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Council Work Session on the FY 2019-20 Budget Development.
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Staff:
Department:
Maurice Jones, Town Manager
Town Manager's Office
Amy Oland, Director
Business Management
Overview: The purpose of this council work session is to provide the opportunity for Council to receive information on the status of the FY 2019-20 budget development, to discuss the establishment of a framework for future budgets and to receive and discuss draft financial policies.
Key Issues:
Budget Foundation
* The Town's budget is an extension of the Town's mission and the Council's strategic goals.
* The foundation of the budget is to support Council's strategic priorities, support our most valuable resources, protect fund balance to promote resiliency and to make smart investments in maintenance.
General Fund Revenues
* The total General Fund revenues for FY 2019-20 as of March 4, 2019 is $67,804,476.
Property Taxes
* Property tax is a local government's main source of revenue. Property taxes made up 48% of the Town's total revenue sources for FY 2018-19. We have looked at 18 other municipalities (11 other NC AAA rated municipalities and 7 neighboring municipalities for comparison purposes). When looking at this chart, the Town is on the low side as a total percentage of revenues. What this means is that the Town relies less on property taxes and more on other sources of revenues.
* Two factors affect the tax growth that the Town experiences. The first is the total assessed valuation growth. When looking at our comparison entities, the Town has experienced average assessed valuation growth. The second is the property tax rate growth. The Town decreased the tax rate in FY 2010 after the revaluation from 58.1 cents to 49.4 cents and we are currently at 52.8 cents. When looking at our comparison entities, the Town is lagging behind in property tax rate increases.
* When the assessed valuation growth is combined with the tax rate growth, we get the growth in the p...
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