Page 67 - NRH FY20 Approved Budget

BUDGET OVERVIEW

Future Issues

Bond Election

At the July 8 preliminary budget work session, the City Council provided input and direction
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regarding planning for a future bond election. Now that the new Transportation Plan has been
adopted along with the Strategic Plan and the street assessment project has been completed,
staff is in a position to combine these recommendations with previously identified projects that
have not yet been completed due to funding constraints. In addition, the Fire Department Strategic
Plan, which was adopted in 2013 and is updated annually, identifies the replacement of the city’s
two oldest fire stations (Stations No. 2 and No. 3) as upcoming projects. The department will
evaluate the feasibility of this in the coming year. In accordance with Council direction
the Capital Programs Advisory Committee has been established to review potential
projects, prioritize projects and make recommendations to the Council regarding bond
election propositions as well as the timing for an election.

The Reality of Tax Caps

The tax caps that have been discussed for years is now a reality and we will need to figure
how to work within a 3.5% growth in taxes from existing properties. While this is not
desirable and unnecessarily ties the hands of local citizens, we have had many previous years
where property value growth was less than 3.5%. The most challenging aspect of working
with restricted property tax growth is that sales taxes are not growing. The lack of sales
taxes impacts the General Fund, but it has a significant impact of the Park Development
Fund and the Crime Control District Fund. Unless the figures from out-of-state online
sales is significantly greater than we anticipate we will need to start analyzing other
sources of revenues and increasing various form of user fees. The alternative is to
eliminate or reduce selective programs and services.

Conclusion

North Richland Hills is fortunate to be experiencing economic growth and prosperity. While
major revenue sources are projected to grow in FY 2019/2020, staff continues to take a
conservative approach in projecting these numbers. The FY 2019/2020 Adopted Budget
reflects the City Council’s commitment to responsible fiscal management, while
enhancing the services that improve the quality of life for all citizens of North Richland Hills.

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