Page 37 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

The average taxable value of a home in Watauga this year is $237,352, an decrease of
.30%, or $710.00 from last year’s average taxable value of $238,062. The annual City
property tax on the average home at the tax rate of $0.5702/$100 is $1,354, a decrease
of $4.05 from the prior year. This represents a monthly cost of $112.88, or $3.71/day for
the City to provide services such as the day-to-day operations of the City including 24-
hour police, fire and EMS Service, public works, parks and recreation, library services,
building inspections, code compliance, and other essential City services.

The City is landlocked and approximately 97% built out, however, in the City and
surrounding area, there has been substantial growth in residential and commercial
property valuations over the last several years. In future years, growth is forecasted to
slow to 2-3% annually.
Ad valorem taxes are billed on October 1 of every year and are due on or before January
31 of the next calendar year. Projections for delinquent tax revenues for those collected
after January 31 are based on conservative prior years’ experience, as well as interest
and penalties on delinquent ad valorem taxes.

The City is in two different independent school districts (ISDs); so, overlapping property
taxes vary by what section of the City in which a property is located. The City‘s portion
has historically been less than one-fourth of the entire property tax bill for the area.

The City offers a $40,000 senior citizen exemption from assessed values and has
incorporated the over-65 and disabled citizen tax freeze. All other exemptions for disabled
persons and veterans are as stipulated by State law.

Sales Tax Collections
The second major financial consideration that guides the development of the budget for
the upcoming year is the projection of sales tax revenues. The City's 1.25% share of all
local taxable sales are remitted by merchants to the State Comptroller’s Office and then
distributed to the City monthly. Sales tax revenues comprise 26% of General Fund (GF)
revenues. The City has experienced volatile sales tax receipts this fiscal year which are
up 2% from prior year-to-date. Sales tax for FY2025-2026 is projected to be 1.5% above
the current year-end forecast for the 1.25 cent sales tax.
GENERAL FUND SALES TAX Sales Tax revenue for the

City is subject to the
general economic
$5,100,000
$5,000,000 environment of the DFW
$4,900,000 Metroplex. The City
$4,800,000 continues to see growth
$4,700,000
$4,600,000 in economic activity for
$4,500,000 current businesses and
FY22 FY23 FY24 est FY25 est FY26 continued online sales
budget tax growth.
Fiscal Year

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