Page 46 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

Water and Sewer Capital Projects Funds

Total available resources are projected at $11,684,254 which includes remaining
proceeds from 2019 and 2025 debt issuance for funding of various water and sewer
infrastructure projects. Total expenditures are budgeted at $8,496,140 and include the
water and wastewater projects that were identified and prioritized in the City’s 5-year
Capital Improvement Plan. The ending fund balance will be $3,188,114 in this fund if the
planned projects are completed by September 30, 2026. Unused funds will roll over to
the next fiscal year until the projects are completed.

Joint Use Facility Fund

The City of Watauga and City of North Richland Hills jointly maintain a transfer station for
water. A maintenance reserve of $60,000 per year is scheduled. These reserves are
transferred in annually from the Water/Sewer operating fund. Reserves are used for pump
replacements and other maintenance, as necessary.

Equipment Replacement Fund

This year the City enhanced the use of the Equipment Replacement Fund that had been
reduced in FY2021. The City maintains an equipment replacement fund for use in the
purchase of rolling stock, equipment, and facility needs such as HVAC and roofing, and
technology replacement with a minimum cost of $10,000 and a useful life of at least five
years. This fund is designed to provide on-going financing for replacement equipment
once it reaches its expected life span.

The Equipment Replacement Fund purchases these items and charges the acquiring
fund a prorated amount based on the cost and useful life of the equipment. These are
reflected as transfers from other funds and charges for services. Expenditures are
budgeted at $671,550. The forecasted ending Fund Balance is $1,725,980.

Conclusion

This Budget in Brief is a summary of the major highlights of the 2025-2026 Fiscal Year
Budget document. This budget contains the significant budget changes and new and
expanded requests submitted by departments this
fiscal year. The summaries by fund and departmental detail
can be found in the fund sections of this document.

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