Page 353 - Hurst Budget FY21

CAPITAL IMPROVEMENTS PROGRAM FUNDING

Due to the nature and total cost of approved projects, General Obligation Bonds, Certificates of Obligation and
Revenue Bonds are major sources of funding. In an effort to reduce the issuance of future debt, for reasons
previously discussed, the City pursues other sources of capital funding. This includes State & Federal grants,
interlocal agreements, sales taxes, donations, and the use of excess operating revenues to finance projects on a
pay-as-you-go basis. The following information provides a summary of past and future debt issuance and identifies
the types of projects funded primarily through debt. Alternative sources of funding for capital projects are also
discussed.

2012 Bond Election (General Obligation)

On May 12, 2012, voters approved $16.5 million to construct a Justice Center and related parking facilities. The
facility is approximately 61,000 square feet and includes the police department and municipal court. There is also a
parking garage constructed to handle police, employee and visitor parking. The new center opened in February
2015.

2019 Bond Election (General Obligation)

In 2019, Voters approved $7.5 million to construct a new Animal Control Center. The facility is approximately 8,300
square feet.
Public Property Finance Contractual Obligations, Series 2020

Issued to purchase a new Fire Engine.

Certificates of Obligation

In 2019, $2 million in Certificates of Obligation were issued for miscellaneous streets and drainage. Certificate of
Obligation funding allows the City to maintain the outstanding quality of its street, drainage, water and wastewater
systems while remaining in-line with the goals of the City’s multi-year financial forecast, which is included in the
appendix of this document. All Certificate of Obligation projects currently funded are discussed in the Street Bond
Fund, Drainage Bond Fund, Water and Sewer Bond Fund, Half-Cent Sales Tax Fund and Other Funding Sources
sections of this document. The descriptions included on these pages provide the reader with a detailed explanation
of each funded project.

Revenue Bonds

In the past, the City has issued Revenue Bonds backed by sales taxes restricted to the Half-Cent Community
Services Fund. The funding associated with these type revenue bonds has been exhausted and most Community
Services projects are now being completed on a pay-as-you-go basis utilizing sales tax proceeds. The City has also
issued combined tax and revenue Certificates of Obligation in the past and all such proceeds are being carried in
the Water and Sewer Bond Fund. Certificates of Obligation, in general, can be issued by the City at a lower cost
than Revenue Bond issuance. As such, the City does not have immediate plans to issue Revenue Bonds in the
near future. Please note that associated debt service schedules can be found in the Enterprise Fund and Other
Funds sections of this document.

Alternate Funding Sources

The City of Hurst performs projects on a pay-as-you-go basis when possible. Pay-as-you-go funding is provided
largely through special revenue funds. The City has legally created special revenue funds to account for the
collection of sales taxes, hotel/motel occupancy taxes, court technology and security fees, commercial vehicle, peg
fee and park donations. The City adopted storm water drainage fees in 2009, which are available to fund future
capital projects. Each project manager within the City is responsible for identifying grant dollars for project
completion and other needs. Aside from sales taxes, the most often used alternative funding source is the Special
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