Page 80 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

decade. The North East Mall and Shops at North East Mall are the primary retail centers within
the City.

Traffic counts have grown from 176,000 cars per day to 230,000 since Hurst’s most significant
highway that connects Dallas and Ft Worth was expanded. The expansion of Highway 183/121
completed in October of 2014 and the resulting redevelopment of Hurst’s highest trafficked
intersection of Precinct Line Road and the Highway, also known as the 50-yard line, created one
of the City’s most exciting redevelopment opportunities ever. To date, sixteen new restaurants
have been established at this prominent intersection.

For fiscal year 2023, 115 new businesses opened in Hurst over a 12-month period occupying
408,000 square feet and driving occupancy to a high of 95.8%. $24.6M in new commercial
construction was completed. 6.3M.S.F of the total retail inventory of space which equates to
6.6M.S.F. is occupied.

Hurst Crossing, a new shopping center opened in 2017 and has a new Chick-fil-A, Care Now with
a Natural Grocers and Rusty Tacos. Four new shopping centers including Hurst Crossing have
opened in 2017-18 including ones at Hwy 26 and Antwerp, a new 9,000 s.f. shopping center next
to In-n–Out Burger along Hwy 121/183 and the Corner Bakery shopping center on Precinct Line
in front of Super Target.

2019/20 has been a tough time for North East Mall. Sears claimed bankruptcy and closed their
store and Nordstrom closed their store when their 20-year lease expired. The owners, Simon
Property Group, have done a good job of keeping their center leased even after losing two of
their six anchor department stores.

The City does not budget for full collection of sales taxes. The City’s conservative strategy is to
budget approximately $1,000,000, or 10%, less than projected sales tax revenue and include
conservative collections overall. This strategy places the net 2022-2023 General Fund sales tax
budget in a position to absorb economic losses without a reduction in service levels. Franchise
Taxes are collected primarily from utilities and are fees charged for the privilege of continued use
of public property and municipal rights of way. Most franchise fees at set by the State of Texas
and Hurst collects the amounts prescribed by state law. However, our solid waste franchise fees
are established in our contract with our solid waste hauler and are equal to 10% of gross
revenues. Franchise revenues account for 7% of General Fund revenues and are projected to
increase from the prior year’s budget.

As a group, General Property Taxes, Consumer Taxes, and Franchise Taxes account for 75.84% of
the General Fund revenues for FY 23. They are projected to increase by approximately 8.73%
from the previous year's budget

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