TITLE: Title
Adoption of FY 2015-16 Annual Budget
PURPOSE: The purpose of this agenda item is for the Board of Aldermen to complete budget discussions and adopt the annual budget for fiscal year 2015-16.
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DEPARTMENT: Town Manager
CONTACT INFORMATION: David Andrews, 918-7315; Arche McAdoo, 918-7439
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 Board of Aldermen no later than June 1st; that the Board hold a public hearing on the budget; and that the Board adopt an annual budget each year by July 1st. 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 February 10, 2015 the Board of Aldermen held a public hearing to receive community input prior to development of the budget for FY 2015-16. On May 5, 2015 the Town Manager presented to the Board a recommended budget for FY 2015-16 and filed it with the Town Clerk. The recommended budget has remained available on the Town's website, and in the Town Clerk's Office for public inspection; notice of its availability was published in the local media.
On May 26, 2015 the Board held a public hearing on the Town Manager's recommended budget: General Fund Budget $21,572,647; Capital Fund Budget $7,065,382; and Special Revenue Fund Budget $775,506. The General Fund Budget, which is the Town's operating fund, is 1.2% more than the FY 2014-15 adopted budget of $21,313,803.
Due to the elimination of the privilege licenses tax by the North Carolina General Assembly as of July 1 2015, the Town will no longer be able to charge a fee to businesses that conduct business in the Town. As members of the North Carolina General Assembly continue to discuss redistribution of local sales tax, should legislation be enacted that result in a loss of this revenue, the Town may need to seek other revenues sources.
Along with the Budget Ordinance, the Board needs to adopt a number of other resolutions. These include: Position Classification and Pay Plan, cost of living and housing wage salary adjustment, reimbursement resolution related to financing capital equipment and vehicles, resolution for Town Attorney contract, Miscellaneous Fees and Charges Schedule, affordable housing special revenue fund, use of assigned fund balance for designated capital projects, capital project ordinance for design of Town Commons, and amendment to Morgan Creek capital project ordinance.
Annual Budget Ordinance - Attachment A
The attached Annual Budget Ordinance totals $21,572,647 and appropriates general funds for the operation of the Town by function for the fiscal year beginning July 1, 2015. The Annual Budget Ordinance also includes the estimated revenues from major sources that are expected to be available during the fiscal year and establishes the property tax rate at the current rate of 58.94 cents on each $100 valuation of taxable property.
Position Classification and Pay Plan - Attachment B
The Annual Budget for FY 2015-16 includes changes that need to be incorporated into the Position Classification and Pay Plan. These changes are:
a. Eliminate one FTE Planner/Zoning Development Specialist position, Salary Grade 12, in Planning Department;
b. Create position of GIS Technician in Planning as a permanent part-time position at .5 FTE at Salary Grade 10;
c. Change position of Program Support Assistant II, Salary Grade 4, in Finance Department, from .5 FTE to 1.0 FTE;
d. Reclassify position of Staff Accountant, Salary Grade 15, to Accounting Manager, Salary Grade 15, in Finance Department;
e. Change position of Program Support Assistant II in Recreation and Parks, Salary Grade 4, from .5 FTE to 1.0 FTE.
Merit Pay will not be provided to Town employees in FY 2015-16.
Cost of Living and Housing Wage Salary Adjustment - Attachment C
A 2.0% cost-of-living salary increase effective July 1, 2015 is included for all current permanent full-time, permanent part-time, appointed employees and elected officials. Also included in this resolution is adjustment for four positions to bring their salary equal to the minimum housing wage of $31,158.
Reimbursement Resolution - Attachment D
This resolution enables the Town to get reimbursed from financing proceeds for any general funds that may be expended for vehicle and equipment purchases before the financing is in place.
Town Attorney - Attachment E
This is to contract for legal services.
Fee Schedule - Attachment F
The resolution establishes various fees beginning July 1, 2015. The only change in the fee schedule is the addition of a new fee for Residential HVAC Change-Out at $100. This new fee will allow the Town to uniformly charge for permitting and inspections regardless of whether contractors hold a license in a single or multiple applicable trades.
Affordable Housing Special Revenue Fund - Attachment G
This resolution authorizes the transfer of certain programs from the General Fund and appropriates $200,000 of fund balance for affordable housing.
Use of Fund Balance for Designated Capital Projects - Attachment H
This is a capital project ordinance to appropriate the use of fund balance in the amount of $1,235,880 for designated capital projects. After confirmation of the fund balance at June 30, 2014 by the Town's independent auditors, the Town Manager assigned $2.0 million for transfer to the Capital Projects Fund for future capital needs.
Town Commons Capital Improvement Project - Attachment I
This Capital Project Ordinance authorizes $107,300 for design work for improvements to the Town Commons. The Farmer's Market has committed to pay $20,000 of this cost and has given the Town $14,500.
Morgan Creek Greenway Project - Attachment J
The Town has received additional federal funding in the amount of $730,000 through the NCDOT for construction of the Morgan Creek Greenway. This additional funding will require a local match of $182,500. This amendment to the existing project ordinance recognizes and appropriates this additional funding. A supplemental agreement to the existing Municipal Agreement with NCDOT will be coming to the Board soon.
The Town has been notified of available federal funding for South Greensboro Sidewalk design and Jones Creek Greenway, which will require local funding match. Once funding agreements and the required local match are finalized, the appropriate capital project ordinances will be presented to the Board for action.
FISCAL & STAFF IMPACT: The total 2015-16 General Fund Budget presented for adoption is $21,572,647.
RECOMMENDATION:r The Board is requested to take the following actions:
1. Adopt Annual Budget Ordinance for FY 2015-16,
2. Adopt Resolution Adopting Changes to Position Classification and Pay Plan,
3. Adopt Resolution Approving 2.0% across the board salary increase and housing wage salary adjustment
4. Adopt Reimbursement Resolution for capital purchases,
5. Adopt Resolution for Town Attorney Contract, and.
6. Adopt Resolution Approving Miscellaneous Fees and Charges Schedule.
7. Adopt Resolution Authorizing Transfer from General Fund Budget and use of Fund Balance for Affordable Housing Special Revenue Fund
8. Adopt Capital Project Ordinance for Use of Fund Balance for Designated Capital Projects
9. Adopt Capital Project Ordinance for Design of Town Commons Improvements
10. Adopt Amendment to Morgan Creek Greenway Capital Project Ordinance