Page 43 - CityofWataugaAdoptedBudgetFY24

MULTI-YEAR FINANCIAL FORECAST

assumptions that inflation will moderate, especially in the cost of labor and
growth in the municipal market. Additional debt service for future debt issuance
in the general obligation debt service fund is only built into the model if the actual
debt issuance and project has been evaluated and is included in the 5-year
capital improvement plan approved by City Council.

Departmental expenditures include an increase of a conservative 2% increase
with annual increases for salary plan adjustments and health insurance increases
reflected in the non-departmental category. The benefit plan increases are
based on a 10% increase for medical and salary increases are included at 3%
across the board. The City’s 5-year Personnel Improvement Plan includes
positions requested by all departments. These positions have not been included
in the projections as the plan is reviewed annually during the budget process.

General Obligation Debt Service

The debt component of the tax rate includes debt service requirements for all
general debt currently outstanding and projected over the next few years. Under
the multi-year capital plan, debt issuance is proposed in years in which previous
debt falls off for major projects such as street projects and parks projects. This
section is included to consider the future debt planning impact on the debt portion
of the tax rate.

Water and Wastewater Enterprise Fund

Revenues in this enterprise operation are based on projected rates sufficient to
cover operations in each of the future years. Rates are based on projected cost
increases from the City of Fort Worth and North Richland Hills as well as
baseline increases for the city’s operations, including salary plan adjustments
and health insurance increases. Future projected rate increases for both water
and wastewater are shown. Departmental operational expenditures are
assumed to increase 2% across the board on assumptions that inflation will
moderate.

The operating budget includes funding for the outstanding water and wastewater
debt issuances and projected additional funding based on the City’s 5-year
Capital Improvement Plan in order to continue the annual water and wastewater
infrastructure improvements. A water and sewer rate study is conducted
annually to ensure future revenues will be sufficient to cover operation and
capital costs.

CLOSING COMMENTS

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