Page 12 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

budgets. The transfers have been included in the baseline budgets for the Water
and Sewer Fund and the Storm Drain Fund.
x Salary increases (merit/cola) are not included in this year’s budget due to budget
constraints. Continuation of the step program is included for public safety
personnel.
x Supplemental programs were evaluated and only included if the request was
essential to operations.
x Recommended capital improvement project funding is included. The majority of
capital items are funded by debt issuance proceeds. These include continuation
of infrastructure projects (streets, water, sewer, drainage) and facility
improvements at the Fire Station, Parks facility and Library. Economic
development projects are in partnership with the Economic Development
Corporation, and include the restaurant incubator site, continuation of branding
signs in the City and completion of a splash pad installation that began in
FY2019-2020. The incubator site’s goal is to promote economic activity in the
City by providing a temporary location for restaurant entrepreneurs with minimal
startup costs.
x Critical capital outlay items such as vehicles, equipment, and technology were
funded by the equipment replacement fund and the 2020 Certificates of
Obligation issuance.

In spite of the challenges we are facing this year, this spending plan reflects our
commitment to provide quality services and amenities to our residents, while enhancing
our organization’s long-term financial sustainability. The objectives used in developing
this budget were to present a balanced budget with prudent revenue and expenditure
estimates and aligns with the City Council’s Strategic Plan priorities and initiatives.

The Budget for the Fiscal Year 2020-2021 connects the priorities and financial
planning as outlined in the Council Strategic Planning Session. The primary
concerns while preparing this budget were continuing as many programs and services
for our citizens as feasible within budgetary constraints, maintaining appropriate staffing
levels, and maintaining reserve levels in accordance with the City’s fiscal policies.
Services provided by the City include fire and police protection, emergency medical
services, planning and zoning, economic development, code compliance, street
maintenance, water and wastewater services, parks, recreation, library, and senior
citizen services.

Strategic Direction

Setting long-term priorities for the City is one of the most important responsibilities for
Watauga’s elected officials. In September, 2019 Council met to discuss top priority
goals for the City. By focusing on goals and strategic initiatives, Council and staff are
able to position the community in a positive direction. These goals guide financial and
operational decisions to achieve community excellence. Following are the City
Council’s goals and strategic initiatives, which are supported in the budget:

5