Page 17 - CityofWataugaAdoptedBudgetFY24

BUDGET MESSAGE FOR FY2023-2024

➢ Goal #8: Evaluate Technology and workplace solutions highlighted by COVID-19:
Staff is currently researching the cost and benefits of shifting to AMI technology in
the next 5 years.

Planning for the Future

The City’s financial condition remains strong, and the City has proven flexible to adapt to
changing conditions. Fiscal Year 2023 showed continued economic recovery with an
unprecedented demand for housing and strong retail sales. Through sound fiscal
management over the years, the City has positioned itself to create a positive atmosphere
for economic development. Planned development includes a 67-home single family
residential development that is underway on Hightower Drive. The development will add
significant benefit to the City by adding new quality housing with improved streetscapes,
new sidewalks, and greenspace. An additional residential development along Bursey
Road will include 61 single family homes. Future growth includes a 132-home residential
development at Capp Smith Park, two package liquor stores, a new office park, and a
new retail pad site.

Over the last few years, the City has experienced property valuation increases and Fiscal
Year 2024 (Tax Year 2023) shows property valuation growth of 13% (including pending
ARB accounts). Fiscal Year 2023 (Tax Year 2022) reflected growth of 11% in net taxable
property values and Fiscal Year 2022 (Tax Year 2021) provided for an increase of 7%
growth in the City’s net taxable property values. The continued growth is a combination
of an extremely active real estate market in recent years but is expected to slow down in
future years.

There are numerous variables that merit a cautious approach when developing the
current year budget with a long-term outlook. These include:

o The near build-out status of the City requires a strategic approach to attracting new
development and revitalization of existing businesses. The City is mindful of two
primary objectives when pursuing development opportunities: maximizing
economic benefit to the City while enhancing the quality of life enjoyed by our
residents.

o The City must account for continued inflationary pressures to include the
increasing cost of salaries, benefits, health costs, and supplier increases.

o Changes adopted by the Texas State Legislature continue to impact this budget
and future budgets, most notably Senate Bill 2 that imposed a revenue cap of
3.5%.

The City continues a long-term approach through various planning tools. These include
the following:

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