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ADOPTED | BUDGET

Capital Improvement Program Funding Plan

The City of North Richland Hills maintains a multi-year plan for the capital improvement needs of
the City. This plan is part of the ongoing effort by the City Council and Management to meet the
needs of the growing community, while stabilizing the tax burden for citizens. The strategy includes
managing the cost of capital projects, paying cash for capital projects when possible and reducing
interest expense by responsibly managing the borrowing of funds.

Funding for the Capital Improvement Program adheres to the following tenets:

 When financially feasible City cash reserves will be utilized when available to either fully or
partially fund capital projects.

 When it is necessary to finance projects through the issuance of debt, the City of North
Richland Hills will continue to utilize appropriate debt instruments that offer favorable interest
rates to the City.

 If it is necessary to issue debt, the maturity schedule will be designed to coincide with the life
of the asset being financed. Every effort will be made to structure the payback at level principal
to ensure the most rapid retirement of debt.
 Enterprise Fund project debt service will be paid or re-paid by the associated Enterprise Fund.

 General debt service fund balances will be used as needed to supplement debt payments and
issuance costs. Debt capacity will be calculated annually to ensure adequate revenues for debt
payments for both existing issues as well as prospective issues.
 Alternative sources of funding, including grants, will be sought as available and when beneficial
in lieu of or in conjunction with other funding sources for capital projects.

CIP Impact on the Operating Budget

During the development of the CIP budget, city staff works to identify and plan for impacts to the
operating budget from changes in infrastructure and major equipment purchases approved in the
Adopted CIP budget. The following information describes the impact that projects included in the
2021/2022 CIP, and related debt service, are expected to have on the operating budget.

Street & Sidewalk Projects

 The Preventive Street Maintenance Project and Preventive Street Maintenance Multi-Year
projects provide for crack sealing, slurry sealing, and asphalt or concrete overlay of selected
streets throughout the City. This annual program improves street conditions, reduces typical
roadway maintenance costs, and delays more costly street reconstruction. The 2021/2022
budget allocates $1,000,000 for funding for slurry seal for 15-25 streets, crack seal for 15-25
streets, and asphalt overlay for 12-15 streets.

 In 2021/2022, the City will complete rehabilitation and replacement of approximately 50,000
square feet of city sidewalks. These sidewalks have been determined to be in a deteriorated
state in residential and high pedestrian areas. This program improves the sidewalk conditions,
reduces maintenance cost and delays the need for costlier reconstruction.

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NRH | TEXAS