FY23 FULL BUDGET REPORT ADOPTED

Note: The $300,000 additional allocation of funds towards street paving that has been included in the past several budget requests has been deferred for FY 2023 to repurpose these funds towardmore essential needs. Additional Powell Bill monies received by the Town have contributed to the road paving budget allocation capacity, and the recent Pavement Condition Report (PCR) affirmed a deferral of 1-2 years would not hurt the Town’s PCR ratings and will allow for a further assessment of the use of preventive technologies to extend the life of roads. This is a short- term strategy used for balancing this year’s budget in a fiscally responsible manner. The General Fund includes four capital reserve funds: Roadway and Transportation Fund, Parks and Recreation Fund, CIP, and Fire Apparatus Replacement. Two other funds, the Health Insurance Fund and the Debt Service Fund have been established more so to effectively monitor and report those significant component costs of the annual budget. The proposed FY 2023 budget includes allocations to all four of the capital reserve funds. A transfer of an equivalent of one cent ($0.01) on the tax rate has been transferred to both the Roadway and Transportation Reserve and Parks and Recreation Reserve Funds. A timely project close-out will replenish the CIP Reserve with $200,000 from unused resources available at the conclusion of those projects. The Fire Apparatus Capital Reserve allocation for FY 2023 remains at $750,000, the same as FY 2022. Staff continue to work on developing a comprehensive and achievable plan for future apparatus replacements. Plans to incorporate larger scale and higher cost equipment replacement (such as radios and self-containing breathing apparatus) are underway for future capital reserve allocations and long- range planning and forecasting. Personnel and debt service costs are addressed separately later in this budget message.

An allocation of $110,000 towards the Municipal Service District Fund continues to be included in the proposed budget to build reserves toward completion of the one remaining project in The Gables.

The Debt Service Fund allows for more effective management of financial transactions related to debt service, especially as bond sale proceeds, retired debt and debt service reserves work together to support maximum capacity for projects. Existing debt service levels of $3.5 million annually will be increased through the additional $0.03 for new debt service, amounting to an estimated $1,965,000 in FY 2023. Tax revenues are captured in the General Fund and transferred to the Debt Service Fund for payment of debt service and related costs as staff carries out planned debt projects outlined by the CIP funding model.

Personnel Expenditures

Position requests in FY 2023 have been limited to two positions – an additional Assistant Town Manager position authorized in FY 2022 and a Stormwater Engineer needed to manage increased workload demands due to new state mandated stormwater program requirements and stormwater capital

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