FY2021 Budget

Construction of the Town Center regional stormwater control measure (SCM) has begun. This SCM will have capacity to treat stormwater generated for the future Town Center and the existing development in this area. Work is expected to be complete by the end of the calendar year. The Town issued $10 million worth of Street Improvement Bonds in 2017 for Phase I of the McCrimmon Parkway Extension. An additional $4.3million was issued in October 2018 for Phase 2 of that program which was managed by NCDOT. Phase I opened in August 2019 and Phase 2 opened in April 2020. Debt service for both segments was fully incorporated in the FY 2020 budget and continues in FY 2021. The Town also issued $5.7 million in authorized bonds from the 2012 Park Improvement Bond Referendum and $1 million in installment financing for the MAFC renovation project. MAFC was closed in November 2018 and is slated for reopening this summer. Debt service for this bond issuance is recognized in FY 2020 and continues in FY 2021. The Town of Morrisville and Wake County continue their collaborative efforts toward maximizing the functional placement and programming for the Public Works facility and Wake County convenience center. Work on this project will continue during FY 2021, with projected construction moved to the FY 2023 planning year. This will be ahead of the NCDOT planned expansion of Aviation Parkway, which was delayed. Town Council continues to discuss and deliberate on the future of our Town Center. An updated Request for Proposal is in development for planned issuance in the next several months. The Morrisville Community Library is nearing completion and is slated to open in summer 2020. Debt service of $4 million for bonds issued in 2013 for Church Street Park is included in the FY 2020 budget and will continue until FY 2034.

Debt

The Town’s debt policy outlines the goal of keeping tax-supported debt service to a maximum of 15% of governmental expenditures. The Town’s current annual debt obligation of $3,492,000 in FY 2021 is 9% of the proposed budget as compared to 9.9% of the original budget for FY 2020. There is no new debt added for FY 2021.

Fund Balance

The recommended budget includes total general fund balance appropriations of $840,350 12 , less than 3% of expenditures. Fund balance appropriations support operational non-recurring or one- time expenses. The unassigned fund balance is projected to be at approximately $11.3M or an estimated 33.4% of general fund expenditures as of June 30, 2020.

Retention of a strong fund balance is essential to maintaining adequate working capital for cyclical cashflow and preparing for future unknown impacts. Such is the case currently with potentially

12 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 anticipated from restricted sources.

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