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ADOPTED | BUDGET

 The level of budgetary control is at the department level in all funds. Department’s are
responsible for remaining within their adopted budget level or revised budget level (as
approved by City Council action) unless authorized by a budget transfer approved by
the City Manager's Office.

 The General Fund should be reimbursed for administrative costs incurred in support of
operations of the other operating funds (as appropriate), including costs for
management, finance, human resources, and other administrative functions.

 Fund Balance Policy: The City maintains a fund balance policy that requires the General Fund
to maintain a minimum unassigned fund balance that is no less than 15% of the subsequent
year’s General Fund Appropriated Expenditure budget.

 Vacancy Savings Policy: Budgetary savings related to vacant positions will be swept on a
quarterly basis into Non-Departmental within each major fund in accordance with the vacancy
savings policy.

 Budget Transfer Policy: The City Manager is authorized to make inter-departmental and inter-
fund transfers during the fiscal year as deemed necessary in order to avoid over-expenditure
of particular accounts (Ordinance No. 3531). Transfers are identified, justified, and approved
through the use of the Operating and Capital Budget Adjustment Forms.

 Investment Policy: The City Council adopts the Investment Policy on an annual basis. The
policy document sets specific investment policy and strategy guidelines for the City of North
Richland Hills. The City shall manage and invest its cash with four primary objectives, listed
in the order of priority: safety, liquidity, public trust, and yield, expressed as optimization of
investment income. The safety of the principal invested always remains the primary objective.
All investments shall be designed and managed in a manner responsive to the public trust
and consistent with state and local law.

 Procurement Policy: All procurement activities are required to adhere to the City’s
Procurement Manual and State Statute. The policy identifies the requirements to seek
informal bids for procurements $3,000 to $49,999 from two historically underutilized
businesses and one North Richland Hills vendor (when available). Procurements $50,000
and up must be procured through the formal sealed bid/proposal process and be publicly
advertised.

Bond Rating Information

The City continues to maintain excellent credit ratings. The presently outstanding general obligation
debt of the City is rated “AA2” by Moody’s and “AA+” by Standard & Poor’s.

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