Title
Consider a resolution approving and adopting Financial Policies related to the budget for FY 2021-22.
Body
The Chief Financial Officer proposes some important updates to the City’s financial policies. These policies provide a strong framework to guide fiscal and budgetary decision making. Per the policy, these are reviewed and adopted annually in conjunction with the adoption of the City of Round Rock annual budget.
The changes are summarized below.
1) Add historic preservation designations in the HOT fund. The recommendation includes a one-time designation of excess fund balance in the amount of $300,000, plus an annual operating set aside equal to 3% of hotel tax revenues, net of rebates. The annual designation will create approximately $130,000 for historic preservation in FY 2022; and
2) Further limit the reliance on Dell sales tax revenues for ongoing operations in the General Fund by reducing the portion of net sales tax from Dell from 20% in FY 2021 to 15% by FY 2024. The sales tax revenues above the General Fund limit will be deposited to the City's General Self-Finance Construction Fund for one-time uses.
The Financial Policy is attached as Exhibit A.