Page 5 - Proposed budget cover and insert sheets

MEMORANDUM

TO: Honorable Mayor and City Council

FROM: Clay Caruthers, City Manager

DATE: July 12, 2024

RE: FY 2024-2025 Preliminary Budget

The city’s annual planning process kicked off in January with the citizen survey and
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continued on March 22 with the City Council’s strategic planning session. During
this meeting we discussed the survey results and the Council’s interest to continue
focusing on public safety, infrastructure maintenance, and excellent customer service
through the Hurst Way.

Using Council’s feedback and survey information, I directed the executive team to
prepare budget requests that are consistent with community and Council priorities
with an emphasis on maintaining services while making various improvements that
address Council’s priorities. In addition to the Council’s strategic priorities, I asked
staff to focus on operating under the Hurst Way and our Code of Ideals. In recent
years we have grappled with significant turnover in staff as we worked through the
impacts of “The Great Resignation”. I am pleased with efforts to stabilize existing
workforce and increased efforts for recruitment; however, it is necessary that we
continue to maintain our culture in Hurst in order to attract and retain talent.

The preliminary General Fund budget includes an increase of 3.86% and results in a
10-year average increase of 3.04%. The latest municipal cost index continues to
indicate the 10-year average MCI will outpace our 10-year average budget increase
and remains below the 10-year average CPI increase.

Market-based price increases for wages, goods, and services are included within the
preliminary budget and we anticipate we will remain competitive in the municipal
labor market. We continue to grapple with the effects of inflation, especially with
health care and in the software and technology market place. As more vendors move
towards the software as a service model, we continue to see significant cost increases
that impact the operational budgets. We have faced fierce competition in our local
market and with the private sector; however, we are starting to see private market
labor making the switch to local government employment. This is especially true in