Page 26 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

same as prior year, which provided some relief for the City. No baseline salary
increases were included in this year’s budget.

In addition, the General Fund expenditures include $50,000 of contingency funds for
unforeseen events or emergency purchases during the year. Transfers from the
General Fund have been decreased this fiscal year to ensure fund balance reserves
remain at an acceptable level. Transfers will not be made this year to the Capital
Projects Fund to pay for the debt service for the Rufe Snow Street Project, a City of
North Richland Hills project, and miscellaneous engineering services. Instead, these
costs will be covered by Capital Projects Fund reserves created by interest earnings
over the past several years. The only transfer from General Fund to other funds is a
transfer to the Capital Projects Fund for sidewalk replacements in the amount of
$100,000.

This year, all line items in non-departmental division were evaluated and moved to the
managing department that handles that expense item. This was a reallocation and had
no overall impact on the budget.

There will be a utilization of fund balance in the amount of $1,889 proposed for this year
and the projected ending fund balance for FY2020-2021 is $4,644,292, which equates
to 35% of operating expenditures in reserves. This is above the minimum target policy
of twenty-five percent (25%) by an amount of $1,268,823.

General Fund Debt Service Fund

The City has existing long-term debt issued for the construction of capital facilities,
infrastructure, and vehicles and equipment. The debt service requirement for principal
and interest payments for Fiscal Year 2020-2021 totals $2,957,206. This amount
includes debt service for a proposed 2020 Certificates of Obligation debt issuance for
projects included in the General Capital Project Fund and listed below. The ending
fund balance is projected to be $721,569.

General Capital Projects Fund

The following projects will be funded this year:

9 This year the sidewalk program will be funded at $100,000.
9 Engineering costs have been funded at $25,000 in anticipation of additional
needs throughout the City.
9 Continuation of the Whitley Road street projects, parks projects, including a
splash pad and trails will be funded by the 2016, 2018, and 2020 Certificates of
Obligation proceeds. These projects have continued from prior years.
9 The Fire Station Renovation Project is funded at $750,000 by the 2020 proposed
Certificates of Obligation.
9 The restaurant incubator site project is funded at $500,000 by the 2020 proposed
Certificates of Obligation.

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