TITLE: Title
Adoption of the FY 2023-24 Annual Budget
PURPOSE: The purpose of this agenda item is for the Town Council to adopt the annual budget for fiscal year 2023-24.
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DEPARTMENT: Town Manager
CONTACT INFORMATION: Richard J. White III, Town Manager, 918-7315; Arche McAdoo, Finance Director, 918-7439 Langston Ramseur, Deputy Finance Director, 918-7345
INFORMATION: The North Carolina Local Government Budget and Fiscal Control Act (LGBFCA) requires that the Town Manager submit a recommended budget and budget message to the Mayor and Council; that the Town Council hold a public hearing on the recommended budget; and that the Town Council adopt an annual budget ordinance each year by July 1. The budget must be balanced which is defined by LGBFCA as “the sum of estimated net revenues and appropriated fund balance in each fund shall be equal to appropriations in that fund”.
On May 9, 2023 the Town Council held a budget work session where the Town Manager presented and received input on the recommended budget for FY 2023-24. On June 6, 2022, the Town Manager presented to the Town Council a recommended budget for FY2023-24 totaling $81.1 million, and the budget document was filed with the Town Clerk. It has remained available on the Town’s website, and in the Town Clerk’s Office for public inspection. The notice of its availability was published in the local media. On June 13, 2023, a public hearing was held on the Manager’s Recommended Budget.
The goals of the FY 2023-24 budget are to:
• Align the Town Council’s adopted 13 strategic priorities;
• Continue addressing employee retention, recruitment and well-being;
• Control costs while maintaining current level of services; and,
• Capital projects, especially renovation of Town Hall.
The Interfaith Council (IFC) and Orange County Partnership to End Homelessness (OCPEH) have requested $95,757 and $69,581, respectively, for services to the homelessness and housing needs. These two requests will be funded using American Rescue Plan Act funds.
Because of supply chain interruptions the past two years, the Town was unable to purchase replacement vehicles. The unexpended appropriation for vehicles in FY 2022 and FY 2023 total $1,613,000. Of this amount, $964,000 will be used for vehicle replacement purchases and $649,000 will be set aside in Capital Reserve Fund for future purchase of fire apparatus.
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The total budget for FY 2023-24 is as follows:
The General Fund is the Town’s operating fund. The FY 2023-24 budgets continues emphasis on race and equity, climate action, affordable housing, downtown beautification, and capital projects.
The Capital Projects Fund includes construction, renovations, or other improvements to the Town’s capital assets. Major projects include wayfinding, vehicle purchases, street resurfacing, greenways and multi-paths, and construction of the 203 S. Greensboro Street facility that will be home to the Orange County Southern Branch Library and Town recreation administrative offices. The budget proposes to use assigned fund balance to begin the planning, design and development of renovations for Town Hall.
The Affordable Housing Fund in the Special Revenue Fund provides a steady and reliable revenue source for affordable housing activities. A property tax rate of 1.5 cents will continue to be dedicated to affordable housing in FY 2024.
Along with the Budget Ordinance, the Town Council needs to adopt several other resolutions. These includes: Position Classification and Pay Plan, across-the-board salary adjustment, resolution for Town Attorney contract, Amendment to Miscellaneous Fees and Charges Schedule, and health insurance providers.
Annual Budget Ordinance - Attachment A
The attached Annual Budget Ordinance includes General Fund appropriation of $27,667,675 by function for operation of the Town beginning July 1, 2023. The Annual Budget Ordinance also includes the estimated revenues that are expected to be available during the fiscal year.
The property tax rate shall remain the same at 60.44 cents for each $100 valuation of taxable property with 1.50 cents of that amount dedicated for the Affordable Housing Special Revenue Fund.
Position Classification and Pay Plan - Attachment B
The Annual Budget for FY24 includes changes to be incorporated into the Position Classification and Pay Plan. No increase in the total FTEs are requested for 2024. These changes are listed in the resolution titled Attachment B.
There will be no merit or performance pay provided to Town employees in FY24.
Salary and Wage Adjustment Resolution - Attachment C
Effective July 2, 2023, a 5% across-the-board salary increase will be added to base salary for all current full-time permanent and appointed employees; a prorated increase of 5% will be added to the base salary for all permanent part-time employees based on the full-time equivalency; and, Town elected officials and temporary part-time employees will receive an increase of 5%.
Town Attorney - Attachment D
This resolution is to contract for legal services.
Vehicle Purchases in FY24 - Attachment E
The resolution authorizes the purchase of vehicles in FY 2024 and the establishment of $649,000 set aside in Capital Reserve Fund for future purchase of fire apparatus.
Reimbursement Resolution for FY23 Vehicle Purchases - Attachment E-1
The resolution authorizes the Town to be reimbursed by financing proceeds for the purpose of purchasing the FY24 vehicles approved in the adopted budget, that may occur prior to any installment financing.
Medical Insurance Plan - Attachment F
The resolution authorizes the Town Manager to enter a contract with the Town’s medical insurance providers.
Designated Fund Balance at June 30, 2023 for Carryover - Attachment G
This resolution authorizes the carryover of budge items that have not been spent or obligated in FY 2022-23
Authorization to Use Assigned Fund Balance for Town Hal Renovations - Attachment H - This resolution will provide a means to beginning planning, design and development of renovations for Town Hall.
Amendment to Miscellaneous Fees and Charges Schedule - Attachment X
The resolution amends the Miscellaneous Fees and Charges Schedule beginning July 1, 2023.
FISCAL & STAFF IMPACT: The total FY2023-24 General Fund Budget presented for adoption is $29,330,449 The grand total budget including all funds is $81,122,843.
RECOMMENDATION:r The Town Council is requested to adopt the following attachments:
A. Annual Budget Ordinance for FY 2023-24
B. Resolution adopting Changes to Position Classification and Pay Plan;
C. Resolution approving the minimum salary and hourly rates for employees;
D. Resolution for the Town Attorney contract;
E. FY23-24 Vehicle Purchases; and Attachment E-1 - Reimbursement Resolution for Vehicles (Attachment F-1);
F. Resolution to authorize contracts for the Town’s Medical Insurance Plan
G. Resolution to authorize designation of fund balance at June 30, 2023 for carryover.
H. Use of assigned fund balance for Town Hall renovation
I. Amendment to ARPA Grant Project Ordinance
J. Resolution approving amendments to the Miscellaneous Fees and Charges Schedule