Page 69 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET

FINES

Fines are revenues received by the city mainly from Municipal Court for Class "C" misdemeanor violations
occurring within the corporate City limits. They also represent library fines that are collected during the
year. Fines account for two percent of total General Fund revenues. Projections are based on a level
adequate to make traffic enforcement effective. Municipal Court fine collections are projected to
decrease by 21 percent in FY 2022. This is due to the national trend in court philosophy and alternatives
to paying monetary fines.

WATER AND SEWER REVENUES
Water and Sewer revenues are received primarily from water sales to City utility customers
and sewer charges. This revenue is budgeted in the Enterprise Fund. In Fiscal Year 2022, water
sales account for 18 percent of citywide revenues and are projected to be higher than the
previous year budget. Sewer charges account for 11 percent of citywide revenues. Water and Sewer
revenues overall are projected to increase less than two percent.

The City Council passed an increase of two percent on retail water and sewer rates for individual
and commercial properties. This is due to the increase in the Wholesale water rates from The
City of Fort Worth, where the City purchases water. There is also an additional sewer project
whose costs are being passed on to the cities who use the larger sewer lines. The financial policy
objective for water and wastewater rates is to ensure that rates are adequate to meet all
operating needs; to meet or exceed bond covenant tests and to provide sufficient working capital
levels to be fiscally responsible; and to provide a reliable and fiscally strong utility system.

COMMUNITY SERVICES HALF CENT SALES TAX REVENUES

For nearly three decades, the Community Services half percent (Half Cent) sales tax revenue has been
a contributing factor to the City's positive financial condition. Sales tax receipts are projected
to be $5,044,586 for Fiscal Year 2022. This figure is net of the portion of the Simon Properties
revenue sharing agreement allocated to the Community Services Half Cent Sales Tax fund.
Revenues were conservatively estimated to ensure financial stability. Use of the funds is
restricted to Community Services' purposes but provides significant tax relief to Hurst citizens. If
this revenue source was not available, the property tax rate would need to be raised 13 cents to fund
the 2022 operating budget.

ANTI-CRIME HALF CENT SALES TAX

The Anti-Crime Half Cent Sales Tax is in its 27th full year as a revenue source and will provide tax
relief to the General Fund by funding expanded crime prevention and enforcement
programs. Overwhelming and continued voter support of the Anti-Crime half percent sales tax in May
2010 resulted in a twenty-year extension of the program. This tax is collected primarily from non-
resident consumers and is not included in the sharing agreement with North East Mall. So, the City
receives full benefit from the half-cent tax levied on applicable sales of goods and services. Fiscal Year
2022 sales tax revenues are projected at $4,966,710. Legislation allows the Anti-Crime Fund to impose
local sales and use tax on the residential use of gas and electricity. It is estimated that this will
generate an additional $150,000 per year. If this revenue source were not available, the property
tax rate would need to be raised 12.4 cents to fund the 2022 related expenditures.
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