Page 128 - City of Watauga FY22 Adopted Budget

BUDGET-OVERVIEW

➢ Ad Valorem Property Taxes - Revenue collected from property taxes is the
largest component of the General Fund, comprising 43% of revenues in FY2021-
2022. This includes current and delinquent tax payments as well as penalties and
interest. This revenue is calculated based on information from the Certified Tax
th
Roll received July 25 from the Tarrant Appraisal District (TAD). The certified roll
reflects all taxable property in the City as of January 1, 2021. After the roll is
received, the tax rate is set by the City Council based on both the debt rate
required to pay the City’s General bonded indebtedness and funds needed for
maintenance and operations for the use and support of the General Fund.

➢ In FY2021-2022, valuations increased by 7%, compared to an increase of 1.5%
in FY2020-2021. In the FY2021-2022 budget, the adopted tax rate of $0.58040
per 100 of valuation decreases the tax rate by $0.000004 from last year’s rate of
$0.580404 per 100 of valuation. The rate is a result of the higher valuations and
will ensure that the quality service levels and programs are maintained, and debt
service requirements are met.

➢ The adopted tax rate for FY2021-2022 is $0.58040/$100 of valuation. The tax rate
distribution for FY2021-2022 compared to FY2020-2021 is as follows:
FY2021-22 FY2020-21

Maintenance and Operations: $0.395445/$100 $0.400696/$100
Interest & Sinking $0.184955/$100 $0.179708/$100

TOTAL TAX RATE: $0.58040/$100 $0.580404/$100

Estimated collections for the current year have been computed at approximately 99% of
net taxable value for the interest and sinking (I&S) portion of the tax rate. The City’s
historical tax rate and distribution is shown below:

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