FY2018 Recommended Budget

comprehensive update of CIP priorities, including additions and potential reprioritization, is scheduled to occur during Fiscal Year 2018.

Debt The Town’s debt policy outlines the goal of keeping tax-supported debt service to a maximum of 15% of governmental expenditures. The Town’s current annual debt obligation of $2,524,300 in Fiscal Year 2018 is 7.2% of the proposed budget as compared to 5.5% of the original budget for Fiscal Year 2017. New debt will be limited to strategic investments and timing of the retirement of existing debt. Debt added in Fiscal Year 2017 included a partial debt obligation payment for the $14.3 million in Street Improvement Bonds approved by voters in 2012, of which $10 million was issued during the fiscal year. Full debt service for the issuance of the $10 million in bonds, and partial debt service for scheduled issuance of the remaining $4.3 million is included in the Fiscal Year 2018 budget. Shorter-term financing for the Town’s cost share of the Morrisville-Carpenter Road improvement project is proposed and a partial debt service payment of $225,000 is included in the Fiscal Year 2018 budget.

Future debt service obligations include full debt service for Phase II of the McCrimmon Parkway Extension and for issuance of $5.7 million in Park Improvement Bonds, scheduled to begin in Fiscal Year 2019.

Fund Balance The recommended budget includes General Fund fund balance appropriations of $2,823,000 to support the following capital investment projects: $2,000,000 Town Center Core infrastructure improvements (road and stormwater) that support development of the future Wake County Library preferred location and other proposed development in this area.

$ 480,000

Church Street Park Field Lights 65% match required for the Wake County grant.

$ 65,000

Airport Boulevard Bike/Pedestrian Project NCDOT required matching grant funds.

In addition, a fund balance appropriation of $278,000 for sidewalk project prior year allocations is recommended for transfer to a Sidewalk/Pedestrian Capital Project Fund. These funds remain committed to projects currently underway, those identified for future required matching grants, and for sidewalk segment gap projects identified on the sidewalk prioritization list.

The Town has a policy of maintaining 25% to 45% unassigned fund balance. Unassigned fund balance is important, allowing the Town to maintain the cash flow necessary for regular operations and projects requiring outlay of resources for related reimbursable expenditures. A strong fund balance also protects the Town from lost revenue resources and unknown impacts from economic downturns, significant unforeseen expenditures (such as weather related activities), and potential legislative actions, as well as to take advantage of new or timely unbudgeted opportunities that help advance the vision and mission of the Town. Over the past several years, the Town has prudently managed fund balance levels to prepare for major projects that have been in development and that required significant financial commitment. Fund balance has not been used for routine or nominal expenditures, but is reserved for key project initiatives. As a part of the Fiscal Year 2017 budget adoption process and during the fiscal year, Town Council has appropriated fund balance to support those goals. The recommended fund balance appropriations for Fiscal Year 2018 continue that approach toward maintaining a stable and reasonable operational budget, meeting

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