Page 342 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

CAPITAL IMPROVEMENTS PROGRAM SUMMARY

The City of Hurst Capital Improvements Program (CIP) is a process by which the City develops a
plan for major capital expenditures that matches available resources and satisfies City tax rate
objectives. The CIP attempts to identify and plan for major capital needs that are known and can
reasonably become funded through the use of various capital funding programs. Generally, the
CIP includes improvements costing $100,000 or more, that are debt funded, that are non-
recurring and have a multi-year useful life resulting in fixed assets. These include the construction
and acquisition of new buildings, additions or renovations of existing buildings, construction and
reconstruction of streets, water and sanitary sewer improvements, drainage improvements, land
purchases and major equipment purchases. Projects are identified for funding through staff
analysis, citizen input and meetings with City Council and Boards and Commissions. The lists
herein are categorized by funding source and project type.

THE CITY’S GENERAL APPROACH AND OPERATING IMPACT OVERVIEW

The CIP for the City of Hurst is focused on adding value and extending life of City infrastructure
with minimal increase in current operating costs. Funds in the Street Bond Fund are expended
for reconstruction work on major streets and the resurfacing of roads with no anticipated
operating costs. The Drainage Improvements Program also has a positive impact on maintenance
costs for the General Fund with the addition of concrete lined drainage channels in place of
“natural” channels, which typically require a more substantial amount of landscape maintenance.
For the Enterprise Fund, the replacement of water and wastewater mains is a necessary
component of maintaining our utility infrastructure and helps manage our routine operating
costs in the annual budget. A positive impact to future operating costs is realized upon the
completion of street, drainage, and water and wastewater improvements due to the upgrade or
replacement of aged and sometimes malfunctioning infrastructure with newer more functional
infrastructure. In prior years, major debt-related CIP projects have been timed so that debt
issuance would not increase the property tax rate. In other words, debt service costs are
scheduled to have as little impact annually as possible on taxpayers. Operations and maintenance
revenues are also stabilized as a result of not having to shift tax revenues to the City’s interest
and sinking funds to cover debt service payments. Again, CIP projects financed through property
tax supported debt indirectly impact the operating budget through the payment of principal and
interest on the incurred debt. Funding sources other than debt are utilized when possible to
minimize debt-related operating impact.

Selection of funded projects will be achieved based upon that projects proposed funding source.
As outlined above, priority projects include those necessary to add value or extend the useful life
of the City’s infrastructure. However, certain projects are necessary due to the condition of
existing facilities or changes in service demand levels. Typically, City Council will rely upon the
recommendation of the City Manager and the executive team regarding project priorities;
however, citizen feedback and various boards may provide insight to priority projects based upon

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