Page 85 - Hurst Budget FY21

For fiscal year 2019, 127 new businesses opened in Hurst over a 12-month period occupying
$447,000 square feet and driving occupancy to a high of 94.5%. $28M in new commercial
construction was completed. 6.3M.S.F of the total retail
inventory of space which equates to 6.6M.S.F. is occupied.

Hurst Crossing, a new shopping center opened in 2017 and has a new Chick-fil-A, Care Now
with a Natural Grocers and Rusty Tacos. Four new shopping centers including Hurst Crossing
have opened in 2017-18 including ones at Hwy 26 and Antwerp, a new 9,000 s.f. shopping
center next to In-n–Out Burger along Hwy 121/183 and the Corner Bakery shopping center on
Precinct Line in front of Super Target.

2019/20 has been a tough time for North East Mall. Sears claimed bankruptcy and closed their
store and Nordstrom closed their store when their 20-year lease expired. The owners, Simon
Property Group, have done a good job of keeping their center leased even after losing two of
their six anchor department stores.

The City does not budget for full collection of sales taxes. The budgeted reserve of $1,000,000
and conservative collections, place the net 2020-2021 General Fund sales tax budget in a
position to absorb economic losses without a reduction in service levels.

Franchise Taxes are collected primarily from
utilities and are fees charged for the privilege of Total General Fund
continued use of public property and municipal
rights of way. Most franchise fees at set by the Tax Revenue
State of Texas and Hurst collects the amounts
prescribed by state law. However, our solid waste 40
franchise fees are established in our contract with 30
our solid waste hauler and are equal to 10% of
gross revenues. Franchise revenues account for 20
7% of General Fund revenues and are projected to 10
increase from the prior year’s budget.
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2016 2017 2018 2019 2020 2021
As a group, General Property Taxes, Consumer EST. PROJ.
Taxes, and Franchise Taxes account for 73% of
the General Fund revenues for fiscal year 2020-2021. They are projected to increase by
approximately 0.78% from the previous year's budget. The effect of the sales.

LICENSES AND PERMITS

License and permit revenues include fees charged by the City for business licenses and permits
for general construction. Fees are charged for City inspection of electrical, plumbing, and
mechanical installations. This category accounts for 2% of General Fund revenues. The
Building Inspections/Neighborhood Services division continues to focus on code enforcement
and inspections of redevelopment projects within the City. Overall Licenses and Permits is
projected to increase 8.58% in 2020-2021.

CHARGES FOR SERVICES

Service Charges include the fees charged by the City for the public use of services and
facilities. Charges to developers for rezoning and plat review activities are included in this
category as are revenues from the sale of maps and codes. Fee structured programs in
community services are also included in this category. Due to the impact of COVID-19,
revenues for this category are projected to decline -15.81%. Charges for Services accounts for
5% of General Fund Revenues.

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