The FY 2010 recommended operating and capital budgets, as modified by the changes identified below, are hereby presented for adoption by the Cary Town Council at its regularly scheduled meeting on June 25, 2009.

Operating Budget – General Fund

1. $242,000 reduction in disposable rebate revenue - During budget development the Town of Cary was notified that approximately $372,455 in revenue related to the Wake County landfill operations would be forthcoming related to FY2010 operations. In late May, the Wake County Environmental Services Director notified us that anticipated rebate levels would be reduced compared to previous projections because of financial requirements associated with landfill post closure funding contingencies. Anticipating this level of change for FY2010 rebate revenue, this revenue estimate has been reduced by $242,000 to $130,455.

2. $20,000 increase in Technology Services Department contracted services for lease costs - While researching various options regarding security system requirements in the police and technology services building late this spring, it was determined that the most cost effective long term solution would be to utilize a technology backbone of hardware and software that would ultimately allow the integration of the Town’s building security systems, surveillance cameras, climate control systems, and lighting systems. This type of system enables the control of any of these systems remotely from anywhere an internet connection is available. The Facility Management Division alone will benefit a great deal since they will not be required to have a staff member at after business hour meetings to unlock and lock doors. They will be able to pre-program the unlocking and locking or if the ending time was unknown a simple phone call can lock the doors. This hardware and software also qualifies for one component for LEED Certification for environmental benefits.

3. $35,654 reduction in Public Works Administration Division temporary salaries - Public Works has utilized an intern position to help with data tracking and analysis needs over the last several years. In early FY 2009, the person in the intern position was hired to fill a vacant permanent position and the intern position was left vacant with the plan to recruit another intern in the spring of 2009. With the current fiscal environment, the decision has been made to hold this position vacant for the remainder of FY 2009 and FY 2010. This reduction represents the cost savings associated with not having this temporary labor in place during FY2010.

4. $20,000 increase in Parks, Recreation, and Cultural Resources Athletics Division contracted services - additional funding for marketing activities associated with the Championship City designation and related events is required according to the contract with the National Collegiate Athletics Association (NCAA). This particular aspect of the program was not confirmed until late this spring which was after the recommended budget had been compiled. It is likely that this additional investment will yield incremental increases in event related revenues.

5. $1,600 increase in Parks, Recreation, and Cultural Resources Athletics Division contracted services - four portable modems are needed to provide WIFI access for the media NCAA Championship City events per the agreed upon contract. The annual cost is $2,400, however, the NCAA will reimburse the Town for the equivalent of four month’s worth of the cost for the four NCAA Championship City events planned in FY 2010, resulting in a net cost to the town of $1,600. Technology Services and the PRCR Department are developing a process that will maximize use of the portable modems throughout the remainder of the year for other PRCR events as well as other Town sponsored events.

6. $2,274 decrease in the Town Council dues and memberships - the recommended budget included an estimated amount for the Town’s membership in the Triangle J Council of Government. After the budget had been prepared, we were notified that the actual amount that will be due for FY 2010 will be $2,274 less, bringing the total dues down to $43,197.

7. $53,840 decrease in Inspections and Permits Department personnel costs - these savings are a result of the Inspections and Permits Department reorganization approved by Council via staff report IP09-007 at the regular Council meeting on May 14, 2009. The approved changes to the organizational structure include the creation of one new position, upgrades for several existing positions, the elimination of two positions and the downgrading of one other position.

8. $285,689 change in the Public Works and Utilities Operations Division - a departmental reorganization resulted in four positions (the Inflow/Infiltration team) moving from Utility Systems Management in the utility fund to the Operations Division in the general fund. While the Operations Division in the general fund increased by $285,689, there is no net change to the general fund or utility fund as the utility fund reimbursement to general fund was increased an equal amount.

9. $230,000 change in the Economic Development Strategic Fund - the recommended budget reflected the assumption that pending incentive disbursements would occur in FY 2009. Since we are closer to the end of FY 2009 now, it is clear that these disbursements will not occur until at least FY 2010. To reflect this change in timing, $230,000 in previously approved and funded incentive disbursements have been moved to FY 2010. There is no increased funding required, as the recognition of the associated matching revenues from the North Carolina Department of Revenue ($130,000) and rollover funding from the economic development strategic fund fund balance ($100,000) offset the change in appropriation timing.

Operating Budget – Utility Fund

10. $285,689 change in the Public Works and Utilities Utility Systems Management Division - a departmental reorganization resulted in four positions (the Inflow/Infiltration team) moving from Utility Systems Management in the utility fund to the Operations Division in the general fund. While the Operations Division in the utility fund decreased by $285,689, there is no net change to the utility fund or the general fund as the utility fund reimbursement to general fund was increased an equal amount.

Capital Budget – General

11. $2,620,000 decrease in the transportation capital improvement projects for FY 2010 - Town Council decided during the June 9, 2009 budget worksession to delay funding for the South Harrison Avenue Extension project for one fiscal year. The capital improvements plan has been adjusted to include the first year funding need for this project in FY 2011. This reduction returns $2,620,000 in transportation development fee funds to general capital reserve fund balance.

Capital Budget - Utility

No changes to the recommended FY 2010 utility capital improvements budget.