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ADOPTED | BOOK

Competitive Workforce

City employees are our most valuable resource, and staffing needs and compensation adjustments
are always the 800-pound gorilla in the budget. This year it is a 2,000-pound gorilla as we are seeing
more employees leaving us for other jobs, and filling these vacancies once they occur is more
challenging in this tight labor market. The major issues affecting the workforce challenges this year
are:
 Higher number of employees leaving to take other jobs
 Fewer applications being submitted and fewer applicants who meet the qualifications
 Higher salary requirements

As a result, the adopted budget includes an increase in our compensation plans in an effort to attract
and retain qualified employees.

Facilities, Equipment & Technology

The adopted budget also includes requests for facility needs, new cameras, computers, processors,
and software updates. Cybersecurity also remains an ongoing issue that will be addressed with
several additions to the budget. Facilities needs remain constant, and the increased price for
materials is not making these any easier to achieve. Equipment maintenance and replacement also
continue as our buildings continue to age. The recent extreme temperatures have been especially
taxing on our HVAC systems across the board.

Major Operating Fund Summary

General Fund

The FY 2022/2023 revenues in the General Fund are $57,947,278 and reflects an 8.2% or
$4,383,230 increase from the FY 2021/2022 Adopted Budget. Below are the revenue highlights.

 $3,622,733 increase in Property tax based on
o $895,990 of growth in existing property values
o $615,321 from new construction added to the tax roll in the last year
o $2,111,422 transfer of existing property tax previously captured in TIF 1/1A and TIF
2. These funds are now a General Fund revenue due to the closure of both TIFs.
 $1,106,786 increase in Sales tax due to forecasting the higher collection trend will continue
into the coming year.
 ($172,338) decrease in Franchise Fees driven by a decline in electrical and gas franchise
fees which are directly impacted by energy demands in the prior year.
 $267,493 increase in Licenses & Permits due to anticipated development activity levels for
FY 2022/2023 based on known upcoming development projects.
 ($706,207) decrease in Appropriation of Fund Balance due to not needing as high of an
appropriation to offset expenses as in prior year adopted.
 $307,258 increase in Miscellaneous Revenues due various changes including additional
grant funds, lease income, and use of Designated Funds for City Hall Project debt.

21 NRH | TEXAS