FY2021 Budget

Each step of the budget cycle is based on the guidance and understanding of Town Council, attention to community priorities, and an emphasis on historical context, trend analysis, benchmarking, forecasting, and continuous process improvement. Budget kickoff occurred earlier this year in December 2019 to facilitate training and implementation of the new budget module in Munis. The initial development activities focused budget preparation on current fiscal year progress and factors affecting the accomplishment of operational goals, especially major projects. This was particularly important this year, with several new department heads and evaluations of existing strategic plan goals, and master plan evaluation and implementation expectations. Mid-year forecasts and discussion of potential FY 2021 budget requests were prepared in January. Pre-budget meetings were held with departments in mid-February that helped formulate the mid-year budget report and FY 2021 budget preview provided to Town Council in late February. These meetings are also effective in collaborative participation and decision-making and provide valuable insight into the needs and opportunities of the town. Town Council and staff have also worked collectively to explore and advance the Capital Investment Program (CIP) through significant dedication of resources in the current year. Periodic updates on other major projects are provided regularly, notably the recently completed McCrimmon Parkway Extension, the upcoming Morrisville-Carpenter Road project, and Town Center Core. A significant component of this year’s upcoming budget presentation focuses on property tax revaluation. Town Council received a pre-budget presentation in October 2019 to cover revenue topics, including revaluation and solid waste fees. The goal of property tax revaluation, conducted by the Wake County Tax Assessor every four years, is to redistribute and equalize the tax burden through determining the assessed value to “catch up” to a current fair market value. Property owners were notified in December 2019 of the updated assessed value and have the right to appeal established values. A preliminary estimate was provided to the Town in February and was included in the FY 2021 budget review discussion. The appeal process wraps up in May, at which time the Town will receive final estimates. The Town is required to include a calculation of a Revenue Neutral Tax Rate (RNTR) in the upcoming budget. Amore detailed discussion of RNTR is included in the General FundOverview section later in this budget message. Solid waste costs correlate to an approximate two and one-quarter cents of our tax rate and is currently absorbed in the property tax rate. Solid waste costs continue to escalate, in large part due to dramatic recycling program cost increases resulting from loss of recyclable markets. Most other Wake County municipalities charge for this service separately. As the Town evaluates current and future revenue streams and aligns themwith priorities and needs, a user fee approach to solid waste services may need to be considered. Departmental budgets were submitted in March. Reviews of budget submittals were vetted and reviewed virtually with department heads to ensure a comprehensive understanding of the requests and needs, justification, and prioritization. All requests are gathered to be reprioritized collectively for incorporation into available budget capacity (forecasted revenues less existing

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