Page 29 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

Sales Tax History

Sales tax contributes 26% to the City’s General Fund revenues. FY2024-2025 receipts
are trending 1% below budget but 2% above the prior year. FY2025-2026 projections
anticipate a modest 1.5%
increase.

The City’s strategic focus on
economic development—
including business attraction
and corridor revitalization—
aims to reduce reliance on
property taxes and expand
the sales tax base. These
efforts remain a top priority.

BUDGET HIGHLIGHTS – ALL FUNDS

Total revenues across all funds for FY2025-2026 are projected at $47.1 million,
including $3.89 million in grant funding from the American Rescue Plan Act and
Tarrant County street funding. Property and sales taxes make up 4
26% of total revenue, followed by charges for services (27%).

The City’s revenue projections are primarily based on historical trends, adjusted for
economic conditions and rate changes.

The total budget, including fund transfers and capital projects, is $80 million—a $5 million
increase from FY2024-2025. This increase is due to shifts in capital funding, debt service,
and personnel costs. Capital projects and equipment funding is budgeted at $37 million,
up from $33.6 million in FY2024-2025. Detailed information on the Capital Improvement
Projects and Capital Outlay Plan can be found within this budget document.

Expenditure categories include:

 Personnel Services – Salaries, benefits, and retirement contributions. The City
participates in the Texas Municipal Retirement System (TMRS).
 Supplies – Operational items such as office supplies, uniforms, fuel, and tools.
 Maintenance – Contracts and services to maintain City assets, including streets,
vehicles, and software.
 Contractual/Sundry – Legal, financial, and utility services, as well as inter-fund
transfers and debt service payments.

29