Page 68 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET

Consumer Taxes

Consumer Taxes are from the sale of goods and services in the City of Hurst. Sales tax revenues are the
second largest source, 23 percent of General Fund revenues. While Sales Tax revenue was not as
affected by the pandemic as predicted, the City has seen a loss in Sales Tax revenue over the last
several fiscal years due to aggressive retail development in neighboring communities. However, since
the City does not budget for full collection of sales taxes, with the budgeted reserve of $1,000,000,
the sales tax budget is able to absorb economic losses without a reduction in service levels.

One positive trend in terms of sales tax has been the expansion of retail along a major west to east
traffic corridor. The expansion of Highway 183/121 completed in October of 2014 and the
resulting redevelopment of Hurst’s highest trafficked intersection of Precinct Line Road and the
Highway, created one of the City’s most exciting redevelopment opportunities in years.

Franchise Taxes

Franchise Taxes are collected primarily from utilities and are fees charged for the privilege of
continued use of public property and municipal rights of way. Most franchise fees at set by the State of
Texas and Hurst collects the amounts prescribed by state law. However, our solid waste
franchise fees are established in our contract with our solid waste hauler and are equal to
10 percent of gross revenues. Franchise revenues account for seven percent of General Fund revenues
and are projected to increase from the prior year’s budget.
As a group, General Property Taxes, Consumer Taxes, and Franchise Taxes account for 75 percent of the
General Fund revenues for the FY 2022 budget.

LICENSES AND PERMITS

License and permit revenues include fees charged by the City for business licenses and permits for
general construction. Fees are charged for City inspection of electrical, plumbing, and
mechanical installations. This category accounts for two percent of General Fund revenues.
The Building Inspections/Neighborhood Services division continues to focus on code enforcement
and inspections of redevelopment projects within the City. Overall Licenses and Permits is only
projected to increase a little over one percent. This is due to the City being built out for
residential properties and the slowdown of commercial growth.

CHARGES FOR SERVICES

Service Charges include the fees charged by the City for the public use of services and facilities.
Charges to developers for rezoning and plat review activities are included in this category as are
revenues from the sale of maps and codes. Fee structured programs in community services are also
included in this category. Revenues for this category are projected to increase over three percent as
more services are restored from pre-pandemic levels. Charges for Services accounts for five percent of
General Fund Revenues.

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