Page 28 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

Budget-in-Brief

The Budget-in-Brief summarizes the City of Watauga’s adopted FY2025-2026 budget,
covering October 1, 2025, to September 30, 2026. It outlines the City’s fund structure,
key revenue sources, spending priorities, and recent financial trends.

The FY2025-2026 budget reflects the City’s strong financial position and commitment to
fiscal responsibility. It maintains the tax rate of $0.5702 per $100 valuation and
includes updated property valuation data received July 24th. The adopted rate
supports both ongoing services and capital needs.

As a dynamic financial tool, the budget is based on historical data, current conditions, and
projected trends. It serves as a guide for the next twelve-months and balances estimated
revenues with essential service costs, new initiatives, and Council priorities. Even after
adoption, it remains flexible, allowing for amendments in response to unforeseen changes
or emerging needs.

Fund balances are used conservatively, primarily for one-time costs, and to provide as
much economic relief to our citizens as possible. All fund balances remain above Council-
approved minimums to ensure long-term financial stability.

Fiscal Year 2025-2026 Financial and Economic Outlook

Watauga operates in a complex financial environment as part of the Dallas-Fort Worth
Metroplex, home to 7.6 million people. The City, with a population of 23,806 and 97%
developed land, spans four square miles.

Property taxes make up 43% of General Fund revenues, posing a challenge for
future growth as the City nears build-out. Taxable property values have risen steadily,
however the decision to appraise every two years by Tarrant County Appraisal District
had a major impact on valuations this year. Valuations had a 1.3% increase in FY2026
compared to 7.3% in FY2025.

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