1. City of Hurst Budget Public Hearing Fiscal Year October 1, 2012 – September 30, 2013

2. Budget Preparation Process March 3 March 28 - 30 May 7 May - June June - July July 25 August 4 August 21 August 28 September 4 September 11 September 25 City Council Strategic Planning Session Staff Strategic Planning Session Departments Submit Budget Budgets Reviewed Preliminary Budget Prepared Certified Tax Roll Received from TAD Multi-Year Financial Planning Work Session City Council Budget Workshop Public Hearing Held on Budget & Tax Rate 2 nd Required Public Hearing on Tax Rate First Reading, Budget Adoption Final Reading, Budget Adoption

3. Budget Preparation Process General Fund Debt Service Fund Community Services Half Cent Sales Tax Fund Anti-Crime Half Cent Sales Tax Fund (Public Hearing Held & Budget Adopted) Enterprise Fund Primary Operating Funds - Other operating funds are included in the preliminary budget located on the City’s website and filed with the City Secretary’s Office and Library.

4. General Fund $31,626,545 1.22% Increase

5. General Fund Budget Changes 2003-20134.97%.98% 8.15% 4.41% 5.67% 5.43% 5.43% -1.04% -1.04% -1.2% -1.2% 1.27% 1.27% 1.22% 1.22% 2.32% 2.32% $ Millions

6. Budget vs. Municipal Cost Index (MCI) Type20082009201020112012Avg. MCI % Change 8.11%-4.33%3.41%4.99%1.30%2.70% Budget % Change 5.43%2.32%-1.04%-1.02%1.27%1.39% Primary Increases/Decreases Over Multiple Years New Senior Center; New Fire Station; Expanded Library Space Added 4 Senior Center Staff, 1 Police Officer, Economic Development Director New Equipment and Information Systems Cost Reductions: SDU Cost Sharing, Remove Staff Vacancies, TMRS Changes americancityandcounty.com

7. General Fund Expenditures Primary Changes Reductions  Capital Outlay  TMRS  Other Enhancements  Personnel Changes  Public Safety Equipment  Economic Development  Code Enforcement  Facilities Maintenance

8. General Fund Proposed Budget 2012-2013 Expenditure Changes Personnel Changes Equipment/Maintenance - Police Economic Development Activities I.S. Indirect Costs Equipment - Streets Vehicle - BINS Tree Lighting Ceremony Library/Rec/Senior Center Equipment Miscellaneous Costs Prior Year Capital Outlay/Equipment/Misc. TOTAL Expenditure Changes $313,460 122,300 32,600 29,897 26,505 19,130 15,400 13,620 (18,100) (174,292) $380,520

9. General Fund “Where the Money Goes”

10. Projected Per Capita Cost

11. General Fund “Where the Money Comes From”

12. General Fund Proposed Budget 2012-2013 Revenue Changes Taxes$399,675  Property  Sales/Consumer Taxes  Simon Agreement  Mixed Beverage  Franchise $ 84,415 $326,640 $20,000 $16,620 ($48,000) Indirect Cost$107,693 Charges for Service$12,665 Intergovernmental($72,025) Licenses & Permits($52,120) Interest/Miscellaneous/Fines($15,368) TOTAL$380,520

13. General Fund Sales Tax Revenues Ten Years Amounts are net of Simon payments 2004-2013 $ Millions 04 06 05 07 10 09 08 12 Est. 11 13 Prop.

14. General Fund Sales Tax Receipts Comparison

15. Appraised Property Valuation $ Billions

16. Appraised Value Changes 1.4% TOTAL INCREASE AVERAGE HOME VALUE $133,127 (0.48% Increase)

17. Effective Tax Rate Calculation 2012 Effective Tax Rate$.5743803 2012 Rollback Rate$0.6411158 Proposed Tax Rate$.6084978

18. Proposed Tax Rate Current Rate Proposed Rate$.6084978 $.578 3 Cent Increase

19. Tax Rate History.25 Cent Tax Rate Increase Over 20 Years Over $20 million in taxpayer savings Tax Rate Tax Year Debt Related – Fire #2, Senior Center, Library, Street & Drainage, Justice Center 6% Value Decrease

20. Property Tax Rate $.608 Distribution

21. Distribution of Property Tax.6084978 Tax Rate RatePercentLevy M & O $.445369073.19%$9,835,639 Debt Service $.163128826.81%$3,602,576

22. Proposed Tax Rate Comparison Area Cities CITYCURRENTPROPOSEDCHANGE HURST 57.8 ¢ 60.8 ¢3.0 ¢ Haltom City 65.2¢67.2 ¢2.0 ¢ NRH 57 ¢61 ¢4.0 ¢ Euless 47 ¢ 0 ¢ Bedford 50.4 ¢ 0 ¢ Southlake 46.2 ¢ 0 ¢ Keller 44.2 ¢ 0 ¢ Grapevine 34.8 ¢34.6 ¢(0.2) ¢

23. Exemption Comparison CITY HOME- STEAD EXEMPTION SENIOR CITIZEN EXEMPTION DISABLED PERSON EXEMPTION SENIOR TAX FREEZE Grapevine20%$60,000$10,000NO Hurst20%35,000 YES Euless20%35,0000YES NRH15%36,000 YES Haltom City10%50,00040,000YES Keller1%40,00010,000YES Southlake075,000 YES Bedford050,0000YES

24. Exemptions Effect on Appraised Value 20122011Change Agricultural $1,438,000$1,363,000$75,000 Disabled Veteran 5,936,0005,125,000811,000 Over 65 107,785,000106,195,0001,590,000 Homestead 237,413,000238,677,000(1,264,000) Disabled Persons 5,141,0005,186,000(45,000) Community Housing Development 11,014,0008,290,0002,724,000 Pollution Control 0600(600) Other 458,000649,000(191,000) Total $369,185,000$365,485,600$3,699,400 Revenue Impact($2,246,480)($2,112,500)($133,980)

25. Senior & Disabled Citizen 2012 Net Taxable Value Frozen$ 19,893,583 Tax Rate of $0.608 AppliedX 0.6084978 / 100 Estimated Tax Relief$ 121,050 Estimated Tax Freeze Impact to 2012-2013 Budget Source: 2012 Certified Tax Rolls (Tarrant Appraisal District)

26. Overlapping Tax Rates CURRENTPROPOSEDCHANGE Hurst $.578 $.608$.030 HEB ISD 1.4141.4075(.0065) BISD 1.4251.435.010 College.14897 0 Hospital.2279TBD County.264 0

27. Overlapping Tax Rates HEB Total Property Tax Rate = $2.66 HEB ISD Tax Rate – 53% of Total Tax

28. Overlapping Tax Rates Birdville Total Property Tax Rate = $2.68 HEB ISD Tax Rate – 53% of Total Tax

29. City’s Share of Tax Burden 10 – Year History Year% 200317.8 200417.4 200517.3 200618.7 200720.6 200821.7 200921.7 201023.1 201122.0 201222.9

30. Total Tax Bill on $133,127 Home Homestead Only HEB ISDBirdville ISD City$648 County/TCC/Hospital$853 School$1,644$1,695 TOTAL$3,145$3,196

31. Residential Homeowners’ City Tax Bill Comparison CityTax RateChangeHomesteadTax Bill Southlake46.2 ¢0 ¢0%$2,345 Keller44.219 ¢0 ¢1%$1,203 Bedford50.4329 ¢0 ¢0%$800 NRH61 ¢4.0 ¢15%$779 Hurst60.8 ¢3.0 ¢20%$649 Grapevine 1 34.6 ¢(.02) ¢20%$617 Euless 2 47 ¢0 ¢20%$538 Haltom City67.2¢2.0 ¢10%$492 1 – Grapevine does not offer the senior and disabled tax freeze. 2 – Euless’ gas royalties and airport auto lease revenues are equivalent to a tax rate of 5.75 cents in Hurst.

32. 1 – Grapevine does not offer the senior and disabled tax freeze. 2 – Euless’ gas royalties and airport auto lease revenues are equivalent to a tax rate of Citizen Stockholder Certificate For an average annual investment of $649*, the Citizens of Hurst are entitled to receive these quality services: Service Monthly Cost Annual Cost Police/Judicial$15.15$182 Fire/EMS$11.00$132 Community Services$10.75$129 Other Public Services$6.00$72 Public Works/BINS$5.66$68 Debt Service$5.52$66 TOTAL$54.08$649 * Based on Average Value of $133,127

33. Average Property Owner Spends Per Month $ 54City Services $ 60Dinner for Four $ 75Cellular Phone Service $ 75Digital TV (Avg. Bill) $ 651 Round of Golf $ 160Gasoline $ 225 $ 425 Electricity (Avg. Bill) Car Payment

34. Debt Service Fund Total Required For Debt Service$3,602,576* Total To Be Paid From Taxes$3,602,576 Previous Year’s Debt$2,884,784 * Increase associated with 2012 GO Bond issuance for voter-approved Justice Center

35. General Fund Pay As You Go Street & Drainage Systems$ 692,960 Building & Equipment Maintenance522,976 Fleet & Information Services1,852,965 Capital Outlay 117,725 TOTAL$3,186,626

36. Net Bonded Debt Per Capita City of Hurst Ratio of Tax Supported Debt to Assessed Taxable Value = 2.5% Sources: 2012 Annual TML Taxation and Debt Survey (Debt Issuance through 2011) / City Websites

37. Community Services Half Cent Sales Tax Fund

38. Community Services Half Cent Sales Tax Fund Revenues $4,122,030

39. Total Sales Tax Revenues In Millions of Dollars Excluding Anti-Crime Sales Tax

40. Community Services Half Cent Sales Tax Fund * Includes Project Encumbrances from Prior Years

41. Community Services Half Cent Pay As You Go

42. Community Services Half Cent Sales Tax Fund Positive Effect on Tax Rate 19 cents

43. Tax Rate Impact Without Half Cent Sales Tax $ 0.608Proposed $ 0.190Community Services $ 0.240Crime $ 1.038 Total $ 1.038

44. Enterprise Fund $20,287,134 2.61% Increase

45. Enterprise Fund Major Cost Components as of August 28 WATER - Overall Decrease (6.14)% Water treatment by the City of Fort Worth (12.28)% Untreated water from the Tarrant County Water District 3.64% Excess Maximum Day Charge (23.12)% Excess Maximum Hour Charge 139.21% WASTEWATER - Overall Increase 27.12% Treatment by the City of Fort Worth 43.7% BOD 11.2% TSS 14.6%

46. Enterprise Fund “Where The Money Goes”

47. Enterprise Fund “Where The Money Comes From”

48. Water Sales FY 2006 represents one of the driest and hottest years on record for all seasons. Billions of Gallons

49. Residential Customers Impact Water and Sewer Rates 3.0% Increase Weather Variable Rate Smoothing Wholesale Wastewater Rate Increase

50. Enterprise Fund Pay As You Go CIP Projects

51. City Wide Pay As You Go CIP Projects 2012-2013

52. Proposed Budget Summary Primary Operating & Debt Funds

53. Proposed Budget Summary Other Enterprise & Special Revenue

54. Budget Cuts Final Review

55. 2012-2013 Budget Recaps The 12-13 Budget Allows the City To: –Maintain Minimum Reserves for 90 Days Operation –Continue Providing Outstanding Public Safety, Public Works & Other Services under the Code of Ideals –Enhance Neighborhood Services Activities –Enhance Facilities Maintenance –Expand Community Events –Continue to Retain Quality Employees