Page 220 - City of Watauga FY22 Adopted Budget

SPECIAL REVENUE FUNDS

ECONOMIC DEVELOPMENT CORPORATION
(FORMERLY PARKS DEVELOPMENT CORPORATION)

Voters established the Watauga Parks Development Corporation Sales Tax Fund to
account for a ½ cent sales tax increase in May 1994 under the 4b Economic Development
Legislation. The purpose of the increase in sales tax is to build city parks and improve
existing parks under the supervision of the Watauga Parks Development Corporation. In
May 2012, voters approved a reduction of the sales and use tax for the Watauga Parks
Development Corporation to ¼ of one percent and reallocate ¼ of one percent for
maintenance and repairs of municipal streets. This reduction took place on October 1,
2012. In FY2018-2019 the corporation’s name was changed to Economic Development
Corporation and the focus was redirected to economic development within the City. Sales
tax revenues for FY2021-2022 are expected to be $814,000.

This Special Revenue Fund is used to account for specific revenues that are legally
restricted to expenditures for particular purposes. The fund is accounted for on the
modified accrual basis of accounting. Revenues are recorded when available and
measurable, and expenditures are recorded when liability is incurred.

Where Does the Money Come From?

Where Does the Money Go?

Note: Transfers to general fund cover personnel expenses and debt
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