Page 14 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET

Debt Service Fund
This fund accounts for a dedicated portion of property taxes that are reserved to pay
principal and interest on the city’s tax supported debt. As mentioned above, a portion of
property tax revenue was shifted from debt service to maintenance and operations for the
FY 2021-2022 budget. The debt service fund has an 8.25 percent reduction in budget
associated with savings generated through strategic debt refundings and retirement of
existing debt.

Community Services Half-Cent Sales Tax Fund
This fund supports operations and projects eligible that support community development
such as parks and recreation operations and pay-as-you-go capital and infrastructure
maintenance programs. Unlike the General Fund, this fund has a single revenue source and
cannot rely upon another revenue to mitigate volatility in sales tax revenues. This fund’s
operating budget was reduced by 14.5 percent in FY 2021 to balance the budget during the
economic uncertainty of the pandemic and resulted in reduced service levels. The adopted
budget for FY 2022 restores service levels and focuses on resuming normal operations,
including our regular capital investments that support this fund. This includes funding for
the July 4th event and Phase 5 of improvements to an important business corridor. If the
Community Services special revenue sales tax were not available, the city’s property tax rate
would need to be raised by approximately 13 cents to provide the same service levels funded
in this budget.

Anti-Crime Half-Cent Sales Tax Fund
This fund is dedicated to supporting the Hurst Police Department through voter approval of
the Hurst Crime Control and Prevention District (CCPD). In 2010, voters authorized a
20-year continuance of a ½ percent sales tax portion dedicated to fund the CCPD. Voters
will again decide on the continuation of the sales tax in 2030. If this sales tax were not

renewed, the property tax rate would need to increase approximately 12 cents to ensure
continued programs and service levels from the Police Department.

The Hurst Police Department has long been at the front of modern police services, such as
being a CALEA certified agency since 1990 and providing mental health licensing,
training, and coordination for their officers. Our commitment to Community Policing has long
been supported by our citizens and represents a model that many communities are currently
considering. The City of Hurst appropriately balances enforcement of the law with community
connection.

In spite of budgetary constraints related to declining sales tax revenue associated with
economic uncertainty related to the pandemic, Police services and programs were not reduced
in FY 2021. The Texas Legislature took measures to ensure the police departments across the
state were not “defunded” resulting in a budget allocation of approximately $1 million in
reserves to ensure
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