Page 62 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

Three positions in this fund
were unfunded in FY2020-
2021 and one additional
position is being restored
in FY2022-23. Transfers
to the Debt Service Fund
are included to cover debt
service payments.

The Water and Sewer fund
was in a reserve recovery
mode due to increased
wastewater treatment
costs attributed to inflow
and infiltration issues in
recent years. The fund is

currently at the appropriate reserve level with the ending fund balance expected to
be $2,650,453 which is a 28% reserve level at the end of FY2022-2023. The City’s
reserve policy is to ensure a 25% reserve level in this fund.

Fleet Interlocal Agreement Fund

In FY2019-2020, the City contracted with three surrounding cities to provide fleet
services. The City estimates revenues to be $105,000 and estimates expenses to
be at $85,500. Ending fund resources are projected at $23,860.

Water and Sewer Debt Service Fund

The Utility Fund debt service requirement for FY 2022-2023 is $1,804,434 and will
be funded by a transfer from the Water/Sewer operating fund and fund balance
reserves. The fund balance at the end of the year is expected to be $34,948. Debt
service is paid for those issuances that fund wastewater improvements identified
in the 5-year Capital Improvement Plan. The 2022 Certificates of Obligation will
provide funding for a jetvac truck and will increase the debt payment slightly over
the next 5 years.

Water and Sewer Capital Projects Funds

Total available resources are projected at $8,271,721 which includes remaining
proceeds from a debt issuance of $7.325 million that occurred in summer of 2017
to provide funding for various water and sewer infrastructure projects and the 2019
debt issuance of $8.390 million, and the 2022 Certificates of Obligation funding in
the amount of $.550 million. These projects are currently underway and are
expected to be substantially completed at the end of FY2022-23. Total
expenditures are budgeted at $6,946,911 and include the water and wastewater
projects that were identified and prioritized in the City’s 5-year Capital
Improvement Plan. An estimated $140,000 in estimated water and sewer main

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