NCS000504_MS4 Annual Report (2023)_20240227 (2)

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Town of Fuquay-Varina
Fiscal Year 2024 Adopted Budget
July 1, 2023 - June 30, 2024
INVESTING IN OUR FUTURE

iI FUQUAY-\/AR I NA
FY 2024 Annuol Operoting Budget
TABLE OF CONTENTS
EXECUTIVE SUMMAR'
Budget Reading Guide 1-2
Budget Message Executive Summary 3-20
Town Board of Commissioners 21
Town Administration and Department Directors 22
Town Organization Chart 23
Community Profile 24-27
History of Fuquay-Varina 28
Strategic Plan 29-36
Strategic Plan Development Process Overview 37-40
Strategic Plan Progress Report 41-43
Strategic Plan Department Connections 44-45
Budget Process and Adoption Schedule 46-49
Operating Budget Ordinance 50-58
Changes from Recommended Budget 59
GFOA Distinguished Budget Presentation Award 60
FINANCIAL SUMMARIES
Summary of Operating and Capital Budgets —All Funds 61
Revenue and Expenditure Graphs - All Funds 62-63
Net Revenue and Expenditure Tables - All Funds 64-65
Net Revenue and Expenditure History - All Funds 66-67
Changes in Fund Balance —All Funds 68
Long Range Operating Financial Plan 69-75
GENERAL FUND
Revenue and Expenditure Graphs 76
General Fund Summary 77-78
General Fund Revenue Sources and Trends 79-82
Department Profiles:
Governing Body 83-84
Administration 85-86
Communications 87-88
Finance 89-90
Engineering 91-92
Police 93-94
Fire 95-96
Inspections 97-98
Public Works 99-100
Parks and Recreation 101-102
Arts Center 103-104
Planning 105-106
Economic / Downtown Development 107-108
Information Technology 109-110
Human Resources 111-112
FUQUAY-\/AR 1 N4 FY 2024 BUDGET

UTILITY OPERATING FUND
Water and Sewer System Overview 113
Revenue and Expenses Graphs 114
Utility Fund Summary 115
Utility Fund Revenue Sources and Trends 116-117
Department Profiles:
Water/ Sewer Operations 118-119
DEBT SERVICE
Debt Service Overview 120-123
Outstanding Bonded Debt/ FY 2023 Debt Retirement 124
Outstanding Bonded Debt/ Legal Debt Margin 125
Annual Debt Service Requirements 126
General Debt Fund Summary 127
General Fund Debt Ratios 128
General Existing and Potential Debt Summary 129
Utility Debt Fund Summary 130
Utility Fund Debt Ratios 131
Utility Existing and Potential Debt Summary 132
CAPITAL IMPROVEMENTS BUDGET AND PLAN
Capital Budget Overview and Development Process 133-134
Total Capital Funding Sources / Expenditure Graphs 135
General Capital Reserve Summary 136
General Capital Funding Sources / Expenditure Graphs 137
General Capital Improvements Revenue and Funding Sources 138-139
General Capital Improvement Budget Project Descriptions 139-140
General Capital Improvements Five Year Plan — By Funding Source 141-142
Parks & Recreation Capital Reserve Estimated Fund Balances 143
Utility Capital Reserve Summary 144
Utility Capital Funding Sources/Expenditure Graphs 145
Utility Capital Improvements Revenue and Funding Sources 146-147
Utility Capital Improvement Budget Project Descriptions 147-149
Utility Capital Improvements Five Year Plan — By Funding Source 150-151
Water & Sewer Capital Reserve Estimated Fund Balances 152
Cumulative Impacts of Capital Projects on the Operating Budget 153
APPENDIX
Town Budget and Financial Policies 154-162
Fund Structure / Basis of Budgeting 163-165
Staffing History 166-167
Fees and Charges 168-186
Acronyms and Glossary 187-196
FUQUA'(-\/AR I NA FY 2024 BUDGET

BUDGET READING GUIDE
HOW TO USE THIS DOCUMENT
This is a brief summary of this document's contents and what readers can expect to find in
each section. The organization of this book mirrors how the Town of Fuquay-Varina functions
in order to provide a good operating guide to Department Directors, management, and staff as
well as to provide useful information to our residents in an understandable format. The most
frequently referenced materials in each section are highlighted below. When reading
electronically, hyperlinks are included in the Table of Contents, on this page, and elsewhere in
this document to allow readers to jump directly to what they wish to read. The Table of
Contents is also bookmarked in the electronic version for ease of navigation.
Executive Summary (pages 3-60)
This section includes a comprehensive discussion of the FY 2024 budget as well as vital
background information on the Town of Fuquay-Varina, its local economy, and its Strategic
Plan which forms the basis of its long range operating financial plan both of which provide the
framework for Town management and Board decision making.
own Manager's Budget Message (pages 3-20) Highlights the major aspects of the
FY 2024 budget including the long and short term factors that influenced its development.
=uquay-Varina's Strategic Pla (pages 29-45) The foundation for the Town's long-range
operating financial plan; its goals guides resource allocation not only in the current fiscal
year, but throughout the five-year plan. This section also includes Strategic Plan
Progress Report (pages 41-24) which summarizes the status of the initiatives in the
Strategic Plan. Please note that, if viewing electronically, the Strategic Plan
Department Connections (pages 44-45) are best viewed in a two-page format.
iudget Process and Adoption Schedule (pages 46-49) Explains the budget process in
North Carolina and the Town of Fuquay-Varina.
Budget Ordinance (pages 50-58) Per North Carolina General Statute 159-8,
municipalities may only spend monies that have been budgeted. The Adopted Ordinance
outlines the revenues and expenditures for the Town in FY 2024. A summary of the
Changes from the Town Manager's Recommended Budget follows on page 59.
Financial Summaries (pages 61-75)
Provides a comprehensive, high-level look at all of Fuquay-Varina's appropriated revenues
and expenditures.
Summary of Operating and Capital Budgets (page 62-63)
These charts and tables provide a single point of reference regarding Fuquay-Varina's total
appropriated funds including estimated changes in fund balances. Revenues and
expenditures are consolidated by source and by function, respectively, while the fund
summaries included later in this document, revenues and expenditures are shown by type.
FUQU4`(—\/4R 1 N4 FY 2024 BUDGET
1

Long Range Operating Financial Plan (pages 69-75) Details the financial component of
Fuquay-Varina's Strategic Plan. Five years of revenue and expenditure projections are
shown and the assumptions behind them discussed.
General Fund (pages 76-112)
The General Fund is Fuquay-Varina's major operating fund. The General Fund Summary
provides three years of actual data, the Adopted and Amended FY 2023 budgets, estimated
FY 2023 actuals and the FY 2024 Adopted Budget for revenues and expenditures as well as
the estimated ending fund balance for the General Fund. Revenue sources and trends are also
discussed. Also included are Department Profiles that provide detailed information regarding
their expected expenditures (resources) by type and their operations, i.e., what major
accomplishments they achieved in the prior year, any service level changes, and key initiatives
for the current fiscal year. Please note that, if viewing electronically, the Department Profiles
(pages 83-112) are best viewed in a two-page format.
Utility Fund (pages 113-119)
The Utility Fund is Fuquay-Varina's enterprise fund for water and sewer operations. The Utility
Fund Summary provides three years of actual data related to revenues and expenditures, the
Adopted and Amended FY 2023 budgets, estimated FY 2023 actuals for revenues and
expenditures and the FY 2024 Adopted Budget as well as the estimated ending fund balance
for the Utility Fund. Revenue sources and trends are also discussed. Also included is the
Department Profile that provides detailed information regarding their expected expenditures
(resources) by type and their operations, i.e., what major accomplishments they achieved in
the prior year, any service level changes, and key initiatives for the current fiscal year. Please
note that, if viewing electronically, the Department Profiles (pages 118-119) are best viewed in
a two-page format.
Debt Service Requirements (pages 120-132)
This section details the Town's existing and future debt obligation. Fuquay-Varina has two debt
service funds, one for General related and one for Utility related debt. The fund summaries for
each are included as well as debt ratios and annual debt service requirements.
Capital Improvements budget ana Plan (pages 133-153)
This section of the document is a comprehensive discussion of the Town's capital project
activity in the capital project funds. It includes summaries of both General and Utility project
appropriations by funding source, brief descriptions of FY 2024 Adopted projects and their
impact on operating budgets. This information covers the whole Five-Year Plan timeframe. The
General and Utility Capital Reserve Fund summaries are also included here.
Appendix (pages 154-196)
This section includes technical reference information regarding Fuquay-Varina's financial
policies, principles, fee schedule, and other background information.
Contact Informatior
Any questions or comments regarding this document may be directed to Katherine Lumb,
Budget and Fiscal Strategy Manager at [e-mail] or [phone].
FIUQU4Y—VAR I NA FY 2024 BUDGET
2

FUQUAY-\/AR I NA
north carolino
TOWN OF FUQ UAY-VARINA
FY2023-2024 BUDGETMESSAGE
TO: Honorable Mayor and Board ofCommissioners
FROM: Adam G. Mitchell, Town Manager
DATE: May 1, 2023
SUBJECT Town Manager's Recommended Budget Message forFY2023-2024
Mayor and Town Commissioners:
Submitted foryourconsiderationisthe proposed operating budget forthe Town ofFuquay-Varina,
North Carolina for the fiscal year ending June 30, 2024. This budget has been prepared in
accordance with the North Carolina Local Government Budget and Fiscal Control Act. The
budgetisbalanced and identiflesestimatesforallrevenuesand expensesforthe 2023-2024 fiscal
year.
INTRO DUC TIO N
Annually, the Governing Body is presented with a proposed operating budget that aims to meet
the goalsestablished by the Board overthe previous fisc a lye a r and ofcourse during the strategic
planning meetings that take place at the Board's annualretreat. The Town Board adopted the
Town's 2021-2025 Strategic Plan just over two years ago, and Town Management shared the
signiflcantprogresswe are making at the Town Board retreat in February. Asseveralthe initiatives
of the 2021-2025 Strategic Plan have been substantially accomplished, the Town Board has
identified a numberofnew initiatives that are included in the proposed 2023-2027 Strategic Plan.
The recommended operating budget was developed with the intention of advancing the core
values, objectives and initiatives identified within the Strategic Plan, while advancing historically
unprecedented investments in water,wastewater, and transportation infrastructure to secure the
Town's future prosperity. Fundamentally, the value proposition of the Town is to provide a high
levelofservice to citizens in an efficient and effective manner, so that we can promote quality of
life while being sensitive to financial impacts on the citizen or customer. The FY 2024
Recommended Budget is intended to reflect that value proposition.
The theme of this budget is "investing in our future". Fuquay-Varina remains one of the most
desirable places to live in the country, and the commercial and residential outlook for Fuquay-
Varina remain strong even as the nation is impacted by the pressuresofhigherinterestrates. At
the Strategic Planning Retreat just two months ago, we spent a significant amount of time
discussing the Town'sprogre ss on three majorprojectsto expand waterand wastewatercapacity.
Over the past year, the Town has worked with the City of Sanford and other partners including
Holly Springs, Chatham County, and Pittsboro to design and negotiate Inte floc a1Agreements for
the Sanford WaterExpansion Project and related water conveyance infrastructure that willmeet
the Town's water supply needs for the next generation. Design and the interbasin transfer
certificate process forthisprojectiswellunderway, and construction of the waterfiltrationplantis
3

expected to begin later this calendar year with construction of the conveyance line scheduled
to begin in 2024. In addition, the Town hasbegun ispartnering with Harnett County on expansion
of North Harnett Regional Wastewater Treatment Plant currently in the design phase and is
simultaneouslybeginning design forexpansion ofthe Town's Terrible CreekWastewater-fie atment
Plant to meet the Town's wastewater capacity needs for the next generation. Given the
magnitude ofc apita linve stment re quire d ofthisendeavorand to considerupdated construction
costs,the Town hascompleted an updated waterand sewerrate study and System Development
Fee study to identify funding sources for the revenue bonds required to fund this investment and
Enterprise Fund operations. The Mana gees Recommended Budget and Five-YearPlan represents
the advancement of all the se initiatives while maintaining the Town's strong fmancialposition.
While the investments noted above fallwithin the Enterprise Fund, Ihave highlighted them as the
provision ofa resilient and reliable source ofwaterand the associated wastewater infrastructure
are essential for the Town's economic growth and ability to provide core services and quality of
life amenitiesforTownresidents. As suc h,adva nc ing these projects area majorfocalpointasthe
Town makes historic infrastructure investments to secure long-term prosperity for the Town and its
residents.
Fuquay-Varina remains a desirable area to live, and growth in the regional life sciences and
technology industries, with strong education and health care infrastructure continue to drive
residential, commercial, and industrial investment. In fact, the Raleigh-Cary Metropolitan
Statistic al Are a (MSA) has been the second fastest growing MSA in the nation since 2020, and
while the pace of permitting has been impacted by rising interest rates, both current and
forecasted growth remain strong. While the local economic fundamentals are positive,
development of this budget did not come without several economic and fiscal challenges.
Specifically, inflation in lab or and material costs have placed pressures on op era tionalbudgets
and the cost of projects. Additionally, increasing interest rates are expected to increase
borrowing costsofplanned projects. Finally,the Town is in an extremely competitive labormarket,
and recruiting and retaining ta le nt re quire s c ontinue d focus on employee c omp e nsa tion to recruit
and retain high quality talent to continue to provide high quality municipalservices.
In November2021,voters overwhelmingly passed an $18.5 million Parks and Recreation Bond and
$20 million Transportation Bond. The Recommended Budget and Five-Year Plan reflects issuing
these bonds to begin construction ofthe new Community CenterNorth in early Summe r2023,a nd
issuance of Transportation Bonds to continue pursuing investment in transportation infrastructure
in partnership with the North Carolina Department of Transportation. In addition to constructing
the nine previously approved transportation projects supported by Town dollars and $17 million in
grants over the next year, the Recommended Budget and Five-Year Plan reflect using the 2021
Transportation Bond to improve seven major interse c tions over the next two years.
While the c a pita 1 inve stme nt Ihave referenced above is critically important, it is just as important
to invest in the sta ff re sp o nsib le for managing these projects and maintaining the town's street,
sidewalk, sanitation, water and sewer infra structure, public safety, and core services. This are a of
focus has remained central to development of the FY2023-2024 operating budget and its five-
yearoperating and capitalplan.
It is also important to highlight that this year's budget process provided both the traditionalpre-
budget public hearing and pre-budget public input on the Let's TalkFVcommunityengagement
platform. 'Through Let's Talk FV, residents were able to submit comments on the budget and 12
respondentsparticipated. ihisbudgetwasalso developed with the benefit offeedbackfrom the
455 residentsthat completed the Citizen Survey late last year.
4

BUDG ET PHILO SO PHY
The guiding philosophy behind the establishment ofthe annualoperating budget continues to be
advancing the goals of the 2021-2025 Strategic Plan. Earlier in 2023, the Governing Board and
management met over the course of two days to discuss progress on and refine or establish
objectives and initiatives associated with each ofthe six core values as partofthe Strategic Plan,
aswellasto identify opportunitie s to advance operationalexcellence and enhance qualityoflife
for Town residents and businesses. 'lhisbudgetattemptsto make investments to advance each
ofthe following core values from the Strategic Plan:
• Effective Government and Governance
• Fisc a 1 Stre n g th
• Safety and Security
• Economic Vitality
• Preserving Character and Identity
• QualityofLife
Fiscalstrength and a sound fmancialfooting are
a significant component of the Governing lOyr Fund Balance History
Board and management's focus when $30,000,000 -
developing and implementing the annual $25,000,000
operating work plan, and this core value is
foundational in developing a structurally $20,000,000 - -- ,
balanced operating budget that positions the $1s,000,000
Town to weather fiscal stresses and advance
strategic ob je c tive s in the long term. In 2022,the $10,000,000 , , , , , , , , ,
Town produced its ninth AnnualComprehensive $5,000,000
Financial Report (ACFR) and in that report the so - iiiiiiiiii
Town demonstrates its commitment to 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
responsible planning, fiduciary responsibility,
and transparency. At the end ofFY2023, The Town expects to add to its healthyunassigned fund
balance in the General Fund, that at the end ofFY2022 was approximately $27.6 million, which
represents approximately 49%ofthe Town's a nnua 1proje cte d operating expenses in FY2024. This
is the resultofoverperforming conservative revenue assumptions and expenditure savings realized
due strong fisc a lma na gement pra c tic e s,even asthe Town had planned to use Unassigned Fund
Balance in support of specific planned economic development projects consistent with the
Adopted Five-YearPlan, as we ll a s othe r p la nne d use ofFund Balance for one-time expenditures
over the course of the year. Over the past 10 years the Town has experienced an upward trend
in unassigned fund balance growing its reserves commensurate with the growth in annual
operating expenses. During this time frame, the Town has periodic ally budgeted use of re serves
forspecific c a p ita 1 p ro je c ts a pprove d by the Town Board.
As in p a st ye a rs,the FY2024 Re c ommende d Bud g e t fo c use s on the personnel,services,programs,
capital equipment, and projects that will allow the Town to accomplish the Board's strategic
objectives and continue to effectivelydeliverservicesata levelourresidentsand businesses have
come to expect. The Townwillcontinue to operate as efficientlyasposslble,therebymaintaining
its tradition of doing more with less, while providing excellent service and mitigating increases to
the property tax rate. As a service-driven organization, the addition of personnel to the
organization is essentialto sustain a levelofservice that the communityhasbecome accustomed
to and that will allow the staffto be effective while experiencing increased workload.
5

The FY2024 Recommended Budget reflects the addition of the following new positions in the
GeneralFund:
FY2023-2024 PERSONNEL FTEs
Arts Center
Full-time Special Events Coordinator 1.0
Parks&Recreation
Community/Sr. Center Administrator 1.0
Senior Program Specialist 1.0
Recreation Program Specialist 1.0
Po lic e
Police Officers 6.0
SchoolResource Officer Supervisor 1.0
SchoolResource Officer(SRO) 2.0
Telecommunicator 1.0
Accreditation Specialist 1.0
Fire
Administrative Assistant 1.0
Engineering
Construction Inspector 1.0
StaffEngineer 1.0
Public Works
Sanitation EQ. Operator 1.0
Sanitation Worker 2.0
Tota 1 Pe rsonne 1 21.0
These positions are necessary to maintain service levels for our citizens in areas that have
experienced significant increases in workload, make strategic investments in the core value area
of safety and security, as well as to advance and operate the recreational and transportation
investments authorized by the voters. In addition to the 21 new positions in the GeneralFund, 3
new positions are included in the Enterprise Fund to maintain the Town's growing utility
infrastructure including a Wastewater Treatment Plant Operator, a Collections Pump
Maintenance Mechanic, and a WaterUtility System Operator.
6

REVENUE SUMMARY
The FY 2023-2024 operating budget for the General Fund is $57.4 million, which represents
approximately 12%growth from the FY2022-2023 Budget of$51.4 million. Furthermore, in addition
to the $220,000 Transfer to Capital Projects from the General Fund, the FY 2024 Budget also
includes$15.8 million in funding identified within the CapitalProjectsFund primarilyforconstruction
oftransportation and recreation projects sourced by bonds, grants, and capitalreserves. When
the FY 2023 Recommended Budget was presented this time last year, there was still some
uncertainty as to the pace and timing of residential and commercial projects and their impact
on salestax,permitsand fees,and taxbase growth. Iam pleased to report,the Town iscontinuing
to experience consistent salestaxgrowth reflective ofa strong localeconomy,while experiencing
a moderate to strong pace ofresidentialconstruction slightly slower than last year's record level.
This, coupled with increases in other revenues has positioned the Town to add resources to
enhance core services,promote qualityoflife,andmaintainthe Town'sinfrastructure in manner
that is fiscally sustainable.
Miscellaneous Transfers In
<1% 0%
Interest
<1% PowellBillFBAppropriated
<1%
Sales and Service
10%
Permits and Fees
6%
Re stric to d IG
7%
Unrestricted IG
1%
Ad Valorem Taxes
OtherTaxes 50%
5%
SalesTax
20%
General Fund Revenues
The tax rate included in the operating budget is
l0yr Tax Rate History $0.455 per $100 of assessed property value. this
$0.440 rate isbased on an estimated taxbase ofjustover
$0.430 $6.3 billion. this budget does include a tax rate
$0.420 increase of 3 cents to partially support debt
$0.410 service and op e ra tions forthe Community Center
$0.400 North. The bond referendum information shared
$0.390 with the voters stated "the total e xp e c to d
$ .37
$0.3 70 •
•
■ ■ ■ ■ ■ ■ ■ construction costs are estimated at $25 million.
$0.360 The anticipated cost could require a 4.5 cent
01 ^ o\% o\e oti° ti otiti oti� adjustment to the to x ra to",while also sharing the
ti ti ti do ti ti ti do ti ti Town Board expects to mitigate the impact
through tax base growth, leveraging other
7

funding sources, and competitive bid prices. The Town has used these strategies to secure grant
funding and manage cost, and in doing so expects to delivera Community Centerthat includes
both Phase Iand II construe tion to address surging demand in parks and recreation programs
while mitigating the impact on the taxrate.
The Town has historically budgeted revenue growth in a conservative manner, to ensure there is
a reasonably high levelofconfldence income from sales and use tax, unrestricted and restricted
intergovernmentalrevenues,permitsand fees,and salesand servicesmeetbudget. 'Ihistypically
results in an operating surplus, with the Town ending the fiscal year with actual revenues
exceeding budget and actualrevenuesgreaterthan actualexpenses.
The availability of fund balance more
than what is required by the Town's 10yr Prop erty Value History
fma nc is 1 p olic ie s provides flexibility to use $6,000,000,000
fund balance for specific one-time
capital projects and expense s. 'This $5,000,000,000 —
budget does not reflect the planned use $4,000,000,000
offund balance as in past years, but the
use offund balance for one-time capital $3,000,000,000
—
expenditures are planned for in future
$z,000,000,000 111111111
years of the Five-Year Plan. Permits and
fee revenue assumptions have been $1,000,000,000
reduced from the FY 2023 Adopted
Budget, and the FY2024 Recommended $0
g 2013 2014 2015 2016 2017 2018 2019 202020212022
Budget assumes modest growth from the
current pace ofpermitting and inspections activity, while sales tax, sales and service, and other
revenues are expected to continue general growth trends as Wake County and the Town
continue to grow. It is worth noting that growth in major revenue is conservatively projected to
grow ata pace more in line with and in some casesslightlybelow historic norms,and do not reflect
the rate ofgrowth experienced overthe last two years. In this proposed budget,bond proceeds
are proposed to be directlyappropriated within the CapitalProjectsFund,asare projects funded
from Capital Reserves. A transfer from Recreation Reserves to the General Fund is reflected
consistent with past years for debt service associated with Fleming Loop Park Improvements and
the existing South Park Community Center.
With assessed property values continuing to rise, as they have for the past decade, and most
revenues projected to increase, the Town ofFuquay-Varina is positioned to maintain a healthy
reserve balance,which is important to the rating agencies,the bond market and community. By
maintaining a healthy fund balance, the Town can respond to emergencies and unusual
circumstancesthat may arise aswellassignalto the bond market that the Town can fulfillits debt
obligations, which in tum helps with favorable financing of capital projects. This is especially
important given the planned issuance ofbonds for Transportation and Public Utility projects over
the course of the Five-Year Plan. In summary, the Recommended Budget and Five-Year Plan
placesthe Town in a strong fmancialfooting to address its goals and objectives.
8

EXPENSE SUMMARY
The Town ofFuquay-Varina GeneralFund budget includes appropriations a cross2l departments
or department divisions in addition to funding for special projects, capital equipment, capital
proje c ts, e xisting debt, a nd debt re se rve s.
Appro to Fund
Balance Gov Body
4% <1% Admin Comm
2% 1%
Transferto Cap Proj Finance/o
0% 2
Engineering
3%
Dwntwn Dev Debt Sery
<1% 9% -Public Bldgs
Ec on De v \ 1%
<1% Centra1Sery
5%
Arts C e me r
2% rr
3%
PR&CR .11 _HR
10% NIFFF.'-
1%
Planning
3% Police
19%
Sanitation
6%
Yard Debris
2%
Po we llBill
2% Fire
Streets 16% 'PF' General Fund
5% Inspections
Expenses
4%
PERSO NNEL BIG HLIG HIS:
The FY2023-2024 budget includes funding for
24.0 full time equivalent positions (21.0 in the Pe rsonne 1 History
Gene ra 1 Fund). As stated earlier,the proposed
-
new positions a re directly related to managing 400.0
-
and maintaining the Town's expanding street, 350.0
300.0 -
sidewalk, and water/sewerinfrastructure, and —..'' •
meeting workload demands particularly in 250.0 - '' •
•
•
•
public safety, sanitation, and Town events. 200.0 ' 01 •
• •
•
•
•
Strategic inve stments in new personnel are 150.0 ■ •
■ ■ • ■ • • •
needed to continue to advance objectives 100.0 ■ •
■ • • • • • •
and initiatives identified within the core values 50.0
ofthe strategic plan, particularly in the areas 0.0
of Sa fe ty and Se curity, Effe c tive Government 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
and Governance, and Quality of Life. Three FI.bs are proposed in the Enterprise Fund to address
system maintenance needs including a water opera tor, wastewa ter co Ile ctionsmechanic, and
a wastewater treatment plant operator. The need for these positions is consistent with the
HazenSawyerPublic Utility Staffing study, and are needed to properlymaintain,improve reliability
and efficiency, and reduce long term cost of the Town's public utility system especially
considering the major c ap ita 1proje cts on the horizon.
9

New GeneralFund positions are proposed as follows:
• Partial year of full-time staffing (3.0 Nlhs) to operate Community Center North (a
Community Center Administrator, Active Adult Program Specialist, and Recreation
Program Specialist)
• 11.0rlhinthe Police Department,including 9.0N"lhadditionalPolice Officers to provide an
additional patrol officer per shift and a traffic unit to provide peak hour coverage,
including 3.0 llh,to expand the SchoolResource Officer program to middle schools and
2.0 Flh, primarily dedicated to the Downtown districts. Also included is a Police
Telecommunicatorand a Police Accreditation Specialist.
• 3.0 Fein Sanitation to add an additionalSanitation Collections crew
• 2.0 FIE in the Engineering Department including an additional Staff Engineer and a
Construction Engineerto manage and inspect transportation projects and otheradditions
to the Town's infrastructure
• 1.0 FIE SpecialEvents Coordinator within the Arts Centerdepartment
• 1.0 F E Ad m inistra tive Assistant a t Fire Station #4
• While the positions were included in FY 2023, FY 2024 represents the first full year of
personnelcosts for the 9 new firefighters for Fire Station #4
The totalnumberoffull-time positions in the organization willincrease from 344 to 368 if approved
by the Board.
In addition to the change in the numberofpersonnelthere are other factors that have financial
implications to the overallexpense ofstaffing. There is no higherpriority for this organization than
providing outstanding customer service and high-quality services, and that starts with recruiting
and retaining talent. To this end, this budget was developed with compensating Town staff
commensurate with the competitive Wake County job market as one of the highest priorities. A
4-percent market (cost of living) adjustment is recommended to partially offset the impact of
inflation on employee realwages, consistent with otherarea units o f loc a 1g ove mme nt, aswellas
a potentia 1 3-perc ent performance (merit) compensation adjustment. The budget also reflects
full implementation of the pay and classification study completed in FY 2023 which will be
presented for Town Board consideration on May 1,2023. Additionally,the Town is finalizing health
insurance negotiations but has budgeted fora 15 %increase in health insurance premiums. On
top ofthese costs, the Town continues to contribute funding forthe employer share of employee
benefits including the LocalGovemmentEmployee Retirement System,North Carolina 401K,FICA,
and Workers Compensation Insurance.
CAPITAL EQ UIPMENT
The FY2023-2024 budget includes appropriations totaling $5.4 million in the General Fund for
capitalequipment. Some ofthe notable expenses include funding fora compact garbage truck
in Sanitation, a litter picker and towable boom lift in the Streets Department, a new tractor and
mower in the Parks, Recreation, and Cultural Re sources Department, a radio repeater antenna
for the John W. Byrne MunicipalBuilding, and new position vehicles and equipment in the Police
Department. To improve the reliability and performance ofthe workhorses of our fire system, the
fire engines,the Recommended Budgetalso includesfunding to replace allfouraging fire engines
through installment financing. The Fire Department apparatus plan willreplace engines on a 7-
yearreplacement cycle, significantlyreducing the expense and downtime required for major fire
engine repairs. This action will allow Fire engines to remain in service to meet the needs of our
residents. Due to the cost and lead time to purchase Fire Engines,the fire engine replacement is
reflected asa capitalproject.
10

CAPITAL AND SPEC IAL PRO J EC TS:
Several capital and special projects are also incorporated in the operating budget for the
GeneralFund to continue to invest in Town assets that advance quality o f life and service delivery,
aswellasadvance Strategic Prioritiesofthe Town Board. It should be noted thatmostofthe larger
projectswhich often cannotbe completed in a single fiscalyearare proposed to be appropriated
directly in the Capital Projects Fund. In FY2023-2024, $17.2 million in capital and projects are
recommended as follows:
DepartmentalOperating Budget Projects
> HNTPP Maintenance Building Garage DoorReplacement
> Transportation Plan Update (second halt)
> Fire Station #1 Pa rking Lot Re sea Ting
> Fire Station #2 Exhaust System Upgrade
> Arts Center Live Stream Capability
> Streets Sto rm wa to r System Maintenance
C a p italProje c t Fund Projects
> Community CenterHVAC Replacement
> Town HallWindow Replacement
> Fire Station #1 Pa rking Lot Re sea Ting
> Fire Station #2 Exhaust System Upgrade
> Replacement ofFourFire Engines(Installment Financed)
> Stre et Re surfa c ing and Improve ments(Po we ll Bill)
> SE Judd Parkway and AngierRoad Intersection Improvements
> Old Honeycutt and Kennebec Road Intersection Improvements
> NC 55 and James Slaughter Road Intersection Improvements
> Purfoy Road and Holland Road Intersection Improvements
> Honeycutt Park Playground Replacement
> Willow La ke s Pa rk Fie Id Lights
> Willow Lakes ParkParking Lot Construction
> Falcon Park Field Lights Replacement
> Alston Ridge Greenway Construction
DEBT SERVICE:
Debt Service in the GeneralFund for the FY2023-2024 year is $5,266,775, of which $4,586,804 is
paid by the General Fund, $448,771 is paid by Recreation Fees in Lieu forFleming Loop Park and
South Park Community Center Debt Service, and $231,200 is paid by the Enterprise fund for its
share of Public Service Center debt service. Outstanding debt remains on the South Park
Community Center,2019 Re funding Bonds,2012 Bonds,the Public Service Center,2018 G.O Bonds
(Transportation), 2018 Limited Obligation Bonds (Gov't Facilities and Fleming Loop Park), the 2021
Installment Financing ofa Fire Ladder Truck, and Fire Station #4. The earliest that any debt will
come off the Town'sbalance sheetwillbe at the end of the 2025-2026fiscalyearwith South Park
Community Centerexpansion and renovations being paid off It is anticipated that new debt will
need to be serviced in the FY2024 Fiscal Year for Community Center North construction and
issuance of the remaining $3.65 million in 2015 Transportation Bonds for construction of Wallace
Adcock Boulevard. Additionaldebt is planned to be issued during FY2024 of$10 million in 2021
Transportation Bonds to advance construction of the four tra nsp orta tion projects identified in the
budget, as wellas forthe purchase of the four replacement fire engines. Debt service for these
two projects willbe serviced beginning in the FY2025 Budget, as reflected in the Recommended
Five-YearPlan.
11

SUMMARY:
The graph below de scribes how every one-hundred dollars($100)oftaxes are distributed towards
the operations ofthe GeneralFund for the TownofFuquay-Varina. As se en, Public Safety(Police
and Fire) encompasses34%ofthe $100, foRowed by Public Works at 16%,Inte malServices at 12%,
Arts and Recreation at 12%,Development Services at 10%,Gene ralGovernment at 4%,Economic
and Community Development at 1%, Debt Service at 9%, Transferto CapitalProjects at less than
1%, and Appropriation to Fund Balance (set aside due to the one time lag between the tax rate
adjustment to support the new CommunityCenterNorth construction and the first fullyearofdebt
service being due) at 2%.
' .toiOr WORN, ' t ��8���1 �
V 1,.m ,t.xlIItlM7lV16 NOME '3•
I
FF 95594731 A `1 M Na ;1 IST,[�'
F 6 N
-- .
0..,,,„„,
Ji °s 14 3
_. :
„ ,. ..
. , :,
--'-' ,,.,,,'; , ..,..1-... F F 9 5 5 9 4 7 31 A
•
rC�ti .z:
• y kiL
f: l O141TL L7YD t ill D( 7.1"..,1 t WA
Z / .� a'nsPortoCap.Proje cts
D$4,Service1,804 / $220,000
Pub tic Safety Public Works Irate malSe rvc es Arts and Recreation I $4,881,804 <1%or<$1
$19,548,281 $9,267,413 $6,729,009 $6,772,299 9%or$9
34%or$34 16%or$16 12%or$12 12%or$12 De v.Services
$5,745,920 Gene m 1Gov't
10%or$10 $2,068,582
4%or$4
I Approp.to FB
Econ.and Comm.Dev.
$751,436
$1,411,318 1%or$1
2%or$2
ENTERPRISE OPERATING FUND
The Town's Water and Sewer Enterprise Operating Fund budget is recommended at $22.9,
representing an inc rease of a pp ro xima te ly$5.2 million o r 29%inc re a se in operating expenses over
the prior year. This increase is primarily due to the need to prepare for the significant planned
investments in expansion of water and wastewater capacity while maintaining a resilient and
reliable source of water and wastewater infrastructure. The FY2024 Recommended Budget is
consistent with the Town's utility capital, financial, and rate models which require generating the
fiscal capacity to support the Revenue Bonds required to advance $275 million in Utility Capital
Projects in FY2024 and additionalprojects within the CIP planning horizon. Three new personnel
are recommended to ensure the ability to support system expansion and continue to provide core
services, including an additional Wastewater Treatment Plant Operator, Collections Pump
Maintenance Worker, and a WaterUtility System Operator. The capita1equipment investment of
$643,000 ensures staff have the tools needed to work safely, effectively, and efficiently. The
remainderofthe budget inc re a se s reflects inc re a se d water and sewer sales commensurate with
customergrowth, supplierwhole sa le waterincreases, aswellaspay-go and debt service costs of
the major water and wastewater system up gra de s underwa y.
The need forboth base and volumetric utility rate inc re a se s wa s id e ntifie d by the consulting fume,
Stantec, using a rate modeling system which considers current and projected operating and
capital costs to determine the necessary revenue to support these costs. This utility fund rate
model identified the need for a 20.0% increase to both base and volumetric rates in
12

FY2023-2024. The combined monthly bill for an In-Town resident using 5,000 gallons ofwaterwill
increase $17.77 permonth.
2023-2024 2024-2025 2025-2026 2026-2027 2027-2028
Enterprise Revenues
Water Sales $8,783,590 $11,162,371 $13,140,462 $15,432,555 $18,085,525
Water Sales(Rate Increases) 1,756,717 1,339,484 1,576,855 1,851,906 904,276
Water Tap Fees 515,250 515,250 472,000 472,000 472,000
Water Meter Sales 75,000 75,000 75,000 75,000 75,000
Interest Earnings 300,000 149,278 214,365 254,902 252,515
Penalties 165,000 165,000 165,000 165,000 165,000
Misc.Revenue-Leases and Insurance 150,000 80,000 80,000 80,000 80,000
1 Sewer Sales 9,155,880 11,864,404 14,188,863 16,900,346 20,058,264
'Sewe`Sewer Sales(Rate Increases) 1,831,175 1,423,728 1,702,663 2,028,041 1,002,913
r
Tap Fees 167,550 167,550 167,550 167,550 167,550
Sewer Pre-Treatment Fees 1,800 1,800 1,800 1,800 1,800 I
Operating Fund Reserve Appropriation - - - - -
Total Revenues $22,901,962 $26,943,865 $31,784,558 $37,429,100 $41,264,843
2023-2024 2024-2025 2025-2026 2026-2027 2027-2028
Enterprise Expenditures
Operations 13,386,755 14,147,567 14,994,316 15,819,737 16,998,005
New Positions 195,000 195,000 170,600 474,000 335,000
Capital Equipment 493,000 329,000 452,000 625,000 485,000
Transfer to Capital Projects 1,403,063 4,967,411 4,523,833 3,855,230 8,988,021
Transfer to Debt Service 1,595,440 10,598,581 10,817,419 14,350,472 16,033,793
Designated for Fund Balance 228,039 - - - -
Total Expenditures $17,301,297 $30,237,559 $30,958,168 $35,124,439 $42,839,819
Revenue Over(Under)Expenditures $5,600,665 ($3,293,694) $826,390 $2,304,661 ($1,574,976)
Estimated Beginning Fund Balance $ 8,489,214 $ 14,089,879 $ 10,796,185 $ 10,796,185 $ 11,622,575
Change in Fund Balance 5,600,665 (3,293,694) 826,390 2,304,661 (1,574,976)
Estimated Ending Fund Balance $ 14,089,879 $ 10,796,185 $ 11,622,575 $ 13,100,846 $ 10,047,599
Over the course of the Five-Year Plan, the Enterprise Operating Fund remains strong supporting
both operating costs and increasing Debt Service and Capital Project costs (starting in FY2024-
2025) that are traditionally funded through the Utility CapitalReserve. By FY2028, the Enterprise
Operating Fund is covering about 70%ofDebt Service. 'This Five-Year Plan reflects Debt Service
and CapitalProject cost assumptions for the Sanford Water Treatment Plant and Conveyance
System, North Harnett Regional Wastewater Treatment Plan expansion, and the Terrible Creek
Wastewater Treatment Plant expansion. As the Town continues to pursue additional funding
sources,projects are bid over the next two years,and revenue bonds are sold, future annualdebt
support costs will be established with a high level of clarity and predictability. This plan was
developed with conservative fmancialplanning assumptions to ensure the Town is well-positioned
to achieve the Town's strategic priorities for the Enterprise Operating and Utility CapitalReserve
Funds.
UTIIIIY CAPITAL RESERVE FUND
The Utility CapitalReserve Fund acts as a collection point forrestricted system development fee
revenues which are then used to support capitalprojects and debt service through transfers to
those funds.
A System Development Fee study was conducted by consulting firm, Stantec. The study
recommends an $882 increase to the WaterSystem Development Fee bringing the totalto $3,912.
The study also recommends a $641 increase to the Sewer System Development Fee bringing the
13

total to $3,891. Economic development is driving the need for system expansion. System
development fees are a way for developers to share the cost of this expansion, so it is not solely
supported by the increase in commercial and residential utility rates. While the Water System
Development Fee was increased last July, capital project costs and debt service needs are
significantly higher than even a year ago, as design for these major projects has given greater
clarity on rapid inflation in labor and material costs that drive the cost of utility infrastructure.
Again, as construction projects are bid and bonds sold over the next two years, locking in future
annual debt support costs, the Town will have the opportunity to adjust FY2025-2026 through FY
2028-2029 forthe UtilityCapitalReserve Fund to maintain an appropriate leveloffund balance to
mitigate unforeseen challenges or support new opportunities.
2023-2024 2024-2025 2025-2026 2026-2027 2027-2028
Revenues
System Development Fees
Water System Development Fees $3,575,586 $3,575,586 $3,277,620 $3,277,620 $3,277,620
Fee Increase 1,040,814 1,040,814 954,080 954,080 954,080
Sewer System Development Fees 3,929,566 3,929,566 3,602,102 3,602,102 3,602,102
Fee Increa- 739,634 739,634 677,998 677,998 677,998
Interest 200,000 88,575 128,065 113,111 48,684
Reimbursement from Issued Bonds 8,287,720 - - - -
Bond/Loan/Grant Proceeds 271,201,495 5,000,000 - - -
Total Revenues $288,974,815 $14,374,175 $8,639,865 $8,624,911 $8,560,484
Expenditures
Transfer to Debt Service $4,527,357 $4,933,665 $5,065,423 $6,947,753 $6,961,899
Transfer to Capital Projects 2,069,130 2,917,435 5,609,936 9,018,072 5,148,106
Transfer to Capital Projects(Bonds) 271,201,495 5,000,000 - - -
Total Expenditures $277,797,982 $12,851,100 $10,675,359 $15,965,825 $12,110,005
Impact on Capital Reserve Fund Balance
Estimated Fund Balance 6/30/2023 $ 6,294,465 $ 17,471,298 $ 18,994,373 $ 16,958,879 $9,617,965
Change in Fund Balance 11,176,833 1,523,075 (2,035,494) (7,340,914) (3,549,521)
Estimated Ending Fund Balance $ 17,471,298 $ 18,994,373 $ 16,958,879 $ 9,617,965 $ 6,068,444
UTIIITY C APTTAL PRO J EC T FUNDS
The FY2023-2024 budget includesnumerous c a p ita 1p roje c ts tha t c ontinue planning forthe future.
These projectsprimarilyinvolve increasing the capacityofthe waterand sewersystem aswelland
making provisions for a dditiona lwater supply required to support development activity and user
growth. The majorcapitalprojects forFY2023-2024 are as follows:
> Sanford Water Conveyance System Construction and Easement Acquisition
> Sanford Water Treatment Plant Expansion Design and Construction
> Ternble Cre ek WWTP Expansion Construction
> Northern Harnett County WWTP Expansion Construction
> Donny Brook Road Water Line —Lake Wheelerto US401
> Burt Road Water Line —Fleming Road to Starchase Lane
> WagstaffRoad Waterline —Howard to Wetstone Drive
> 1 MGD Elevated Tank—Bass Lake Road/Wilt on Road area
> Southern Oaks Sewer Pump Station
Further, the FY 2023-2024 budget includes funding for continued, routine water and sewer
maintenance projects and other miscellaneous maintenance projects that come up over the
course of the year. As with the General Fund, routine and miscellaneous projects that were
traditionally budgeted in the Enterprise Operating Fund are being transferred to the appropriate
14

Utility Cap ita 1 Pro je c t Fund, these include waterline replacements, Inflow &infiltration SewerLine
Rehabilitation, oversizing,valve replacements, and othermiscellaneous projects.
Additionally, there are severalcapitalequipment investments that are recommended as follows:
> Mini-ExcavatorReplacement
> Air Brake Trailer
> Mulching and Sweeping Attachments for Skid Steer
> OutfallReelforCombo Truck
> New and Replacement Crane Truck
> MeterReading TruckReplacement
UTILITY DEBT SERVIC E FUND
Debt Service in the Enterprise Fund for the FY 2023-2024 year is $5,891,597. Debt Service for
outstanding debtoverthe course ofthe Five-YearPlan is shown below. The earliest that any debt
willcome off the Town'sbalance sheet forthe Enterprise Fund willbe at the end ofthe 2026-2027
fiscalyearwith the Combined Utilities Bonds, Series2021 being paid in full. Debt Service revenue
sources are Transfers from the Utility Capital Re serve and Transfers from the Enterprise Operating
Fund. Revenues always equal expenditures so this fund does not carry any fund balance. It is
important to note that debt service for the Sanford Plant Expansion project, Sanford Conveyance
Infrastructure, North Harnett WWTP Expansion, and Terrible Creek WWTP Expansion along with
other debt-funded utility projects have been included in the debt service forecast below. The
detailsofhow the Town willbe charged foritsparticipation in thisproject have not been finalized;
therefore, the debt service is a placeholderforthe Town's cost share. Should the method of our
participation change, we are confident that the Town has budgeted enough to cover the
difference.
2023-2024 2024-2025 2025-2026 2026-2027 2027-20278
Revenues
Transfer from Capital Reserve 4,527,357 4,933,665 5,065,423 6,947,753 6,961,899
Transfer from Utility Operating 1,364,240 10,225,031 10,450,394 14,177,745 15,862,716
Total Revenues 5,891,597 15,158,696 15,515,817 21,125,498 22,824,615
Debt Service
Water Debt Service 2,268,445 6,176,869 6,554,190 10,815,611 11,132,079
Sewer Debt Service 3,623,152 9,355,377 9,328,652 10,482,614 11,863,613
Total Debt Service 5,891,597 15,532,246 15,882,842 21,298,225 22,995,692
15

EXISTING UTILITY DEBT 2023/24 2024/25 2025/26 2026/27 2027/28
Combined Utilities Bonds,Series
2016
Principal $975,000 $1,015,000 $1,055,000 $1,110,000 $1,165,000 *ends 2030
Interest 789,350 750,350 709,750 657,000 601,500
Combined Utilities Bonds,Series
2021
Principal 1,173,000 1,169,000 1,168,000 1,163,000 232,000 *ends2027
Interest 327,580 301,774 276,056 250,360 224,774
Public Service Center**
Principal 200,000 200,000 200,000 200,000 200,000 *ends 2031
Interest 31,200 27,300 23,400 19,500 15,600
Principal $2,348,000 $2,384,000 $2,423,000 $2,473,000 $1,597,000
Interest 1,148,130 1,079,424 1,009,206 926,860 841,874
Subtotal Existing Debt i
$3,496,130 $3,463,424 $3,432,206 $3,399,860 2,438,874
**Utility Fund Pays Half of General Fund debt issuance
NEW UTILITY DEBT 2023/24 2024/25 2025/26 2026/27 2027/28
Sanford Expansion
Principal($68.5M) $0 $0 $0 $630,000 $660,000 *ends 2049
Interest 1,210,000 1,210,000 1,210,000 1,210,000 1,178,500
2023 Water GO Bond
Principal($3M) $0 $90,000 $95,000 $100,000 $105,000 *ends 2044
Interest 100,000 147,750 143,125 138,250 133,125
N.Harnett Co WWTP Exp(2023
GO Bond)
Principal($2M) $0 $60,000 $60,000 65,000 70,000 *ends 2044
Interest 66,667 98,500 95,500 92,375 89,000
N.Harnett Co WWTP Exp
Principal($50M) $0 $0 $0 1,206,841 1,267,183 *ends 2049
Interest 1,250,000 2,500,000 2,500,000 2,469,829 2,407,978
Harnett County Water District
Purchase
Principal($5M) $0 $0 104,762 110,000 115,500 *ends 2050
Interest - 125,000 247,381 242,012 236,374
Sanford Conveyance
Principal($68.5M) $0 $0 $0 $1,652,357 $1,734,975 *ends 2049
Interest - 3,422,897 3,422,897 3,422,897 3,340,279
Terrible Creek WWTP Exp/S.
Oaks PS
Principal($81.3M) $0 $0 $0 $0 2,111,233 *ends 2049
Interest - 4,064,675 4,064,675 4,064,675 4,064,675
1.5 MGD Tank(Near PSC)
Principal($7M) $0 $0 157,296 165,161 173,419 *ends 2049
Interest - 350,000 350,000 342,135 333,877
SRF Loan
Principal($35M) $0 $0 $0 $1,750,000 $1,750,000 *ends 2047
Interest - - - 236,833 385,700
1.5 MGD Tank(Near PSC)
Principal($8M) $0 $0 $0 $0 $0 *ends 2047
Interest - - - - 400,000
Principal $ - $ 150,000 $ 417,058 $ 5,679,359 $ 7,987,310
Interest 2,626,667 11,918,822 12,033,578 12,219,006 12,569,508
Subtotal New Utility Debt $ 2,626,667 $ 12,068,822 $ 12,450,636 $ 17,898,365 $ 20,556,818
TOTAL UTILITY DEBT $6,122,797 $15,532,246 $15,882,842 $21,298,225 $22,995,692
16

FIVE YEAR PLAN AND FUTURE ISSUES
In February of2021, the Town Board adopted a 2021-2025 Strategic Plan that identifies a vision,
mission, core values, and a number of objectives and initiatives that the Town should focus on
over the next five years. In addition, each department developed a departmental strategic
business plan identifying opportunities for advancing operational excellence, planning for any
anticipated legal or regulatory changes, and addressing the staffing and operating needs
associated with advancing the Town Strategic Plan and providing a high levelofservice to the
community as the region continues to grow and transform. The recommended FY2024-2028 Five
Year Plan balances the planned addition ofpersonnel, increased operating costs, and capital
investments against available revenues, and is able to continue the forward momentum on
accomplishing the goals outlined by the Town Board in the Strategic Plan.
Reasonable revenue assumptions were made to reflect anticipated growth in taxbase and user
fees. However, the cost of debt service and operations associated with opening new public
facilities comes at a cost that cannot be accommodated by tax base growth alone. For this
reason, a planned taxrate adjustment of3 centsisrecommended in yearl to offset debt service
and operating expensesforCommunityCenterNorth. Additionally,a 3.5 cent taxrate adjustment
is proposed for year 2 to offset debt service associated with advancing $23.7 million in voter-
authorized transportation bonds to construct 7 additional transportation projects over the next
two years, over and above the 9 projects already underway. This tax rate adjustment maybe
mitigated with taxbase growth and/or favorable borrowing conditions overthe next two years.
As the Town continues this "transformative" period, it remains necessary to focus on creative
means for generating revenue to complete some orallthe projects identified by the Board. The
Town continues to pursue the issuance of debt to finance some of the projects identified. With
the associated debt service, the Town may have to generate new revenues through several
different means, which include tax rate increases, grant awards, partnerships, and through tax
base growth. Aside from the major transportation, recreation, and utility infrastructure capital
projects identified by the Board, the following pages summarize the impact of the 2023-2024
operating budget on the Generaland Enterprise Fund Five-YearOperating and CapitalPlan:
GENERAL FUND FIVE YEAR PLAN SUMMARY
General Fund 5 Year Plan Revenues 2024 2025 2026 2027 2028
Ad Valorem Taxes $26,610,952 $28,398,951 $30,670,496 $32,804,964 $35,305,450
Tax Increase-Comm Center North(3 cents) 1,878,420 2,018,926 2,169,942 2,332,253 2,506,706
Tax Increase-Transportation Bond(3.5 cent) - 2,355,414 2,531,599 2,720,962 2,924,490
Tax Generated by Commercial/Retail - 202,500 432,000 624,000 624,000
Other Taxes 1,141,564 1,164,395 1,187,682 1,211,435 1,235,663
Sales and Use Taxes 11,634,177 12,099,544 12,944,362 13,038,104 13,571,644
Unrestricted Intergovernmental 2,187,480 2,231,230 2,275,854 2,321,371 2,367,799
Fire District Revenue 2,694,718 2,682,489 2,664,971 2,641,759 2,612,426
Fire Grant 273,952 150,249 311,760 730,218 382,462
Other Grants 224,480 224,480 224,480 224,480 224,480
Powell Bill 1,050,303 1,050,303 1,050,303 1,050,303 1,050,303
Permits and Fees 3,127,389 3,500,000 3,500,000 3,500,000 3,500,000
Sanitation Fees 4,033,753 4,235,440 4,447,212 4,669,572 4,903,050
Sales and Services 1,434,180 1,505,889 1,581,183 1,660,242 1,743,254
Investments 800,000 832,000 865,300 900,000 935,900
Miscellaneous 122,496 50,000 50,000 50,000 50,000
Loans/Bonds 13,978,000 7,915,000 - - 10,031,185
Transfers In - - - - -
Capital Reserve Support for Capital Projects 1,806,895 1,690,000 1,060,000 335,000 1,250,000
Fund Balance Appropriated
Powell Bill 182,198 297,197 28,197 212,205 117,197
General Fund - 9,000,000 - - -
Total Revenues $73,180,957 $81,604,007 $67,995,341 $71,026,868 $85,336,009
17

General Fund 5 Year Expenses 2024 2025 2026 2027 2028
Governing Body $545,233 $ 550,685 $ 556,192 $ 561,754 $ 567,372
Administration 1,005,604 1,045,828 1,087,661 1,131,168 1,176,414
Communications 517,745 532,213 547,093 562,398 578,140
Finance 1,022,058 1,058,094 1,095,475 1,134,252 1,174,480
Engineering 1,680,136 1,685,562 1,844,069 1,804,739 2,243,654
Public Buildings 730,725 693,828 719,371 745,893 831,960
Central Services 3,113,785 1,642,113 1,707,798 1,776,110 1,847,154
Information Technology 1,796,686 2,014,521 1,884,785 2,027,573 2,092,985
Human Resources 796,480 934,893 968,296 1,002,956 1,038,920
Police 10,635,454 11,511,577 12,608,983 13,668,913 14,874,642
Fire 8,912,827 9,421,021 10,531,455 12,016,324 12,537,579
Inspections 2,547,954 2,686,052 2,788,023 3,020,937 3,133,569
Streets 2,788,159 2,898,965 2,745,283 3,029,212 3,504,995
Powell Bill 1,232,500 1,347,500 1,078,500 1,262,508 1,167,500
Debris Collection 997,301 1,035,167 1,294,507 1,313,271 1,612,093
Sanitation 3,518,728 3,680,072 4,007,462 4,158,292 4,520,141
Planning 1,517,830 1,954,480 2,092,339 2,342,034 2,259,176
Economic Development 337,186 350,673 364,700 379,288 394,460
Downtown Development 414,250 430,820 448,053 465,975 484,614
Parks and Recreation 5,708,453 6,062,896 6,456,496 6,873,387 7,255,477
Arts Center 1,063,846 1,055,207 1,103,725 1,137,829 1,831,584
Subtotal $ 50,882,940 $ 52,592,169 $ 55,930,268 $ 60,414,813 $ 65,126,909
Existing Debt $ 3,793,240 $ 3,698,267 $ 3,596,050 $ 3,402,782 $ 3,048,391
New Debt 793,564 4,158,773 5,074,023 4,964,273 4,854,523
Transfers 295,000 295,000 295,000 295,000 295,000
Capital Projects 2,026,895 11,360,000 3,100,000 1,950,000 1,980,000
Bond Capital Projects 13,978,000 7,915,000 - - 10,031,185
ApprotoFB-GF 1,411,318 1,584,798 - - -
Total Projected Expense $73,180,957 $81,604,007 $67,995,341 $71,026,868 $85,336,009
Total Projected Revenues $73,180,957 $81,604,007 $67,995,341 $71,026,868 $85,336,009
Revenues Over(Under)Expenses $0.00 $0.00 $0.00 $0.00 $0.00
Impact on Unassigned General Fund Balance
Estimated Beginning Fund Balance 30,028,187 31,439,505 24,006,534 24,006,534 24,006,534
Change in Fund Balance 1,411,318 (7,432,971) - - -
Estimated Ending Fund Balance $31,439,505 $24,006,534 $24,006,534 $24,006,534 $24,006,534
18

UTILITY 0 PERATING FUND FIVE YEAR PLAN SUMMARY
2023-2024 2024-2025 2025-2026 2026-2027 2027-2028
Enterprise Revenues
Water Sales $8,783,590 $11,162,371 $13,140,462 $15,432,555 $18,085,525
Water Sales(Rate Increases) 1,756,717 1,339,484 1,576,855 1,851,906 904,276
Water Tap Fees 515,250 515,250 472,000 472,000 472,000
Water Meter Sales 75,000 75,000 75,000 75,000 75,000
Interest Earnings 300,000 149,278 214,365 254,902 252,515
Penalties 165,000 165,000 165,000 165,000 165,000
Misc.Revenue-Leases and Insurance 150,000 80,000 80,000 80,000 80,000
Sewer Sales 9,155,880 11,864,404 14,188,863 16,900,346 20,058,264
Sewer Sales(Rate Increases) 1,831,175 1,423,728 1,702,663 2,028,041 1,002,913
Sewer Tap Fees 167,550 167,550 167,550 167,550 167,550
Sewer Pre-Treatment Fees 1,800 1,800 1,800 1,800 1,800
Operating Fund Reserve Appropriation - - - - -
Total Revenues $22,901,962 $26,943,865 $31,784,558 $37,429,100 $41,264,843
2023-2024 2024-2025 2025-2026 2026-2027 2027-2028
Enterprise Expenditures
Operations 13,386,755 14,147,567 14,994,316 15,819,737 16,998,005
New Positions 195,000 195,000 170,600 474,000 335,000
Capital Equipment 493,000 329,000 452,000 625,000 485,000
Transfer to Capital Projects 1,403,063 4,967,411 4,523,833 3,855,230 8,988,021
Transfer to Debt Service 1,595,440 10,598,581 10,817,419 14,350,472 16,033,793
Designated for Fund Balance 228,039 - - - -
Total Expenditures $17,301,297 $30,237,559 $30,958,168 $35,124,439 $42,839,819
Revenue Over(Under)Expenditures $5,600,665 ($3,293,694) $826,390 $2,304,661 ($1,574,976)
Estimated Beginning Fund Balance $ 8,489,214 $ 14,089,879 $ 10,796,185 $ 10,796,185 $ 11,622,575
Change in Fund Balance 5,600,665 (3,293,694) 826,390 2,304,661 (1,574,976)
Estimated Ending Fund Balance $ 14,089,879 $ 10,796,185 $ 11,622,575 $ 13,100,846 $ 10,047,599
19

CONCLUSION
The FY 2023-2024 budget proposal operationalizes the goals for the Town of Fuquay-Varina
established by the Mayorand Board ofCommissioners. The services,programs,and facilityneeds
prioritized by the Board's Strategic Plan are addressed in this budget. In addition, basic services
have been maintained and, in some cases, enhanced.
Further,thisyear'sbudgetplan continuesto focus on the fmancialstabilityofthe Town,even while
making generational investments in provision of long-term water and wastewater capacity,
recreationaland transportation facilities, and enhancing police and fire protection. This means
planning for operations whereby expenses do not exceed revenues, fund balance is utilized
strategically and re ma ins healthy, core services re ma in the focus, and the budgeting philosophy
continues to be conservative. This did not happen without the support ofstaff, the willingness of
Department Directors to prioritize and make cuts to welljustified requests when necessary, and
the creativity that is required to provide quality and enhanced services in a timely and effective
manner. As mentioned earlier, this budget was developed with the top priorities being planning
for and securing the Town's future and investing in recruitment and retention of staff, and I
commend all Department Directors for prioritizing budget requests to ensure we can advance
these top priorities.
I am very excited about the coming fiscal year, and I am confident this budget sets out to
accomplish many of the goals established by the board at the Strategic Planning Retreat and
outlined in the 2021-2025 Strategic Plan. Ialso want to extend my thanks to Town Department
Directors, JoAnne Crabtree and herdepartmentalstaffforconcentrated and specific assistance
in budget preparation especially Budget and Fiscal Strategy Manager Katherine Lumb, to the
Assistant Town Managers (Mark Matthews and Jim Seymour) for their contributions toward the
development ofthe budget, and to each Town Board member for the many hours ofdiscussion,
consultation, and guidance provided to me to produce a budgetthatreflectsthe collective best
judgment asto moving forward to accomplish the many tasks, goals, and services that the Town
Board wants to achieve in the coming fiscalyearand beyond.
While this b udg e t is p rop o se d by the Town Manager,it isneitherfinalnorisitnecessarilya reflection
ofwhat willbe adopted by the Board ofCommissioners. The Mayorand Town Commissioners will
review the recommendationsto arrive at whatitconsidersthe properexpenditure ofthe available
revenues forthe upcoming year.
Respectfully submitted,
Adam G. Mitchell
Town Manager
20

Mayor and Board of Commissioners
Contact information:
134 N. Main Street, Fuquay-Varina, NC 27526
919-567-3907
Mayor Blake Massengill Mayor Pro Tem Larry Smith
[e-mail] [e-mail]
Term Expires: 12/25 Term Expires: 12/23
Occupation: Owner, Massengill ( ~'' Occupation: Retired
Design Build � Law Enforcement Official
kit
Commissioner Marilyn Gardner Commissioner Bill Harris
[e-mail] [e-mail]
Term Expires: 12/23 Term Expires: 12/23
Occupation: Realtor, Century Occupation: Retired, NCDHHS
21 Triangle Group
V
t4Y ti
Commissioner Bryan Haynes
[e-mail]
Term Expires: 12/25
Occupation: Entrepreneur,
Associate Minister
i
21

FUQUA'r'-\/AR ! NA
north carolina
Town Administration
Adam G. Mitchell (919.552.1401) Town Manager
Mark Matthews (919.552.1412) Asst.Town Manager
Jim Seymour (919.567.3919) Asst. Town Manager
Teresa Wilder (919.567.3907) Executive Assistant
Rose Rich (919.552.1403) Town Clerk
James Adcock (919.552.2929) Town Attorney
Department Directors
JoAnne Crabtree (919.552.1438) Finance
Susan Weis (919.552.1417) Communications
Tiffany McNeill (919.753.1031) Economic Dev.
Wendy Moody (919.567.3908) Human Resources
Brandon Medina (919.552.1416) Police Chief
James Jones (919.552.0422) Fire Chief
Michael Wagner (919.567.3911) Public Utilities
Tracy Stephenson (919.552.1402) Public Works
Pam Davison (919.753.1870) Planning
Chris Hinnant (919.552.1413) Inspections
Matthew Poling (919.753.1039) Engineering
Scott Clark (919.567.3900) Information Tech.
Jonathan Cox (919.552.1431) Parks & Recreation
Maureen Daly (919.567.3909) Arts Center
134 N. Main Street
Fuquay-Varina, North Carolina 27526
www.fuquay-varina.org
[phone]
22

TOWN ORGANIZATION CHART
Citizens of Fuquay-Varina
Total FTE Positions(FY 24):368
Town Attorney Mayor and Board of Commissioners
Town Manager- 1 FT
I I I
Administration-2 FT Assistant Town Manager- 1 FT Assistant Town Manager- 1 FT
Clerk(Governing Board)-1 FT
Administrative Support-1 FT Finance- 12 FT
Information Tech.-8 FT Economic Development-2 FT
Finance Director-1 FT _
Asst.Finance Director-1 FT IT Director-1 FT Economic Dev.Director-1 FT
Budget Manager-1 FT Assistant IT Director-1 FT Downtown Dev.Manager-1 FT
Human Resources-4.5 FT Purchasing Manager-1 FT System Administrator-1 FT
Payroll Administrator-1 FT IT Support-3 FT -
Human Resources Director-1 FT Customer Service-4 FT GIS Coordinator-1 FT
W HR Analyst-2 FT Billing and Collections-2 FT GIS Technician-1 FT Planning and Zoning- 13 FT
Safety/Risk Manager-1 FT Finance Support-1 FT
Administrative Support-0.5 FT Planning Director-1 FT
Asst.Planning Director-1 FT
Parks and Rec.-39 FT Senior Planners-2 FT
Planning Resources-5 FT
Arts Center-4 FT Planning Support-1 FT
Communications-2 FT PR&CR Director-1 FT - Development Liaison-1FT
Assistant PR&CR Director-2 FT Arts Center Director-1 FT Code Compliance-2 FT
Communications Director-1 FT Recreation Superintendent-1 FT Arts Center Program Specialist-1 FT
Comm./Marketing Specialist-1 FT Comm.Center Administrator-2 FT Arts Center Special Events
Athletics-5 FT Coordinator-1 FT Inspections-21 FT
Programming-3 FT Audio/Video Technician-1 FT
Police-83 FT Inspections Director-1 FT
PR&CR Support-2 FT
Grounds Superintendent-1 FT Inspections Supervisor-2 FT
Police Chief-1 FT Inspectors-11 FT
Police Captain-3FT Grounds Maintenance-17 FT Plan Review-4 FT
Public Buildings
Sworn Officers-69 FT Inspections Support-3 FT
Telecommunicators-5 FT Superintendent-1 FT
Accreditation Specialist-1 FT Public Buildings-4 FT
Non-Sworn Staff-4 FT
Public Works-47.5 FT Engineering-11.5 FT Public Utilities-39.5 FT
LFire-76 FT Public Works Director-1 FT
Streets Superintendent-1 FT Engineering Director-1 FT Utilities Director-1 FT
Fire Chief-1 FT Asst.Engineering Director-1 FT Assistant Utilities Director-1 FT
Streets-14 FT
Div.Fire Chief-1 FT Staff Engineer-2 FT
Debris-8 FT Operationsp Supervisor-1 FT
Fire Operations-69 FT Environmental Prog Coord-1 FT Utilities Engineer 2 FT
Sanitation Superintendent-1 FT 9
Fire Inspections-3 FT Engineering Inspections Supervisor -1 FT Water Resources-18 FT
Sanitation-22 FT
Administrative Support-2 FT Administrative Support-0.5 FT Engineering Inspectors-5 FT Wastewater Resources-16 FT
Administrative Support-0.5 FT Administrative Support-0.5 FT

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13.1 miles of developed community ! WI-
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footprint and 11,567 households -
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One of North Carolina's fastest
PROFILE / growing communities
A�Du �
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Fuquay-Varina is one of the fastest-
growing communities in North Carolina. •
With its strategic location near world- Chapel Hill T. R b '
famous Research Triangle Park, Raleigh,
,,
Durham, and Chapel-Hill, the Town
Cary• • el h
of Fuquay-Varina offers companies a
skilled, qualified, and diverse talent p• • , sa FUT'E
lower cost of doing usiness; and solid ' Ap. •
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arne
infrastructure, all dis 'nctive advantages pr
for companies and investors to thrive. 0 S
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1 V

POPULATION CHARACTERISTICS
Fuquay-Varina Population Growth (1970 — 2021)
40,000
35,000 Population Growth
30,000930/: (2011 -2021) 36,017
34,152
25,000 Id
20,000
15,000 22,833
17,937
7,898
10,000 3,576 3,100 3,746 4,447 5,389 12,207
5,000
0 i I I I I I 1
1970 1980 1990 2000 2010 2020 2021
1 NC Office of State Budget Management-State Demographer
Age & Gender Retail & Trade Statistics'
(Driving distance to downtown)
• •
ter • 53% •
• 47% <5 Minutes <_10 Minutes <_20 Minutes
Female Male 2022 Population 82,261 215,392 935,551
37 Daytime Population 66,921 169,974 967,391
Median Age Median HH Income $99,392 $103,133 $88,246
Number of Households 28,930 76,071 357,560
1 ESRI forecasts for 2022
TRANSPORTATION
31 MINUTES i0i Bus
ikrAverage daily commute to work Fuquay-Varina/Raleigh Express Service(FRX)
Monday through Friday. www.gotriangle.org.
Air Rail
29 MILES / 32 MINUTES tin Freight service is provided by Norfolk Southern
Corporation. www.nscorp.com. Amtrak offers
Drive time to RDU Airport from Fuquay-Varina
passenger service at two stations in Wake
County. www.ncbytrain.org.
Select Hubs and International Flights Include:
• Atlanta • Houston • San Antonio
• Austin • Las Vegas • San Diego
• Boston • London • San Francisco r
• Cancun • Los Angeles • Seattle a
• Charlotte • Miami • Toronto• Chicago • New York • Washington, DC FUQUAY-VARINA'S
• Dallas • Paris
• Denver • Philadelphia NOTABLE
Learn more about air transportation at www.rdu.com. CORPORATIONSle Q .

OUR LOCATION
A I
Duke University NC State
36 miles University
At
20 miles
ra
NC Mountains I
3 hours UNC Chapel Hill //
33 miles FUQU/-\Y-VAR!NA
Downtown
Raleigh
17 miles
itijir
Research
Triangle Park RDU Intl!
29 miles Airport NC Beaches
29 miles 2.5 hours
WORKFORCE
Labor Force' Educational Attainment2
Fuquay-Varina
(20 mile radius) 484,938 13% 46% 93%
Wake County ■ 633,454
• % • % •
Master's Bachelor's High School
Raleigh Cary MSA Degree Degree Diploma
(Metropolitan Statistical Area) 776,149
1 Local Area Unemployment Statistics—February 2023
2 U.S.Census Bureau,2021 American Community Survey 5-Yr Estimates,Educational Attainment
'aleigh-Durham CSA 1,190,747
(Combined Statistical Area)
North Carolina 5,165,808
Fuquay-Varina is home to companies representing an array of industries including: advanced manufacturing,
business and financial services, brewery manufacturing, information and technology, and clean tech.
] 71 u= HARD WORK:
fV'ThiIi1r Berk-lbk I aLEVI 1 - 1 �1;;' DONE RIGHT.
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Fidelity I n Se ry Right By You' JOHN DEERE
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26

4,11
EDUCATION EDUCATION • . . 4
- , \1
MORE THAN 'IV
K-12 Education `
180,000 -
• 159,000 students attend one of students enrollee
1111•e• Wake County's 192 Public Schools. colleges and universitie 1
IMMINII
W21,436 students attend one of
Wake County's 102 Private Schools. TAXES & UTILITIES
Source:Wake County Public School System(www.wcpss.net)and North Carolina Department of
Administration's Division of Non-Public Education(ncadmin.nc.gov)School Years 2022-2023
State and Local Taxes
Fuquay-Varina is part of the award-winning Wake County
Public School System. Fuquay-Varina residents have easy 4.75% Personal Income Tax Property Tax
access to: 2.5% Corporate Tax $0.425 Fuquay-Varina
7.25% Sales Tax $0.619 Wake County
/Q` 11 Public Schools
III m $1.044 Total*
iii ' .:: 2 Charter/Private Schools
Utilities *Per$100 of assessed value.
Electric Gas Telecommunications
Higher Education Duke Energy Dominion Energy AT&T Ting
g CenturyLink Verizon
Water and Sewer Spectrum
As part of the Research Triangle Region, Fuquay-Varina Town of Fuquay Varina'
residents and businesses have easy access to nine
1 Current water capacity=7.25 million GPD. /Current sewer capacity=5.6 million GPD.
four-year colleges&universities, including three Tier 1 The Town is under design to expand both capacities.
research universities, three of the nation's historically DEVELOPMENT ACTIVITY
black colleges and universities, North Carolina Central
University, Shaw University, and St. Augustine's RESIDENTIAL BUILDING PERMITS ISSUED
University as well as private institutions like Campbell (NEW STARTS, BY YEAR)
University. Wake Technical Community College, one of o
the state's high-performance community colleges, is 2000- CO
located within 5 miles of the Town of Fuquay-Varina.
co
.1� THE UNIVERSITY Duke
NC STATE UNIVERSITY of NORTH CAROLINA 1500—
. 110 at CHAPEL HILL UNIVERSITY
I
1000 CO
-
NC State, UNC and Duke combine to conduct N cmco BILLION in research every year Lo 0 g
T U'
LO W.
500- SQ li cif• Wake Tech is North Carolina's largestIII
AK community college, serving over
WW 70,000 adults annually. ° '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Tiffany McNeill,CEcD Fuquay-Varina Town Board
// Economic Development Director Mayor Blake Massengill
[e-mail] Mayor Pro Tern Larry Smith
r_IU Q i ^Y_`/^ R 1 A ' ^ 919-753-1031 Commissioner Marilyn Gardner
I �,`'�,J/\ /\r I\/\ 134 N. Main Street Commissioner Bill Harris
north corolina Commissioner Bryan Haynes
Fuquay-Varina, NC 27526
www.buildinfv2,,com

The Story of \,\
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Fuquay
Fuquay-Varina, first known as "Piney Woods," acquired her unusual names from the fates of
history. Among the early land grant families were the Burts, Joneses and Rowlands, but it was
a French veteran of the Revolutionary War named William Fuquay who moved his family to the
exact site, purchasing 1,000 acres of Jones Land in 1805.
While plowing a field, circa 1858, William's son Stephen or grandson David Crockett
uncovered a mineral spring. "Taking the waters" became an attraction for people with all types
of physical ailments, leading to the annual celebrations at the spring on Easter Monday and
the Fourth of July. Conveniently, the early timber rail provided a ready means of transportation
while hotels, catering to long term visitors, surrounded the spring.
Varina
During the Civil War, a young soldier named Ballentine, born just south of the spring, received
morale-boosting letters signed with the pen name "Varina." He later looked up the Fayetteville
lady, married her and brought her to live at his homeplace. Continuing to call her Varina, he
named his post office and mercantile establishment across from the mineral spring for her. When
two timber rail lines crossed nearby, "Varina Station" was born.
In the early 1900's tobacco farmers, fleeing the Granville wilt devastating their crops, began
migrating into Southern Wake County. Their "golden weed" fostered a large commercial
tobacco market. Railroads flourished and traffic flowed along Main Street in Fuquay Springs
and around the Broad Street station, now known simply as Varina.
Fuquay-Varina
Fuquay Springs, incorporated in 1909, joined the neighboring community of Varina in 1963 as
one municipality. Since that time, Fuquay-Varina has become one of the fastest growing small
towns in North Carolina. The town with the hyphenated name and 2 historic districts has been
able to successfully retain its small town charm while successfully adding modern amenities and
rewarding business opportunities that have attracted residents from all over the United States.
FUQ JAY-VA R 1 N4 FY 2024 BUDGET
28

FUQU4' -\/4R ! NA
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Strategic
Plan
2021 -2025
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Vision Statement
Fuquay-Varina is a dynamic, inclusive, and caring community that provides
exceptional service while offering economic opportunity, sense of place, and
an unmatched quality of life.
Mission Statement
The Town of Fuquay-Varina will improve quality of life by developing and maintaining robust
infrastructure, committing to environmental and fiscal sustainability, fostering economic and
cultural opportunities, providing safety and security, and delivering exceptional municipal
services, all while continuing to be a dash more.
core Values
• Effective Government and Governance
• Fiscal Strength
• Safety and Security —
• Economic Vitality
• Preserving Character and Identity
• Quality of Life YP',
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Effective Government and Governance
Provide exceptional customer service while enhancing citizen engagement.
1. Develop a town-wide customer service training program tailored for employees.
2. Promote transparency and 24/7 access to user-friendly information.
3. Develop and utilize a community engagement solution.
Advance operational efficiency and effectiveness by improving internal business processes
and integrating technology solutions.
1. Implement a GIS-integrated work order management system.
2. Implement a project management system for development review and Town projects.
3. Maintain robust and reliable technology infrastructure through continued investment.
Recruit, retain, and develop skilled, knowledgeable, motivated, and public service-oriented
Town staff.
1. Maintain a competitive compensation and benefits package through compensation studies and peer
benchmarking.
2. Provide internal and external professional development opportunities.
3. Develop a strategy to recruit and retain a diverse and highly qualified workforce while fostering an inclusive
workplace culture.
31

rpu
QUA%
RINA
• .
Fiscal Strength
Maintain and improve the Town's bond rating.
1. Provide financial policies and procedures that yield appropriate internal controls and management.
2. Maintain a healthy fund balance consistent with or better than prescribed by policy.
3. Foster non-residential tax base growth.
Leverage grant opportunities and partnerships to increase return on investment.
1. Pursue Federal and State grant funding for transportation improvements.
2. Support efforts to increase NCDOT investment in improvements and maintenance of state roads in and around
Fuquay-Varina.
3. Seek County, State, and Federal environmental grants to leverage further investment in recreational
improvements.
Ensure fiscal sustainability and resilience through effective long term financial planning.
1. Adhere to debt ratios in accordance with Town financial policies.
2. Adopt a Five-Year Operating and Capital Plan aligning with forecasted revenues.
3. Perform preventive maintenance and plan lifecycle replacement of facilities and infrastructure consistent with
industry norms.
32

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Safety and Security
Cultivate a safe and inclusive community.
1. Nurture and enhance meaningful relationships built on trust and understanding with the community.
2. Implement a comprehensive recruiting plan that reflects commitment to a diverse public safety workforce.
3. Reduce Part 1 (violent and property) crimes in the Town.
Apply innovation and technology to enhance public safety.
1. Utilize data and statistics to develop strategies to reduce crime and fire code violations.
2. Invest in technology infrastructure, training, and practices to reduce the risks of cybersecurity threats.
3. Implement an Integrated Traffic Signal (ITS) system to improve transportation safety and mobility.
Invest in public safety facilities and infrastructure.
1. Install security cameras at all Town parks and major facilities.
2. Invest in water quality infrastructure and increase water capacity to accommodate long-term needs of water
customers.
3. Construct and open Fire Station No. 4, while also planning for future public safety facility needs to align
with Town growth.
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Economic Vitality
Maintain a growing economy by providing the necessary infrastructure to support short,
medium, and long-term growth.
1. Identify areas of interest, consistent with the adopted land use plan, where infrastructure expansion can
support non-residential private investment.
2. Appropriate funding and seek financing for infrastructure projects in targeted growth areas.
3. Participate in public infrastructure to leverage private sector investment that promotes urban development
and living.
Provide supportive land use planning and development regulations.
1. Proactively engage development community to promote non-residential land uses.
2. Ensure development ordinances adequately address non-residential adaptive reuse.
3. Preserve industrial and employment center land identified in the adopted land use plan for non-residential
development.
Promote Fuquay-Varina as a destination for investment to support diverse growth and
sustainability.
1. Identify and recruit specific retail, commercial, and medical services that are important to the community.
2. Recruit a manufacturing user (or users) to the Fuquay-Varina Business Park.
3. Partner with local organizations to develop entrepreneurship.
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Preserving Character and Identity
Prioritize community design and character through effective land use planning policies.
1. Continually update land use development policies to reflect community needs and aspirations.
2. Identify unique, historical, environmental, or cultural elements that can be expanded upon to create a
sense of identity and place.
3. Develop multi-modal (pedestrian-friendly) systems that connect neighborhoods to public and private
assets.
Encourage the development community to integrate natural landscape, site, and character
conditions into new development.
1. Encourage developers to preserve existing natural land features into proposed development.
2. Ensure neighborhoods consist of quality housing products with integrated non-residential uses.
3. Encourage the preservation of natural landscapes and incentivize retention of existing vegetation in
proposed residential development.
Partner with local, regional, and state organizations to promote community heritage and
preservation.
1. Increase public awareness and appreciation of the Town's historic resources through education and
outreach.
2. Work cooperatively with preservation partners to identify historic landmarks and guide property owners
towards preservation.
3. Encourage the renovation and re-use of downtown historic properties.
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Quality of Life
Offer diverse and inclusive recreational and cultural programming.
1. Expand active adult programming to support the health of active adults with diverse interests and lifestyles.
2. Expand environmental programming and education at Town nature and passive parks.
3. Develop outdoor cultural arts and historical programming to be provided at Town park sites.
Develop recreational facilities that are in geographic proximity to all residents.
1. Acquire property and develop active recreation facilities to accommodate growth in youth and adult
programs.
2. Develop greenways and passive recreation assets to connect neighborhoods with destinations.
3. Construct additional town park amenities and make facility improvements to enhance user experience.
Develop a creative and artistic identity for downtown and the Town as a whole.
1. Fully develop a public art program in collaboration with stakeholders.
2. Build on the success of the FM2FV concert series by developing additional elements to existing and new
events.
3. Partner with downtown stakeholders to develop mutually beneficial and cross-promotional opportunities.
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36

Strategic Plan Development Process Overview
CURRENT CONTEXT AND BENEFIT OF STRATEGIC PLANNING
Developing a strategic plan clearly identifies the governing body's priorities, aligns resources
and work plans with the board's vision, and provides the capacity to adapt to short term realities
while pursuing and evaluating progress on long term goals.
At the 2020 Town Board Retreat, Town Management facilitated an exercise in which the Town
Board identified current and future trends likely to have a high impact on the future of Fuquay-
Varina through a Strategic Foresight exercise. In addition, the Town Board crafted the Town's
Vision and Mission statements and Core Values. The Board then identified a number of specific
goals and objectives that informed Budget and Five-Year Financial Plan development along with
Town Management and departmental work plans.
While budgets and workplans reflect the individual and collective priorities of the Town Board,
the benefit of formal Strategic Planning is providing a clear and collective focus to guide resource
allocation and policy development. Additionally, strategic planning allows the Town Board to set
the direction, clearly communicate that direction and priorities to Town staff and the community,
and provide shared understanding and accountability around common values, goals, and
objectives. As the Town faces current and new challenges and opportunities, strategic planning
provides a framework for the Town to envision achievable goals informed by data and history,
enact plans and allocate resources to achieve these goals, and evaluate progress towards
meeting the goals.
The high impact, high certainty trends likely to affect the Town of Fuquay-Varina included:
• Nanotechnology • Decentralization of Manufacturing
• Global Digital Currency and 3D Printing
• Technology-Enabled Health Care • Sustained Trust in Local
• Less Affordable Housing Government
• Energy Grid Disruption • Increased Automation
• Declining Birth Rates • Nomadic Workforce
• Tribalism and Identity Politics • Increased Prevalence of Severe
• Citizen Engagement Weather Events
• More Digital Citizens • Rural vs Urban
• More Diverse Demographics • Mass Migration
FUQU/\Y-\/AR 1 NA FY 2024 BUDGET
37

ENVISION:DEVELOPMENT OFA STRATEGIC PLAN
The first step in developing a strategic plan is imagining and agreeing on a desired vision
for Town. As the Town Board sets the vision, they will need to be champions of this
process and active participants for any strategic plan to have a strong foundation. An
open discussion around a vision and preferred future will help uncover common
aspirations for the community, along with common concerns that may warrant specific
focus moving forward.
A vision statement should be aspirational and reflect a shared sense of where we want
to go as a community and/or organization.
Fuquay-Varina is a dynamic, inclusive, and caring community that provides
exceptional service while offering economic opportunity, sense of place, and an
unmatched quality of life.
A mission statement describes what the organization will do to contribute to this vision.
In a municipal strategic planning context, it is common to have a vision statement that is
more broadly community focused, while the mission statement describes what the town
government will do to contribute to that vision.
The Town of Fuquay-Varina will improve quality of life by developing and
maintaining robust infrastructure, committing to environmental and fiscal
sustainability, fostering economic and cultural opportunities, providing safety
and security, and delivering exceptional municipal services, all while continuing
to be a dash more.
A value statement defines a core value or priority that informs and/or advances the
mission statement. Towns typically identify 4-6 core values. It is common for a number of
strategic goals or objectives to be associated with each core value.
• Effective Government and Governance
• Fiscal Strength
• Safety and Security
• Economic Vitality
• Preserving Character and Identity
• Quality of Life
Once the Town Board has adopted a vision, mission, and 4-6 values, the next step was
to identify objectives and initiatives to further each goal. The vision, mission, and core
values of the Town would not typically change on a year-to-year basis but could be
updated as part of a future Strategic Plan update or if there is a significant shift in the
vision of the Town Board. Strategic objectives typically reflect a multi-year effort to
advance a core value of the board. An objective will often have multiple initiatives that
EUQUAY-\'AR i NA FY 2024 BUDGET
38

reflect one-year or multiple-year efforts to accomplish an objective as part of the budget
and/or departmental work plans.
A Senior Management Team was tasked with developing 3 key objectives which
align with each value adopted by the Town Board. Assistant Manager Matthews and
Assistant Manager Seymour facilitated strategic planning with teams of department
heads most involved in the work centered on each specific value. These strategic
planning "value teams" also identified the most important current or planned initiatives
that advance each objective. In many cases, these key initiatives were items already
advanced by the Town Board from the Board Strategic Planning Retreat and/or in the
approved Budget and Five-Year Financial Plan.
Once the proposed objectives and initiatives were developed by the Senior
Management Team and reviewed by the Town Manager, they were presented to the
Town Board for consideration. This consideration and discussion took place during the
2021 Town Board Strategic Planning Retreat. The plan was formally adopted by the
Town Board at its February 16, 2021 meeting.
CIVHI,I HIVU C✓ALUH I t:LJ H,-K 1 1vICIV 1/AL.D i KHTEGIC PLAN.
Departmental activities are responsible for implementing any strategic plan.
Departmental strategic plans were drafted in FY 2021 in parallel with the Town's
organization wide strategic plan and were refined and updated during FY 2022 as
part of the FY 2023 budget process, again during the FY 2024 budget process,
and will always be an important part of budget development. They were also
used as the foundation for Departmental Profiles found later in this document. These
strategic plans align with the organization wide strategic plan but are also more
inwardly focused and specific to the operational advancement of the department.
How departmental activities align with the Town's strategic plan is summarized in
the chart on pages 44-45.
Department Profiles include a vision and mission statement, as well as departmental
goals, objectives, and measures. The goals noted in each department are one of the
townwide goals adopted by the Town Board. The Profile includes budget appropriation
and staffing resource information as well as significant service level changes and fiscal
year initiatives that provide context to the resource information. Finally,
major accomplishments show progress on prior year initiatives or successful
accomplishment of unexpected opportunities or resolution of unforeseen challenges
the department experienced in the prior fiscal year. The FY 2023 Adopted Budget
book included the department's initial draft of these Profiles, as with any good
performance measurement / management plan, it is expected that they will be revised
as objectives are met, better measures are found, and Town and departmental
strategic goals are updated.
REASSESS AND REVISE:ANNUAL BOARD kc TREATS
Beginning this year and in future years, a core element of the Strategic Planning Retreat
is a progress report by Town Management on successes and gaps in advancing the
adopted objectives and initiatives for the past year, followed by Board discussion on new
EUQUAY—\/AR I NA FY 2024 BUDGET
39

or revised objectives and/or initiatives for the coming year. This process provides great
value in informing budget development and staff work plans for the coming year. The
progress report provided to the Town Board at its February 2023 retreat immediately
follows this overview.
1
• Revise 1 I • Board
Strategic Plan Strategic
as Goals Foresight
Accomplished Exercise
Reassess Envision l
Evaluate Enact
[ •
• Department - Department
Performance Strategic Plans
Measures
l ,
FUQUAY-\/AR I NA FY 2024 BUDGET
40

Strategic Plan Progress Report
Core Value Objective Initiative Progress
Effective 1. Provide exceptional 1. Develop a town-wide customer service training program
Government customer service while tailored to employees. 151
and Governance enhancing citizen 2. Promote transparency and 24/7 access to user-friendly
ED
engagement. information on the Town website.
3. Develop a community engagement solution.
151
2. Advance operational 1. Implement a GIS-integrated work order management
151
efficiency and effectiveness system.
by improving internal 2. Implement a project management system for development III
business processes and review and Town projects. dill
integrating technology
10
solutions. 3. Maintain a robust and reliable technology infrastructure
through continued investment.
3. Recruit, retain, and 1. Maintain a competitive compensation and benefits package
develop skilled, through compensation studies and peer benchmarking. El
knowledgeable, motivated, 2. Provide internal and external professional development
10
and public-service oriented opportunities.
Town staff.
3. Develop a strategy to recruit and retain a diverse and highly
qualified workforce while fostering an inclusive workplaceEl
culture.
Core Value Objective Initiative Progress
Fiscal Strength 1. Maintain and Improve 1. Provide financial policies and procedures that yield
ED
the Town's Bond Rating. appropriate internal controls and management.
2. Maintain a healthy fund balance consistent with or better
than prescribed by policy. el]
3. Foster nonresidential tax base growth.
ED
2. Leverage grant 1. Pursue Federal and State grant funding for transportation
El
opportunities and improvements.
partnerships to increase 2. Support efforts to increase NCDOT investment in
return on investment. improvements and maintenance of state roads in and aroundEEI
Fuquay-Varina.
3. Seek County, State and Federal environmental grants to
EEI
leverage further investment in recreational improvements.
3. Ensure fiscal 1. Adhere to debt ratios in accordance with Town financial
rEl
sustainability and resilience policies.
through effective long term 2. Adopt a Five-Year Operating and Capital Plan aligning with
El
financial planning. forecasted revenues.
3. Perform preventative maintenance and plan for lifecycle
replacement of facilities and infrastructure consistent withEEI
industry norms.
IN CO l
Completed Ongoing In progress
41

Core Value _Objective Initiative Progress
Safety and 1. Cultivate a safe and 1. Nurture and enhance meaningful relationships built on trust
Security inclusive community. and understanding with the community. El
2. Implement a comprehensive recruiting plan that reflects
commitment to a diverse public safety workforce. 11111
3. Reduce Part 1 (violent and property) crimes in the Town.
rgl
2. Apply innovation and 1. Utilize trend data and statistics to develop strategies to
ra
technology to enhance reduce crime and fire code violations.
public safety. 2. Invest in technology infrastructure, training, and practices to
reduce the risks of cybersecurity threats.
3. Implement an Integrated Traffic Signal (ITS) system to
improve transportation safety and mobility. rid,
3. Invest in public safety 1. Install security cameras at all Town parks and major
facilities and infrastructure. facilities.
2. Invest in water quality infrastructure and increase water
capacity to accommodate long-term needs of waterEa
customers.
3. Construct and open Fire Station No. 4, while also planning
for future public safety facility needs to align with Town dill
growth.
Core Value Objective Initiative Progress
Economic 1. Maintain a growing 1. Identify areas of interest, consistent with the adopted land
Vitality economy by providing the use plan, where infrastructure expansion can support nonEl
-
necessary infrastructure to residential private investment.
support short, medium, 2. Appropriate funding and seek financing for infrastructure
El
and long-term growth. projects in targeted growth areas.
3. Participate in public infrastructure to leverage private sector
investment that promotes urban development and living.
2. Provide supportive land 1. Proactively engage development community to promote
use planning and non-residential land uses.
development regulations. 2. Ensure development ordinances adequately address non-
residential adaptive reuse. 51
3. Preserve industrial and employment center land identified
in the adopted land use plan for non-residential development. 151
3. Promote Fuquay-Varina 1. Identify and recruit specific retail, commercial, and medical
as a destination for services that are important to the community. ed
investment to support 2. Recruit a manufacturing user (or users) to the Fuquay-
151
diverse growth and Varina Business Park.
sustainability.
3. Partner with local organizations to develop
ED
entrepreneurship.
1511 El "
dill
Completed Ongoing In progress
42

Core Value _Objective Initiative Progress
Preserving 1. Prioritize community 1. Continually update land use development policies to reflect
El
Character and design and character community needs and aspirations.
Identity through effective land use 2. Identify unique, historical, environmental, or cultural
planning policies. elements that can be expanded upon to create a sense ofIiii3
identity and place.
3. Develop multi-modal (pedestrian-friendly) systems that
CO
connect neighborhoods to public and private assets.
2. Encourage the 1. Encourage developers to preserve existing natural land
development community features into proposed development. Ell
to integrate natural 2. Ensure neighborhoods consist of quality housing products
CB
landscape, site, and with integrated non-residential uses.
character conditions into
new development. 3. Encourage the preservation of natural landscapes and
incentivize retention of existing vegetation in proposedED
residential development.
3. Partner with local, 1. Increase public awareness and appreciation of the Town's
EiEl
regional, and state historic resources through education and outreach.
organizations to promote 2. Work cooperatively with preservation partners to identify
community heritage and historic landmarks and guide property owners towardsCB
preservation. preservation.
3. Encourage the renovation and re-use of downtown historic
properties. El
Core Value Objective Initiative Progress
Quality of Life 1. Offer diverse and 1. Expand active adult programming to support the mental,
inclusive recreational and physical, and emotional health of active adults with diverseEg
cultural programming. interests and lifestyles.
2. Expand environmental programming and education at Town
El
nature and passive parks.
3. Develop outdoor cultural arts and historical programming to
be provided at Town park sites.
2. Develop recreational 1. Acquire property and develop active recreation facilities to
facilities that are in accommodate growth in youth and adult programs. ra
geographic proximity to all 2. Develop greenways and passive recreation assets to connect
residents. neighborhoods with destinations.
3. Construct additional town park amenities and make facility
EEI
improvements to enhance user experience.
3. Develop the creative and 1. Fully develop a public art program in collaboration with
In
arts identity of Downtown stakeholders.
and the Town as a whole. 2. Build on the success of the FM2FV concert series by �
developing additional elements to existing and new events.
�
3. Partner with downtown stakeholders to develop mutually
beneficial and cross-promotional opportunities.
1511 rgi "
dill
Completed Ongoing In progress
43

Department Connections to the Strategic Plan
fMMmi Effective Government and Governance
Provide exceptional customer service while enhancing citizen engagement.
Advance operational efficiency and effectiveness by improving internal business processes and
integrating technology solutions.
Recruit, retain, and develop skilled, knowledgeable, motivated, and public service-oriented Town
staff.
s . Fiscal Strength
*1�
Maintain and improve the Town's bond rating.
Leverage grant opportunities and partnerships to increase return on investment.
Ensure fiscal sustainability and resilience through effective long term financial planning.
• ® Safety and Security
Cultivate a safe and inclusive community.
Apply innovation and technology to enhance public safety.
elInvest in public safety facilities and infrastructure.
Economic Vitality
Maintain a growing economy by providing the necessary infrastructure to support short,
medium, and long-term growth.
Provide supportive land use planning and development regulations.
Promote Fuquay-Varina as a destination for investment to support diverse growth and
sustainability.
Preserving Character and Identity
Prioritize community design and character through effective land use planning policies.
Encourage the development community to integrate natural landscape, site, and character
conditions into new development.
Partner with local, regional, and state organizations to promote community heritage and
6A Quality of Life
Offer diverse and inclusive recreational and cultural programming.
Develop recreational facilities that are in geographic proximity to all residents.
Develop a creative and artistic identity for downtown and the Town as a whole.
Department performance measures use one of the townwide goals adopted by the Town Board.
44

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Please note this page is best viewed in a 2-page format that includes page 44.
45

BUDGET DEVELOPMENT PROCESSES
OPERATING BUDGET
The Town of Fuquay-Varina budget complies with all relevant Town financial policies. Fuquay-
Varina uses its Five Year Financial Plan as the basis for developing its annual budget. Revenues
and expenditures supporting the Five Year Financial Plan are annually balanced; however, in
accordance with North Carolina state law only the first year can be adopted. This must be done
by June 30 and comes into effect as of July 1. The budget supports the Town's current and
anticipated service provision and operations as reflected in the Five Year Financial Plan.
• The budget development calendar is established by the Town Board during a regular
meeting each January.
• The Budget and Fiscal Strategy Manager sends budget instructions to department
directors shortly thereafter.
• The Town Manager and his staff hold a retreat with the Town Board of Commissioners
early in the budget development process. During the retreat the Board is given a progress
report on the goals established in the FY 2021 — 2025 Strategic Plan, an opportunity to
reassess and revise them, and to discuss financial priorities for the next budget cycle.
• Departments submit their operating budget requests by the end of February each year.
Budget requests identify the dollar amounts needed to support anticipated service levels
in the next fiscal year. Each department's service priorities and subsequent funding
requests are guided by the vision, priorities and values set forth in Fuquay-Varina's
Strategic Plan. Departmental goals and objectives are derived from the Town's Strategic
Plan goals and objectives ensuring the budget requests align with it, as well as Fuquay-
Varina's long-range financial plan.
• Town Manager holds budget meetings with each department to review their requests.
• The Town Manager holds a budget workshop with the Town Board of Commissioners.
The Board's feedback is incorporated prior to the official presentation of the Town
Manager's Recommended Budget at the first Board meeting in May. Per State statute,
the Recommended and Adopted budgets must balance which is defined as planned
expenditures equaling anticipated revenues. The legal level of budgetary control is at the
Department level as seen in the Budget Ordinance.
• The Recommended Budget is made available to the public for review and a Budget Public
Hearing is held prior to budget adoption.
• The Town Board adopts the budget at a meeting in June before the start of the new fiscal
year on July 1.
FUQUAY-\/AR i NA FY 2024 BUDGET
46

CAPITAL BUDGET
In North Carolina, local governments may budget capital projects in either the annual budget
ordinance or in one or more capital project ordinances during the fiscal year. The Town of
Fuquay-Varina follows the latter method.
If local governments choose the project ordinance option, they still must include information on
project ordinances they anticipate adopting during the next fiscal year in the Budget Ordinance.
The revenues and expenditures in the FY 2023 —2024 Budget Ordinance for Funds 40, 59, and
60 is informational only, project ordinances will be submitted for adoption at regular Town Board
meetings during the fiscal year.
Fuquay-Varina's capital threshold is $5,000. The Capital Improvement Budget and Plan will
address those capital assets with a value of more than $25,000 and a useful life of over three
(3) years.
Fuquay-Varina's Strategic Five Year Plan, adopted February 16, 2021 , was first implemented in
the FY 2022 budget. As part of this process departments have identified five years of projects
necessary to achieve the goals of the Strategic Plan.
Identifying projects is a collaborative process between department directors, key staff, and
consultants. Department directors then work with the Town Manager's Office to prioritize those
projects that meet the most immediate needs to address growth and maintain and preserve
existing facilities and infrastructure. Water and Sewer capacity expansion is vital to the continued
growth of Fuquay-Varina and its future prosperity. These projects are so important that the Town
anticipates issuing over $280 million in debt during the timeframe of this Five Year Financial
Plan.
The Five Year Financial Plan is reviewed and updated during the annual budget process when
the fifth year is added. The capital improvement budget and plan include Board-adopted revenue
and expenditure amounts for the budget fiscal year and identifies future year funding needs,
these figures are strictly for planning purposes as, in accordance with North Carolina state law,
only the budget year is officially adopted.
If significant changes to the existing Five Year Financial Plan capital budget and plan are
anticipated, the Town Manager may use the Town Board Retreat as an opportunity for
discussion and feedback. Otherwise, it is presented to the Board during the budget workshop.
The Town Manager and staff provide an overview of the CIB/P and focus Board discussions on
significant infrastructure decisions. Board directives are confirmed during these meetings for
incorporation into the budget. This document is formally presented to Town Board with the
operating budget at the first Town Board in May and is also available to the public for review
alongside the operating budget.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
47

BUDGET WORK SCHEDULE
FISCAL YEAR 2023-2024
Operating Budget Directions Distributed to Department Monday, December 19,2022
Heads
Present Budget Calendar to Board Tuesday,January 17, 2023
Public Budget Input through Lets Talk FV Tuesday,January 17,2023
through Tuesday February 21,
2023
Town Revenue and Expense Year-end estimates and FY
2024 Projections Due Tuesday,January 31,2023
Town Board Retreat Thursday, February 9-
Saturday. February 11.2023
Last Day to Input Departmental Operating Budgets Friday, February 17, 2023
Pre-Budget Public Hearing by Town Board Tuesday, February 21, 2023
Town Board Budget Input Tuesday, February 21, 2023
Budget Meetings with Town Manager Monday, March 6,2023
Through Friday, March 31,2023
Town Board Draft Budget Review/Work Session Monday, April 17,2023
Manager's Recommended Budget to the Town Board Monday, May 1,2023
Budget Public Hearing by Town Board Tuesday, May 16, 2023
Budget Ordinance Adoption by Town Board Monday, June 5, 2023
FY 2024 Begins Saturday. July 1. 2023
Public Input
The public can provide input in multiple ways regarding both the operating and capital budgets
throughout the year. Fuquay-Varina offers an array of public input communication options
including email, Twitter, Facebook, and the opportunity to appear in person during the public
comment period at any Town Board meeting or at budget specific public hearings. The first public
budget hearing is held in February prior to the development of the next fiscal year's budget.
During the FY 2024 budget process, citizens had an opportunity to share their budget priorities
in advance of the budget process through the Let's Talk FV community engagement platform.
Public input was taken into consideration in the development of the FY 2024 budget. A second
public budget hearing is held in May after the Town Manager's Recommended Budget has been
formally presented to the Town Board. In addition to the Town's website, Fuquay-Varina uses
Let's Talk FV to communicate the Town Manager's Recommended Budget. The site includes a
link for citizens and businesses to share their budget comments with Town staff. All input
received is shared with the Board during the Budget Public Hearing prior to budget adoption.
FUQUAY-\/AR i NA FY 2024 BUDGET
48

Addressing Emerging Needs Throughout the Yeor
Once a new fiscal year begins, Finance Department staff regularly monitor revenue and
expenditure activity and present this information to Town Board in quarterly financial reports.
Revenue and expenditure budget adjustments required to support emerging operating, capital
infrastructure, or major equipment needs or opportunities are presented to the Town Board for
consideration during regular meetings.
PROCED(1RFS FOR AMENDING THE At 1DGET
Fuquay-Varina adheres to the following procedures for amending the Budget during the year.
The responsible department typically prepares all reports and other materials.
A transfer of funds between line accounts of the same department requires approval of the
Finance Director and Town Manager (or his/her designee). The department completes a budget
adjustment request (Yellow Sheet) and sends it to the Budget and Fiscal Strategy Manager for
signature approval using Nitro Sign software. After completing the signature process, the budget
adjustment request form is entered in the Town's accounting system by the Budget and Fiscal
Strategy Manager.
The Town Manager may transfer between departments in the same fund, not to exceed 10% of
the appropriated funds for the department whose allocation is reduced. A notation of such a
transfer shall be report to the Town Board at its next regular meeting.
Budget transfers between funds and/or appropriation of fund balance or contingency funds must
be approved by the Town Board before it can be processed.
Recognition of unbudgeted revenues, such as a donations or grants, must be presented to Board
for funding approval and to authorize the related expenditure.
FU0 JAY-VA R 1 NA FY 2024 BUDGET
49

F11• Y
of `'7 Ordinance No. N-23-XX
AIP-411Y Fuquay-Varina Board of Commissioners
o dash more June 5,2023
" CARO''
AN ORDINANCE ADOPTED BY THE BOARD OF COMMISSIONERS
OF THE TOWN OF FUQUAY-VARINA, NC
ESTABLISHING THE FISCAL YEAR 2023-2024
OPERATING BUDGET
NOW,THEREFORE BE IT ORDAINED, by the Board of Commissioners of the Town of Fuquay-Varina, North
Carolina,the following revenues, and departmental expenses(Sections I -VII),tax rate(Section VIII),fee
schedules(Sections IX-XII), and budget and financial policies(Section XIII and XV)are adopted.
SECTION I: GENERAL FUND-FUND 10
Anticipated Revenues:
Ad Valorem Taxes(Current Year) $ 25,990,378
Ad Valorem Taxes(Prior Years) 50,000
DMV Property Taxes(Current Year) 2,498,994
Tax Penalties and Interest 30,000
Rental Vehicle Taxes 60,000
Auto Licenses 1,001,564
Local Option Sales Tax 11,634,177
Beer and Wine Tax 115,000
Utilities Sales Tax 1,512,393
Cable TV Sales Tax 324,588
ABC Net Revenues 200,000
Powell Bill Revenues 1,050,302
Wake County Fire Tax 2,694,718
Licenses, Permits,and Fees 3,256,969
Refuse Collection Fees 4,033,753
Arts Center Fees 336,000
Parks and Recreation Fees 943,600
Interest on Investments 800,000
Other Revenues 681,428
Transfer From Capital Reserve Fund 0
Powell Bill Fund Balance Appropriated 182,198
General Fund Balance Appropriated 0
Total Revenues $ 57,396,062
50

Expenses Authorized by Department
Governing Body $ 544,977
Administration 1,043,466
Communications 517,745
Finance 1,022,058
Engineering 1,680,136
Public Buildings 730,725
Central Services 3,113,785
Information Technology 1,796,686
Human Resources 796,480
Police 10,635,789
Fire 8,912,827
Inspections 2,547,954
Streets 2,788,159
Powell Bill 1,232,500
Debris Collection 997,301
Sanitation 3,516,178
Planning 1 ,517,830
Economic Development 337,186
Downtown Development 414,250
Parks, Rec,and CR 5,715,143
Arts Center 1,063,846
Transfers to Capital Reserve 0
Transfers to Capital Projects 220,000
Transfers To Debt Service 4,856,540
Appropriation to Fund Balance-Inspections 0
Appropriation to Fund Balance-General Fund 1,394,501
Total Expenses $ 57,396,062
SECTION II: DEBT SERVICE FUND-FUND 15
Anticipated Revenues
Transfer from General Fund $ 4,856,540
Transfer from Enterprise Fund 231,200
Transfer from Capital Reserves 448,771
TOTAL REVENUES $ 5,536,511
Expenditures Authorized
Principal $ 3,008,000
Interest 2,233,511
Designated for Fund Balance 295,000
TOTAL EXPENDITURES $ 5,536,511
51

SECTION III: CAPITAL RESERVE FUND- FUND 21 (GENERAL FUND ACTIVITIES)
Anticipated Revenues
Recreation Unit Fees- Northwest District $ 350,042
Recreation Unit Fees-Northeast District 360,023
Recreation Unit Fees-South District 661,621
Appropriated Fund Balance- Recreation Unit Fees- Prior Years 460,000
Appropriated Fund Balance- Recreation Unit Fees- Northwest 521,853
Appropriated Fund Balance- Recreation Unit Fees-South 262,150
TOTAL REVENUES $ 2,615,689
Expenses Authorized
Transfer to Capital Projects-South District $ 935,000
Transfer to Capital Projects- Northwest District 871,895
Transfer to Debt Service- Rec Debt(South) 448,771
Appropriation to Fund Balance- Northeast District 360,023
TOTAL EXPENDITURES $ 2,615,689
SECTION IV: CAPITAL PROJECTS FUND-FUND 40
Anticipated Revenues
Loan Proceeds $ 13,978,000
Transfer from General Fund 220,000
Transfer from Capital Reserves 1,806,895
TOTAL REVENUES $ 16,004,895
Anticipated Project Costs
Capital Projects- Public Buildings
Community Center HVAC Replacement $ 45,000
Town Hall Window Replacement 175,000
Capital Projects- Fire(Loan)
Fire Engine(4) Replacement 3,528,000
Capital Projects- Engineering/Transportation (Bond)
SE Judd/Angier Road Improvements 2,250,000
Old Honeycutt/Kennebec Road Improvements 1,350,000
Hwy 55/James Slaughter Road Improvements 2,250,000
Purfoy/Holland Road Improvements 4,600,000
Capital Projects- Parks& Recreation (Rec Fees)
Willow Lakes Park Field Lights(South) 475,000
Willow Lakes Park Parking Lot(South) 135,000
Falcon Park Field Lights(South) 175,000
Honeycutt Playground Replacement(South) 150,000
Alston Ridge Greenway Trail Construction (Northwest) 871,895
TOTAL EXPENDITURES $ 16,004,895
52

SECTION V:WATER AND SEWER ENTERPRISE FUND-FUND 61
Anticipated Revenues
Water Sales and Tap Fees $ 11,055,557
Sewer Service and Tap Fees 11,154,605
Interest Earnings, Penalties, and Leases 691,800
Transfer from Water and Sewer Fund Reserves 0
TOTAL REVENUES $ 22,901,962
Expenditures Authorized by Department
W/S Billing and Collections $ 740,754
Water Operations 7,447,796
Sewer Operations 5,885,146
Debt Service 1,595,440
Transfer to Enterprise Capital Projects 1,403,063
Appropriation to Fund Balance- Future Debt& Projects 5,829,763
TOTAL EXPENDITURES $ 22,901,962
SECTION VI: ENTERPRISE CAPITAL PROJECTS FUND-FUND 59
Anticipated Revenues
Bond/Grant Revenue $ 271,201,495
Transfer from W/S Reserves 2,069,130
TOTAL REVENUES $ 273,270,625
Anticipated Project Costs
Donny Brook Road Waterline(Lake Wheeler Road to Hwy 401) $ 816,900
Burt Road Waterline(Fleming Road to Starchase Lane) 766,080
Wagstaff Road Waterline(Howard Road to Whetstone Drive) 486,150
Sanford Water Conveyance(Easements&Construction) 69,321,365
Sanford Water Plant Expansion (Design &Construction) 62,235,000
Elevated Water Tank 7,000,000
Terrible Creek WWTP Expansion (Construction) 68,535,130
Northern Harnett WWTP Expansion (Construction) 52,200,000
Southern Oaks Sewer Pump Station 11,910,000
TOTAL EXPENDITURES $ 273,270,625
53

SECTION VII:WATER AND SEWER CAPITAL PROJECT FUND-FUND 60
Anticipated Revenues
Transfer from W/S Enterprise Fund $ 1,403,063
TOTAL REVENUES $ 1,403,063
Anticipated Project Costs
Water Line Replacements $ 525,000
Water Line Oversizing 52,500
Water Line Valve Replacements 52,500
Miscellaneous Water Projects 236,250
I & I Rehabilitation 236,250
Sewer Line Oversizing 52,500
Miscellaneous Sewer Projects 248,063
TOTAL EXPENDITURES $ 1,403,063
SECTION VIII:WATER AND SEWER DEBT SERVICE FUND- FUND 65
Anticipated Revenues
Transfer From W/S Enterprise Fund $ 1,364,240
Transfer From W/S Reserve 4,521,654
TOTAL REVENUES $ 5,885,894
Expenditures Authorized
Principal -Bonds(Water) $ 567,520
Principal -Bonds(Sewer) 1,580,480
Interest- Bonds(Water) 1,698,073
Interest- Bonds(Sewer) 2,039,821
TOTAL EXPENDITURES $ 5,885,894
54

SECTION IX: WATER AND SEWER CAPITAL RESERVE FUND-FUND 71
Anticipated Revenues
Water System Development Fees $ 4,616,400
Sewer System Development Fees 4,669,200
Interest Earnings 200,000
Water Reserves Appropriation 0
Sewer Reserves Appropriation 0
TOTAL REVENUES $ 9,485,600
Expenditures Authorized
Transfer to Debt Service Fund $ 4,521,654
Transfer to W/S Capital Projects 2,069,130
Appropriation to Fund Balance(Water) 1,014,377
Appropriation to Fund Balance(Sewer) 1,880,439
TOTAL EXPENDITURES $ 9,485,600
SECTION X:TAX RATE ESTABLISHED
An ad valorem tax rate of$0.455 per$100 at full valuation is hereby established as the official tax rate for the
Town of Fuquay-Varina for the fiscal year 2023-2024.The projected current year revenue from property and
vehicle taxes of$28,489,372 is based on a total projected valuation of$6,316,617,647 and a projected
collection rate of 99.82%.
SECTION XI:WATER AND SEWER RATES ESTABLISHED
The following monthly rate schedules for water and sewer service shall be in effect.
Base Rates Water Consumption Rate
Meter Size Water Base Rate Sewer Base Rate In-Town$6.82/1,000 gallons
3/4"meter 13.49 18.73 Out-of-Town $13.64/1,000 gallons
1" meter 22.52 31.28
1.5 " meter 44.92 62.38 Sewer Consumption Rate
2" meter 71.89 99.84 (Except For Irrigation Meters)
3" meter 134.88 187.32
4" meter 224.84 312.26 In-Town $8.02/1,000 gallons
6" meter 449.56 624.34 Out-of-Town $16.04/1,000 gallons
8" meter 719.12 998.87
55

All rates for service provided to customers that are not located within the corporate limits of the Town of
Fuquay-Varina shall be double the rates listed above for In-Town rates. No new Out-of-Town services may be
provided prior to the approval of the Town of Fuquay-Varina Governing Board.
SECTION XII: FEE SCHEDULE FOR FY 2023-2024
The fee schedule(with attachments) is incorporated into this budget ordinance by reference.
SECTION XIII: PAY INCREASES FOR EMPLOYEES
Beginning on July 3, 2023 all regular,full-time employees, shall receive a Cost-of-Living Adjustment(COLA)
of 4.0%.All regular,full-time employees that are not under probation and have completed 12 months of
employment shall be eligible for a merit salary increase of up to 3%at a time determined by management,
consistent with the FY 2023-2024 budget ordinance.
SECTION XIV: SPECIAL AUTHORIZATION-BUDGET OFFICER
A. The Budget Officer shall be authorized to reallocate departmental appropriations among the various
objects of expenditures as deemed necessary.
B. The Budget Officer shall be authorized to effect interdepartmental transfers, in the same fund, not to
exceed 10%of the appropriated funds for the department whose allocation is reduced.A notation of
such a transfer shall be reported to the Town Board at the next earliest convenient Board meeting.
C. Interfund transfers, established in the Budget Officer's Recommended Budget to the Town Board
(the entire document of which is a part of this Budget Ordinance by reference) may be accomplished
without a separate report to the Town Board.
D. The purchase of all capital equipment(equipment having a value of over$5,000) listed in the Budget
Officer's Recommended Budget to the Town Board (the entire document of which is a part of the
Budget Ordinance by reference) is authorized.
E. Operating funds encumbered on the financial records as of June 30,2023, are hereby
reappropriated to this budget as necessary to fulfill all obligations outstanding on June 30, 2023.
SECTION XV: RESTRICTIONS- BUDGET OFFICER
A. No interfund transfers, except as noted in SECTION XIV(C)are authorized without prior approval of
the Town Board.
B. No contingency appropriation may be utilized without prior approval of the Town Board.
C. No single expenditure over$500 is authorized without a pre-audit certification from the Finance
Director or authorized designee(purchase order minimum limit).
56

SECTION XVI: UTILIZATION OF BUDGET AND BUDGET ORDINANCE
This Budget Ordinance and reference budget documents shall be the basis of a financial work plan for the
Town of Fuquay-Varina for the fiscal year of 2023-2024.The Budget Officer shall administer the budget,and
the Budget Officer shall ensure that the department heads are provided guidance to implement the work
elements described in the budget documents.The Finance Officer shall establish such records that are in
consonance with this Budget Ordinance,the reference budget documents,and appropriate General Statutes
of the State of North Carolina.
BE IT FURTHER ORDAINED, by the Board of Commissioners of the Town of Fuquay-Varina that this ordinance
shall take effect immediately upon its adoption.
This Ordinance of the Town of Fuquay-Varina Board of Commissioners is hereby adopted this 5th day of
June in the year 2023 in Fuquay-Varina, North Carolina.
FUQUAY-VARINA, NORTH CAROLINA
hilt1)41
Mayor
/
Blake Massen ill, Ma 9 Y
ATTEST (TOWN SEAL) ‘•eF,FUQU,gy1:.
41,6/ al 43611
•
`•.• o dash more
Rose H. Rich, Town Clerk
•., ..•• „
CARO, o'
57

CERTIFICATION BY RECORDING OFFICER
The undersigned duly qualified and acting Town Clerk of the Town of Fuquay-Varina does hereby certify:
That the above/attached ordinance is a true and correct copy of the ordinance authorizing the FY 2022-2023
Budget, as regularly adopted at a legally convened meeting of the Town Board of Commissioners duly held
on the 6th day of June, 2022; and,further,that such ordinance has been fully recorded in the journal of
proceedings and records in my office. IN WITNESS WHEREOF, I have hereunto set my hand this -
day of 4,,,,i.n,e, ,20 2,3 .
9evat_oi . A:06 ,,.. -. \-.60/ , ,,,
(Signature of Recording Officer) �'`;�
i--:( i '`,4051107 .'
(it
w Q da! h
(Title of Recording Officer) t ,c; ,','°�, . .,�,. , ;°':,�
58

FUQUAY-\'AR ! NA
north carolina
Fiscal Year 2023 - 2024 Changes from Recommended
General Operating Fund
Adjustments to Salary& Benefits 42,081
Adjustment to Transfer to Debt Service (25,264)
General Fund Appropriation to Fund Balance (16,817)
General Debt Service Fund
Adjustment to Debt Service (25,264)
Transfer from General Fund (25,264)
Utility Operating Fund
Adjustments to Salary& Benefits (1,059)
Utility Operating Fund Appropriation to Fund Balance 1,059
Utility Debt Service Fund
Adjustment to Debt Service (5,703)
Transfer from Utility Capital Reserve Fund (5,703)
Utility Capital Reserve Fund
Adjustments to Transfer to Debt Service (5,703)
Utility Capital Reserve Fund Appropriation to Fund
Balance 5,703
Adjustments to Salaries and Benefits were due to personnel transaction forms
processed after the drafting of the Recommended Budget. Debt adjustments
refined FY 2024 debt service needs after the sale of General Obligation Bonds
in May 2023.
59

GFOA DISTINGUISHED BUDGET AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) has
presented the Town of Fuquay-Varina with the Distinguished Budget Presentation Award, the
only national award for governmental budgeting. Budgets are submitted annually for
consideration. Fuquay-Varina's first submission, the FY 2023 budget and plan which began July
1, 2022, not only received the the award, but also special recognition for its Long Range
Financial Plan.
GFOA established the program in 1984 to encourage and assist state and local governments in
preparing budget documents of the very highest quality that reflect both the guidelines
established by the National Advisory Council on State and Local Budgeting and the GFOA's best
practices on budgeting. In order to receive this award, the budget document must serve as a
policy document, an operations guide, a financial plan, and a communications device. Budget
documents must be rated "proficient" not only in each of these four categories but also in the
mandatory criteria within those categories to receive the award. Documents submitted to the
Budget Awards Program are reviewed by selected members of the GFOA professional staff and
by outside reviewers with experience in public-sector budgeting.
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Prese,itatioii
Award
PRESENTED TO
Town of Fuquay-Varina
North Carolina
For the Fiical Year Bemiring
Jul.-01. 2022
P. :u
Executive Director
(=UQUA'(-VAR INA FY 2024 BUDGET
60

FINANCIAL SUMMARIES
The folowing section includes tables, charts, and graphs that consolidate all budgeted revenues and/or expenditures.
They present budget information in a different manner than the Adopted Budget Ordinance or individual fund summaries
in that transfers between funds have been canceled out in order to show where the true expenditures are occurring. The
color coding in the Revenue by Fund table (page 66)illustrates the flow of revenues between funds.
SUMMARY OF OPERATING AND CAPITAL BUDGETS
OPERATING BUDGET
$Increase/
GENERAL FUND FY2023 ADOPTED FY2024 ADOPTED (Decrease) %Change
Operating Expenditures $49,460,768 $56,001,561 $6,540,793 13.2%
Net Operating Transfers (4,929,131) (5,076,540) (147,409) 3.0%
Subtotal $44,531,637 $50,925,021 $6,393,384 14.4%
UTILITY FUND
Operating Expenses $17,532,901 $17,072,199 ($460,702) -2.6%
Net Other Expenses and Proceeds (4,978,950) (2,998,503) 1,980,447 -39.8%
Subtotal $12,553,951 $14,073,696 $1,519,745 12.1%
TOTAL OPERATING BUDGET $57,085,588 $64,998,717 $7,913,129 13.9%
DEBT SERVICE
GENERAL $4,411,833 $5,241,511 $829,678 18.8%
UTILITY 3,516,366 5,885,894 2,369,528 67.4%
TOTAL DEBT SERVICE $7,928,199 $11,127,405 $3,199,206 40.4%
CAPTIAL RESERVE
GENERAL - - - 0.0%
UTILITY - - - 0.0%
TOTAL CAPITAL RESERVE $0 $0 $0 0.0%
CAPITAL IMPROVEMENTS BUDGET(CIB)
UTILITY CIB
Water $6,522,842 $141,491,745 $134,968,903 2069.2%
Sewer 1,239,741 133,181,943 131,942,202 10642.7%
Subtotal $7,762,583 $274,673,688 $266,911,105 3438.4%
GENERAL CIB
Public Buildings $459,500 $220,000 ($239,500) -52.1%
Fire - 3,528,000 3,528,000 100.0%
Streets 10,145,000 10,450,000 305,000 3.0%
Economic Development/Downtown 300,000 - (300,000) -100.0%
Parks,Recreation and Cultural Resources 18,665,710 1,806,895 (16,858,815) -90.3%
Subtotal $29,570,210 $16,004,895 ($13,565,315) -45.9%
TOTAL CAPITAL IMPROVEMENTS BUDGET $37,332,793 $290,678,583 $253,345,790 678.6%
TOTAL OPERATING AND CIB $102,346,580 $366,804,705 $261,258,919 255.3%
61

REVENUE SOURCES ALL FUNDS
General Capital Investment/Misc
Permits& FeesOther Taxes/Licenses Sources 0 2%
0.8% 0.5% 0.5%
Intergovernmental General Capital Debt
1.2% 3.7%
Sales and Service
1 4% Property Taxes
7.7%
Utility Fund
6.0%
Sales Tax
3.0%
Debt
3.0%
Utility Capital
Sources
71.9%
Revenue Source Amount
Property Taxes $29,570,936
Other Taxes/Licenses 1,896,981
Sales Tax 11,634,177
Intergovernmental 4,593,952
Permits&Fees 3,127,389
Sales and Service 5,467,933
Investment/Miscellaneous 922,496
Utility Fund 22,901,962
Debt 11,422,405
General Capital Sources 2,026,895
General Capital Debt 13,978,000
Utility Capital Sources 274,673,688
TOTAL REVENUE SOURCES $382,216,814
General Fund Transfers Out ($5,076,540)
Utility Fund Transfers Out ($2,998,503)
GF Net Fund Balance ($1,212,303)
GF Debt Service Net Fund Balance ($295,000)
OF Net Fund Balance ($5,829,763)
NET REVENUES APPROPRIATED $366,804,705
NOTE:These figures are net revenues. Transfers between funds are only counted as
revenue in one of the funds.
62

EXPENDITURES BY FUNCTION ALL FUNDS
PRCR Debt Public Works Infrastructure
1.8% 3.0% 1.2% 1.1%
General Government � Development
2.2% 0.6%
Other(General Fund) General Capital Budget
0.8% 4.4%
Public Safety
6.0%
Utility Fund
3.8%
Utility Capital Budge
74.9%
Expenditures by Function Amount
General Government $8,132,273
Development 2,269,266
Transportation 4,020,659
Public Safety 22,096,570
PRCR 6,778,989
Public Works 4,513,479
Other(General Fund) 3,113,785
Debt 11,127,405
Utility Fund 14,073,696
Utility Capital Budget 274,673,688
General Capital Budget 16,004,895
TOTAL $366,804,705
NOTE:These figures are net expenditures. Transfers between funds are only
counted as expenditures in one of the funds.
63

BUDGET OVERVIEW - ALL FUNDS
REVENUES
Adopted Adopted Adopted
FY 2022 FY 2023 FY 2024
REVENUES & SOURCES:
General Fund
Property Tax $20,391,000 $25,089,894 $29,570,936
Other Taxes/Licenses 9,347,635 11,940,958 13,531,158
Intergovernmental 3,302,934 4,474,422 4,593,952
Permits & Fees 2,605,500 4,284,075 3,127,389
Sales and Service 3,110,100 4,748,813 5,467,933
Investment Earnings 50,000 15,000 800,000
Miscellaneous 50,000 60,000 122,496
General Fund Sub-Total $38,857,169 $50,613,162 $57,213,864
Utility Fund
Operating Revenues $15,057,750 $17,554,186 $22,451,962
Non-Operating Revenues 100,000 80,000 150,000
Interest Earnings 60,000 60,000 300,000
Utility Fund Sub-Total $15,217,750 $17,694,186 $22,901,962
Debt Service Fund
General $3,837,426 $4,706,833 $5,536,511
Utility 3,402,065 3,516,366 5,885,894
Debt Service Fund Sub-Total $7,239,491 $8,223,199 $11,422,405
Capital Revenue Sources
Debt Proceeds $5,400,000 $28,500,000 $13,978,000
General Capital Reserves - 165,710 1,806,895
Transfer from General Fund - 904,500 220,000
Utility Capital
Debt Proceeds - - 271,201,495
Utility Capital Reserves 5,272,791 3,006,741 2,069,130
Transfer from Utility Fund 4,921,209 4,755,842 1,403,063
Capital Revenue Sub-Total $15,594,000 $37,332,793 $290,678,583
GROSS REVENUES $76,908,410 $113,863,340 $382,216,814
64

Adopted Adopted Adopted
FY 2022 FY 2023 FY 2024
General Fund Sources
Contribution From (to) Fund Balance $4,800,654 ($1,556,082) ($1,212,303)
Transfer from Capital Reserve 1,088,450 403,688 -
Transfer to Capital Reserve (3,500,000) - -
Transfer to Capital Projects - (904,500) (220,000)
Transfer to Debt Service (3,109,302) (4,024,631) (4,856,540)
Utility Fund Sources
Contribution (From)to Fund Balance $0 ($161,285) ($5,829,763)
Transfer to Debt Service (GF) (256,800) (223,108) (1,595,440)
Transfer to Capital Projects (4,921,209) (4,755,842) (1,403,063)
Debt Service Fund Sources
Contribution to Fund Balance - (295,000) (295,000)
TOTAL NET REVENUE APPROPRIATED $71,010,203 $102,346,580 $366,804,705
BUDGET OVERVIEW- ALL FUNDS
EXPENDITURES & USES
Adopted Adopted Adopted
EXPENDITURES & USES: FY 2022 FY 2023 FY 2024
General Fund Expenditures $44,746,273 $49,460,768 $56,001,561
Uses/(Sources) (6,609,302) (4,929,131) (5,076,540)
General Fund Sub-Total $38,136,971 $44,531,637 $50,925,021
Utility Fund Expenditures $15,217,750 $17,532,901 $17,072,199
Uses/(Sources) (5,178,009) (4,978,950) (2,998,503)
Utility Fund Sub-Total $10,039,741 $12,553,951 $14,073,696
Debt Service
General $3,837,426 $4,411,833 $5,241,511
Utility 3,402,065 3,516,366 5,885,894
Other Fund Sub-Total $7,239,491 $7,928,199 $11,127,405
Capital Reserve
General (Designated for Fund Balance) $0 $0 $0
Utility - - -
Capital Expenditures
General Capital $5,400,000 $29,570,210 $16,004,895
Utility Capital 10,194,000 7,762,583 274,673,688
Capital Sub-Total $15,594,000 $37,332,793 $290,678,583
TOTAL NET EXPENDITURES & USES $71,010,203 $102,346,580 $366,804,705
65

BUDGETED NET REVENUES BY FUND
Appropriated Town Funds Capital Project Funds
Capital Utility Capital
Revenue Source Total General Fund Utility Fund General Debt Utility Debt Reserve Reserve General Utility
Property Tax $29,570,936 $29,570,936 $0 $0 $0 $0 $0 $0 $0
Other Taxes&Licenses 13,531,158 13,531,158 - - - - - - -
Intergovernmental 4,593,952 4,593,952 - - - - - - -
Permits&Fees 4,051,989 3,127,389 924,600 - - - - - -
Sales&Service 26,995,295 5,467,933 21,527,362 - - - - - -
Investment Earnings 1,300,000 800,000 300,000 - - - 200,000 - -
Miscellaneous 272,496 122,496 150,000 - - - - - -
System Development Fees-Recreation 1,371,686 - - - - 1,371,686 - - -
System Development Fees-Water 4,616,400 - - - - - 4,616,400 - -
System Development Fees-Sewer 6,738,330 - - - - - 4,669,200 - 9,069,130
Bond Proceeds 285,179,495 - - - - - - 13,978,000 271,201,495
Transfer from Capital Reserve 6,777,320 - - 448,771 4,521,654 - - 1,806,895 -
Transfer from General Fund 5,076,540 - - 4,856,540 - - - I 220,000 -
Transfer from Utility Fund 2,998,503 - - 231,200 1,364,240 - - - 1,403,063
Transfers Out (16,921,493) (5,076,540) (2,998,503) - - (2,255,666) (6,590,784) - -
Total Revenue $376,152,607 $52,137,324 $19,903,459 $5,536,511 $5,885,894 -$883,980 $2,894,816 $16,004,895 $274,673,688
Appropriation From(To)Fund Balance (9,347,902) (1,212,303) (5,829,763) (295,000) - 883,980 (2,894,816) - -
d)
Net Total Revenue Appropriated $366,804,705 $50,925,021 $14,073,696 $5,241,511 $5,885,894 $0 $0 $16,004,895 $274,673,6881
To illustrate the transfers between funds,each set of colored cells net to$0.

BUDGETED NET EXPENDITURES BY FUND
Appropriated Town Funds Capital Projects
General
Capital Utility Capital
Total General Fund Utility Fund General Debt Utility Debt Reserve Reserve General Utility
Operating Expenses
Personnel Services $41,382,313 $37,460,329 $3,921,984 $0 $0 $0 $0 $0 $0
Operations&Maintenance 21,610,677 12,034,965 9,575,712 - - - - -Capital Outlay 1,571,358 1,073,358 498,000 - - - - - -
Insurance and Bonds 434,369 356,369 78,000 - - - -
Non-Departmental Costs - - - - - - - - -
Debt 11,127,405 - - 5,241,511 5,885,894 - -
Transfer to Capital Projects 5,499,088 220,000 1,403,063 - - 1,806,895 2,069,130 -Transfer to Debt Service 11,422,405 4,856,540 1,595,440 - - 448,771 4,521,654 - -
Transfer to General Fund - - - - - - - - -
Operating Subtotal $93,047,615 $56,001,561 $17,072,199 $5,241,511 $5,885,894 $2,255,666 $6,590,784 $0 $0
Reimbursements/Transfers
Net Other Sources/(Uses) (16,921,493) (5,076,540) (2,998,503) - - (2,255,666) (6,590,784) - -
General Capital Funding - - - - - - - - -
Capital Utility Funding - - - - - - - - -
Total Net Operating Expenditures $76,126,122 $50,925,021 $14,073,696 $5,241,511 $5,885,894 $0 $0 $0 $0
0)
v
Capital Projects
Transportation Projects $10,450,000 $0 $0 $0 $0 $0 $0 $10,450,000 $0
Fire Projects 3,528,000 - - - - - - 3,528,000 -
Parks,Recreation&Cultural Resources Projects 1,806,895 - - - - - - 1,806,895 -
General Government Projects 220,000 - - - - - - 220,000 -
Economic Development Projects - - - - - - - - -
Water Projects 141,491,745 - - - - - - - 141,491,745
Sewer Projects 133,181,943 - - - - - - - 133,181,943
Capital Subtotal $290,678,583 $0 $0 $0 $0 $0 $0 $16,004,895 $274,673,688
Total Net Expenditures $366,804,705 $50,925,021 $14,073,696 $5,241,511 $5,885,894 $0 $0 $16,004,895 $274,673,688
Appropriation to Fund Balance $9,347,902 $1,212,303 $5,829,763 $295,000 $0 ($883,980) $2,894,816 $0 $0

CHANGES IN FUND BALANCE
BUDGETED NET REVENUES BY FUND Appropriated Town Funds Capital Project Funds
General Capital Utility Capital
Total General Fund Utility Fund General Debt Utility Debt Reserve Reserve General Utility
Net Total Revenue Appropriated $377,578,808 $52,319,522 $19,903,459 $5,536,511 $5,885,894 $360,023 $2,894,816 $16,004,895 $274,673,688
BUDGETED NET EXPENDITURES BY FUND Appropriated Town Funds Capital Projects
General Capital Utility Capital
Total General Fund Utility Fund General Debt Utility Debt Reserve Reserve General Utility
Total Net Operating Expenditures $76,126,122 $50,925,021 $14,073,696 $5,241,511 $5,885,894 $0 $0 $0 $0
Capital Subtotal $290,678,583 $0 $0 $0 $0 $0 $0 $16,004,895 $274,673,688
Total Net Expenditures $366,804,705 $50,925,021 $14,073,696 $5,241,511 $5,885,894 $0 $0 $16,004,895 $274,673,688
Net Total Expenditures Appropriated $377,578,808 $52,319,522 $19,903,459 $5,536,511 $5,885,894 $360,023 $2,894,816 $16,004,895 $274,673,688
Changes in Fund Balance $9,347,902 $1,212,303 $5,829,763 $295,000 $0 ($883,980) $2,894,816 $0 $0
Estimated Fund Balance(6/30/2023) $30,028,187 $8,489,214 $1,340,837 $76,971 $4,552,611 $6,294,465 $0 $0
Estimated Fund Balance(6/30/2024) $31,240,490 $14,318,977 $1,635,837 $76,971 $3,668,631 $9,189,281 $0 $0
O)
CO
Percent Change from Prior Year 69% -19% 46% 0% 0%
The 69%change from prior year for the Utility Fund is due to a one-time lag between the commencement of major capital projects and the first full year of debt service.
The 22%change from prior year for the General Debt Service Fund is an intentional allocation of Vehicle Fees to this fund to support future Transportation debt service.
The(19%)change from prior year for the General Capital Reserve Fund is due to the strategic use of fund balance to support projects that advance Town Board priorities.
The 46%change from prior year for the Utility Capital Reserve Fund is due to the number and type of projects scheduled for FY 2024. Utility Capital Reserve fund balance will vary over the course of
the Five Year Plan depending on projects and available fund balance.
The fund balances above represent estimated Unassigned fund balance which is defined as the remaining fund balance after Non-spendable,Restricted,Committed,and Assigned amounts have been deducted.
Fund balance definitions can be found on page 160.

Long Range Operating Financial Plan
The Town of Fuquay-Varina has a long range operating financial plan which received Special
Recognition from the Government Finance Officers Association in FY 2023. It is a five year rolling
plan, aligned with the Town's Strategic Plan, which is updated annually to add the fifth year. The
financial plan is not limited to the two operating funds, General and Utility, it incorporates all
Town activities, personnel, operating, debt, capital reserve, and capital projects. This section
presents an overview.
SIGNIFICANCE
The long range operating financial plan is integral to achieving the goals of the Strategic
Plan. This is illustrated by how it is interwoven into the FY 2024 Budget Message:
"The guiding philosophy behind the establishment of the annual operating budget continues to
be advancing the goals of the 2021-2025 Strategic Plan."
"The recommended operating budget was developed with the intention of advancing the core
values, objectives and initiatives identified within the Strategic Plan, while advancing historically
unprecedented investments in water, wastewater, and transportation infrastructure to secure the
Town's future prosperity."
"The FY 2024 operationalizes the goals for the Town of Fuquay-Varina established by the Mayor
and the Board of Commissioners. The services, programs, and facility needs prioritized by the
Board's Strategic Plan are achieved in this budget."
PURPOSE
• Align projected revenues and expenditures for the forecast period
• Identify the needs of the Town for the planning period
• Stagger projects to align with projected revenue
• Identify long range budget shortfalls and avert them
• Identify funding for major projects or capital
• Review annually and modify based on economic climate and priorities
ASSUMPTIONS
Management and the Budget and Fiscal Strategy Manager thoroughly reviewed and updated
the FY 2024 - 2028 long range operating financial plan's revenue and expenditure assumptions
as necessary based on current financial conditions and historical actuals.
FUQJAY-\/AP i NA FY 2024 BUDGET
69

GENERAL FUND FIVE YEAR PLAN SUMMARY
2024 2025 2026 2027 2028
Ad Valorem Taxes $26,610,952 $28,398,951 $30,670,496 $32,804,964 $35,305,450
Tax Increase-Comm Center North(3 cents) 1,878,420 2,018,926 2,169,942 2,332,253 2,506,706
Tax Increase-Transportation Bond(3.5 cent) - 2,355,414 2,531,599 2,720,962 2,924,490
Tax Generated by Commercial/Retail - 202,500 432,000 624,000 624,000
Other Taxes 1,141,564 1,164,395 1,187,682 1,211,435 1,235,663
Sales and Use Taxes 11,634,177 12,099,544 12,944,362 13,038,104 13,571,644
Unrestricted Intergovernmental 2,187,480 2,231,230 2,275,854 2,321,371 2,367,799
Fire District Revenue 2,694,718 2,682,489 2,664,971 2,641,759 2,612,426
Fire Grant 273,952 150,249 311,760 730,218 382,462
Other Grants 224,480 224,480 224,480 224,480 224,480
Powell Bill 1,050,303 1,050,303 1,050,303 1,050,303 1,050,303
Permits and Fees 3,127,389 3,500,000 3,500,000 3,500,000 3,500,000
Sanitation Fees 4,033,753 4,235,440 4,447,212 4,669,572 4,903,050
Sales and Services 1,434,180 1,505,889 1,581,183 1,660,242 1,743,254
Investments 800,000 832,000 865,300 900,000 935,900
Miscellaneous 122,496 50,000 50,000 50,000 50,000
Loans/Bonds 13,978,000 7,915,000 - - 10,031,185
Transfers In - - - - -
Capital Reserve Support for Capital Projects 1,806,895 1,690,000 1,060,000 335,000 1,250,000
Fund Balance Appropriated
Powell Bill 182,198 297,197 28,197 212,205 117,197
General Fund - 9,000,000 - - -
Total Revenues $73,180,957 $81,604,007 $67,995,341 $71,026,868 $85,336,009
Ad Valorem (Property) Taxes - 7.5% annual rate of growth
Property tax represents 50% of General Fund revenues for FY 2024. Base tax levy (property tax
revenues) was conservatively projected at a 7.5% annual rate of growth which is the level of
growth seen prior to the rapid growth of the Town. Due to the level of development, these
revenues are expected to exceed the 7.5% growth projection giving the plan a comfortable
margin of error that revenues will be able to support strategic expenditures in the plan. The
property tax rate increased three cents in FY 2024 to cover the anticipated debt service for the
new Community Center North. FY 2025 includes a 3.5 cent property tax rate increase to cover
the anticipated debt service associated with transportation projects. These rate increases
(shown in blue font in the chart above) are timed to coincide with the issuance of the voter
approved bonds. The third row shown in blue is not a rate increase. It shows additional tax
revenues expected from a commercial I retail project which is expected to start generating tax
revenue in FY 2025. The benefit of these increases is shown in the outer years of the financial
plan as well.
The proposed Five Year Plan does not assume any additional revenues resulting from the Wake
County property revaluation which will occur in FY 2024. While it is likely that the Town's
assessed value will increase for FY 2025, the Town will calculate a revenue-neutral rate while
considering the projected needs prior to setting the tax rate as part of the budget process.
FUQUAY-\/AP 1 NA FY 2024 BUDGET
70

Sales Tax - 4.0% annual rate of growth
Sales Tax represents 20% of General Fund revenues. It is important to note that the State of
North Carolina restricts local government taxing authority. Only the State and counties have the
authority to levy sales tax, municipalities do not. Retailers remit tax collections to the State which
distributes sales tax revenues to counties based on where purchases were made. Counties in
turn allocate sales tax revenues to municipalities based either on its property base (assessed
value) or population. Wake County, where Fuquay-Varina is located, allocates on a population
basis. This is good for the Town as our population is growing which will increase our
proportionate share of Wake County sales tax revenues. Sales tax revenue has cooled, while
estimated FY 2023 receipts are over 10% more than prior year actuals and 4%more than budget
estimates, FY 2023's percent increase is significantly lower than FY 2022's increase of 30%.
This revenue is conservatively projected to increase annually at 4% in FY 2024 with an
average of 4% across the Five Year Plan. With Wake County's economic forecast remaining
strong and the anticipated increase in Town population, actual Sales Tax receipts are
expected to exceed its conservative projection enhancing our confidence that revenues will
support the long range financial operating plan's anticipated expenditures.
Permits and Fees — Varied annual rate of growth
The Town's permit and fee revenue, consisting mainly of building permit and inspection fee
receipts, represents 5.5% of General Fund revenues. While this revenue spiked over the past
two fiscal years, residential permits declined significantly in FY 2023 primarily due to the rise in
interest rates. Commercial activity increased in FY 2023. Despite this decline, FY
2023 estimated receipts represent the second highest year in Town history. Without a clear
picture of when housing market will stabilize, Permit and Fee revenue was budgeted at a 2%
decrease in FY 2024. The outer years of the financial plan are budgeted at a level $3.5
million estimate. These annual estimates are based on known development projects currently
in the pipeline and their projected development timeline. Wake County was the second
fastest growing county in the US between 2020 and 2022 and is continuing that growth.
This growth and the housing shortage accompanying it ensures these projects will be built.
Staff will continue to monitor building permit and inspections activity to fine tune estimates in
the five year financial plan.
Sales and Services — 5% annual rate of growth
These revenues represent 9.5% of General Fund revenues. They are comprised mostly of
Sanitation and Parks and Recreation fees. The Sanitation fee was adjusted in FY 2024 ensure
fees continue to support the cost of this service. Revenues in the outer years of the
financial plan only increase by the estimated growth in customers. Parks and Recreation fees
revenues are increasing in proportion to the rise in demand for PRCR programs which surged
in FY 2023 due to population growth.
The above revenues comprise over 80% of General Fund revenues, the remaining
revenue sources are small and more easily estimated. Their projections based on a
more traditional analysis of current and future financial trends and conditions as well as
historical actuals.
FUQUAY-\//-AR 1 NA FY 2024 BUDGET
71

General Fund 5 Year Expenses 2024 2025 2026 2027 2028
Governing Body $545,233 $ 550,685 $ 556,192 $ 561,754 $ 567,372
Administration 1,005,604 1,045,828 1,087,661 1,131,168 1,176,414
Communications 517,745 532,213 547,093 562,398 578,140
Finance 1,022,058 1,058,094 1,095,475 1,134,252 1,174,480
Engineering 1,680,136 1,685,562 1,844,069 1,804,739 2,243,654
Public Buildings 730,725 693,828 719,371 745,893 831,960
Central Services 3,113,785 1,642,113 1,707,798 1,776,110 1,847,154
Information Technology 1,796,686 2,014,521 1,884,785 2,027,573 2,092,985
Human Resources 796,480 934,893 968,296 1,002,956 1,038,920
Police 10,635,454 11,511,577 12,608,983 13,668,912 14,874,642
Fire 8,912,827 9,421,021 10,531,455 12,016,324 12,537,579
Inspections 2,547,954 2,686,052 2,788,023 3,020,937 3,133,569
Streets 2,788,159 2,898,965 2,745,283 3,029,212 3,504,995
Powell Bill 1,232,500 1,347,500 1,078,500 1,262,508 1,167,500
Debris Collection 997,301 1,035,167 1,294,507 1,313,271 1,612,093
Sanitation 3,518,728 3,680,072 4,007,462 4,158,292 4,520,141
Planning 1,517,830 1,954,480 2,092,339 2,342,034 2,259,176
Economic Development 337,186 350,673 364,700 379,288 394,460
Downtown Development 414,250 430,820 448,053 465,975 484,614
Parks and Recreation 5,708,453 6,062,896 6,456,496 6,873,387 7,255,477
Arts Center 1,063,846 1,055,207 1,103,725 1,137,829 1,831,584
Subtotal $ 50,882,940 $ 52,592,169 $ 55,930,268 $ 60,414,813 $ 65,126,909
Existing Debt $ 3,793,240 $ 3,698,267 $ 3,596,050 $ 3,402,782 $ 3,048,391
New Debt 793,564 4,158,773 5,074,023 4,964,273 4,854,523
Transfers 295,000 295,000 295,000 295,000 295,000
Capital Projects 2,026,895 11,360,000 3,100,000 1,950,000 1,980,000
Bond Capital Projects 13,978,000 7,915,000 - - 10,031,185
Appro to FB-GF 1,411,318 1,584,798 - - -
Total Projected Expense $73,180,957 $81,604,007 $67,995,341 $71,026,868 $85,336,009
Total Projected Revenues $73,180,957 $81,604,007 $67,995,341 $71,026,868 $85,336,009
Revenues Over(Under)Expenses $0.00 $0.00 $0.00 $0.00 $0.00
Impact on Unassigned General Fund Balance
Estimated Beginning Fund Balance $30,028,187 $31,439,505 $24,006,534 $24,006,534 $24,006,534
Change in Fund Balance 1,411,318 (7,432,971) - - -
Estimated Ending Fund Balance $31,439,505 $24,006,534 $24,006,534 $24,006,534 $24,006,534
Departmental base expenditures were projected at a 3% rate of growth annually. Also included
are new personnel, programs, capital equipment, and capital project costs departments
identified as needing to achieve strategic plan objectives. These costs are compounded in the
following fiscal years as needed. For example, new personnel costs increase 7% annually after
their addition to the plan.
FUQUAY-\/AP 1 NA FY 2024 BUDGET
72

2023-2024 2024-2025 2025-2026 2026-2027 2027-2028
Enterprise Revenues
Water Sales $8,783,590 $11,162,371 $13,140,462 $15,432,555 $18,085,525
Water Sales(Rate Increases) 1,756,717 1,339,484 1,576,855 1,851,906 904,276
Water Tap Fees 515,250 515,250 472,000 472,000 472,000
Water Meter Sales 75,000 75,000 75,000 75,000 75,000
Interest Earnings 300,000 149,278 214,365 254,902 252,515
Penalties 165,000 165,000 165,000 165,000 165,000
Misc.Revenue-Leases and Insurance 150,000 80,000 80,000 80,000 80,000
Sewer Sales 9,155,880 11,864,404 14,188,863 16,900,346 20,058,264
'Sewer Sales(Rate Increases; 1,831,175 1,423,728 1,702,663 2,028,041 1,002,913
Sewer Tap Fees 167,550 167,550 167,550 167,550 167,550
Sewer Pre-Treatment Fees 1,800 1,800 1,800 1,800 1,800
Operating Fund Reserve Appropriation - - - - -
Total Revenues $22,901,962 $26,943,865 $31,784,558 $37,429,100 $41,264,843
Enterprise Expenses
Operations 13,386,755 14,147,567 14,994,316 15,819,737 16,998,005
New Positions 195,000 195,000 170,600 474,000 335,000
Capital Equipment 493,000 329,000 452,000 625,000 485,000
Transfer to Capital Projects 1,403,063 4,967,411 4,523,833 3,855,230 8,988,021
Transfer to Debt Service 1,595,440 10,598,581 10,817,419 14,350,472 16,033,793
Designated for Fund Balance 228,039 - - - -
Total Expenditures $17,301,297 $30,237,559 $30,958,168 $35,124,439 $42,839,819
Revenue Over(Under)Expenditures $5,600,665 ($3,293,694) $826,390 $2,304,661 ($1,574,976)
Estimated Beginning Fund Balance $ 8,489,214 $ 14,089,879 $ 10,796,185 $ 10,796,185 $ 11,622,575
Change in Fund Balance 5,600,665 (3,293,694) 826,390 2,304,661 (1,574,976)
Estimated Ending Fund Balance $ 14,089,879 $ 10,796,185 $ 11,622,575 $ 13,100,846 $ 10,047,599
During the FY 2024 budget process, the Town engaged a consultant to develop a utility rate
model to confirm the rates needed to support the Town's strategic plan. The above rate
adjustments reflect the rates needed to cover operational and planned major capital project
costs. Rates will increase 20% in FY 2024, and are projected to increase 12% in FY 2025, FY
2026, and FY 2027 before stepping down to a 5% increase in FY 2028. These rates are higher
than the estimates from the FY 2023 rate model projection due to the significant increase in the
cost of the major water and wastewater capital projects needed to secure the Town's future
prosperity. The rate model also factors in the estimated increase to the customer base due
to residential development trends.
As with the General Fund expenditures, Utility Fund departmental base expenditures were
projected at a 3% rate of growth annually. Also included are new personnel, programs, capital
equipment, and capital project costs departments identified as needing to achieve strategic plan
objectives. These costs are compounded in the following fiscal years as needed. For example,
new personnel costs increase 7% annually after their addition to the plan.
I UWIVWIUL LUIV17 t 'I-IV(7L I-IIVAIVU, - L LIAbILI I Its
LOCAL GOVERNMENT EMPLnVEES'RETIREMENT SYSTEM
Fuquay-Varina is a participating employer in the statewide Local Governmental Employees'
Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan
administered by the State of North Carolina. Plan fiduciary net position as a total percentage of
EUQUAY-\'AR 1 NA FY 2024 BUDGET
73

the total pension liability is 95.5%. Retirement obligations are paid from the State fund. The
Town's liability is its contribution to the State fund. Fuquay-Varina's FY 2022 Annual
Comprehensive Financial Report (ACFR) describes this benefit in Note 5A beginning on page
63 (printed page 47).
The LGERS Board adopted a rate stabilization plan in July 2021, projecting needed local
government employer contribution rates through FY 2027. For budgeting purposes, these rates
have been incorporated into Fuquay-Varina's FY 2024 annual budget and five year plan.
LAW ENFORCEMENT OFFICERS SPECIAL SEPARATION ALLOWANCE
Fuquay-Varina administers a public employee retirement system (the "Separation Allowance"),
a single employer defined benefit pension plan that provides retirement benefits to Fuquay-
Varina's qualified sworn law enforcement officers under the age of 62 who have completed at
least 30 years of creditable service or have attained 55 years of age and completed five or more
years of creditable service. The plan does not issue a separate standalone financial report.
Fuquay-Varina uses a pay-as-you-go approach to funding this liability. Fuquay-Varina's FY 2022
Annual Comprehensive Financial Report (ACFR) describes this benefit in Note 12B beginning
on page 67 (printed page 51).
OTHER POST-EMPLOYMENT BENEFITS(OPEB)
Fuquay-Varina administers a single employer defined benefit healthcare plan ("the health plan").
Fuquay-Varina's Board has the authority to establish and amend the benefit terms and financing
requirements. Fuquay-Varina uses a pay-as-you-go approach to funding this liability. Fuquay-
Varina's FY 2022 Annual Comprehensive Financial Report describes this benefit in Note 12E
beginning on page 73 (printed page 57).
OTHER LONG-RANGE FINANCIAL PLAN RISKS
While our financial models assist with anticipated challenges, other risks to our plan might
include but are not limited to:
• On-going revenue and expenditure uncertainty
• Potential inflation and recession risk
• Unforeseen regulatory or capital needs
• Unforeseen technological needs
• Unfunded state and/or federal mandates
Fuquay-Varina is confident in its ability to manage its long-term liabilities and risks in a pay-as-
you-go approach. Our strong financial position gives the Town great flexibility in responding to
emergencies as well as unanticipated challenges or opportunities. Due to our size, separate
trust funds are not yet necessary to mitigate the long-term risks retirement and other benefits
pose. Should trust funds become necessary fund balance is available to seed them.
FUQUAY—\/AR 1 NA FY 2024 BUDGET
74

IMPACT OF THE LONG RANGE OPERATING FINANCIAL PLAN
The long range financial plan concerning the General Fund is fiscally sound as it is balanced for
the full five year timeframe. The annual use of fund balance is reasonable as it is less than the
one-time requests, capital equipment, and capital project requests in each fiscal year that are
eligible for fund balance use.
The long range financial plan concerning the Utility Enterprise Fund is also fiscally sound. The
Enterprise Fund is building fund balance in accordance with a rate stabilization plan, as the Town
generates the revenue capacity to support planned debt service for major water and wastewater
capacity investments. Capital projects in the strategic plan will need the issuance of up to $280
million in revenue bonds to support major water and wastewater capacity investments. The
appropriation of fund balance in FY 2025 and FY 2028 are offset by surpluses in other fiscal
years with a net addition of over $4 million to fund balance over the course of the five year
financial plan. The use of fund balance is reasonable as it is less than the one-time requests,
capital equipment, and capital project requests in each fiscal year that are eligible for fund
balance use. The value of the long range operating financial plan is the ability to see future
financial conditions and mitigate any imbalances before they occur. The Utility Enterprise Fund
Five Year Plan was developed using very conservative customer growth and revenue
assumptions, with the objective of developing a financial plan resilient enough to meet debt
service and operational obligations should customer and revenue growth fall below current and
forecasted levels. Staff will continue to review revenue estimates, expense projections, and
project timing to ensure the plan remains fiscally strong.
The two operating funds above are the clearest indication of the impact of the long range
operating financial plan. Other budgeted funds also use and carry fund balances including the
General Capital Reserve's Recreation Fee in Lieu (collected and used within specific geographic
zones) revenue sources and the Utility Capital Reserve's Water and Sewer System
Development Fee revenue sources. Projections of their fund balances can be found in the
Capital Projects' section of this book.
FUQU/\Y-\/AR 1 NA FY 2024 BUDGET
75

GENERAL OPERATING FUND
These charts illustrate FY 2024 General Fund revenues by major source and expenditures by
department. For further information see the following fund summary.
Interest Miscellaneous
<1% <1% Powell Bill FBAppropriated
Sales and Service � <1%
10%
Permits and Fees
6%
Restricted IG1
7% \
Unrestricted IG�!
1% Ad Valorem Tax
Other Taxes_ 50%
5%
Sales Tax
20%
General Fund Revenues
General Fund Approto Gov Body Admin Comm
Expenses Fund Balance <1% 2% 1%
4%
Finance
Transfer to Cap Proj 2% Engineering
0% 3%
Downtown Dev Debt Serv,
<1% 8O/° 1 Public Bldgs
Econ Dev 1%
<1% Central Sery
Arts Center. 5%
2% SIT
kfr. - 3%
PR&CRC �HR
10% 1%
Planning
3% Police
Sanitation
6%
Yard Debris
2%
Powell Bill
2%
Streets
5% Inspections
4%
FUQUAY—\/AR i NA FY 2024 BUDGET
76

GENERAL OPERATING FUND SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Actual Adopted Amended Estimated Adopted
REVENUES
Ad Valorem Taxes
Property Tax $15,862,153 $18,845,069 $20,378,789 $24,189,894 $24,189,894 $24,189,894 $28,539,372
Vehicle Fee 649,700 808,048 840,895 870,000 870,000 937,775 1,001,564
Penalties and Interest 35,077 41,322 45,313 30,000 30,000 30,000 30,000
Ad Valorem Total $16,546,930 $19,694,439 $21,264,997 $25,089,894 $25,089,894 $25,157,669 $29,570,936
Other Taxes and Licenses
Sales Tax $6,079,438 $7,403,245 $9,852,592 $10,216,164 $10,216,164 $11,186,708 $11,634,177
Utility Sales Tax 1,280,388 1,332,857 1,414,381 1,389,992 1,389,992 1,482,738 1,512,393
Video Sales Tax 173,130 239,621 291,802 276,513 276,513 318,224 324,588
Rental Vehicle Tax 52,333 44,140 62,520 58,289 58,289 52,333 60,000
Payment in Lieu of Tax - - - - - - -
Other Taxes and Licenses Total $7,585,289 $9,019,863 $11,621,296 $11,940,958 $11,940,958 $13,040,003 $13,531,158
Intergovernmental
Unrestricted
ABC Distribution $135,527 $190,345 $214,633 $258,152 $258,152 $183,070 $200,000
Beer and Wine Tax 115,853 117,399 137,336 113,959 113,959 113,959 115,000
Solid Waste Disposal Tax 20,251 21,655 26,907 22,640 22,640 27,128 22,500
Court Fees 19,602 12,121 9,425 16,200 16,200 8,983 13,000
Unrestricted Total $291,233 $341,520 $388,301 $410,951 $410,951 $333,140 $350,500
Restricted
Police Grants $77,781 $59,620 $127,454 $75,676 $239,126 $299,431 $224,480
Fire Grants 49,547 515,992 65,969 77,750 223,633 145,883 273,952
Fire District 2,031,128 1,986,039 2,138,607 2,526,563 2,526,563 2,526,563 2,694,718
Powell Bill 713,090 714,796 1,003,556 913,482 913,482 1,050,303 1,050,302
Other 285,828 757,469 575,899 470,000 475,000 530,000 -
Restricted Total $3,157,375 $4,033,916 $3,911,485 $4,063,471 $4,377,804 $4,552,180 $4,243,452
Permits and Fees
Building Permits $1,389,434 $2,115,681 $2,499,017 $3,446,600 $3,446,600 $2,197,706 2,115,681
Inspections 72,650 150,770 328,850 413,050 413,050 413,050 524,322
Fire Inspections 16,190 12,455 14,145 15,000 15,000 13,486 15,000
Transportation Inspections 185,357 73,280 23,045 15,000 15,000 94,037 25,000
Utility Inspections 154,054 88,956 35,462 50,000 50,000 96,958 60,000
Other 424,976 340,954 274,603 344,425 344,425 388,332 387,386
Permits and Fees Total $2,242,661 $2,782,096 $3,175,122 $4,284,075 $4,284,075 $3,203,569 $3,127,389
Sales and Services
Sanitation/Recycling Fees $2,031,431 $2,288,485 $2,557,169 $3,593,136 $3,593,136 $3,818,917 $4,033,753
Arts Center Fees 123,116 88,297 252,551 196,936 272,736 334,750 336,000
Parks and Recreation Fees 347,997 333,973 945,443 750,893 750,893 843,500 943,600
Economic/Physical Development Fees 139,780 169,475 180,735 183,113 183,113 115,372 129,580
Event Salary Reimbursement 24,735 11,424 23,487 24,735 24,735 24,735 25,000
Sales and Services Total $2,667,059 $2,891,654 $3,959,386 $4,748,813 $4,824,613 $5,137,274 $5,467,933
Investment Earnings $439,554 $13,931 $80,358 $15,000 $15,000 $496,455 $800,000
Miscellaneous
Donations $34,437 $10,210 $26,878 $0 $8,900 $7,236 $8,500
Insurance or Restitution 50,943 42,306 94,591 - 27,925 61,653 -
Surplus Property Sales 83,694 12,831 403,855 - - 65,242 -
Other 103,146 55,358 67,573 60,000 113,996 53,397 113,996
Miscellaneous Total $272,220 $120,705 $592,897 $60,000 $150,821 $187,527 $122,496
TOTAL REVENUES $33,202,321 $38,898,124 $44,993,842 $50,613,162 $51,094,116 $52,107,817 $57,213,864
77

GENERAL OPERATING FUND SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Actual Adopted Amended Estimated Adopted
EXPENDITURES
General Government
Governing Body $280,235 $252,327 $337,854 $358,263 $361,814 $343,723 $544,977
Administration 575,732 722,313 801,579 905,133 905,698 887,584 1,043,466
Communications 253,935 238,163 286,423 473,242 473,559 426,203 517,745
Finance 412,728 473,430 646,848 902,012 912,628 866,997 1,022,058
Engineering 734,913 728,601 1,042,671 1,295,954 1,318,756 1,252,818 1,680,136
Public Buildings 370,415 417,239 550,720 633,655 659,075 593,168 730,725
General Government Total $2,627,958 $2,832,073 $3,666,095 $4,568,259 $4,631,530 $4,370,493 $5,539,107
Public Safety
Police $5,167,545 $5,948,817 $6,906,952 $8,603,466 $9,316,900 $9,130,562 $10,635,789
Fire 5,775,038 5,727,326 7,653,273 7,761,326 8,224,806 8,048,780 8,912,827
Inspections 1,203,809 1,503,176 1,692,804 2,393,180 2,490,689 2,366,155 2,547,954
Public Safety Total $12,146,392 $13,179,319 $16,253,029 $18,757,972 $20,032,395 $19,545,497 $22,096,570
Transportation
Streets $1,344,756 $1,263,784 $1,737,550 $2,622,272 $2,736,229 $2,661,904 $2,788,159
Powell Bill 440,465 511,106 1,100,914 1,255,900 1,389,860 1,250,874 1,232,500
Transportation Total $1,785,221 $1,774,890 $2,838,465 $3,878,172 $4,126,089 $3,912,778 $4,020,659
Environmental Protection
Debris Collection $647,955 $568,331 $674,712 $906,619 $910,354 $911,747 $997,301
Sanitation 1,701,518 2,066,211 2,459,087 3,107,772 3,346,584 3,279,652 3,516,178
Environmental Protection Total $2,349,473 $2,634,543 $3,133,799 $4,014,391 $4,256,938 $4,191,399 $4,513,479
Economic and Physical Development
Planning $797,968 $855,761 $1,228,409 $1,636,322 $1,636,475 $1,472,828 $1,517,830
Economic Development 98,213 144,438 214,628 320,582 368,874 350,430 337,186
Downtown Development 110,872 183,492 381,874 291,912 299,259 284,296 414,250
Ec.and Phys.Development Total $1,007,052 $1,183,690 $1,824,911 $2,248,816 $2,304,608 $2,107,554 $2,269,266
Cultural and Recreational
Parks,Recreation,and Cultural Resources $3,309,190 $3,486,910 $4,423,180 $4,816,115 $5,213,085 $4,952,431 $5,715,143
Arts Center 489,751 429,335 704,036 770,044 878,888 782,126 1,063,846
Cultural and Recreational Total $3,798,941 $3,916,245 $5,127,216 $5,586,159 $6,091,973 $5,734,557 $6,778,989
Central Services
General $798,611 $911,573 $1,184,414 $3,102,132 $2,334,006 $1,451,700 $3,113,785
Information Technology 954,722 1,282,412 1,274,028 1,632,850 1,757,610 1,623,893 1,796,686
Human Resources 268,626 384,833 517,232 742,886 761,406 723,336 796,480
Central Services Total $2,021,959 $2,578,818 $2,975,674 $5,477,868 $4,853,022 $3,798,929 $5,706,951
Special Contributions $69,500 $97,750 $0 $0 $0 $0 $0
Disaster Recovery $29,086 $0 $0 $0 $0 $0 $0
TOTAL EXPENDITURES $25,835,582 $28,197,328 $35,819,187 $44,531,637 $46,296,555 $43,661,207 $50,925,021
Revenues Over(Under)Expenditures $7,366,739 $10,700,796 $9,174,655 $6,081,525 $4,797,561 $8,446,610 $6,288,843
OTHER SOURCES(USES)
Transfer from Capital Reserves $417,390 $2,278,150 $805,000 $403,688 $403,688 $0 $0
Transfer from Capital Projects - - 1,338 - - - -
Installment Purchase Proceeds - - 1,279,000 - - - -
Transfer to Debt Service Fund (3,685,375) (3,488,031) (3,109,302) (4,024,631) (4,024,631) (4,024,631) (4,856,540)
Transfer to Capital Reserves - (3,500,000) (3,500,000) - - - -
Transfer to Capital Projects (1,859,714) (667,689) (2,973,250) (904,500) (2,026,522) (2,026,522) (220,000)
($5,127,699) ($5,377,570) ($7,497,214) ($4,525,443) ($5,647,465) ($6,051,153) ($5,076,540)
NET CHANGE IN FUND BALANCE $2,239,040 $5,323,226 $1,677,441 $1,556,082 ($849,904) $2,395,457 $1,212,303
BEGINNING FUND BALANCE $18,393,024 $20,632,064 $25,955,289 $27,632,730 $27,632,730 $27,632,730 $30,028,187
ENDING FUND BALANCE $20,632,064 $25,955,289 $27,632,730 $29,188,812 $26,782,826 $30,028,187 $31,240,490
78

GENERAL FUND REVENUE SOURCES AND TRENDS
As a matter of practice and budget philosophy, revenue estimates are conservative, but
realistic to ensure funds are available to support General Fund activities without the need to
use fund balance for reoccurring expenditures. FY 2024 budgeted general fund revenues are
projected to increase almost 10% over estimated FY 2023. This is mainly due to estimated
increases in Ad Valorem (Property) and Sales Tax revenues.
Descriptions of major revenue sources and their related trends follow. These revenues
comprise 85% of budgeted General Fund revenues. Graphs showing four years of actual data,
FY 2023 estimated revenues, and FY 2024 budgeted revenues appear for each revenue.
Ad Valorem Taxes = $28,569,372
$30,000,ou.
This chart
$z5,000,000 combines
$zo,000,000
$15,000,000
$io,000,000
currePenaltiesnt year
Ad Valorem
Taxes, Prior
Year Property
Taxes and
&
Interest.
$5,000,000
$0
2019 2020 2021 2022 2023 2024
Estimated Adopted
The ad valorem (property) tax on property is Fuquay-Varina's most significant revenue source,
representing 50% of all general fund revenues. Fuquay-Varina's FY 2024 property tax rate is
45.5 cents per $100 of assessed property. The Wake County tax assessor provides a
projection of the assessed value (tax base) for the next budget year. Our FY 2024 total
assessed property value is estimated at $6.3 billion, an increase of 11% over Wake County's
FY 2023 year-end estimate. The FY 2024 budget includes a 18% projected increase in
property tax revenue over FY 2023 estimated revenues. FY 2024 property tax revenue
projections assume a 99.82% collection rate an increase from FY 2023's rate of 99.76%.
Since FY 2018 this revenue source averaged an almost 15% annual increase. The increase in
revenues prior to FY 2023 are a result of natural growth, the rise in the assessed value, not an
increase in property tax rate. The tax rate increased 3 cents in FY 2023 to fund construction
and operations of a fourth fire station. The increase in estimated property tax revenue in FY
2024 is a combination of natural growth and a tax rate increase of 3 cents to 45.5 cents per
$100 of assessed value to support payment of voter approved debt funding the construction
and operations of a new community center. Both of these 3-cent tax rate increases were
identified and planned for several years as a part of the Five Year Financial Plan similar to the
FJQ JAY-VAR I N4 FY 2024 BUDGET
79

anticipated tax increase in FY 2025 to fund voter approved debt associated with vital
transportation projects.
In accordance with North Carolina General Statute 160A-209, Fuquay-Varina levies property
taxes on July 1, the beginning of our fiscal year, for property in place as of January 1 of that
same calendar year. Fuquay-Varina property taxes are assessed and collected by the Wake
County Revenue Department and are remitted to the Town throughout the year. These
property taxes are separate from those levied by Wake County. Property taxes are due on
September 1, but interest does not accrue until the following January 6.
The North Carolina Division of Motor Vehicles (DMV) is responsible for collecting motor vehicle
taxes collection. Vehicle tag renewals and vehicle property taxes are now combined on the
same bill sent by DMV.
Sales Tax=$11,634,177
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
2019 2020 2021 2022 2023 2024
Estimated Adopted
Sales Tax represents 20% of total General Fund revenues. The State of North Carolina
restricts local government taxing authority. Only the State and counties have the authority to
levy sales tax, municipalities do not. There is a three-month lag from the time retail purchases
are made to when municipalities receive sales tax receipts. Retailers collect taxes and the next
month remit tax collections to the State which distributes sales tax revenues a month later to
counties based on where purchases were made. Counties allocate sales tax revenues to
municipalities based either on its property base (assessed value) or population. Fuquay-Varina
is in Wake County which allocates on a population basis. Our Town's population growth will
increase our proportionate share of Wake County sales tax revenues. Sales tax revenue has
risen an average of 15% since FY 2018 with FY 2022 increasing 33% over FY2021. Estimated
FY 2023 receipts are over 13% more than prior year actuals. Sales Tax year over year growth
began to decline during FY 2023, therefore FY 2024's Adopted budget projection is a
conservative 4% over FY 2023's year-end estimate. However, Wake County's economic
forecast remains strong, and the Town population continues to increase, so Sales Tax receipts
are expected to exceed its conservative projection.
FJQ JAY-VAR I N4 FY 2024 BUDGET
80

Fire District=$2,694,718
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2019 202 202 I 2022 2023 2024
Estimated Adopted
The Town of Fuquay-Varina Fire Department partners with Wake County to provide fire
services outside of Town limits. In return Wake County reimburses FVFD a percentage of their
operating and other eligible expenses detailed in an interlocal agreement. FY 2024 revenues
reflect preparation for the opening of Fire Station #4.
Building Permits =$2,115,681
$3,uuu,uuc
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2019 2020 2021 2022 2023 2024
Estimated Adopted
Building Permit revenue averaged an annual increase of 20% over the past five years. Building
permit activity in FY 2022 set records for Fuquay-Varina. Residential permits declined
significantly in FY 2023, primarily due to the rise in interest rates, while Commercial activity
increased. Without a clear picture of when the housing market will stabilize, Permit and Fee
revenue was conservatively budgeted at a 4% decrease in FY 2024. Wake County was the
second fastest growing county in the US between 2020 and 2022 and is continuing that
growth. This growth and the housing shortage accompanying it, evidenced by the large
FJQ JAY-VAR I N4 FY 2024 BUDGET
81

number of development projects under review or approved and eligible for permits, ensures
this revenue will continue to remain at near record levels for the foreseeable future.
Sanitation Fees =$4,033,753
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2019 20' 202 2022 2023 2024
Estimated Adopted
Sanitation Fee revenue averaged an annual increase of 9% increase prior to FY 2023
reflecting growth in the Town's customer base. FY 2023 revenues reflect a Sanitation fee
increase from $14.25 to $20 to ensure fees support the cost of this service. FY 2024 revenues
reflect a $1 fee increase as well as continued growth in customers which necessitated the
addition of a new Sanitation crew and truck.
FJQ JAY-VAR I N4 FY 2024 BUDGET
82

IIII2111E ' •
L�1
12 1" 1 GOVERNING BODY ow
Vision
m
Fuquay-Varina is a dynamic, inclusive, and caring community WeK.othe
•
that provides exceptional service while offering economic • FUouw-VARlN4
opportunity, sense of place, and an unmatched quality of life.
ice`
Mission
The Town of Fuquay-Varina will improve quality of life by developing and maintaining robust infrastructure,
committing to environmental and fiscal sustainability, fostering economic and cultural opportunities, providing
safety and security, and delivering exceptional municpal services, all while continuing to be a dash more.
The Governing body is comprised of the Mayor and five Board of Commissioners and is elected by the
registered voters of Fuquay-Varina. The Board establishes policies and programs for effective delivery
of Town services, approves the annual financial plan, sets the property tax rate and all user fees, and
establishes all ordinances, rules, and regulations for the welfare of Fuquay-Varina. The Board also
appoints the Town Manager and Town Attorney.
Core Values
• Effective Government and Governance
• Fiscal Strength
• Safety and Security
• Economic Vitality
• Preserving Character and Identity
• Quality of Life
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $153,536 $162,288 $ 169,960 $ 193,264 $ 203,309 $ 215,252
Contracted Services 42,485 4,903 56,443 24,000 4,340 141,500
Projects - - 19,748 21,000 6,000 21,000
Professional Services - - - 8,000 8,000 8,000
Operating Expenses 84,214 85,136 91,702 115,550 122,074 159,225
Capital - - - - - -
14 . , . • .• :• 1 : , . :
FUQU4Y-VAR ! N4 FY 2024 BUDGET
83

oo=uu=
1219M1111 GOVERNING BODY tti�
nu=uu=
-1111 0
Fuquay-Varina Goals and Objectives
f{
44 Effective Government and Governance
61916'1 Provide exceptional customer service while enhancing citizen engagement.
Advance operational efficiency and effectiveness by improving internal business
processes and integrating technology solutions.
Recruit, retain, and develop skilled, knowledgeable, motivated, and public service-
oriented Town staff.
f tit
Fiscal Strength
ti
Maintain and improve the Town's bond rating.
Leverage grant opportunities and partnerships to increase return on investment.
Ensure fiscal sustainability and resilience through effective long term financial planning.
0 Safety and Security
Cultivate a safe and inclusive community.
Apply innovation and technology to enhance public safety.
Invest in public safety facilities and infrastructure.
Economic Vitality
Maintain a growing economy by providing the necessary infrastructure to support short,
medium, and long-term growth.
Provide supportive land use planning and development regulations.
Promote Fuquay-Varina as a destination for investment to support diverse growth and
sustainability.
all
I Preserving Character and Identity
Prioritize community design and character through effective land use planning policies.
Encourage the development community to integrate natural landscape, site, and
character conditions into new development.
Partner with local, regional, and state organizations to promote community heritage and
preservation.
ta Quality of Life
Offer diverse and inclusive recreational and cultural programming.
Develop recreational facilities that are in geographic proximity to all residents.
Develop a creative and artistic identity for downtown and the Town as a whole.
FUQUAY-\/4R i N4 FY 2024 BUDGET
84

llllllll lllllll t
llll125 ADMINISTRATION IIII=1111
Missior "
The Administration Department carries out the vision and
direction established by the Town Board. It is responsible for V.„„:"
implementation of the strategic plan and other Board initiatives;
manages Town operations and resources to maximize value '
for the tax dollar; models good leadership and management
and inspires staff to achieve the highest standards of gop governments
in the
govemmints in the
efficiency, effectiveness, and customer service; cultivates unviteoverallasq :raze
and e
communication and develops partnerships to enhance value of ice,
provided ident<
community engagement; and provides information to foster
public trust. NATION TOP
PERFO R
TOWN ORGANIZATION CHART 2023 -A
Fuquay-v arina,NC
Citizens of Fuquay-Varina
111,1111.10111
lorrt�.
Mayor and Board of Commissioners
Town Manager
Assistant Town Manager ] Assistant Town Manager
Administration J Finance r Economic Development
Human Resources I Information Technology Engineering
Communications I Parks and Recreation Planning
LPolice Arts Center Inspections
Fire Public Works Public Utilities
Significant Service Level Changes
• None
FUQU4Y-\/nR I N4 FY 2024 BUDGET
85

11112l�ll1111-�lll (ill O ��� ADMINISTRATION
(l ••
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $532,962 $675,593 $ 719,986 $828,718 $ 822,297 $ 921,261
Professional Services - - - - - 10,000
Operating Expenses 42,770 46,720 81,593 76,980 65,287 112,205
Grand Tot• $575,732 $722,313 $801,579 $905,698 $887,584 $1,043,466
Major Accomplishments
The best measure of success of municipal administration is community satisfaction. Fuquay-
Varina was awarded the Leading the Way Award recognizing its "outstanding achievement in the
delivery of services to residents. Recipients of the award rank in the top 10% of all local govern-
ments in the United States with regard to their composite performance in three core areas:
• satisfaction with the overall quality of services
• satisfaction with customer service provided by employees, and
• satisfaction with the value residents think they receive for local taxes and fees.
Fuquay-Varina Community Survey results revealed:
• 92% feel the Town is a good place to live compared to the national average of 50%
• 86% feel the Town is a good place to raise children compared to the national average of 62%
• 91% have an overall feeling of being safe in Town compared to the national average of 68%
Key Initiatives
• Ensure major capital projects remain on schedule including construction of Fire Station
#4, Community Center North, Transportation infrastructure and water/ sewer capacity
expansion projects vital to ensuring the continued economic vitality of the Town
• Continue development of departmental strategic plans, improving performance measures
and internal business processes, and integration of technology solutions
• Agressively pursue grant opportunities and partnerships to diversify revenues available to
support strategic plan goals and objectives
FUQUAY-VAR 1 NA FY 2024 BUDGET
86

IIII=IIII= ow%
=I�II=_OII COMMUNICATIONS
IIII=IIII= I���� -., .
IIII=IIII
Miccinr
The Communications Department strives to provide clear, concise,
p
proactive, transparent, and timely information in a professional manner to
our residents, businesses, media outlets,and employees by embracing its -ll-�i i
core values of Honesty/ Integrity, Communication, Creating Community p <.
Engagement, Safety, Teamwork, and Creativity.
��jjw'l'I .
11
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Provide exceptional customer service while enhancing citizen engagement.
Objective Use the Town's Let's Talk FV engagement platform to provide citizens the opportunity to get involved,
commu ' .te ideas, and collaborate on Fu•ua -Varina communi •ro'ects and initiatives.
Measure Number of engagement opportunities(projects,which may be multi-year) 19 21 24
Measure Number of visits to Let's Talk FV website 25,800 28,750 30,000
GOAL Promote Fuquay-Varina as a destination for investment to support growth and sustainability.
Objective Drive users to the Town of Fuquay-Varina website as the Town's primary source of information.
Measure Number of page views on the Town's website 1,667,525 1,750,901 1,835,000
GOAL Cultivate a safe and inclusive community.
Objective Utilize a wide ranee of social media •latforms to reach a diverse emu. of•eo•le
Measure Combined number of posts to Facebook, Instagram, and Twitter 3,961 4,050 4,150
Measure Combined number of fans on Facebook, Instagram, and Twitter 65,145 69,000 72,000
Major r���u���plis►u��r►���
• Completed Community Satisfaction Survey to measure satisfaction with major Town services
• Added Communications and Marketing Specialist focused on social media and Town website to
enhance Town outreach, i.e., collaborated with Public Works to make its website more user friendly
• Expanded Black History Month Program to include stakeholder group and 7-video educational series
• Utilized LetsTalkFV communitiy engagement platform to conduct 19 projects and 17 surveys,
including surveys regarding the Downtown Generational Plan, Parks and Recreation 2040 Master
Plan, and the Hilltop Needmore Town Park and Preserve Master Plan
• Launched the Mayor's Monthly Chat series to inform citizens on a variety of topics
• Launched the Town's mobile app to provide another avenue of communication for Town residents
FUQU4Y-\/4R ! N4 FY 2024 BUDGET
87

111121111E--
-AVM 110_011 COMMUNICATIONS rm$mi
Communications - 2 FT FUQUAY_V R,Na
S.
Communications Director- 1 FT "
Comm. / Marketing Specialist - 1 FT e � :
}
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $ 75,688 $ 119,735 $ 132,030 $ 266,551 $ 226,607 $279,457
Projects 82,820 38,475 50,012 55,000 40,034 80,000
Professional Services 25,965 18,300 29,161 47,517 57,636 52,500
Operating Expenses 69,463 61,653 75,220 104,491 101,926 105,788
Grand Total $253,935 $238,163 $286,423 $473,559 $426,203 $517,745
Significant Service Level Changes
• None
Key Initiatives
• Continue to redesign the Town's website to improve customer experience in accessing Town
Services
FJQJAY-VAR I N4 FY 2024 BUDGET
88

IIII=111I= �s {
rai
IIII=_IIII it
1111=1111= FINANCE i�
IIII.IIII
huio tTig
Mission ,
The Finance Department provides fiscal and business services ,�f� ;. •
to Town of Fuquay-Varina staff, management, Board of ' �'t + V
Commissioners, and residents. Major service areas are Business ,
and Financial Services Administration, Accounting, Budget, • (.•
Debt Management, Performance Management, and Investment t,ct., • 1 " _ •
Activities. All members of the Finance Department will perform ;I 1.. �.
their duties in conjunction with the highest ethical, professional, ', = 9
and customer service standards.
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Provide exceptional customer service while enhancing citizen engagement.
Ob'ective Ensure accurate and timel financial and bud'eta information is sublicl available.
Measure Receive Certificate of Excellence in Financial Reporting Award (GFOA) Yes Yes Yes
Measure Receive Distinguished Budget Presentation Award (GFOA) N/A Yes Yes
GOAL Maintain and improve the Town's bond ratin•
a tive Ensure debt levels conform to Town colic'-
Measure %General Debt to Assessed Value(<2.5%) 0.63% 0.71% 0.77%
Measure %General Debt Service Expense to General Fund Expenditures(<15%) 6.85% 7.69% 8.67%
Measure Debt Principal Payout Ratio(>55%) 70.73% 57.63% 55.00%
GOAL Ensure fiscal sustainability and resilience rough effective long term financial planning.
Ob'ective Ensure Fiscal Policies are maintained.
Measure % Unassigned General Fund Fund Balance to General Fund Expenditures(>25%) 60.87% 55.00% 50.00%
Measure Review, revise,and automate internal control policies and procedures annually 2 2 2
Major Accomplishments
• Assisted with implementation of employee portal to provide employees payroll information
• Filled new Purchasing & Contract Manager position which helps to streamline the purchasing and
contract process and ensures Town procedures conforms to best practices
• Received the Government Finance Officer's Distinguished Budget Presentation award for the FY 2023
budget book with Special Recoginition for the Town's Long-range Financial Plan
• Received the Government Finance Officer's Certificate of Excellence in Financial Reporting for the ninth
consecutive year for the FY 2022 Annual Consolidated Financial Report
FUCK JAY-VAR I N4 FY 2024 BUDGET
89

1111211115 Xs g
1111511IIE11 all ,1— f 5
piliza
FINANCE
TA
II
Finance - 12 FT j� 1
Finance Director- 1 FT cUillY
Asst. Finance Director- 1 FT
IL
Budget Manager- 1 FT �' = - '
•
Purchasing tv1anager- 1 FT ill '� ______,_
Payroll Administrator- 1 FT ' 1•'' . f'..'L •: r ' ' '-i-
Customer Service - 4 FT _ - -. 4 = '
Billing and Collections - 2 FT ONO�� "--
Finance Support - 1 FT ==P .. , _
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $ 403,281 $ 460,562 $ 589,352 $ 835,244 $ 803,628 $ 937,406
Professional Services - 1,017 29,929 46,600 39,226 52,000
Operating Expenses 9,447 11,851 27,567 30,784 24,143 32,652
$412,728 $473,430 $646,848 $912,628 $866,997 $1,022,058
Significant Service Level Changes
• None
Key Initiatives
• Assist with implementation of an online payment portal to allow for citizen online fee
payment
• Update departmental and Town financial policies and procedures to strengthen internal
controls
FUQU4Y-\/4R 1 N4 FY 2024 BUDGET
90

aliuii mim
"°-"_I'- ENGINEERING ;tittTa
Mission
The Engineering Department is responsible for ensuringthat all
9 g p p
development within the Town's planning districts complies with 1 `
current federal and state policies and all Town infrastructure and • - - - -- -
environmental standards and regulations. The department also -
agressively seeks alternative funding sources, primarily federal , - — _and state state grants, to support the Town's planning, review, and
construction of its tranportation infrastructure and environmental ° � ! � �- -
initiatives. -
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Leverage grant opportunities and partnerships to increase return on investment.
Objective Continue to •ursue all elisible and relevant'rant a••lications.
Measure Number of grants secured by Engineering 1 1 2
GOAL Cultivate a safe and inclusive community
Objective Periodically monitor and update construction standards and specifications.
Measure Number of standards and specifications reviewed annually 5 10 5
GOAL Provide exceptional customer service while enhancing citizen engagement
Objective Activel •romote,enforce,and educate customers about the Town's environmental re•ulations and initiatives.
Measure Number of education and outreach activities 18 42 50
Measure Number of environmental inspections 1,120 1,202 1,300
Measure Number of infrastructure inspections 9,720 9,302 8,500
Measure Number of environmental inspections per inspector per day 1.40 1.20 1.25
Measure Number of infrastructure inspections per inspector per day 12 9 8
Measure Total number of inspections per inspector per day 13.40 10.20 9.25
Major Accomplishments
• Awarded Federal Highway Administration (FHWA) grant of $929,000 for the Alston Ridge Greenway
projects
• Awarded Local Assistance for Stormwater Infrastructure and Investment (LASII) grant of$400,000 for
the implementation of a Stormwater Utility and Asset Inventory
• Filled the vacant Assistant Engineering Director position by promoting from within
• Filled the new Staff Engineer position who has made a significant contribution in assisting with the
workload associated with the nine current transportation projects
FUQUAY-VAR 1 NA FY 2024 BUDGET
91

UIIIIIIIIIIII /s
" - ENGINEERING *tti IIII=1111
F
Engineering - 11 .5 FT i,,
T
Engineering Director - 1 FT
Asst. Engineering Director- 1 FT
Staff Engineer- 2 FT j
Environmental Prog Coord - 1FT
Engineering Inspections Supervisor - 1 FT
Engineering Inspectors - 5 FT R 4
Administrative Support - 0.5 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $668,037 $657,306 $760,870 $1,121,934 $1,080,664 $1,512,346
Professional Services 11,110 41,026 198,257 91,800 67,255 94,500
Operating Expenses 24,914 30,269 49,669 74,022 74,022 73,290
Capital 30,853 - 33,875 31,000 30,877 -
Grand Total $734,913 $728,601 $1,042,671 $1,318,756 $1,252,818 $1,680,136
Significant Service Level Changes
• Added two new positions, a Staff Engineer and a Construction Inspector, and a vehicle for the
department to advance a record number of transportation projects. After adoption, the Construction
Inspector position was changed to an Engineering Technician to better meet current and projected
workload.
Key Initiatives
• Complete a Stormwater Asset Inventory, Stormwater Fee Feasibility Study, and create a Stormwater
Capital Improvement Plan
• Continue to pursue opportunities for grant funding
• Continue to review construction standards and specifications to ensure Engineering plan reviews
and inspections are up to date with current code requirements and consistent with modern
construction practices
• Continue to enforce federal and state infrastructure and environmental regulations to ensure
Fuquay-Varina remains safe and maintains a high quality of life
• Continue to collaborate with and provide input to NCDOT regarding projects in and around Fuquay-
Varina, including the construction of an Integrated Traffic Signal System, to ensure local concerns
are considered and to help advance DOT projects to address residents' traffic priorities
FUQU4Y-VAR i Ni FY 2024 BUDGET
92

111121111E
IIII ef="'R.
011=1111= POLICE
IIII=1111
Mission
The mission of the Fuquay-Varina Police Department is to
serve the people of Fuquay-Varina and to provide safety
and improved quality of life in our community through
excellence in policing. This will be achieved by embracing
our core values of Fairness, Vigilance, Professionalism, and otioe �
Dedication (F.V.P.D.). ��y�,�.�' •--pUOU `N A VARA
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Cultivate a safe and inclusive community.
Ob'ective Increase number of minori •olice officers non-Caucasian males) by 5%
Measure Percent sworn officers non-Caucasian male 20% 23% 28%
Ob'ective Achieve Part I case clearance rate at/or above the national avera•e
Measure Part I Violent Crime per 1,000 population 1.00 0.60 N/A
Measure Part I Property Crime per 1,000 population 9.49 9.66 N/A
Measure Part I Violent Crime clearance rate (FBI 2019 national average 45.5%) 47% 64% 64%
Measure Part I Property Crime clearance rate (FBI 2019 national average 17.2%) 22% 25% 25%
GOAL Provide exceptional customer service while enhancing citizen engagement
Ob'ective Res•ond to Priori 1 calls for service in a timel manner
Measure Average response time to Priority 1 calls 5:38 4:08 4:08
Ob'ective Increase number of Police/communit engagement events or meetin•s
Measure Percent increase Police/community engagement events 3% 5% 5%
Measure Number of Police/community engagement events 213 224 235
GOAL Apply innovation and technology to enhance public safety IMP
Ob'ective Increase department trainin• hours b 10%
Measure Number of department training hours 11,143 14,159 15,575
Ob'ective Increase de•artment advanced •olice mana•ement trainin•
Measure Train three sworn supervisors in advanced police management annually 3 1 3
Significant Service Level Changes
• Added 11 new positions: 6 patrol officers with 2 specifically dedicated to Fuquay and Varina
Downtown areas, 2 School Resource Officers (SRO), 1 SRO Supervisor, 1 Accreditation Specialist,
and 1 Telecommunicator, plus equipment needed for their positions
FUQUAY-\VAR 1 N4 FY 2024 BUDGET
93

oo=uu=
momon
POLICE poLlee
Police -83 FT -j-! 9�ti
Police Chief- 1 FT •/' n
Police Captain-3 FT ✓ ,
TeleomOfficers
mun ca tors-5 FT 9 FT do�/
Accreditation Specialist- 1 FT V909
Non-Sworn Staff-4 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual ctual Actual A mended Estimated Adopted
Salary and Benefits $4,348,019 $4,746,923 $5,549,494 $7,115,618 $7,047,158 $9,633,556
Operating Expenses 448,740 594,258 725,316 1 ,151,151 1,052,554 806,884
Contracted Services 38,874 43,183 67,849 68,419 51,626 71 ,587
Professional Services 10,097 38,819 47,224 47,008 44,520 98,404
Programs 8,016 - - - - -
Capital 313,799 525,634 517,069 934,704 934,704 25,358
Grand Total $5,167,54 $5,948,817 $6,906,952 $9,316,900 $9,130,562 $10,635,789
Major Accomplishment
• Completed the NC League of Municpalities Risk Review which assesses whether an agency's adherence to
best practices, court decisions, and policies and procedures is meeting industry standards. FVPD recieved
certification that they are in compliance and are adhering to best practices.
• Completed the One Mind Campaign, a training program based in Crisis Intervention across all age groups
• Implemented the Blue Light Initiative, where solid blue lights are illuminated in patrol car light bars, to
increase visability of officers at night in residential and commercial throughfares
• Fuquay-Varina Community Survey results revealed 91% of residents have an overall feeling of being safe in
Town compared to the national average of 68%
Keu Initiatives
• Commence the process of Law Enforcement Accreditation
• Partner with Flock Safety to install traffic monitoring cameras in key areas of town to assist with crime
reduction. These cameras link to a database which identifies stolen vehicles, used by criminals to
commit further crimes, and notify patrol officers of their location.
• Reorganize Patrol districts to maximize resources and patrol officer workloads
FUQU4Y-\/4R I Ni FY 2024 BUDGET
94

1111211115
Roma-1ma- FIRE
IIII=1111
Mission
The mission of the Fuquay-Varina Fire Department is to provide the 1
utmost in quality fire and rescue service to our citizens, businesses, .-��'
and visitors to our Fire District with the most efficient and effective ' ' � � FOOUAY-VARINA �.
methods available. We value our members, their health and
safety, and their families. We recognize, support, and encourage _�t_
innovation, ingenuity, and integrity. _ - 0 —
FY 2021 FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Actual Estimated Projected
GOAL Cultivate a safe and inclusive community.
Ob'ective Respond efficientl and effectively to Fire emersencies
Measure Annual number of emergency responses 4,703 5,566 5,563 5,700
Measure Annual number of overlapping emergency responses 1,020 1,445 2,746 2,800
Measure Percent dollar value saved 97% 91% 95% 95%
Measure Annual number of Fire Inspections,Construction Meetings,and Plan Reviews 2,346 2,290 2,440 2,450
GOAL Provide exceptional customer service while enhancing citizen engagement
Ob'ective Provide communit outreach and education •ro.rams to enhance community safety
Measure Annual number of residents reached through public education programs 469 2,629 9,436 9,500
Measure Annual number of car seats installed 63 202 174 180
Measure Annual number of smoke detectors and batteries installed/changed 390 395 419 425
Major Accomplishments
• The national standard for fire response is for fire department apparatus to leave the station in 90
seconds after receiving a call. FVFD achieved a time of 84 seconds on 90% of all calls.
• Participated in a mock plane crash drill at a local park that involved multiple fire, EMS, emergency
management agencies from multiple counties and jurisdictions
• For a second consecutive year, successfully responded to over 5,500 Fire and EMS service calls,
with over 2,700 of those calls occurring simultaneously
• Eight of nine recruits sucessfully completed the new recruitment process that sends non-certified
new hires through a 38-week firefighter academy. The success of this model will allow the
department more flexibility to attact a more diverse non-certified candidate pool in the future in a
more cost-effective manner.
• Transitioned to a new type of fire hose that will offer easier maneuverability for firefighters and
less friction loss which requires less water pressure saving wear and tear on fire engines
FUQU4Y-\/AP 1 Ni FY 2024 BUDGET
95

1111211115
=1�1° FIRE
Noma-=
=1111=1111
Fire - 76 FT
_ .tirr ,
Fire Chief - 1 FT -. e1
Div. Fire Chief - 1 FT
Fire Operations - 69 FT f
Fire Inspections - 3 FT
Administrative Support - 2 FT -
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $4,398,164 $5,007,287 $5,511,757 $7,105,979 $6,924,968 $7,671,682
Professional Services 28,757 55,721 74,459 55,500 47,318 65,200
Operating Expenses 495,582 470,231 607,304 766,227 785,070 914,775
Insurance and Bonds 38,772 50,046 53,068 72,000 71,128 80,650
Grants & Allocations 12,069 8,668 9,617 11,700 8,736 13,000
Contracted Services 71,947 69,019 86,441 119,500 117,660 132,520
Capital 729,748 66,355 1,310,627 93,900 93,900 35,000
Grand Total $5,775,038 $5,727,326 $7,653,273 $8,224,806 $8,048,780 $8,912,827
Significant Service Level Changes
• None
Key Initiatives
• Complete construction of Fire Station #4 including a History room that will be open to the public
• Order four (4) new fire engines that wil replace and aging fleet with high mileage and increased
maintenance costs
• Continue implementation of a Fire Records Management System (RMS) that will assist with
reducing fire code violations through the availability of historical inspection data.
• Develop a new apparatus replacement schedule that uses a cost/benefit analysis to determine
the best length of service before mileage and maintenance costs outweigh the financial cost to
replace
• Evaluate the interest and/or need to restart the Junior Firefighter program for 13-18 year-olds
that are interested in a fire service career. The program was suspended due to COVID 19.
FUQU4Y-VAR i N4 FY 2024 BUDGET
96

211-45INSPECTIONS fag la
Mission
To provide code compliant residential and commercial
structures through code enforcement to support a high quality 3-- •I I Of
of life for Fuquay-Varina residents. Inspections achieves r
this by embracing our Core Values of Customer Service,
Professionalism, Integrity, and Teamwork. _
•
J
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Provide exceptional customer service
Ob'ective Com•lete Ins sections in a timel manner State mandated 48-hour time lim'
Measure Annual number of inspections performed 54,072 51,388 52,930
Measure Average daily inspections 208 198 204
Measure Average daily number of inspections per inspector 19 18 17
Ob'ective Issue •ermits in a time) manner New Sin•le Famil
Measure Annual number of permits issued 1,891 1,100 1,133
Measure Average daily permits issued 7 4 4
Ob'ective Issue Certificates of Occu•a . timel manner
Measure Annual number of COs issued 1,538 1,840 1,895
Measure Average daily COs issued 6 7 7
Major Accomplishments
• For a second consecutive year, completed record levels of inspections within State required 48-hour
time limit while experiencing staff shortages
• The national Insurance Services Office (ISO) confimed Fuquay-Varina's ratings, on a scale of 1 to
10, with 1 being best, of 2 for commercial property and 3 for residential building code inspections and
enforcement
• Staff members achieved a record number of qualifications in Building, Mechanical, Plumbing, and
Electrical trade inspections. These included a mix of adding a new trade certification or a higher level
of certification. Each trade is has 3 levels of certification reflecting expertise in that trade. Three of
the 12 inspectors now have a Level III certification in all four trades and two have Level III certification
in three trades. Achieving multiple trade certification at higher levels benefits both the Town and
customers as inspectors can accomplish more inspections in a single site visit.
FUQU4Y—VAR N4 FY 2024 BUDGET
97

AVM INSPECTIONSINSPECTIONS [n][n]([]]
l_.�
6ig
•
rim '
Inspections — 21 FT 1
O
Inspections Director- 1 FT
Inspections Supervisor- 2 FT
Inspectors - 11 FT -
Plan Review- 4 FT
Inspections Support- 3 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $1,123,650 $1,382,156 $1,576,859 $2,206,065 $2,081,531 $2,368,660
Operating Expenses 45,284 61,415 84,784 156,023 156,023 129,294
Contracted Services 4,000 - - 50,000 50,000 50,000
Capital 30,875 59,604 31,161 78,601 78,601 -
Grand Total $1,203,809 $1,503,175 $1,692,804 $2,490,689 $2,366,155 $2,547,954
Significant Service Level Changes
• None
Key Initiatives
• Provide excellent customer service by continuing to perform quality inspections within
the state mandated timeframe
• Complete the implementation of digital plan submittal and review
• Continue to encourage and support staff professional development
FUQUAY—\/AP 1 NA FY 2024 BUDGET
98

aliuii Euuu , .
""-""- PUBLIC WORKS f '4 la
Miccinr R. . .444, ..r11111801
Provide safe, reliable street maintenance and solid waste services. —
miiiiiiimmimmilliAll
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Provide exceptional customer service while enhancing citizen engagement
Ob'ective Im•rove communication with the •ublic • -• - 11- - •r all volumes
Measure Percent requests for debris/bulk collections online vs.telephone 60% 70% 75%
GOAL Advance operational efficiency and effectiveness by improving internal business processes and integrating techology
solutions
Ob'ective Formalize an equipment maintenance 'roe ram with ins•ections
Measure Percent(of annual operating hours)heavy equipment unavailable due to repair N/A 5% 5%
Measure Percent of maintenance cost to operating budget 23.00% 22.75% 20.50%
GOAL Cultivate a safe and inclusive community. =MI
Ob'ective Im•rove safet b e •andin• safe 'roe ram
Measure Number of formalized safety meetings and training 10 30 40
Measure Number of annual reportable safety incidents 3 0 0
Major Accomplishments
• Implemented online submittal form for routine task requests
• Formed a Public Works Safety Committee that held regular meetings to discuss safety issues, events,
and best practices. One member attends Town wide Safety Committee meetings.
• Deployed new leaf vac truck to expand capacity and improve the efficiency of loose leaf collection
• Instituted new stormwater inspection program leading to the repair of two major stormwater culverts
Significant Service Level Changes
• Added a Sanitation crew (3 positions) and a Sanitation truck
Key Initiatives
• Expand new training and safety procedures to more Public Works equipment and processes
• Re-evaluate Sanitation routes to maximize the benefit of the new Sanitation crew
• Continue the stormwater inspection program to maintain infrastructure and prevent future stormwater
issues
FUQU4Y—WAR 1 N4 FY 2024 BUDGET
99

1111211l1= _ .
1111E_1111
- PUBLIC WORKS di ' ?1_11
Public Works - 47.5 FT
i1
Public Works Director- 1 FT 4111:Ai '
Streets Superintendent- 1 FT I ji
Sheets- 14 FT 1
Debris-8 FT i 10 f
Sanitation Superintendent- 1 FT - -
Sanitation-22 FT
0
Administrative Support-0.5 FT = -- --A
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual 'ctual Actual Amended stimated 'dopted
Streets / Powell Bill
Salary and Benefits $715,023 $632,821 $756,213 $1,234,551 $1,172,823 $1,336,036
Professional Services 765 841 804 1,317 328 1,062
Operating Expenses 557,890 581,018 746,356 857,242 848,576 978,561
Contracted Services 58,881 49,104 72,419 90,838 87,959 100,000
Powell Bill 440,465 511,106 1,100,914 1,389,860 1,250,874 1,232,500
Capital 12,197 - 161,759 552,281 552,218 372,500
Total Streets/ PB $1,785,221 $1,774,890 $2,838,465 $4,126,089 $3,912,778 $4,020,659
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category 'ctual Actual Actual Amended Estimated &dopted
Debris Collection
Salary and Benefits $343,391 $416,292 $469,785 $674,869 $674,869 $687,893
Professional Services 453 198 176 726 168 726
Operating Expenses 142,429 151,841 204,751 188,759 190,552 308,682
Capital 161,682 - - 46,000 46,158 -
Total Debris Collection $647,955 $568,331 $674,712 $910,354 $911,747 $997,301
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Sanitation
Salary and Benefits $984,363 $1,102,546 $1,235,539 $1,700,795 $1,645,316 $2,003,769
Professional Services 936 68 569 1,527 289 1,452
Operating Expenses 319,785 356,926 625,551 617,766 617,766 696,957
Contracted Services 396,434 411,571 392,742 531,496 523,546 604,000
Capital - 195,100 204,686 495,000 492,735 210,000
Tota anitation $1, 1 , : $2,066,211 $2,459,087 $3,346,584 $3,279,652 $3,516,178
FU Q U4Y-\//-AR 1 N4 FY 2024 BUDGET
100

lIll lI11E
1111_1���gain PARKS AND RECREATION
Missior.
To provide diverse recreational opportunities and facilities that
enhance social development and community well-being through
welcoming parks, public spaces, facilities, organized activities,
cultural resources, and special events.
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Offer diverse and inclusive recreational and cultural programming.
Ob.ective Increase Youth S Partici•ation
Measure Number of annual registrations for youth sports 7,741 9,182 10,560
GOAL Provide exceptional customer servi -
Ob'ective Receive a satisfaction rate of•reater than 3.5 in a scale of 1-5
Measure Satisfaction rate for Youth Sports Program participants 4.20 4.40 4.10
Measure Satisfaction rate for Recreation Program participants N/A 4.20 4.00
Measure Satisfaction rate for park and facilities users 4.20 4.20 4.20
Major Accomolishmente
• Completed Parks, Recreation, & Cultural Resources Systemwide Master Plan
• Completed Hilltop Needmore Town Park & Preserve Master Plan
• Youth sports participation increased 15% and expanded Youth sport offerings by adding Lacrosse
• Expanded Adult sport opportunities by more than 100% by adding new seasons for soccer, softball,
and basketball
• Added an Arbor Day event with outreach about proper tree-planting practices
• Completed the design phase of the Community Center North project
• Received a state Parks and Recreation Trust Fund (PARTF)grant in the amount of$500,000 to support
the Community Center North project
Key Initiative'
• Commence construction of the Community Center North bond-funded capital project and Alston
Ridge Greenway Trail
• Continue preparation for achieving National Recreation and Park Association accreditation
FUQU4Y—VAR i N4 FY 2024 BUDGET
101

gin PARKS AND RECREATION
Parks and Rec. - 39 FT r. ti s .,
F'JOUA!-VARING
s
PR&CR Director- 1 FT 1r ASHWORTH
Assistant PR&CR Director-2 FT - PARK
Recreation Superintendent- 1 FT : ;�+ *
d¢sh mae
Comm. Center Administrator-2 FT _
Athletics-5 FT '' al.,,ftvet,Programming -3 FT
PR&CR Support-2 FT
Grounds Superintendent- 1 FT
Grounds Maintenance- 17 FT
Public Buildings
Superintendent- 1 FT
Public Buildings-4 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $1,656,690 $1,822,672 $2,042,823 $2,955,315 $2,807,549 $3,468,780
Projects - - 820,387 203,879 193,685 -
Programs 443,240 229,394 624,317 877,634 833,752 995,702
Professional Services - - 18,600 40,974 38,925 25,000
Operating Expenses 939,120 637,896 815,284 969,363 919,846 1,049,771
Grants & Allocations - - - 6,400 - -
Contracted Services 87,838 684,745 50,996 56,120 55,683 60,890
Capital 182,302 112,203 50,773 103,400 102,991 115,000
Gran. otal $3,309,190 $3,486,910 $4,423,180 $5,213,085 $4,952,431 $5,715,143
Significant Service Level Chances
• Added Community Center Administrator, Active Adult Recreation Program Specialist, and
Recration Program Specialist positions to assist with opening the Community Center North upon
project completion
• Expanding Summer Camp offerings and adding a Fall Festival
FUQUAY-\/AP i N4 FY 2024 BUDGET
102

IIIIIIIIIIIIIII /s 1,�1
""-"_"I ARTS CENTER all
IIII=1111
Miccinr
The Arts Center supports the creative community by providing - -"�. . -
gallery exhibit space; a concert, community theater, and �. ►Y >r- - _- - ,
performing arts venue; as well as event, class, camp and �►,
workshop space and technical support. The Arts Center is Jill
responsible for planning, organizing, and operating special _it t 1 I I I I I • -i)e
events and cultural arts programs to meet the needs of the 1 • -
�
-41111
Town's growing population. `9
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Offer diverse and inclusive recreational and cultural programming
Ob'ective Imo rove accommodations for .atrons with disabilities
Measure Percent patrons who knew accommodations were available N/A 60% 100%
Measure Percent satisfaction of satrons with disabilities with accommodations available N/A Unk 90%
Ob'ective Exsand diversit of International Festival sarticisants
Measure Number of countries/cultures re•resented at the International Festival N/A N/A 8
Obective Diversi sro•ram and class offerinss toward adults 21 ears and older
Measure Number of programs and classes tailored to adults(21 years and older) N/A 22 24
Measure Percent of program participants 21 years or older N/A 14% 18%
GOAL Provide exceptional customer servi -
Ob'ective Ensure Arts Center facilities and technical sus sort meet serformer exsectations
Measure Percent performer satisfaction with Arts Center facilities and technical support 95% 98% 100%
Measure Percent of performers who would return to the Arts Center 100% 100% 100%
GOAL Leverage grant opportunities and partnerships to increase return on investment
Ss - tiv- •ntin - to I r - .11 lei II- .no r-l-v-nt Brant as•lications.
Measure Number of grants secured by the Arts Center 4 3 3
MOJOf I4ccum pllShmenn5
• Significant revenue growth in all areas of operations compared to prior year: Classes (46%), Theater
(51%), Rentals (53%), and Concession Sales (129%)
• North Carolina Presenters Consortium ranks the Arts Center as a leader in Small Venues (800 seats or
less)
• Dance program invited to perform at Disney World
• Chorale program invited to perform at Carnegie Hall
• Arts Center presented with a Maggy Award, Cary Magazine reader's choice award recognizing the
"Best in Western Wake County", as Best Place for Kid's class or camp
FUQU,A(—\/AP NA FY 2024 BUDGET
103

uumom /
ARTS CENTER :it1
Arts Center - 4 FT
Arts Center Director- 1 FT
Arts Center Program Specialist - 1 FT
Arts Center Special Events \
Coordinator- 1 FT
Audio/Video Technician - 1 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $235,792 $299,848 $359,532 $448,252 $425,840 $559,557
Projects 308 106 5,000 6,000 5,918 33,500
Programs 44,120 54,278 110,171 170,124 141,340 193,050
Professional Services 53,113 - - - - 15,000
Operating Expenses 101,577 71,448 187,686 235,512 191,272 242,239
Contracted Services 54,841 3,656 14,462 1 ,000 149 500
Capital - - 27,185 18,000 17,607 20,000
Grand Total $489,751 $429,335 $704,036 $878,888 $782,126 $1,063,846
Significant Service Level Changes
• Added a full-time Special Events Coordinator position
• Addition of lighting equipment for offsite events
• Addition of Christmas in Varina event
Key Iniciacive�
• Develop and program an all-inclusive class in performance and present any subsequent
performances
• Develop, program, and present a Young Actor's Theater, a production-oriented class geared to
young performers
• Grow audience for field trip opportunities through school visits and targeted marketing
• Develop, audition, and present a competitive dance team
• Develop tools to better communicate accessible services and accommodations
FJQ JAY-WA R i N4 FY 2024 BUDGET
104

1 I=1111 IIII -.III
IIII_II
114
1 PLANNING *1i1
IIII
Mission j
Planning is committed to balancing future growth and development swirl
with preserving the history and identity of Fuquay-Varina by L
ensuring all proposed projects meet high quality standards
to preserve and protect sensitive environmental features, —' 1 n. 4� ;: I I
contribute to the overall infrastructure network, provide a variety f
of residential and non-residential options, and promote respect .
and promote harmony with existing and established residents and —
establishments.
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Provide exceptional customer service while enhancing citizen engagement.
Ob'ective Maintain Trian•le Communit Coalition Plannins De.artment customer service rankin• of Ve'
Measure Triangle Community Coalition Planning Department Customer Service Ranking Very High Very High Very High
GOAL Advance operational effiency and effectiveness by improving business process and integrating techology solutions.
Obective Activel •romote online site and subdivision •Ian review
Measure Number of site plans reviewed online N/A N/A 100%
Measure Number of subdivision plans reviewed online N/A N/A 100%
GOAL Recruit, retain, and develop skilled, knowledgeable, motivated, and public service-oriented Town staff.
Obective Activel •romote staff certification
Measure Number of Zoning Officials certified (of 7 possible) 3 6 7
Measure Number of Code Compliance Officials with NC Building Level 1 certification - 1 2
(of 2 possible)
Measure Number of Code Compliance Officials with NC Building Level 1 certification - - 1
(of 2 possible)
Major Accomplishments
• Completed a Transit Study for both a circulator bus and an extension of the express service to Holly
Springs
• Received a $50,000 grant supporting the Transit Study
• Three staff members earned Zoning Official certification, bringing the total of certified staff to six
• Filled the Development Liaison position who immediately improved the Development and Business
Services customer service by creating a webpage with links for online meeting requests
FUQU/-\Y-\/41? i N4 FY 2024 BUDGET
105

111121111E �. $1 � i`
1111=_011 '1 5 /s i i
"-"—"- PLANNING J la°`IIII=1111
Planning and Zoning - 13 FT -_ Trai''',01r,r.:
-
1 4_�!
Planning Director- 1 FT -t' i� : :; t ..„ '�
Asst. Planning Director- 1 FT z
Senior Planners - 2 FT , \ .`
Planning Resources - 5 FT
i tf jam`
Planning Support- 1 FT . '�/ !,0, �_
Development Liaison - 1 FT L-'
Code Compliance - 2 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
ccount Categ• Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $737,234 $785,782 $1,034,736 $1,334,280 $1,269,113 $1 ,457,066
Professional Services 19,447 23,000 111 ,740 240,000 164,324 -
Operating Expenses 41 ,287 46,979 52,550 62,195 39,391 60,764
Capital - - 29,383 - - -
Grand Total $ • ,• • : $855,761 $1,228,409 $1,6 $1,47 ,: 8 $1,517,830
Significant Service Level Changes
• None
Key Initiative
• Complete the Community Transportation Plan update
• Implement online plan review for site and subdivision plans
• Implement the ability for customers to pay fees online
• Continue to research and apply for grants to support planning projects
• Continue to ensure staff have the opportunity for professional training and certification
1=000AY—\/4R 1 N4 FY 2024 BUDGET
106

Una ECONOMIC / DOWNTOWN topeek
IIII=IIII
DEVELOPMENT
Miss►o►, •
The Economic Development Department promotes the Town of !. .-
Fuquay-Varina as a destination for economic growth and vitality t,.. 71M711.11"---,
through the cultivation of jobs and diverse investments to ensure
Fuquay-Varina grows in a sustainable, equitable, and fiscally ! *`'
responsible manner. The department makes recommendations to
the Town Board on Town economic development strategy and is ..
responsible for the implementation of the economic development • '3 1A.111
strategic plan.
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Promote Fuquay-Varina as a destination for investiment to support diverse growth and sustainability.
Ob.ective Increase sustainable commercial and retail recruitment and development
Measure Number of sites available for retailers 4 11 7
Measure Number of new relationships with retailers 13 13 10
Ob.ective -. e sustainable manufacturin. recruitment and development
Measure Number of manufacturing firms recruited 1 - 1
Measure Number of manufacturing firm expansion opportunities identified 1 1 1
GOA Encourage the development community to integrate character conditions into new development
Ob.- - i -. - . 1.• - •f1i . Al l •- - foment
Measure Number of developers interested in downtown development identified 3 6 5
Major Accomplishments
• Berk-Tek, a Leviton Company, announced a $27 million capital investment to add 95,000 square feet to
its fiber optic cabling facility, currently 55,000 square feet, which will also add 100 new full-time jobs over
the next five years
• Developed an economic development marketing plan
• Completed participation in the Wake County Site Identification Study Program which identified six
potential industrial sites
• Completed the Fuquay-Varina Commercial Market Analysis Study to guide economic development
strategies for commercial, hotel, and retail recruitment
• Orchestrated the Small Business Connect event at the Fuquay-Varina Arts Center connecting start-ups,
entrepreneurs, and small business owners with valuable resources and providing insights into securing
financial capital and divising effective strategies for digital marketing and branding
• Implemented a client relationship management system to manage leads,contacts,economic development
projects, and business cases
FUQUAY-\/nR i NA FY 2024 BUDGET
107

IIII=1111= � �. �, ��`
=1�II=0' ECONOMIC / DOWNTOWN ' ill'S
6M-
P111E1111DEVELOPMENT
Economic Development - 2 FT
:,. ,.i. _,...., ,,,, ,
• ,. ;. , . --J
Economic Dev. Director- 1 FT -- . • • • - .. ,•'i, 1 ,;i .i-Atiiiitisbil,;k: AA 'I
Downtown Dev. Manager- 1 FT `- - - R - 4
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amend- • stimated A dopted
Economic Development
Salary and Benefits $60,365 $83,738 $113,175 $151,754 $150,828 $164,071
Professional Services 8,722 10,951 17,734 10,000 - -
Operating Expenses 14,626 14,276 25,699 40,910 25,149 68,405
Contracted Services 14,500 35,473 58,020 166,210 146,493 104,710
Capital - - - 27,961 27,960 -
Grand otal $98,213 , A 4,438 $2 - ,628 $396,835 $350,430 $337,186
Downtown Development
Salary and Benefits $72,830 $82,999 $94,219 $114,594 $111,508 $124,040
Professional Services 16,492 3,370 2,810 111,700 85,971 213,300
Operating Expenses 13,953 7,624 9,703 25,465 22,465 21,910
Contracted Services - 89,499 265,142 32,500 54,352 25,000
Façade Grants 7,597 - 10,000 15,000 10,000 30,000
Grand Total $110,872 $183,492 $381,874 $299,259 $284,296 $414,250
Significant Service Level Changes
• None
Key Initiatives
• Begin implementation of the economic development marketing plan
• Complete and implement the Downtown Generational Plan study to ensure Fuquay-Varina's
downtown districts thrive while preserving their character and identity
• Utilize the findings of the Wake County Site Identification Study to attract targeted industries
• Utilize the findings in the Commercial Market Analysis to attract new retail opportunities
• Develop a mixed-use project on the 2.5 acre Town-owned site along North Main and East Academy
Streets to further enhance downtown retail, office, and housing opportunities not only for our
residents to live, work and play but as a destination location for others
FU Q UAY-\/4R 1 N4 FY 2024 BUDGET
108

15 INFORMATION TECHNOLOGY -�
Miccinr
To provide secure and reliable technologies to enable all Town
departments to better serve the citizens of Fuquay-Varina.
= i
FY 202 ' FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Advance operational efficiency and effectiveness by improving internal business processes and integrating
Technology solutions.
Obective Imerove Human Resources and Finance Pa roll services via an Em•lo ee Portal
Measure Number of employees receiving paperless pay stubs/tax forms N/A N/A 100%
rlatikiMas I- - ' , P e -•L3 11�112,M91.TaMUllarslalak- - . '- •• -
Measure Percent Town Capital Improvement Projects tracked in new module N/A N/A 90%
Measure Number of departments utilizing Grant/Project module N/A N/A 2
�.y.�- ve I • en a u y•Igi a p an •• • UC•IK*--sta
Measure Percent of plans digitally reviewed N/A N/A 50%
GOA. Provide exceptional customer service
••'- 've • - '• • ••- '•• - is - ••• •• -sources meet ex•ectations
Measure Percent IT network available to users 99.91% 99.95% 99.97%
Measure Number of Town GIS requests processed (in millions) 34.50 46.70 65.00
Measure Number of IT support requests processed 2,882 3,306 4,500
Major Accomplishments
• Implemented new Project tracking solution
• Implemented IT change management procedures
• Expanded server process and storage capacity to keep up with application growth
• Increased network security posture
• Increased security vetting for all IT Solutions
FUQ WAY-VA R 1 N4 FY 2024 BUDGET
109

111121111E
1�n=_ml
INFORMATION TECHNOLOGY 1r l=1�I1=1�11
NA. IR
Information Tech. -8 7
IT Director- 1 FT
Assistant IT Director- 1 FT =a
System Administrator- 1 FT -�`
IT Support-3 FT
GIS Coordinator- 1 FT • of/
Saar
GIS Technician- 1 FT fl
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2024 FY2024
ccount Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $535,495 $602,159 $669,869 $994,018 $964,609 $1,021,670
Projects - 91,848 47,600 48,249 - 54,000
Professional Services 6,093 4,200 6,223 15,556 7,892 17,584
Operating Expenses 413,134 439,164 500,843 639,787 593,217 673,432
Capital - 145,041 49,493 60,000 58,175 30,000
Gran• o al $954,722 $1,282,412 $1,274,028 $1, 57,610 $1,623,893 $1,796,686
Significant Service Level Changes
• Increasing network storage capacity and redundancy
Key Initiatives
• Improve IT Help Desk response times and communication
• Assist with modernizing and digitizing workflows in all departments
• Strengthen network security
• Collaborate with departments to improve business processes to increase efficiency
FU WAY-VAR i N4 FY 2024 BUDGET
110

25 HUMAN RESOURCES az
Mission
Our mission is to recruit, develop, and retain a high performing ;
workforce, while simultaneouslyrecognizing and encouraging
9 9
the value of diversity and championing professional growth.
We shall further cultivate a healthy, safe, and productive work _- . - -
environment while promoting accountability, honesty, excellence, '~r 7:0*..`
and respectfulness.
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL Recruit, retain,and develop skilled, knowledgeable, motivated,and public service-oriented Town staff.
Ob'ective Administer a competitive classification and compensation •Ian.
Measure Number of positions reviewed/reclassified 100% 100% 100%
(Full classification/compensation study completed FY2022)
Ob'ective Im•rove em•lo ee trainin•}
Measure Percent New Hire Orientation completed within 3 days of hire date 96% 100% 100%
Measure Percent Annual training completed 99.7% 100% 100%
(Customer Service, Diversity, Sexual Harassment, Fire Prevention, and
Bloodborne Pathogens)
Ob'ective E sand recruitmen - • • -. a more • +-rse so.ulation.
Measure Career Fairs attended 2 3 3
Obective Retain hired em•Io ees.
Measure Percent completion of Probation Period 83% 88% 93.0%
Major Accomplishments
• Implemented Townwide Market Salary Study
• Expanded training opportunities to the Town Board and Management
• Expanded mandatory annual training: Customer Service, Sexual Harassment, Fire Prevention,
Diversity, and Blood Borne Pathogens to an online virtual platform for all full-time employees
• Established a Townwide Safety Committee resulting in a 40% reduction in reportable injuries and a
67% reduction in days missed from work-related injuries. Received 100% of eligible reimbursement
from insurance companies for damages and claims.
• Implemented NEOGOV's recruiting software module to better communicate job postings to a larger
applicant pool and improve the application process
FUQU4Y-\/4R I N4 FY 2024 BUDGET
111

IIlI I111E
=110=_011 AMHUMAN RESOURCES fra :1')) tTA
Human Resources - 4.5 FT
Human Resources Director- 1 FT ' 1 \fr ' T 744 ' ' 1 1_
HR Analyst- 2 FT ,
4. •` �.
Safety/Risk Manager- 1 FT - f • I• . . � ;i
Administrative Support - 0.5 FT
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
ccount Category Actual Actual Actual Amended Estimated Adopted
Salary and Benefits $230,761 $337,032 $426,831 $601 ,944 $581,681 $638,885
Professional Services 7,896 7,775 47,101 52,377 44,995 63,185
Operating Expenses 29,970 37,738 43,300 107,085 96,660 94,410
Contracted Services - 2,289 - - - -
Grand Total $268,626 $384,833 $5 7, $761,406 $723,336 $796,480
Significant Service Level Changes
• None
Key Initiatives
• Expand employee and supervisory training opportunities
• Develop a comprehensive recruitment strategy which incorporates an improved online job posting
and application process, increased job fair attendance
• Implement NEOGOV's new employee on-boarding software module to streamline the hiring and on-
boarding processes to better communicate job postings to a larger applicant pool and improve the
application process
• Continue to implement policies, i.e. Elder Care and Parental Leave, and conduct Townwide Market
Salary and Benefit Studies to improve recruitment and retention
FUQU4Y-VAR 1 N4 FY 2024 BUDGET
112

/P FUQUi (-\/AR I NA
WATER AND SEWER UTILITY SYSTEM
Fuquay-Varina does not have its own water source, the Town purchases water through
agreements with the City of Raleigh, Johnston County, and Harnett County. The Town currently
has water capacity of 7.25 million gallons per day (mgd). The Town is collaborating with the City
of Sanford, through an interlocal agreement, to increase its water capacity in the near future.
This is reflected in the Sanford Water Plant and Conveyance capital projects noted throughout
this document. The Town owns and operates the Brighton Forest (.117 mgd) and Terrible Creek
(3.0 mgd) Wastewater Treatment Plants (WWTP). Terrible Creek WWTP will be expanding to
6.0 mgd in the near future. The Town also contracts 2.4 mgd with Harnett County to support
Town wastewater treatment needs and will be contributing to the expansion of the North Harnett
Regional WWTP by 3.6 mgd, for a total capacity of 6.0 mgd.
City of Raleigh
h-r-glit
7J,•4
- `-\i_r.4/ ":?11 f
A . ■ WWTP
ti �l
Future City of Sanford E-_-_P*3#417cis . + '� _ a :� .� WWTP
s
5t l
�� - 7.N'Ma�n �. Johnston,ANC`� ' County
�i 5t%JaS © H ,-,
,i_ _,,,,,,..„.„,„_ ,
444V./.4*W:.49 r . f'!_jn sl
-Nt%f;,.; :Iki 17.-'*(44,:r. illE .POI
4.441--f-e . , _ow, D. ,
6, . "`i wig' :17:11
^Aji
Harnett County •
•
•
•
FUQUi Y—\/AR 1 NA FY 2024 BUDGET
113

UTILITY OPERATING FUND
These charts illustrate FY 2024 Utility Fund revenues by major source and expenditures
by type. For further information see the following fund summary.
Sewer Tap On Fee Other Operating
1% Revenue
1% Non-Operating
Water Tap On Fee Revenue
2% 2%
Water Sales
46%
Sewer Service
48% 1111LIMpre
Utility Fund Revenues
Utility Fund
Expenses Appro to Fund
Balance UtilityBilling /
Transfer to Debt 2%
g% Collections
4%
Transfer to
Capital Projects
8%
Water
Operations
43%
411111111110
Sewer
Operations----
34%
114

UTILITY OPERATING FUND SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Actual Adopted Amended Estimated Adopted
REVENUES
Water Sales $6,068,402 $6,553,647 $7,015,372 $7,465,652 $7,465,652 $8,168,669 $8,783,590
Water Rate Increase - - 775,258 775,258 - 1,756,717
Sewer Service 6,315,963 6,858,839 7,344,997 7,716,511 7,716,511 8,597,014 9,155,880
Sewer Rate Increase - - 672,165 672,165 - 1,831,175
Water Tap On Fee 242,432 411,890 477,680 515,250 515,250 429,132 515,250
Sewer Tap On Fees 101,800 173,500 200,950 167,550 167,550 130,284 167,550
Operating Revenues $12,728,597 $13,997,876 $15,038,998 $17,312,386 $17,312,386 $17,325,099 $22,210,162
Bad Debt Collection $1,389 $1,866 $637 $0 $0 $330 $0
Penalty 128,360 154,255 187,955 165,000 165,000 223,642 165,000
Water Meter Sales 64,901 63,753 73,800 75,000 75,000 75,590 75,000
Sewer Pretreatment Fees 1,780 1,810 1,815 1,800 1,800 1,814 1,800
Sewer Line Inspection Fee 363 - - - - - -
Other Operating Revenues $196,793 $221,684 $264,207 $241,800 $241,800 $301,376 $241,800
Total Operating Revenues $12,925,390 $14,219,559 $15,303,205 $17,554,186 $17,554,186 $17,626,475 $22,451,962
Interest Earnings $67,016 $1,498 $26,686 $60,000 $60,000 $607,485 300,000
Installment Purchase Proceeds - - - - - - -
Rents/Leases Water 118,377 99,733 104,431 80,000 80,000 124,372 100,000
Insurance Proceeds/Restitution 30,468 - 709 - - - -
Miscellaneous Revenue 818,352 161,206 60,808 - - 470,160 50,000
Non-Operating Revenues $1,034,213 $262,438 $192,634 $140,000 $140,000 $1,202,017 $450,000
TOTAL REVENUES $13,959,603 $14,481,997 $15,495,839 $17,694,186 $17,694,186 $18,828,492 $22,901,962
EXPENSES
Operating
Utility Billing/Collections $378,472 $391,052 $492,831 $589,574 $617,392 $578,659 $740,754
Water-Operations 3,869,521 4,178,821 4,778,713 6,740,673 6,750,044 6,122,377 7,447,796
Sewer-Operations 2,816,236 4,028,315 3,497,670 5,223,704 5,405,021 4,737,058 5,885,146
W/S-Projects
Miscellaneous Projects 412,892 590,654 458,990 - 96,297 96,297 -
Sewer Line Rehab 91,645 96,522 196,185 - - -
$7,568,766 $9,285,365 $9,424,389 $12,553,951 $12,868,754 $11,534,391 $14,073,696
Debt
Water Interest/Other Charges $67,085 $44,941 $87,986 $0 $0 $0 $0
Water Principal Retirement 732,150 177,944 - - - - -
Sewer Interest/Other Charges 1,429,448 1,371,009 79,478 - - - -
Sewer Principal Retirement 1,825,791 415,202 - - - - -
Total Debt Service $4,054,474 $2,009,095 $167,464 $0 $0 $0 $0
TOTAL EXPENSES $11,623,239 $11,294,460 $9,591,854 $12,553,951 $12,868,754 $11,534,391 $14,073,696
Revenues Over(under)Expenses $2,336,363 $3,187,537 $5,903,985 $5,140,235 $4,825,432 $7,294,101 $8,828,266
Transfers to Other Funds
Gov't Debt Service Fund (268,160) (262,480) (256,800) (223,108) (223,108) (223,108) (231,200)
New Debt Service - - - - - - (1,364,240)
Gov't Capital Projects Fund - - - - - - -
Water/Sewer Capital Project Fund (4,437,718) (4,575,422) (4,921,209) (4,755,842) (4,755,842) (4,755,842) (1,403,063)
Transfers in from Other Funds
Water/Sewer Capital Reserve Fund 4,340,718 3,821,678 - - - - -
Total Other Sources(Uses) ($365,160) ($1,016,224) ($5,178,009) ($4,978,950) ($4,978,950) ($4,978,950) (2,998,503)
NET CHANGE IN FUND BALANCE $1,971,203 $2,171,313 $725,976 $161,285 ($153,518) $2,315,151 $5,829,763
Fund Balance Avail.for Operations(Unrestricted)
BEGINNING FUND BALANCE $3,620,721 $5,591,924 $7,763,238 $8,489,214 $8,489,214 $8,489,214 $8,489,214
ENDING FUND BALANCE $5,591,924 $7,763,238 $8,489,214 $8,650,499 $8,335,696 $10,804,365 $14,318,977
115

UTILITY FUND REVENUE SOURCES AND TRENDS
Total projected Utility Fund revenues for FY 2024 are $22,901,962, an increase of 21.6% from
FY 2023 estimated receipts. This increase reflects investments in personnel, capital
equipment, and capital projects to support future expansion of water and wastewater capacity
while maintaining resilient and reliable infrastructure. Retail water and sewer charges comprise
the majority (94%) of all Utility Fund revenues.
During the FY 2024 budget process, Fuquay-Varina engaged a consultant to develop a utility
rate model to better project rates needed to support the Town's strategic plan. Base and
volumetric rates increased 20% in FY 2024 and are projected to increase 12% in FY 2025,
FY 2026, and FY 2027, before stepping down to a 5% increase in FY 2028. These rate
adjustments are needed to cover operational and planned major capital project costs. The rate
model also considered the estimated increase to the customer base due to residential
development trends. The combined monthly bill for an In-Town resident using 5,000 gallons of
water will increase $17.77 per month in FY 2024.
Water Sales Revenue = $10,540,307
Water Sales revenues represent 46% of total Utility Fund revenues. They grew 8% over the
prior year in both FY 2021 and FY 2022. This is primarily due to customer growth as rates
were not adjusted during this timeframe. Customer growth in December 2021 alone was 12%
higher than the previous December's customer count. FY 2023 updated revenue estimates
indicate a 20% increase in water sales revenue due to a combination of a 9.9% utility rate
increase and customer growth. FY 2024 water sales revenue is expected to increase almost
24% due to due to a combination of a 20% utility rate increase and continued customer growth.
$12,000,000
$10,000,000
$s,000,000
EE
,000,000,000
$0
2019 2020 2021 2022 2023 2024
Estimated Adopted
FUC)Ui Y-\/AR I NA FY 2024 BUDGET
116

Sewer Service Revenue = $10,987,055
Sewer Service revenue represents 48% of total Utility Fund revenues. In FY 2021 they grew
9% over the prior year and 8% in FY 2022, primarily due to customer growth as rates were not
adjusted during this timeframe. FY 2023 updated revenue estimates indicate an almost 21
increase in sewer service revenue due to a combination of a 9.9% utility rate increase and
customer growth. FY 2024 sewer service revenue is expected to increase almost 23% due to
due to a combination of a 20% utility rate increase and continued customer growth.
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
2019 2020 2021 2022 2023 2024
Estimated Adopted
FJQ JAY-VAR I N4 FY 2024 BUDGET
117

1111211115
=un=uu 4 'p+r.
"_"-"_"1111- PUBLIC UTILITIES iraz1 ,,:_z:_,) ti,i
IIII=
Mission
Our mission is to protect public health by viably contributing to _
the environmental, economic, and social vitality of the community e r.. -
through exceptional water and wastewater services. i -r
rUOunr-v R
i --
- all lr lE
FY 2022 FY 2023 FY 2024
GOALS AND MEASURES OF SUCCESS Actual Estimated Projected
GOAL
Maintain a growing economy by providing the necessary infrastructue to support short, medium,and long-term growth
GOAL Invest in public safety facilities and infrastructure
Objective Invest in water quality infrastructure and increase water capacity to accommodate long-term needs of water customers
Measure Extend, replace,and close gaps in key waterlines(linear feet) 25,960 5,000 18,000
Measure Resources dedicated to waterline extension, replacement,gap closures $3,300,000 $4,300,000 $2,400,000
Measure New connections 1,266 1,200 1,200
GOAL Leverage grant opportunities and partnerships to increase return on investment
Obective Aggresively pursue all relevant,eli•ible state and federal •rant o••ortunities
Measure Grants received for utility infrastructure projects Yes Yes Yes
GOAL Recruit, retain,and develop skilled, knowledgeable, motivated,and public service-oriented Town staff
Obective Provide internal and external •rofessional develo•ment o••ortunities
Measure Number of increased staff certification levels 9 6 10
Major Accomplishments
• Successfully applied for and received $14 million in State Revolving Funds to off-set major capital project
costs to increase water capacity
• Started the estimated $68.5 million design-build project to expand the Terrible Creek Wastewater
Treatment Plant from 3 million gallons per day (MGD) to 6 MGD
• Started the estimated $11.9 million design-build project to build a gravity sewer line in the Southern
Oaks sewer basin
Key Initiatives
• Continue progress on vital capital projects to advance existing and future quality of life and service
delivery needs
FUQU,AY—VAR 1 N4 FY 2024 BUDGET
118

IIIIIIIIII
PUBLIC UTILITIES f l ,Z)) ai
Public Utilities - 39.5 FT ,-.. P .
Utilities Director- 1 FT _
Assistant Utilities Director- 1 FT __ - "
Operations Supervisor- 1 FT -
Utilities Engineer-2 FT -`
Water Resources- 18 FT -_�` _
Wastewater Resources- 16 FT
Administrative Support-0.5 FT -
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual 'mended Estimated 'dopted
Water
Salary and Benefits $617,900 $762,785 $747,946 $1,423,742 $1,352,555 $1,574,476
Professional Services 17,048 30,813 63,417 128,500 122,075 138,250
Operating Expenses 3,125,505 3,252,533 3,916,349 4,643,278 4,100,332 5,420,870
Contracted Services 24,881 28,017 22,161 40,000 38,000 41,200
Insurance 16,226 18,402 28,840 30,000 24,891 30,000
Capital 67,961 86,271 - 484,524 484,524 243,000
Total Water Operations $3,869,521 $4,178,821 $4,778,713 $6,750,044 $6,122,377 $7,447,796
BUDGET AND EXPENSE SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2024
Account Category Actual Actual Actual Amend- - stimated 'dopted
Sewer
Salary and Benefits $809,470 $932,339 $885,261 $1,738,245 $1,567,865 $1,786,054
Professional Services 17,139 30,761 56,685 102,700 82,415 117,192
Operating Expenses 849,863 1,024,817 1,101,536 1,432,753 1,262,030 1,632,300
Contracted Services 1,088,146 1,457,573 1,425,421 1,742,000 1,524,802 2,081,600
Insurance 25,288 20,824 28,767 30,000 44,702 48,000
Capital 26,330 562,001 - 359,323 255,244 220,000
Total Sewer Operations $2,816,236 $4,028,315 $3,497,670 $5,405,021 $4,737,058 $5,885,146
Significant Service Level Changes
• Added 3 new positions and related capital equipment to address essential infrastructure
maintenance needs
FUQU4`-\/4R 1 N4 FY 2024 BUDGET
119

DEBT SERVICE OVERVIEW
STATE OVERSIGHT
In North Carolina, an agency known as the Local Government Commission (LGC)oversees local
government bonded debt. The LGC must approve all bonded debt of local units based on a
conclusion that local units have sufficient fiscal capacity to repay debt and are within statutory
limitations set forth by the Local Government Bond Act of North Carolina which limits the amount
of net bonded debt of local units to 8% of the appraised value of property subject to taxation.
Staff of the State and Local Government Division of the State Treasurer's office supports the
LGC, conducts competitive bond sales on behalf of units, closely oversees negotiated debt, and
assists local units with other fiscal management issues.
BOND RATINGS
Fuquay-Varina has bond ratings of AAA from Standard & Poor's, the best possible rating for a
local government, and Aa1 from Moody's Investors for its general obligation debt. Fuquay-Varina
has bond ratings of AA from Standard & Poor's and Aa2 from Moody's Investors for its revenue
bond debt. Rating agency Standard & Poor's noted the Town's very strong management
conditions with strong financial practices and policies when awarding its excellent rating. Prudent
financial decisions resulted in strong budgetary flexibility and budgetary performance that
allowed Fuquay-Varina to maintain very strong reserves
Excellent credit ratings are important because they positively affect Fuquay-Varina's debt costs
through lower interest rates by demonstrating that investments in Fuquay-Varina's debt
issuances are low risk. These excellent credit ratings help Fuquay-Varina secure the financing
it needs to fund the improvements in the five year plan.
TYPES OF DEBT
Fuquay-Varina currently holds seven different types of debt obligations: public improvement
(general obligation) bonds, public improvement (general obligation) refunding bonds, limited
obligation bonds, installment purchases, revenue bonds, and revenue refunding bonds.
Specifics on each debt obligation are noted in a separate section below.
Public improvement bonds, more commonly referred to as general obligation bonds, is debt
whose principal and interest payments are collateralized by the full faith, credit, and taxing power
of the organization issuing them. This type of debt is usually the least expensive financing option
but requires voter approval in North Carolina. This type of bond is most often used to fund
general government activities, but they can also be used to fund activities in an enterprise fund
(one that functions similar to business and is self-supporting through sales and service
revenues). Fuquay-Varina issued a general obligation bond in 2010 on behalf of the Water and
Sewer Utility Enterprise Fund. This bond is serviced by the Utility Enterprise Fund and deducted
from net bonded debt as it considered to be self-financing.
A general obligation refunding bond retires existing bonds to achieve budgetary savings through
lower interest rates. Similar to a personal mortgage, refunding is simply the refinancing of long-
term debt. Refunding existing debt does not require voter approval.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
120

Limited obligation bonds' principal and interest repayment is guaranteed by the asset being
financed; therefore, public referendums are not required prior to the issuance of these bonds.
Installment purchases are financed by borrowing from financial institutions to purchase an asset
through a contract, with the asset serving as collateral.
Promissory notes are a signed note promising to repay funds according to the terms stated in
the document. Fuquay-Varina's promissory note reflects a loan received through the North
Carolina Department of Environment and Natural Resources.
Revenue bonds are long-term debt instruments that will be repaid from the receipts of the water
and sewer utility system. Revenue bonds require a trust agreement between Fuquay-Varina and
a trustee for the benefit of the bondholders. In this trust agreement, Fuquay-Varina made certain
covenants, or promises, regarding utility rates and the operation of the utility system.
Revenue refunding bonds retire existing bonds to achieve budgetary savings through lower
interest rates.
HISTORICAL OVERVIEW OF OUTSTANDING DEBT
Serviced by the General Fund, in issuance order:
2007 In April 2007 Fuquay-Varina issued an Installment note in the amount of $2,000,000 for
the renovation I construction to the existing Community Center. This note is payable in
annual payments of $100,000 plus interest (4.34%) with a final payment of interest due
April 1, 2026.
2012 In October 2012 Fuquay-Varina issued $3,500,000 in General Obligation Bonds to
finance Transportation improvements. Principal payments are due each April 1 and
interest payments (1.0%-2.0%) are due every April and October with a final principal and
interest payment due April 1, 2032.
2015 In July 2015 Fuquay-Varina issued an Installment note in the amount of $6,000,000 for
the construction of the Public Service Center. This note is payable in annual payments of
$400,000 plus interest (2.84%) with a final payment of interest due July 15, 2030. While
this note is serviced in the General Fund, the Utility Fund annually transfers half of the
fiscal year's debt obligation as Utility operations also use this facility. The interest rate on
this note was modified in November 2021 to 1.95%.
2018 In December 2018 Fuquay-Varina issued $17,350,000 in General Obligation Bonds to
finance Transportation improvements. Principal payments are due each January 1 and
interest payments (3.6%-5.0%) are due every January and July with a final principal and
interest payment due January 1, 2039.
2018 In November 2018 Fuquay-Varina issued $11,115,000 in Limited Obligation Bonds to
finance the new Town Hall project. Principal payments are due each November 1 and
interest payments (3.75%-5.0%) are due every May and November with a final principal
and interest payment due November 1, 2038.
F'UQUi Y—\'i R 1 NA FY 2024 BUDGET
121

2019 In May 2019 Fuquay-Varina issued $2,900,000 in Refunding Bonds to refinance existing
debt in order to decrease debt expense. Principal payments are due each August 1 and
interest payments (5.0%) are due every February and August with a final principal and
interest payment due August 1, 2029. Savings over the remainder of this debt issuance
is $59,560.
2021 In December 2021 Fuquay-Varina issued an Installment note in the amount of$1,279,000
for the purchase of a Fire engine. The principal payments vary over the term of this loan,
averaging $255,800 annually, plus interest (1.27%) with a final payment due November
1, 2026.
2022 In August 2022 Fuquay-Varina issued an Installment note in the amount of $7,305,000
for the construction of Fire Station #4. The principal payments vary over the term of this
loan, averaging $365,250 annually, plus interest (3.41%)with a final payment due August
1, 2042.
2023 In May 2023 Fuquay-Varina issued $1,650,000 in General Obligation Bonds to partially
finance a new Community Center. Principal payments are due each August 1 and interest
payments (5%) are due every February with a final principal and interest payment due
August 1, 2028. (Series A)
2023 In May 2023 Fuquay-Varina issued $18,500,000 in General Obligation Bonds to finance
a new Community Center. Principal payments are due each August 1 and interest
payments (average 4.724%) are due every February with a final principal and interest
payment due August 1, 2044. (Series B)
2023 In May 2023 Fuquay-Varina issued $3,650,000 in General Obligation Bonds to finance a
transportation projects. Principal payments are due each August 1 and interest payments
(average 4.732%) are due every February with a final principal and interest payment due
August 1, 2044. (Series B)
Serviced by the Utility Fund, in issuance order:
2016 In March 2016 Fuquay-Varina issued $30,185,000 in Water and Sewer Revenue Bonds
to finance improvements to the Town's Terrible Creek Wastewater Treatment Plant
project. Principal payments are due each April 1 and interest payments (3.0% — 5.0%)
are due every April and October with a final principal and interest payment due April 1,
2041. Of the total, $9.625 million was refunded in FY 2022, bringing the remaining
principal balance as of June 30, 2023 to $16,185,000.
2022 In April 2022 Fuquay-Varina issued $17,351,000 in Water and Sewer Revenue Bonds to
refund prior debt issuances. Projects included in the refunding bond are the 2005
Harnett County Sewer project, $9.625 million of the 2016 Terrible Creek Wastewater
Treatment Plant project, and various water and sewer projects from 2010 and 2016
debt issuances. Principal payments are due each April 1 and interest payments (2.2%)
are due every April and October with a final principal and interest payment due April 1,
2041. Savings over the remainder of this debt issuance is $1,359,557.
FUQUAY-\/AP 1 NA FY 2024 BUDGET
122

2023 In May 2023 Fuquay-Varina issued $2,000,000 in General Obligation Bonds to finance
Utility Water projects. Principal payments are due each August 1 and interest payments
(average 4.659%) are due every February with a final principal and interest payment due
August 1, 2044. (Series B)
2023 In May 2023 Fuquay-Varina issued $3,000,000 in General Obligation Bonds to partially
finance the Southern Oaks Gravity Sewer Line project. Principal payments are due each
August 1 and interest payments (average 4.659%) are due every February with a final
principal and interest payment due August 1, 2044. (Series B)
FY 2024 DEBT OUTLOOK
In FY 2023 Fuquay-Varina issued $36.1 million of debt, divided in two series, to move forward
with vital capital projects. FY 2024 is poised to be an historic year with an estimated debt
issuance of $220.54 million planned to support General and Utility capital projects to secure the
Town's future prosperity.
Forecasting the amount and timing of debt issuance in FY 2024 has been difficult as the projects
involved are complex. Project cost and bond amounts will be determined by final bid amounts
and receiving these has been a significant challenge. In addition, the two largest projects,
Sanford Water Plant Expansion and Sanford Conveyance, involve multiple towns collaborating
through an interlocal agreement. Without final bids the towns cannot receive approval from the
Local Government Commission (LGC) to issue revenue bonds. The LGC only meets once a
month which further slows the process. Debt service in the FY 2024 budget was based on the
sale of debt early in fiscal year, the timing of the debt issuance has now shifted to January 2024.
This may shift debt service repayments from FY 2024 to FY 2025. The structure of the debt
service shouldn't change. The larger issuances are structured for interest only payments for the
first three years of payments. The State Revolving Loan (SRF) payment structure is that no
repayment is required until substantial project completion.
Regardless of the cost and timing of debt issuance, the information contained in the rest of this
section confirms that Fuquay-Varina has ample resources and fiscal capacity to issue debt and
fund capital projects as they are ready to proceed.
EFFECTS OF DEBT
As a rapidly expanding community, Fuquay-Varina will need to issue debt to fund infrastructure
improvements to meet growing needs and maintain current and anticipated service levels. The
responsible use of debt to fund infrastructure improvements allows the Town to advance
infrastructure investments in a fiscally prudent manner, while allowing beneficiaries of the
investments to participate in sharing the cost. As a sound financial practice, the Town pays off
debt-financed infrastructure on an aggressive repayment timeframe that is shorter than the life
of the asset. Anticipated debt borrowing and debt service costs have been included in the five
year plan in order to ensure Fuquay-Varina has the financial resources to sustainably support
future operational and capital needs.
FUQUAY-VAR 1 NA FY 2024 BUDGET
123

OUTSTANDING DEBT/FY2024 DEBT RETIREMENT
PRINCIPAL PRINCIPAL
ISSUE PRINCIPAL BALANCE TO BE RETIRING IN FY 2024 OUTSTANDING
DATE SERIES BORROWED AS OF 7/1/23 ISSUED PRINCIPAL INTEREST 6/30/2024
GENERAL DEBT
10-12 Public Improvement Bonds $3,500,000 $1,750,000 $0 $175,000 $39,625 $1,575,000
11-18 Limited Obligation Bonds 11,115,000 8,880,000 - 555,000 409,438 8,325,000
12-18 Public Improvement Bonds 17,350,000 13,850,000 - 875,000 588,688 12,975,000
05-19 Public Improvement Bond Refunding 2,900,000 2,065,000 - 285,000 96,125 1,780,000
05-23 Community Center North 2023 Series A 1,650,000 1,650,000 - - 55,229 1,650,000
05-23 Community Center North 2023 Series B 18,500,000 18,500,000 - - 595,357 18,500,000
05-23 Streets 2023 Series B 3,650,000 3,650,000 - - 117,955 3,650,000
2024 Tansportation Bond - - 10,450,000 - - 10,450,000
04-07 Installment Purchase(Community Center) 2,000,000 300,000 - 100,000 12,780 200,000
07-15 Installment Purchase(Public Service Center) 6,000,000 3,200,000 - 400,000 62,400 2,800,000
12-21 Installment Purchase(Fire Apparatus) 1,279,000 1,028,000 - 252,000 13,056 776,000
07-22 Installment Purchase(Fire Station#4) 7,305,000 7,305,000 - 366,000 242,860 6,939,000
2024 Fire Engines(4) Installment Purchase - - 3,528,000 - - 3,528,000
TOTAL GENERAL DEBT $75,249,000 $62,178,000 $13,978,000 $3,008,000 $2,233,511 $73,148,000
N
WATER&SEWER DEBT
03-16 Revenue Bonds $30,185,000 $16,185,000 $0 $975,000 $789,350 $15,210,000
07-21 Revenue Bond Refunding 17,351,000 14,890,000 - 1,173,000 327,580 13,717,000
05-23 Water 2023 Series B 3,000,000 3,000,000 - - 96,571 3,000,000
05-23 Sewer 2023 Series B 2,000,000 2,000,000 - - 64,393 2,000,000
2024 Sanford Water Plant Expansion - - 62,235,000 - 1,210,000 62,235,000
2024 Sanford Water Conveyance - - 64,321,365 - - 64,321,365
2024 Elevated Water Tower - - 7,000,000 - - 7,000,000
2024 N. Harnett County Wastewater Plant Expansion - - 52,200,000 - 1,250,000 52,200,000
2024 Southern Oaks Sewer Gravity Line - - 11,910,000 - - 11,910,000
2024 Terrible Creek Wastewater Plant Expansion - - 68,535,130 - 1,250,000 68,535,130
TOTAL WATER&SEWER DEBT $52,536,000 $36,075,000 $266,201,495 $2,148,000 $4,987,894 $300,128,495
TOTAL $127,785,000 $280,179,495 $5,156,000 $7,221,405 $373,276,495
TOTAL PRINCIPAL PLUS INTEREST TO BE RETIRED IN FY 2024 $12,377,405

OUTSTANDING DEBT
(Estimated) (Budgeted)
As of 6/30/23 As of 6/30/24
GENERAL DEBT
General Obligation Bonds $41,465,000 $40,130,000
Limited Obligation Bonds 8,880,000 8,325,000
Installment Purchases 11,833,000 10,715,000
$62,178,000 $59,170,000
WATER&SEWER DEBT
General Obligation Bonds $5,000,000 $5,000,000
$5,000,000 $5,000,000
Gross Bonded Debt $67,178,000 $64,170,000
Bonded Debt included in Gross Debt
Incurred for Utilities ($5,000,000) ($5,000,000)
Net Bonded Debt $62,178,000 $59,170,000
DEBT LIMIT AND LEGAL DEBT LIMIT MARGIN
(Estimated) (Budgeted)
As of 6/30/23 As of 6/30/24
*Net assessed value $5,755,459,076 $6,316,617,647
**Debt limit-8% of total assessed value $460,436,726 $505,329,411
Less:Amount of debt applicable to debt limit $62,178,000 $59,170,000
Legal Debt Margin $398,258,726 $446,159,411
* Assessed values are estimated for FY 2023 and budgeted for FY 2024.
**Debt limit:The Town is subject to the Local Government Bond Act of North Carolina which limits the amount
of net bonded debt the Town may have outstanding to 8%of the appraised value of property subject to taxation.
125

CURRENT ANNUAL DEBT SERVICE REQUIREMENTS
Fiscal Years 2021 - 2050
Total
Fiscal General Debt Utilities Debt Principal Debt Service
Year Principal Interest Principal Interest Principal &Interest General Utility
21 2,385,000 1,552,034 1,428,592 2,392,941 3,813,592 7,758,567 3,937,034 3,821,533
22 2,390,000 1,498,431 2,182,000 1,143,094 4,572,000 7,213,525 3,888,431 3,325,094
23 2,886,000 1,525,833 2,304,000 1,212,366 5,190,000 7,928,199 4,411,833 3,516,366
24 3,008,000 2,233,511 2,148,000 3,737,894 5,156,000 11,127,405 5,241,511 5,885,894
25 4,211,000 2,472,590 2,334,000 1,287,474 6,545,000 10,305,064 6,683,590 3,621,474
26 4,210,000 2,295,606 2,383,000 1,213,406 6,593,000 10,102,012 6,505,606 3,596,406
27 4,118,000 2,118,571 2,438,000 1,126,835 6,556,000 9,801,406 6,236,571 3,564,835
28 3,861,000 1,945,413 1,572,000 1,037,249 5,433,000 8,415,662 5,806,413 2,609,249
29 3,865,000 1,775,174 1,538,000 964,895 5,403,000 8,143,069 5,640,174 2,502,895
30 3,875,000 1,604,403 1,602,000 891,454 5,477,000 7,972,857 5,479,403 2,493,454
31 3,670,000 1,440,831 1,675,000 814,660 5,345,000 7,600,491 5,110,831 2,489,660
32 3,240,000 1,291,085 1,645,000 734,160 4,885,000 6,910,245 4,531,085 2,379,160
33 2,995,000 1,149,513 1,691,000 691,715 4,686,000 6,527,228 4,144,513 2,382,715
34 2,970,000 1,014,317 1,733,000 647,963 4,703,000 6,365,280 3,984,317 2,380,963
35 2,960,000 886,745 1,800,000 602,882 4,760,000 6,249,627 3,846,745 2,402,882
36 2,955,000 758,486 1,869,000 512,632 4,824,000 6,095,118 3,713,486 2,381,632
37 2,950,000 632,852 1,919,000 463,859 4,869,000 5,965,711 3,582,852 2,382,859
38 2,950,000 510,781 2,015,000 413,691 4,965,000 5,889,472 3,460,781 2,428,691
39 2,955,000 387,553 2,115,000 312,566 5,070,000 5,770,119 3,342,553 2,427,566
40 1,550,000 274,638 2,225,000 206,441 3,775,000 4,256,079 1,824,638 2,431,441
41 1,550,000 202,941 2,283,000 94,816 3,833,000 4,130,757 1,752,941 2,377,816
42 1,550,000 137,170 350,000 36,600 1,900,000 2,073,770 1,687,170 386,600
43 1,550,000 77,323 365,000 22,300 1,915,000 2,014,623 1,627,323 387,300
44 1,185,000 23,700 375,000 7,500 1,560,000 1,591,200 1,208,700 382,500
45 - -- - - --- - --- -
Annual Debt Service
$12,000,000
-
$10,000,000 I
'
$8,000,000 - ' -
$6,000,000 - --z,- _ - ----
-
$4,000,000 - �� -
$2,000,000 - - - - - - - - - - v = -
$0 I I I - I I I I I - I I I
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
❑Debt Service General ❑Debt Service Utility
126

GENERAL DEBT FUND SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Actual Adopted Amended Estimated Adopted
REVENUES
Bond Proceeds-Principal $0 $0 $0 $0 $0 $0 $0
Transfer from General Fund 3,685,375 3,488,031 3,109,302 4,024,631 4,024,631 4,024,631 4,856,540
Transfer from Capital Reserves 403,263 481,740 471,324 459,094 459,094 459,094 448,771
Transfer from Utility Fund 268,160 262,480 256,800 223,108 223,108 223,108 231,200
Interest Earnings 10,783 — — —
TOTAL REVENUES $4,367,581 $4,232,251 $3,837,426 $4,706,833 $4,706,833 $4,706,833 $5,536,511
EXPENDITURES
Principal $5,685,000 $2,385,000 $2,390,000 $2,886,000 $2,886,000 $2,886,000 $3,008,000
Interest 1,693,674 1,552,034 1,482,331 1,525,833 1,525,833 1,525,833 2,233,511
Bond Issuance Cost — --- 16,100 --- — ---
TOTAL EXPENDITURES $7,378,674 $3,937,034 $3,888,431 $4,411,833 $4,411,833 $4,411,833 $5,241,511
Revenues Over(Under)Expenditures ($3,011,093) $295,217 ($51,005) $295,000 $295,000 $295,000 $295,000
BEGINNING FUND BALANCE $4,301,143 $1,290,050 $994,833 $1,045,837 $1,045,837 $1,045,837 $1,340,837
ENDING FUND BALANCE $1,290,050 $994,833 $1,045,837 $1,340,837 $1,340,837 $1,340,837 $1,635,837
127

GENERAL FUND DEBT RATIOS
Ratio of Debt Service to Total Expenditures
18%
16%
Coverage Ratio Ceiling
14%
12%
10%
8%
6% ■ ■ E . ■ ■ ■ ■ ■ ■ ■
2%2% ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
0% 1 1 i 1 1 1 1 1 1 i 1 1 1
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year
Fuquay-Varina's Debt Policy states that the ratio of General Fund debt service as a
percentage of total General Fund expenditures should not exceed 15%.
Fuquay-Varina's General Fund debt service remains below that target amount.
Ratio of Debt Service to Assessed Value
0.30%
0.25% - - . Coverage Ratio Ceiling
0.20%
0.15%
0.10%
0.05% , , , . I
I
I
0.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year
Fuquay-Varina's Debt Policy states that General Fund debt service as a percentage of
total assessed value of taxable property should not exceed 2.5%.
Fuquay-Varina's General Fund debt service remains well below that target amount.
Ratio of Ratio of
Fiscal General General Fund Debt Service to Debt Service
Year Debt Total Total Assessed to Assessed
End Service Expenditures Expenditures Value Value
2013 $917,445 $15,270,045 6.01% 1,968,188,289 0.05%
2014 $1,114,253 $16,637,818 6.70% 2,427,040,114 0.05%
2015 $1,093,489 $17,879,756 6.12% 2,528,630,737 0.04%
2016 $1,072,817 $20,151,583 5.32% 2,694,341,947 0.04%
2017 $1,536,643 $22,140,988 6.94% 2,995,350,457 0.05%
2018 $1,544,634 $23,801,747 6.49% 3,177,240,202 0.05%
2019 $1,776,784 $26,335,739 6.75% 3,451,550,634 0.05%
2020 $4,078,735 $29,914,317 13.63% 3,663,827,265 0.11%
2021 $3,937,034 $32,134,362 12.25% 4,767,365,728 0.08%
2022 $4,334,645 $44,480,120 9.75% 4,723,354,795 0.09%
2023 $4,411,833 $50,613,162 8.72% 5,694,264,706 0.08%
2024 $5,241,511 $50,613,162 10.36% 6,316,617,647 0.08%
128

EXISTING AND POTENTIAL GENERAL DEBT SUMMARY
EXISTING GENERAL DEBT 2023/24 2024/25 2025/26 2026/27 2027/28
Community Center
Principal $100,000 $100,000 $100,000 $0 $0 *ends 2026
Interest 13,020 8,680 4,340 - -
2019 Refunding Bonds
Principal 285,000 290,000 290,000 295,000 300,000 "ends 2030
Interest 96,125 81,750 67,250 52,625 37,750
2012 Bonds
Principal 175,000 175,000 175,000 175,000 175,000 *ends 2032
Interest 39,625 36,125 32,625 29,125 25,450
Public Service Center""
Principal 400,000 400,000 400,000 400,000 400,000 "ends 2031
Interest 62,400 54,600 46,800 39,000 31,200
2018 G.O.Bonds
Principal 875,000 875,000 875,000 875,000 875,000 "ends 2039
Interest 588,688 544,938 501,188 457,438 413,688
2018 LOB's(Gov't Fac)
Principal 555,000 555,000 550,000 550,000 550,000 *ends 2039
Interest 409,438 381,688 354,063 326,563 299,063
2021 IFC(Fire Engine)
Principal 252,000 255,000 259,000 262,000 - "ends 2027
Interest 13,056 9,855 6,617 3,327 -
Fire Station#4
Principal($5M) 366,000 366,000 366,000 366,000 366,000 *ends 2042
Interest 242,860 230,380 217,899 205,418 192,938
Recreation Bond
Principal($18.5M) - 680,000 680,000 680,000 680,000 "ends 2044
Interest 595,566 877,850 843,850 809,850 775,850
Two-Thirds GO Bonds
Principal($1.65M) - 330,000 330,000 330,000 330,000 "ends 2029
Interest 55,230 74,250 57,750 41,250 24,750
Transportation Bond
Principal($3.65M) - 185,000 185,000 185,000 185,000 *ends 2044
Interest 117,504 172,475 163,225 153,975 144,725
Principal $3,008,000 $4,211,000 $4,210,000 $4,118,000 $3,861,000
Interest 2,233,511 2,472,590 2,295,606 2,118,571 1,945,413
Subtotal Existing Debt $5,241,511 $6,683,590 $6,505,606 $6,236,571 $5,806,413
**Utility Fund Pays Half
NEW GENERAL DEBT 2023/24 2024/25 2025/26 2026/27 2027/28
Fire Engine(4) Replacement
Principal($882K each) $0 $642,920 $671,852 $702,084 $733,676 *ends 2028
Interest - 160,728 131,796 101,564 69,972
Transportation Bond
Principal($10M) - 500,000 500,000 500,000 500,000 "ends 2045
Interest - 500,000 475,000 450,000 425,000
Transportation Bond
Principal($10M) - - 500,000 500,000 500,000 "ends 2047
Interest - - 500,000 475,000 450,000
Principal $0 $1,142,920 $1,671,852 $1,702,084 $1,733,676
Interest - 660,728 1,106,796 1,026,564 944,972
Subtotal New Debt $0 $1,803,648 $2,778,648 $2,728,648 $2,678,648
TOTAL GENERAL FUND DEBT $5,241,511 $8,487,238 $9,284,254 $8,965,219 $8,485,061
FUQU4AY-\/AR 1 NA FY 2024 BUDGET
129

UTILITY DEBT FUND SUMMARY
FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Adopted Amended Estimated Adopted
REVENUES
Transfer from Utility Capital Reserve $0 $3,402,065 $3,516,366 $3,516,366 $3,516,366 $4,521,654
Transfer from Utility Operating Fund -- - -- - -- 1,364,240
TOTAL REVENUES $0 $3,402,065 $3,516,366 $3,516,366 $3,516,366 $5,885,894
EXPENDITURES
Principal-Bonds-Water $0 $90,090 $440,000 $440,000 $440,000 $567,520
Principal-Bonds-Sewer -- 2,091,910 1,864,000 1,864,000 1,864,000 1,580,480
Interest-Bonds-Water -- 24,642 273,996 273,996 273,996 1,698,073
Interest-Bonds-Sewer -- 1,118,452 938,370 938,370 938,370 2,039,821
TOTAL EXPENDITURES $0 $3,325,094 $3,516,366 $3,516,366 $3,516,366 $5,885,894
Revenues Over(Under)Expenditures $0 $76,971 $0 $0 $0 $0
BEGINNING FUND BALANCE $0 $0 $76,971 $76,971 $76,971 $76,971
ENDING FUND BALANCE $0 $76,971 $76,971 $76,971 $76,971 $76,971
Prior to FY 2022 Utility related debt was serviced in Fund 61,the Utility Operating Fund.
130

UTILITY FUND DEBT RATIOS
Ratio of Debt Service to Operating Expenditures
60%
50%
40% ,
30% I
20% —
11,1ilif
10%
0%
2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year
This chart compares debt service to total utility operating expenditures. Revenue Bond
agreements require revenue coverage of at least 120% - 150%, or a ratio of 1.2 to 1.5.
Fuquay-Varina's Utility debt service coverage has been well above this since FY 2012.
Debt sevice transitioned from being paid in the Utility Operating Fund to being paid in the
Utility Debt Service Fund in FY 2022. The revenues used to calculate the revenue
coverage in FYs 2022, 2023 & 2024 are the system development fees received in the
Utility Capital Reserve Fund which supports the Debt Service Fund.
Utility Debt Service Operating / Debt Service
Utility Operating to Utility Capital to Utility
Fiscal Debt Expenditures Operating Reserve (CR) Operating /CR
Year Service & Debt Service Expenditures Revenues Revenues
2012 $2,435,967 $6,189,058 39.4% $6,710,970 2.75
2013 $3,793,018 $7,893,033 48.1% $7,006,246 1.85
2014 $2,332,043 $6,884,000 33.9% $7,127,546 3.06
2015 $2,278,666 $7,271,396 31.3% $8,306,631 3.65
2016 $2,322,234 $8,038,585 28.9% $9,410,863 4.05
2017 $3,245,162 $9,486,922 34.2% $10,508,918 3.24
2018 $3,395,612 $10,503,858 32.3% $11,684,916 3.44
2019 $4,126,246 $11,430,974 36.1% $12,210,183 2.96
2020 $4,071,479 $11,640,245 35.0% $13,190,519 3.24
2021 $3,821,533 $13,079,811 29.2% $14,461,922 3.78
2022 $3,325,094 $11,309,189 3.40
2023 $3,516,366 $7,536,000 2.14
2024 $6,278,058 $9,485,600 1.51
131

EXISTING UTILITY DEBT 2023/24 2024/25 2025/26 2026/27 2027/28
Combined Utilities Bonds,
Series 2016
Principal $975,000 $1,015,000 $1,055,000 $1,110,000 $1,165,000 *ends 2040
Interest 789,350 750,350 709,750 657,000 601,500
Combined Utilities Bonds,
Series 2021
Principal 1,173,000 1,169,000 1,168,000 1,163,000 232,000 *ends 2041
Interest 327,580 301,774 276,056 250,360 224,774
Public Service Center**
Principal 200,000 200,000 200,000 200,000 200,000 *ends 2031
Interest 31,200 27,300 23,400 19,500 15,600
2023 Water GO Bond
Principal($3M) - 90,000 95,000 100,000 105,000 *ends 2044
Interest 96,571 141,200 136,575 131,700 126,575
Southern Oaks Gravity Sewer
Line(2023 GO Bond)
Principal($2M) - 60,000 65,000 65,000 70,000 *ends 2044
Interest 64,393 94,150 91,025 87,775 84,400
Principal $2,348,000 $2,534,000 $2,583,000 $2,638,000 $1,772,000
Interest 1,309,094 1,314,774 1,236,806 1,146,335 1,052,849
Subtotal Existing Debt $3,657,094 $3,848,774 $3,819,806 $3,784,335 $2,824,849
**Utility Fund Pays Half of General Fund debt issuance
NEW UTILITY DEBT 2023/24 2024/25 2025/26 2026/27 2027/28
Sanford Expansion
Principal($23.84M) $0 $0 $0 $575,536 $604,313 *ends 2049
Interest 1,210,000 1,192,237 1,192,237 1,192,237 1,163,460
Sanford Exp.SRF Loan
Principal($35M) - - - 1,750,000 1,750,000 *ends 2047
Interest - - - 236,833 385,700
Southern Oaks Gravity Sewer
Line
Principal($11.9M) - - - 284,402 298,622 *ends 2049
Interest - 589,145 589,145 582,035 567,460
N.Harnett Co WWTP Exp
Principal($50M) - - - 1,205,377 1,265,646 *ends 2049
Interest 1,250,000 2,496,967 2,496,967 2,496,967 2,436,698
Harnett County Water District
Purchase
Principal($5M) - - 104,762 110,000 115,500 *ends 2050
Interest - 125,000 247,381 242,012 236,374
Sanford Conveyance
Principal($69.3M) - - - 1,673,197 1,756,857 *ends 2049
Interest - 3,466,068 3,466,065 3,466,068 3,382,408
Terrible Creek WWTP Exp
Principal($68.5M) - - - - 1,654,220 *ends 2049
Interest - 1,713,378 3,426,757 3,426,757 3,385,401
1 MGD Tank
Principal($7M) - - 157,296 165,161 173,419 *ends 2049
Interest - 350,000 350,000 342,135 333,877
1.5 MGD Tank
Principal($9M) - - - - - *ends 2047
Interest - - - - 456,000
Principal $0 $0 $262,058 $5,763,673 $7,618,577
Interest 2,460,000 9,932,795 11,768,552 11,985,044 12,347,378
Subtotal New Utility Debt $ 2,460,000 $ 9,932,795 $ 12,030,610 $ 17,748,717 $ 19,965,956
TOTAL UTILITY DEBT $6,117,094 $13,781,569 $15,850,416 $21,533,052 $22,790,805
132

CAPITAL IMPROVEMENTS BUDGET OVERVIEW
This section focuses exclusively on capital projects, equipment, and apparatus expenditures
budgeted in the Town's capital project funds.
In North Carolina, local governments may budget capital projects in either the annual budget
ordinance or in one or more capital project ordinances during the fiscal year. The Town of
Fuquay-Varina follows the latter method.
If local governments choose the project ordinance option, they still must include information on
project ordinances they anticipate adopting during the next fiscal year in the Budget Ordinance.
The revenues and expenditures in the FY 2023 — 2024 Budget Ordinance for Funds 40, 59, and
60 is for informational purposes only; project ordinances will be submitted for adoption at regular
Town Board meetings during the fiscal year.
Fuquay-Varina's operational capital threshold is $5,000. The Capital Improvement Budget and
Plan will address those capital assets with a value of more than $25,000 and a useful life of
over three (3) years. These are budgeted in capital project funds.
Fuquay-Varina's Strategic Five Year Plan, adopted February 16, 2021, was first implemented in
the FY 2022 budget. As part of this process departments have identified five years of projects
necessary to achieve the goals of the Strategic Plan.
Identifying projects is a collaborative process between department directors, key staff, and
consultants. Department directors then work with the Town Manager's Office to prioritize those
projects that meet the most immediate needs to address growth and maintain and preserve
existing facilities and infrastructure. Water and Sewer capacity expansion is vital to the continued
growth of Fuquay-Varina and its future prosperity. These projects are so important that the Town
anticipates issuing almost $280 million in debt during the timeframe of this Five Year Plan.
The Five Year Plan is reviewed and updated during the annual budget process when the fifth
year is added. The capital improvement budget and plan includes Board-adopted revenue and
expenditure amounts for the budget fiscal year and identifies future year funding needs, these
figures are strictly for planning purposes as, in accordance with North Carolina state law, only
the budget year is officially adopted.
If significant changes to the existing Five Year Plan capital budget and plan are anticipated, the
Town Manager may use the Town Board Retreat as an opportunity for discussion and feedback.
Otherwise, it is presented to the Board during the budget workshop. The Town Manager and
staff provide an overview of the CIB/P and focus Board discussions on significant infrastructure
decisions. Board directives are confirmed during these meetings for incorporation into the
budget. This document is formally presented to Town Board with the operating budget at the first
Town Board in May and is also available to the public for review alongside the operating budget.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
133

Prior to FY2023 capital projects were budgeted in both operating and capital project funds.
Projects in the operating fund departments were those expected to be accomplished within the
budgeted fiscal year. These projects are now being tracked in the capital project funds. This
eliminates the need to transfer capital reserve funds to operating funds to support capital
projects, or for year-end budgetary and accounting adjustments should these projects not be
completed within the fiscal year.
FUNDING PRINCIPLES
Capital funding comes from a variety of sources: capital reserve (primarily system development
fees), transfers from operating funds, federal or state grants and loans, and debt. Fuquay-Varina
seeks to balance the use of these various capital funding sources and prioritize the timing of
capital projects, to ensure the CIB/P remains fiscally sustainable.
• Utilize debt judiciously to minimize additional debt service obligations
The size and scope of the Town's capital projects need necessitates the use of debt to
finance generational investments in long-term water and wastewater capacity and major
investments in recreation facilities and transportation infrastructure. The Town will
consider debt capacity and the impacts of long term debt service obligations prior to
issuing new debt. The timing of capital projects may be adjusted in order to achieve a
sustainable capital improvement program.
• Maximize the use of federal and state grants and loans to minimize reliance on debt and
capital reserve revenues.
The Town has joined the Triangle J Council of Government (now Central Pines Regional
Council) Grant Assistance program that will help the Town identify and apply for grant
and loan opportunities. In addition, this program assists local governments to collaborate
regionally to improve the likelihood of loan and grant awards.
• Maximize the use of existing capital reserve fund balances
Several strategies can be used to make the best use of capital reserve funding. Returning
unused capital project appropriations (surplus reserve revenue) to the appropriate capital
reserve for use in future projects ensures that all possible funding resources are
accurately tracked so total funds available can be found in one place and the best funding
option can be chosen. System development fee revenues can vary year to year and its
planned use is limited to qualified debt and capital expenditures meeting the requirements
prescribed by NC General Statutes.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
134

FY 2024 CAPITAL IMPROVEMENTS BUDGET
FY 2024 appropriations for the Town's capital project funds of $290,678,583 are a significant
increase over FY 2023 Adopted appropriations of $37,332,793. The primary reason is the
inclusion of $266.2 million of Water and Sewer Bond revenues and $10.45 million of
Transportation Bonds.
FY2024 TOTAL CAPITAL REVENUE Capital PRCR
$290,678,583 Reserve Transfer
1%
Capital Water
Resene Transfer Utility Operating Fund
Installment 1% Transfer
Purchase(Fire)\ <1%
1%
Utility Grant General Operating
Funds Fund Transfer
<1%
2%
Transportation
Bond
4%
Utility Revenue
Bonds
91%
ir
FY2024 TOTAL CAPITAL EXPENSE
$290,678,583
Transportation Fire PRCR
General
Bond 1% <1%
Government
3% <1%
Water
Sewer 49%
46%
Ai
FUQU4Y-VAR 1 NA FY 2024 BUDGET
135

GENERAL CAPITAL RESERVE FUND SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Actual Adopted Amended Estimated Adopted
REVENUES
Transportation Payment in Lieu $465,331 $168,500 $50,000 $0 $0 $0 $0
Recreation System Development Fees 1,747,750 1,823,750 2,229,672 1,615,000 1,615,000 1,615,000 1,371,686
Solid Waste Landfill Rebate 157,039 168,659 108,944 --- --- ---
Arts Center Naming Rights 2,875 110,375 250 --- --- ---
Arts Center Reserve 6,452 4 7,049 --- --- ---
Interest Earnings 16,813 632 12,434 --- --- --- ---
TOTAL REVENUES $2,396,260 $2,271,920 $2,408,349 $1,615,000 $1,615,000 $1,615,000 $1,371,686
OTHER FINANCING SOURCES(USES)
Sale of Equipment $0 $0 $0 $0 $0 $0 $0
Transfer from General Fund --- 3,500,000 3,500,000 --- --- --- ---
Subtotal Other Financing Sources $0 $3,500,000 $3,500,000 $0 $0 $0 $0
Transfer to General Fund ($417,390) ($205,200) ($805,000) ($403,688) ($403,688) ($403,688) $0
Transfer to Debt Service (403,263) (481,740) (471,324) (459,094) (459,094) (459,094) (448,771)
Transfer to Capital Projects (170,200) (2,265,395) (718,450) (165,710) (7,533,210) (7,533,210) (1,806,895)
Subtotal Other Financing Uses ($990,853) ($2,952,335) ($1,994,774) ($1,028,492) ($8,395,992) ($8,395,992) ($2,255,666)
TOTAL OTHER FINANCING SOURCES ($990,853) $547,665 $1,505,226 ($1,028,492) ($8,395,992) ($8,395,992) ($2,255,666)
Revenues and Other Sources Over
(Under)Expenditures and Other Uses $1,405,407 $2,819,585 $3,913,575 $586,508 ($6,780,992) ($6,780,992) ($883,980)
BEGINNING FUND BALANCE $2,608,528 $4,013,935 $6,833,520 $10,747,095 $10,747,095 $11,333,603 $4,552,611
ENDING FUND BALANCE $4,013,935 $6,833,520 $10,747,095 $11,333,603 $3,966,103 $4,552,611 $3,668,631
136

FY2024 GENERAL CAPITAL REVENUES
$16,004,895
General Fund
Transfer Capital
2% Reserve
Transfer
11%
Installment
Purchase
(Fire) Transportation
22% Bond
65%
AIWW
FY2024 GENERAL CAPITAL EXPENSES
$16,004,895
General
PRCR Government
11% 2%
I Fire
[22%
Transportation
Bond
65%
FUQUAY—\/AR 1 NA FY 2024 BUDGET
137

GENERAL CAPITAL IMPROVEMENTS BUDGET
REVENUE AND FUNDING SOURCES
General capital revenue and funding sources support transportation, fire, parks, recreation and
cultural resources, downtown, and general government capital projects such as the following:
Transportation Fire
• New roads • Fire stations
• Road widening • Engines and Aerial ladder
• Repaving trucks
• Sidewalks
Parks, Recreation and Cultural
General Government Resources
• Town government building • Community centers
construction/expansion • Parks
• Stormwater condition
assessments/rehabilitation Downtown
• Infrastructure improvements
FUNDING SUUh'C75
• General Obligation Bonds: $10,450,000
General obligation bonds are debt whose principal and interest payments are guaranteed by
the full faith, credit, and taxing power of the organization issuing them. The FY 2024 capital
improvements budget appropriates $10,450,000 of general obligation bonds in support of the
Transportation projects.
• General Fund Transfer: $220,000
Transfers from the General Fund typically support general capital projects for which funding
has not been dedicated from other sources. General Fund transfers in FY 2024 total
$220,000 and support general government projects.
■ Capital Reserve Transfer: $1,806,895
Capital Reserve funds are restricted revenues collected for future capital use. Among these
are Parks and Recreation fee in lieu, transportation payments in lieu, and sanitation and fire
equipment sale proceeds. In FY 2024 $1,806,895 of Parks and Recreation fee in lieu revenue
was transferred to support Parks and Recreation projects.
Recreation Payment in Lieu fees are paid when developers do not qualify for or choose not to
dedicate the required portion of their development for public recreation. In residential
development, a portion of the land being subdivided will be required for dedication as a public
recreation area, or a payment-in-lieu of dedication is required. The payment-in-lieu is equivalent
to the value of 1 acre for every 20 units (1/20th of an acre per unit) or any portion thereof(# units
/ 20 = acreage owed). The value of the acreage is determined by the acreage to be dedicated
FUQUAY-\/AR 1 NA FY 2024 BUDGET
138

multiplied by the appraised per acre value of the entire parcel. For single-family, duplex, row
house, and townhouse dwellings, payment shall be made on the date of submittal of the approval
of the final plat mylar for signatures to be recorded with the Wake County Register of Deeds.
For multi-family dwellings, payment shall be made prior to the issuance of a building permit. The
applicant will pay the rate in effect at the time the plan was first submitted for master plan,
preliminary subdivision, or site plan review. If there has been a change in the rate structure
between the initial submittal and the time payment is due, permit choice allows the developer to
choose which fee calculation to apply.
GENERAL CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS
General Government
Community Center Heating and Air Conditioning (HVAC) Replacement
General Fund Transfer funding of $45,000 of to support the replacement of HVAC units at the
original community center in Fuquay-Varina. This project is important to maintaining this asset
to meet Parks and Recreation's demand for programing.
Town Hall Window Replacement
This project was budgeted over two fiscal years. In FY 2024 the second and final appropriation
of $175,000 of General Operating Transfer funding will support the replacement of windows at
Town Hall. Renovations to this building were completed in October 2019; however, some
windows need replacement to maintain and preserve this asset.
Fire
Engine Replacements (4)
This new project provides $3,528,000 of Installment Purchase funding to support the purchase
of four (4) replacement fire engines. These engines are the workhorse of fire apparatus,
responding to every call for service. Replacement of these engines is necessary due to the
increasing cost of repairs and downtime experienced due to those repairs. This project is
important to providing the Fire Department with more efficient, cost-effective, and reliable fire
engines to respond to calls for service.
Transportation
SE Judd Road / Angier Road Improvements
General Obligation Bond funding of $2,250,000 is budgeted to support the SE Judd Road /
Angier Road Improvements project. Planned improvements include the addition of turn lanes as
well as pedestrian improvements that will improve traffic flow at this intersection and pedestrian
safety.
Old Honeycutt Road / Kennebec Road Improvements
General Obligation Bond funding of$1,350,000 is budgeted to support the Old Honeycutt Road
/ Kennebec Road Improvements project. Planned improvements include installing traffic signals
to improve safety for turning vehicles as well as creating better traffic flow at this intersection.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
139

Highway 55 / James Slaughter Road Improvements
General Obligation Bond funding of $2,250,000 is budgeted to support the Highway 55 /
James Slaughter Road Improvements project. Planned improvements include extending turn
lanes, signal optimization, and pedestrian improvements that will improve traffic flow at this
intersection and pedestrian safety.
Purfoy Road / Holland Road Improvements
General Obligation Bond funding of$4,600,000 is budgeted to support the Purfoy Road / Holland
Road Improvements project. Planned improvements will improve road traffic capacity and
increase safety at this intersection.
Parks & Recreation
Willow Lakes Park — Field Lights Project
PRCR Capital Reserve funding of $475,000 will support the installation of field lights at Willow
Lakes Park. This project is important to support Parks and Recreation's current and future
program and service demand by extending field use to evening hours.
Willow Lakes Park — Parking Lot Project
PRCR Capital Reserve funding of $135,000 will support the construction of a parking lot at
Willow Lakes Park. This project will improve adult and youth field sports participants' experience
by providing a paved parking lot instead of an unimproved surface.
Falcon Park — Field Lights Project
PRCR Capital Reserve funding of$175,000 will support the installation of field lights at Falcon
Park. This project is important to support Parks and Recreation's current and future program
and service demand by extending field use to evening hours.
Honeycutt Park Playground Replacement
PRCR Capital Reserve funding of $150,000 will support replacement of playground equipment
at Honeycutt Park. This project is important to maintaining safe and engaging playgrounds to
meet Parks and Recreation's current and future program and service demand.
Alston Ridge Greenway Trail Construction
Capital Reserve funding of $871,895 is expected to complete construction of the Alston Ridge
greenway. This project will expand outdoor recreational opportunities for people of all age
groups.
FU0 JAY-VA R 1 NA FY 2024 BUDGET
140

GENERAL FIVE YEAR CAPITAL IMPROVEMENTS PROGRAM
Fuquay-Varina's Strategic Five Year Plan, adopted February 16, 2021 , was first implemented in
the FY 2022 budget. It is reviewed and updated during the annual budget process when the fifth
year is added. As part of this process departments identify projects necessary to achieve the
goals of the Strategic Plan. As a rapidly growing community, projects are prioritized to meet the
most immediate needs to address growth and maintain and preserve existing facilities and
infrastructure.
General Fund PRCR
2024 Transfer Capital Streets Bond Other Bond Total
Reserve
GENERAL GOVERNMENT
Community Center HVAC Replacement $ 45,000 $ - $ - $ - $ 45,000
Town Hall Window Replacement 175,000 - - - 175,000
FIRE
Fire Station(4)Engine Replacement - - - 3,528,000 3,528,000
TRANSPORTATION
SE Judd/Angier Road Improvements - - 2,250,000 - 2,250,000
Old Honeycutt/Kennebec Improvements - - 1,350,000 - 1,350,000
Broad Street(HWY 55)/James Slaughter Road Improvements - - 2,250,000 - 2,250,000
Purfoy/Holland Road Improvements - - 4,600,000 - 4,600,000
PARKS&RECREATION -
Willow Lakes Park-Field Lights - 475,000 - - 475,000
Willow Lakes Parking Lot - 135,000 - - 135,000
Falcon Park-Field Lights - 175,000 - - 175,000
Alston Ridge Greenway Trail Construction - 871,895 - - 871,895
Honeycutt Park Playground Replacement - 150,000 - - 150,000
TOTAL FY2024 GENERAL CAPITAL PROJECTS $ 220,000 $1,806,895 $10,450,000 $ 3,528,000 $ 16,004,895
General Fund PRCR
2025 Transfer Capital Streets Bond Other Bond Total
Reserve
GENERAL GOVERNMENT
Town Hall Window Roof Replacement $ 95,000 $ - $ - $ - $ 95,000
ENGINEERING
Pavement Condition Study 100,000 - - - 100,000
Parking Deck 9,000,000 9,000,000
Circulator Implementation Capital 350,000 350,000
TRANSPORTATION
Bass Lake/Hilltop Needmore/Sunset Lake Improvements - - 3,240,000 - 3,240,000
Old Honeycutt/Broad Street(HWY 55)Road Improvements - - 2,550,000 - 2,550,000
Hilltop Needmore/Johnson Pond Road Improvements - - 2,125,000 - 2,125,000
PARKS&RECREATION
Hilltop Needmore Town Park&Preserve Improvements Design - 625,000 - - 625,000
Banks Road Park-Baseball Fields with Lights - 385,000 - - 385,000
Action Park Ballfield#1 &#2 Light Replacement - 275,000 - - 275,000
Willow Lakes Park Restrooms - 325,000 - - 325,000
South Park Field#3 Dugouts - 80,000 _ - - r 80,000
South Lakes Greenway Trail Bridge Replacement 125,000 125,000
TOTAL FY 2025 GENERAL CAPITAL PROJECTS $ 9,545,000 $1,815,000 $ 7,915,000 $ - $ 19,275,000
Ge .l Fund PRC-
2026 Transfer Capital Streets Bond Other Bond
Reserve
GENERAL GOVERNMENT
Arts Center Roof Replacement $ 40,000 $ - $ - $ - $ 40,000
Public Service Center Open Bay Addition - - - 2,000,000 2,000,000
PARKS&RECREATION
Banks Road-Restrooms - 325,000 - - 325,000
Alston Ridge-Restrooms - 225,000 - - 225,000
Action Park Tennis Court Light Replacement - 95,000 - - 95,000
Action Park Ballfield#3 Light Replacement - 165,000 - - 165,000
CHEEP-Restrooms - 250,000 - - 250,000
TOTAL FY 2026 GENERAL CAPITAL PROJECTS $ 40,000 $1,060,000 $ - $ 2,000,000 $ 3,100,000
141

GENERAL FIVE YEAR CAPITAL IMPROVEMENTS PROGRAM
General Fund PRCR
2027 Transfer Capital Streets Bond Other Bond T. .
Reserve
GENERAL GOVERNMENT
Hilltop Needmore Town Park&Preserve Roof Replacement $ 35,000 $ - $ - $ - $ 35,000
Community Center HVAC Replacement 180,000 - - - 180,000
FIRE
Fire Station#5 Land Purchase 400,000 - - - 400,000
Fire Station#5 Design 400,000 - - - 400,000
PARKS&RECREATION
Council Gym Renovation-Design - 150,000 - - 150,000
Wake County Property Design-Master Plan - 185,000 - - 185,000
TOTAL FY 2027 GENERAL CAPITAL PROJECTS $ 1,015,000 I $ 335,000 I $ - $ - $ 1,350,000
General Fund PRCR
2028 Transfer Capital Streets Bond Other Bond Total
Reserve
GENERAL GOVERNMENT
Arts Center-Painting Exterior $ 30,000 $ - $ - $ - $ 30,000
Community Center Exterior Silver Trim Replacement 95,000 - - - 95,000
Hilltop Needmore Town Park&Preserve Clubhouse Window 30,000 30,000
Replacement
Town Hall HVAC Replacement Units#1 &2 200,000 - - - 200,000
POLICE i
Substation 750,000 - 750,000
FIRE
Fire Station#5 Construction - - - 8,000,000 8,000,000
Fire Station#5 Engine - - - 1,031,185 1,031,185
PARKS&RECREATION
Action Park-Additional Parking - 225,000 - - 225,000
Action Park-Restrooms/Courtyard Replacement - 650,000 - - 650,000
TOTAL FY 2028 GENERAL CAPITAL PROJECTS $ 1,105,000 $ 875,000 $ - $ 9,031,185 $ 11,011,185
Revenue 5 Year Total by Revenue Source $11,925,000 $5,891,895 $18,365,000 $14,559,185 $ 50,741,080

PARKS & RECREATION CAPITAL RESERVE
FIVE YEAR PLAN AND
ESTIMATED FUND BALANCES BY DISTRICT
In FY 2018 the accounting for Parks and Recreation Payment in Lieu fees became more
detailed when separate district account line items were established. The undesignated
fund balance can be used to fund projects in any district on an as needed basis. Due to
the unpredictable nature of these revenues, estimated fees have been conservatively
estimated in order to realistically prioritize project expenditures.
Recreation Payment in Lieu Fee ,o e• - wes ou Undesignated
FB as of 6/30/2022 $78,585 $428,094 $296,432 $1,414,287
Budgeted Recreation Payment in Lieu Fee $378,000 $640,000 $597,000 $0
Debt Service - - (459,094) -
Planned Projects - - (165,710) -
Additional Project Transfers (82,500) (17,500) - -
Estimated FB as of 6/30/2023 $374,085 $1,050,594 $268,628 $1,414,287
Estimated Recreation Payment in Lieu Fee $360,023 $350,042 $661,621 $0
Debt Service - - (448,771) -
Planned Projects - (871,895) (475,000) (460,000)
Estimated FB as of 6/30/2024 $734,108 $528,741 $6,478 $954,287
Estimated Recreation Payment in Lieu Fee $133,694 $382,643 $513,948 $0
Debt Service - - (438,448) -
Planned Projects (865,000) (275,000) (80,000) (595,000)
Estimated FB as of 6/30/2025 $2,802 $636,384 $1,978 $359,287
Estimated Recreation Payment in Lieu Fee $159,476 $319,126 $352,670 $0
HNTPP Design Reimbursement from Bond* 625,000 - - -
Debt Service - - (327,044) (99,287)
Planned Projects (325,000) (735,000) - -
Estimated FB as of 6/30/2026 $462,278 $220,510 $27,604 $260,000
Estimated Recreation Payment in Lieu Fee $143,528 $287,213 $317,403 $0
Debt Service - - (345,007) (57,090)
Planned Projects (335,000)
Estimated FB as of 6/30/2027 $270,806 $507,723 ($0) $202,910
Estimated Recreation Payment in Lieu Fee $140,657 $281,469 $311,055 $0
Debt Service - - (311,055) (103,159)
Planned Projects - (650,000) - (225,000)
Estimated FB as of 6/30/2028 $411,463 $139,192 ($0) ($125,249)
*Reimburse Rec PIL Fees with Bond $when issued
143

UTILITY CAPITAL RESERVE FUND SUMMARY
FY2020 FY2021 FY2022 FY2023 FY2023 FY2023 FY2024
Actual Actual Actual Adopted Amended Estimated Adopted
REVENUES
Water System Development Fees $3,213,806 $3,044,216 $4,448,775 $3,636,000 $3,636,000 $3,665,871 $4,616,400
Water Impact Fee 53,900 14,840 --- --- --- --- ---
Sewer System Development Fees 4,732,866 4,721,154 6,860,414 3,900,000 3,900,000 4,086,648 4,669,200
Interest Earnings 103,929 1,123 11,735 --- 187,417 187,417 200,000
TOTAL REVENUES $8,104,501 $7,781,333 $11,320,924 $7,536,000 $7,723,417 $7,939,936 $9,485,600
OTHER FINANCING SOURCES(USES)
Transfer from Water Capital Projects $0 $0 $299,730 $0 $0 $0 $0
Transfer from Sewer Capital Projects --- --- 501,340 --- --- --- ---
Transfer from Capital Projects-Unrestricted --- --- 203,443 --- --- --- --
Subtotal Other Financing Sources $0 $0 $1,004,513 $0 $0 $0 $0
Transfer to Debt Service $0 $0 ($3,402,065) ($3,516,366) ($3,516,366) ($3,516,366) ($4,521,654)
Transfers to Capital Projects (384,282) (7,133,322) (5,585,460) (3,006,741) (10,483,644) (10,483,644) (2,069,130)
Transfer to Utility Fund (4,340,718) (3,821,678) --- --- --- --- ---
Subtotal Other Financing Uses ($4,725,000) ($10,955,000) ($8,987,525) ($6,523,107) ($14,000,010) ($14,000,010) ($6,590,784)
TOTAL OTHER FINANCING SOURCES ($4,725,000) ($10,955,000) ($6,978,499) ($6,523,107) ($14,000,010) ($14,000,010) ($6,590,784)
Revenues and Other Sources Over(Under)
Expenditures and Other Uses $3,379,501 ($3,173,667) $3,337,912 $1,012,893 ($6,276,593) ($6,060,074) $2,894,816
BEGINNING FUND BALANCE $8,810,793 $12,190,294 $9,016,627 $12,354,539 $12,354,539 $12,354,539 $6,294,465
ENDING FUND BALANCE $12,190,294 $9,016,627 $12,354,539 $13,367,432 $6,077,946 $6,294,465 $9,189,281
144

FY2024 UTILITY CAPITAL REVENUE
$274,673,688
Capital Water Utility
Utility Grant Reserve Operating
Funds Transfer Fund
2% 1% Transfer
<1%
-
Utility Revenue
Bonds
97%
FY2024 UTILITY CAPITAL EXPENSES
$274,673,688
Sewer Water
48% 52%
FUQUAY—VAR 1 NA FY 2024 BUDGET
145

UTILITY CAPITAL IMPROVEMENTS BUDGET
REVENUE AND FUNDING SOURCES
Utility capital revenue and funding sources support utility related capital projects including the
following:
Water Sewer
• Water lines • Sewer lines
• Water storage tanks • Pump stations
• Water treatment equipment • Water reclamation
• Water facility expansions equipment
• Water reclamation facility
expansions
FUNDING SOURCES
• Utility Revenue Bond Proceeds: $266,201,495
The Town of Fuquay-Varina expects to issue up to $266,201,495 in revenue bonds in
FY 2024 to support the projects mentioned below. As detailed in the debt section of this book,
the amounts and timing of debt issuance will depend on receiving final project bids which has
been a significant challenge. Once bids are received the Town must submit their revenue
bond issuance request to the North Carolina Local Government Commission (LGC) for
approval to proceed. As the Budget Message emphasized, "the provision of a resilient and
reliable source of water and the associated wastewater infrastructure are essential for the
Town's economic growth and ability to provide core services and quality of life amenities for
Town residents." Fortunately, as discussed in the previous debt section, Fuquay-Varina has
the capacity and resources to issue the debt needed to secure the Town's future prosperity.
Fuquay-Varina does not have its own source of water and must to purchase it from other
local governments that have water plants. The FY 2024 budget includes revenue bond
funding of $64.4 million to assist the Town of Sanford with expanding their water plant to
provide additional water capacity to Fuquay-Varina. This amount is the Town's share of a
collaborative project between Sanford, Fuquay-Varina, Holly Springs, and Tarboro. The
interlocal agreement was approved by all the towns in June 2023.
• Water and Sewer Development Fees: $2,069,130
The ability to charge utility development fees, also known as system development fees, is
granted via NC Session Law 2017-138/House Bill 436. In compliance with this legislation, the
Town hired a qualified consultant to conduct an updated system development fee analysis
which was adopted by the Town Board on May 16, 2023 after a public hearing.
Water and Sewer system development fees are collected when new demand is generated
through building permits for new development, requests for new meter boxes, requests for
meter installation, and are due at time of building permit issuance. The fee is based on the
size of the proposed tap. Examples of existing development that increase demand include
FUQUAY-\/AR i NA FY 2024 BUDGET
146

but are not limited to alterations, additions, added systems like irrigation or manufacturing
processes, or changes in use that would require an additional tap.
The budgeted appropriation of $2,069,130 to support water and sewer capital projects
represents only 22% of the $9,285,600 estimated water and sewer development fee revenue
for FY 2024. The FY 2024 revenue estimate, a 20% increase from FY 2023 estimated
receipts, is conservative because these revenues depend on the timing of building permit
applications and market conditions. Building permit levels and development fee earnings will
be monitored closely in FY 2024 and estimates will be adjusted as needed.
• Utility Fund Transfers: $1,403,063
Transfers from the utility fund typically support projects for which funding has not been
dedicated from other sources. During the FY 2024 budget process, Fuquay-Varina engaged
a consultant to develop a utility rate model to better project rates needed to support the
Town's strategic plan. Rates are projected to increase 20% in FY 2024. The FY 2024 capital
improvements budget includes a $1,403,063 utility fund transfer in support of water and
sewer utility capital needs.
UTILITY CAPITAL IMPROVEMENT PROJECT DESCRIPTIONS
Water
Sanford Water Conveyance (Construction)
Revenue Bond funding of $64,321,365 is being added to this existing project to help fund the
construction phase of this project. An additional $5 million of grant funding will also support this
project. Fuquay-Varina does not have its own water treatment facility. This conveyance project
will bring additional water capacity from the Town of Sanford. It is essential to support current
and future development and population growth needs.
Sanford Water Plant Expansion (Design and Construction)
Revenue Bond funding of $62,235,000 is being added to this existing project to complete the
design phase and support construction costs of this project. Fuquay-Varina does not have its
own water treatment facility. This collaborative project with Sanford, Holly Springs and
Pittsboro will bring additional water capacity to the region. It is essential to support current
and future development and population growth needs.
Elevated 1 Million Gallons per Day (MGD) Water Tank
Revenue Bond funding of $7,000,000 will support the construction of an elevated water tank to
increase stored water capacity. This project is necessary to maintain service levels for current
and future residents in this area.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
147

Donny Brook Road — Lake Wheeler to Highway 401
Water Capital Reserve funding of $816,900 will support extending the waterline along Donny
Brook Road from Lake Wheeler Road to Highway 401. This project is necessary to support
development in this area.
Burt Road from Fleming Road to Starchase Lane
Water Capital Reserve funding of$766,080 will support extending the waterline along Burt Road
from Fleming Road to Starchase Lane. This project is necessary to support development in this
area.
Wagstaff Road — Howard Road to Wet Stone Drive
Water Capital Reserve funding of $486,150 will support extending the waterline along
Wagstaff Road from Howard Road to Wet Stone Drive. This project is necessary to support
development in this area.
Waterline Replacements
Utility Operating Transfer funding of $525,000 is being added to this existing project to fund
waterline replacement. Fuquay-Varina is a maturing municipality; this project is important to
maintain its water infrastructure.
Waterline Oversizing
Utility Operating Transfer funding of $52,500 is being added to this existing project to fund
waterline oversizing payments. These payments are made to developers to increase the
capacity of waterlines beyond what is needed for their developments. When the Town
recognizes that development may occur beyond an individual development, the Town may ask
a developer to increase the size of the waterlines to increase the capacity for the whole area.
The Town then reimburses developers the incremental cost of increasing the waterline size.
Waterline Valve Replacements
Utility Operating Transfer funding of $52,500 is being added to this existing project to fund
waterline valve replacement. These valves are essential to containing water loss in the event of
a waterline breakage and for shutting off water for waterline maintenance. Fuquay-Varina is a
maturing municipality; this project is important to maintain its water infrastructure.
Miscellaneous Water Projects
Utility Operating Transfer funding of $236,250 is being added to this existing project to fund
small, miscellaneous projects that arise annually. This project is important to maintain flexibility
in addressing water infrastructure needs.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
148

Sewer
Northern Harnett County Wastewater Treatment Plant Expansion (Construction)
Revenue Bond funding of $52,200,000 is being added to this existing project to fund the
construction phase of this project. Fuquay-Varina partners with Harnett County to provide
wastewater capacity for its residents. This project is essential to support current and future
development and population growth needs.
Terrible Creek Wastewater Treatment Plant Expansion (Construction)
Revenue Bond funding of $68,535,130 is being added to this existing project to fund the
construction phase of this project. The expansion of this Town-owned facility is essential to
support current and future development and population growth needs.
Southern Oaks Sewer Gravity Line
Revenue Bond funding of $11,910,000 will support the decommissioning of Southern Oaks
Pump Station and replacing it with the installation of a gravity sewer line. This plan will ensure
the Town has sufficient sewer infrastructure and capacity that will support current and future
development and population growth needs.
Sewerline Oversizinq
Utility Operating Transfer funding of $52,500 is being added to this existing project to fund
sewerline oversizing payments. These payments are made to developers to increase the
capacity of sewerlines beyond what is needed for their developments. When the Town
recognizes that development may occur beyond an individual development, the Town may ask
a developer to increase the size of the sewerlines to increase the capacity for the whole area.
The Town then reimburses developers the incremental cost of increasing the sewerline size.
Sewerline Inflow and Infiltration (I&I) Rehabilitation
Utility Operating Transfer funding of $236,250 is being added to this existing project to fund the
prevention of outside water inflow and infiltration into sewerlines. Fuquay-Varina is a maturing
municipality; this project is important to maintain its sewer infrastructure.
Miscellaneous Sewer Projects
Utility Operating Transfer funding of $248,000 is being added to this existing project to fund
small, miscellaneous projects that arise annually. This project is important to maintain flexibility
in addressing sewer infrastructure needs.
FUQUAY-\/AR 1 NA FY 2024 BUDGET
149

UTILITY FIVE YEAR CAPITAL IMPROVEMENTS PROGRAM
Fuquay-Varina's Strategic Five Year Plan, adopted February 16, 2021, was first implemented in the
FY 2023 budget. It is reviewed and updated during the annual budget process when the fifth year is
added. As part of this process departments identify projects necessary to achieve the goals of the
Strategic Plan. As a rapidly growing community projects are prioritized to meet the most immediate
needs to address growth and maintain and preserve existing facilities and infrastructure. Water and
Sewer capacity expansion is vital to the continued growth of Fuquay-Varina and its future prosperity.
These projects are so important that the Town anticipates issuing over $280 million in debt over the
timeframe of this Five Year Plan.
A Revenue Grants Utility Fund Water Capital Sewer Capital o a
Bond Transfer Reserve Reserve
WATER CAPITAL PROJECTS
Sanford Conveyance-Construction $63,321,365 $5,000,000 $0 $0 $0 $68,321,365
Sanford Conveyance-Easements 1,000,000 - - - - 1,000,000
Sanford Plant Expansion-Design and Construction 62,235,000 - - - - 62,235,000
Elevated 1MGD Water Tank 7,000,000 - - - - 7,000,000
Donny Brook Road-Lake Wheeler to HWY401 - - - 816,900 - 816,900
Burt Road from Fleming Road to Starchase Lane - - - 766,080 - 766,080
Wagstaff Road-Howard Road to Wetstone Drive - - - 486,150 - 486,150
Water line Replacements(Fund 60) - - 525,000 - - 525,000
Water Line Oversizing(Fund 60) - - 52,500 - - 52,500
Valve Replacement Program(Fund 60) - _ - 52,500 - - 52,500
Miscellaneous Water Projects(Fund 60) - 236,250 - - 236,250
Total Water Capital Projects $133,556,365 $5,000,000 $866,250 $2,069,130 $0 $141,491,745
SEWER CAPITAL PROJECTS _
Northern Harnett County WWTP Expansion- $52,200,000 $0 $0 $0 $0 $52,200,000
Construction
Southern Oaks Sewer Gravity Line 11,910,000 - - - - 11,910,000
Terrible Creek WWTP Expansion-Construction 68,535,130 - - - - 68,535,130
Sewer Line Oversizing(Fund 60) - - 52,500 - - 52,500
Sewerline Inflow and Infiltration Al)(Fund 60) - - 236,250 - - 236,250
Miscellaneous Sewer Projects(Fund 60) - - 248,063 - - 248,063
Total Sewer Capital Projects $132,645,130 $0 $536,813 $0 $0 $133,181,943
TOTAL FY2024 UTILITY CAPITAL PROJECTS _$266,201,495 $5,000,000 , $1,403,063 $2,069,130 $0 $274,673,688
Revenue Utility Fund Water Capital Sewer Capital
2025 Total
Bond Grants Transfer Reserve Reserve
WATER CAPITAL PROJECTS
Purchase Harnett County Water District $5,000,000 $0 $0 $0 $0 $5,000,000
Judd Parkway Loop(North East) - - - 1,443,827 - 1,443,827
Piney Grove Wilbon Road-Fleming Loop to Phelps - - - 1,473,608 1,473,608
West Road
Water line Replacements(Fund 60) - - 551,500 - - 551,500
Water Line Oversizing(Fund 60) - - 55,150 - - 55,150
Valve Replacement Program(Fund 60) - - 55,150 - - 55,150
Miscellaneous Water Projects(Fund 60) - 260,584 260,584
Total Water Capital Projects $5,000,000 $0 $922,384 $2,917,435 $0 $8,839,819
SEWER CAPITAL PROJECTS
Little Black Creek Interceptor _ $0 $0 $1,690,880 $0 $0 $1,690,880
Sewerline Inspection and Cleaning - - 1,764,800 - - 1,764,800
Sewer Line Oversizing(Fund 60) - - 55,150 - - 55,150
Sewerline Inflow and Infiltration Al)(Fund 60) - _ 273,613 - - _ 273,613
Miscellaneous Sewer Projects(Fund 60) - 260,584 - - 260,584
Total Sewer Capital Projects $0 $0 $4,045,027 $0 $0 $4,045,027
TOTAL FY 2025 UTILITY CAPITAL PROJECTS $5,000,000 $0 $4,967,411 $2,917,435 $0 $12,884,846
150

UTILITY FIVE YEAR CAPITAL IMPROVEMENTS PROGRAM
Revenue Utility Fund Water Capital Sewer Capital
2026 Grants Total
Bond Transfer Reserve Reserve
WATER CAPITAL PROJECTS
Old Powell Road from Wilbon to Southern Wake $0 $0 $0 $1,596,882 $0 $1,596,882
Academy
Holland Rd.-Judd Parkwayto PSC to 55 - - - 1,011,860 - 1,011,860
Johnson Pond Loop at Main Street and Hwy401 - - 755,016 - 755,016
Dwight Rowland-Kennebec to NC Hwy42 - - - 609,108 - 609,108
1.5 mgd tank-Design - - 579,000 - - 579,000
Water line Replacements(Fund 60) - - 579,000 - - 579,000
Miscellaneous Water Projects(Fund 60) - 287,256 287,256
Water Line Oversizing(Fund 60) - - 57,900 - - 57,900
Valve Replacement Program(Fund 60) - - 57,900 - - 57,900
Total Water Capital Projects $0 $0 $1,561,056 $3,972,866 $0 $5,533,922
SEWER CAPITAL PROJECTS
PSC Equipment Shelter $0 $0 $2,316,000 $0 $0 $2,316,000
Walter Myatt Pump Station - - - - 1,637,070 1,637,070
Sewerline Inflow and Infiltration(I&I)(Fund 60) - - 301,620 - - 301,620
Miscellaneous Sewer Projects(Fund 60) - - 287,257 - - 287,257
Sewer Line Oversizing(Fund 60) - - 57,900 - - 57,900
Total Sewer Capital Projects $0 $0 $2,962,777 $0 $1,637,070 $4,599,847
TOTAL FY2026 UTILITY CAPITAL PROJECTS I $0 $0 $4,523,833 I $3,972,866 I $1,637,070 $10,133,769
2027 Revenue Grants Utility Fund Water Capital Sewer Capital
Bond Transfer Reserve Reserve
WATER CAPITAL PROJECTS
1.5 mgd tank Construction $9,120,000 $0 $0 $0 $0 $9,120,000
Johnson Pond Rd Loop-Brighton Forest to -
- - 2,706,816 2,706,816
Spicewood Dr.
Clayton Road at Hwy 55 to Maude Stewart - - - 1,770,496 - 1,770,496
Johnson Pond Loop-Ten Ten Rd to Optimist Farm - - - 1,062,784 - 1,062,784
Ten Ten Road-Lake Wheeler to Johnson Pond - - 1,022,656 - - 1,022,656_
Buck Roland from Walter Myatt to Kennebec Road - - 602,650 - - 602,650_
Kennebec from Maude Stewart to Walter Myatt - - 473,510 - - 473,510
Water line Replacements(Fund 60) - - 608,000 - - 608,000_
Miscellaneous Water Projects(Fund 60) - - 316,725 - - 316,725
Water Line Oversizing(Fund 60) - - 60,800 - - 60,800
Valve Replacement Program(Fund 60) - - 60,800 - - 60,800
Total Water Capital Projects $9,120,000 $0 $3,145,141 $5,540,096 $0 $17,805,237
SEWER CAPITAL PROJECTS
Middle Creek Interceptor from 401 to Lake Wheeler $0 $0 $0 $0 $2,217,840 $2,217,840
Road
Middle Creek interceptor from Lake Wheeler Road to -
-
- - 1,260,136 1,260,136
Brighton Forest WWTP _
Sewerline Inflow and Infiltration(1&I)(Fund 60) - - 332,563 - - 332,563
Miscellaneous Sewer Projects(Fund 60) - - 316,727 - - 316,727
Sewer Line Oversizing(Fund 60) - - 60,800 - - 60,800
Total Sewer Capitol Projects $0 $0 $710,090 $0 $3,477,976 $4,188,066
TOTAL FY2027 UTILITY CAPITAL PROJECTS I $9,120,000 I $0 $3,855,231 $5,540,096 $3,477,976 I $21,993,303
2028 evenu city un. a er api al Sewer Capita
Bond Transfer Reserve Reserve
WATER CAPITAL PROJECTS
Panther Lake NC42 to John Adams $0 $0 $2,385,610 $0 $0 $2,385,610
Whitted Road Loop - - 1,635,832 - - 1,635,832
Old Stage Road Mt Pleasant to John Adams - - 1,196,888 - - 1,196,888
Eddie Howard Walter Myatt to Panther Lake - - 974,609 - - 974,609_
Water line Replacements(Fund 60) - - 638,000 - - 638,000_
Miscellaneous Water Projects(Fund 60) - 342,324 - - 342,324
Water Line Oversizing(Fund 60) - - 63,800 - - 63,800_
Valve Replacement Program(Fund 60) - - 63,800 - - 63,800
Total Water Capital Projects $0 $0 $7,300,863 $0 $0 $7,300,863
SEWER CAPITAL PROJECTS
Terrible Creek Pump Station and Force Main $0 $0 $0 $0 $1,847,610 $1,847,610_
Terrible Creek Interceptor - - - - 3,300,496 3,300,496
Fanny Brown Road Pump Station and Force Main - - 921,592 - - 921,592_
Sewerline Inflow and Infiltration(I&I)(Fund 60) - - 359,441 - - 359,441
Miscellaneous Sewer Projects(Fund 60) - - 342,325 - - 342,325_
Sewer Line Oversizing(Fund 60) - - 63,800 - - 63,800
Total Sewer Capital Projects $0 $0 $1,687,158 $0 $5,148,106 $6,835,264
TOTAL FY2028 UTILITY CAPITAL PROJECTS[ $0 1 $0 I $8,988,021 I $0 I $5,148,106 $14,136,127
Revenue 5 Year Total by Revenue Source I $280,321,495 I$5,000,000 I $23,737,559 I $14,499,527 I $10,263,152 I $333,821,733
151

WATER AND SEWER CAPITAL RESERVE
FIVE YEAR FISCAL YEAR PLAN AND
ESTIMATED FUND BALANCES
Water and Sewer System Development Fees were very conservatively estimated in the
Five Year Plan. These revenues are expected to exceed their budget estimates. The
value of the Five Year Plan process is in identifying future trends and impacts. These
revenues will be closely monitored and anticipated transfers from the Capital Reserve
adjusted to preserve future fund balance levels.
WATER SEWER
Estimated FB as of 6/30/2023 $1,673,168 $3,689,728
Water System Development Fees $4,616,400
Sewer System Development Fees $4,669,200
Interest 48,000 152,000
Bond Proceeds Sanford Conveyance 3,773,479
Bond Proceeds Southern Oaks 931,569
Transfer to Debt Service (1,515,006) (3,006,648)
Transfer to Capital Projects (2,069,130) -
Estimated FB as of 6/30/2024 $6,526,911 $6,435,849
Water System Development Fees $4,616,400
Sewer System Development Fees $4,669,200
Interest 21,258 67,317
Bond Proceeds Terrible Creek 3,584,500
Bond Proceeds Terrible Creek/Harnett Design 929,741
Transfer to Debt Service (1,395,697) (1,787,291)
Transfer to Capital Projects (2,917,435)
Estimated FB as of 6/30/2025 $6,851,437 $13,899,316
Water System Development Fees $4,231,700
Sewer System Development Fees $4,280,100
Interest 30,736 97,329
Transfer to Debt Service (2,036,384) (2,996,613)
Transfer to Capital Projects (3,972,866) (1,637,070)
Estimated FB as of 6/30/2026 $5,104,622 $13,643,063
Water System Development Fees $4,231,700
Sewer System Development Fees $4,280,100
Interest 27,147 85,964
Transfer to Debt Service (3,555,870) (3,626,710)
Transfer to Capital Projects (5,540,096) (3,477,976)
Estimated FB as of 6/30/2027 $267,503 $10,904,441
Water System Development Fees $4,231,700
Sewer System Development Fees $4,280,100
Interest 11,684 37,000
Transfer to Debt Service (3,270,895) (3,486,117)
Transfer to Capital Projects - (5,148,106)
Estimated FB as of 6/30/2028 $1,239,992 $6,587,318
152

CUMULATIVE IMPACTS OF CAPITAL IMPROVEMENT PROJECTS
ON FY2024-2028 OPERATING BUDGETS
The financial impact that a completed capital project will have on the Town's operating budget
is important to consider when developing a capital improvements budget/plan. Most of Fuquay-
Varina's capital projects have little to no staffing or operating/maintenance costs associated
with them. Below are the estimated operating costs that will need to be supported by the Town
when these FY 2024 - 2028 capital projects are complete. Inflation for personnel costs is
calculated at 7% per year, operations and maintenance costs at 30/0.
GENERAL CAPTIAL FY2024 FY2025 FY2026 FY2027 FY2028
Fire Station#4
Personnel(9)Fire Fighters $674,817 $722,054 $772,598 $826,680 $884,547
Operations&Maintenance 97,675 100,605 103,623 106,732 109,934
Fire Station#4 Subtotal $772,492 $822,659 $876,221 $933,412 $994,481
Community Center North
Personnel
Community Center Administrator $85,563 $91,552 $97,961 $104,818 $112,156
Senior Program Specialist 75,259 80,527 86,164 92,196 98,649
Recreation Program Support Specialist 75,259 80,527 86,164 92,196 98,649
Senior Program Support Specialist - 69,180 74,023 79,204 84,748
Recreation Center Assistant(Custodian) - 54,132 57,921 61,976 66,314
Community Center North Subtotal $236,081 $375,919 $402,233 $430,389 $460,517
Total General Fund Impacts $1,008,573 $1,198,578 $1,278,454 $1,363,801 $1,454,998
UTILITY CAPTIAL
Water Distribution System Expansion
Personnel
Project Manager $130,033 $139,135 $148,875 $159,296 $170,447
Distribution Crew Leader 127,428 136,348 145,893 156,105 167,033
Water Section Utility Worker 65,000 69,550 74,419 79,628 85,202
Water Section Utility Worker - 65,000 69,550 74,419 79,628
(2)Water Section Utility Workers - - 130,000 139,100 148,837
(2)Water Section Utility Workers - - - - 130,000
Sewer Distribution System Expansion
Personnel
Collections Crew Leader 127,428 136,348 145,893 156,105 167,033
Collections Maintenance Technicians 211,013 225,783 241,588 258,499 276,594
Collections Pump Mechanic 65,000 69,550 74,419 79,628 85,202
Collections Pump Mechanic - 65,000 69,550 74,419 79,628
(2)Positions - - - 124,000 124,000
(2)Positions - - - - 130,000
Water/Sewer Shared Positions
Water/Sewer System Integrity Crew Leader 87,841 93,989 100,569 107,608 115,141
(2)Water/Sewer System Integrity Technicians 149,406 159,865 171,055 183,029 195,841
24-hour Operation of Terrible Creek WWTP
Personnel
(2)Watewater Apprentice 138,075 147,740 158,082 169,148 180,988
WWTP Operator 65,000 69,550 74,419 79,628 85,202
WWTP Operator - 65,000 69,550 74,419 79,628
(5)24/7 WWTP Staffing - - - 350,000 350,000
Laboratory Supervisor - - - - 75,000
Total Utility Operating Fund Impacts $1,166,224 $1,442,860 $1,673,860 $2,265,030 $2,725,402
TOTAL CAPITAL OPERATING IMPACTS $2,174,797 $2,641,438 $2,952,314 $3,628,831 $4,180,400
153

BUDGET AND FINANCIAL POLICIES UNDER THE NORTH CAROLINA
LOCAL GOVERNMENT BUDGET AND FISCAL CONTROL ACT
The Local Government Budget and Fiscal Control Act (LGBFCA) governs all agencies of local
government in the state of North Carolina. The LGBFCA spells out how all monies received or
expended by local governments must be budgeted, disbursed, and accounted for. It requires
that certain types of funds be maintained depending on the functions and activities performed
by local governments and how those functions and activities are financed. The Town budgets
and accounts for its revenues and expenditures in accordance with the LGBFCA and
maintains its various funds in compliance with this law. In addition, the budget complies with all
relevant Town of Fuquay-Varina financial policies.
GENERAL PROVISIONS
The Budget Officer in Fuquay-Varina is the Town Manager, who is designated as such by
statute. The Town Manager is responsible for ensuring that a balanced budget ordinance is
adopted by the governing board prior to the beginning of each new fiscal year which begins on
July 1st. This budget ordinance summarizes budget figures, grouping them by fund and
department.
The LGBFCA also permits transactions authorized in previous fiscal years involving capital or
grant projects to proceed without additional budget ordinance authorization. All capital projects
are authorized as project ordinances, which means that appropriations carry over from year to
year until the project has been completed. The Town does show its Capital Project Funds as a
financial plan in its Annual Operating Budget Ordinance for the sake of convenience. However,
as explained in the Capital Improvements Budget and Plan section, page 133, capital projects
are adopted through individual project ordinances. Therefore, these figures are informational
only.
The Annual Operating Budget Ordinance, and each fund contained within it, must balance
exactly. The Town's definition of a balanced budget is when total revenues equal total
expenditures. Should revenues exceed expenditures the Town balances its annual budget by
showing surpluses as an appropriation to fund balance ("designated for fund balance") and
deficits as appropriations from fund balance should expenditures exceed revenues. The
LGBFCA permits appropriations only of that portion of fund balance which represents cash and
cash equivalents less current claims against that cash. The statutory formula is "cash and
investments minus the sum of liabilities, encumbrances, and deferred revenues arising from
cash receipts."
The LGBFCA mandates that local governments make certain appropriations, while other
statutes and regulations require that certain programs be supported at a minimum level.
1. Debt Service: The full amount estimated to be required for debt service, both principal
and interest, during the budget year must be appropriated in the budget.
2. Deficits: The full amount of any deficit in each fund must be appropriated.
3. Continuing Contracts: Sufficient funding to pay obligations during the fiscal year must be
appropriated.
FUQU4'(-\'4R I NA FY 2024 BUDGET
154

4. Other Statutes and Regulations: Other statutes require local governments, especially
counties, to fund social services, health, and education programs. The Town of Fuquay-
Varina does not have responsibilities in any of these areas. It does have responsibilities
under statutes regulating levels of sewage treatment services.
Interfund Transfers
The LGBFCA recognizes the appropriateness of interfund transfers, and some special types of
funds show a transfer from the general fund as their primary source of revenue. The Town of
Fuquay-Varina has several such funds, including capital project, capital reserve and debt
service funds. The Act prohibits some transfers where funds are earmarked for specific
programs or services. For example, state street aid funds (Powell Bill), shown in the General
Fund operating budget as revenues, must be used for specific transportation-related
expenses.
The proceeds of bond issues in a capital project fund account must be used for the purpose for
which the bonds were issued or be appropriated into a capital reserve or debt service fund.
The LGBFCA limits appropriations from enterprise funds into other funds unless the total of all
other appropriations in the fund equal or exceed the amount that will be required to meet
operating expenses, capital outlay, and debt service obligations during the fiscal year. The Act
does not, however, require that depreciation expenses must be met by revenues before an
interfund transfer may be made. State statutes direct that accounts be maintained during the
year on a modified accrual basis, which does not require depreciation.
Miscellaneous Provisions
Contingency Appropriations: A contingency appropriation shall not exceed five percent (5%) of
the total of all other appropriations in that same fund.
Property Tax Estimates: The percentage collection of property taxes shown in the budget must
not be greater than the percentage of the levy realized in cash as of June 30 of the preceding
fiscal year. This ensures a conservative estimate of property tax revenues.
Revenue Estimates: The LGBFCA states that estimated revenues shall include only those
reasonably expected to be realized during the fiscal year.
Budget Preparation
Town of Fuquay-Varina's budget preparation and implementation policies and procedures
conform to all Town Financial policies.
The LGBFCA provides a general framework for budget preparation, setting a basic calendar as
follows:
By April 30: Departmental Requests to Budget Officer
By June 1 : Budget Submitted to Governing Board
By July 1: Budget Ordinance Adopted
F JAY VAR I N4 FY 2024 BUDGET
155

The General Statutes provide that by April 30, the Budget Officer is to have in hand:
1. Budget requests from departments for the upcoming year;
2. Revenue estimates for each department for the upcoming year;
3. Actual and estimated expenditures for each category of expenditure in the budget
ordinance for the immediately prior and current fiscal years;
4. Actual and estimated amounts realized for each source of revenue for the immediately
prior and current fiscal years;
5. Any other information the Budget Officer requests from the departments.
The Budget Officer prescribes the form and format of the budget, along with the governing
board. The board should expect the Budget Officer to review departmental requests and
submit a balanced budget, while showing both amounts requested by departments and
amounts recommended by the Budget Officer. The law does not address the procedures the
Budget Officer is to use in developing the budget, and each unit is free to utilize a process
which best suits its needs. In Fuquay-Varina, the Budget Officer and staff meet with
departments and discuss their budget requests and make recommendations afterwards.
The law urges that the budget be presented to the governing board at a public meeting, and
that the Budget Officer provide a summary explanation, often in the form of a budget message,
at this time. State statute requires that a budget message be included in the proposed budget.
It should 1) contain a concise explanation of the governmental goals fixed by the budget for the
fiscal year, 2) explain important features of the activities anticipated in the budget, 3) set forth
the reasons for stated changes from the previous year in program goals, programs, and
appropriation levels, and 4) explain any major changes in fiscal policy.
At the time the budget is submitted to the board, a copy must be filed with the clerk to the
board for public inspection. The law also requires the clerk to make a copy of the budget
available to the media. A public hearing must be held on the proposed budget between the
time of its submission and adoption, notice of which is to be published in the newspaper. At
least ten days must pass between the submission and adoption of the budget.
Budget Review and Adoption
By law, the Town Board has complete discretion over the content of the budget ordinance and
the fiscal policies which it represents. In Fuquay-Varina, the Town Board conducts a budget
worksession or worksessions at which time it reviews the proposed budget and makes any
changes or recommendations. The state's open meeting law applies to the budget process,
and all meetings at which the board deliberates or takes action on the budget are open to the
public.
Once reviewed, the law provides that the budget ordinance may be adopted at any regular or
special meeting of the board by a majority of those present and voting if a quorum is present.
By law, the budget ordinance must contain 1) appropriations, 2) estimated revenues, and 3)
the property tax levy. Typically, however, the ordinance goes into greater detail by setting out
F'JWAY-VAR I NA FY 2024 BUDGET
156

expenditures by fund and department and includes water and sewer rates and other items
subject to change annually. Once the budget ordinance is adopted, it must be filed with the
Budget Officer, Finance Officer, and Clerk within five days. The Town of Fuquay-Varina's
operating budget ordinance displays expenditures at the department level.
FINANCIAL POLICIES
The budget-related portions of Fuquay-Varina's financial policies are designed to complement
the North Carolina Local Government Budget and Fiscal Control Act (LGBFCA), as well as
other policies recommended by the Local Government Commission. The two sections of
Fuquay-Varina's Financial Policy regarding budgeting (the Operating Budget and Capital
Improvements sections) are included below. Other sections of the policy, not presented in this
budget document, include: Accounting / Financial Reporting, Cash Management, Investments,
Purchasing and Contracting, and Utility Billing and Collections.
Objectives
1. To align the Fuquay-Varina's long-term financial planning with short-term daily
operations
2. To maintain the Town's stable financial position
3. To ensure that Board's adopted policies are implemented in an efficient, effective and
cost conscious manner, while continuing to ensure compliance with contractual and
statutory requirements
4. To protect Fuquay-Varina from emergency fiscal crisis by ensuring the continuance of
service even in the event of an unforeseen occurrence
5. To secure the highest possible credit and bond ratings by meeting or exceeding the
requirements of bond rating agencies through sound, conservative financial decision
making
Operating Budget
It is Fuquay-Varina's policy that the operating budget be prepared in accordance with
Generally Accepted Accounting Principles and according to the standards necessary to
achieve the GFOA Distinguished Budget Presentation Award. To receive the award, Fuquay-
Varina must publish a comprehensive and professionally prepared budget report that serves
as a policy document, an operations guide, a financial plan, and a communications tool.
A. Revenue Policy
Fuquay-Varina seeks to implement a diversified taxing policy that will ensure reasonable
stability for operation at continuous service levels, but that will provide elasticity necessary
for responding quickly to increased service demands. Revenue management includes
within its focus, an ongoing process for reviewing and analyzing each revenue source to
ensure that proceeds from each source are at an optimum level. Every attempt will be
made to project revenues within 5% of final actual results, and the projections will be based
on historical trends, growth patterns, and the economy. To meet these objectives the Town
observes the following guidelines:
FU0 JAY-VAR 1 N4 FY 2024 BUDGET
157

d Valorem (Property) Tay
As provided by the North Carolina Local Government Budget and Fiscal Control Act,
estimated revenue from the ad valorem tax levy will be budgeted as follows:
• Assessed valuation will be estimated based on Wake County Tax Administrator
provided annually by April. As a growing community, historical trends, growth patterns,
and anticipated construction will also be taken into consideration.
• The estimated percentage of collection will not exceed the percentage of the levy
actually realized in cash as of June 30 during the preceding fiscal year, in accordance
with state law.
• The tax rate will be set each year based on the cost of providing general governmental
services and paying debt service. Consideration will be given to future net revenue
requirements for operational expenditure impacts associated with capital improvement
projects and programmed debt service.
User , cc.
Fuquay-Varina sets fees that will maximize user charges in lieu of ad valorem taxes for
services that can be individually identified and where the costs are directly related to the
level of service. Emphasis of user charges over ad valorem taxes results in the following
benefits:
• User charges are paid by all users, including those exempt from property taxes.
• User charges avoid subsidization in instances where the service is not being provided to
the general public.
• User charges are a means of helping offset the costs of providing certain services.
• User charges for certain services can be justified on the basis of equity and efficiency,
by producing information on the demand level for services and by helping to make the
connection between the amount paid and the service received.
GI UI IL F Ul IU11 ly
Grant funding may be used for a variety of purposes including 1) current Fuquay-Varina
operations, 2) a departmental long-range plan, 3) a capital project identified in the capital
improvement budget / plan, 4) regulatory requirements, or other opportunities to address
the mission and goals of Fuquay-Varina. Application will be made after a grant is evaluated
for consistency with Board goals and compatibility with Town programs and objectives. Any
awarded funds will be accepted only after Board approval.
Utility Rater
Utility rates will be reviewed annually considering net revenue requirements, realistic sales
forecasts, contractual obligations including bond covenants, and utility conservation goals.
Revenue requirements may include funds programmed for rate stabilization, utility capital
projects, and debt service obligation to the general fund.
UU ler Kevenue
All other revenue will be programmed through the annual budget process to meet Town
goals and objectives.
F JAY VAR I N4 FY 2024 BUDGET
158

B. Expenditure Policy
Budget Management
Expenditure budgets are reviewed by staff, the Town Manager, and Town Board prior to
adoption and are continually monitored throughout the budget year. Budgeted funds will
only be spent for departmental purposes for which they were intended. The annual
operating budget ordinance defines staff authorization for operating budget adjustments.
No appropriations of the proceeds of a debt instrument will be made except for the purpose
for which such debt instrument was issued. Donations will be spent only toward the intent
for which they were given.
Fiscal Management
Current operating expenditures will not exceed current operating revenues.
Continuing Contracts
For continuing contracts, funds will be appropriated in the annual budget ordinance to meet
current year obligations arising under the contract, in accordance with NCGS 160A-17.
C. Reserve Policy
Reserve for State Statute
In accordance with state statute, appropriated fund balance in any fund will not exceed the
sum of cash and investments minus the sum of liabilities, encumbrances, and deferred
revenues arising from cash receipts.
Unassigned Fund Balance
Fuquay-Varina will maintain fund balance in the operating funds that can be used for any
purpose. These funds will be used to avoid cash-flow interruptions, generate interest
income, eliminate the need for short-term borrowing, assist in maintaining an investment-
grade bond rating, provide funding flexibility for unanticipated needs and opportunities and
sustain operations during unanticipated emergencies and disasters. The level of reserve
will be monitored based on anticipated future funding needs, historical trends, growth
patterns, the economy and contractual obligations, including bond covenants.
D. Interfund Transfers
Fuquay-Varina may transfer cash from enterprise funds to general government funds only
after operating expenses, capital outlay and debt service obligations of the enterprise have
been met. Interfund transfers are allowed for the allocation of direct or indirect costs of
services rendered by one fund to another. Fuquay-Varina will strive to ensure that the
enterprise fund is financially self-sufficient.
F JAY VAR 1 N4 FY 2024 BUDGET
159

General Fund - Fund Balance Policy
Objectives
• To establish minimum fund balance levels for the General Fund that define what
resources are available to provide sufficient financial flexibility to meet future obligations
• To take advantage of opportunities, and avoid interest expense through use of excess
reserves in lieu of debt
• To enhance the financial position of Fuquay-Varina in order to maintain the highest
credit and bond ratings
• To plan for contingencies in unforeseen revenue volatility and expenditures such as
weather related disasters
• To generate investment income that diversifies revenue streams and decreases
reliance on taxes
• To ensure adequate cash flow
Definiuu,�5
In accordance with governmental accounting standards Fuquay-Varina's total General
Fund fund balance is comprised of five components:
• Non-spendable Fund Balance represents resources that are physically or legally in a
non-spendable form such as inventory,
• Restricted Fund Balance represents resources limited by state law or the provider such
as grants or resources reported as "Stabilization by State Statute",
• Committed Fund Balance represents resources previously committed by Council for a
particular purpose such as a project partially funded by grants,
• Assigned Fund Balance represents resources assigned less formally for a particular
purpose such as insurance reserves or subsequent year spending, and
• Unassigned Fund Balance represents all remaining resources.
Accessible Fund Balance is defined as the total of Assigned Fund Balance and Unassigned
Fund Balance for the purposes of this policy. To be conservative, Committed Fund Balance is
not included in Accessible Fund Balance.
Accessible Fund Balance is not the same as available Fund Balance as defined in North
Carolina General Statute159-8(a). General Fund Expenditures are calculated for this ratio as
Total Expenditures, which includes debt service, excluding Other Financing Sources and Uses.
A. rui iu tuLunce Levels
• Fuquay-Varina will maintain a minimum Accessible Fund Balance of at least 25%,
(three months) of budgeted General Fund Expenditures.
• Total Fund Balance shall be at least 40% (which is approximately five months) of
budgeted General Fund Expenditures.
B. Use of Excess Fund Ba(ancF
• Accessible Fund Balance above the Town's minimum should be considered as a
funding source for capital needs funded with pay-as-you-go capital considered through
F JAY VAR I N4 FY 2024 BUDGET
160

the annual budget process. Appropriations outside the annual budget will generally be
limited to:
• Expenditures to support or facilitate projects that generate new revenues or cost
savings in excess of the investments within established time frames.
• Interim partial year funding for new programs that are needed before the next fiscal
year.
• Costs related to unanticipated workload in the current fiscal year that cannot be
addressed with budgeted resources.
• Prudent supplemental funding for existing capital projects that require additional
resources before the next fiscal year in order to fund unanticipated costs, avoid
excessive delays, or improve service levels.
C. Use of Fund Bolonce Below Policu Limits in Dire Circumstances
The Town Board may, from time-to-time, appropriate fund balances that will reduce
available fund balances below the 25% policy for the purposes of a declared fiscal
emergency or other such global purpose as to protect the long term fiscal security of the
Town of Fuquay-Varina. In such circumstances, the Board will adopt a plan to restore the
available fund balances to the policy level within 36 months from the date of the
appropriation. If restoration cannot be accomplished within such time period without severe
hardship to the Town, then the Board will establish a different but appropriate time period.
Capital Improvement Policy
A. Capital Improvement Plan
The Town will update and readopt annually a five-year capital improvement plan ("CIP"),
including the upcoming annual capital improvement budget ("CIB") and a four-year
projection of capital needs and expenditures which details the estimated cost, description
and anticipated funding sources for capital projects.
The first year of the five year CIP will be the basis of estimated fiscal year capital
appropriations noted in the Annual Operating Budget Ordinance which provides the
framework for the individual project ordinances anticipated to be adopted during the budget
fiscal year. If new project needs arise during the year, a project ordinance identifying both
the funding sources and project appropriations will be utilized to provide formal budgetary
authority for the subject projects. The Capital Improvement Budget and Plan will generally
address those capital assets with a value of more than $25,000 and a useful life of over
three (3) years.
The Town will emphasize preventive maintenance as a cost-effective approach to
infrastructure maintenance. Exhausted capital goods will be replaced as necessary.
Restricted revenue sources will be used whenever possible before unrestricted sources.
FUQU4Y-\/AR I NA FY 2024 BUDGET
161

B. Capital Formation Financing Sources
Fuquay-Varina acknowledges pay-as-you-go financing as a significant capital financing
source but will ultimately determine the most appropriate financing structure for each
capital project on an individual basis after examining all relevant factors of the project. Fund
balances in excess of aforementioned LGC guidelines may be used as a capital source for
pay-as-you-go financing.
Development Fees
Development fees will be estimated based on historical and current trends as well as
anticipated development activity. Development fee revenues will be used as one of the
capital sources for pay-as-you-go financing. Budgeted and accounted for separately by
source, used only on eligible projects, and unspent revenues returned to revenue specific
fund balance account.
Transfers
Capital funding provided by transfers from another fund will be programmed to specific
capital projects or programs.
C. Debt Management
Use of Debt
Debt will be used to finance large projects that provide value to future citizens. Generally,
only construction and equipment acquisition costs will be debt funded. Generally, land
acquisition and design costs will not be funded by debt.
Capital projects financed through the issuance of bonds will be financed for a period not to
exceed the expected useful life of the project.
Statutory Limits
The general obligation debt of Fuquay-Varina will not exceed the North Carolina statutory
limit.
Debt Capacity
Fuquay-Varina will strive to maintain debt funding flexibility to maximize capacity for both
identified and unanticipated capital needs and opportunities.
Interest expense will be capitalized only for facilities of enterprise activities and will be
strictly limited to those expenses incurred during construction of the facilities.
Debt IssuancE
Fuquay-Varina will seek the best financing type, debt structure and timeframe for each
financing need based on the flexibility to meet the project needs, timing, tax or rate payer
equity and lowest interest cost.
Bond Ratings
Fuquay-Varina will continue to strive for the highest possible bond rating to minimize the
Town's interest expenses.
FUQUAY-\'AR I N4 FY 2024 BUDGET
162

FUND STRUCTURE/ BASIS OF ACCOUNTING
A. Fund Accounting
Fuquay-Varina's accounts are organized and operated on a fund basis. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts recording
assets, liabilities, fund balances, revenues, and expenditures.
All Town funds are budgeted and maintained using the modified accrual basis
of accounting, the same method as the Town's audited financial statements. The various
funds are presented by type in the annual operating budget. The Town uses the following
fund types:
governmental I-u►iu.
Generc' inc' - The General Fund is the general operating fund of the Town. It is used to
account for all financial resources except those required to be accounted for in another
fund. The General Fund's primary revenue sources are ad valorem taxes, sales taxes,
state-shared revenues, and fees for service. The major expenditure categories are general
government, transportation, environmental protection, cultural and recreation, and
economic and physical development.
Capital Project Funds
General Capital Project Fun( - These funds, budgeted in the general capital improvements
budget, are used to account for financial resources to be used for the acquisition or
construction of major capital assets associated with General Fund departments.
Utilitu Capitol Project Fund' - These funds, budgeted in the utility capital improvements
budget, are used to account for financial resources to be used for the acquisition or
construction of major capital infrastructure and assets associated with the water and sewer
departments.
Debt Service Funds
General Debt Service Fund - These funds, budgeted in the general capital improvements
budget, are used to account for debt service including the payment of principal, interest,
and related costs on general long-term debt and general lease-purchase obligations.
Utility Deo(Service Funa - These funds, budgeted in the utility capital improvements budget,
are used to account for debt service including the payment of principal, interest, and related
costs on general long-term debt and general lease-purchase obligations.
Proprietary Funds
I mutt i RI mri (Fnrprnric- — Enterprise funds are used to account for operations (a) that are
financed and operated in a manner similar to private business enterprises - where the
intent of the governing body is that the costs (expenses, including depreciation) of providing
goods and services to the general public on a continuing basis be financed or recovered
primarily through user charges; or (b) where the governing body has decided that periodic
determination of revenue earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or other purposes.
FJQ JAY-VAR I N4 FY 2024 BUDGET
163

Fuquay-Varina has one enterprise fund, the utility system enterprise fund. Five sub-funds
are assigned to the utility system enterprise fund: the utility system operations fund
(referred to in the budget document as the "Utility Fund"), two capital project funds, each a
mix of water and sewer projects, the utility capital reserve fund, and the utility debt service
fund.
B. Budgetary Basis of Accounting and Basis of Accounting
Fuquay-Varina utilizes modified accrual accounting as its budgetary basis of accounting
and basis of accounting. A fund's budgetary basis of accounting and basis of accounting
determine when a transaction or event is recognized. Modified accrual accounting
recognizes revenues as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough to be used to pay liabilities of the current period. Fuquay-Varina considers
revenues to be available if they are collected within 90 days of the current fiscal year
period, except for property taxes.
Primary revenue sources accrued under the modified accrual basis are Wake County sales
tax dollars and investment earnings. Expenditures are generally recorded when a liability is
incurred; however, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is
due. Capital expenditures and payments of principle on long-term debt are considered to
be expenditures, while interest on long-term debt is recognized only when paid. Only
revenues and expenditures anticipated during the fiscal year are included in the budget.
Unexpended operating budget funds revert to fund balance at the close of a fiscal year.
Unexpended capital reserve funds are carried forward from year to year until projects are
officially closed.
C. Budgetary Control
Formal budgetary accounting is employed as a management control for all of Fuquay-
Varina's funds. Annual budget ordinances are adopted each fiscal year and amended as
required for all funds. Project sub-funds within the capital project and reserve funds have
budgets that span more than one fiscal year that are adopted and amended as required.
Budgetary control is exercised both at the departmental level, with the adoption of the
budget by the Board, and at the line-item level within departments through accounting
controls. Supplemental appropriations that amend the total expenditures of any line item or
fund in the adopted budget ordinance require a resolution of the Town Board. All
unencumbered budget appropriations, except project budgets, lapse at year-end.
The Budget Officer (or their designee) must approve increases and decreases
within departments. The Budget Officer may also approve inter-departmental transfers,
within the same fund, not to exceed 10% of the appropriated monies for the
department whose allocation is reduced. The Board must by law be informed of such
transfers at its next earliest convenient meeting.
As required by North Carolina law, Fuquay-Varina maintains encumbrance accounts, which
are considered "budgetary accounts." Encumbrances outstanding at year-end represent
FJQ JAY-VAR I N4 FY 2024 BUDGET
164

estimated expenditures for unperformed contracts in process at year-end when they are
completed. Encumbrances outstanding at year-end do not constitute expenditures or
liabilities because the commitments will be honored during the subsequent year.
D. Budaet Officer
As mandated by state statute, the Town Manager serves as Budget Officer.
E. rund StruLtu,
Fuquay-Varina
Budget Funds
General Utility Debt Capital
Enterprise Service Reserve
— General — General
— Utility
General Utility
Fund Fund
Departments
Governing Body X
Administration X
Communications X
Finance X X
Engineering X
Public Buildings X
Police X
Fire X
Inspections X
Streets X
Powell Bill X
Environmental Protection X
Parks, Recreation, and Cultural Resources X
Economic and Physical Development X
Central Services X
Human Resources X
Information Technology X
Utilities X
FUQUi Y-VAR I NA FY 2024 BUDGET
165

EMPLOYEE POSITION AUTHORIZATION BY DEPARTMENT
Fiscal Year 2019-Fiscal Year 2024
N N N N N
N N N N N N
Fiscal Year u_ u_ u_ u_ (2)
Administration 4.00 5.00 5.00 5.00 5.00 5.00
Economic/Downtown Development 2.00 2.00 2.00 2.00 2.00 2.00
Communications 1.00 1.00 1.00 1.00 2.00 2.00
Finance/Utility Billing &Collections 8.00 8.00 8.00 10.00 12.00 12.00
Human Resources 2.50 2.50 3.50 4.50 4.50 4.50
Information Technology 6.00 6.00 6.00 7.00 8.00 8.00
Planning 11.50 12.00 12.00 12.00 13.00 13.00
Engineering 6.50 7.50 7.50 8.50 9.50 11.50
Police 55.00 57.00 63.00 67.00 72.00 83.00
Fire 56.00 59.00 63.00 66.00 75.00 76.00
Inspections 15.00 16.00 18.00 20.00 21.00 21.00
Parks and Recreation 22.00 26.00 27.00 29.00 31.00 34.00
Public Buildings 3.00 3.00 4.00 4.00 5.00 5.00
Arts Center 2.00 2.00 3.00 3.00 3.00 4.00
Public Works 32.50 34.50 34.50 39.50 44.50 47.50
Sewer Operations 10.75 11.75 12.75 13.25 17.25 19.25
Water Operations 9.75 10.75 12.75 13.25 19.25 20.25
Fiscal Year Total (1) 247.50 264.00 283.00 305.00 344.00 368.00
NOTES:
(1) Figures reflected on this schedule reflect the number of full time equivalents(FTEs)as of July 1 each fiscal year.
(2) FY 2024 Changes in Departmental Authorized Positions are described on page 9 in the Town Manager's Budget Message.
DEPARTMENT PERCENT OF TOTAL FTEs
Arts Center
Human Resources 1% Economic/Downtown Development
1% 1%
Administration Public Buildings Communications
1% 1% 1%
Police
Information Technolo 3%
2%
Engineering
3%
Finance/Utility Billing&Collections'
3%
Planning
4%
Sewer Operations
5%
Water Operations Fire
0
° 21%
Inspections
6%
Parks and Recreation
9% Public Works
13%
166

FY 2024 EMPLOYEE POSITION AUTHORIZATION BY CORE VALUE
L acu
C cu a2S
E i p� W 0
ii ` ` L •0 •� a
CU
ra (.0 LL cn w a` - c
Administration 5.00
Economic/ Downtown Development 2.00
Communications 2.00
Finance/ Utility Billing &Collections 12.00
Human Resources 4.50
Information Technology 8.00
Planning 13.00
Engineering 11.50
Police 83.00
Fire 76.00
Inspections 21.00
Parks and Recreation 34.00
Public Buildings 5.00
Arts Center 4.00
Public Works 47.50
Sewer Operations 19.25
Water Operations 20.25
16.50 12.00 199.50 89.00 13.00 38.00
FY 2024 TOTAL FTEs BY CORE VALUE
Effective Government& Governance
5%
Quality of Life
10% Fiscal Strength
3%
Preserving
Characte &
Identity
4%
Economic
Vitality
24% Safety&
Security
54%
167

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Building Permit and Inspection Fees: EX. A
New Dwellings-Single and Duplex
Up to 1200 SQFT* $ 490.00
Over 1200 SQFT Add $0.20 per sqft
*Gross floor area finished within the inside perimeter of the exterior walls with no
deduction for garage,corridors,stairs,closets, or other features. Finished area is that
portion of the building served by mechanical, electrical, or plumbing systems and suitable
for occupants use.
Residential-Addition
(Examples: Bedroom, Bathroom,Sunroom, etc...)
0-400 SQFT $ 330.00
Over 400 SQFT Same as new dwelling
Multi-Family Dwellings
Same as Non-Residential Fee Schedule
(Based on Total Project Cost)
Mobile Homes $ 100.00
Travel Trailers $ 65.00
Residential Accessory Structures
(Examples: Deck, Garage, Open Porches, etc...)
Land Use and $40.00 per Trade Inspection Required
Land Use $ 80.00
Temporary Service Poles $ 80.00
Trade Inspections
Building $ 80.00
Electrical $ 80.00
Mechanical $ 80.00
Plumbing $ 80.00
Sprinkler $ 80.00
Tent Permits
30 days or less $ 60.00
Over 30 days $ 300.00
Miscellaneous Inspection Fees
Add /Change Contractor (Per permit / per trade) $ 55.00
Re-Inspection Fee $ 75.00
Replacement Permit Card $ 10.00
Replacement Certificate of Occupancy $ 20.00
Resubmittal Fee $ 100.00 Per Trade Re-Designed
(applied when a redesign of a trade is required to be re-reviewed)
Conditional CO Application Fee $ 200.00
168

Plan Copies
Stamped Plan Copies $ 80.00
Non Residential Permit Fees
(based on total project cost)
0-700 $ 150.00
701-1,500 $ 256.00
1,501-2,500 $ 380.00
2,501-25,000 $ 525.00
25,001-50,000 $ 750.00
50,001-100,000 $ 1,300.00
100,001-200,000 $ 2,500.00
200,001-350,000 $ 3,500.00
350,001-500,000 $ 5,000.00
500,001-750,000 $ 7,000.00
750,001-1,000,000 $ 9,500.00
Cost over$1,000,000-Add 0.15%of each added million dollars or portion thereof.
Commercial Plan Review
Submittal Fee $ 150.00
(Non-Refundable but will be applied to reduce the permit fee by the same amount)
Under-Ground Storage Tanks
Installations $ 150.00 Per Tank
Removals $ 150.00 Per Tank
Refund Policy
A refund will be issued when requested minus a $50.00 processing fee for any permit,which
has not expired, and the construction has not been started.
PENALTY FEE FOR FAILURE TO OBTAIN A PERMIT
The penalty fee for failure to obtain a permit shall be a fee of$100.00 per permit applicable
for the type of construction work for the site in violation, regardless of whether or not that
particular type of work has been started. All permits will be obtained at one time.This fee
shall apply to licensed and unlicensed builders.
169

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Construction Inspection Fees: EX. B
Utility mains on public or private property requiring inspection by the Public Utilities Dept.
are charged inspection fees. Inspection fees are not charged for service lines.
Private Utility Lines
Water Lines $ 0.75 $ 1.50 per linear foot
Sewer Lines $ 0.75 $ 1.50 per linear foot
Public Utility Lines
Water Lines $ 0.75 $ 1.50 per linear foot
Sewer Lines $ 0.75 $ 1.50 per linear foot
Storm Water System
Length of System $ 0.45 per linear foot
Qty.of Structures $ 20.00 per structure
BMP Inspection Fee (Subdivision Plan) $ 150.00 per BMP as defined in manual
BMP Inspection Fee (Site Plan) $ 200.00 per BMP
Transportation Improvements
Roadway $ 0.50 per linear foot
Curb and Gutter $ 0.25 per linear foot
Sidewalk $ 0.25 per linear foot
Street Signs $ 30.00 per sign
Traffic Signs $ 30.00 per sign
170

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Water and Sewer System Development Fees: EX. C
TABLE A: RESIDENTIAL SYSTEM DEVELOPMENT FEES
Water $ 3,030 $ 3,912 per dwelling unit
Sewer $ 3,250 $ 3,891 per dwelling unit
*** Harnett County Water District water system development fee shall be calculated by subtracting the
Harnett County water system development fee from the Town of Fuquay-Varina water system
development fee
TABLE B: NON-RESIDENTIAL SYSTEM DEVELOPMENT FEES
All non-residential zoning and uses shall pay acreage fees based on the following schedule
Water Acre Fee Sewer Acre Fee
Building Service Per Metered Tap Per Metered Tap
Water Meter Size Based on Tan Size Based on Water Tan Size Total
3/4" $ 3,030 $ 3,912 $ 3,250 $ 3,891 $ 7,803
1" $ 3,328 $ 6,519 $ 5,416 $ 6,485 $ 13,004
1 1/2" $ 6,655 $ 13,039 $ 10,833 $ 12,971 $ 26,010
2" $ 10,619 $ 20,863 $ 17,333 $ 20,753 $ 41,616
3" $ 21,297 $ 41,725 $ 34,665 $ 41,506 $ 83,231
4" $ 33,277 $ 65,196 $ 51,164 $ 64,852 $ 130,048
6" $ 66,551- $ 130,392 $ 108,328 $ 129,705 $ 260,097
8" $ $ 208,624 $ $ 207,575 $ 416,199
TABLE C: NON-RESIDENTIAL FEES FOR FIRE SERVICE
All uses requiring fire protection taps shall pay fire service fees based on the following
schedule.
Size of Water Tap Water Fire
on Town Main Service Fee
4" $ 2,560
6" $ 7,420
8" $ 15,820
10" $ 28,440
12" $ 45,940
171

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Water and Sewer Connection Fees: EX. D
Reimbursement schedule (based on the material cost for the difference between utility
line size needed and utility line size required by the Town per linear foot of line).
WATER LINE
Line Size Construction Cost Oversizina Reimbursement Cost
4' ; —1-2,00 per Iir N/A
6" $ 51.00 per linear foot N/A
8" $ 69.00 per linear foot N/A
12" $ 87.00 per linear foot $ 18.00 per linear foot
16" $ 110.00 per linear foot $ 23.00 per linear foot
SEWER LINE
Line Size Construction Cost Oversizina Reimbursement Cost
8" $ 75.00 per linear foot N/A
10" $ 85.00 per linear foot $ 10.00 per linear foot
12" $ 99.00 per linear foot $ 14.00 per linear foot
15" $ 120.00 per linear foot $ 21.00 per linear foot
18" $ 152.00 per linear foot $ 32.00 per linear foot
24" $ 203.00 per linear foot $ 51.00 per linear foot
BORES
Casing Size Construction Cost Oversizing Reimbursement Cost
16" $ 133.00 per linear foot N/A
20" $ 138.00 per linear foot $ 5.00 per linear foot
24" $ 145.00 per linear foot $ 12.00 per linear foot
30" $ 165.00 per linear foot $ 32.00 per linear foot
36" $ 177.00 per linear foot $ 44.00 per linear foot
172

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Refuse Disposal Fees: EX. E
Garbage Cart Fee $ 75.00 per cart
Solid Waste Fee (Residential and Commercial) $ 20.00 $21.00 per month
White Goods Pickup Fee $ 10.00 per appliance
Electronic Pickup Fee $ 10.00 per visit
Replacement Fee For Damaged or Lost Garbage Cart $ 75.00
Replacement Fee For Recycle Cart $ 75.00
Recycle Fee (Commercial) $ 14.25 per month
plus$75 per cart
up to two carts
Recylcle Cart Fee (New Construction Location) $ 75.00 per cart
Recycle Cart Fee (Add'I Residential Cart) $ 25.00 per cart
Bulk Trash Pickup Fee $ 125.00 per ea. pickup after
first in a fiscal year
173

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Code Enforcement Reimbursement Fees: EX. F
Push Mower, Weed Eater, Edger, Hand Tools $ 35.00 per hour
Tractor w/Mower $ 65.00 per hour
Tractor w/Bush Hog $ 70.00 per hour
Excavator w/Bush Hog $ 90.00 per hour
Dump Truck $ 55.00 per hour
Rubber Tire Back Hoe $ 65.00 per hour
Excavator (Back Hoe) $ 75.00 per hour
Administrative Fee $ 75.00 each occurence
174

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Zoning and Development Fees: EX. G
Administrative Adjustment Application Fee $ 100.00
Administrative Appeal Application Fee $ 400.00
Annexation Petition Fee $ 200.00
Chicken Coop and Pen Permit Fee $ 25.00
Homeowner Recovery Fee (State Mandated) $ 10.00 per single family
by contractor
Itinerant Merchant Permit Fee $ 25.00
Mobile Restaurant Application and Permit Fee $ 30.00 valid for 1 year
Ordinance Text Amendment Fee $ 500.00
Parks, Rec, and Cultural Res- Unit Fee (Single Family) as per 160D-804(d) and LDO 9-1462
Parks, Rec,and Cultural Res-Acreage Fee (Multi Family) as per 160D-804(d) and LDO 9-1462
Peddling and Soliciting Permit Fee $ 50.00
Plan Return Fee $ 50.00
Plan Review Fee- Major Subdivision Construction Drawing $ 500.00 plus $5 per lot
Plan Review Fee-Major Subdivision Preliminary Plat $ 600.00 plus $5 per lot
Plan Review Fee- Plan Amendment $ 450.00
Plan Review Fee-Site Plan $ 625.00 <= 5 acres
$ 1,250,00 >5 acres
Plan Review Fee-3rd &Subsequent Submittals $ 450.00
Plat Review Fee-Major Subdivision Final Plat $ 100.00
Plat Review Fee- Minor, Exempt, and Recombination $ 100.00
Public Record -CD $ 30.00
Public Record - paper copies $10 minimum plus$1 per page
Public Records-plotted maps & plan $20.00 per page
Seasonal Outdoor Sales and Display Permit Fee $ 25.00
Sediment/Erosion Control Review Permit or Fee per disturbed acre or portion thereof
Sediment/Erosion Control Review Fee $ 250.00
Sediment/Erosion Control Land Disturbance Permit $ 250.00
Sediment/Erosion Control Land Disturbance Permit Renewal (2yr) $ 250.00
Sediment/Erosion Control Land Disturbance Permit Renewal (1yr) $ 125.00
Sediment/Erosion Control Plan Review Submission Fee $ 75.00
at 3rd and subsequent resubmissions and amendments
Sign -Children at Play (Sign and Hardware) $ 125.00 per sign
Sign-Speed Limit Sign (Sign and Hardware) $ 125.00 per sign
Sign-Street Name and Stop Sign (Sign and Hardware) $ 200.00 per sign
Sign Permit Fee- Permanent $ 100.00
Sign Permit Fee-Temporary $ 25.00 plus $5 per add!sign
Site Inspection Fee $ 50.00
Small Wireless Facility Application Fee $ 50.00
Small Wireless Facility Co-Location Fee $ 1,000,00 per pole
Special Use Permit Application Fee $ 400.00
Street Closure Petition Fee- Permanent $ 400.00
Street Name Change Fee $ 200.00
Variance Application Fee $ 400.00
175

Zoning Letter of Compliance $ 50.00 each
Zoning Map Amendment Fee- Conditional Zoning $ 600.00
Zoning Map Amendment Fee-Standard Zoning $ 500.00
Zoning Map Amendment Fee-Partial Advertising $ 300.00
Zoning Map Amendment Fee - Master Plan Amendment $ 450.00
176

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Miscellaneous Fees and Charges: EX. H
Insufficient Funds Fee Returned Item Charge (NSF) $ 25.00 $ 35.00
Police Reports $ 3.00
Commercial Enterprise Request For Printed Information $ 10.00 minimum, plus
(such as mailing list or new permits information) $ 1.00 per page
(NOTE: Not legal to provide utility customer information and certain personal info)
Vehicle License Fees $ 30.00
Yard Sale Permit Fee $ 5.00
Civil Penalties $ 100.00 per offense
Sediment/Erosion Control Violation Maximum Civil Penalty* $ 5,000.00 per day/per violation
Stormwater Violation Maximum Civil Penalty** $ 500.00 per day/per violation
Special Event Application Fee (Event Requiring Town Board Approval) $ 50.00
*The Town shall determine the amount of the civil penalty based upon the Civil Penalty Assessment
Factors outlined in LDO §9-1407 (f) Enforcement.
** Per LDO §9-1405 (f) Enforcement &Violations,civil penalties may be assessed up to the full amount of
the penalty to which the Town of Fuquay-Varina is subject for violations of its Phase II Stormwater permit
with NCDEQ if the violator does not pay the penalty in accordance with the adopted fee schedule.
177

SECTION XI: FEE SCHEDULE FOR FY 2023-2024(N-23-20)
Fire Department Fees and Permits EX. I
Required Operational Permits
Amusement Buildings $ 150.00
Carnivals and Fairs $ 150.00
Combustable Dust Producing Operations $ 150.00
Covered Mall Buildings $ 150.00
Exhibits and Trade Shows $ 150.00
Explosives (Blasting) $ 125.00 30 day permit
Explosives (Blasting) $ 225.00 90 day permit
Flammable and Combustable Liquids $ 150.00
(Use, Dispensing,Storage,Transportation)
Flammable and Combustable Liquids $ 150.00
(AGST/UGST Install,Alter, Remove, Abandon)
Flammable and Combustable Liquids $ 150.00
(Change Contents of Tank)
Flammable and Combustable Liquids $ 150.00
(Manufacture, Process, Blend or Refine)
Flammable and Combustable Liquids- Liquid Dispensing $ 150.00
(AGST/UGST to Vehicles)
Flammable and Combustable Liquids $ 150.00
(Tank Vehicle Dispensing into Vehicles)
Fummigation and Insecticidal Fogging $ 150.00
Liquid or Gas- Fueled Vehicles or Equipment $ 150.00
in Assembly Buildings
Private Fire Hydrants $ 150.00
Pyrotechnic Special Events Material (Fireworks) $ 150.00
Spraying or Dipping $ 150.00
= e- Membrane Structure --50.00 per tent-or-canopyt
Required Construction Permits
Automatic Fire Extinguishing Systems $ 150.00
(Sprinkler, Clean Agent System, Fixed Fire Supp.)
Battery Systems $ 150.00
Compressed Gases $ 150.00
Fire Alarm and Detection Systems $ 150.00
Fire Pumps $ 150.00
Flammable and Combustable Liquids $ 150.00
Hazardous Materials $ 150.00
Industrial Ovens $ 150.00
LP Gas $ 150.00
Private Fire Hydrants $ 150.00
Spraying or Dipping Operations $ 150.00
Standpipe Systems $ 150.00
Temporary Membrane Structure,Tents and Canopies .00 $ 100.00
Cryogenic Fluids $ 150.00
Emergency Responder Radio Coverage System $ 150.00
Gates and Barricades Across Fire Apparatus Access Roads $ 150.00
Smoke Control or Smoke Exhaust Systems $ 50.00
Solar Photovoltaic Power Systems $ 150.00
178

Other Required Charges/Fees
Fire Hydrant How Test $ 50.00 $ 150.09
Fire Code Reinspection Fee $ 75.00
Locked/Blocked Exits (1st Offense) $ 250.00
May be issued w/out notice
Locked/Blocked Exits (2nd Offense) $ 500.00
May be issued w/out notice
Fire Alarms >3 per 90 days $ 150.00
Issued on 4th violation, preceeded w/written notice
Each subsequent false alarm w/in the 90 day period
will increase the charge$50 per alarm
Foster Care Inspection N/C
In-Home Daycare Inspection $ 35.00
Group Home Inspection $ 35.00 $ 50.00
Express Fire Alarm or Sprinkler Permit $ 75.00
179

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Other Water and Sewer Fees EX. J
Water and Sewer Tap Fees (3/41
Water Installed By Town $ 2,200.00
(in addition to street cuts $500 each and/or boring as quoted)
Water Installed By Developer $ 405.00
(For 3/4"meter. Additional meter cost for meters over 3/4")
Sewer Installed By Town $ 1,510.00
(in addition to street cuts $500 each and/or boring as quoted)
Sewer Installed By Developer $ 100.00
Irrigation Water Service (3/4"- Residential) $ 920.00
(in addition to Plumbing Permit Fees-See Ex. A)
Irrigation Water Service (3/4"-Non-Residential) $ 850.00
(Water System Development Fees in addition to Plumbing Permit
Fees-See Ex. A, and Meter Cost)
Water and Sewer Customer Deposit (Rental Property) $ 75.00
(includes non-property owners and those whose
service has been suspended)
Water and Sewer Bill Past Due Fee $ 5.00
(applied the day after the due date)
Water and Sewer Bill Payment Arrangement $ 5.00
(to qualify for payment after the disconnect date;
payment must be made before the disconnect date)
Water and Sewer Disconnect Fee $ 20.00
(applies to all customer on disconnect list; includes
$5 past due fee)
Seasonal Use (for turning meter on and off) $ 35.00
(charged at time of reconnect)
Leak Check (for turning meter off and on, $ 7.50
to check for leaks)
(charged at processing of the next month's bill)
Reinstall or unlock meter $ 25.00
(for meters removed or locked due to non-payment)
Damage to 3/4"water meter assembly, meter yoke and/or lock $ 210.00 $ 280.00
Damange to 1"and larger meter assembly, meter yoke and/or lock Cost of new assembly+ $60
Sewer-hauled waste from portable toilets $ 30.00 per 1,000 gallons
Emergency Repairs: Billed at annual FEMA published rates according to Robert T.Stafford
Disaster Relief and Emergency Assistance Act,42 U.S.C. 5121
180

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Parks, Recreation, and Cultural Resource Fees: EX. K
Facility User Fees
Splash Pad
Adults and children two and older(Resident) No Charge
Adults and children two and older (Non-Resident) $2.00/per person per day
One accompanying adult and children under the age of two No Charge
Picnic Shelters (if reserved) -HALF DAY
Resident $ 40.00
Non-Resident $ 80.00
Picnic Shelters (if reserved) - FULL DAY
Resident $ 60.00
Non-Resident $ 120.00
Falcon Park Hut (PER HOUR)
Resident $ 40.00
Non-Resident $ 80.00
Athletic Fields (Daylight- PER HOUR)
Resident $ 30.00
Non-Resident $ 60.00
Athletic Fields (Night Hours-PER HOUR)
Resident $ 45.00
Non-Resident $ 90.00
Athletic Fields (Field Preperation- PER FIELD)
Resident $ 25.00
Non-Resident $ 50.00
Tennis Court (If Reserved -Daylight Hours- PER HOUR)
Resident $ 10.00
Non-Resident $ 20.00
Tennis Court (If Reserved-Night Hours- PER HOUR)
Resident $ 20.00
Non-Resident $ 40.00
Community Center Senior Convenience Pass Access Badge
Resident $ 15.00
Non-Resident $ 25.00
PRCR Multi-Purpose Rooms (PER HOUR)
Community Center Large Conference Room (Resident) $ 30.00
Community Center Large Conference Room (Non-Resident) $ 60.00
Community Center Activity Room (Resident) $ 25.00
Community Center Activity Room (Non-Resident) $ 50.00
Community Center Crafts Room (Resident) $ 25.00
Community Center Crafts Room (Non-Resident) $ 50.00
Community Center Jimmy Johnson (Resident) (Minimum 2 hours) $ 50.00
Community Center Jimmy Johnson (Non-Resident) (Min.2 hours) $ 100.00
HNTPP Clubhouse (Resident) (Minimum 2 hours) $ 100.00
HNTPP Clubhouse (Non-Resident) (Minimum 2 hours) $ 200.00
Community Center Gym Rental (For Fairs/Expositions) No Fee Exemptions
Resident Rate For 4 Hour Rental (Minimum) $ 400.00 minimum
Non-Resident Rate For 4 Hour Rental (Minimum) $ 800.00 minimum
Resident Rate For Over 4 Hours (hour increments only) $ 100.00 per hour
Non-Resident Rate For Over 4 Hours (hour increments only) $ 200.00 per hour
181

Council Gym (Hourly Rental Only)
Resident (hour increments only) $ 50.00 per hour
Non-Resident (hour increments only) $ 100.00 per hour
Program Fees
Summer Programs
Resident $ 125.00 per week
Non-Resident $ 157.00 per week
Exercise Equipment Room (monthly)
Resident $ 15.00
Non-Resident $ 30.00
Senior Fee (Over 55 years of age) - Resident $ 10.00
Senior Fee (Over 55 years of age) -Non-Resident $ 15.00
Drop-In Rate (Resident) $ 2.00 per visit
Drop-In Rate (Non-Resident) $ 4.00 per visit
Town of FV Employees Fees Waived
Adult and Teen Open Gym Pass (monthly)
Resident $ -
Non-Resident $ 10.00
Town of FV Employees Fees Waived
(Program Fees will have a 25% higher cost for Non-Residents)
Adult Basketball Open Gym Drop-In Rate
Non-Resident $ 4.00 per visit
Pickle Ball Membership (monthly)
Resident $ 10.00
Non-Resident $ 15.00
Annual Resident $ 90.00
Annual Non-Resident $ 135.00
Drop-In Rate (Resident) $ 2.00 per visit
Drop-In Rate (Non-Resident) $ 4.00 per visit
Program Refund Processing Fee $ 5.00
Recreation Classes $ - TBD
*Instructors to be paid from resident rate 60%
eSi orts
Resident $ 10.00 per league
Non-Resident $ 15.00 per league
Youth Athletics
Instructional Leagues (Tiny Tots, Cross Country) Resident $ 40.00
Instructional Leagues (Tiny Tots,Cross Country) Non-Resident $ 70.00
T-Ball /Skills & Drills/4U &5U Resident $ 50.00
T-Ball /Skills & Drills/4U &5U Non-Resident $ 80.00
Soccer 6U-17U /Volleyball / Flag Football Resident $ 55.00
Soccer 6U-17U /Volleyball / Flag Football Non-Resident $ 85.00
Baseball /Softball / Basketball Resident $ 60.00
Baseball /Softball / Basketball Non-Resident $ 90.00
Cheerleading /Dance Troupe Resident $ 50.00
Cheerleading /Dance Troupe Non-Resident $ 80.00
Lacrosse Resident $ 80.00
Lacrosse Non-Resident $ 110.00
Tackle Football Resident $ 80.00
Tackle Football Non-Resident $ 110.00
182

Modified Athletics Programs
Resident *To Be Determined
Non-Resident *To Be Determined
Financial Assistance For Youth Sports
Applicant Must Meet Requirements
All Sports except Tackle Football
Resident $ 10.00
Non-Resident (based on available donated funds) $ 15.00
Tackle Football
Resident $ 15.00
Non-Resident (based on available donated funds) $ 35.00
Adult Athletics
Basketball
Resident $ 60.00
Non-Resident $ 75.00
Volleyball/Softball/Flag Football/Soccer/Kickball
Resident $ 40.00
Non-Resident $ 55.00
Forfeiture Fee (per team-on 2nd offense and each time thereafter) $ 50.00 per team per game
Athletic Late Registration Fee
All Sports/All Ages
Resident $ 10.00
Non-Resident $ 15.00
Equipment/Uniform Fee
Football Helmet Replacement Fee $ 110.00
Football Shoulder Pad Replacement Fee $ 110.00
Football Uniform Replacement Fee $ 60.00
Cheer Uniform Replacement Fee $ 100.00
Uniform Reorder Fee $ 15.00
All-Star Uniform Reorder Fee $ 45.00
Event Fees
Sponsors *To Be Determined
Contributions *To Be Determined
Food Vendors *To Be Determined
Craft Vendors *To Be Determined
Electricity for Above Vendors *To Be Determined
*To Be Determined Prior To Each Event
183

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Arts Center Fees: EX. L
Facility Rental Fees
Room 202 (Capacity 48)
Resident $ 30.00 per hour
Non-Resident $ 60.00 per hour
Dance Studio
Resident $ 50.00 per hour(3 hour min.)
Non-Resident $ 100.00 per hour(3 hour min.)
Art Gallery
Resident $ 50.00 per hour(3 hr min)
Non-Resident $ 100.00 per hour(3 hr min)
***The Art Gallery is available for rent after regular hours
and when the theatre is unprogrammed; no seated events permitted
Theatre
All theatre require a $500 refundable damage deposit
Resident $ 150.00 per hour(3 hr min)
Non-Resident $ 225.00 per hour(3 hr min)
Presenter Fee
Resident $ 50.00 per hour
Non-Resident $ 75.00 per hour
(use of stage with minimal technical support for recording or socially distanced meetings)
Theatre (Multi-Day Production Rental)
Resident
Load In Rehearsals $ 75.00 per hour
Tech Rehearsals $ 150.00 per hour
Performances (4 hour block) $ 500.00 per block
Non-Resident
Load In Rehearsals $ 112.50 per hour
Tech Rehearsals $ 225.00 per hour
Performances (4 hour block) $ 750.00 per block
***Theatre rental includes use of basic lighting,sound,screen/projector as needed,and
staff to operate.Additional technical staff or equipment will be assessed and charged
based on individual production/rental needs.
***Renters of Arts Center facility space must be at least 18 years of age at the time of rental and be
able to verify residency in Fuquay-Varina to secure resident rates. Rentals may be made up to
6 months in advance. Rental fees are non-refundable. Food and/or beverages are allowed in
certain approved areas. Business transactions for profit are not permitted on Town-owned or
Town-leased property unless event is sponsored by the Town of Fuquay-Varina. Non-Profit
organizations must verify their status at time of rental.
Program Fees
Classes
Resident *To Be Determined
Non-Resident *To Be Determined
Camps
Resident *To Be Determined
Non-Resident *To Be Determined
Other Programs
Resident *To Be Determined
Non-Resident *To Be Determined
*To Be Determined Based on Materials and Time Frame of Class.
184

Theatre Event Fees
Production Ticket Charge *To Be Determined Per Event
Production Ticket Facility Fee $ 1.00 per ticket
Sponsors *To Be Determined
Vendor Registration *To Be Determined
*To Be Determined Prior To Each Event
185

SECTION XI: FEE SCHEDULE FOR FY 2023-2024 (N-23-20)
Credit Card Payment Fees py EX. M
Onlg,ne Credit C and Convenience Fee (Utility Acc un &l 3.25% r,®r trnncae4isan
Online-Credit Card Convenience Fee (Inspections) 3 % pertransec-tien
Over the Counter Credit Card Convenience Fee* 3 per$ran molten
*(excluding recreation and arts center program fees)
Amended this 5th day of July 2023 in Fuquay-Varina, NC.
FUQUAY-VARINA, NC
Blake Massengill
ATTEST: (TOWN SEAL) �1FUQU,gy
\`\O
Rose H. Rich,Town Clerk - i-- I�/
- = a dash more =
CAR
olllllll `\
186

EXPLANATION OF ACRONYMS
Acronym Explanation
ACFR Annual Comprehensive Financial Report
ADA Americans with Disabilities Act
AMI Advanced Metering Infrastructure
AOB Annual Operating Budget
BA Budget Adjustment
BBP Blood-borne Pathogen
BID Business Improvement District
CALEA Commission on Accreditation for Law Enforcement Agencies
CAMPO Capital Metropolitan Planning Organization
CDL Commercial Driver's License
CFAI Commission on Fire Accreditation International
CIB Capital Improvements Budget
CIP Capital Improvements Plan
CO Certificate of Occupancy
COPs Certificates of Participation
DBA Doing Business As
DARE Drug Awareness Resistance Program
DENR Department of Environment and Natural Resources
DMV Division of Motor Vehicles
DOT Department of Transportation
EDU Equivalent Dwelling Unit
EEO Equal Employment Opportunity
EMS Emergency Medical Services
EPA Environmental Protection Agency
ETJ Extra Territorial Jurisdiction
FCC Federal Communications Commission
FD Fire Department
FEMA Federal Emergency Management Administration
FHWA Federal Highway Administration
FM Force Main
FM2FV Follow Me to Fuquay-Varina (concert series)
FSE Food Service Establishment
FOG Fats, Oils, and Grease program
FT Full-time
FTE Full-time Equivalent
FV Fuquay-Varina
FVFD Fuquay-Varina Fire Department
FVPD Fuquay-Varina Police Department
FY Fiscal Year
GAAP Generally Accepted Accounting Principles
GASB Governmental Accounting Standards Board
GF General Fund
GFOA Government Finance Officers Association
FUQU4'(-VAR 1 N4 FY 2024 BUDGET
187

Acronym Explanation
GIS Geographic Information Systems
GO General Obligation Bonds
GPS Geographic Positioning System
HR Human Resources department
HVAC Heating, Ventilation, and Air Conditioning
I&I Inflow & Infiltration
IBT Inter-Basin Transfer
IT Information Technology
ITS Integrated Traffic System
LAPP Locally Administered Projects Program
LASII Local Assistance for Stormwater Infrastructure and Investment
LDO Land Development Ordinance
LED Light Emitting Diode
LEED Leadership in Energy and Environmental Design
LGBFCA Local Government Budget and Fiscal Control Act
LGC Local Government Commission
LOB Limited Obligation Bond
LOS Level of Service
MGD Million Gallons per Day
MOU Memorandum of Understanding
MSA Metropolitan Statistical Area
N/A Not Applicable
NC North Carolina
NCGS North Carolina General Statute
NCLM North Carolina League of Municipalities
NFPA National Fire Protection Association
NPDES National Pollutant Discharge Elimination System
O&M Operating and Maintenance
OS Oversizings
OSHA Occupational Safety and Health Administration
PD Police Department
PIL Payment in Lieu (Recreation)
PO Purchase Order or Police Officer
PRCR Parks, Recreation and Cultural Resources department
PS Pump Station
PSA Public Service Announcement
PSC Public Service Center
PT Part-time
PUD Planned Unit Development
PW Public Works
RDU Raleigh-Durham Airport
RFP Request for Proposals
RMS Records Management System
SCADA Supervisory Control and Data Acquisition
SCIF State Capital and Infrastructure Funds
FUQU4Y—\/41:MA FY 2024 BUDGET
188

Acronym Explanation
SF/SQFT Square Foot
SRF State Revolving Funds (loans)
SRO School Resource Officer
SS Sanitary Sewer
SSO Sanitary Sewer Oversizing
STM Storm Drainage Management
T-Bill Treasury Bill
TIA Traffic Impact Analysis
TIP Transportation Improvement Program
TM Town Manager
OF Utility Fund
UT Utilities
VLF Vehicle License Fees
WCPSS Wake County Public School System
W/S Water and Sewer
WT Water Treatment
WTP Water Treatment Plant
WWTP Wastewater Treatment Plant
GLOSSARY OF TERMS
ACCRUAL ACCOUNTING: A basis of accounting in which revenues and expenses are recorded at the time
they are incurred, instead of when cash is actually received or disbursed (see funds). For example, in
accrual accounting, a revenue earned between June 1 and June 30, but for which payment was not
received until July 12, is recorded as earned on June 30 rather than on July 12.
ACCOUNTS: Accounts are used to enter the formally adopted annual operating budget into the general
ledger, as well as to organize expenditures and revenues by fund, program, department, activities, etc.
ACREAGE FEES: Fees charged by the gross acre against all property to be developed. Fees start at$750 per
acre for water and sewer for residential development and increase as density increases. These fees are
restricted to Utility Fund projects. These fees were replaced with the Water and Sewer Development Fees in
FY 2000.
ACTIVITY: A specific service or unit of work performed.
AD VALOREM TAX(PROPERTY TAX): A tax levied on the assessed value of real, personal, public service and
vehicle property located within the Town.
AMORTIZATION: The extinction of a debt through a series of payments over time. This is frequently referred
to when discussing the series of loan payments associated with paying down the total amount owed due to
funds that were previously borrowed.
APPROPRIATION (BUDGETING): A legal authorization granted by the Town Board to make budgeted
expenditures and to incur obligations for purposes specified in the budget ordinances.
FUQU4Y-\/4R 1 N4 FY 2024 BUDGET
189

ASSESSED VALUATION: A value established for real property for use as a basis for levying property taxes.
AUDIT: An official inspection of an individual's or organization's accounts, typically by an independent body,
with the goal of providing reasonable assurance that the financial statements have been prepared in
accordance with Generally Accepted Accounting Principles (GAAP) set forth by the Governmental Accounting
Standards Board (GASB) and are free of material misstatement.
BALANCED BUDGET: Occurs when planned expenditures equal anticipated revenues. In North Carolina, it is
a requirement that the budget submitted to the Town Board be balanced.
BASIS OF ACCOUNTING and BASIS OF BUDGETING: The system under which revenues, expenditures,
expenses, and transfers - and the related assets and liabilities - are recognized in accounts and reported
in financial statements. Basis of Accounting and Basis of Budgeting specifically relates to the timing of the
measurements made. Full Accrual and Modified Accrual are each an accepted Basis of Accounting and
Basis of Budgeting. The Town of Fuquay-Varina does not distinguish between Basis of Accounting and Basis
of Budgeting. All Town of Fuquay-Varina funds are maintained on a modified Accrual basis.
BOND: A written promise to pay a designated sum of money(the principal)at a specific date in the future,
along with periodic interest at a specified rate. The payment on bonds is identified as Debt Service. Bonds
are generally used to obtain long-term financing for capital improvements.
BOND ANTICIPATION NOTES (BANS): Short-term interest-bearing notes issued by the Town in anticipation of
bonds to be issued at a later date. The notes are retired from the proceeds of the bond issue to which they
are related.
BOND/DEBT PROCEEDS: The cash resulting from the sale of debt on the bond market. This cash is used to
pay for specific capital projects and is repaid with interest based upon a structured repayment schedule.
BOND FUNDS: Resources derived from issuance of bonds for specific purposes and related Federal project
grants used to finance capital expenditures.
BOND RATING: A rating(made by an established bond rating company)from a schedule of grades indicating
the probability of timely repayment of principal and interest on bonds issued. Fuquay-Varina has an AAA
bond rating from all three major bond rating companies.
BOND REFERENDUM: An election in which registered voters vote on whether the Town will be allowed to
issue debt in the form of interest-bearing bonds.
BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period
and the proposed means of financing them. Upon approval by the Town Board, the budget appropriation
ordinance becomes the legal basis for expenditures in the budget year.
BUDGET DOCUMENT (PROGRAM AND FINANCIAL PLAN): The official written statement prepared by the
Town staff reflecting the decisions made by the Board in their budget deliberations.
BUDGET MESSAGE: A general discussion of the budget that provides the Town Board and public with a
summary of the most important aspects of the budget, changes from previous fiscal years, and the views
and recommendations of the Town Manager.
FUQU4Y—\/4R N4 FY 2024 BUDGET
190

BUDGET ORDINANCE: A formal legislative enactment by the Town Board. If it is not in conflict with any
higher form of law, such as a statute or constitutional provision, it has full force and effect of law within the
boundaries of the municipality to which it applies.
BUDGET SCHEDULE: The schedule of key dates or milestones that the Town follows in preparation and
adoption of the budget.
CAPITAL IMPROVEMENTS BUDGET: The schedule of project expenditures for the acquisition and
construction of capital assets for the current fiscal year.
CAPITAL IMPROVEMENTS EXPENDITURE: Major construction, repair of, or addition to buildings, parks,
streets, bridges, and other Town facilities. Capital Improvements projects cost$25,000 or more and have a
useful life of more than three years.
CAPITAL IMPROVEMENTS PLAN: The annually updated plan or schedule of project expenditures for public
facilities and infrastructure (buildings, roads, etc.), with estimated project costs, sources of funding, and
timing of work over a 5-year period.
CAPITAL OUTLAY: Vehicles, equipment, improvements, software, and furniture purchased by the Town which
individually amount to an expenditure of$750 or more, but less than $25,000, and which have an
expected life of more than one year.
CAPITAL RESERVE FUND: A special fund used as a clearing house for monies being transferred from other
funds into capital project accounts.
CO (Certificate of Occupancy): is a document issued by the governing agency, signifying that a newly
completed building or dwelling conforms to building code regulations and all pertinent ordinances, by
meeting the required health and safety standards, and can thereby be inhabited.
CONTINGENCY ACCOUNT: Account in which funds are set aside for emergency and exceptional expenditures
that may become necessary during the year and which have not otherwise been provided for in the context
of the annual operating budget.
COUNCIL-MANAGER FORM OF GOVERNMENT: This is a type of government recognized by the State of North
Carolina. Under this form of government, the Mayor and Council establish policy, while a professional
manager and his/her appointees are responsible for governmental operations. The Town of Fuquay-Varina
calls its council the Board of Commissioners.
DEBT LIMIT: The maximum amount of outstanding gross or net debt legally permitted. The State of North
Carolina forbids cities from incurring debt in excess of 8% of the total assessed valuation of taxable
property within the city.
DEBT SERVICE: Payment of long-term debt principal, interest, and related costs on borrowed funds such as
bonds. Debt service is budgeted and accounted for in the fund in which it is incurred.
DEFERRED COMPENSATION: The Town participates in a supplementary retirement income plan (401-K). In
addition to Town contributions, each employee has the option of making additional pre-tax contributions.
DEPARTMENT: A major administrative division of the Town that indicates overall management responsibility
for an operation or a group of related operations within a functional area. A department usually has more
than one program and may include activities or divisions that are accounted for in different funds.
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DEPRECIATION: A method of allocating the cost of a tangible asset other than land over its useful life. For
example, the normal life of an asset (e.g., fire truck) might be twenty years. The value of that capital asset
decreases, or depreciates, over time. The annual depreciation of fixed assets is reported on the financial
statements of funds using the accrual basis of accounting. Depreciation is not an expense that is reported
on the budgetary financial statements.
DEVELOPER REIMBURSEMENT: A special case in which the Town reimburses the developer's contribution
for a particular construction project, such as waterline oversizings. In the reverse of this situation, the
developer may have to reimburse the Town.
DIVISION: A program or function that falls within the specific functional area assigned to a particular
Department. Several Divisions may comprise a single Department.
ENCUMBRANCE: A financial commitment for a contract not yet performed. An encumbrance is charged
against an appropriation, and a portion of the appropriation is reserved for the purpose of satisfying the
encumbrance. It represents the expenditure the Town will make after performance under the contact is
completed and an invoice is served.
ENTERPRISE FUND: A grouping of activities whose expenditures are wholly or partially offset by revenues
collected from consumers in the form of fees or charges.
EXPENDITURE: The outlay of or obligation to pay cash; a decrease in net financial resources.
EXTRATERRITORIAL ZONING JURISDICTION (ETJ): A geographic area extending from one to three miles
beyond a municipality's corporate limits within which the municipality exercises zoning and subdivision
control and enforces the State Building Code. A municipality assumes this authority only if the county is not
enforcing these three types of development regulations.
FINAL BUDGET: Term used to describe revenues and expenditures for the upcoming year beginning July 1
as adopted by the Town Board.
FIXED ASSETS: Assets of a long-term character which are intended to be held or used, such as land,
buildings, machinery,furniture, and other equipment.
FISCAL YEAR: Any consecutive 12-month period to which the annual operating budget applies and at the
end of which a government determines its financial position and the results of its operations. The Town of
Fuquay-Varina's fiscal year runs from July 1 to June 30.
FIVE YEAR PLAN: The budget and financial plan that aligns with the Town of Fuquay-Varina's Strategic Plan.
FLEXIBLE SPENDING ACCOUNTS: Town employees have the option of having pre-tax dollars deducted from
their paychecks and held in a special account, designated for either medical or childcare expenses.
Throughout the year, employees can submit claims to their flex accounts, and be reimbursed with their own,
pre-tax dollars.
FULL-TIME POSITION: Any employee who receives full benefits and works at least 40 hours per week.
FULL-TIME EQUIVALENT POSITION (FTE): A part-time position converted to the decimal equivalent of a full-
time position based on 2,080 hours per year. For example, a seasonal employee working for four months,
or 690 hours, would be equivalent to .3 of a full-time position.
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FUNCTION: A group of related programs crossing organization (departmental) boundaries and aimed at
accomplishing a broad goal or major service.
FUND: An accounting entity with self-balancing accounts. A fund records all financial transactions for
specific activities or government functions.
FUND BALANCE: Amounts shown as fund balance represent monies which remain unspent after all
budgeted expenditures have been made. North Carolina statutes dictate that a portion of fund balance is
not available for appropriation in the following fiscal year. This term is used in relation to governmental
funds.
FUND EQUITY: Amounts shown as fund equity represent monies which remain unspent after all budgeted
expenditures have been made. This term is used in relation to proprietary funds.
GAAP (Generally Accepted Accounting Principles): Accounting principles that are commonly used in
preparing financial statements and generally accepted by the readers of those statements. The
authoritative source of GAAP for state and local governments is the Governmental Accounting Standards
Board (GASB).
GENERAL FUND: The general operating fund of the Town used to account for all financial resources except
those required to be accounted for in another fund.
GENERAL LEDGER: A record containing the accounts needed to reflect the financial position and the results
of operations of a government.
GENERAL OBLIGATION BONDS: Debt issued by the Town, repayment of which is backed by full taxing power.
GOAL: A statement of broad direction, purpose or intent based on the needs of the community. A goal is
general and timeless;that is, it is not concerned with a specific achievement in a given time period.
GOVERNMENTAL FUND: A fund generally used to account for tax-supported or grant activities that go to the
delivery of public goods and services. Examples of government funds are the general fund and the general
capital projects fund.
GRANTS: Contributions or gifts of cash or other assets from another government to be used or expended for
a specified purpose, activity, or facility.
INSTALLMENT PURCHASE DEBT: The Town may borrow money from financial institutions to purchase an
asset through a contract, with the asset serving as a security guarantee for the financial institution.
INTERCEPTOR: A large sanitary sewer collection line.
INTERFUND TRANSFER: Transfers between funds (an accounting entity with self-balancing accounts) to
support activities in the receiving fund.
INVESTMENT REVENUE: Revenue earned on investments with a third party. The Town uses a pooled cash
system, pooling the cash of all funds and investing it in total. The interest earned is then allocated back to
the individual funds by the average cash balance in that fund.
LDO (Land Development Ordinance): A compilation of rules and regulations adopted by the Town Board,
pursuant to the authority granted to the Town of Fuquay-Varina by the NC General Assembly. This ordinance
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protects the health, safety, and general welfare of the general public, and it implements the policies of the
Fuquay-Varina Comprehensive Plan, which guides development of the physical environment of the Town
and its planning jurisdiction.
LET'S TALK FV: Community engagement software and website.
LGC (Local Government Commission): An agency in the NC State Treasurer's Office which oversees local
government bonded debt and assists cities and counties in all areas of fiscal management. The LGC
conducts all bond sales and ensures that local units have sufficient fiscal capacity to repay debt.
LOB (Limited Obligation Bonds): Debt issued by the Town, repayment of which is backed by the asset being
financed as a guarantee to investors who purchase the debt on the bond market.
LIABILITIES: Debts or other legal obligations arising out of transactions in the past which must be liquidated,
renewed, or refunded at some future date. This term does not include encumbrances.
MAJOR FUND: GASB defines major funds as those meeting the following criteria: The total assets, liabilities,
revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 10
percent of the corresponding total (assets, liabilities, etc.) for all funds in that category (governmental
funds) or of that type (enterprise funds).
MGD (Million Gallons per Day): A measure used to express the amount of water or wastewater that is
treated at the water and wastewater treatment plants.
MODIFIED ACCRUAL: The basis of budgeting and accounting where revenues are recorded when collectable
within the current period or soon thereafter to be used to pay liabilities of the current period. Expenditures
are recognized when the related liability is incurred.
NET BONDED DEBT: The amount calculated as gross bonded debt less debt service monies available at
year-end less debt payable from Enterprise Revenues, which ultimately equates to amounts to be repaid
through property taxes.
OBJECTIVE: A statement of specific direction, purpose, or intent to be accomplished by staff within a
program.
OPERATING BUDGET: Fuquay-Varina's financial plan that outlines proposed expenditures for the coming
fiscal year and estimates the revenues that will be used to finance them.
OPERATING FUNDS: Resources derived from recurring revenue sources used to finance ongoing operating
expenditures and pay-as-you-go capital projects.
OPERATIONS AND MAINTENANCE EXPENDITURES: Costs other than those for salaries, benefits, and capital
outlay that are necessary for the provision of services offered by the Fuquay-Varina.
PAYMENT-IN-LIEU: Payments made typically by developers in lieu of improvements. This payment is based
on appraised values. These funds are restricted to specific types of parks and recreation and transportation
projects.
PERSONNEL SERVICES: The expenditure category that includes total costs of all wages, salaries, retirement,
and other fringe benefits.
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PERFORMANCE MEASUREMENT: Any systematic attempt to learn how responsive a government's services
are to the needs of constituents through the use of standards, workload indicators, etc.
PLANNED CAPITAL PROJECTS: Capital projects with funding needs appearing in years two through five of
the Capital Improvements Budget/Plan. These needs have been matched with estimated available
resources but can only be adopted as they roll into the first year of the plan.
POLICE SEPARATION ALLOWANCE: A separate trust fund, required by state law, to provide a separation
allowance for police officers if they retire after age 55 and have served at least 5 years.
POWELL BILL FUNDS: An intergovernmental transfer from the State of North Carolina. These revenues are
based on gasoline sales in the state and the number of miles of streets within the Town. These funds must
be used for transportation projects.
PRETREATMENT PROGRAM: Industries must obtain a permit and renew it annually in order to discharge into
the Town's wastewater system. The program includes sampling charges for monitoring the industry's
discharge and surcharges for any discharges exceeding desired limits.
PRODUCTIVITY: A measure of the output of Town programs per unit of resource input invested.
PROGRAM: An organized set of related work activities, which are directed toward accomplishing a common
goal. Each Town department is usually responsible for a number of related service programs.
PROGRAMMED CAPITAL PROJECTS: Capital projects for which projected available resources have been
assigned in the budget year and next four planning years. Only the first year's funds have been
appropriated.
PROPERTY TAX (AD VALOREM TAX): A tax levied on the assessed value of real and personal property located
within the Town.
PROPRIETARY FUND: A fund used to account for the sale of private goods and services, thus functioning
more typically like business-type ventures of a local government. The two types of proprietary funds are the
enterprise fund and the internal service fund. The Town of Fuquay-Varina utilizes an enterprise fund to
account for its water and sewer operations; it does not have any internal service funds.
PUD (Planned Unit Development): A tract of land under single ownership, or under common control
evidenced by duly recorded contracts or agreements approved by the Town Board, which is planned and
developed as an integral unit in a single development operation or in a programmed series of development
operations in accordance with a master land use plan and detailed engineering and architectural plans as
approved by Town Board.
REFUNDING: The issuance of long term debt in exchange for, or to provide funds for, the retirement of long-
term debt already outstanding. Refunding is essentially the "refinancing" of long-term debt.
RESERVE: A portion of fund balance earmarked to indicate that it 1) is not available for expenditure, or 2) is
legally segregated for a specific future use.
RESOURCES: Assets that can be used to fund expenditures. These can be such things as property taxes,
charges for service, beginning fund balance, or working capital.
RETAINED EARNINGS: An equity account reflecting the accumulated earning of an enterprise or internal
service fund.
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REVENUE: Income received from various sources used to finance government services (ex. sales tax
revenue).
REVENUE BONDS: Bonds whose principal and interest are payable exclusively from earnings of an
Enterprise Fund. Such bonds sometimes contain a mortgage on the fund's property.
RISK MANAGEMENT: The identification and control of risk and liabilities incurred by a local government to
conserve resources from accidental loss.
SERVICE LEVEL TREND: The tracking, over a specified time period, of an output measure showing a
workload change or the degree of achievement for stated program objectives.
SEWER DEVELOPMENT FEES: See System Development Fees.
SPECIAL REVENUE FUNDS: Special Revenue Funds are used to account for resources that are subject to
legal spending restrictions. They are created when a resolution, statute or ordinance requires that specific
taxes or special revenue sources are used to finance a particular activity.
STRATEGIC PLAN: The vision, mission, core values, and goals for the Town of Fuquay-Varina. The five year
plan articulates the budget and financial aspects of implementing the strategic plan.
SYSTEM DEVELOPMENT FEES: These fees were developed in FY 1999 to replace acreage fees and
connection charges. There is a separate fee for water and sewer. The fees are due at building permit
issuance.
TAX BASE: The total assessed valuation of real property within the Town.
TAX RATE: See Ad Valorem Tax or Property Tax.
TIPPING FEES: The cost incurred by the Town to deposit garbage in the Wake County Landfill. In FY 2009
the Town has budgeted $30 per ton to cover these charges. Effective January 2009, the Town has also
budgeted an additional $2 per ton excise tax that will be due for each ton received at the landfill.
TRANSFER: An appropriation to or from another fund. A transfer is the movement of money from one fund
to another to wholly or partially support the functions of the receiving fund.
TRANSPORTATION IMPROVEMENT PROGRAM (TIP):A document containing funding information and
schedules for State Transportation Projects, including highways, aviation, enhancements, public
transportation, rail, bicycle and pedestrians, and the Governor's Highway Safety Program. TIP is the
statewide program run by the North Carolina Department of Transportation.
USER CHARGES: The payment of a fee for direct receipt of a public service by the party benefiting from the
service.
WATER DEVELOPMENT FEES: See System Development Fees.
WORKLOAD INDICATORS: An indication of the output of a department. It may consist of transactions,
products, events, services, or persons served. Also referred to as KPIs, key performance indicators.
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