Page 58 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

The EDC Capital Fund Budget includes $10,000 in contingency funding for projects that
may be considered for funding for the fiscal year. The projected ending fund balance is
$23,860.

Street Maintenance Fund

This fund was originally established on October 1, 2012 to account for ¼ cent sales tax
reallocated from the Parks Development Corporation, now the Economic Development
Corporation. At a special election on May 12, 2012, the voters approved this tax under
Section Chapter 327 of the Tax Code.

In November, 2020 a measure was presented to voters to reallocate the ¼ cent dedicated
street maintenance sales tax to economic development. The voters chose not to
reallocate the tax and as a result, the street maintenance dedicated sales tax was
abolished effective January 1, 2021. The source of funding for streets will be cash flowed
from the general fund in future years. Fund balance reserves will provide funds for street
maintenance this fiscal year until funds are depleted. Street maintenance projects funded
for the year total $595,000, leaving an ending fund balance of $910.

Crime Control and Prevention District Fund

The Watauga Crime Control and Prevention District (WCCPD) was established in March,
1996 under Local Government Code Chapter 363 and reauthorized most recently on May
1, 2021 to account for a one-half sales tax to fund officers and purchase additional
equipment and supplies for law enforcement purposes. The fund is administered by a
Board of Directors, which is current made up of the Mayor and all Council Members.

The sales tax represents 99% of total revenue for the WCCPD. Sales tax revenues
generated from this ½ cent sales tax are projected at $1,875,000, an increase of 16.5%
over prior year budget and 7% over forecast FY2022 receipts. Total revenues are forecast
to be $1,945,000. The FY2022-2023 operating budget is $2,042,650 and ending fund
balance is projected to be $1,140,252. A new Mental Health Officer position is funded
by the WCCPD this fiscal year, as well as three replacement vehicles.

Library Donation Fund

Revenues represent donations made by customers as part of utility bill payment. Funds
are used to purchase additional library supplies such as books, audio and video,
periodicals, and other types of supplies. Projections are based on historical trend of
donations, which have declined in the last several years.

Estimated revenues received by donations for this fund are expected to be $6,000 and

make up approximately 98%of the Library Donation’s fund’s total revenues. The
proposed budget expenditure of $10,000 will leave an estimated ending fund balance of
$47,857.

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