FY23 FULL BUDGET REPORT ADOPTED

Budget Message

May 10, 2022

Mayor Cawley and Members of Town Council:

INTRODUCTION

Presented for your consideration, deliberation and proposed adoption is the proposed FY 2023 operating budget and capital investment program (CIP). The recommended budget has been developed based on the following fundamental principles and priorities: o Commitment to existing core service functions and service delivery levels. o Controlling recurring costs, while recognizing growth in base budgets due to existing personnel and operational activities. o Managing the replacement of existing assets, including buildings, vehicles, and equipment. o Building on innovative programs initiated in prior years, such as Smart Cities and Sustainability efforts. o Investing in future capital needs through capital reserve allocations. o Supporting key projects and studies prioritized by Town Council. o Safeguarding market competitiveness for employee total compensation in support of recruitment and retention of committed, quality staff. As the community began to recover in the second year of the pandemic, lingering influences on revenues and program availability have also impacted our ability to expand and grow services and new opportunities beyond our current levels. The proposed FY 2023 budget represents a stable, yet constrained approach to available budget capacity, continuing to align recurring costs with natural revenue growth. Necessary one-time costs and expenditures are supported through measured use of fund balance, American Rescue Plan Act (ARPA) allocations and use of other available resources. Preparing the FY 2023 proposed operating and capital budgets was simultaneously simple and difficult. Fulfillment of the principles outlined above limited consideration of expenditure requests beyond essential items but does not impede or hinder service delivery. Careful and deliberate choices have been considered to manage the increase in the recurring base budget. One-time requests were prioritized to fulfill strategic plan goals and projects with reasonable use of resources that do not compromise operations, the long-range financial forecast, or the essential financial position of fund balance and capital reserves to meet long-term needs and expectations. The FY 2023 proposed budget maintains a strong foundational structure and a year of stabilization in budget growth that will allow for continued refinement and incorporation of future budget priorities into budget forecasting as strategic initiatives are explored by Town Council. Capital investment program recommendations are informed, purposeful and strategic, with several major projects planned for significant future financial commitment optimizing unique onetime sources to advance those projects. The Town, and the expectations and needs from the community, continue to grow. Externally, the expansion of major traffic corridors, the activation of the Town Center Plan, and delivery on voter approved capital projects will further change the town’s footprint and enhance our tax base growth. Internally, capacity has to-date maintained some equilibrium with existing revenue capacity. The Town of Morr isville delivers “big - city” performance. However, the town has begun to relymore on reserves and other resources, such as ARPA, to initiate programs and services. Continued service and program

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