FY23 FULL BUDGET REPORT ADOPTED

work. As we seek stability and a return to some regularity, we will also embrace change and new ideas and approaches. The value and importance of in-person engagement has been clearly illustrated this year at all levels of the organization. Connection to each other and the importance of seeing faces and having collective dialogue and conversation that increase collaboration, understanding and overall morale and positive approach to a life-changing event are evident outcomes from our work in FY 2022. Local government work is about relationships and the people we serve. We are ready to emerge and embrace FY 2023. Special thanks to our Human Resources Department, and especially Chuck Queen, Risk Manager, for the unflagging support, compassion and care and maintenance of our employees, physically and mentally, throughout these past two years. The significant accomplishments demonstrated throughout the organization have been helped through a constant and consistent message – our employees are our most important asset. While FY 2023 is envisioned as a stabilizing year, there is no question that significant productive work will continue for our town. FY 2023 BUDGET HIGHLIGHTS The FY 2023 proposed annual operating budget maintains the stability of existing core programs and services, including significant programmatic additions from FY 2022, including Smart Shuttle, Smart Cities and Sustainability planning. Future project capital reserve allocations comprise a major component of expenditures, as does new debt service payments from the issuance of $16,500,000 of the $37 million in voter approved bonds in FY 2022. Personnel expenditure increases relate primarily to maintaining a commitment to competitive salaries for existing staff positions and other related benefit costs for health care insurance and local government retirement system contributions. There are two (2) new position requests, one of which has previously been approved by Town Council during FY 2022. The Fiscal Year 2023 property tax rate is recommended to increase 3-cents to $0.39 per $100 of property valuation. The 3-cent increase supports debt service requirements for the $37 million in bond issuance authority approved by voters in November 2021 and other future anticipated debt. There is no additional operating budget capacity supported by this tax rate increase and no additional tax rate increase for FY 2023 is recommended. 1) The tax rate was last adjusted for FY 2021 following the revaluation of property in 2020. The next property valuation is scheduled to occur in 2024 and will affect the FY 2025 budget deliberations. 2) The General Fund Ad Valorem revenue for Fiscal Year 2023 is estimated at $25,435,000 and represents 56% of the total budget. This estimate is based on a 99.8 % collection rate Revenues collectively reflect the increased assessed property value from the natural growth in the tax base (3%) and from stable revenues in other categories. Real revenue growth (from sources other than transfers, carryover items and revenue related to new tax increment dedicated to bond projects) approximates 4%, the same as the 4% projected last year. Sales tax revenues continue to remain strong through the pandemic and neutralize some of the impacts of lost revenue from reduced parks and GENERAL FUND OVERVIEW Ad Valorem Taxes (Property Tax/Motor Vehicle Tax)

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