Page 95 - CityofWataugaAdoptedBudgetFY24

BUDGET SUMMARY

General Fund

The General Fund is the primary operating fund of the City and is used to track the
revenues and expenditures associated with the basic City services that are not
required to be accounted for in other funds. These services include police, public
works, parks,and recreation, library, and administrative support services. All
general tax revenues and other receipts that are not restricted by law or contractual
agreements to some other fund are recorded in this fund. The General Fund also
records the general operating expenditures, the fixed charges, and the capital
improvement costs that are not paid through other funds.

Special Revenue Funds

There are three major Special Revenue Funds:

The Parks Development Corporation Sales Tax Fund was established to account
for a ½ cent sales tax increase approved by the voters in May 1994. The purpose
of the increase in sales tax is to build city parks and improve existing parks under
the supervision of the Watauga Parks Development Corporation. In FY2018-2019
the corporation’s name was changed to Economic Development Corporation and
the focus was redirected to economic development.

In May 2012, voters approved a reallocation of ¼ cent sales tax from the Parks
Development Corporation to the Street Maintenance Fund to provide for the
maintenance of existing city streets. The reallocation was effective October 1,
2012, and reauthorized by voters in May 2016. In November 2020 voters chose
not to reallocate the tax and as a result the street maintenance dedicated sales tax
was abolished effective January 1, 2021.

The Crime Control and Prevention District was established to account for a ½ cent
sales tax increase approved by voters in March 1996. The purpose of the increase
in sales tax is to enhance law enforcement in the area. In 2001 voters approved a
ten-year extension of this tax. A ten-year extension was passed in November 2010
and again in November 2020.

Other special revenue funds include the court funds, library donation fund, and the
PEG fund.

Capital Projects Fund

The Capital Projects Fund is used to account for financial resources to be used for
the acquisition and construction of major capital facilities and equipment. Financing
is provided primarily by the sale of general obligation and contractual obligation
bonds and through cash transfers from the General Fund. The 5-year Capital

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