Page 14 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

 Goal #7: Make Watauga a Great Place to Work – Address staffing needs with the
Personnel Enhancement Plan, evaluate recruitment/retention efforts, and conduct
biennial employee satisfaction surveys (the first completed in Spring 2025). A
compensation and classification study is funded this fiscal year in order to meet
the goal of maintaining competitive wages for our employees.

 Goal #8: Evaluate Technology and workplace solutions – Fund ADA upgrades to
the City website, explore AI integration, and implement AMI technology to
modernize services.

Planning for the Future

The City’s financial condition remains strong and adaptable amid changing economic
conditions. While sales tax growth has slowed compared to nearby cities, reflecting
broader economic trends, sound fiscal management continues to support economic
development.

In FY2024-2025, the Bursey Road Townhomes were completed, and current projects
include a 67-home development on Hightower Drive. Both developments included the
enhancement of streetscapes, sidewalks, and greenspace. A 132-home project at Capp
Smith Park is also underway, contributing to future property valuation growth.

Property values have steadily increased, with FY2026 certified values up only 1.2% over
the prior year, following a 7.3% increase in FY2025. Tarrant County Appraisal District
changed the appraisal schedule to every two years versus every year, which has
impacted residential valuation growth. The average change from FY2024-2025 to
FY2025-2026 among cities in Tarrant County is 4%.

Several factors warrant a cautious, long-term approach to the FY2025-2026 budget:

• The City’s near build-out status requires strategic efforts to attract new
development and revitalize existing businesses, balancing economic benefit with
quality of life.

• Sales tax revenue growth is slowing and expected to remain modest.

• Inflation continues to drive up costs for salaries, benefits, and supplies.

• Legislative changes, including Senate Bill 2’s 3.5% revenue cap, restrictions on
local control, along with a proposed business personal property tax exemption, will
impact current and future budgets.

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