Page 40 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

This is above the minimum target policy of twenty-five percent (25%) by
approximately $4.01 million which may be used in future budgets for one-time
expenditures, such as funding of capital projects.

General Fund Debt Service Fund

As discussed in the General Fund section above, the City bases its ad valorem tax
rate on the certified appraisal roll provided by the Tarrant Appraisal District (TAD). A
combined tax rate is adopted each year by the City Council that funds 1) the use and
support of the general fund (maintenance and operations rate) and 2) to finance the
City’s Debt Service Fund (referred to as Interest and Sinking, or I&S rate) for payment of
annual principal and interest due on outstanding general indebtedness. This is the
portion obligated for debt service payments and is projected on payments as
specified in debt obligations. The fund receives a transfer-in from the Economic
Development Corporation for its payment of various economic development and parks
projects within the City.

The City has existing long-term debt issued for the construction of capital facilities,
infrastructure, vehicles, and equipment. The debt service requirement for principal and
interest payments and fiscal agent charges totals $3,881,585 This amount includes debt
service for the 2025 Certificates of Obligation debt issuance for projects included in the
General Capital Project Fund and listed below. The ending fund balance is projected to
be $1,378,504.

General Capital Projects Fund

The General Capital Projects Fund provides the basic resource for general government
projects such as streets, parks, public facilities, equipment, and other infrastructure
needs. Many of these projects are funded from debt issuance proceeds and the
remaining are funded by a transfer in from the General Fund. Other revenues include
interest income on investments and proceeds of the sale of surplus property.

The following projects will be funded this year:

 Sidewalk program: $500,000.

 Engineering costs have been funded at $30,000 in anticipation of additional needs
throughout the City.

 Continuation of the Whitley Road street projects, and parks projects are funded by
the 2018, 2020, 2021 Certificates of Obligation proceeds and Tarrant County
Grant. These projects are continued from prior years.

 Continuation of Hightower Street Project

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