Budget

/Budget
Budget2019-06-06T20:31:49+00:00

BUDGET ORDINANCE
FISCAL YEAR 2019-2020

Overview of FY 2019-2020 Budget

On March 13th and April 24, 2019 the Mayor and Board of Commissioners met to discuss goals, priorities and initiatives for the FY 2019-2020 Budget.  From these workshops it was clear that prioritizing capital needs for each department, stabilizing fund balance and maintaining a competitive tax rate were high priority issues.  In addition the following budgetary issues were highlighted:

  • Investment in a vehicle lease program for the Police Department.
  • Upgrading field maintenance equipment for Parks and Grounds
  • Investment in SCBA air-paks and turnout gear for the Fire Department
  • New Benches and planters for downtown beautification efforts
  • Replacement of a bucket truck for Public Works
  • Paving of Church Street
  • Dutchman’s Creek WWTP Rehabilitation
  • Water distribution system improvements

The FY 2019-20 Budget, as presented, makes every effort to accomplish these goals while efficiently providing the basic services that the taxpayers of Mocksville expect and deserve.

Mocksville’s Total Budget for FY 2019-20 is $9,075,360, a decrease of 4.76% from last year.  Operating cost and capital improvements all show decreases from the previous years’ budget, while the increase in the debt service reflects the purchase of fire truck in FY 2018-2019. 

Legislative Issues
The General Assembly meets over a two year period, called a “biennium.” Its regular session, also called the “long session,” begins in January of each odd-numbered year and lasts roughly six months. After the legislature adjourns for the summer, it reconvenes again the following even-numbered year, usually in the spring, for what’s called the “short session.” The short session usually lasts a few months.  The short session allows legislators to review and adjust the state’s two-year budget that was adopted the previous year. During the short session legislators may only consider bills that affect the budget or passed the original house of origin in the previous year.  Currently, we are monitoring the following bills that directly impact Mocksville or municipalities in general:

The House Alcohol Beverage Control Committee this week advanced HB 91 ABC Laws Modernization, making changes to the state’s system of liquor distribution and sales, following input from League staff and amendments from committee members. League staff addressed the committee with opposition to a provision for mandatory consolidation of local ABC boards — a provision the committee ended up removing by amendment following the League’s testimony. The bill still contained provisions that allow the purchase of individual bottles for special orders, local boards to charge delivery fees when delivering liquor, local governments to permit Sunday alcohol sales, and liquor tasting in local ABC stores. The bill’s next stop is the House Finance Committee.

Grant Opportunities
As always, we continue to look for grants during the year to supplement our programs and services for every department.

Fund Balance
Based on our most recent audit for the period ending June 30, 2018, available fund balance was $4,733,000 or 80% of General Fund expenditures.

Based on the fund balance appropriated for Fiscal Year 2018-2019 The total fund balance for the Town of Mocksville General Fund is estimated to be $3,173,312 or 47% of projected General Fund expenditures at 06/30/19.  This estimate represents a decrease in the total fund balance of $1,559,688 from FY 2018 audited figures. The proposed budget sets appropriated fund balance at $500,000 with a goal of further reducing appropriated fund balance in future years.

The Town Board has set our fund balance goal at 70%-75% of General Fund expenditures.

 

 

Debt
The Town is currently budgeted to expend $ 225,160 on debt service in FY19-20.  This amount includes the debt incurred in 2018 for the purchase of the fire truck and a REDLG Loan through the USDA to extend utilities to Gildan in 2015.  At 6/30/19, total Town debt stands at $1,325,800.  The fire truck is the first issuance of debt for the Town since 2015 and it is scheduled to expire in 2023. The REDLG loan is scheduled to expire in 2026. 

Personnel
The Town has not included any new full time positions for FY 2019-20 budget year.

Employees are eligible for up to a 2% Cost of Living Adjustment in the current budget. In addition, developmental adjustments have been budgeted to increase wages for those employees that are not currently at grade level according the Mocksville Pay and Classification Schedule.

For FY 2019-20 Mocksville will have 44 full-time positions budgeted.

Overview of FY 2019-2020 General Fund
The General Fund is the Town’s general operating fund and includes all operations except for those incorporated in the Water and Sewer Enterprise Fund which are statutorily required to be established as Proprietary Funds.  The General Fund is the Town’s largest fund and expenditures are projected to be $5,864,960 for FY 2019-20, a decrease of 5.72% from the original FY 2018-19 Budget.

General Fund Revenue
Ad Valorem (real property) taxes account for the largest source of revenue for the General Fund and make up 43% of all General Fund revenues.

Ad Valorem tax rate is proposed at 29 cents ($0.29/$100) and projected to generate $2,500,000 for FY 2019-20.

The General Motor Vehicle Tax of $30 is projected to generate $84,000 for FY 2019-2020

Sales tax and other taxes are projected to be $1,254,000, an increase of 6.72% over last year’s budget.

General Fund Capital Projects
In 2019, the Board of Commissioners approved the establishment of Capital Reserve Funds for the General Fund.  Capital Reserve Funds serve as a long-range financial planning tool to finance future capital projects. With the proposed budget for FY 2019-20 no funding has been added to the General Fund Capital Reserve.

These funds can, of course, be used for other types of capital projects at the discretion of the Board but they cannot be used for personnel or operational expenses in future budgets.

No Capital Project Funds, which differ slightly from Capital Reserve Funds, have been set up FY 19-20. Capital project funds are set up when we anticipate expending funds for one project over multiple fiscal years.

In addition to the Capital Reserve and Capital Project Funds, the Town has many capital improvements budgeted for FY 2019-20 which include the following:

Overview of FY 2019-2020 Water and Sewer Enterprise Fund
The Water and Sewer Fund is established as an enterprise-type activity for the Town.  It is a self-sustaining enterprise with its own revenue stream.  The Town operates its own 2.0 MGD water plant

The FY 2019-20 Budget for the Water and Sewer Fund is proposed to be $3,210,400 and includes a 2% rate increase.  For a resident of the Town using 3,000 gallons of water bi-monthly, this would equate to a monthly increase of 62 cents. Overall, the Enterprise Fund budget has decreased by 2.95%.from the previous year, with all of the increase being related to the operations for Water and Sewer.

Water and Sewer Fund Capital Projects
As with the General Fund, the Board of Commissioners approved the establishment of Capital Reserve Funds for the Water and Sewer Enterprise Fund.  Capital Reserve Funds serve as a long-range financial planning tool to finance future capital projects. With the proposed budget for FY 2019-20 no funding has been added to the Water and Sewer Enterprise Fund Capital Reserve:

These funds can, of course, be used for other types of capital projects at the discretion of the Board but they cannot be used for personnel or operational expenses in future budgets.

We have some capital improvements budgeted for FY 2019-20 which include the following:

Conclusion
While pressure at both State and Federal levels continues to pose a threat to local authority, Mocksville’s FY 2019-20 Budget clearly reflects the Board’s priorities for the upcoming year. The tax payers of Mocksville can be proud of our emphasis on fiscal responsibility with a regionally competitive tax rate, a low level of debt service and the strengthening of our Fund Balance. In addition, we continue to pursue grant opportunities, streamline our service levels and make wise capital investments.  It is this commitment to excellence that makes the Town of Mocksville one of the greatest places to live, work and raise a family.

I sincerely appreciate the guidance and support provided by the Mayor and Board of Commissioners during this process.  I would also like to thank all Department Heads and staff for their work in developing this budget.  The citizens of Mocksville are truly fortunate to have such a dedicated and hardworking team of public servants.

Copies of this document will be posted on the Town’s website and available for public review in the Town Clerk’s office.

Respectfully submitted,

Matt Settlemyer
Town Manager

 

Budget Downloads
~ 2019-2020 Manager’s Signed Budget Message Submitted to TownBoard
~ 2019-2020 Signed Budget Ordinance
Town of Mocksville Five Year Capital Improvement Plan 2019-2024
Town of Mocksville Adopted Budget FY 2019-2020