Page 54 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

revenues to increase slightly in FY2022-2023 due to an increase in solid waste collection
franchise fees. These fees currently total 5% of General Fund revenues.

Licenses and permits – This includes construction permit fees, animal licenses,
electrical and plumbing licenses and other licenses and permits. Over the last few years,
this revenue has fluctuated due to construction activity in the City; however, as the City
is approximately 96% built out, this revenue is not expected to increase substantially.
However, the City has experienced an increase in construction permits related to
renovations last year.

Projections are based on the established historical base of issued permits and the
expectations of inspectors and economic development staff for new permits and
buildings. In FY2021-22, a 70-home subdivision is planned for construction and will
continue through FY2022-23. This revenue source is estimated to bring in 4% of General
Fund revenues for FY2022-23.

Intergovernmental revenue - Intergovernmental revenue consists of a payment-in-lieu-
of-tax (PILOT) from the enterprise funds based on a percentage of revenues from the
water and sewer utility systems and the storm drain system. This is similar to the fee
charged to other utilities for the use of City right-of-ways except for City-owned utilities.
Projections are based solely on revenues projections for those revenue generators. Such
funds total 3% of General Fund revenues.

Charges for services – These charges include recreation fees, fees paid by developers
as reimbursements for City services, charges for emergency medical service (EMS), and
various other service charges. Service Charges account for about 6% of General Fund
revenues. Projections are based on historical use of City services as well as rates charged
by the City on such services. EMS services have been outsourced to Emergicon, which
handles all billing and initial collections. Ambulance revenues have experienced growth
of approximately 20% the past couple of years due to increased collection activity and the
City running a second ambulance beginning in FY2020-21.

Fines and Forfeitures - Include fines levied by the Municipal Judge for misdemeanor
offenses occurring with the City and those collected on citations issued for code
enforcement. Fines for overdue library books were discontinued in FY2020-21. Other
fees are also included in this category for certain items relating to municipal court. Fines
and forfeitures make up approximately 4% of General Fund revenues for fiscal year 2023.

Miscellaneous revenue – This includes interest earned on the investment of General
Fund cash, proceeds from the sale of surplus City property, cell phone tower rent

revenues and other various revenues. Interest earnings are expected to increase in
FY2022-23 due to the rising interest rates and comprise 2% of total revenues.

Transfers In – Transfers in are comprised of funds transferred from another fund for

general and administrative fees or obligations that the General Fund provides. The
contributing funds include the proprietary funds (Water and Sewer, Storm Drain) and

special revenue funds (Crime Control and Economic Development Fund). These are
projected at 5% of General Fund Revenues.

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