TITLE: Presentation of Town Manager’s Recommended Budget for Fiscal Year 2018-19
PURPOSE: The purpose of this agenda item is to receive the Town Manager’s Recommended Budget for FY 2018-19, set the time for a public hearing and budget work sessions.
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DEPARTMENT: Town Manager
CONTACT INFORMATION: David L. Andrews, 918-7315 and Arche L. McAdoo, 918-7439
INFORMATION: By state law, the Town Manager is required to submit a recommended budget for FY 2018-19 and budget message to the Mayor and Board of Aldermen by June 1st. This recommended budget is to be made available for public inspection and the Board is required to hold a public hearing on it prior to adoption.
Major goals for the FY 2018-19 budget were to: 1) implement the Board’s strategic priorities, 2) control cost while improving services, 3) develop a balance budget, and 4) conceptualize a long term financial sustainability plan.
The total budget recommended by the Town Manager is $49.2 million comprised of General Fund at $22.8 million, Special Revenue Fund at $2.1 million, Capital Fund at $23.4 million, and Storm Water Utility Enterprise Fund at $900,000. The Storm Water Utility Enterprise Fund was established July 1, 2017 for the purpose of comprehensively addressing the storm water management needs of the Town. This Enterprise Fund was seen as a way to establish a dedicated source of funding for storm water management and flooding remediation.
With increasing costs for health insurance, retirement system contributions, transit operations, and other items combined with slow revenue growth, difficult decisions had to be made to balance the budget.
A major goal of the Board of Aldermen is increasing affordable housing. A Special Revenue Fund has been established for affordable housing programs. Unfortunately, the current source of funding for affordable housing is expected to dry up within the next year or two. The Manager has proposed a property tax increase of ½ cents for each of the next three years and dedicate this increase for affordable housing. A penny on the tax rate yields roughly $225,000.
The recommended budget document is provided to the Board on the night of the presentation. Following the Town Manager’s budget presentation, the date and time to hold a public hearing needs to be set. Attached is a resolution to set a public hearing for the budget on May 23, 2017 and a notice of public hearing to be published by the Town Clerk.
If the Board desires to hold one or more work sessions on the Town Manager’s recommended budget, the following dates have been reserved: May 15 and May 22, 2018. Budget work sessions allow for an opportunity to develop a more thorough understanding of the budget recommendation. Department heads will be available at work sessions to answer questions.
FISCAL & STAFF IMPACT: N/A
RECOMMENDATION: That the Board accept the Town Manager’s Recommended Budget for FY 2018-19 and adopt a resolution setting a public hearing on it for May 22, 2017 at 7:30 PM.