Page 17 - Cover 3.psd
P. 17

ADOPTED | BOOK


          October 1, 2022

          Honorable Mayor and Members of City Council

          City of North Richland Hills
          North Richland Hills, Texas



          The letter I wrote to you in 2021 detailed the City of North Richland Hills dealing with the uncertainty
          of a post-pandemic society. In the last year we have started to realize the impacts of an almost post-
          COVID world. I write this budget overview with the understanding that two major issues are currently
          driving decisions in all industries: the cost of goods and the availability (or lack thereof) of workers.
          These two issues have framed much of the budget we are presenting to you at this time. Fortunately,
          while we face these very real issues, we are also experiencing the largest increase in revenues in
          years.

          Overview

          Retail Activity


          While retail activity took a downturn at the start of the pandemic two years ago, it rebounded quickly
          and has been growing  steadily. Analysis and comparison of  the numbers show that sales tax
          revenues have increased more since January 2020 than they did during the entire decade from
          2010 through 2019. The adopted budget includes a projected increase in sales taxes for the General
          Fund of just over $1,000,000 with a corresponding $500,000 increase in both the Crime Control
          District (CCD) Fund and the Park Development Fund. While we are very pleased with this recent
          growth, we are painfully aware of the fickle nature of sales tax revenues should the economy take
          a downturn. In order to keep from overextending our revenue estimates, the adopted budget keeps
          sales tax revenue flat compared to the current year-end projection for FY 2021/22.

          Property Value Growth

          Assessed values have increased significantly as a result of an unprecedented real estate market.
          The total net taxable value in North Richland Hills increased by $725,053,545 from 2021 to 2022.
          The average market value for a single-family home grew by 14.65% during the same time period.
          Adding to the impact of overall increases in values, during the last fiscal year the city was able to
          close two Tax Increment Financing Districts. This transfer of existing property value to the General
          and Debt Service Fund enhanced the city’s flexibility to with property tax rates. While there may
          have been some panic when people received their property value assessments from TAD, the vast
          majority of NRH taxpayers will see a very minor increase in their actual tax bill. As property values
          increase, the tax rate was decreased to offset much of the appraised value increase. The adopted
          tax rate is 4.23% lower than the previous year. In addition, the City Council approved an increase
          in the Homestead Exemption from 15% to the state allowed maximum amount of 20%. Also, just
          under 30% of NRH homes are subject to the Senior or Disabled Persons Tax Cap. All of these


                                                             17                                      NRH  | TEXAS
   12   13   14   15   16   17   18   19   20   21   22