FY2021 Budget

replacement of critical equipment and plan for future investments in a transparent and fiscally responsible manner.

How tax dollars support core services and meet growing demands is fundamentally important for Town Council, citizens, and community stakeholders to understand. The impact of expanded programs, activities, and projects; and how current decisions affect future forecasting of and planning for Town needs is also important. FY 2021 and future year capacity is projected to become even more limited to advance new initiatives and projects as recurring expenditures increase to match the demand for existing programs and services, while anticipated resources are impacted by uncertain economic conditions. The driving focus of the proposed budget remains on fulfilling existing commitments, essential investments and keeping pace with growing service needs. The FY 2021 budget is balanced carefully utilizing our resource authority, leveraging available reserves and intentional deployment of good fiscal management strategies throughout the performance year. The proposed tax rate 1 for FY 2021 is adjusted from $0.39 to $0.365, which is a reduction of 2.5 cents from the current tax rate, and 4 cents over the RNTR of approximately $0.325. Please see the RNTR section of this budget message for additional information and disclosures. An appropriation of $840,350 2 of capacity available in the Town’s fund balance is proposed in addition to other available reserves to support important one-time General Fund expenditures. Controlled spending approaches have deferred or reduced many departmental requests to achieve a balanced budget. Additional discussion of the fund balance is included in that section of this budget message. There are no proposed allocations to roadway and transportation, capital investment or sidewalk and pedestrian safety reserve funds and no allocation to the fire apparatus reserve. There are also no proposed capital budget items for the Capital Investment Program (CIP) in FY 2021. Projected expenditures for the upcoming year outlined in the FY 2020 CIP have been shifted into future years. As the town considers a future bond referendum, work continues projects included in the FY 2020 operating budget and CIP projects identified in the capital budget until those discussions are complete and move forward. The proposed budget includes implementation triggers for authorized budget expenditures to be spent only after a mid-year review to enhance the ability to manage and control the Town’s financial position in these unusual circumstances. Many proposed new full-time positions and operational items in the budget are included with delayed implementation following the FY 2020 financial audit (September 2020) and mid-year review (December 2020) in order to effectively assess receipt of actual revenues in comparison to those forecasted for FY 2021. This approach allows the town to continue to illustrate to the public our confidence and optimism in our fiscal strength, our ability to rise above the challenging influences on this budget, and not fall behind on the foundational work we have done for the future, while also proceeding with care and caution

1 Town Council changed the proposed tax rate from 36.5 cents to 36 cents at adoption. 2 The fund balance appropriation at adoption resulted to $1,339,200 combined (general fund = $1,142,200 and stormwater fund $197,000). This does not include appropriations from restricted sources.

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