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.






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