Total general fund revenues for FY 16-17 were $ 31.09 million. The property tax rate increased from $. 5175 to $. 5325 per $ 100 of assessed value. The additional revenue was used exclusively for expansion of public safety services.

Property taxes account for 57.4 percent of all revenues. Property taxes( excluding registered motor vehicles, which are collected by the N. C. Division of Motor Vehicles) are assessed and collected by Wake County and remitted to the Town throughout the year.

Other taxes, which include the Town’ s share of statewide sales taxes and ABC revenue, account for 20.0 percent of all revenues. Collections during this fiscal year increased 7 percent over the prior period. This category of revenues was boosted through continued improvement in the local economy and changes to the services to which sales tax are applicable.

The Town also received 8.7 percent of its revenues from permits and fees, a decrease of 9.75 percent over FY 15-16. The FY 15-16 total was an anomaly stemming from an 80 percent spike in permitting for a handful of large construction projects. We expect this year’ s growth to be in the historically normal range.

The total cost of general fund programs and services was $ 31.84 million. The cost of public safety programs accounted for 36.4 percent of expenditures, while general government functions accounted for 19.5 percent. Spending in the cultural / recreational category spiked 116 percent due to purchase of the Meadowbrook property, which will be redeveloped at a yet-to-be-determined time in the future. Debt service also increased significantly because FY 16-17 was the first year of debt service payments for the Town’ s 2015 bond issuance.

Major initiatives funded in the FY 16-17 budget( excluding Garner Bond Program projects) included street resurfacing, funding to complete the update of the Town’ s comprehensive growth and transportation plans and financing of vehicle and equipment replacement. Total expenditures per capita increased from $ 962 to $ 1,098, a 14 percent rise due to increasing employee health-care costs, purchase of the Meadowbrook property, increased cost of debt service and higher cost for fire service.

Overall, general fund revenues and other financing sources exceeded expenditures and transfers by $ 3.286 million, which was added to the Town’ s fund balance. Fund balance is akin to a savings account for the Town and can be used to fund capital projects, balance the budget and for emergencies or cash flow during the year.

The chart on the bottom of the next page shows the different categories of fund balance. These categories represent any external or Town Council-initiated restrictions on how fund balance can be used.

EXPENDITURES REVENUES

Environmental protection( 5.93 %)

Transportation( 8.34 %)

Public safety( 36.44 %)

Other taxes and licenses

( 20.06 %)

11 2017 POPULAR ANNUAL FINANCIAL REPORT