Page 63 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

City fulfilled its obligations related to the shops portion the agreement during FY 2009 which
allowed the City to begin collecting 100% of associated sales tax revenue in FY 2010. Similarly,
with fulfilling obligations related to the North East Mall sharing agreement the City can collect
100% of sales tax revenue associated with North East Mall. has periodic reductions in the sharing
percentage over time. However, the City anticipates additional partnership with North East Mall
to ensure its continued success.

Utility Rates

The City will adopt annual utility rates that will generate revenues adequate to cover operating
expenses and meet the legal requirements of bond covenants. Each year the City evaluated the
financial position of the Enterprise Fund and the operations of our water and wastewater
operations to ensure financial sustainability. This includes future needs related to water and
wastewater infrastructure and depreciation of our existing infrastructure. Included in the budget
is an annual capital investment in water distribution and wastewater collection systems. To
continue to support our annual investment in infrastructure, satisfy our debt obligations, and
ensure continued operations, the budget includes a 3% increase water and wastewater rates for
FY 2023.

Investment Policies

The City’s investment policy is more restrictive than the State’s Public Funds Investment Act. The
stated goals of the investment policy, in order of importance, are safety of principal, liquidity,
yield, and public trust. Investments made by the City will be in conformance to policies contained
in the City of Hurst Investment Policy, adopted August 23, 2022. Interest earnings are distributed
to accounting funds according to ownership of the invested dollars. This revenue is budgeted for
each fund in the annual budget. Each month, the Finance and Investment Committee meets to
review investment activity and monitor the investment policies and procedures of the City.

Other Revenue Policies
The City continually strives to obtain additional major revenue sources as a means to balance the
budget. In January 1993, voters adopted an additional 1/2 percent sales tax for Community
Services purposes. In September of 1995, voters overwhelmingly approved an additional 1/2
percent sales tax for crime control and prevention purposes and voted to extend the tax for an
additional twenty years in May 2010. In fiscal year 2008-2009, Council approved a new Storm
Water Management fee that will provide for drainage improvements throughout the City while
providing expenditure relief to the General and Debt Service Funds. User fees and charges are
reviewed annually to ensure they are comparable to the cost of providing services.

Debt Management Policies

The City’s debt management policy is conservative. It is summarized below. This policy can also
be found in the Other Funds Section of this document.

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