Page 18 - N. Richland Hills General Budget

Office of the City Manager
CITY OF NORTH RICHLAND HILLS

revenue from sales taxes has not kept pace with growth in expenses, primarily related to escalating salary
costs. In order to balance the CCPD budget in 2020/21, much of the Property and Evidence Section was
shifted to the General Fund resulting in a $112,000 increase to the General Fund. Unless there is an increase
in sales tax revenue or a reduction in labor cost increases, we should anticipate that additional expenses will
need to be shifted to the General Fund.

Park and Recreation Facilities Development Fund

The closure of city facilities to prevent the spread of COVID-19 had a significant impact on the Park and
Recreation Facilities Development fund as the NRH Centre, Grand Hall and Tennis Center were closed from
March 13 through May 20. The Senior Center remains closed. The most significant reduction in revenue
results from decreased memberships at the Centre along with decreased program offerings, and decreased
enrollment at Camp NRH this summer. NRH Centre revenues are projected to decrease by $1,043,656 in the
current fiscal year, and Tennis Center revenues are projected to decrease by $127,007. These revenue losses
are partially offset by slightly better than expected sales tax revenues, an increase in park impact fee revenues
due to strong development, and an appropriation of fund balance primarily from NRH Centre reserves. The
end result is a net decrease in revenues to the Parks Fund of $977,936.

Expenditures in the revised budget have also been reduced where possible to be more in line with
the reduction in revenues. However, additional expenses were necessary at the NRH Centre, for Camp NRH
and at the Tennis Center to prepare for reopening in compliance with social distancing, increased
cleaning protocols, and occupancy limits. Part-time staff pay was eliminated or reduced during the
closures, but full-time salaried staff pay continued as they continued to work in communicating with
members as well as preparing to reopen with the proper social distancing, cleaning and safety
measures in place. Overall expenses in the Parks Fund have been revised to $8,900,589, which is a net
decrease of $579,094 compared to the current year adopted budget.
The FY 2020/21 Adopted Park Fund budget is more in line with a typical year as we anticipate normal
operations and revenues for the majority of the coming fiscal year. The majority of revenues to the Parks
Fund come from the 0.5% sales tax for parks along with NRH Centre memberships and program revenues.
We estimate sales tax revenues and NRH Centre revenues in the FY 2020/21 Adopted Budget to be
slightly above the FY 2019/20 Adopted Budget. The biggest change in revenues to the Park Fund in the
FY 2020/21 budget is the addition of Athletic Services revenues to the Parks Fund. This results from
moving the Athletic Services Division out of the General Fund and in to the Parks Fund in the coming
fiscal year. Revenues for next fiscal year also include an appropriation of Park Impact Fee Reserves for the
Richfield Park tennis court replacement, which will add pickleball courts to the park, as well as an
appropriation of Tree Mitigation Reserves to cover the additional tree planting planned in the parks next
fiscal year. Expenditures from the Park Fund next fiscal year are balanced with revenues, with 32% of
expenditures from the fund covering maintenance and operations at the NRH Centre, 38% paying for parks
and grounds maintenance, and 7% for capital projects including the Richfield Park tennis court replacement
mentioned above.
Aquatic Fund

As local businesses and organizations have been affected by the outbreak of COVID-19, so has NRH2O. A
delayed opening, coupled with occupancy restrictions and ultimately the decision to close for the season on

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