Page 11 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

• FY2025-2026 sales tax is projected to grow 1.5% over the FY2024–2025 forecast.
As of May, receipts are 2% above last year but 1% below budget. Despite the
Texas Comptroller’s optimistic retail outlook, local sales tax activity remains flat,
and businesses are more cautious. The April 2025 Dallas Fed Retail Outlook
Survey showed a modest 2.3% increase in retail activity.

• This fiscal year adds 4.0 full-time equivalent positions: a Maintenance Worker I for
the Storm Drain Fund and an Administrative Assistant for Public Works and
converts two part-time roles—Fire Department Administrative Assistant and
Kennel Technician—to full-time. The budget includes a new School Resource
Officer, partially funded by Birdville Independent School District. Some of the new
positions will be funded beginning January 1, 2026, to reduce the impact on the
budget. Additional personnel changes include reclassifications and promotions to
meet succession planning efforts.

• The FY2025–2026 budget includes a 3% cost-of-living adjustment, continues
civil service step increases, and funds merit raises for general
government employees. The City’s TMRS retirement rate decreased by 0.71% to
17.02% due to the City adopting the non-retroactive COLA option in FY2024-2025.

• The adopted budget includes decrease of 1.2% in medical increases
3% dental and 22.5% for vision insurance costs. The City continues to seek

ways to reduce these costs while minimizing the impact on employees.

• The adopted budget includes a 30% increase in TML risk insurance due to
worker’s compensation, vehicle liability, and property insurance increases due to
inflationary pressures and experience factors. The City is continuing to evaluate
ways to help manage risk.

• 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, 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
the lead pipe identification and Park Vista Storm Drain project commenced in
FY2024-2025. The Utility project (Summertime Lane) is expected to be completed
by summer 2026. All funds must be spent by December 31, 2026.

• A utility rate adjustment went into effect January 2025 to offset the increase in rates
from the City of Ft. Worth. Automated Metering Infrastructure (AMI) is to be funded
by the 2024 Certificates of Obligation. This project is underway and expected to
begin by the end of FY2024-2025.

• Recommended capital improvement project funding is included in this budget.
These include continuation of infrastructure projects (streets, water, sewer,
drainage), sidewalks, and parks and facility improvements. The food truck park at

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