Page 13 - CityofWataugaAdoptedBudgetFY24

BUDGET MESSAGE FOR FY2023-2024

and increases in prices for goods and services. Sales tax is influenced by
economic trends, and the higher revenues are in part due to higher prices on goods
due to inflation.

• Other revenue increases in the budget include charges for service revenues. This
budget assumes a return to pre-Covid recreation operations and events that will
be made possible by restoring programs and positions associated with those
programs. Additional programs are included in this budget for the summer camp
and pre-school programs that had been eliminated during Covid. Interest earnings
have increased substantially during 2023 and are reflected in this budget across
the majority of the City’s funds. This increase is due to the current high interest
rate environment and policies set by the Federal Reserve.

• Several positions that were reduced during the pandemic back were restored to
appropriate staffing levels in the 2022-2023 fiscal year. 7 full-time equivalent
positions were funded by the American Rescue Act Plan (ARPA) grant funds,
which was later amended to fund 6 full-time equivalents. In this year’s budget, it
is recommended that 3.5 full-time equivalent positions for the parks and recreation
department be moved into the General Fund. The remainder of the ARPA funded
positions will be absorbed by the General Fund in the 2024-2025 Fiscal Year in
order to meet the spending timeline for these funds. Funds that are not expended
on personnel are proposed to be transferred to planned infrastructure projects.

• An addition of 3.75 full-time equivalents (15 seasonal positions) are included this
fiscal year in the Community Services and Recreation department. The cost of
these positions will be recovered through user fees for the summer camp and pre-
school programs. Other personnel changes recommended in this budget include
a Library Assistant position moving from part-time to full-time, and several
reclassifications of existing positions.

• A cost-of-living increase is included in the amount of 5% for all employees and the
step program continues to be funded for public safety personnel. A merit program
for general government employees was implemented in FY2022-2023 and is
funded in this budget.

• The City’s portion of the retirement rate (TMRS) increased this budget year by
1.8%. This budget includes an increase in medical insurance costs from the City’s
medical insurance provider in the amount of 8% due to high claims the City
experienced in prior years.

• This budget will continue to utilize American Rescue Plan Act (ARPA) funding to
implement projects approved in the Spending Plan Framework in July 2022. These
projects include water and wastewater and storm drain projects, the restoring of
positions, the leave liability program, and equipment purchases. Several projects

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