Page 137 - City of Watauga FY22 Adopted Budget

BUDGET-OVERVIEW

✓ The continuation of the Fire Station Renovation Project and food business park
project at Capp Smith Park are funded by the 2020 Certificates of Obligation debt
issuance.
✓ The $4.7 million 2021 Certificates of Obligation will fund street projects,
signalization projects, and capital outlay such as equipment and vehicles.

General capital projects and equipment expenses for this year are projected at
$9,638,500. The ending Fund Balance is forecast to be $3,879,558. See the General
Capital Projects Fund for a more detailed description.

Strategic Initiative Fund

The Strategic Initiative Fund was created in FY2015-2016 to fund the strategic initiatives
identified as priorities by Council. The funding source for this fund is through General
Fund transfers. This year, fund balance in the Strategic Initiative Fund will provide for the
planned expenditures. Expenditures in this fund include $30,000 for the home
revitalization program through the Tarrant County HOME program. The fund will continue
to fund Council initiatives in future years.

Special Revenue Funds

Economic Development Corporation

The Economic Development Corporation is funded by a ¼ cent sales tax and funds
economic development activities and quality of life projects in the City. Voters approved
this tax under Section 4B of Article 5190.6, Vernon’s Texas Civil Statutes with an effective
date of October 10, 1994. In May 2012, Voters approved a reallocation of the ½% for the
Watauga Parks Development Corporation to go towards Street Maintenance, effective
October 2012. In FY2018-2019, the Corporation was renamed to the Watauga Economic
Development Corporation. Funds can only be used for economic development activities
and projects and funds are administered under the supervision of the Economic
Development Corporation Board of Directors. The City Council retains final oversight
authority and must approve the EDC’s programs and expenditures.

Sales tax revenues are projected to be $814,000 for FY2021-2022. The ¼ cent share
of all local taxable sales are remitted by merchants to the State Comptroller’s Office and
then distributed to the City on a monthly basis. This represents approximately 99% of total
revenue for the Economic Development Corporation Fund.

The budget for this fund includes funding for the completion of various economic
development initiatives as guided by the Corporation’s strategic plan that was developed
in FY2019-2020 and updated in FY2020-2021. Expenditures are budgeted at $549,268.
The ending fund balance is projected to be $1,810,089.

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