Page 29 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

Fund budget in FY2021-2022. The Birdville Independent School District and
Keller Independent School District will cover the school crossing guard
program in FY2021 and beyond.

¾ Grant Funds

In FY2019-2020, the City received notification of a SAFER Grant Award that
provides for 75% funding of six Fire/EMS positions for the first 2 years of the
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grant, and 35% of funding for the 3 year of the grant. The SAFER Grant Fund,
is estimated to recognize $368,199 in revenues and expenditures this fiscal year.

The City also received a CARES Act Grant for reimbursement of COVID-19
response expenditures for fiscal years 2019-2020 and 2020-2021. It is estimated
that the City will earn and expend $356,307 in grant funds in FY2020-2021. The
Grant period is March 1, 2020 through December 31, 2020.

Proprietary Funds

¾ Storm Drainage Fund

Total charges for services are forecast to be $1,470,000 for service charges, with
total revenues of $1,505,000. The operating expenditure budget is
$809,995. This year, $2,328,697 in capital projects are included in the budget to
include the drainage portion of Whitley Road Phase 2-4, and the Drainage
Master Plan. Estimated ending fund resources are $2,572,899.

¾ Water and Sewer Fund

Total charges for services are forecast to be $8,525,000, with total revenues of
$9,026,000 and total available resources are $10,340,081. Projections are based
on historical averages and will fluctuate with usage and weather. Last year, in an
effort to cover the Utility’s fixed costs, increases were applied for residential and
commercial customers for both water and sewer base rates. The City contracts
with the City of Ft. Worth for wastewater treatment and the City of North Richland
Hills for water purchases.

Expenditures for water purchases and sewer treatment services also vary based
on customer usage and weather. Total expenses are estimated as $8,957,927.
These expenditures include an increase in our wholesale water and a decrease
in our wholesale wastewater costs by the City of Ft. Worth. Three vacant
positions in this fund are being held. Transfers are included to cover debt service
payments. This fund is in a reserve recovery mode due to increased wastewater
treatment costs attributed to inflow and infiltration issues in recent years. The
ending Fund Balance is expected to be $1,382,154. Fund balance is at a 15%
reserve level at the end of FY2020-2021, below the reserve level policy is 25%.
The City will be addressing measures to increase reserves over the next several
months.

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