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.

The City of Richland Hills, Texas enjoys an unmatched location. It is located in the highly sought-after, “MidCities”, in the middle of Dallas and Fort Worth. Encompassing approximately 3.14 square miles in Northeast Tarrant County, the city borders the NE corner of Fort Worth, is less than 20 miles from DFW International Airport and less than 30 miles from downtown Dallas. The city fronts State Highway 183, State Highway 121 and State Highway 26 Easy access is provided to each via Interstate 820. Railroad access is currently available to the city's largest industrial park and commuter rail connects Richland Hills to downtown Fort Worth and Dallas. Very few other communities in the Metroplex can offer this combination of intermodal access to the Dallas/Fort Worth Metroplex.

Quality of life, economic development, and a safe community are some of the most important elements for the City of Richland Hills. During fiscal year 2022, two new townhome developments were approved by Council along Baker Boulevard, the City’s Tax Increment Fund or TIF. The Baker Landing Townhome development is a 69 unit single-family development. Another townhome project is RC51 Townhomes. This project will include 51 single-family homes in the TIF. These new housing developments will bring additional property tax and water/sewer revenues to the City, in addition to providing a much needed “face lift” to the boulevard.

Several new businesses made their start in the City during the past fiscal year, including a new health manufacturing company, locally owned Mexican restaurant, a new donut shop and a locally owned laundromat. The City prides itself on the small town feel with big city convenience.

Major businesses within the City of Richland Hills