FY2018 Recommended Budget

of resources toward long-term growth, development of town assets, and services meeting the needs of the community.

The General Fund Ad Valorem revenue for Fiscal Year 2018 is estimated at $17,973,000 and represents 52% of the total budget. This estimate is based on a 99.7% collection rate. Overall, the Ad Valorem revenue is anticipated to increase approximately 5% over the Original Budget for Fiscal Year 2017. The impacts of the Builders’ Inventory Exclusions approved by the North Carolina General Assembly in 2016 is still not fully known at this time. The Town collects a $15 Vehicle Decal Fee, which remains the same for Fiscal Year 2018. Municipalities are authorized to levy up to $30 per vehicle tax, of which $5 may be used for any lawful purpose, and $5 may be used to fund public transportation system costs. The remaining $20 must be used to maintain, repair, construct, reconstruct, widen or improve public streets in the municipality that are not part of the State highway system. Sales and Use Tax Sales Tax revenues represent our second largest revenue source at 15% of the total budget. Sales Tax growth projections exceeded Fiscal Year 2017 estimates by 7% and have averaged 9% growth over the past few years. Forecasting assumptions remain consistent but conservative, and maximize use of anticipated revenues in the operating budget. Sales Tax revenues are projected to increase by 4.25% to $5,265,000 for Fiscal Year 2018. Other Major Revenues Utility Franchise Tax is projected to increase at a conservative 1.3% over Fiscal Year 2017 This is a weather dependent source and can be unpredictable. Declining sales in natural gas and shifts away from landline style telecommunications support a static approach. This revenue source represents 5% of the total budget. Development Services Permits and Fees (Planning, Engineering and Building Inspections) remain strong overall and have been adjusted by a moderate 2% over FY2017 original budget based on preliminary interest and approved site plans in queue. This does provided a basis to assume continued growth especially with commercial permits while residential is slowing. New residential projects will consist of smaller sites and will be limited as we approach build-out. Long-range forecast do consider some potential for commercial development interest after completion of the McCrimmon Parkway Extension. These revenues account for 3% of the total budget.

Parks and Recreation Programs and Facility Revenues project an increase overall by 3% over FY2017 anticipated actual due to expanded rental potential with Church Street Park & Northwest Park facilities coming online and some rebound/growth in programs. The timing and planned approach to renovations for the MAFC facility will have some degree of impact. These revenues represent 3% of the total budget.

Other intergovernmental revenues (Powell Bill, Wake County Fire Tax, Beer & Wine, Rental Vehicle and Sold Waste Disposal) remain comparable to current year budget estimates.

Stormwater ERU revenues increased by 5% over the Fiscal Year 2017 budget based on growth during Fiscal Year 2017 and modest growth assumptions for Fiscal Year 2018. Stormwater permit fee revenue projections remain the same.

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