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Morrisville Performance Measures AdvisoryCommittee Advisory Board/Committee November 13, 2019, 6:00 pm

1. Call to Order

2. Adoption of Agenda

3. Approval of Minutes3.a. Approval of July 10, 2019 Minutes

20190710Minutes.pdf

4. Presentations4.a. Presentation of Comprehensive Annual Financial Report for FY2019 and Fund

Balance Analysis - Nancy Emslie, Finance Director

Final Presentation_Nov.pdfNov2019 - Fund Balance Analysis Report.pdf

5. New Business5.a. Review of 2020 Meeting Schedule and Election of 2020 Officers

2020 Proposed Mtg Schedule.docx

6. Staff Comments

7. Committee Comments

8. Upcoming Events8.a. Board/Committee Training Opportunity and Social - Wednesday, January 22, 2020

(additional details to come)

9. Adjournment

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100 Town Hall Drive | Morrisville, NC 27560 | P: 919.463.6200 | F: 919.481.2907 | to wnofmorrisville.org

Performance Measures Advisory Committee

July 10, 2019 6:00 p.m.

MINUTES

1. Call to Order The meeting was called to order at 6:12 pm.

Attendance

Members present: Member Lauren Butler Chair Michael Gammon Member Raj Narayana Member Kristen Richardson Member Biswadev Roy Member Rupali Tayal (out at 7:05 p.m.) Member John Wall

Members Absent: Member Christopher Graham Member Phyllis Hines Staff Present: Erin L. Hudson, Strategic Performance Manager Lola Roland, PD. Sr. Administrative Assistant

2. Adoption of Agenda

Motion: Member Wall Second: Member Tayal Vote: Unanimous

3. Approval of Minutes

a. May 9, 2019 Motion: Member Richardson Second: Member Wall Vote: Unanimous

4. Presentations

a. Presentation of Administration Performance Measures and Connect

Morrisville Strategic Plan Update Q: Please clarify an “individual plan.” A: The individual plans are a component of the Strategic Plan process that will allow individual staff members to align their work with the plan. At the start of a new performance year (fiscal cycle), employees meet with their supervisors to discuss goals for the coming year, and this opportunity allows for discussion of how established goals can align with the organizational plan. Q: Are goal teams cross-departmental?

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A: Yes. We aimed for a cross-section of staff from all departments, as well as all levels of the organization. We have a plan in place to rotate goal team members periodically to maintain fresh ideas and perspective from within the organization. Q: How was staff able to reduce the number of overall performance measures? A: We recognized that we have some great programs and data in place and asked staff to first review the measures already in existence. Q: What are Smart Cities? A: A designation provided to municipal agencies that incorporate information and communication technologies to enhance quality and performance of services. Q: What does “technology” mean, i.e. software, departmental, organizational? A: Morrisville is committed to seeking technology that will advance the work of the organization and best meet the needs of our community, in all respects. Q: Did the recent 911 conversion fall under the technology goal? A: It would likely fall under both the technology and public safety goals. While the conversion was a massive project for our Information Technology staff, it will also allow Morrisville to provide improved public safety services and shorter emergency response times. Feedback: Member Wall commented that Facebook Messenger posts may be another useful tool for public engagement. Q: Is there is a state level accreditation for public safety, as it appears the accreditations noted are national level? A: Ms. Hudson was unsure of any state-level accreditation processes. Q: With the advent of individual employee plans, is a new technology or software being considered, and has any thought been given to demonstrate how individual plan components may link back to the organizational plan? A: Human Resources staff is assessing the performance review software currently in place to determine if it best meets organizational needs or if other solutions may be sought out. Individual plan components may not be shown in detail as an alignment to the organizational plan (as they could deal with personnel information), but staff will demonstrate the alignment. Q: The committee asked clarifying questions related to public records. A: Ms. Hudson noted that there is an historic document archive portal on the Town’s website, and admittedly, it could be more widely advertised. She also noted that the public records request portal was available on the website whereby anyone could request records that may not be accessible through the archive portal. She also noted that if a member of the public were to request emails, they would be reviewed to ensure any comingled confidential information was redacted prior to provision. Q: Will the MPEAC or Town Council meet with school board representatives? A: The committee has not yet been seated. There is a possibility that Town Council could task the committee to meet with school board representatives, but that is not yet known.

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Town Council does not have a scheduled meeting with the school board or its representatives at this time. Q: Who is Morrisville’s Wake County School Board representative? A: District 7 representative is Chris Heagarty. Q: How was the Morrisville Community Library site chosen? A: Morrisville was not large enough for a regional library and council advocated for a community library for several years. The Town provided land for the site.

5. Staff Comments

5.a. PMAC Work Plan Item – Follow Up from previous meeting presentation with staff feedback on presentation discussion

Ms. Hudson shared that the previous staff presenter, Courtney Tanner, Planning Director, indicated the Committee’s comments were generally related to Planning Department functions. While she was able to provide the requested information, she recommended future presenters plan to provide department information at a high level on the front end of the presentation.

6. Committee Comments Member Butler reminded members they can invite others and encourage the public to attend.

7. Upcoming Term Expirations Phyllis Hines - August 31, 2019 Biswadev Roy - August 31, 2019 Rupali Tayal - August 31, 2019 Dhruv Sakalley - August 31, 2019 John Wall - August 31, 2019

8. Upcoming Events

• Next Meeting – Wednesday, September 11, 2019, 6:00 p.m., Fire Station 1

9. Adjournment Motion: Member Butler Second: Member Richardson Vote: Unanimous Chair Gammon adjourned the meeting at 7:29 pm.

______________________ _______________________ Chair Erin L. Hudson, Secretary

______________________ _______________________ Date Date

Audit Wrap‐upTown of Morrisville

April Adams, CPAPartner

October 22, 2019

Agenda

Role of External Auditor

Audit Results

Internal Controls

Significant Audit Areas

Financial Results

Summary

Questions and Comments

3

Role of the External Auditor

Actions

Plan & Perform Procedures

Obtain Reasonable Assurance

Free from material misstatement

Results

Express Opinion on:‐ Financial Statements‐ Internal Control over Financial Reporting‐ Federal compliance

Required Communications

Policy Changes

Estimates

Journal Entries

4

Key HighlightsResults

Opinions

Unmodified Opinion –Financial Statements

Unmodified Opinion –Internal Control over Financial Reporting

Unmodified Opinions –Federal and State 

Single Audit

Internal Controls

No Significant Deficiencies or 

Material Weaknesses

Single Audit

Major Programs:Highway Planning 

(Federal)

No Findings

Required Communications

No Significant Policy Changes

Estimates: Allowance, Depreciation, Investments, 

Accrued Compensation, Donated Assets, OPEB, LGERS, LEOSSA, & 

Deferred inflows/outflows

No Journal Entries

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Internal Controls

Identify Significant Transaction 

Cycles

Information Technology Controls

Single AuditTesting of 

Internal ControlJournal Entries

Obtain Understanding

Walkthrough key controls

Obtain               “Data Dump”

Mine for Unusual Transactions

IT Questionnaire

General Computer Controls

Administrative Controls

Monitoring Reports

6

Significant Audit Areas

Payroll and Debt

Receivables and Revenues Single Audit

Tested Substantively:

Other Items

Confirmation Analytics Test of Details

Financial ResultsGeneral Fund Revenues (thousands)

7 2018 Total: $31,4792019 Total: $33,034

$19,466 

$1,926 

$9,795 

$839  $1,008

$18,243 

$857 

$9,471 

$1,079  $829 

Taxes

Permits and Fees

Intergovernmental Services

Sales for Services

Miscellaneous

Financial ResultsGeneral Fund Expenses (thousands) 

82018 Total: $26,8852019 Total: $27,306

$9,161 

$4,962 

$2,130 

$1,643 

$1,609 

$4,985 

$2,816 

$8,633 

$5,382 $2,187 

$1,909 

$1,890 

$4,524 

$2,330 Public Safety

Public Works

Debt Services

Capital Outlay

Cultural and Recreation

General Government

Development Services

Financial ResultsGeneral Fund – Fund Balance

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Town Policy is to maintain a minimum of 25% of expenditures in unassigned fund balance in the General Fund

Unassigned Fund Balance as a % of General Fund 

Expenditures as of June 30:

2019:   40.73%

2018:  38.11%

Financial ResultsCash and Investments (thousands) 

10 2018 Total: $47,3132019 Total: $62,011

$11,945 

$50,066 

$13,218 

$34,094 

Cash Accounts

NC Capital Management

Financial ResultsGovernmental Capital Assets (thousands)

11 2018 Total: $142,7462019 Total: $156,228

$2,327  $1,159 

$41,741 

$17,661 

$9,884 $11,466 

$71,990

$1,974  $1,443 

$40,015 

$18,345 

$10,116 

$3,796 

$67,057 

Vehicles

Equipment

Land

CIP

Buildings

Other Improvements

Infrastructure

Financial ResultsGovernmental Long Term Debt (thousands)

12 2018 Total: $27,8832019 Total: $43,608

$988 

$28,598

$1,261 

$3,878 

$4,056 

$4,827 

$936 

$18,085 

$1,164 

$1,192 

$2,552 

$3,954 

Compensated Absences

Bonds

LEOSA

Installment Notes

Net Pension Obligation

Other Post Employment Benefits

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Summary

Clean Opinions

No Journal Entries

Good Internal Controls

No Significant

Deficiencies Identified

Full Cooperation

with Management

Questions & Comments?April Adams, CPAPartneraadams@cbh.com919.782.1040

Changes in Fund Balance Summary - General Fund(consolidates Municipal Service District & Capital Reserve Funds)

2018 2019Increase / Decrease

Total Fund Balance (Includes Capital Reserves) 30,079,849$ 34,620,352$ $ 4,540,503

Non-Spendable: Prepaids 13,990 9,742 (4,248)

Restricted: Stabilization by State Statute 5,096,066 5,359,004 262,938 Subsequent Year's Expenditures (PO Rollover)* 2,154,895 3,958,566 1,803,671 Stormwater - - - Streets 2,191,782 3,042,283 850,501 Police Operations & Activities 5,335 28,401 23,066

Committed: General Government Capital (CRF) 1,807,952 6,639,957 4,832,005 LEO Pension Obligation 373,598 383,218 9,620

OPEB Liability** 2,804,999 3,128,971 323,972

Assigned:Fire operations and activities 2,487 2,487 - Subsequent Year's Fund Balance Appropriation 5,395,000 945,000 (4,450,000)

(Transfer to Reserves)

Unassigned Fund Balance 10,233,745$ 11,122,723$ $ 888,978

General Fund Expenditures 26,854,577$ 27,306,085$ $ 451,508

Unassigned Fund Balance % of Expenditures 38.11% 40.73%

Source Notes:Exhibit 3 & Exhibit 4

FUND BALANCE ANALYSIS REPORTAs of June 30, 2019

*PO Rollover is included as part of the stabilization by state statute calculation and is shown separately for comparison**Implementation of GASB 75 regarding new disclosure for OPEB Liability

Historical Comparison - General Fund(consolidates Municipal Service District & Capital Reserve Fund)

2015 2016 2017 2,018 2019Total Fund Balance (Includes Capital Reserves) 21,252,176$ 25,667,275$ 27,717,701$ 30,079,849$ 34,620,352$

Non-Spendable: Prepaids 13,326 40,263 8,886 13,990 9,742

Restricted: Stabilization by State Statute 3,690,527 4,437,404 4,675,775 5,096,066 5,359,004 Subsequent Year's Expenditures (PO Rollover)* 1,106,219 1,107,166 1,087,248 2,154,895 3,958,566 Stormwater 542,679 - - - - Streets 978,545 1,563,938 1,599,108 2,191,782 3,042,283 Police Operations & Activities - 24,918 22,678 5,335 28,401

6,317,970 7,133,426 7,384,809 9,448,078 12,388,254

Committed: General Government Capital 747,441 602,704 1,902,254 1,807,952 6,639,957 LEO Pension Obligation - 328,296 344,103 373,598 383,218

OPEB Liability** - - - 2,804,999 3,128,971 747,441 931,000 2,246,357 4,986,549 10,152,146

Assigned: Fire operations and activities - - - 2,487 2,487 Subsequent Year's Fund Balance Appropriation - 2,305,000 2,823,000 5,395,000 945,000

- 2,305,000 2,823,000 5,397,487 947,487

Unassigned Fund Balance 14,173,439$ 15,257,586$ 15,254,649$ 10,233,745$ 11,122,723$

General Fund Expenditures 24,564,304$ 23,121,319$ 25,741,841$ 26,854,577$ 27,306,085$

Unassigned Fund Balance % of Expenditures 57.70% 65.99% 59.26% 38.11% 40.73%

Source Notes:Exhibit 3 & Exhibit 4 Schedule 1

Changes in Fund Balance DetailBudget to Actual - General Fund

2019 Final Budget

2019 Actual

Amount

Variance Positive

(Negative)

Revenues 31,883,875$ 32,842,529$ $ 958,654

Expenditures 33,452,522 26,836,077 (6,616,445)

Transfers In (Out) (6,042,800) (6,042,800) - Other Financings sources (uses) Appropriated Fund Balance 7,611,447$ -$ $ (7,611,447)

Excess of Revenue & Other Sources over Expenditures & Other Uses -$ (36,348)$ $ (36,348)

Source Notes: Schedule 3

Budget to Actual - Fire Apparatus Capital Reserve Fund

2019 Final Budget

2019 Actual

Amount

Variance Positive

(Negative)Revenues

Investment earnings -$ 13,411$ $ 13,411

Expenditures - - -

Other financing sources (uses) Transfers In (Out) General Fund 400,000 400,000 -

Appropriated Fund Balance -$ -$ $ -

Net change in fund balance 400,000$ 413,411$ $ 13,411

Fund beginning balance: 494,149$

Fund ending balance 907,560$

FY2020 Budget Appropriation Transfer In 350,000$

FY2020 Budget Appropriation Transfer (Out) (1,250,000)Fund Balance as of 7/1/2019 7,560$ Source Notes: Schedule 4

Changes in Fund Balance Detail - continuedBudget to Actual - Roadway and Transportation Capital Reserve Fund

2019 Final Budget

2019 Actual

Amount

Variance Positive

(Negative)Revenues -$ 21,469$ $ 21,469

Expenditures - - -

Transfers In (Out) General Fund 475,000 475,000 - Appropriated Fund Balance (475,000)$ -$ $ 475,000

Net change in fund balance -$ 496,469$ $ 496,469

Fund beginning balance: 909,540$

Fund ending balance: 1,406,009$

FY2020 Budget Appropriation Equivalent One Cent on Tax Rate 490,000$ FY2020 Budget Appropriation Transfer (Out) (1,350,000)Fund Balance as of 7/1/2019 546,009$ Source Notes: Schedule 5

Budget to Actual - CIP Capital Reserve Fund

2019 Final Budget

2019 Actual

Amount

Variance Positive

(Negative)Revenues -$ 52,125$ $ 52,125

Expenditures - - -

Transfers In (Out) General fund 3,870,000 3,870,000 - Appropriated Fund Balance (3,870,000)$ -$ $ 3,870,000

Net change in fund balance -$ 3,922,125$ $ 3,922,125

Fund beginning balance: 404,263$

Fund ending balance: 4,326,388$

FY2020 Budget Appropriation Transfer In 200,000$ FY2020 Budget Appropriation Transfer (Out) (3,550,000)Fund Balance as of 7/1/2019 976,388$ Source Notes: Schedule 6 & FY20 Budget Ordinance

Changes in Fund Balance Detail - continuedBudget to Actual - Municipal Service District

2019 Final Budget

2019 Actual

Amount

Variance Positive

(Negative)Revenues 98,800$ 96,317$ $ (2,483)

Investment earnings -$ 8,537$ $ 8,537 Total revenue 98,800$ 104,854$ 6,054$

ExpendituresContract and professional services 1,035 2,780 (1,745)Capital outlay 471,965 467,228 4,737

Total expenditures 473,000 470,008 2,992

Revenus over(under) expenditures (374,200) (365,154) 9,046

Transfers In (Out) - General Fund 110,000 110,000 - Appropriated Fund Balance 264,200$ -$ $ (264,200)

Net change in fund balance 374,200$ 110,000$ $ (255,154)

Fund beginning balance: 424,564$

Fund ending balance: 169,410$

FY2020 Anticipated Ad Valorem 100,700$ FY2020 Budget Appropriation Transfer In 110,000Fund Balance as of 7/1/2019 380,110$ Source Notes: Schedule 7

General Fund DetailFY 2019 Revenues

Budget Actual

Variance Positive

(Negative)Ad Valorem Taxes 18,510,000$ 18,841,516$ $ 331,516 Other Taxes and Licenses 584,400 528,334 (56,066)Unrestricted Intergovernmental 9,123,300 9,227,535 104,235 Restricted Intergovernmental 580,000 567,224 (12,776)Permits and Fees 1,164,800 1,925,719 760,919 Sales and Services 1,186,400 839,002 (347,398)Investment Earnings 325,803 458,167 132,364 All Other Revenue 409,172 455,032 45,860 Total 31,883,875$ 32,842,529$ $ 958,654

FY 2019 Expenditures

Budget Actual

Variance Positive

(Negative)General Government 7,044,581$ 5,908,782$ $ 1,135,799 Development Services 3,318,958 2,845,411 $ 473,547 Public Safety 11,535,718 9,289,335 $ 2,246,383 Public Works and Fleet 7,493,380 5,023,369 $ 2,470,011 Parks & Recreation 1,929,285 1,638,766 $ 290,519 Debt Service 2,130,600 2,130,414 $ 186 Total 33,452,522$ 26,836,077$ $ 6,616,445

FY 2019 General Fund Outstanding Expenditure Detail:PO Rollover Breakdown Total Street Repaving $ 1,147,943 Aerial Fire Truck 1,060,953 Vehicle Replacements 417,580 Generators 229,192 ERP System Replacement 188,785 Signage 133,685 Space Study 89,768 Land Use Plan Update 88,771 Cary 911 Transition 79,518 Affordable Housing Plan 71,100 Other Professional Services Items 176,950 Miscellaneous 274,321

3,958,566$ 3,958,566$ Personnel Cost (Lapse Salaries/Healthcare Savings) 1,760,470 Other Delayed Spending or Savings -$ Basic Operational Budget to Actual Savings/Variances 897,409

Budget to Actual Variance 6,616,445$ Source Notes:Schedule 3FY19 PO Rollover ReportGeneral Fund information only - does not include consolidated sub-general funds (MSD, Capital Reserve Funds)

Other Fund Balance AnalysisNon-General Fund

2018 2019Increase / Decrease

Total Fund Balance (Non-General Fund) 15,415,964$ 23,780,713$ $ 8,364,749

Street Improvements (McCrimmon Parkway) 4,730,316 5,506,383 776,067 Parkland Payment-in-Lieu 3,255,085 4,817,105 1,562,020 Church Street Park 306,504 429,169 122,665 Crabtree Hatcher Creek Greenway 755,907 575,484 (180,423)Morrisville-Carpenter Road 878,415 3,496,111 2,617,696 Northwest Park 11,097 11,297 200 Public Works Renovation - 1,313,871 1,313,871 Town Center Core / Carolina Street Extension 3,863,697 546,227 (3,317,470)Historic Christian Church Parking Lot Expansion 408,123 403,080 (5,043)MAFC Renovation (498,192) 4,869,797 5,367,989 Shiloh Sewer 1,258,728 1,266,160 7,432 Sidewalk and Pedestrian Ehancement 446,284 546,029 99,745 Healthy Food Hub - 40,883 40,883

Source Notes: Schedule 8, 9

Parkland Payment in Lieu Fundas of June 30, 2019Total Collections (since inception) $7,384,055

Prior Years 2019 Total to DateAvailable Parkland Payment in Lieu 5,325,436$ 2,058,619$ 7,384,055$ Investment Earnings 130,703 73,401 204,104

Total Revenues 5,456,139 2,132,020 7,588,159

Project Expenditures

Indian Creek (1,041,860) - (1,041,860) Shiloh Greenway (1,110,712) - (1,110,712) NC54 Multi Use Path (249,040) - (249,040) Northwest Park (1,704,973) - (1,704,973) Hatcher Creek Greenway (538,196) - (538,196) Church Street Park (1,083,047) - (1,083,047)

Transfer In/(Out) from General Fund 1,842,517 (570,000) 1,272,517 Transfer In from Capital Reserve 1,684,257 - 1,684,257

Total Other Financing Uses (2,201,054) (570,000) (2,771,054)

Net Change in Fund Balance 3,255,085$ 1,562,020$ 4,817,105$

Beginning balance 3,255,085$

Ending balance 4,817,105$

FY2020 Budget Appropriation Transfer (Out) (1,824,900)$ Fund Balance at July 1, 2019 2,992,205$

Source Notes: Schedule 11

TOWN OF MORRISVILLE * 100 TOWN HALL DRIVE * MORRISVILLE, NC 27560

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PROPOSED 2020 MEETING SCHEDULE OF THE PERFORMANCE MEASURES ADVISORY COMMITTEE

It is proposed that the Performance Measures Advisory Committee continue meeting the second Wednesday of odd numbered months (January, March, May, July, September, and November).

The proposed schedule is outlined below:

January 8March 11May 13July 8September 9November 11

*Staff has vetted the proposed schedule, and at this time, there are no holiday observance conflicts.