Page 113 - City of Watauga FY22 Adopted Budget
P. 113
BUDGET OVERVIEW
charters; but no tax for any purpose shall ever be lawful for any one year,
which shall exceed two and one-half per cent. [sic] of the taxable property of
such city, and no debt shall ever be created by any city, unless at the same
time provision be made to assess and collect annually a sufficient sum to pay
the interest thereon and creating a sinking fund of at least two per cent. [sic]
thereon.” See also the Texas Tax Code Section 302.001(c).
City Charter Article X - Taxation, Section 10.02 - Power to Tax states: “The
City shall have the power to tax property in accordance with the statutory
provision of the Texas Property Tax Code, as now or hereafter amended by
the state legislature.”
Thus, the maximum rate of tax for the City is $2.50/$100 of value of the
taxable property in the municipality. The current City Tax rate is
$0.580400/$100 of valuation and thus well below the state and charter
statutory maximum.
• Investments: Invest the City’s operating cash to ensure its safety, provide for
necessary liquidity, and optimize yield in accordance with the City of Watauga
Investment Policy. Interest earned from investments shall be distributed to the
fund from which the money was provided.
• Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate,
and forecast the City’s financial performance and economic condition.
➢ Financial Status and Performance Reports: Monthly reports comparing
expenditures and revenues to current budget, projecting expenditures and
revenues through the end of the year, noting the status of fund balances to
include dollar amounts and percentages, and outlining any remedial actions
necessary to maintain the City’s financial position shall be prepared for review
by the City Manager and the City Council.
➢ Three-year Forecast of Revenues and Expenditures: A three-year forecast of
revenues and expenditures should be prepared in anticipation of the annual
budget process. The forecast should include critical issues facing the City,
economic conditions, and the outlook for the upcoming budget year.
➢ Quarterly Status Report on Capital Projects: A summary report on the
contracts awarded, capital projects completed, and the status of the various
capital programs should be prepared quarterly and presented to the City
Manager and the City Council.
• Financial Consultants: Within available resources, employ the assistance of
qualified financial advisors and consultants, as needed, in the management and
administration of the City’s financial functions.
104