Page 49 - Hurst Adopted FY22 Budget

financial plan

PURPOSE OF FINANCIAL PLAN

The main purpose of a financial plan is to guide the City in financing cost effective services,
programs and capital needs, while focusing on a stabilized tax levy and appropriate levels for fees
and service charges as prescribed by approved financial objectives. The annual audit, internal
audits, and review of Monthly Financial Reports assure the compliance of financial objectives.

FUND ACCOUNTING

All City accounts are organized on the basis of funds, or account groups, and each is considered
a separate accounting entity. The operations of each fund are accounted for with a separate set
of self-balancing accounts. Using these accounts, the revenues and expenditures/expenses are
budgeted and approved before the beginning of each fiscal year by an ordinance passed by the
City Council.

The various funds are primarily grouped by two types, governmental fund and proprietary
fund types. Governmental funds finance most of the City's functions and include:

• General Fund
• Debt Service Fund
• Special Revenue Fund
• Capital Projects Funds

Proprietary funds are used to account for the City's organizations and activities which are similar
to those often found in the private sector. The City’s proprietary funds include:

• Enterprise Fund, the City's main proprietary fund
• Hurst Conference Center
• Storm Drainage Utility Fund
• Information Technology Fund
• Fleet Services Fund
• Loss Reserve Fund

Governmental accounting further classifies funds into major and non-major categories.
The City’s major operating funds include: The General Fund, Community Services Half Cent
Sales Tax Fund, Anti-Crime Fund, and Enterprise Fund. All other debt service, capital
projects and operational funds are considered non-major.

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