Page 57 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

✓ The continuation of the food business park project at Capp Smith Park are funded
by the 2020 Certificates of Obligation debt issuance.
✓ The $5.0 million proposed 2022 Certificates of Obligation will fund street projects,
the fleet facility expansion project, and capital outlay such as equipment, public
safety equipment and vehicles.

General capital projects and equipment expenses for this year are projected at
$11,701,449. The ending Fund Balance is forecast to be $4,165,898. See the General
Capital Projects Fund for a more detailed description.

Strategic Initiative Fund

The Strategic Initiative Fund was created in FY2015-2016 to fund the strategic initiatives
identified as priorities by Council. The funding source for this fund is through General
Fund transfers. This year, fund balance in the Strategic Initiative Fund will provide for the
planned expenditures. Expenditures in this fund include $30,000 for the home
revitalization program through the Tarrant County HOME program. The fund will continue
to fund Council initiatives in future years.

Special Revenue Funds

Economic Development Corporation

The Economic Development Corporation is funded by a ¼ cent sales tax and funds
economic development activities and quality of life projects in the City. Voters approved
a 1/2 cent sales tax under Section 4B of Article 5190.6, Vernon’s Texas Civil Statutes
with an effective date of October 10, 1994. In May, 2012, Voters approved a reallocation
of 1/4 cent for the Watauga Parks Development Corporation to go towards Street
Maintenance, effective October 2012. In FY2018-19, the Corporation was renamed to
the Watauga Economic Development Corporation. Funds can only be used for economic
development activities and projects and funds are administered under the supervision of
the Economic Development Corporation Board of Directors. The City Council retains final
oversight authority and must approve the EDC’s programs and expenditures.

Sales tax revenues are projected to be $952,000 for FY2022-FY2023. The ¼ cent share
of all local taxable sales are remitted by merchants to the State Comptroller’s Office and
then distributed to the City on a monthly basis. This represents approximately 99% of total
revenue for the Economic Development Corporation Fund.
The budget for this fund includes funding for the completion of various economic
development initiatives as guided by the Corporation’s strategic plan that was developed
in FY2019-20 and updated in FY2020-21. Expenditures are budgeted at $508,750. The
ending fund balance is projected to be $2,164,168.

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