Multi-Year Budget
Context and Background
A multi-year budget allows both staff and Town Council to match available resources to future requirements and to adjust as necessary . This is especially important in a growing town like Garner , as multiple requirements exist to address growth . The Town ’ s Capital Improvement Plan summarizes a variety of requirements necessary to address park , transportation , public safety and other needs . Many of these projects will have long-term operating costs that need to be accounted for in future operating budgets . In addition , the Town will be required to fund a variety of items to ensure service levels remain consistent . As the Town ’ s population grows it is necessary to evaluate the need for and add various positions to ensure the development process remains timely and consistent , that police officers and firefighters are available to ensure residents remain safe , and that Park , Recreation and Cultural Resource and Public Works positions are created to ensure residents quality of life remains strong . Based on these competing priorities , it is imperative to have a long-term vision and to ensure resources are available to address future needs .
During the FY 2020 Budget Process , staff introduced the concept of multi-year budgeting to Town Council . For several years , staff and Council anticipated that growth would improve the Town ’ s fiscal position , but no long-term analysis had occurred to determine the Town ’ s long-term financial standing . This initial analysis identified a structural deficit within the Town ’ s operating budget . Based on this , Town Council made the decision to increase taxes as a first step to addressing the Town ’ s long-term financial health .
In FY 2021 and 2022 , staff continued to utilize the multi-year budget to review the Town ’ s fiscal position and to help Council identify long-term priorities . During the budget process , staff reviewed the five-year forecast with Council which indicated that multiple tax increases would be required to meet future operating commitments . In both fiscal years , Council increased the property tax to help stabilize and address the identified operating deficit . This will be an ongoing exercise over many fiscal years which will also include reviewing the Town ’ s financial policies and procedures .
In future years , staff will continue to utilize the multi-year budget to review the Town ’ s fiscal health and to ensure the Town is positioned to fund Council ’ s priorities . Staff will continue to refine projections and plans included within the future year assumptions . For example , staff has included additional positions and operating impacts associated with Yeargan Park Phase 1 in future years as a placeholder . This process should help to ensure that resources will be available in the appropriate year to ensure Council ’ s priorities are being implemented .
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