Page 8 - CITY OF WATAUGA, TEXAS ANNUAL BUDGET PORTRAIT

General Fund – This major section of the budget will show the reader how the General Fund
receives a greater variety of revenues and finances a wider range of governmental activity
than any other fund.

Enterprise Funds – This section includes the major Water and Wastewater Fund that
encompasses the operations of the City’s water and wastewater system. Much like a private
business, the revenues generated are to cover all operating and capital expenses of the
fund. The Storm Drainage Utility Fund operates in the same manner; however, capital
improvements are budgeted in this fund versus a separate fund. The Storm Drainage Utility
fund will provide significant improvements to the City’s drainage system in the current and
future years. The Internal Service Fund is used as an equipment and vehicle replacement
fund for capital outlay items identified for replacement in the current year. These items are
further described in the City’s long-term strategic plan section in the Five-Year Capital Outlay
Plan.

Special Revenue Funds – This section provides information on the special revenue funds
that provide an extra level of accountability and transparency that the revenues are being
used for the intended purpose. These funds include the Crime Control and Prevention
District Fund, the Economic Development Fund, Municipal Court Revenue Funds, the
Library Donation Fund, the PEG fund, and the Grant Funds

Capital Improvement Funds – The reader can obtain an overview of all City capital
improvement projects that have been approved and planned future projects as part of the
City’s Capital Improvement Program (CIP). Additional information is provided to the reader
primarily on current year projects that are generally managed by the Public Works
department or Parks and Community Services. The funding source for each project is
identified, including cash (pay-as-you-go), grants, and sale of long-term bonds. Future
years identify proposed funding, but do not provide a guarantee as all projects, even in the
current budget, will require additional council approval.

Debt Service Funds

This section summarizes current debt issuances and their purpose, as well as payment
schedules for current and future years for the General Obligation Debt Service and the Utility
Debt Service.

Appendix

The appendix contains ordinances adopting the tax rate and revenue, including the Truth in
Taxation Calculation. The appendix also includes the budget glossary to aid the reader in
verbiage used throughout the budget document.

This document should serve as a policy document, a financial plan, and an operations
guide to our City, as well as a communication device to our readers. We designed this
document to be a reference for a wide variety of users. As approved by the City Council for
the fiscal year, City Management may use this document as a guide for operations. The
City Council may use this document as a communication medium to staff and citizens to
describe objectives, goals, and mission of the City. City staff may use this document to
inform City Council and citizens of accomplishments and services. Current and prospective
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