FY2021 Budget

3. Enhanced staff efficiency, workload management and oversight in critical areas, noted in various front-line service level departments such as Public Safety, Public Works and Parks and Recreation, and internally in Information Technology. 4. Allocations to identified budget priorities. The most notable programs included in the proposed FY 2021 budget are the Smart Shuttle public transportation initiative, the Smart Cities program development, and various sustainability initiatives. The proposed FY 2021 budget does not include any transfers to reserves (roadways and transportation 4 , capital investment, sidewalk/pedestrian or fire apparatus) and does not propose any new capital investment program appropriations as were included in the FY 2020 proposed CIP. Work on projects appropriated in the current year budget can continue as Town Council explores bond referendum options and evaluates the future financial impacts of COVID-19. A small fund balance appropriation to support one-time needs is proposed in FY 2021 to ensure essential needs are incorporated into the fiscal year plan lessening further impacts on strained resources. More than ever, maintaining a strong, healthy fund balance will be necessary to protect the town from the future uncertainty of a long-term downturn, but more importantly, to ensure the town has the necessary cash flow to award a contract for the Morrisville-Carpenter Road widening project expected in the next several months. Ongoing friction at the state level between the executive and legislative branches of government has resulted in no adopted state budget, and the general inability for local governments to gain traction for discussion of additional municipal revenue options. This challenge further influences the programs and services we can provide within resources under our control. The local option sales tax, generally touted as one of the most viable options towns could use, is not a viable option at this time. Available budget capacity will be greatly influenced by the determination of the property tax rate, this year more than ever. A RNTR will not provide the town the resources it needs to meet expected and anticipated needs. The town must also consider that while the town has benefitted substantially from real property growth (that will be discussed later), the town is also approaching full build-0ut, and growth at historical levels will not be sustainable. At some point, the growth in value of a penny on the tax rate will not remain the same as it is today. Town Council will need to continue evaluating both current and future budget year needs within existing available budget capacity. The solid waste/recycling program, which is paid for through property tax revenues, accounts for an approximate 2.25 cents of the property tax rate and reduces the capacity to program other expenditures. A comprehensive stormwater operations study completed in 2020 has provided valuable information to continue assessment of the stormwater utility. However, the cost of the stormwater program will also be heavily influenced by future capital infrastructure needs that must be evaluated and prioritized to appropriately evaluate the future fee, and in relation to policy decisions about whether the program should be self-

4 At adoption of the budget, Town Council did include an appropriation of $900,000 to the Roadway & Transportation Reserve fund for future investments improving roadway congestion and connectivity.

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