FY23 FULL BUDGET REPORT ADOPTED

Additional discussion of PPIL and SPIL future year estimates and long-term forecast of balances will be included with the discussion of the Capital Investment Plan.

CAPITAL INVESTMENT PROGRAM (CIP)/CAPITAL OUTLAY

The most crucial component of budget discussions this year is the capital investment program. As the operating budget is stabilized for this year, CIP commitments demonstrate Town Council’s work to deliver on important infrastructure and community amenities for our residents and visitors to the Town. Impactful capital outlay in key focus areas is included in the proposed FY 2023 capital budget recommendations. As the first wave of bond funded projects gets underway, Town Council will undertake a comprehensive CIP update in fall 2023. The major update will include a review and evaluation of the process to develop the CIP, optimization potential of key funding resources tools, incorporate changes and commitments made by Town Council during this fiscal year, and review existing project concepts to consider recommended changes (additions, modifications, deletions). The updatewill reflect and incorporate into the plan the significant progress made on bringing the Town Center vision to fruition, potential athletics program amenities to support a future Wake County Public High School joint use agreement, enhancements to Church Street Park, and integration of a comprehensive intersection improvements plan. The refresh is also an opportunity to consider new and emerging requests from the community, including recent discussion of additional basketball courts, support for the Triangle Bikeway, and betterments for upcoming NCDOT road projects, and to evaluate lower priority projects and those that may not be viable considerations at this time. Update of the CIP comes at a good time as we undertake the bond projects over the next six years and to consider the dramatic impact of labor and supply chain issues on the cost of projects and ability to deliver within anticipated budgets that influence both the amount of funding available and timing of project activation. The CIP is a plan, and remains flexible, but provides an essential roadmap for planning and delivery of projects desired and expected by the community. The FY 2023 CIP includes adjustments to previous budget appropriations to align the plan with Council’s priorities and allows for the overall planning for funding sources and opportunities with existing and anticipated resources and is a vital tool for long-range planning. Project concepts are currently in the process of being updated by an internal CIP review team and will be supplemented by the upcoming citizen survey. Town Council will be asked to review its CIP policy/process in late summer and consider policy updates in the fall. Updated CIP prioritization is planned for winter 2023 as a part of Town Council’s winter retreat, with major updates to the CIP as a part of the FY 2024 budget preparation. Town Council has also recently expressed interest in considering a new category of potential capital investments to retain assets that reflect the town’s history and past. A primary example of a historical asset is the Pugh House Renovations. Although it has been included in the CIP for many years, it has not been prioritized for funding. Town Council has also not reached consensus on a future use for the facility, which weighs heavily into the cost and next steps for this project. The CIP update process will provide a framework for advancing those discussions and outcomes for this and other projects.

29