Page 12 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET

BUDGET OVERVIEW

The 2021-2022 budget continues to reflect the City Council's conservative fiscal policies. The
major objectives of the budget process are to identify cost saving measures while providing
funding to implement the City Council’s strategic plans. The FY 2021-2022 budget includes a
detailed focus on restoring services to pre-pandemic levels where possible. For example, the FY
2020-2021 budget included cost reductions associated with frozen vacancies and delayed or
deferred capital projects and an effort to reduce programming to absorb projected losses in sales
tax revenue and fees associated with reduced services. The FY 2022 budget focuses on restoring
services, frozen vacancies, and capital projects. In addition to restoring services, the budget also

includes efforts to sustain market driven total rewards programs and efforts to mitigate the
impact of inflationary pressures. The economy continues to be effected by inflation generally;
however, wage inflation is a particular challenge for any service-based organization with
personnel costs being a considerable portion of the budget. To mitigate the effects of wage
inflation, the budget includes a 2.5 percent cost of living adjustment and a one-time lump sum
wage payment of one percent annualized wages plus an additional $1,000 for full time employees
and $500 for part time employees.

Public Safety remains a top priority for Council and for the community at large, based upon our
annual survey. The FY 2021-2022 budget maintains baseline funding for all public safety while
also providing the cost of living and one-time payments outlined above. Continued funding for
public safety is also consistent with legislative mandates to maintain police funding at the
municipal level.

Additional budget considerations include a two percent rate increase for water and waste water
rates to offset increase in wholesale costs, funding in our special projects fund to support capital
projects for life/safety improvements to our existing facilities, and reserves identified for future
emergency preparedness and unfunded state legislative mandates, including emergency power

generation. These mandates are the result of state efforts to avoid future emergency demands
on our power grid during extreme weather events.

Funding from the American Recovery Plan Act (ARPA) provided an important tool for help
to ensure financial sustainability during the economic downturn associated with the pandemic.
ARPA funds will be prioritized to support various capital projects and restore lost revenue in
major funds. Restoring lost revenue provides financial flexibility to maintain and restore
services to pre-pandemic levels. This will be especially important for the Hurst Conference
Center. With the shuttered economy the conference center was shut down for a large

portion of FY 2020-2021. Tarrant County opened up a mass vaccination site that kept the
conference center operational;

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