Page 12 - CityofWataugaAdoptedBudgetFY25

and trail lighting at various parks, a fire engine, and various building improvements
at various City facilities.

• Sales tax growth is forecasted at a moderate increase of 1.5% over the FY2023-
2024 forecast. Through May, sales tax receipts are trending approximately 1%
above the prior year and 3% under original budget expectations. Sales tax is
influenced by economic trends, and the City has seen more volatile sales tax
activity in FY2023-2024. The Texas State’s Comptroller’s office reports that state-
wide, consumer driven retail trade is showing a decline, while receipts from
restaurants are growing moderately.

• The remaining positions (2.5 full-time equivalents) that were funded by the
American Rescue Act Plan (ARPA) grant are being absorbed by the General Fund
this budget year. The ARPA grant originally funded 7 full-time equivalents to
restore positions that had been reduced as a result of the economic impact of the
pandemic. The number of FTEs funded by ARPA was later reduced to 6 full-time
equivalents and in FY2023-2024, 3.5 full-time equivalent positions for parks and
recreation were moved into the General Fund. The spending timeline for the ARPA
funds is for funds to be obligated by 12/31/2024 and spent by 12/31/2026.

• 4 additional positions (1.75 full-time equivalents) are included this fiscal year to
provide for an additional Code Enforcement Officer, a part-time Administrative
Assistant for the City Secretary’s office, and two additional part-time Recreation
Attendants. The new positions are funded to be filled later in the fiscal year to
reduce the budgetary impact. The cost of the recreation attendant positions will
be recovered through revenue received for increased rental activity. Other
personnel changes recommended in this budget include reclassifications and/or
promotions for existing positions.

• The implementation cost of the 2024 compensation study is included in the
FY2024-2025 budget and aligns with the City’s stated goal of maintaining
competitive wages and attracting and retaining qualified staff. In addition, a 4%
cost of living adjustment for all employees is included in the budget. This budget
provides funding to continue the civil service step increases as well as merit
increases for general government employees. The City’s portion of the retirement
rate (TMRS) increased this budget year by 0.89%, totaling 17.73%.

• The budget includes a significant decrease in medical insurance costs from the
City’s medical insurance provider in the amount of approximately 30% with a
combined change in provider plus changes in plan design. The City continues to
explore ways to mitigate the cost of insurance while limiting the impact on
employees.

• 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 restoration of
positions lost due to the impact of the pandemic, the leave liability reduction
program, and equipment purchases. Several projects have been completed and

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