FY23 FULL BUDGET REPORT ADOPTED

BUDGET PLANNING AND DEVELOPMENT

Budget planning, development and implementation is a year-round focus for Town Council and staff. Careful attention to revenue forecasting, management of expenditures, and key projects and initiatives facilitates recognition of and capitalizing on opportunities as they become available. Additional emphasis during FY 2022 to plan ahead for FY2023 and beyond has been in several key focus areas: o Ensuring a successful bond referendum, subsequent credit rating update, and bond sale and issuance. o Considering revenue enhancement options other than an increase to the property tax rate. o Moving major capital projects forward. o Maintaining a strong and stable fund balance that allows for flexibility and to take advantage of emerging opportunities. The early summer months of FY 2022 were spent in active public education and public awareness of bond referendum projects in advance of the November 2021 ballot. The Morrisville Chamber of Commerce was the Town’s advocacy partner, resulting in the successful approval of $37million in public safety, parks and recreation and streets, sidewalks, and connectivity projects over the next six years. The bond approval is supported by a $0.03 cent tax increment dedicated exclusively to the debt service necessary to pay for these projects and will not be used to support increased operational capacity. Town Council also made it clear that there was no desire to further increase the tax rate in the coming year or pass along any additional financial burden to the Town’s taxpayers this year when a proposed solid waste user fee was discussed. Those early indicators have been honored throughout the preparation and presentation of the FY 2023 proposed budget. Town Council did express support for a stormwater fee increase to address significant future stormwater infrastructure needs following the development of a Stormwater Master Plan that is incorporated into the proposed FY 2023 budget for the stormwater fund. Town staff has been aggressive in pursuing Town Council priorities, notably land/property acquisition, Town Center, and evaluation and study of other major capital projects such as a dog park, intersection improvements, Church Street Park expansion and the launch of the Smart Shuttle in October 2021. The influences of these significant efforts directly impact both the operating and capital budgets presented this year. Senior management and department head staff initiated current year budget progress review earlier (December versus January) to provide Town Council with a timely picture of how the Town was faring as we continuedmoving through a fiscal year still heavily impacted by pandemic influences. I applaud Town staff for their resilience, dedication and continued accomplishments and achievements in this volatile and changing work environment. FY 2022 updates and the first preliminary snapshot of what might be proposed for F Y 2023 occurred during Town Council’s Winter Meeting in late January with departments showcasing informative presentations on current and future needs while celebrating successes. The first FAQ (frequently asked questions) compilation was prepared following the winter meeting, providing additional information requested by Town Council. In January, Town Council also received a budget preview administrative report that highlighted initial identified influences on budget development. This report reiterated the message that has been shared in the past two budget messages that growth in recurring costs that contribute to base budget minimum o Verifying eligible uses of ARPA funds. Each of these topics will be explored more in-depth in the following sections of this budget narrative summary.

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