FY23 FULL BUDGET REPORT ADOPTED

2024 depending on available reserve and impact of cost escalation. Other road paving funds are not available to accelerate this project. The MSD tax increment is anticipated to generate approximately $120,000 at an estimated 99% collection rate in FY 2023. The General Fund has provided for an annual transfer to the MSD Fund of $110,000 to accelerate funding for these projects and will be repaid by the MSD tax increment over time, even after all projects are complete. The repayment timeline is approximately 25 or more years and is dependent upon both the revenues collected from the tax increment and the cost of the MSD projects themselves. Individual neighborhoods are not relieved of their responsibility for payment of theMSD tax increment until all street improvements within the district are complete and funds advanced by the General Fund are repaid. The FY 2022 adopted budget included a $200,000 allocation of ARPA funds to support small business programming. The Fiscal Recovery Officer, also hired through use of ARPA funds will spearhead this program, but has necessarily focused primarily on ARPA rules, eligible uses, compliance and reporting during the year. A small business intern worked early in the fiscal year to explore ways to identify small businesses in the community, assess needs, and engage them in town activities (albeit still limited due to COVID-19), develop some small business resources and tools, and collaborate with the Morrisville Chamber of Commerce (MCOC) on small business outreach. The Town also applied for a $300,000 community support project grant this year for small business programming through Congresswoman Deborah Ross’ of fice and was recently notified of an award of that grant. Staff has repurposed the original $200,000 from ARPA toward other projects and will appropriate the $300,000 toward the small business program once the guidelines for uses of those monies and the funds are received. Staff will continue evaluating and developing strategies to further advance small business programming through use of part-time and/or full-time staff and is currently obtaining guidance about legally authorized uses for potential direct support to small businesses. Consideration of a future full-time position could also include evaluation and update of the strategic partnership with the MCOC that also has a commitment to small business support and has managed economic development activities for the Town through a contractual agreement since 2013. Integration of these efforts may identify collaborative program and outreach opportunities that benefit both organizations and the community. An update to the MCOC contractual agreement and t he Town’s incentives policy is also recommended for review during FY 2023. The proposed FY 2023 operating budget includes a cost-share allowance of $16,000 for a grant assistance program through the Triangle J Council of Governments. This program provides funding and grant tracking services, project development and consultation, agency advocacy and engagement, and grant writing and coordination services that will enhance and complement the work currently done internally by the Management Budget Analyst. Incorporation of expanded components of grant oversight and management may also be a consideration as a part of this position review. Position requests for FY 2023 have been limited to two essential positions. Strategic uses of part-time resources (as they are available through lapse salary) may be utilized to accomplish essential and necessary work and to fully evaluate and assess the need for full-time positions, particularly in the areas of administration and sustainability. Reclassification of positions are reviewed as necessary during the year to ensure position duties and responsibilities (and associated compensation levels) match assigned work assignments and job knowledge, skill and education requirements. Small Business Program/Economic Development/Grant Support Long Range Staffing Projections

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