FY2021 Budget

Note: This document includes updates and footnotes notating changes resulting from Council deliberations and final adoption on June 23, 2020 since the Town Managers original recommendation presented on May 12, 2020. Adjustments at adoption did not materially change percentages and ratios originally calculated.

BUDGET MESSAGE

May 12, 2020

MAYOR CAWLEY AND MEMBERS OF TOWN COUNCIL:

Since budget preparation for the upcoming fiscal year began earlier this year, the focus of our daily lives and how we carry out our regular work activities has changed. As I write this budget message from my home office, I recognize that the experience of living through the COVID-19 pandemic event will have both short-term and long-range impacts on our community for our residents, our businesses, our interlocal partners, our elected officials and staff. How we view even the little things have changed. It will take a fiscally nimble Town to responsibly adapt and manage through the uncertainty while remaining committed to accomplishing our mission, vision, and goals that we value for the community. The Town’s values and ideals are captured in our strategic plan, which serves as the framework for what is incorporated into the annual operating budget and long-range forecast. Both the strategic and financial perspectives have been influenced by COVID-19 in the balancing of our recurring needs and obligations with proposed initiatives that prepare for the future strength and vitality of the town providing for programs and services desired by our citizens and stakeholders. The anticipated impacts to critical revenue resources in both current and future revenue streams is illustrated by the reduced capacity to build the proposed budget that effectively meets all of the town’s needs. The development of the FY 2021 proposed annual operating budget is heavily influenced by the 2019 reappraisal of real property, evaluation of a revenue neutral tax rate (RNTR) and leveraging of tax levy to sustain desired services and continued commitment toward realizing our strategic goals. Other significant budget drivers include rapidly changing trends and future economic uncertainty that cause the margin of error in forecasting to expand. Both factors have influenced our typical conservative approach to revenue forecasts for FY 2021. The proposed Town of Morrisville annual operating budgets for the General and Stormwater funds along with associated, Special Revenue, and Capital Project funds for FY 2021 are submitted for your review and discussion. The proposed budget has been prepared in accordance with the

12