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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