Page 13 - City of Watauga FY22 Adopted Budget

BUDGET MESSAGE FOR FY2021-2022

September 13, 2021

To the Honorable Mayor Arthur L. Miner, Members of the City Council and the
Citizens of Watauga:

The Annual Budget for the Fiscal Year beginning October 1, 2021, and ending September
30, 2022, is presented for your review and comment, as required by the City of Watauga’s
Home Rule Charter. It presents, in summary form, the revenues and expenditures for
each of the City’s Funds, departmental highlights, accomplishments and expenditures, as
well as the five-year Capital Improvement Plan (CIP). The Annual Operating Budget
represents the single most crucial management tool of the governing body and staff. The
Annual Operating Budget reflects the general short-term policies and incorporates the
City Council’s long-term Strategic Plan. The Budget in Brief that follows this message
provides a concise summary of the Approved Budget.

With the uncertainty of COVID-19, the FY2020-2021 budget proved to be one of the City’s
most challenging, resulting in many programs and services being reduced last year to
realize cost savings. We went into FY2020-2021 preparing for the worst since the City’s
fiscal health is largely dependent on the economic health of our local businesses. Our
local businesses, although significantly impacted during the pandemic, have proven
resilient by adapting their business operations to thrive in a new normal. In addition, our
community has continued to support our local businesses even as on-line shopping
increased.

In preparing the FY2021-2022 fiscal year budget, we forecasted continued economic
recovery. Our conservative budgeting and commitment to fiscal responsibility has
resulted in the City’s strong financial position. In this year’s budget, we have strived to
restore some personnel and operating funds that were cut in the prior year due to the
pandemic. The budget approach this year reflects the City’s dedication to its focus on
nd
long-term financial sustainability and includes a 2 year (FY2022-2023) forecast budget
to assist in identifying revenue shortfalls as well as any operating cost increases that need
to be addressed in future years. Some highlights of the budget are presented below:

• Property tax revenue has been based on maintaining or reducing the City’s current
tax rate of $0.580404 per $100 of assessed valuation. The property tax is $0.5804
per $100 of assessed valuation in FY2021-2022. Property valuations increased
by 7% this budget year. Maintaining the property tax rate allows the City to bring

5