Page 127 - CityofWataugaAdoptedBudgetFY24

BUDGET SUMMARY

City of Watauga and City of North Richland Hills project. This will be the City’s last year
for this transfer and payment. Additionally, the transfer will cover miscellaneous
engineering services. A transfer from General Fund to other funds include a transfer to
the Capital Projects Fund for sidewalk replacements in the amount of $150,000. Street
Maintenance is funded this year by previous transfers to the General Capital Projects
Fund.

There will be a utilization of fund balance for one-time expenditures and programs in the
amount of $448,270 for this year and the projected ending fund balance for FY2023-24
is $7,982,657, which equates to 44% of operating expenditures in reserves. This is above
the minimum target policy of twenty-five percent (25%) by approximately $3.4 million
which may be used in future budgets for one-time expenditures, such as funding of capital
projects.

General Fund Debt Service Fund

As discussed in the General Fund section above, the City bases its ad valorem tax rate
on the certified appraisal roll provided by the Tarrant Appraisal District (TAD). A combined
tax rate is adopted each year by the City Council that funds 1) the use and support of the
general fund (maintenance and operations rate) and 2) to finance the City’s Debt Service
Fund (referred to as Interest and Sinking, or I&S rate) for payment of annual principal and
interest due on outstanding general indebtedness. This is the portion obligated for debt
service payments and is projected on payments as specified in debt obligations. The
fund receives a transfer-in from the Economic Development Corporation for their payment
of various economic development and parks projects within the City.

The City has existing long-term debt issued for the construction of capital facilities,
infrastructure, and vehicles and equipment. The debt service requirement for principal
and interest payments and fiscal agent charges for totals $4,150,767. This amount
includes debt service for the 2023 Certificates of Obligation debt issuance for projects
included in the General Capital Project Fund and listed below. The ending fund balance
is projected to be $1,036,276.

General Capital Projects Fund

The General Capital Projects Fund provide the basic resource for general government
projects such as streets, parks, public facilities, equipment, and other infrastructure
needs. Many of these projects are funded from debt issuance proceeds and the
remaining are funded by a transfer in from the General Fund. Other revenues include
interest income on investments, and proceeds of the sale of surplus property.

The following projects will be funded this year:

✓ This year the sidewalk program will be funded at $150,000.
✓ Engineering costs have been funded at $30,000 in anticipation of additional needs
throughout the City.

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