Page 12 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

GENERAL FUND: This major section of the budget will show the reader how the General Fund receives a
greater variety of revenues and finances a wider range of governmental activity than any other fund. For
FY 2023, the General Fund budget has in increase of 6.97%. Inflation, especially in the labor market is the
driving force for this increase and is well below inflationary measures. The primary goal of the budget
process for FY 2023 was to maintain current service levels and restore any remaining pandemic era cuts.
The FY 2022 budget carried forward various cuts to help offset the economic impact of the pandemic, the
remaining cuts that were restored in FY 2023 are related to maintaining our infrastructure and other
public spaces. The Crime Control District (Anti-Crime), Community Services Half-Cent Sales Tax Funds and
the Storm Water Management Fund will continue to provide General Fund expenditure relief through
intragovernmental transfers. The level of General Fund support from these funds was cut by about 20%
heading into FY 2020 and has not been fully restored. The FY 2023 budget also includes a modest 4.6%
increase in transfers from other funds to support the General Fund.

ENTERPRISE FUND: This fund encompasses the operations of the City’s water and wastewater system.
The name of the Enterprise Fund is derived from its establishment, as a stand-alone enterprise, where
revenues are generated to cover all operating and capital expenses of the operation, much like a private
business. The task of budgeting for this fund is a challenge, since the weather has an enormous impact on
the consumption of water, which in turn affects the purchase of treated water and sanitary sewer
treatment, the fund’s largest expenditures. The City is dependent upon an outside source for both water
supply and wastewater treatment, and their annually adjusted service charges are difficult to predict.
Sound financial management by City Officials has provided stability for this proprietary fund over the
years.
OTHER FUNDS: This section provides the reader with a detailed look at the City's internal service, debt
service and special revenue funds. Especially significant is information concerning the Community Services
Half-Cent Sales Tax Fund. The revenues generated by one-half percent additional sales tax approved by
voters in January of 1993 are largely responsible for the extremely positive position of the budgets since
that time. The impact is felt across all funds from this revenue source and provides significant tax relief to
Hurst citizens for future as well as current budgets. On September 9, 1995, voters overwhelmingly
approved another one-half percent sales tax for crime control and prevention purposes. In May 2010,
voters approved the Anti-Crime sales tax for an additional twenty years. The Storm Drainage Utility Fund
will provide significant improvements to the City’s drainage system during fiscal year 2020-2021 and for
future years.

CAPITAL IMPROVEMENTS: The reader can obtain an overview of all City capital improvement projects
that have been approved as funded and maintained in the City's comprehensive "Capital Improvement
Program” (CIP). Information is provided to the reader primarily about current Public Works and
Community Services projects. These projects are funded from a variety of sources, including fund balance
reserves, grants and the sale of long-term bonds. The operating impact of projects is also summarized in
this section.

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