Page 56 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

There will be a utilization of fund balance in the amount of $216,775 for this year and the
projected ending fund balance for FY2022-23 is $7,057,913, which equates to 43% of
operating expenditures in reserves. This is above the minimum target policy of twenty-
five percent (25%) by approximately $3 million which may be used in future budgets for
one-time expenditures.

General Fund Debt Service Fund

As discussed in the General Fund section above, the City bases its ad valorem tax rate
on the certified appraisal roll provided by the Tarrant Appraisal District (TAD). A combined
tax rate is adopted each year by the City Council that funds 1) the use and support of the
general fund (maintenance and operations rate) and 2) to finance the City’s Debt Service
Fund (referred to as Interest and Sinking, or I&S rate) for payment of annual principal and
interest due on outstanding general indebtedness. This is the portion obligated for debt
service payments and is projected on payments as specified in debt obligations. The
fund receives a transfer-in from the Economic Development Corporation for their payment
of various economic development and parks projects within the City.

The City has existing long-term debt issued for the construction of capital facilities,
infrastructure, and vehicles and equipment. The debt service requirement for principal
and interest payments and fiscal agent charges for totals $3,617,348. This amount
includes debt service for the 2022 Certificates of Obligation debt issuance for projects
included in the General Capital Project Fund and listed below. The ending fund balance
is projected to be $729,770.

General Capital Projects Fund

The General Capital Projects Fund provide the basic resource for general government
projects such as streets, parks, public facilities, equipment, and other infrastructure
needs. Many of these projects are funded from debt issuance proceeds and the
remaining are funded by a transfer in from the General Fund. Other revenues include
interest income on investments, and proceeds of the sale of surplus property.

The following projects will be funded this year:

✓ This year the sidewalk program will be funded at $150,000, an increase of $50,000
over prior year.
✓ Engineering costs have been funded at $30,000 in anticipation of additional needs
throughout the City.
✓ Continuation of the Whitley Road street projects, parks projects are funded by the

2016, 2018, and 2020 Certificates of Obligation proceeds. These projects are
continued from prior years.
✓ The Hightower Street Project has been added to the Capital Improvement Plan
this year and engineering costs will be funded by the proposed 2022 Certificates
of Obligation debt proceeds.

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