Page 56 - Watauga FY21 Budget

BUDGET OVERVIEW

Traffic Safety Fund – This fund was established to account for funds received
from the City’s Red Light Traffic Control Program. In 2010, the City Council
approved the installation of Red Light Cameras on certain City intersections. The
th
86 Legislature actions included Red Light Camera legislation (HB 1631) that
disallowed the continuation of the red light camera enforcement program
effective June, 2019. The City has lost approximately $350,000 in funds
annually for traffic safety programs. In FY2020-21, the City will use remaining
funds to continue these programs, but in the future, programs will have to be
budgeted in the City’s General Fund or discontinued.

Jury Fee – This fee was established in January, 2020 with the passage of
SB346. These fees are assessed at $0.10 upon conviction of any fine-only
misdemeanor, including a parking or pedestrian offense. The fee is used to fund
juror reimbursements and finance jury service.

Peg Fee – The Public, Educational, and Government (PEG) fee is an additional
fee collected through cable providers. It is an additional 1% of gross revenue
and can only be spent on capital items for the local access channel as described
by federal law. A separate fund was established in FY2017-18 to comply with
SB1087.

Miscellaneous revenue - Includes interest earned on the investment of each
fund’s cash, proceeds from the sale of surplus property from that fund, and other
various revenues.

Capital Projects Funds

Transfers In – Generally, monies are transferred from another fund for specific
projects or obligations.

Miscellaneous revenue - Includes interest earned on the investment of each
fund’s cash, proceeds from the sale of surplus property from that fund and other
various revenues.

Debt Service Funds

Ad Valorem taxes – As discussed in the General Fund section above, this
property tax on real and personal property is assessed since a great number of
City services are for the public good and are not reasonably allocated among
individuals. The City bases its ad valorem tax rate on the certified appraisal roles
provided by the Tarrant Appraisal District (TAD).

A combined tax rate is adopted each year by the Watauga City Council (a) for the
use and support of the City's General Fund (referred to as the Maintenance and
Operations (M&O) rate) and (b) to finance the City's Debt Service Fund (referred
to as Interest and Sinking (I&S) rate) for payment of annual principal and interest
due on outstanding general indebtedness. This is the portion obligated for debt
service payments and is projected on payments as specified in debt obligations.
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