FY23 FULL BUDGET REPORT ADOPTED

Budget Management: Expenditure budgets are reviewed by the Finance Director, the Budget Manager, the Town Manager and Town Council prior to adoption and are continually monitored throughout the budget year. Budgeted funds will only be spent for categorical purposes for which they were intended. The annual operating budget defines staff authorization for operating budget adjustments and Town Manager special authorities outlined by budget ordinance. No appropriations of the proceeds of a debt instrument will be made except for the purpose for which such debt instrument was issued. Donations will be spent only toward the intent for which they were given. Fiscal Management: Current operating expenditures will not exceed current operating revenues. Fund balance may be used to address unanticipated needs or opportunities or to balance the annual budget regarding revenues and expenditures. Continuing Contracts: For continuing contracts, funds will be appropriated in the annual budget ordinance to meet current year obligations arising under the contract, in accordance with G.S. 160A-17. Payroll: Payroll will be in accordance with the requirements of the Fair Labor Standards Act. Overtime and benefits payments will be in accordance with the Town’s Perso nnel Ordinance. Fund Balance Policy The purpose of the Town’s Fund Balance Policy is to provide guidelines to ensure that the Town maintains adequate fund balances and reserves in order to provide sufficient cash flow for daily operational needs, secure, and maintain bond ratings, offset significant economic downturns or revenue shortfalls, and provide funds for unforeseen expenditures related to emergencies. To ensure financial stability, secure and maintain investment grade bond ratings, set a reasonable level of fund balance, establish under what circumstance the Town can go below the policy level, and procedures on how the Town will restore the fund balance within a desired range. For governmental funds, GASB Statement No. 54 defines five specific classifications of fund balance. These five classifications are intended to identify whether the specific components of fund balance are available for appropriation and are therefore spendable. The classifications are also intended to identify the extent to which fund balance is constrained by special restrictions, if any. Definitions: Non-spendable fund balance includes amounts that are not in a spendable form (prepaids, for example) or are required to be maintained intact (the principal of an endowment fund, for example). Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers (grant providers), constitutionally, or through enabling legislation (legislation that creates a revenue source and restricts its use). Effectively, restrictions may be changed or lifted only with the consent of resource providers.

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