GENERAL FUND: SUMMARY (cont)

• Not including the debt service refunding in 2019, the Total Expenditures’ CAGR of 11% is driven by increases in Transfers Out and Salary and Benefits. The years 2021 and 2022 include a transfer to the Capital Renewal and Replacement Reserve Fund to help cover infrastructure needs identified in the 2021 Facilities Master Plan. Excluding the debt service refunding and Transfers Out results in a CAGR for Total Expenditures of 9%.

• Salary and Benefits have grown 10%, which includes employee compensation increases and increased healthcare costs in addition to incremental increases in staffing as the Town grows. The 2022 and 2023 budgets position the Town to remain competitive in the tight labor market. Other categories have increased to factor in inflation and Town population growth in order for the Town to continue to provide exceptional services and programs to the citizens.

• In 2019, the Town completed a refunding of outstanding debt that has lowered the Debt Service.

• Capital Outlay fluctuates due to the timing of necessary capital asset purchases and projects. More information on current and future capital outlays can be found in the Capital Budget section of this document.

2023 Adopted Budget vs. 2022 Projected Actual

• The 2023 budgeted total expenditures are decreasing $7.8 million from the 2022 projection due to the difference in the transfer from the General Fund to the Capital Renewal and Replacement Reserve Fund. This decrease is offset by increases in Salary and Benefits and other operational expenses.

• Salary and Benefits increases from the 2022 budget include a 5% performance pay increase and police officer step plan increase and anticipated increases associated with a compensation study scheduled for 2023.

• Supplies, Purchased Services, Internal Services and Utilities are increasing due to inflation.

• The 2023 Capital Outlay budget includes replacement of some aging equipment at Town facilities and parks maintenance equipment.

• The Fund Balance increases $6.2 million (12.8%) due to General Fund expenditures being lower than revenues for the 2023 Budget.