Page 42 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

Fiscal Year 2022-2023 Financial and Economic Outlook

The financial plan as presented in the budget should be considered from the broad
perspective of the specific environment within which the City operates. The City of
Watauga is located in Tarrant County and is part of the Dallas-Fort Worth Metroplex that
has a total population of 7.6 million people. The City of Watauga encompasses 4 square
miles of which 96% is developed. The 2010 census reflects a population of 23,497, and
the 2021 population estimate from North Central Texas Council of Governments is
23,770.

Property tax revenues are a major revenue category for the City’s General Fund,
comprising 40% of all revenues. This heavy reliance on property tax revenues is a
significant challenge as the community is 96% built out. Over the past several years, the
City has seen property valuations increase. This year’s net taxable values with estimated
ARB values as certified by Tarrant Appraisal District came in at $1,898,387,378, an
increase of 11% over prior year.
Sales Tax History
A significant portion (30%) of the
city’s general operating revenue is
derived from sales tax. FY2021-
2022 sales tax receipts are higher
than anticipated and are trending
17% over budget and 7% over
prior year actuals. We have
conservatively estimated sales tax
at year-end to be 3% over FY2021-
2022 year-end projections. The
City continues its economic
development and redevelopment
strategic planning that is essential
for the City to increase its sales tax
revenues and reduce its
dependency on property taxes to
fund basic City services. The City’s economic development goals include attraction of
quality visually appealing businesses, as well as revitalization and investment in areas
that have seen some deterioration of economic activity. Efforts to maintain and grow our
sales tax base continue to be a high priority.

Policy Issues, Goals, and Objectives for FY2022-2023

The FY2022-2023 budget is designed to continue the City’s programs to (a) provide
efficient operations, (b) maintain basic and essential service levels, and (c) achieve City
Council Goals. Specifically, the following policies are to be observed:

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