Page 125 - CityofWataugaAdoptedBudgetFY25

BUDGET SUMMARY

96% built out, this revenue is not expected to increase substantially. However, in FY2022-
FY2024, the City has experienced an increase in construction permits related to
renovations and building activity along Bursey Road and Hightower. These projects are
expected to continue in FY2024-2025. An increase of 8% in FY2024-2025 from 2024
estimated revenue is expected from the permits remaining for these projects.

Projections are based on the established historical base of issued permits and the
expectations of inspectors and economic development staff for new permits and
buildings. This revenue source is estimated to bring in 4% of General Fund revenues for
FY2024-25.

Intergovernmental revenue - Intergovernmental revenue consists of a payment-in-lieu-
of-tax (PILOT) from the enterprise funds based on a percentage of revenues from the
water and sewer utility systems and the storm drain system. This is similar to the fee
charged to other utilities for the use of City rights-of-way except for City-owned utilities.
Projections are based solely on revenues projections for those revenue generators. Such
funds total 3% of General Fund revenues.

Charges for services – This category includes General Fund charges, as well as Water
and Sewer and Storm Drain fees. The category makes up 27% of city-wide revenues.

General Fund - These charges for the General Fund include recreation fees, fees paid
by developers as reimbursements for City services, charges for emergency medical
service (EMS), and various other service charges. Service Charges account for about 7%
of General Fund revenues. Projections are based on historical use of City services as
well as rates charged by the City on such services. Recreation programs are being
expanded in FY2024-2025 that increased revenues in this category. EMS services have
been outsourced to Emergicon, which handles all billing and initial collections.
Ambulance revenues have experienced growth the past couple of years due to increased
volume and collection activity due to the Fire Department running a second ambulance
beginning in FY2020-2021. Increases in the General Fund are estimated at 12% due to
fee increases and new program charges.

Water and Wastewater Fees are included under Charges for Services category and are
received primarily from water sales to City utility customers and sewer charges. For
FY2024-2025, Utility Fund Revenues account for 21% of all city-wide revenues. Water
and Sewer revenues are projected to increase 8%. Other sources consist of penalties,
service and miscellaneous fees, and investment earnings. The increase in rates is due
primarily to the City of Ft. Worth increasing wholesale wastewater treatment costs and
the City’s planned purchase of Advanced Metering Infrastructure (AMI) in FY2025 and
the issuance of debt to fund this project. The financial objective of the water and sewer
rates is to ensure that rates are adequate to meet all operating needs; cover existing debt
service; and provide enough working capital levels to be fiscally responsible.

The Storm Drain Utility Fees are also included under the Charges for Services Category
and the fee is assessed on water bills and will generate funding for drainage projects and
maintenance of the City’s storm drain system.

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