Page 127 - CityofWataugaAdoptedBudgetFY25

BUDGET SUMMARY

EXPENDITURE/EXPENSES
DESCRIPTIONS, EVALUATIONS AND PROJECTIONS

The following information is a general description of the major expenditure/expense types
for the City’s major operating funds.

Changes in operating expenditures vary in each fund based on the nature of the services
provided in each fund.

Personnel Services

This category consists of personnel salaries and benefits. Salaries include base pay,
overtime, step-up pay, certification pay, sick and vacation pay, and holiday pay. Benefits
include healthcare, retirement, accrued sick and vacation leave, partial tuition
reimbursement, longevity pay, and payout of certain leave accruals per policy guidelines.
The City of Watauga participates in the Texas Municipal Retirement System (TMRS) for
eligible employees.

Across all City of Watauga operations, personnel services increased approximately 5%
(excluding one-time expenditures paid by grant funds). This increase is reflected in the
changes outlined in the following pages.

Organizational Objectives: Retaining and attracting qualified staff is integral to our
organization. Civil service and general government retention, hiring, and retirements
have greatly impacted the City in the last few years.

The City must continue to develop strategies to retain current employees and recruit new
employees.

Personnel Highlights

In FY 2021-2022, the City began to restore positions that were eliminated during the
FY2020-2021 fiscal year due to budget constraints and the reorganization of the
recreation center operations due to the impact of the pandemic. In the FY2022-2023
budget, a total of 13.25 full-time equivalents were added. Of those positions, 7.25 full-
time equivalent positions were restored and funded, and 6.0 positions were added as
determined by the Personnel Enhancement Plan. The ARPA grant funded 7 full-time
equivalent positions which were later reduced to 6.0 full-time equivalent positions. In
FY2023-2024, the funding for 3.5 full-time equivalent positions was absorbed by the
General Fund. In the FY2024-2025 budget, the remaining 2.5 full-time equivalent
positions are proposed to be funded by the General Fund in order to close out the ARPA
funds for personnel costs.

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