Page 17 - N. Richland Hills General Budget

Office of the City Manager
CITY OF NORTH RICHLAND HILLS

workforce is a priority; however, with the lack of available funding and impacts of the COVID-19 pandemic felt
by our citizens, we feel there is no other choice at this time. Freezing of salaries is seen as a temporary
solution, and cannot be sustained without reducing our service capabilities and/or quality.
Replacement of Library materials has remained at a steady figure for several years in spite of the escalating
cost of materials. In order to address this situation without impacting the budget, the Library is freezing a part-
time staff position so that the salary can be redirected toward the purchase of materials.

For the first time in 17 years the Self Insurance Fund will not require an increase in premiums from either the
City or employees. Changes in the plan combined with a positive claims experience over the past two years
has allowed the Self Insurance Fund to re-establish adequate reserves. A 5% increase in health insurance
premiums would have added $367,379 to the General Fund. In addition, this same 5% increase would have
cost an employee with family coverage $382 over the next year. Avoiding a premium increase in health
insurance is probably a temporary phenomenon, but it is very welcome this year as both the City and
employees will be working without an increase in salary.

The only new program or position that is included for funding in the General Fund is the addition of a Child
Crimes Detective, which is partially grant funded. When children are the victims of violent crimes, prosecuting
offenders is often complicated due to the child's inability to describe their victimization, compounded by the
reality that family members and/or close family friends are often the suspect. Child crime investigations require
a specialized response from detectives with advanced training on forensic interview techniques along with
superior working relationships with local advocacy groups, children’s hospitals, and the Tarrant County District
Attorney’s Office. Currently, juvenile victim cases are assigned to existing detectives in the Crimes Against
Persons unit. The addition of a dedicated child crimes detective will provide needed case load relief, ensuring
we maintain the highest quality of investigative services and best possible rate of offender arrests. The
Department has received a DOJ COPS Hiring Grant providing $125,000 (total) over three years to offset the
expense of adding this detective position.
Utility Fund

For several years the Utility Fund experienced increasing supply costs from our two providers, the City of Fort
Worth and the Trinity River Authority, along with water sales being at or below 2012 levels when
regional conservation began. This resulted in reserves being used to balance the budget and necessitated
the use of debt to pay for capital projects that previously had been funded with cash. It was determined that
the structure of our rates made us overly dependent on hot, dry summers and would not sustain the Utility
Fund operations long-term. The base rate in place did not even cover the cost of the 2,000 gallons of
water included in the base rate, nor did it cover fixed costs such as metering and billing. As a result, in 2019
City Council approved a $5.50 increase in the water base rate and a $2 increase in the sewer base rate.
Making these changes has stabilized the revenue in the Utility Fund and positioned us to be able to cash fund
more capital projects in the future, saving the City interest expense on debt.
Crime Control & Prevention District Fund

The Crime Control & Prevention District (CCPD) is funded through a 0.5% sales tax to provide supplemental
public safety resources in addition to the General Fund Budget. The district was approved by NRH voters for
a 20-year term in 2010 meaning that the CCPD will be in place through 2030. Over the past few years the

P.O. Box 82069  North Richland Hills, Texas 76182-0609
4301 City Point Drive  (817) 427-6003  Fax (817) 427-6016

17