Page 83 - Hurst Budget FY21

ANALYSIS OF CHANGES IN
FUND BALANCES/RETAINED EARNINGS

The following table indicates the reasons for projected changes in fund balances/retained earnings of ($3,536,751):
2019-2020 2020-2021
Fund Difference Explanation
Year End Year End
Budget balanced and provides for at least 90 days of
General Fund $8,400,000 $8,400,000 $0 operations. Any savings will be transferred to the
Special Projects Fund.
Retained earnings are expected to increase due to
anticipated water and sewer sales. The retained
Enterprise Fund $16,169,227 $16,994,998 $825,771
earnings at year end will continue to allow for 90+
days of operational funding.
Now in its 13th year of operations, the city is has not
Storm Water increased fees in the fund. The city is going look at a
Management Fund $692,655 $768,724 $76,069 fee increase to cover one-time maintenance and
drainage improvement projects.
For fiscal year 2020-2021, the City has budgeted
conservatively. The Conference Center has suffered
Conference Center Fund $1,965,517 $1,998,330 $32,813
due to COVID-19 and hope that things will improve
during 2020-2021.
The City carries a $3.1 contingency in this fund to
ensure a healthy fund balance and to fund one-time
maintenance and equipment purchases. Sales tax is
Anti-Crime Fund $5,257,000 $4,251,500 ($1,005,500)
anticipating a -17% decline during fiscal year 2020-
2021. The indirect allocation to the general fund was
reduced to help offset the sales tax decline.
Current revenues will cover 2020-2021 operating costs.
The decrease in fund balance is due to declining sales
Community Services Half $2,577,441 $2,575,764 ($1,677) tax. As with Anti-Crime, the indirect allocation to the
Cent Sales Tax
general fund was reduced. No Pay-As-You-Go
projects were approved for fiscal year 2020-2021.

Court, Public Safety and Decrease is primarily due to the discontinuation of the
Other Special Revenues $1,348,713 $1,258,963 ($89,750) Traffic Signal Safety Fund.

Depreciation is included in this change in fund
Fleet Services Fund $4,682,208 $4,895,633 $213,425 balance. For 2020-2021 $327,000 of Police and Fire
vehicles will be replaced.

Depreciation is included in this change in fund
Information Technology $3,539,844 $3,664,524 $124,680 balance. For 2020-2021 $134,600 of annual IT
Fund
equipment and one time capital outlay will be replaced.

Debt Service $427,615 $384,473 ($43,142) The decrease is due to an increase in senior freeze.

Decrease assumes that allocated funds for specific
projects will be spent and the city's policy to maintain
an $8 million dollar economic contingency reserve will
Special Projects $16,398,009 $15,058,009 ($1,340,000)
remain in effect. All planned projects require final
approval from the City Manager or Council before
commencement.

The city issued voter approved debt to fund the new
GO Infrastructure Bonds $6,114,820 $6,114,820 $0
Animal Control Shelter.
Current revenues will sufficiently offset current
Hotel Motel/Park $1,704,989 $1,839,612 $134,623 operating and debt-related expenditures. The city
Donation designates $723,800 as a debt service reserve in
Hotel/Motel Fund.

The decrease in bond bund balances are due to the
Capital Project Bond
Funds $7,750,573 $5,286,510 ($2,464,063) completion street, drainage, water and wastewater
improvement projects.
Totals $77,028,611 $73,491,860 ($3,536,751)
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