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APPROVED BUDGET FISCAL YEAR 2022-2023

BUDGETARY
FINANCIAL POLICY GUIDELINES

Numerous financial policy guidelines are followed for the fiscal management of the City and
enable the City to maintain financial stability. They are reviewed annually. The policies are long
standing and provide guidelines for current decision-making processes and future plans. Some of
the most significant guidelines pertaining to the budget are as follows:

OPERATING BUDGET POLICIES

Balanced Budget

The Budget should be balanced with revenues being equal to or greater than current
expenditures/expenses using the following strategies in order of priority: improve productivity,
shift the service or payment burden away from the city, improve revenues, create new service
fees or raise existing fees based on the cost of services, reduce or eliminate programs, use fund
balances, if available, increase property taxes, and lastly, reduce or eliminate services.

The 2022-2023 budget was balanced primarily due to conservative expenditure budgeting
combined with growth in both property and sales tax revenues. There are two significant sales
tax funds that provide property tax relief to the General Fund. The Community Services Half-Cent
Sales Tax fund supports divisions within the Community Services Department. Sales tax revenue
in this fund is budgeted at $5,500,000, which would need to be absorbed by the General Fund to
maintain the same service levels. Similarly, the Anti-Crime Half-Cent Sales Tax fund supports our
community policing initiatives and includes sales tax revenue funds budgeted at $5,500,000, In
total, these two funds represent approximately .28 cents in property tax rate relief to our citizens.

These sources are examples of a "service or payment burden being shifted away from the City"
since an estimated 75% of the half percent sales tax revenues are collected from consumers who
shop in Hurst but live outside the City. Expenditures continue to be conservatively estimated with
every dollar backed by written justification.

General and Administrative Charges

The General Fund is compensated by the Enterprise Fund, Fleet Service Fund, Anti-Crime Fund,
Half Cent Sales Tax Fund, Storm Water Management Fund, Hurst Conference Center Fund and
Commercial Vehicle Inspection Fund for the general and administrative services provided such as
management, finance and personnel, as well as the use of City streets by Enterprise Operations.
The following intragovernmental revenue transfers for 2022-2023 are budgeted:

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