Page 325 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

Debt Issuance

The following summarizes the City’s debt issuances and refunding’s over the past decade.

• In 2012-2013 $7.83 million of General Obligation bonds were refunded resulting in
approximately $226,000 in savings for the General Debt Service Fund.
• During 2014-2015, $4.915 million of General Obligation bonds were refunded resulting in
approximately $261,674 in savings for the General Debt Service Fund. The City issued a
total of $3 million in debt for Public Works projects such as the continual widening and
development of Pipeline Road, as well as, miscellaneous Water and Sanitary Sewer
Replacements.
• During 2015-2016, most of the 2008 debt issued was refunded in the amount of $12.555
million were refunded resulting in approximately $2.1 million in savings for the General
Debt Service Fund, Enterprise Fund, Hotel/Motel Fund, and Half-Cent Community
Services Fund. The City issued a total of $5.4 million in debt for Community Services
projects such as the renovation of Central Aquatics Center and the Roof Repair at the
Recreation Center.
• During 2016-2017, the city issued tax notes in the amount of $1.18 million for the
purchase of a new 100-foot ladder truck for Fire.
• During 2018-2019, the city issued $7.5 million in voter approved GO Bonds for the
construction of a new Animal Control Center. The city also issued $2 million in certificates
of obligation for infrastructure improvements.
• In 2020, Public Property Finance Contractual Obligations of $575,000 were issued for a
replacement Fire Engine.
• In 2021 Refunding Bonds were issued on a taxable basis for $13.5 million. While issued as
a taxable bond, the rates provided sufficient costs savings that the refunding bonds
provided nearly $1 million in interest cost savings.
• In 2022 Street Certificates of Obligation were issued to continue to support priority
streets and drainage projects.

The total property tax rate and the portion of the rate allocated to debt service have remained
relatively stable over the past ten years with fluctuations based upon changes in value, the
economy, and service levels. New commercial and residential development, combined with net
increases in appraised values of existing properties have increased property tax revenues over
the last ten years, allowing the City to grant tax relief (e.g., maximum homestead exemption and
senior and disabled tax ceiling) while at the same time collecting sufficient revenue to fund
operations and capital expenditures. Over the past decade the total tax rate been in the $0.60
range. The rated peaked in FY 20 at $0.625159 and was decreased in FY 22 and FY 23. Over the
past 20 years the rate has increased seven times. Four increases were related to voter approved
bonds, and two increases were related to lost revenue associated with economic conditions.
Over that same time period, the tax rate has been decreased six times typically corresponding
with increase in taxable value.

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