AGENDA #1
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Additional Information for Revised Recommended Budget
DATE:
The purpose of this memorandum is to present a revised recommended budget for the Council’s consideration.
BACKGROUND
The Manager’s Recommended Budget was presented to
the Council on
The Council requested that the Manager return with a revised recommended budget that could be funded with a significantly lower combined tax rate increase. Attachment 1 and Attachment 2 present the revised recommended budgets for the General Fund and the Transportation Fund respectively, in a summary form.
DISCUSSION
Following is a brief summary of the changes from the original recommended budget to the revised recommended budget. In addition, we include information for several items that have been discussed subsequent to the presentation of the original recommended budget.
General Fund
The revised recommended General Fund Budget would require a tax rate increase of 1.04 cents. Recommended revisions are listed below.
Personnel
Revisions to the personnel costs include:
- Moving the start date for competitive employee pay
adjustments by one month from
- Moving the start date for a web programmer analyst position
to
- Correction of an error to eliminate savings from organization changes in the Fire department, mistakenly shown as $4,600 earlier.
- Elimination of an information systems technician position, a senior planner position for current development, and three high school interns for the summer.
A Traffic Signal Technician position is retained, because the position would be fully funded by reimbursements from the North Carolina Department of Transportation.
The cost to increase health insurance for Council members to full-time coverage has been added as an increase of $40,926.
Operating Costs
Revisions to proposed operating costs include:
- Reduction of $2,500 in the estimated cost for an update of aerial photography topographical Geographical Information System ($42,500).
- Stormwater fees that the Town would need to pay ($40,000).
- Decrease in vehicle replacement charges ($151,000).
- Increase in projected charges from
- Increase in transportation planning grant match requirements ($34,000).
- Replacement cost for police mobile data units ($60,000).
We had originally planned to purchase police mobile data units under a three-year financing plan. When the project was reviewed, we determined that some of the costs associated with the purchase were items which cannot be financed. We will need $60,000 in the 2004-05 budget to complete the work.
- Increase in the projected cost of fuel ($21,000). (See the section below, Additional Items – Subsequent to Recommended Budget Presentation, for a discussion of the additional costs of fuel.)
- Elimination of aggregate increase in departmental operating costs and increased cost of road resurfacing materials.
Debt Service
- Addition of $55,000 in cell tower rental fees to help pay general obligation debt service (previously included in base).
Transfer to Capital Improvements
- Transfer of cell tower rental fees from Capital Improvements Program to debt service.
- Reduction in the Capital Improvements Program by $320,000. See the chart below for changes in the Capital Improvements Program.
Special Programs and Service
Contracts
- Reduction of $5,000 in amount for support of Public Art Program to equal 2003-04 budget ($70,000).
Revenues
- Increase in Stormwater Management Utility first year impact ($25,000).
- Increase in Federal Emergency Management Administration tipping fee reimbursement estimate ($5,000).
- Addition of donation from Carol Woods ($125,000).
- Upward revision of sales tax estimate ($42,000).
Transportation Fund
The revised recommended Transportation Fund budget would require a tax increase of .76 cents. Recommended revisions are listed below.
Personnel
- Moving the start date for competitive employee pay
adjustment by one month from
Operating Costs
- Increase in the Town’s portion of the projected cost of gasoline ($3,652). (See a discussion of the additional costs of fuel below.)
Additional Items – Subsequent to Recommended Budget Presentation
The revised recommended budget does not include a number of items that the Council could consider for addition to the budget:
- Increase Special Olympics Coordinator from part-time to full-time ($18,000).
- Winterization of additional bathrooms in Town parks.
Winterization of bathrooms will be considered in future capital improvements plans.
- Increased
funding for the
- Additional cost to purchase biodiesel fuel ($48,500).
Recent changes in fuel prices require a minimum addition of $21,000 that has been included in the revised recommended budget. Scheduling the purchase of biodiesel throughout 2004-05 would require an additional $48,500. A separate working paper presents the details of alternative fuel costs.
- A separate working paper presents issues related to the possible elimination of commercial refuse collection services. We recommend no change in service.
- A separate working paper presents issues related to the possible change in the schedule for computer replacement. We recommend no change.
SUMMARY
The revised recommended budget would require a tax rate increase of 1.04 cents in the General Fund (from 50.2 cents to 51.24 cents) and would require a tax rate increase of .76 cents in the Transportation fund (from 5.1 cents to 5.86 cents.) The combined tax rate increase would be 1.8 cents; the combined total tax rate would be 57.1 cents per $100 of assessed property.
CONCLUSION
We will be pleased to provide additional information as the Council may desire.
ATTACHMENTS
- General Fund Base Budget and Potential Additions (p. 5).
- Transportation Fund Base Budget and Potential Additions (p. 7).