Page 84 - Hurst Budget FY21

REVENUE

DESCRIPTIONS, EVALUATIONS AND PROJECTIONS

TAXES

The revenues from taxes are classified as General Property Taxes, Consumer Taxes and
Franchise Taxes in the General Fund operating budget. These charges are levied to
provide for general municipal services and benefits to the citizens.

General Property Taxes are assessed on real and personal property as of January 1 each
year. The $0.504186 tax rate for the General Fund is 80.65% of the total tax rate of
$0.625159 per $100 valuation and is set by the City Council. This tax is established by
ordinances and comprises 44% of the 2020-2021 General Fund revenues. Property tax
collections are projected to increase by 6.12% from the previous year's budget. The
approved tax rate for 2020-2021 was increased $0.02786 from $0.597299 to $0.625159 as
compared to the prior year. Private developers continue to make substantial investment in
areas where the City has done the same. The budget includes a property tax collection
rate of 98.5%, which is equal to the previous year.

Each year the tax rate, as approved by the City Council, is largely dependent upon revaluation
by the Tarrant Appraisal District to reflect current market values. For tax years 2010 to 2020, a
cumulative increase in property values of approximately $1.51 billion or $151 million per year
was recorded.

All tax information relative to
budgetary decisions is not available Billions Appraised Property Valuation
until July 25th of each year when the
certified tax roll is received from the $4.40
Chief Appraiser. At that time, other $4.20 4 4.1
revenue sources and expenditure $4.00
priorities are considered in preparing $3.80 3.6
a tax rate for the new budget year. $3.60 3.4
$3.40
Consumer Taxes are collected by the 3.1
State from the sale of goods and $3.20
services. The General Fund receives $3.00 2.77 2.76
the following portions of these taxes $2.80 2.59 2.57 2.6 2.66
from the State: Sales Tax - 1% of $2.60
each dollar taxed within the City, and $2.40
Mixed Beverage Tax - 1.5% (or $2.20
10.7143% of the State’s 14%) of $2.00
each dollar taxed within the City. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Sales tax revenues are the second
largest source 24% of General Fund Tax Year
revenues and have been significantly
affected by aggressive retail development during the last decade. The North East Mall and
Shops at North East Mall are the primary retail centers within the City.

Traffic counts have grown from 176,000 cars per day to 230,000 since Hurst’s most significant
highway that connects Dallas and Ft Worth was expanded. The expansion of Highway 183/121
completed in October of 2014 and the resulting redevelopment of Hurst’s highest trafficked
intersection of Precinct Line Road and the Highway, also known as the 50-yard line, created
one of the City’s most exciting redevelopment opportunities ever. To date, sixteen new
restaurants have been established at this prominent intersection.
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