FY2020 Budget

Operational Expenditures

The base budget for each department’s operations is reviewed to help aid in understanding the core costs of ongoing and routine activities and helps clearly identify the budget capacity for new initiatives and one- time funding requests. Additions to the base budget due to changes in programs, services and personnel are identified and driven by decisions made by Town Council during the budget review process. Adjustments to the base budget have been very modest historically, as staff have recognized the need for fiscal responsibility and have maintained a conservative approach to recommending major changes to the base budget. As noted in the FY 2019 budget message, current staff levels in some departments do not support the expected levels of project and service programming to support the Town’s continued growth. The FY 2020 proposed budget includes a more significant request for additional staff to address this issue. This trend is expected to continue in future budget years. Basic routine services and recurring expenses (excluding transfers, contributions and grants, and capital outlay) are approximately $28.3 million annually at current operational service levels. Routine expenditure additions to the Fiscal Year 2020 base operating budget are $3.4 million ($2.0 million recurring and $1.4 million debt service) and represent a 12% increase to the base operating budget. The Fiscal Year 2020 budget provides additional funding above the base operating budget to support over $14 million in priorities that enhance accomplishment of the strategic plan, accelerate capital projects, maintain and improve Town infrastructure, and support targeted programs and initiatives established as priorities by Town Council. Of this amount, $5 million is associated with the activation of prioritized CIP projects. Additional investment in human capital is essential to meet workload demand, but over 80% of budget recommendations remain one-time or nonrecurring items that address targeted needs. An additional $1,040,000 in allocations are set aside in designated reserves toward future spending as directed by Town Council, including roads and transportation, capital improvement planning, and fire apparatus equipment replacement. The FY 2020 proposed operating budget includes an appropriation of $1,250,000 from the fire apparatus equipment reserve for the planned replacement of Ladder 2. Approximately 10% of the Fiscal Year 2020 proposed spending is related to debt service for road improvement projects. Debt service for McCrimmon Parkway Phase II, MAFC renovations and the Town’s cost share of $2.7 million for the Morrisville-Carpenter Road project was issued in FY 2019 and is included in the FY 2020 proposed budget. A long-range forecast of debt service that supports the CIP through reinvestment of retired debt capacity into new debt and considers ways to maximize use of existing reserves, while exploring future bond referendum issuance and other available debt instruments will facilitate accomplishment of CIP and strategic infrastructure investment goals. Expenditures have been categorized into major types and focus areas to assist in review of budget requests. A budget priorities justification narrative is provided as a part of the Budget Priorities Summary on page 28. Expenditures are subsequently included in Department Budget Profiles . Similarly to Fiscal Year 2019, two additional increased tax increment scenarios that would support an expanding set of priorities and needs have also been provided with the proposed Fiscal Year 2020 operating budget but are not included in Department Budget Profiles . Priorities outlined in the enhanced tax scenarios could be incorporated into current Town Council discussions or future discussions following review of FY 2019 financial results or as a part of the FY 2021 budget development.

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