Page 144 - City of Watauga FY22 Adopted Budget

BUDGET-OVERVIEW

Joint Use Facility Fund

The City of Watauga and City of North Richland Hills jointly maintain a transfer
station for water. A maintenance reserve of $60,000 per year is scheduled. These
reserves are transferred in annually from the Water/Sewer operating fund.
Reserves are used for pump replacements and other maintenance, as necessary.
Equipment Replacement Fund

This year the City continues the use of the Equipment Replacement Fund that
began in FY2013-2014, but on a smaller scale. The City maintains an equipment
replacement fund for use in the purchase of rolling stock, equipment, facility needs
such as HVAC and roofing, and technology replacement with a minimum cost of
$5,000 and a useful life of at least five years. This fund is designed to provide on-
going financing for replacement equipment once it reaches its expected life span.
The Equipment Replacement Fund purchases these items and then charges the
acquiring fund a prorated amount based on the cost and useful life of the
equipment. These are reflected as transfers in from other funds and charges for
services. This year we are utilizing this fund for the purchase of rolling stock,
equipment, technology, and facility needs in the amount of $308,700. Some of
the items funded this year were carried over from prior year.

The City utilized some of the legacy fund balance to balance the General Fund
and Crime Control District fund in FY2019-2020 and FY2020-2021. In addition,
the General Fund and Crime Control District fund did not transfer the annual
payment for capital items in the last several fiscal years. These amounts will be
transferred and made whole in future years as economic conditions improve. The
forecasted ending Fund Balance is $1,398,372.

Fleet Interlocal Agreement Fund

In FY2019-2020, the City contracted with three surrounding cities to provide fleet
services. The City estimates revenues to be $55,000 and estimates expenses to
be at $38,400. Ending fund resources are projected at $28,661.

Conclusion

This section is a summary of the major highlights of the Fiscal Year 2021-2022 Budget
document. The following pages summarize the significant budget changes and new
and expanded requests submitted by departments this fiscal year. The summaries by
fund and departmental detail can be found in the fund sections of this document.

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