Page 15 - City of Watauga FY22 Adopted Budget

BUDGET MESSAGE FOR FY2021-2022

The transfers have been included in the baseline budgets for the Water and Sewer
Fund and the Storm Drain Fund.
• Water and wastewater rates are expected to increase due to increases in
wholesale water and wastewater costs and to cover operating and capital
expenditures. Staff is currently working with a consultant to finalize a long-term
rate model that will be presented to Council in August. The preliminary rate model
forecasts that water rates will need to be increased 3% and wastewater rates
increased by 5% and ensure operating requirements are met and reserve levels
are appropriate.
• Recommended capital improvement project funding is included in this budget.
These include continuation of infrastructure projects (streets, water, sewer,
drainage), traffic signalization projects, and facility improvements at the Fire
Station. A food business park at Capp Smith is included in partnership with the
Economic Development Corporation. The majority of the City’s capital project
funding is through debt issuance. A 2021 Certificates of Obligation issuance is to
fund the street and signalization projects. The Capital Improvement Summary is
included in this budget document.
• Critical capital outlay items such as vehicles, equipment, and technology are
funded by the equipment replacement fund and the 2021 Certificates of Obligation
issuance. The 5-year capital outlay plan is included in this budget document.

This spending plan reflects our commitment to provide quality services and amenities to
our residents, while enhancing our organization’s long-term financial sustainability. The
objectives used in developing this budget were to present a balanced budget with prudent
revenue and expenditure estimates and aligns with the City Council’s Strategic Plan
priorities and initiatives.

The Adopted Budget for the Fiscal Year 2021-2022 connects the priorities and financial
planning as outlined in the Council Strategic Planning Session held in April 2021. The
primary concerns while preparing this budget were continuing as many programs and
services for our citizens as feasible within budgetary constraints, maintaining or improving
appropriate staffing levels, and maintaining reserve levels in accordance with the City’s
fiscal policies. Services provided by the City include fire and police protection, emergency
medical services, planning and zoning, economic development, code compliance, street
maintenance, water and wastewater services, parks, recreation, library, and senior citizen
services.

Strategic Direction

Setting long-term priorities for the City is one of the most important responsibilities for
Watauga’s elected officials. In April 2021 Council met to discuss top priority goals for the
City. By focusing on goals and strategic initiatives, Council and staff are able to position
the community in a positive direction. These goals guide financial and operational
decisions to achieve community excellence. The Strategic Plan is provided in this budget

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