Page 28 - Hurst Budget FY21

The Fire Chief was pleased to report that the fire department had all necessary equipment, training,
and support to manage pandemic conditions. Council also made the strategic decision to maintain
funding for public safety in the FY 2020-2021 budget. While all departments were asked to make
programmatic changes to achieve budget savings, our Police, Fire, and EMS departments primary
program is to provide for safety of our community and is core to local government services.
Additionally, the pandemic made it clear that our all public safety personnel were essential to the
physical safety and health of our community. While we value all our employees and they are all
essential members of our team, the public safety programs are the essential foundation to the health
and safety of our entire community.

Fiscal Management Plan

The imperfect economy, natural disasters, health care, cost of living, and dynamic energy costs have
been the primary influences on the operating budget in recent years. The city’s financial policies
include a Fiscal Management Plan that was adopted to guard against resulting financial instability. The
plan has four levels that progressively emphasize budgetary discretion in staffing levels, compensation,
capital outlay, user fees and overall service levels. Redevelopment efforts and conservative fiscal
policy helped stabilize the city’s financial outlook in recent years. There were enhancements in service
levels, and all budget objectives were accomplished during very difficult economic times.

Various stages of the Fiscal Management Plan have been in place since the economic downturn in
2001. Fiscal year 2008-2009 began in a deepening recessionary environment. At mid-year, fiscal
responses from Levels III and IV were necessary and implemented. Mandatory budget reductions
resulted in over $600,000 savings to the General Fund. Additional fee evaluations were performed
and implemented, vacant positions were frozen indefinitely and a new storm water management fee
was implemented. Economic conditions stabilized in 2010-2011 allowing the city to return to Level I of
the plan. Sales tax revenue began rising after almost two years of decline and property values became
less volatile. The city’s proactive steps to address economic downturns allowed the General Fund to
continue operating at a surplus in all of these years. Recent concerns over sales tax revenue have
caused the city to prepare to operate under various levels of the plan. During 2019-2020 we evaluated
all our fees to help ensure a broad response to challenges in our primary revenue sources. We have
made immediate changes to fees in recreation as they were the most stagnant area of our fee structure.
Looking to FY 2020-2021 staff will further evaluate additional fees such as credit card convenience
fees, storm water utility fees, and service based fees in our Utility Billing operations. Staff will also
conduct a thorough review of the Fiscal Management Plan to ensure its relevance and applicability
under the legislative revenue caps, changes in the economy, Hurst’s focus on redevelopment, and
economic challenges associated with the pandemic. The FY 2020-2021 budget continues to support
quality services and many of the programs that Hurst residents and businesses have come to enjoy
and expect, even in the face of ongoing economic uncertainty. As the attached budget indicates, signs
of economic concern are evident and the budget remains conservative.

SUMMARY

The city’s positive financial condition attained through economic development efforts and appropriate
multi-year planning will help the city continue to provide quality city services. Staff presented a
conservative budget to City Council that includes programmatic changes and frozen positions to
achieve budget savings of 3.14%. In spite of programmatic changes, we made every effort to maintain
service levels where possible. We look forward to continual review and analysis of our operations and
financial position to determine when we can return to pre-pandemic programs and operations where
appropriate and in line with our strategic plan. The city continues to retain and attract staff that are
committed to the organization’s Code of Ideals that emphasizes a strong customer service philosophy.
The City Council and staff remain focused and committed to providing efficient and cost-effective

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