FY2021 Budget

recurring expenditures). Recurring expenses such as staffing and increased programming are scrutinized since they commit future base budget capacity.

Several key factors have impacted the FY 2021 proposed operating budget capacity available to incorporate new or expanded programs:

✓ Addition of $2.0 million in recurring expenses in the FY 2020 budget to support expanded costs of services for existing and new programs. These include examples such as recycling, senior programming, additional staff support including Fire personnel, Public Works personnel, and Parks and Recreation personnel for the expanded Morrisville Aquatics and Fitness Center that is nearing completion; ✓ Recognition of $1.4 million in debt service for the McCrimmon Parkway Extension and Morrisville Aquatics and Fitness Center for the bonds issued in October 2018; and ✓ The adverse influences on revenue projections for both the current year and forecast for FY 2021 as a result of COVID-19 economic impacts that remain unknown. Revenue forecasts, which were originally developed in early March were reevaluated in late March as States of Emergency at the local and state level were declared. While sales tax revenues are highly sensitive to economic conditions and the primary area where reduced projections are observed, effects on associated revenues such as vehicle tax, collection rates and Parks and Recreation programs have also been adjusted. Budget capacity levels associated with three levels of revenue estimates were analyzed and used to evaluate the potential availability of financial resources for programming. RNTR will be a major influence on available revenue levels. While budget capacity has been modified to reflect these uncertain trends and potential long-term downturn, the town’s needs are not being reduced. While tough prioritization choices are always made to balance a budget, this year has been even harder. The proposed FY 2021 budget presentation and related discussions will be different this year as we recognize that while some things may “pause,” we must remain strong, focused, and confident in our underlying strength of our regularly conservative forecasting, healthy fund balance, and ability to manage and control spending, combined with confident optimism in the future for our town. The proposed FY 2021 budget development has continued to employ the use of available capacity resulting from the excess of revenues over routine expenditures for impactful programs and initiatives. It also provides the funding necessary to: 1. Replace and replenish assets that are vital to the work of the Town. This has been done where essential, with some deferred replacements for assets with some remaining life. For departments requiring additional vehicles, vehicles with remaining useful life and in good condition will be retained and repurposed rather than placed in surplus. 2. Maintain and adjust base budgets in a reasonable manner. Examples of where this is demonstrated is Information Technology agreements and Public Works recycling program costs.

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