Page 63 - Watauga FY22-23 Budget

BUDGET OVERVIEW – BUDGET-IN-BRIEF

repairs and maintenance is budgeted this year. The ending fund balance will be
$1,324,810 in this fund if the planned projects are completed by September 30,
2023. Unused funds will roll over to the next fiscal year until the projects are

completed.

Joint Use Facility Fund

The City of Watauga and City of North Richland Hills jointly maintain a transfer
station for water. A maintenance reserve of $60,000 per year is scheduled. These
reserves are transferred in annually from the Water/Sewer operating fund.
Reserves are used for pump replacements and other maintenance, as necessary.

Equipment Replacement Fund

This year the City continues the use of the Equipment Replacement Fund that
began in FY2013-2014, but on a smaller scale. The City maintains an equipment
replacement fund for use in the purchase of rolling stock, equipment, facility needs
such as HVAC and roofing, and technology replacement with a minimum cost of
$5,000 and a useful life of at least five years. This fund is designed to provide on-
going financing for replacement equipment once it reaches its expected life span.
The Equipment Replacement Fund purchases these items and then charges the
acquiring fund a prorated amount based on the cost and useful life of the
equipment. These are reflected as transfers in from other funds and charges for
services. This year we are utilizing this fund for the purchase of rolling stock,
equipment, technology, and facility needs in the amount of $515,000. Some of
the items funded this year were carried over from prior year.

The City utilized some of the legacy fund balance to balance the General Fund
and Crime Control District fund in FY2019-20 and FY2020-21. In addition, the
General Fund and Crime Control District fund did not transfer the annual payment
for capital items in the last several fiscal years. These amounts will be transferred
and made whole in future years as economic conditions improve. The forecasted
ending Fund Balance is $1,320,059.

Conclusion

This Budget in Brief is a summary of the major highlights of the 2022-23 Fiscal Year
Budget document. This budget contains the significant budget changes and new and
expanded requests submitted by departments this fiscal year. The summaries by fund
and departmental detail can be found in the fund sections of this document.

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