FY23 FULL BUDGET REPORT ADOPTED

recreation program and facility resources, but restraining opportunities to optimize on that growth effectively towards new programs and services

The Town continues to realize stable real property growth to balance some budget requests within that natural revenue growth without associated tax increases. Anticipated commercial property development in the McCrimmon Parkway Extension area is underway at a rapid pace, with several significant projects in development review and near-term construction commencement expected to continue to add to real property growth for the next several years. Dramatic increases in property values experienced in the residential sector over the past 12 months may also influence real property value growth and resultant revenue neutral tax rate discussions if sustained. A longer-range analysis of existing and projected property value growth in the future, and how that will change as the Town transitions to redevelopment will better inform future tax rate discussions and long-term budget capacity. The Town of Morrisville’s property tax rate remains one of the lowest tax rates and costs for service in Wake County. Morrisville remains one of two municipalities in Wake County that provides solid waste services within the tax rate (the other being Garner), demonstrating continued and ongoing value to our taxpayers. Each cent of the tax rate generates approximately $650,000 of revenue for the town; other municipalities and Wake County are able to generate much more revenue per tax increment due to the significantly larger assessed property value in those jurisdictions. The Town continues to manage and introduce growth through natural property tax resources, demonstrating fiscal stability and responsibility to our taxpayers. Approximately half of the taxes paid in Morrisville come from commercial properties and businesses, resulting in a balanced tax burden on property owners in Morrisville. Per capita costs for Morrisville programs and services are only $1,056 per resident.

Future consideration of a solid waste user fee is recommended for reconsideration during FY 2023 to allow for the repurpose of tax dollars to needed and desired personnel, programs and services.

The motor vehicle tax fee of $30 per vehicle approved in FY 2019 is the maximum levy authorized and remains at that level for FY 2023, with $20 of that tax used toward public street maintenance and improvement as required by state statute. Of the remaining $10, $5 may be used for any lawful purpose and $5 supports public transportation system costs.

Sales and Use Tax

Sales tax revenues remain robust in spite of COVID-19 impacts. Sales tax revenues are forecast at $8,700,000, a 6% increase over FY 2022 estimated actuals. Conservative growth assumptions remain a prudent budget forecasting strategy to counterbalance other downward revenue influences. Sales tax revenues are 19% of the General Fund revenues and the second largest revenue source for the Town. Between FY 2021 and FY2022 distribution comparisons experienced influential growth of upwards of 20% from realization of Census impacts and economic market conditions.

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