Page 12 - Watauga FY22-23 Budget

BUDGET MESSAGE FOR FY2022-2023

September 12, 2022

To the Honorable Mayor Arthur L. Miner, Members of the City Council and the
Citizens of Watauga:

The City Manager’s Annual Budget for the Fiscal Year beginning October 1, 2022, and
ending September 30, 2023, is presented for your review and comment, as required by
the City of Watauga’s Home Rule Charter. It presents, in summary form, the revenues
and expenditures for each of the City’s Funds, departmental highlights, accomplishments
and expenditures, as well as the five-year Capital Improvement Plan (CIP). The Annual
Operating Budget represents the single most crucial management tool of the governing
body and staff. The Annual Operating Budget reflects the general short-term policies
and incorporates the City Council’s long-term Strategic Plan. The Budget in Brief that
follows this message provides a concise summary of the Budget and significant changes.

During FY2021-2022, the economy continued to improve, but was impacted by
inflationary pressures. The City experienced staffing shortages, most notably in the
Public Works and Police Department. During the current fiscal year, recommendations
from the compensation and classification study were implemented to provide a
competitive pay plan and help to address recruitment and retention needs.

In preparing the FY2022-2023 fiscal year budget, we forecasted continued economic
recovery. The budget concentrates on several guiding principles:

• Maintaining and improving city services to meet the needs of our citizens and
businesses.

• Retaining existing employees and recruiting new people to fill vacant positions.

• Address challenges of the new normal to include employee shortages, inflation,
and supply chain issues.

. Some highlights of the budget are presented below:

• Property tax revenue has been based on maintaining or reducing the City’s current
tax rate of $0.5804 per $100 of assessed valuation. The property tax rate was
adopted at $0.5702 per $100 of assessed valuation in FY2022-2023. Property
valuations increased by 11% this budget year. This property tax rate allows the
City to bring in more revenue in the operating budget to cover cost increases and

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