FY23 FULL BUDGET REPORT ADOPTED

expansion will ultimately outpace resource growth and require a recalibration of tax rate and of user-fee based services. Strategic discussions during FY 2023 should be dedicated to substantive discussions about the future expectations of service and capacitymodels that can be used to develop informed future budget scenarios that match those resources with budget needs. We have made great strides in adding resources, particularly staff, to manage increased workload. There will be more needed in the future. Forecasting will be key to consideration of major recurring expenditure adjustments long-term. This budget message is realistic, not pessimistic. We should be proud of what we are able to accomplish within our resource levels. However, as mentioned in last year’s message, we must not ignore the challenges we face in the coming years. To support expanded workload to meet service expectations by the community, desired program development, and new initiatives, our recurring human capital and operating needs will continue to increase. Planning and tough decision making are necessary to provide and guide strategic choice, balanced with resource availability, including future tax-rate scenarios for taxpayers. FY 2023 is an opportunity to stabilize, integrate, and assimilate the many enhanced offerings and additions to our core focus areas, and to concentrate on finishing strategic projects already underway. Similar to FY 2022, Parks and Recreation facilities and programs have continued to be impacted by the pandemic well into the fiscal year. Resulting influences of the pandemic are also observed in inflation, cost of goods and services, availability of and access to workers, vendor timelines, and supply chain delays. All of these factors have further constricted our ability to do our work. The Town of Morrisville is flexible, nimble, and resilient in response to these influences. We remain fiscally and operationally strong. The FY 2023 proposed annual operating budget has been developed with consideration given to the factors discussed above and without a proposed tax increase beyond the anticipated 3-cent tax increment to support the voter approved debt for various capital projects underway. Town Council has affirmed its desire to limit as much as possible additional financial burdens to those in our community that may continue to experience extended results of the pandemic, including no tax increase (other than for the voter approved bonds tax increment of 3-cents) and no consideration of a solid waste user fee. The proposed budget utilizes the remainder of the first tranche of ARPA funds distributed to the Town in July 2021 for signature projects, leaving the entire second tranche for consideration by Town Council for community priorities to be evaluated during the fiscal year. The proposed Town of Morrisville annual operating budgets for the General and Stormwater Funds follow the budget introduction and message. Debt Service, Healthcare, Special Revenue, Capital Reserve and Capital Project Funds also are presented for review. The proposed budget has been prepared in accordance with the North Carolina Local Government Budget and Fiscal Control Act. The budget message outlines the key focus areas and provides important information that frames the budget requests:

o Budget Priorities Overview with Strategic Plan Alignment o Budget Ordinance/Resolutions o General Fund Detail (abbreviated) o Capital Investment Program [CIP] (summary only)

o Position and Pay Grade Classification Schedule o User Fee Schedule and Fee Changes

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