure relief; however, they support will be reduced overall as those
respective funds also are facing economic challenges related to the pandemic.

ENTERPRISE FUND: This fund encompasses the operations of the City’s water and
wastewater system. The name of the Enterprise Fund is derived from its establishment, as
a stand-alone enterprise, where revenues are generated to cover all operating and capital
expenses of the operation, much like a private business. The task of budgeting for this fund
is a challenge, since the weather has an enormous impact on the consumption of water,
which in turn affects the purchase of treated water and sanitary sewer treatment, the fund’s
largest expenditures. The City is dependent upon an outside source for both water supply
and wastewater treatment, and their annually adjusted service charges are difficult to
predict. Sound financial management by City Officials has provided stability for this
proprietary fund over the years.

OTHER FUNDS: This section provides the reader with a detailed look at the City's internal
service, debt service and special revenue funds. Especially significant is information
concerning the Community Services Half-Cent Sales Tax Fund. The revenues generated
by one-half percent additional sales tax approved by voters in January of 1993 are largely
responsible for the extremely positive position of the budgets since that time. The impact
is felt across all funds from this revenue source and provides significant tax relief to Hurst
citizens for future as well as current budgets. On September 9, 1995, voters
overwhelmingly approved another one-half percent sales tax for crime control and
prevention purposes. In May 2010, voters approved the Anti-Crime sales tax for an
additional twenty years. The Storm Drainage Utility Fund will provide significant
improvements to the City’s drainage system during fiscal year 2020-2021 and for future
years.

CAPITAL IMPROVEMENTS: The reader can obtain an overview of all City capital
improvement projects that have been approved as funded and maintained in the City's
comprehensive "Capital Improvement Program” (CIP). Information is provided to the reader
primarily about current Public Works and Community Services projects. These projects are
funded from a variety of sources, including fund balance reserves, grants and the sale of
long-term bonds. The operating impact of projects is also summarized in this section. The
City publishes a separate CIP document providing detailed information for all funded and
unfunded projects.

APPENDIX: The Appendix contains ordinances adopting tax revenue, property tax rate,
crime control budget and water and sewer rates. The Appendix also contains the budget
glossary and Truth and Taxation Calculation.

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