Page 43 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

• Essential government services are to be provided at a level equal to or better than
the level previously provided.
• All services are to be constantly examined to ensure that they are provided in an
efficient and effective manner and that unnecessary services are eliminated.

To ensure that City Council Goals are achieved, performance-based programs were
implemented and are monitored. Under this program, each City department head is
required to identify several performance objectives consistent with City goals and
maintain performance indicators, which will measure progress toward the achievement of
stated objectives. This process is reviewed and updated annually for inclusion in the
budget document. Each department’s progress in measuring their goals is reviewed and
monitored throughout the budget year.

The FY2022-2023 balanced budget does have some planned draw down of fund balance
within the guidelines of the financial policy. All funds are planned to carry sufficient levels
to protect the creditworthiness of the City and financial position from emergencies.

The General Fund has an imposed target of 25% of operating expenses. For FY2021-
2022 the General Fund ending balance is projected to be at 51% of operating expenses
at year-end. We expect to end FY2022-2023 with a balance of 43% of operating
expenses.

BUDGET HIGHLIGHTS – ALL FUNDS

Revenues from all funds total $44.7 million in comparison to last year’s $35.5 million.
These numbers include anticipated grant funds (American Rescue Act Plan and Tarrant
County Street Funding) of $7.9 million. Property and Sales tax make up 40% of all
revenues, followed by charges for services at 26% of all revenues.

The budget in brief contains a general description of the major revenue sources for the
City of Watauga’s major operating funds and the assumptions used to project those
revenues for this budget. Recent trend data is also included for major revenues
described in the following pages. Most projected revenues are based on assumptions
of historical data with increases and decreases associated with economic conditions
and rate changes.

The total budget for FY2022-2023, including transfers between funds and capital
projects is $61,722,366. This represents an increase of $8,527,817 when compared to
FY2021-2022, largely due to increase capital project funding in comparison to prior year
and ARPA funded projects. Funding for planned capital projects and equipment this
fiscal year is $25.7 million in comparison to $20.1 million last fiscal year. Capital
equipment purchases in the amount of $2.4 million are planned this fiscal year and are
outlined in the Capital Outlay Plan Summary.

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

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