Page 17 - Hurst Budget FY21

found in the other funds section of this document. This fund also maintains a sales tax reserve to
mitigate decreases in sales tax revenue. Unlike the General Fund, this fund has a single revenue
source and cannot rely upon another revenue to mitigate losses in sales tax revenues. The nature
this fund resulted in a much larger budget cut to cope with the economic impact of the pandemic.
In order to balance the budget, a 14.5% budget cut was approved by City Council. Select programs
and services were reduced and the indirect, or overhead transfer, to the General Fund was also
reduced. The adopted 2020-2021 budget for the Community Services Half-Cent Sales Tax Fund
does not include any capital outlay due to COVID-19. However, one-time costs for project
maintenance and internal service support for technology are budgeted at $768,342

New Anti-Crime Half-Cent Sales Tax Fund debt is only issued as current debt is paid off and pay-
as-you-go programming is scaled back. As such, debt funded projects and debt capacity will
continue to be closely monitored as sales tax revenue stagnates and is budgeted for a decrease in
2020-2021. The fund’s total budget of $4.2 million includes the annual debt service payment for
projects equal to $1.23 million

If the Community Services special revenue sales tax were not available, the city’s property tax rate
would need to be raised by approximately 13 cents to fund the programs currently underway. The
city is projected to receive about $4.5 million in gross sales tax revenues in fiscal year 2020-2021
from this source. This fund also supports Economic Development incentives in the amount of
$280,634 which will need to be deducted from the overall sales tax revenue generated. The
incentive payment program for North East Mall will end in FY 2022-2023

Anti-Crime Half-Cent Sales Tax Fund

The Anti-Crime Half-Cent Sales Tax Fund budget will remain flat due to the continued Council
support of our public safety programs. The Hurst Police Department has long been at the front of
modern police services, such as being a CALEA certified agency since 1990 and providing mental
health licensing, training, and coordination for their officers. Our community approach to policing
has long been supported by our citizens and represents a model that many communities are
currently considering. The City of Hurst appropriately balances enforcement of the law with
community connection. Anti-Crimes sales tax is projected to decrease 17.29% in FY 2020-2021.
In order to continue to support our public safety needs in this fund, the budget includes an allocation
of approximately $1.0 million from reserves. If sales tax revenue does not return to pre-pandemic
levels, this fund will need to consider shifting costs to the General Fund or reducing programs in
future budgets. Anti-Crime programs benefiting the community include: mental health assistance,
gang intervention, crime prevention community-based policing, domestic violence prevention and
assistance, and neighborhood and business crime watch.

The Anti-Crime Fund receives a ½% tax on retail sales within the city and voters authorized a 20-
year continuation of the tax in 2010. Sales tax revenues are project at $4.3 million in 2020-2021.
If this revenue source were unavailable, the property tax rate would need to increase approximately
12 cents to fund the programs budgeted in 2020-2021. In addition to the programs listed above,
the entire police department receives support from the Anti-Crime Fund. The Police Department
operates from our Justice Center which provides the primary facilities for our law enforcement
activities including a secure and effective Municipal Court room; improved locker rooms; more
private interview rooms; safer conditions for handling of prisoners; a much improved investigative
laboratory; a more functional dispatch center to receive and handle 911 calls; secure and covered
parking for patrol units; much needed parking for Hurst Town Center guests; and other
improvements to enhance the quality of Police and Municipal Court services.

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