Page 20 - City of Watauga FY22 Adopted Budget

BUDGET-IN-BRIEF

Budget-in-Brief

The Budget-in-Brief is intended to provide highlights of the City of Watauga’s fiscal year
budget for the period of October 1, 2021 through September 30, 2022. It describes the
fund structure used by the City and summarizes the source and use of City funds and
describes recent trends in revenues and expenditures.

This budget reflects the positive financial condition of the City and utilizes sound fiscal
policies and a conservative approach in revenue and expenditure forecasting. For
FY2021-2022, the City’s budget provides for continued programs and service and a slight
reduction in the tax rate by $0.000004 (from $0.580404/$100 valuation to
$0.580400/$100 valuation). The tax rate will also provide additional funding for capital
improvement and equipment needs.

This budget is a fluid document that is changing and moving on a constant basis and
serves as a guide for the following twelve-month period. We utilize past history, present
conditions, and expected future trends in preparing estimated revenues. Once revenues
are developed, we then evaluate costs associated with the delivery of existing services,
any new and expanded costs or programs, and new programs established by Council.
Within the limited resources available, we adjust the costs to achieve a balanced budget.
The budget document, even after adoption, is still an estimated financial plan and is
always subject to change by amendment. More often than not, elements within the body
of the document will change throughout the year. Changes in economic conditions, new
projects, project overruns, emergencies and unforeseen events can necessitate a budget
amendment.

This budget document and financial plan for FY2021-2022 has been developed and
constructed in such a way as to balance revenues to expenditures with minimal use of
fund balances. Typically, fund balances are used to allow for one-time needs or liabilities
that have accrued over long periods of time. When fund balances are used, the remaining
fund balances are well above the minimums approved by Council. These balances
throughout the various City’s Funds are used to provide as much economic relief to our
citizens as possible, while still providing a financially sound and strong municipal
organization.

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