Budget

The fiscal year 2018-19 budget appropriates funds to be used from July 1st, 2018 through June 30th, 2019.

  • Total budget (all funds): $132,261,100
  • Property tax rate: $0.415 per $100 valuation 
  • Vehicle fee: $20
  • Garbage, recycling, and yard waste service fees increase by $1.14/month
  • Electric rate increase of 2.15% 
  • Water rates are unchanged
  • Sewer rate increase of 4.3%
0. FY18-19 Budget Cover3

Major Projects / Expenditures


Transportation
  • Street Resurfacing ($1.5 M) Annual resurfacing contract provides or most of the pavement maintenance needs 150 miles of municipal streets. 
  • Kelly Road Sidewalk & Apex Barbecue Road Path ($1.1 M) Extend sidewalk from Kelly Road Park to Apex Barbecue Road and extend a 10-foot shared use path along Apex Barbecue Road to Scotts Ridge Elementary School. 
Parks, Recreation & Cultural Resources
  • Middle Creek Greenway ($610,000)  Phase I includes construction of just under a half-mile of greenway connects the Towns of Apex and Holly Springs, crossing NC540. 
  • Beaver Creek Greenway ($1.9 M)  Phase 1 constructs one mile of greenway completes this corridor from Jaycee Park to the Apex Nature Park and connects neighborhoods, churches, schools, and parks.
  • Pleasant Park ($12.4 M)  Initial development of  92-acre tract includes multi-purpose athletic fields, splash pad, significant work on roads and utilities. 
  • Community Center Expansion / Senior Services Center ($8.5 M)  Provides additional programming space for senior activities, as well as youth and adult programming.
Public Safety
  • Ladder Truck, Public Safety Station 5 ($1.2 M)  Improves response times in the western side of town that includes five schools, part of the Beaver Creek Shopping Center and everything north of Highways 64 and 55.
Facilities
  • Solar Photovoltaic Systems for Town-Owned Buildings ($500,000)  Install up to an additional 500 kW of generation, helping reduce our power purchase costs and serve as a good example for our business and residential customers by highlighting the benefits of renewable energy. 
Electric Utilities  
  • Smart Grid Meter & Load Control ($1.2 M)  Provides ability to manage electrical service customers through highspeed, standards-based communications to access real-time data. 
  • Electric Facility at Mt. Zion ($7.5 M)  Construction of an administrative and operations facility to allow for the relocation of Electric Department personnel, vehicles, equipment, and supplies. 

For more information, view the Town of Apex Capital Improvement Projects map which shows a yearly outline of current capital improvement projects. 



Budget Process


You might consider the annual operating budget to be the town’s most important work product. It gives Apex town officials the authority to collect revenue and make expenditures, depending on the priorities of the council, staff, and community. 


By June 30 each year, the council is required by state law to approve the budget for the coming fiscal year (July 1 - June 30). Staff begins estimating revenues and expenses for the coming year, and seeks public input beginning in January. Generally by May, the Manager has a draft budget complete for Council's review and public comment.

Revenues


Most of the town's revenues come from ad valorem (property) tax, and State-collected revenue, such as the state sales tax. These revenues make up the General Fund.

Expenditures


All expenditures related to day-to-day operations of the town come from the General Fund. Capital projects, such as the construction of roads, parks, and other public facilities, are also budgeted with General Fund dollars. Any expenses related to the maintenance and operation of water, sewer, and electric services come not from the General Fund, but instead from their respective Utility Funds:
  • 40% Public Safety
  • 15% General Government
  • 10% Cultural & Recreation
  • 9% Environmental Protection
  • 9% Economic & Physical Development
  • 9% Transportation
  • 8% Debt Service

Fund Balance


The town’s fund balance is much like a savings account, as compared to a household budget. If the town brings in more revenues than expected or spends less than the budgeted expenditures, then at the end of a budget year these differences, or extra funds, become part of this savings account that constitutes the fund balance. 

The North Carolina Local Government Commission requires all North Carolina municipalities to maintain at least 8% of 1 year's general fund operating expenses in their Fund Balance. The town’s policy is to maintain that ratio at 25% as a minimum. In Apex, that equals about $9 million. Currently, the town’s fund balance stands at $21.1 million, or 35.5%. 

See more detail regarding fund balance on pages 63-64 of the current budget document.

Ratings


It is important to maintain a healthy fund balance. Bond Rating Agencies analyze a municipality’s practice of fund balance usage and adherence to their fund balance policy. These agencies have been quite pleased with Apex’s fund balance maintenance: 
  • Standard and Poor’s rates Apex as AAA (the highest possible rating)
  • Moody's rating is Aaa (the highest possible rating)
These ratings allow the town to borrow money at the most favorable interest rates.