Page 24 - City of Watauga FY22 Adopted Budget

BUDGET-IN-BRIEF

The following information is a general description of the major expenditure/expense types
for the City’s major operating funds.

Changes in operating expenditures vary in each fund based on the nature of the services
provided in each fund.

➢ Personnel Services – This category makes up 27% of the total budget and
consists of personnel salaries and benefits. Salaries include base pay, overtime,
step-up pay, certification pay, sick and vacation pay, and holiday pay. Benefits
include healthcare, retirement, accrued sick and vacation leave, partial tuition
reimbursement, longevity pay, and payout of certain leave accruals per policy
guidelines. The City of Watauga participates in the Texas Municipal Retirement
System (TMRS) for eligible employees.

➢ Supplies – Those items necessary for operations including office and
janitorial supplies, postage, publications, wearing apparel, vehicle parts and fuel,
tools, and living plants.

➢ Maintenance – Those services required to maintain assets of the City –
may be paid to outside vendors. This can include vehicle or equipment
maintenance, hardware and software maintenance, street striping, plumbing and
electrical services, and radio and book repairs.

➢ Contractual/Sundry – Consists primarily of services provided to the City,
and other miscellaneous items. Services include bank services, audit and attorney
fees, printing and binding, laboratory testing, public utilities, rental of equipment,
ambulance billing services, collection agency fees, engineering services, appraisal
district expenses, and insurance fees. This category also includes water
distribution and wastewater collection fees paid to the City’s wholesale providers.
Miscellaneous expenses include dues and subscriptions, travel, and training. This
category also includes transfers between funds and debt service payments.

➢ Capital Outlay – The purchase or investment in items that are more than
$5,000 each that have a life of more than five years and that will be capitalized or
considered a long-term asset of the City. Examples include buildings, furniture,
equipment, and vehicles. Infrastructure projects such as streets and water and
sewer projects are included in this category. The City plans for these high dollar
items through the Capital Improvement Plan Committee and Capital Outlay Plan
Committee process. The end results are the creation and continual updating of
multi-year plans that help identify capital needs and possible funding sources. The
capital expenditures can be found in the Capital Projects and Capital Outlay
Sections of this budget document.

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