Page 53 - City of Watauga FY22 Adopted Budget

FIVE YEAR FINANCIAL FORECAST

budget document. The personnel improvement plan is reviewed annually during
the budget process.

General Obligation Debt Service

The debt component of the tax rate includes debt service requirements for all
general debt currently outstanding and projected in the next five years. Under
the multi-year capital plan, debt issuance is proposed in years in which previous
debt falls off for major projects such as street projects and parks projects.

Watauga Crime Control and Prevention District

The Crime Control and Prevention District fund includes salary plan adjustments,
health insurance increases, and continuation of existing programs. Capital
purchases include continuation of the vehicle replacement program and various
equipment needs. In May, 2021, this funding was approved by Watauga voters
to continue for another ten years.

Watauga Economic Development Corporation Fund (Formerly Parks
Development Corporation

The ¼ Cent Sales tax revenue has been calculated with a 2.5% increase in
FY2022-2023 and a 3% annual increase thereafter.

In FY2018-2019, the name and focus of operation in this fund was changed by
City Council. The fund focus was shifted from Parks Development to Economic
Development. Beginning in FY2019-2020, various economic development plans
were put in place with funding for business retention and attraction. Personnel
and general administrative costs are covered through a reimbursement resolution
between the Economic Development Corporation and General Fund. The
Economic Development Corporation funds various parks and economic
development projects and covers the debt service payments for those projects
through a line item transfer to the debt service fund.

Street Maintenance Fund

The ¼ Cent Sales tax revenue was not reauthorized in November, 2020 and thus
revenues have ceased to this fund. Fund balance will be used to fund street
maintenance until fully expended. Expenditures for this fund include street
overlays and street maintenance for existing streets.

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