Page 68 - Hurst Budget FY21

STRATEGIC PLANNING PROCESS

Due to COVID-19, City Management did not formally meet with the City Council to review the
Council’s goals and establish long-term Strategic Plans. Typically, this occurs in March and we
were under local stay at home orders. The core tenants of the Strategic Plan have not changed
significantly since 2017 and continues to focus on our mission, vision, and strategic priorities which
include redevelopment, public safety, leadership, innovation, economic vitality, and infrastructure.
The Strategic Plan also focuses on implementing the “Hurst Way” which includes a focus on
customer service, public service, and financial sustainability. City departments utilize those
Strategic Plans to define service levels, update short-term divisional objectives, and propose budget
enhancements during the budget process.

BUDGET PREPARATION

The functions of preparing and analyzing the 2020-2021 budget were performed by the City
Manager's Office and Budget Department. The budget process was initiated in mid-April after
establishing budget goals, including a goal to reduce expenditures to balance the budget in line with
our priority of economic vitality and financial sustainability. Department heads were updated on the
City Council’s Strategic Plans and budget preparation packets were distributed. After careful re-
estimation of fiscal year 2019-2020 expenditures and revenues, each projected line item was
justified with cost estimates to provide current service levels for the new-year and determine the
impact of proposed cuts necessary to balance the budget. In May, departments submitted
preliminary 2020-2021 budgets with Supplemental Program Requests and meetings were held with
each department to review each line item for both the current and proposed budget. Revenues
were projected as accurately as possible in order to set priorities for proposed expenditures. After
final review by the City Manager, issues were addressed in workshops held with the City Council
during the month of August.

MULTI-YEAR FINANCIAL PLAN

Multi-year projections have become an integral part of the budget process as estimates of future
financial operating conditions are provided to the City Council. Historical data, as reconciled to the
CAFR, plus growth assumptions for each line item are combined to provide projections that indicate
the City's future fiscal position. The multi-year projections identify any potential problem in matching
projected revenues with anticipated growth in expenditures. One important result of the multi-year
financial overview has been the ability to project when tax supported bonds can be sold while
stabilizing the tax rate, therefore, drawing together the operating budgets and the Capital
Improvements Program. Also, alternative tax rate strategies have been addressed during recent
Multi-Year Financial Reviews, which assisted in balancing future budgets.

In May, the Department Directors prepared future budgetary projections based on very conservative
assumptions. This information was utilized in the annual Multi-Year Financial Overview presented to
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the City Council on August 18 ; however, the impact of the COVID-19 pandemic illustrates how
quickly these Multi-Year plans can change. Selected Multi-Year Financial Overview schedules are
located in the Long Term Strategic Planning section.

PUBLIC HEARING AND BUDGET ADOPTION

On August 1st, the City Council reviewed the Preliminary Budget and set a time and place for the
Public Hearing. The City Council voted on and approved the budget on August 25th After the
budget's adoption, monthly financial reports are issued so that the budget can be monitored and
controlled during the fiscal year.

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