Page 143 - CityofWataugaAdoptedBudgetFY25

BUDGET SUMMARY

completed by fiscal year end. See the General Capital Projects Fund for a more detailed
description.

Strategic Initiative Fund

The Strategic Initiative Fund was created in FY2015-2016 to fund the strategic initiatives
identified as priorities by Council. The funding source for this fund is through General
Fund transfers. Last year the City closed out the use of the Strategic Initiative Fund and
moved some of the balance to the General Fund for future projects. The fund balance is
expected to be $41,529. The previous expenditures in this fund included $30,000 for the
home revitalization program through the Tarrant County HOME program that has been
moved to the Development Services in the General Fund. The General Fund will
continue to fund Council initiatives in future years.

Special Revenue Funds

Economic Development Corporation

The Economic Development Corporation (EDC) is funded by a ¼ cent sales tax and funds
economic development activities and quality of life projects in the City. Voters approved
a 1/2 cent sales tax under Section 4B of Article 5190.6, Vernon’s Texas Civil Statutes
with an effective date of October 10, 1994. In May, 2012, Voters approved a reallocation
of 1/4 cent for the Watauga Parks Development Corporation to go towards Street
Maintenance, effective October 2012. In FY2018-19, the Corporation was renamed the
Watauga Economic Development Corporation (EDC). Funds can only be used for
economic development activities and projects and funds are administered under the
supervision of the Economic Development Corporation Board of Directors. The City
Council retains final oversight authority and must approve the EDC’s programs and
expenditures.

Sales tax revenues are projected to be $996,000 for FY2024-FY2025. The ¼ cent share
of all local taxable sales are remitted by merchants to the State Comptroller’s Office and
then distributed to the City on a monthly basis. This represents approximately 99% of total
revenue for the Economic Development Corporation Fund.

The budget for this fund includes funding for the completion of various economic
development initiatives as guided by the Corporation’s strategic plan that was developed
in FY2019-20 and updated in FY2020-21. Expenditures are budgeted at $701,240. The
ending fund balance is projected to be $3,181,361.

The EDC Capital Fund Budget includes $100,000 for the splashpad filtration upgrade and
10,000 in contingency funding for projects that may be considered for funding for the fiscal
year. The projected ending fund balance is $26,345.

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