Page 111 - CityofWataugaAdoptedBudgetFY24

BUDGET SUMMARY

plumbing, and mechanical installations. Over the last few years, this revenue has
fluctuated due to construction activity in the City; however, as the City is approximately
96% built out, this revenue is not expected to increase substantially. However, in FY2022
and 2023, the City has experienced an increase in construction permits related to
renovations and building activity along Bursey Road and Hightower. These projects are
expected to continue in FY2023-2024. An increase of 6% in FY2023-2024 from 2023
estimated revenue is expected from the permits remaining for these projects.

Projections are based on the established historical base of issued permits and the
expectations of inspectors and economic development staff for new permits and
buildings. This revenue source is estimated to bring in 4% of General Fund revenues for
FY2023-24.
Intergovernmental revenue - Intergovernmental revenue consists of a payment-in-lieu-
of-tax (PILOT) from the enterprise funds based on a percentage of revenues from the
water and sewer utility systems and the storm drain system. This is similar to the fee
charged to other utilities for the use of City rights-of-way except for City-owned utilities.
Projections are based solely on revenues projections for those revenue generators. Such
funds total 3% of General Fund revenues.

Charges for services – This category includes General Fund charges, as well as Water
and Sewer and Storm Drain fees. The category makes up 22% of city-wide revenues.

General Fund - These charges for the General Fund include recreation fees, fees paid
by developers as reimbursements for City services, charges for emergency medical
service (EMS), and various other service charges. Service Charges account for about 7%
of General Fund revenues. Projections are based on historical use of City services as
well as rates charged by the City on such services. New recreation programs were added
in FY2023-2024 that increased revenues in this category. EMS services have been
outsourced to Emergicon, which handles all billing and initial collections. Ambulance
revenues have experienced growth the past couple of years due to increased volume and
collection activity due to the Fire Department running a second ambulance beginning in
FY2020-2021. Increases in the General Fund are estimated at 14.8% due to fee
increases and new program charges.

Water and Wastewater Fees are included under Charges for Services category and are
received primarily from water sales to City utility customers and sewer charges. For
FY2023-2024, Utility Fund Revenues account for 16% of all city-wide revenues. Water
and Sewer revenues are projected to increase 2.5%. Other sources consist of penalties,
service and miscellaneous fees, and investment earnings. The increase is due primarily
to the City of Ft. Worth proposing a wholesale water and sewer rate increase. The
financial objective of the water and sewer rates is to ensure that rates are adequate to
meet all operating needs; cover existing debt service; and provide enough working capital
levels to be fiscally responsible.

The Storm Drain Utility Fees are also included under Charges for Services Category
and the fee is assessed on water bills and will generate funding for drainage projects and
maintenance of the City’s storm drain system.

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