Page 86 - Hurst Budget FY21

FINES

Fines are revenues received by the city mainly from Municipal Court for Class "C" misdemeanor
violations occurring within the corporate City limits. They also represent library fines that are
collected during the year. Fines account for 3% of total General Fund revenues. Projections
are based on a level adequate to make traffic enforcement effective. Municipal Court fine
collections are projected to decrease by -14.48% in fiscal year 2020-2021

MISCELLANEOUS REVENUES

Miscellaneous revenues account for 1% of revenues and consist primarily of interest earnings
from the investment of city funds. All funds of the city are constantly 100% invested in
certificates of deposit, obligations of the U.S. Treasury, discount notes, interest bearing money
market accounts, savings accounts, or in investment pools. Maturing investments continue to be
reinvested in lower yielding instruments. Staff will continue to monitor economic conditions on
an ongoing basis throughout the year.

INTRAGOVERNMENTAL

The intragovernmental revenue source contributes 15% to citywide revenues and will decrease
-16.19% from the previous year to help relive funds impacted by the economic downturn due to
COVID-19. The Enterprise Fund continues to reimburse the General Fund for a proportional
share of salaries, building costs and sundry charges that have been totally absorbed by the
General Fund, but are applicable to the enterprise operation of the City. The indirect cost
allocation category also contains a cost allocation transfer from the Community Services Half
Cent Sales Tax Fund and Anti-Crime Half Cent Sales Tax Fund that will reimburse the General
Fund for salary, maintenance and operation costs. The Hurst Conference Center, Fleet Fund,
Commercial Vehicle Fund and the Storm Drainage Utility Fund also participate in a projected
reimbursement of overhead costs related to their operations.

WATER AND SEWER REVENUES

Water and Sewer revenues are received primarily from water sales to City utility customers and
sewer charges. Fiscal year 2020-2021 water sales account for 18% of citywide revenues and
are projected to be higher than the previous year budget. Sewer charges account for 11% of
citywide revenues. Water and Sewer revenues overall are projected to increase 3.28%. Other
revenue sources consist of penalties, service and miscellaneous fees and investment earnings.
The increase is due primarily to the City of Fort Worth proposing a wholesale water and sewer
rate increase. The financial policy objective for water and wastewater rates is to ensure that
rates are adequate to meet all operating needs; to meet or exceed bond covenant tests and to
provide sufficient working capital levels to be fiscally responsible; and to provide a reliable and
fiscally strong utility system.

COMMUNITY SERVICES HALF CENT SALES TAX REVENUES

For nearly two decades, the Community Services half percent (Half Cent) sales tax revenue has
been a contributing factor to the City's positive financial condition. Sales tax receipts are
projected to be $4,173,090 for fiscal year 2020-2021. This figure is net of the portion of the
Simon Properties revenue sharing agreement allocated to the Community Services Half Cent
Sales Tax fund. Revenues were conservatively estimated to ensure financial stability. Use of
the funds is restricted to Community Services' purposes but provides significant tax relief to
Hurst citizens. If this revenue source was not available, the property tax rate would need to be
raised 13 cents to fund the current 2020-2021 operating budget.

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