Page 293 - Watauga FY21 Budget

FIVE YEAR FINANCIAL FORECAST

Watauga Crime Control and Prevention District

The Crime Control and Prevention District fund includes salary plan adjustments,
health insurance increases, and continuation of existing programs. Capital
purchases include continuation of the vehicle replacement program and various
equipment needs. In May of 2020, this funding will need to be approved by
Watauga voters in order to continue for another ten years.

Watauga Economic Development Corporation Fund (Formerly Parks
Development Corporation

The ¼ Cent Sales tax revenue has been calculated with a 5% increase in
FY2021-2022 and a 1% to 2% annual increase thereafter.

In FY2018-2019, the name and focus of operation in this fund was changed by
City Council. The fund focus was shifted from Parks Development to Economic
Development. Beginning in FY2019-2020, various economic development plans
are now in place with funding for business retention and attraction. Some
personnel and general administrative costs are covered through a reimbursement
resolution between the Economic Development Corporation and General Fund.
The Economic Development Corporation funds various parks and economic
development projects and covers the debt service payments for those projects
through a line item transfer to the debt service fund.

Street Maintenance Fund

The ¼ Cent Sales tax revenue was not reauthorized in November, 2020 and thus
revenues have been adjusted in FY2020-2021 to reflect this change. The City
will place an item on the May, 2021 ballot to propose the ¼ cent sales tax be
reallocated to the General Fund. If authorized, the General Fund will cover the
street maintenance expenses through this funding source.

Expenditures for this fund include street overlays and street maintenance for
existing streets and will continue through FY2021-2022 until fully expended.

Water and Wastewater Fund

Revenues in this enterprise operation are based on projected rates sufficient to
cover operations in each of the future years. Rates are based on projected cost
increases from Fort Worth and North Richland Hills as well as baseline increases
for the city’s operations, including salary plan adjustments, health insurance
increases, and changes in depreciation expense. Future projected rate increases
for both water and wastewater are shown.

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