Page 12 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

Capp Smith will be funded by the Economic Development Corporation. The
majority of the City’s capital project funding is through debt issuance.
The 2025 debt issuance in the amount of $10.3 million is included in this
budget to fund these projects and capital outlay needs. The Capital Improvement
Summary is included in this budget document.

• Critical capital outlay items such as vehicles, equipment, and technology are
funded by the equipment replacement fund, cash reserves, and the 2024
Certificates of Obligation issuance. A fire engine in the amount of $1.5 million is
proposed to be funded by the 2024 issuance. The 2025 debt issuance will fund
$525,000 for an ambulance. Several capital equipment items and vehicles will be
funded by cash reserves. The 5-year capital outlay plan is included in this budget
document.

This budget reflects the City’s commitment to quality services and long-term financial
sustainability. It presents a balanced plan with prudent revenue and expenditure
estimates aligned with the City Council’s Strategic Plan, developed in connection with the
June 2025 Strategic Planning Session. The FY2025–2026 budget prioritizes maintaining
core programs and services while preserving reserves in line with fiscal policy.

Strategic Direction

Setting long-term priorities is a key responsibility of Watauga’s elected officials. In May
2025, the City Council reviewed and updated its strategic plan, with revisions to be
adopted during the FY2025–2026 budget process. By focusing on clear goals and
initiatives, Council and staff guide financial and operational decisions to advance
community excellence. The following goals and initiatives are supported in this budget:

Policy Issues, Goals, and Objectives for FY2025-2026

The FY2025–2026 budget supports the continuation of efficient operations, essential
services, and the achievement of City Council goals. Key budget policies include:

• Maintaining or improving the level of essential government services.
• Regularly evaluating all services for efficiency and effectiveness, eliminating those
that are unnecessary.

The FY2025-2026 Budget prioritizes managing inflation, remaining competitive in
municipal hiring, advancing infrastructure and capital replacements, and enhancing
community engagement and citizen satisfaction. Several programs will be implemented

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