Page 82 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

INTRAGOVERNMENTAL

The intragovernmental revenue source contributes approximately 14% to citywide revenues and
will increase 4.6% from the previous year to restore a portion of revenues that were cut in recent
years to relieve funds impacted by the economic downturn due to COVID-19. The Enterprise Fund
continues to reimburse the General Fund for a proportional share of salaries, building costs and
sundry charges that have been totally absorbed by the General Fund, but are applicable to the
enterprise operation of the City. The indirect cost allocation category also contains a cost
allocation transfer from the Community Services Half Cent Sales Tax Fund and Anti-Crime Half
Cent Sales Tax Fund that will reimburse the General Fund for salary, maintenance and operation
costs. The Hurst Conference Center, Fleet Fund, Commercial Vehicle Fund and the Storm
Drainage Utility Fund also participate in a projected reimbursement of overhead costs related to
their operations.

WATER AND SEWER REVENUES

Water and Sewer revenues are received primarily from water sales to City utility customers and
sewer charges. Fiscal year 2022-2023 water sales account for 19% of citywide revenues and are
projected to be higher than the previous year budget. Sewer charges account for 11% of citywide
revenues. Water and Sewer revenues overall are projected to increase 4.1%. Other revenue
sources consist of penalties, service and miscellaneous fees and investment earnings. The
increase is due primarily to the City of Fort Worth proposing a wholesale water and sewer rate
increase. The financial policy objective for water and wastewater rates is to ensure that rates are
adequate to meet all operating needs; to meet or exceed bond covenant tests and to provide
sufficient working capital levels to be fiscally responsible; and to provide a reliable and fiscally
strong utility system.

COMMUNITY SERVICES HALF CENT SALES TAX REVENUES

For nearly two decades, the Community Services half percent (Half Cent) sales tax revenue has
been a contributing factor to the City's positive financial condition. Sales tax receipts are
projected to be $5,500,000 for fiscal year 2022-2023. This figure is net of the portion of the Simon
Properties revenue sharing agreement allocated to the Community Services Half Cent Sales Tax
fund. Revenues were conservatively estimated to ensure financial stability. Use of the funds is
restricted to Community Services' purposes but provides significant tax relief to Hurst citizens. If
this revenue source was not available, the property tax rate would need to be raised
approximately 13 cents to fund the current 2022-2023 operating budget.

ANTI-CRIME HALF CENT SALES TAX

The Anti-Crime Half Cent Sales Tax is in its fourteenth full year as a revenue source and will
provide tax relief to the General Fund by funding expanded crime prevention and enforcement
programs. Overwhelming and continued voter support of the Anti-Crime half percent sales tax in

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