Page 11 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

September 14, 2020

To the Honorable Mayor Arthur L. Miner, Members of the City Council and the
Citizens of Watauga:

The City of Watauga’s Home Rule Charter requires the operating budget to be

submitted for Council consideration by August 1, 2020. The Annual Budget for
the Fiscal Year beginning October 1, 2020 and ending September 30, 2021 presents,
in summary form, the revenues and expenditures for each of the City’s Funds,
departmental highlights, accomplishments and expenditures, as well as the five-
year Capital Improvement Plan (CIP). The Budget in Brief that follows this
message provides a concise summary of the Budget.

The FY 2020-2021 Annual Budget for the City of Watauga has proven to be one of
the City’s most challenging. There is an unprecedented amount of uncertainty
caused by the COVID-19 global pandemic. The economic impact of the pandemic has
made it necessary to address safety concerns and review programs and services and
identify cost savings. The City must continue its focus on long-term financial
sustainability. Some highlights of the budget are presented below:

x Property tax revenue has been based on maintaining or reducing the City’s
current tax rate of $0.58050 per $100 of assessed valuation. The property tax is
$0.580404 per $100 of assessed valuation.
x Significant revenue reductions are projected in sales tax, fines and forfeitures,
charges for services, and interest income.
x Certain recreational programs and services have been reduced or eliminated.
These include gym use for the public, the summer camp program, Halloween
Bash and reduced hours of operation for the Community Center. The staffing at
the Recreation Center has been reorganized due to these changes.
x 12 full-time equivalent positions have been eliminated in this budget and 8.75
full-time equivalent positions have been frozen and unfunded until economic
conditions improve. The City continues to evaluate vacancies to ensure the best
use of each position in the organization.
x Transfers to the Equipment Replacement Fund to cover motor vehicle,
technology, and equipment have not been included in the General Fund and
Crime Control and Prevention District this year in an effort to balance the

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