Page 257 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

COMMUNITY SERVICES HALF CENT SALES TAX FUND
The Community Services Half Cent Sales Tax Fund is a Special Revenue Fund established to record
receipts collected by the State for a one-half percent sales tax on taxable items sold within Hurst.
The tax was authorized by voter referendum on January 16, 1993 by a three to one margin.

Previously, in 1991, the State Legislature had approved an amendment to the Development
Corporation Act of 1979 (Article 5190.6, Vernon Civil Statutes) to allow qualifying cities to impose,
with voter approval, an additional one-half cent sales tax for projects as defined by 4B of the Act,
primarily Parks and Recreation projects, if their sales tax rate at the time of the election does not
exceed 7.25%. Commonly known as the "Arlington Stadium Bill," the legislation was a special law
that only applied to cities in counties with a minimum population of 750,000 - Tarrant, Harris,
Dallas, and Bexar. The legislation was important to Hurst because the city had over $14 million
of deferred parks and recreation projects that were unfunded. Of primary significance, the tax
was viewed by the City Council and City Staff as an opportunity to ensure property tax relief to
Hurst citizens. Due to voter approval of the legislation, the Community Services Half Cent Sales
Tax provides facilities and infrastructure improvements that would normally be funded by the
General Fund or not financed at all. Revenues from the sales tax also pay for debt principal and
interest cost for Revenue Bonds issued under Section 4B of the legislation.

A major consideration was the impact of the tax on the City's current General Fund operating
budget with the addition of new facilities and programs. Since there are two main components
of any large capital project, the construction costs and the ongoing maintenance and operation
costs, there was concern that provision for maintenance and operation costs were left out of the
original legislation. During the Seventy-Third State Legislative session, the City of Hurst Mayor,
City Council, and Staff were instrumental in working for the passage of H.B. 2297 (originally H.B.
1177) that allows the expenditure of Section 4B sales tax on maintenance and operations costs
of publicly owned and operated projects that are purchased or constructed with the proceeds of
the sales tax. This amendment to Section 4B of Article 5190.6 provides significant benefits for all
cities in the State that have enacted the tax or will enact the tax in the future.

After passage of the tax, the Hurst Community Development Corporation was formed and is
comprised of four City Council members and two citizen members. By-laws for the Corporation
were written and structured within the framework of the Development Corporation Act of 1979,
Section 4B (2). A Multi-Year Financial Plan was developed by the City Council as a guide for the
Corporation's charge of carrying out the issuance of debt and the funding of approved projects.
In fiscal year 2013-2014, $7.5 million in Certificates of Obligation were issued to replace the pool
at Chisholm Park. Four million was issued during fiscal year 2015-2016 to renovate the pool at
Central Park as well as $1.4 million to repair the roof at the Recreation Center. Also, in fiscal year
2015-2016, $ 5.2 million in 2008 CO’s were refunded providing $963,870 in savings.

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