FINANCIAL ASSESSMENT

The City of Richland Hills, Texas continues to be financially strong. Over the years, through sound fiscal management, the City has positioned itself well to cope with growth, create a positive atmosphere for its residents and employees, and provide greater flexibility on budgetary issues. The city can balance revenues and expenses and continue to maintain a high level of services.

Fund Balance

One measure of a city’s financial strength is the level of its fund balance. The City’s estimated fund balance in the General Fund is projected to be approximately $2.7 million as of September 30, 2023. This balance exceeds the City’s required fund balance reserve of 25% of total General Fund expenditures. The City’s Enterprise Funds (Water/Wastewater & Drainage) are projected to have a combined cash and investments balance of approximately $3.9 million at the end of fiscal year 2022-23. The cash and investments balance in the Water/Wastewater Fund exceeds the 90-day reserve requirement established by the City’s financial policies. All other funds, meet or exceed the reserve requirements as set forth in the financial policies.

Bond Ratings

The City’s bond ratings are further evidence of its financial strength. The City has received AA ratings by Standard & Poor’s Rating Services.

Debt Management Plan

The City of Richland Hills enjoys favorable bond ratings due not only to solid fund balances, but also from adoption of, and adherence to, the debt management plan adopted by the City Council. The target length of maturity of the City’s long-term debt is not to exceed 20 years or the life of the asset. In addition, the total debt service requirements in any fiscal year should not generally exceed twenty five percent (25%) of total expenditures/expenses. Details can be found in the Debt Service and Financial Policies section.

ECONOMIC GROWTH & OUTLOOK

The City of Richland Hills is enjoying the benefits of strong economic growth in the North Texas region and the state. Despite the uncertainty of the pandemic and supply chain issues, the City has continued to increase its sales tax and property tax revenues year over year. City staff worked hard to balance the budget and develop a fiscally prudent plan, which will continue to provide a wide range of quality public services for the community and continue with the commitment to quality of life through improvements to infrastructure and its parks system.