It's Good to be Morrisville:
Money in the Bank
Budget and finance matters aren't glamorous, but they underpin all of the services and activities of municipal government. Morrisville’s professional finance staff sets a high standard for financial management.
"Everything we do in Morrisville ultimately boils down to budgeting and finance," says Mayor Jackie Holcombe. "Whether it's transportation, public safety, parks and greenways, establishing our Town Center or other priorities, we need informed, thoughtful leadership to carefully manage our town's funds. That's how we've maintained a low tax rate with a high quality of life".
Under Jackie's leadership, Morrisville enjoys a very healthy financial situation. Highlights include:
- The current fiscal year 2014 budget (Morrisville's fiscal year begins July 1 and ends June 30 of the following year) totals $26.5 million, an increase of 8% from the previous year. Last year's budget increased by 11%. Jackie voted voted no on the 2013 budget with its 11% increase butvoted yes on this year's budget with a more modest increase. This year's budget was passed by the Town Council on a 6-1 vote. One of Jackie's opponents was the only vote in opposition, even though he had voted to approve the previous year's double-digit increase. Jackie's other opponent did not offer recommendations or suggestions for this year's or previous year’s budgets.
- Our current year's budget is based on thepriorities established at the Town Council retreat: transit and transportation, creating a sense of place, maintaining a small-town environment and maintaining a quality staff. Jackie supports the fiscal year 2014 budget because itreflects Morrisville citizens' priorities.
- The current year's budget provides funding fortransportation and public safety items that Morrisville citizens deem important, including $1.2 million for designing the NC 54 bypass (approved by voters in the 2012 bond referendum), $350,000 for Morrisville-Carpenter Road improvements and $120,000 for transportation grant matching funds that multiply Morrisville taxpayers' dollars; and $425,000 for firefighting equipment and $600,000 of additional public safety funding.
- In Morrisville, just over half of our general fund revenues come from ad valorem (property) taxes and 13% from sales tax, which is collected by Wake County and distributed based on population, not based on where the sales tax was collected. We maintain a very healthy fund balance -- think of this as our "savings account" -- of nearly half of our annual expenses, which is twice the minimum recommended by policy.
- Morrisville's property tax rate is 39 cents per $100 of value -- tied for the 4th lowest in Wake County -- and the three municipalities with the lowest tax rates charge separately for residential trash collection, whereas Morrisville includes trash collection as part of property tax revenues. Our current tax base (the value of property on which taxes are collected) is about $3.5 billion, split approximately 60% residential and 40% commercial.
- Our single largest expense is our most important service: public safety accounts for one-third of our budget, with maintenance services being the second-largest expense at 24%. Debt service is a very low 6% (town policy establishes a maximum debt service of 15%; Town Council and staff work hard to minimize our debt service costs)
- Speaking of debt, Morrisville received some great news in 2013: Our bond rating was upgraded to a AAA rating, the highest attainable, by the Standard & Poor's credit rating agency. Morrisville is the smallest municipality in North Carolina to earn the coveted AAA rating, which saves our taxpayers significant money by minimizing debt interest payments.
- An independent audit during fiscal year 2013 resulted in no audit findings, material weakness or management letter -- that means the auditors found no shortcomings and had no suggested improvements -- none! Such a spotless audit is quite rare among municipalities and was the first ever for the Town of Morrisville.
- For 21 years in a row, Morrisville has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association.
Jackie notes, "Sound fiscal management is the nuts and bolts of town government. First and foremost, it is important to remember that town leaders are stewards of taxpayers' money, and I am proud of our prudent budget and finance decisions that maintain a low tax rate and high quality of life for our citizens".
Want to learn more? See the details of the
fiscal year 2014 budget. Find out more about Jackie's positions on fiscal and other issues by visiting Jackie's
web page or
blog and watching the series of brief
It's Good to be Morrisville videos. Or contact Jackie using one of the buttons at the top of this email.
