Page 345 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

new limitations. The city has considered the use of CO’s for refunding bonds, self-supported debt
(supported by revenue other than property taxes) or to maintain or replace existing
infrastructure. Recent CO’s issued include the following:

• In 2019 and again in 2022 the issued $2 million ($4 million total) for streets and drainage
projects.
• In 2021 the city issued refunding CO’s which resulted in over $1.8 million in future debt
service costs. The city has frequently utilized refunding CO’s to reduce future debt service
obligations.
• In 2018 CO’s were issued as self-supporting bonds with revenue from our water and
wastewater operations. The city issued $1.36 million for the reconstruction and
expansion of a critical wastewater main.

Certificate of Obligation funding allows the City to maintain the outstanding quality of its street,
drainage, water and wastewater systems while remaining in-line with the goals of the City’s
multi-year financial forecast, which is included in the appendix of this document. All Certificate
of Obligation projects currently funded are discussed in the Street Bond Fund, Drainage Bond
Fund, Water and Sewer Bond Fund, Half-Cent Sales Tax Fund and Other Funding Sources sections
of this document. The descriptions included on these pages provide the reader with a detailed
explanation of each funded project.

Revenue Bonds

In the past, the City has issued Revenue Bonds backed by sales taxes restricted to the Half-Cent
Community Services Fund. The funding associated with these type revenue bonds has been
exhausted and most Community Services projects are now being completed on a pay-as-you-go
basis utilizing sales tax proceeds. The City has also issued combined tax and revenue Certificates
of Obligation in the past and all such proceeds are being carried in the Water and Sewer Bond
Fund. Certificates of Obligation, in general, can be issued by the City at a lower cost than Revenue
Bond issuance. As such, the City does not have immediate plans to issue Revenue Bonds in the
near future. Please note that associated debt service schedules can be found in the Enterprise
Fund and Other Funds sections of this document.

Alternate Funding Sources

The City of Hurst performs projects on a pay-as-you-go basis when possible. Pay-as-you-go
funding is provided largely through special revenue funds. The City has legally created special
revenue funds to account for the collection of sales taxes, hotel/motel occupancy taxes, court
technology and security fees, commercial vehicle, peg fee and park donations. The City adopted
storm water drainage fees in 2009, which are available to fund future capital projects. Each
project manager within the City is responsible for identifying grant dollars for project completion
and other needs. Aside from sales taxes, the most often used alternative funding source is the

345