Page 61 - Hurst Adopted FY22 Budget

financial policies

Numerous financial policy guidelines are followed for the fiscal management of the City
and enable the City to maintain financial stability. They are reviewed annually. The policies are
long standing and provide guidelines for current decision-making processes and future plans.

OPERATING BUDGET POLICIES

Balanced Budget

The General Fund budget should be balanced with revenues being equal to or greater
than current expenditures/expenses using the following strategies in order of priority:

• Improve productivity,
• Shift the service or payment burden away from the city
• Improve revenues
• Create new service fees or raise existing fees based on the cost of services
• Reduce or eliminate programs
• Use fund balances, if available
• Increase property taxes
• Reduce or eliminate services.

The Fiscal Year 2022 budget was balanced primarily due to conservative expenditure
budgeting combined with growth in property tax revenues and sales tax revenue
approaching pre-pandmic levels. The following revenue sources are major contributors to
balancing the budget and will provide savings to the General Fund in associated expenses.

• Community Services Half Cent Sales Tax Fund will provide savings of $3,692,288
• Anti-Crime Half Cent Sales Tax Fund will provide a savings of $4,991,710

These sources are examples of shifting a service or payment burden away from the City as
an estimated 75 percent of the half-percent sales tax revenues are collected from consumers
who shop in Hurst but live outside the City. Expenditures continue to be conservatively
estimated with every dollar backed by written justification.

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