FINAL ADOPTED BUDGET 2020-2021

TOTAL BUDGET - EXPENDITURES The FY 20-21 net budget (all funds) of $602,444,406 is $21.6 million, or 3.7%, higher than the revised FY 19-20 budget. The Infrastructure service area is the largest service area at $323.3 million. The service area budget is $15.5 million, or 5%, greater than the revised current year budget. The Water Resources Fund increases from $137.3 million to $139.2 million, an increase of $1.9 million. Balancing current financing, or “pay-as-you-go” capital project financing with debt financing, Water Resources will transfer $27.8 million to various capital reserve and capital improvement funds for significant system projects. The Field Operations Department budget includes funding necessary to continue increased costs associated with the City's residential and commercial recycling programs. Net costs for these programs increased by over $1 million in FY 19-20 due to significant changes in the secondary markets for recycled materials. These costs continue to increase in FY 20-21 by approximately $750,000 , as part of the agreement entered into during FY 18-19. FY 20-21 will be the first full year of operation for the Tanger Center for the Performing Arts , adding approximately $5 million to the Infrastructure service area budget. The Parking Fund will continue accumulating funds for debt service associated with new downtown parking decks under construction during FY 19-20 and FY 20-21. The General Fund will transfer $460,000 to help cover debt service in FY 21-22. Downtown parking deck rates will increase January 1, 2021 to partially support these capital improvement projects. The Public Safety service area increases from $150.9 million to $151.2 million. The net budget includes funds to support the availability of mental health professionals for crisis intervention, and continues community outreach efforts through the Cure Violence program. Public Safety maintenance efforts continue through the upgrades to the Public Safety Training Facility and the rebuilding of Fire Stations #7, Gatewood Ave., and #56, Franklin Blvd. The Community Services service area decreases from $42.1 million to $41.7 million. Within Parks and Recreation, salary funds for seasonal and roster employees increase from $2.5 million to $3 million as the City continues to move hourly minimum salaries to $15.00 per hour for the last phase of the Council - directed priority for a livable minimum wage. The Debt Service service area increases from $36.4 million to $38.3 million. The Debt Service Fund expenditures include principal and interest payments for all outstanding general obligation bonds, including $126 million in bonds approved by voters in 2016. The FY 21-22 projected budget is $16.8 million, or 2.8%, higher than the FY 20-21 adopted budget. Budgeted personnel costs are 2.7% higher than the current year budget, including a net increase of 19.63 full-time equivalent (FTE) positions within the total operating budget. New positions for the Tanger Center account for 11 of these FTEs. The budget includes a 2% cost of living increase for all eligible employees , and increases the minimum hourly wage for general roster and seasonal employees from $13.50 to $15.00. The City is required to increase its contribution to the North Carolina Local Government Retirement System on behalf of its employees, resulting in a $2.5 million increase in retirement contribution costs. Another increase for retirement contributions is projected for FY 21-22 , totaling $2.7 million. Maintenance and Operations (M&O) costs, which include transfers from operating funds to capital projects , or capital reserve funds and debt service expenditures, increase from $311.1 million to $324.8 million, or 4.4%. Economic development incentives, and principal and interest payments for various outstanding debt are a primary driver of this budget increase. For the Debt Service Fund, budgeted principal and interest expenses will increase from $34.7 million to $38.3 million. Capital outlay expenditures are budgeted at $18.8 million, about $1.1 million, or 6.4% above the amended FY 19-20 budget. The Equipment Services Fund is projecting rolling stock replacement needs of $11.5 million in FY 20-21 as compared to $10.4 million in the current year.

Total Net Expenditures by Expenditure Category Actual Budget

Adopted

Projected

2020-21

2018-19

2019-20

2021-22

$ 266,142,989 335,395,816 17,693,044 Total Net Expenditures $ 513,463,967 $ 580,809,411 $ 602,444,406 $ 619,231,849 235,634,170 262,545,851 15,283,946 $ 252,091,226 311,049,939 17,668,246 $ 258,842,900 324,812,006 18,789,500 $

Personnel Costs Maintenance & Operations Capital Outlay

Adopted 2020-21 Budget

15