Budget Process

The annual operating budget one of the Town’s most important work products. 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, Town 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. By May, the Town Manager typically has a draft budget complete for Council’s review and public comment.

Revenues

The General Fund includes services that cannot be operated as a business enterprise and rely on tax dollars as their primary revenue source. Most of the Town’s General Fund revenues come from ad valorem (property) tax in addition to State-collected revenue (such as the state sales tax), permits and fees, restricted and unrestricted intergovernmental revenues, fund balance allocation, and miscellaneous revenues. 

The Town of Apex operates three major funds as enterprises: Electric Fund, Water and Sewer Fund, and Stormwater Fund. Enterprise funds operate similar to a business and are self-sustaining with user rates and fees that generate all revenues to cover expenditures.

Expenditures

All expenditures related to the Town’s day-to-day operations 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, stormwater, and electric services come from their respective enterprise utility funds, rather than the General Fund. The Town’s 22 General Fund departments and divisions can be grouped into the following six primary function areas:

  • Public Safety: 40%
  • General Government: 19%
  • Cultural & Recreation: 14%
  • Economic & Physical Development: 13%
  • Environmental Protection: 8%
  • Transportation: 7%

Fund Balance

The Town’s fund balance is comparable to a household’s savings account. If the Town receives 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 one year’s general fund operating expenses in their fund balance. The Town’s policy is to maintain that ratio at least 25%. From time to time, the Town will use money from fund balance to cover one-time expenses, such as specific capital items. The Town evaluates any decision to use fund balance carefully and often plans the use in advance to ensure adherence to the Town’s fund balance policy.

In the General Fund, $3,825,000 in fund balance appropriations will help fund the following projects:

  • Reedy Branch, Beaver Creek, and Middle Creek Greenways
  • Wimberley Road Park Design
  • Salem Street Downtown Streetscape, Gathering Space, & Alleys
  • South Salem Street Bicycle Connection
  • Solid Waste Rear Loader

Ratings

Maintaining a healthy fund balance is crucial to the Town’s sound financial management. Also, bond rating agencies considering a municipality’s fund balance usage and adherence to fund balance policy when issuing ratings. Standard and Poor’s rated the Town of Apex as AAA, their highest possible rating, and Moody’s rated the Town Apex as Aaa, also their highest possible rating. These ratings allow the Town to borrow money at more favorable interest rates.