TITLE: Title
Adoption of FY 2017-18 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 2017-18.
body
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 ordinance 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 January 24, 2017 the Board of Aldermen held a public hearing to receive community input prior to development of the budget for FY 2017-18. On May 2, 2017 the Town Manager presented to the Board a recommended budget for FY 2017-18 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 23, 2017 the Board held a public hearing on the Town Manager’s recommended budget: General Fund Budget $22,869,686; Capital Fund Budget $10,882,447; and Special Revenue Fund Budget $2,287,784. The General Fund Budget, which is the Town’s operating fund, is 3.8% more than the FY 2016-17 adopted budget of $22,032,357.
Along with the Budget Ordinance, the Board needs to adopt a number of other resolutions. These include: Position Classification and Pay Plan, across-the-board salary adjustment, reimbursement resolution for capital equipment and vehicle financing, resolution for Town Attorney contract, Miscellaneous Fees and Charges Schedule, affordable housing special revenue fund, and use of assigned fund balance for designated capital projects.
Annual Budget Ordinance - Attachment A
The attached Annual Budget Ordinance totals $22,869,686 and appropriates general funds for the operation of the Town by function for the fiscal year beginning July 1, 2017. 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 2017-18 includes changes to be incorporated into the Position Classification and Pay Plan. These changes are:
a. Eliminate the Engineering Tech position, Salary Grade 10, and merge as appropriate the duties and responsibilities of this position with the Capital Improvements Project Manager position, Salary Grade 16;
b. Reclassify Program Support Assistant II, Salary Grade 4, in Human Resources to Administrative Assistant, Salary Grade 8;
c. Reclassify Streets Supervisor position, Salary Grade 14, to Public Works Superintendent, Salary Grade 18
d. Create new position of Storm Water Utility Manager, Salary Grade 18, in the Storm Water Utility Enterprise Fund;
e. Create a new Planner position in Planning Department, Salary Grade 15;
There will be no merit or performance pay provided to Town employees in FY 2017-18.
Across-the-Board and Housing Wage Salary Adjustment - Attachment C
A 3.0% across-the-board salary increase effective July 1, 2017 is included for all current permanent full-time, permanent part-time, appointed employees and elected officials. Also included in this resolution is provision to pay all part-time employees an hourly wage that is equal to the Orange County Living Wage, which is currently $12.75 per hour.
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 Miscellaneous Fees and Charges Schedule beginning July 1, 2017. There are no major changes in this schedule.
Affordable Housing Special Revenue Fund - Attachment G
This resolution authorizes the transfer of certain programs from the General Fund to the Affordable Housing Special Revenue Fund.
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 $1,272,454 for construction of Martin Luther King Jr. Park After confirmation of the fund balance at June 30, 2016 by the Town’s independent auditors, the Town Manager assigned $2.0 million for transfer to the Capital Projects Fund for future capital needs.
203 S. Greensboro Street Capital Project Ordinance - Attachment I
This is a capital project ordinance for the Town and Orange County to jointly develop a facility at 203 S. Greensboro Street for Orange County Southern Branch Library and administrative space for the Town. The County’s contribution for the project is expected to be $6.0 million and the Town anticipates debt financing $9.0 million.
Reimbursement Resolution for 203 S. Greensboro Street Capital Project - Attachment J
This resolution enables the Town to get reimbursed from financing proceeds for any funds that may be expended for the 203 S. Greensboro Street Capital Project before the financing is in place.
Initial Funding for Storm Water Utility Enterprise Fund - Attachment K
This resolution is to provide initial funding for the Storm Water Utility Enterprise Fund.
FISCAL & STAFF IMPACT: The total 2017-18 General Fund Budget presented for adoption is $22,869,686.
RECOMMENDATION:r The Board is requested to take the following actions:
1. Adopt Annual Budget Ordinance for FY 2017-18,
2. Adopt Resolution Adopting Changes to Position Classification and Pay Plan,
3. Adopt Resolution Approving 3.0% across the board salary increase for all Town permanent full-time, permanent part-time, appointed employees and elected officials; and pay all part=time employees the Orange County Living Wage, which is currently $12,75 per hour.
4. Adopt Reimbursement Resolution for capital equipment 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 to appropriate construction funds for Martin Luther King Jr. Park.
9. Adopt Capital Project Ordinance for 203 S. Greensboro Street for the Town and Orange County to jointly develop a facility for Orange County Southern Branch Library and administrative space for the Town.
10. Adopt Reimbursement Resolution for Town to get reimbursed from financing proceeds for any funds that may be expended for the 203 S. Greensboro Street Capital Project before the financing is in place.
11. Adopt resolution to provide initial funding for the Storm Water Utility Enterprise Fund.