Page 30 - Watauga FY21 Budget

BUDGET MESSAGE FOR FY 2020-2021

¾ Fleet Interlocal Agreement Fund

In FY2019-2020, the City contracted with three surrounding cities to provide fleet
services. The City estimates revenues to be $113,300 and estimates expenses
to be at $71,900. Ending fund resources are projected at $42,330.

Water and Sewer Debt Service Fund

The Utility Fund debt service requirement for FY 2020-2021 is $1,595,475 and will
be funded by a transfer from the Water/Sewer operating fund. The fund balance at
the end of the year is expected to be $15,789. Debt service is paid for those
issuances that fund wastewater improvements identified in the 5-year Capital
Improvement Plan.

Water and Sewer Capital Projects Funds

Total available resources are projected at $8,094,589 which includes remaining
proceeds from a debt issuance of $7.325 million that occurred in summer of 2017 to
provide funding for various water and sewer infrastructure projects and the new
2019 debt issuance of $8.390 million. These projects are currently underway. Total
expenditures are $5,285,410 and include the water and wastewater projects that
were identified and prioritized in the City’s 5-year Capital Improvement Plan. An
estimated $140,000 in estimated water and sewer main repairs and maintenance is
budgeted this year. The ending fund balance will be $2,809,179 in this fund if the
planned projects are completed by September 30, 2021. Unused funds will roll over
to the next fiscal year until the projects are completed.

Joint Use Facility Fund

The City of Watauga and City of North Richland Hills jointly maintain a transfer
station for water. A maintenance reserve of $60,000 per year is scheduled. These
reserves are transferred in annually from the Water/Sewer operating fund. Reserves
are used for pump replacements and other maintenance, as necessary.

Equipment Replacement Fund

This year the City continues the use of the Equipment Replacement Fund that began
in FY2013-2014, but on a smaller scale. The City maintains an equipment
replacement fund for use in the purchase of rolling stock, equipment, facility needs
such as HVAC and roofing, and technology replacement with a minimum cost of
$5,000 and a useful life of at least five years. This fund is designed to provide on-
going financing for replacement equipment once it reaches its expected life span.
The Equipment Replacement Fund purchases these items and then charges the
acquiring fund a prorated amount based on the cost and useful life of the equipment.
This year we are utilizing this fund for the purchase of rolling stock, equipment,
technology, and facility needs in the amount of $521,574. The City utilized some of
the legacy fund balance to balance the General Fund and CCD fund in FY2019-20

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