Page 54 - Watauga FY21 Budget

BUDGET OVERVIEW

Special Revenue Funds

Watauga Economic Development Corporation Sales Tax Revenue – In May,
2012, Watauga voters approved a reallocation of the ½% for the Watauga Parks
Development Corporation for ¼% to go towards Street Maintenance and Repair
of City streets. This reallocation was effective October 2012. In FY2018-19, the
Corporation was renamed to the Watauga Economic Development Corporation.
This change shifted focus from Parks Development to Economic Development.
FY2019-20 was the first budget year to reflect this change..

The ¼% share of all local taxable sales are remitted by merchants to the State
Comptroller’s Office and then distributed to the City on a monthly basis. This
represents approximately 99% of total revenue for the Economic Development
Corporation Fund.

Our economic outlook is conservative for the upcoming fiscal year. We are
forecasting sales tax to be down 7% in comparison to FY2019-20 projected
receipts. We do not expect major changes in this revenue source since we have
a lack of commercial property available.

Voters approved this tax under Section 4B of Article 5190.6, Vernon’s Texas Civil
Statutes with an effective date of October 10, 1994. Funds can only be used for
economic development activities and projects and funds are administered under
the supervision of the Economic Development Corporation Board of Directors.

Street Maintenance Fund Revenue –
A ¼% share of local taxable sales are DID YOU KNOW?
remitted by merchants to the State
Comptroller’s Office and then distributed In May of 2016 voters re-authorized
to the City on a monthly basis. This the street maintenance sales tax for
represents 100% of total revenues for an additional four years.
the Street Maintenance Fund.
This provides approximately
At a special election on May 12, 2012, $750,000 annually to fund
the voters in the City of Watauga maintenance of City streets.
approved this tax under Section Chapter
327 of the Tax Code with an effective
date of October 1, 2012. This tax was
reauthorized by voters in May of 2016
for another four years. Funds can only be used to maintain and repair streets
that were in existence on the date of the election to adopt the tax. This tax
expires in every four (4) years unless reauthorized by the voters at a special
election.

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