Page 17 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

Budget-in-Brief

This budget reflects the positive financial condition of the City and utilizes sound fiscal
policies and a conservative approach in revenue and expenditure forecasting. For
FY2020-2021, the City’s budget provides for continued programs and service and a
reduction in the tax rate by $0.000096 (from $0.58050/$100 valuation to
$0.580404/$100 valuation). The proposed rate will also provide additional funding for
capital improvement and equipment needs.

This budget is a fluid document that is changing and moving on a constant basis and
serves as a guide for the following twelve-month period. We utilize past history, present
conditions, and expected future trends in preparing estimated revenues. Once revenues
are developed, we then evaluate costs associated with the delivery of existing services,
any new and expanded costs or programs, and new programs established by Council.
Within the limited resources available, we adjust the costs to achieve a balanced
budget. The budget document, even after adoption, is still an estimated financial plan
and is always subject to change by amendment. More often than not, elements within
the body of the document will change throughout the year. Changes in economic
conditions, new projects, project overruns, emergencies and unforeseen events can
necessitate a budget amendment.

This budget document and financial plan for FY2020-2021 has been developed and
constructed in such a way as to balance revenues to expenditures with minimal use of
fund balances. Typically, fund balances are used to allow for one-time needs or
liabilities that have accrued over long periods of time. When fund balances are used,
the remaining fund balances are well above the minimums approved by Council. These
balances throughout the various City’s Funds are used to provide as much economic
relief to our citizens as possible, while still providing a financially sound and strong
municipal organization.

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