Page 15 - CityofWataugaAdoptedBudgetFY24

BUDGET MESSAGE FOR FY2023-2024

Strategic Direction

Setting long-term priorities for the City is one of the most important responsibilities for
Watauga’s elected officials. In May 2023, Council met to discuss top priority goals for the
City. By focusing on goals and strategic initiatives, Council and staff are able to position
the community in a positive direction. These goals guide financial and operational
decisions to achieve community excellence. Following are the City Council’s goals and
strategic initiatives, which are supported in the budget:

Policy Issues, Goals, and Objectives for FY2023-2024

The FY2023-2024 budget is designed to continue the City’s programs to (a) provide
efficient operations, (b) maintain basic and essential service levels, and (c) achieve City
Council Goals. Specifically, the following policies are to be observed:

• Essential government services are to be provided at a level equal to or better than
the level previously provided.
• All services are to be constantly examined to ensure that they are provided in an
efficient and effective manner and that unnecessary services are eliminated.

Additionally, the FY2023-2024 Budget includes an emphasis on the following priorities:
• Managing inflationary pressures;
• Retaining and attracting employees by seeking to be competitive in the municipal
employment market;
• Continuing the replacement of capital outlay that has reached the end of life;
• Ensuring focus on community and restoring parks and community services
programs eliminated during the pandemic.

To ensure that City Council Goals are achieved, performance-based programs were
implemented and are monitored. Under this program, each City department head is
required to identify several performance objectives consistent with City goals and
maintain performance indicators, which will measure progress toward the achievement of
stated objectives. This process is reviewed and updated annually for inclusion in the
budget document. Each department’s progress in measuring their goals is reviewed and
monitored throughout the budget year.

The FY2023-2024 balanced budget does have some planned draw down of fund balance
within the guidelines of the financial policy. All funds are planned to carry sufficient levels
to protect the creditworthiness of the City and financial position from emergencies.

The General Fund has an imposed target of 25% of operating expenses. For FY2022-
2023 the General Fund ending balance is projected to be at 54% of operating expenses
at year-end. We expect to end FY2023-2024 with a balance of 44% of operating
expenses.

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