Page 133 - City of Watauga FY22 Adopted Budget

BUDGET-OVERVIEW

has seen a significant decline in these revenues as a result. We are anticipating the
revenues to remain fairly flat for FY2021-2022. These fees currently total 6% of General
Fund revenues.

Licenses and permits – This includes construction permit fees, animal licenses,
electrical and plumbing licenses and other licenses and permits. Over the last few years,
this revenue has fluctuated due to construction activity in the City; however, as the City
is approximately 96% built out, this revenue is not expected to increase substantially.
However, the City has experienced an increase in construction permits related to
renovations last year.

Projections are based on the established historical base of issued permits and the
expectations of inspectors and economic development staff for new permits and
buildings. In FY2021-2022, a 70-home subdivision is planned for construction. This
revenue source is estimated to bring in 4% of General Fund revenues for FY2021-2022.

Intergovernmental revenue - Intergovernmental revenue consists of a payment-in-lieu-
of-tax (PILOT) from the enterprise funds based on a percentage of revenues from the
water and sewer utility systems and the storm drain system. This is similar to the fee
charged to other utilities for the use of City right-of-ways except for City-owned utilities.
Projections are based solely on revenues projections for those revenue generators. Such
funds total 3% of General Fund revenues.

Charges for services – These charges include recreation fees, fees paid by developers
as reimbursements for City services, charges for emergency medical service (EMS), and
various other service charges. Service Charges account for about 5% of General Fund
revenues. Projections are based on historical use of City services as well as rates charged
by the City on such services. EMS services have been outsourced to Emergicon, which
handles all billing and initial collections. Ambulance revenues have experienced growth
of approximately 20% due to increased collection activity and the City running a second
ambulance beginning in FY2020-2021.

Fines and Forfeitures - Include fines levied by the Municipal Judge for misdemeanor
offenses occurring with the City
and those collected on citations
FINES AND FORFEITURES issued for code enforcement.

Fines for overdue library books
$900,000 were discontinued in FY2020-
2021. Other fees are also
$600,000 included in this category for
$300,000 certain items relating to
municipal court. In FY2017-
$0 2018, citations decreased
significantly as staffing was a
prominent issue in the Police
Department which resulted in a
lower citation count. In FY2018-
Fiscal Year
2019, the police department

124