Page 14 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

¾ Improve Community Involvement – this initiative includes developing more
volunteer opportunities for citizens and continued funding for a citizen survey
every three years.

¾ Improve the City Brand – funding for branding signs are included in this year’s
budget. The City is focusing on developing a marketing strategy to promote the
City.

¾ Attract, retain and motivate qualified staff – a Personnel Improvement Plan is
included with this budget to identify areas of staffing needs for all City
departments. An employee satisfaction survey will be conducted this fiscal year.

¾ The 5-year Capital Improvement Plan outlines efforts to continue infrastructure
improvements such as water, wastewater, street, and storm drain capital
improvements. In addition, economic development projects such as a restaurant
incubator site and a pedestrian bridge project are included in the plan. Quality of
life projects such as trails, park lighting, and other parks projects are included in
this year’s funding. The City will continue to seek grant opportunities for funding
of capital projects.

Planning for the Future

Even with the challenges presented by the COVID-19 global pandemic, the City’s
financial condition remains strong. Over the last few years, the City has experienced
property valuation increases and Fiscal Year 2021 (Tax Year 2020) reflected growth of
1.5% in net taxable property values. Fiscal Year 2020 (Tax Year 2019) provided for an
increase of 13.8% growth in the City’s net taxable property values in large part due to
the completion of Parkview Estates, a 55-home development in the northern part of the
City. The same builder is planning for a 70-home single family residential development
that will be located on Hightower Drive. The development will add significant benefit to
the City by adding new quality housing with improved streetscapes, new sidewalks, and
greenspace. Some smaller residential developments are currently underway. Future
commercial development includes a new office park, Magnolia Office Park. This 3.596
acre of land is located less than two miles from Interstate 820. The owner will initially
develop two to four lots and continue development with demonstrated demand.

Although the economy is expected to begin a slow recovery in Fiscal Year 2021, there
are numerous variables that merit a cautious approach when developing the current
year budget with a long-term outlook. These include:

o The near build-out status of the City requires a strategic approach to attracting
new development and revitalization of existing businesses.

o Sales taxes are expected to remain at a lower level than prior to the pandemic
due to continued shifts in consumer spending and behaviors. The transition in

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