Work Session Minutes of the Town of Cary , North Carolina
Subject:  Fiscal Year 2005 Budget
Town Hall Building A front conference room
316 N. Academy Street , Cary
June 21, 2004
5:30 p.m.
Web Site:  www.townofcary.org  

Present: Mayor Ernie McAlister, Council Members Marla Dorrel, Mike Joyce, and Jennifer Robinson

Absent: Mayor Pro Tem Jack Smith, Council Members Julie Robison and Nels Roseland

Mayor McAlister called the work session to order at 5:30 p.m.

Action: Ms. Dorrel made a motion to recess the Town Council budget work session until 6:30 p.m. Mrs. Robinson provided the second; unanimous approval was granted.

Mayor McAlister reconvened the work session at 6:30 p.m.

Present: Mayor Ernie McAlister, Mayor Pro Tem Jack Smith, Council Members Marla Dorrel, Mike Joyce, Jennifer Robinson, Julie Robison and Nels Roseland

Action: Mr. Roseland made a motion to reschedule the July 8, 2004 Town Council meeting and all items on that agenda to July 15, 2004 at 6:30 p.m. in the Temporary Council Chambers located in the Herb Young Community Center. Mrs. Robison provided the second; unanimous approval was granted.

Mayor McAlister stated that the purpose of the work session is to discuss parts of the budget, specifically the elementary School Resource Officers (SROs) and water and utility rates. He commended Town staff for the great job they have done in delivering a good budget. 

Mr. Coleman stated questions that were raised revolved around the impact of SROs in schools on juvenile crime, the effect SROs have on security and safety in those schools and, a more subjective judgment, the impact SRO’s have on quality of life.

1.         Elementary School Resource Officers (SROs)

The costs necessary to add Elementary SROs in the fiscal year 2005 budget would be $372,000, which includes four elementary SROs, plus a new sergeant position which is necessary due to the resulting span of control and coverage issues in the schools.

Police Chief Windy Hunter provided comments, which are below:

a.         Overview

The program began as a proactive approach to crime prevention but was planned to have limited school contact. Results of the program are intangible and difficult to measure quantitatively. On the one hand, juvenile crime rates cannot tell you whether the program is being successful or not as most reported juvenile crimes involve older juveniles in the 13-15 year old range. On the other hand, it is difficult to know what is actually prevented.

As to the question of security at the elementary schools, on average, an Elementary SRO spends one day a week at any of their assigned schools. Does having an officer at an elementary school one day a week actually reduce the risk of criminal activity there? Perhaps, if taken in the context that an officer’s presence anywhere in the community is likely to reduce the risk of crime while the officer is physically present. And, we have quite a demand for more officers to be out in the community at large.

Due to increasing school construction, the program continues to evolve and require more manpower and resources to remain viable.  This is seen as only increasing in the future which translates to increasing costs to maintain the program.

Whenever funding becomes tight, the Police Department is always forced to review our total resource availability and make the decisions necessary to maintain essential services.

This year, staffing in the 9-1-1 Emergency Communications Center was a top priority. Other needs in field operations and criminal investigations also demanded attention. Two 9th Grade Centers were also scheduled to come on line and would require their own SRO’s.

Obviously, the funds necessary to meet all these needs did not appear to be available. Therefore, the department had to prioritize and assess those needs and make the recommendations we thought would help us accomplish as many of the needed priorities as possible. The re-deployment of the Elementary SRO’s allowed us to meet all of our priority needs this year if the Manager would approve the addition of the needed Communications staff, which he did.

This recommendation allowed us to concentrate on the “got to haves” as opposed to the “nice to haves” which is how I would describe the Elementary SRO program. This description in no way diminishes the outstanding work that our officers assigned to this duty have performed this past year. Certainly, from the public’s sentiment, the public, school staffs and the kids, all have quickly become impressed with the program which is a very real compliment to our officers assigned to this part of our overall SRO program.

The issue the Police Department faces is balancing the “got to haves” with the “nice to haves” and, as you may recall, throughout this year’s budget process and also at the town retreat earlier this year, the message was for all department heads to focus on the “got to haves” as opposed to the “nice to haves.” I believe we have certainly met that mandate.

Another concern in this debate is how maintaining this particular program into the future may impact other department needs as they arise. If the department will not have the flexibility to reassign its resources as needed to meet demands, what guarantee will there be that maintaining this program will not affect other departmental funding requests in the future?

We can certainly maintain this program, if that is council’s wish, however, I can tell you that this will likely be the last time I intend to revisit this issue, one way or the other. To do so again would be grossly unfair to the schools, our officers, and to you. We simply cannot allow this program to be subject to funding variances from year to year.  We need to have this issue put to rest one way or the other this year.

b.         Council Discussion and Resolution

Mayor McAlister asked for clarification purposes whether there were plans to make any changes with the middle and high schools SROs, and whether staff is prepared to meet future needs for the current schools and new schools coming on line.

Mr. Hunter responded yes. He added if Council decides to keep the elementary SRO program in the budget it needs to be fully funded.

Mr. Roseland asked why the program would be cut if, according to crime petition numbers, juvenile crime is trending upward, and what plan the Police Department has to make the crime trend stabilize or go back down.

Mr. Hunter replied that most of the cases filed don’t end up with petitions, and the petitions are much less now than in the mid-1990s. He said that some of the numbers reflect repeat offenders, with most of the petitions representing the 13-15 year old age bracket; only one petition filed was within the 5-12 year old age bracket. He said that Cary is in good shape for juvenile crime prevention when compared across the state, even though there is always room for improvement.

Mrs. Robison asked how many positions needed to be added for the SROs and the supervisor, and how the Town might pay for the program if it were continued.

Mr. Fogleman responded that there are a total of five positions needed to reinstitute and continue the program, with a total cost of $372,000 for all five. He said the money would come from the fund balance.

Mr. Joyce asked if the Wake Count Public Schools contribute anything toward the SRO program, and whether there are SROs in any of the private schools.

Mr. Fogelman replied that they contribute about $114,000 toward the high school SROs, but they do not pay for anything at the middle or elementary school levels. Chief Hunter added that there are no SROs in private schools.

Mayor Pro Tem Smith said the bigger issue is that the public service is being provided with the Town’s taxpayers’ money when principals and assistant principals do not see elementary SROs as an absolute need, and there isn’t any data to support SROs at the elementary level. He said that he trusts the chief’s judgment in reassigning those officers.

Mrs. Robinson said that taxpayers’ dollars need to be used in a way that is equitable. She said a lot of Cary kids attend schools outside of Cary where they do not have the SRO program.

Mr. Roseland said that Cary is the safest city in North Carolina and the fifth safest in the United States because of the investment in proactive measures to discourage crime before it happens. He is concerned about the Town loosing the safest city in North Carolina designation, and about juvenile crime trending upward. He suggested making the SRO positions effective in January, instead of July, which would require half the amount of funds and still allow for three positions.

Mr. Coleman stated that the SRO program would not have a total impact on funds this year, however, there would continue to be ongoing expenses to the program, in addition to the expense this year, because elementary schools are being continually added. He said if the program is continued then the Town needs to commit to it for the long term, requiring more resources in an area in which the police chief doesn’t see a lot of impact for the expenditure of those dollars.

Ms. Dorrel said that she doesn’t expect funding for the program to come from the existing police department budget, stating that it is a matter of how the program fits into the entire budget.

Mayor McAlister asked Ms. Dorrel if she had any thoughts on where the money can be found in the budget.

Ms. Dorrel responded that she found about $80,000, however, the way the budget is presented it is difficult to pick out specific programs because you can’t go through the line items. She stated that she was looking to receive recommendations or suggestions as to what changes could be made across the budget to accommodate the SROs.

Mrs. Robison said the impact on the schools in Cary has never been evaluated. She would like to see the program continued for another year to allow time for a thorough assessment to determine the need of SROs in the schools, the number of students the program has touched, exactly what they’ve done, and how the program has benefited the users.

Chief Hunter said the program would have to extend over a long period of time in order to get a good assessment and trends.

Mr. Coleman said that identifying specific things that can be changed in the budget is a task that would not be worthwhile. He said that if the council wants to fund the program staff would look at reducing those items that would not have an impact on the quality of services provided, response times, ability to meet regulatory requirements, and ability to meet the other requirements of the ordinances, and then they would look at issues in revenue. Mr. Coleman said staff could evaluate the budget and with small items get closer to the numbers it takes to fund the SRO program, but it would depend on revenues coming in above estimates, and if those numbers were not realized the money could be taken from the fund balance, however, for succeeding years it would have to be funded through the general fund or through tax revenues or sales tax. He said that the real issue is the impact on future budgets.

ACTION: Mr. Joyce made a motion to keep the funding in the budget for the high school and middle school SROs, but not the elementary schools. Mayor Pro Tem Smith provided the second.

Mr. Roseland said he is going to vote against the motion. He said more police officers are needed, along with a gang unit and a computer crime unit to ensure we keep the rating for the safest city in the southeast. He said the numbers don’t make sense to him and there are other concerns outside of SROs that need to be addressed. He said the Town should be expanding police resources, not reducing them.

ACTION: Vote was called for and Mayor McAlister, Mayor Pro Tem Smith, Mrs. Robinson and Mr. Joyce voted “aye.” Ms. Dorrel, Mrs. Robison and Mr. Roseland voted “no.” The motion was approved by majority vote.

______________________

1.         Utility Rate

a.         Overview

A copy of the utility rate overview information is attached to and incorporated in these minutes as Exhibit A.

Mr. Coleman said that staff has provided data and information on the analysis of utility costs, utility revenue projects and various ways of looking at the rates. He provided a summary of the Town’s status and issues moving forward.

Mr. Coleman said that the utility rates structure was created to equitably distribute the costs of the system among the different class of users, allow the Town to create policies for incentives and disincentives, and provide for an irrigation rate that would provide a disincentive for excessive use, and whatever revenue captured in that rate allow it to subsidize the lowest rate. He said that the rate model determines the base cost for per thousand gallons of water, from that base cost it calculates capital expenditures to add the additional capacity to meet the irrigation demand and assesses those costs to the irrigation part of the model; the revenues generating the irrigation part of the rate subsidize tier one.

Mr. Coleman stated that staff makes a concerted effort every year to control costs. He said what creates the perception that more of the increase is being placed on the lower tiers is that he Town is trying to adjust for the subsidies granted in the past. He said staff has reviewed revenues and costs, and on the cost and expense issues about 3.8 percent of the cost increases are a result of the Town needing additional capacity and buying it from Durham , about 5 percent is a result of additional debt, and only about 1.8 percent is an increase in operational expenses. He said that in looking at kinds of increases and the areas for debt and additional capacity, the Town’s opportunities for reducing expenses and costs in the utility budget are limited to personnel, equipment supplies and materials.

Mr. Coleman said open space funding has limited impact on the rate increases and it would have very limited impact on the rate increase to remove that as discretionary funding.

Mr. Coleman said that some marginal revenue streams have been identified that may create a one percent decrease in the overall rate increase and staff is recommending that be done. He said that the primary drivers of revenue in the utility system is water demand, and the primary determinate of demand is weather and customer growth. He said the Town’s ability to affect consumption and demand is very limited unless water conservation is eliminated, which would hurt the Town in the long run by increasing peak to the point where capacity has to be added. He said to cut operations costs to the extent it would take to actually make a difference in the rates would significantly impair the ability to provide good service, maintain the system and meet regulatory requirements.

Mr. Coleman said that the bottom line is that there is not a significant opportunity to decrease expenses, and the ability to increase revenues is very limited.

b.         Council Discussion and Resolution

Mr. Roseland asked that the Council be open in the future to having a separate rate for larger multi-family developments, possibly looking at a separate tier.

Mr. Fogleman said following the budget adoption process staff will do a comparison of other cities’ and towns’ utility and sewer rates.

Mr. Joyce asked if staff was looking to conserve 6 percent this year. Karen Mills from the Finance Department replied yes, considering that the water conservation program continues to affect total consumption at 1 percent per year.

Mr. Joyce asked for an update on the status of the voluntary contribution program.

Ms. Mills said that since presenting the proposal to the Council to move forward, staff has found an agency, Christian Community in Action, willing to administer the program for the Town. She said that the program and the contract have to be more carefully defined by staff and Christian Community in Action.

ACTION: Ms. Dorrel made a motion to accept staff recommendations to increase the off setting revenues and reduce the rates accordingly. Mr. Roseland provided seconded.

Mrs. Robinson asked which off setting revenues Ms. Dorrel included in her motion.

Ms. Dorrel said the motion would increase offsetting revenues and the fats, oils, and grease for food service establishments (FOG) program, which changes the base rate and the sewer rate.

ACTION: Vote was called for on the motion and unanimous approval was granted.

Mayor McAlister asked if there were any concerns regarding staff recommendations on the utility rates

Mr. Joyce asked what expenditures are being made this year for reclaimed water.

Kim Fisher, of the Public Works and Utility Department, said that there is about $900,000 for a new project in the northwest area.

Mayor Pro Tem Smith asked the Council to look at the best way to address open space needs for the future as they look at emerging pressures.

Mr. Joyce asked how much funding is committed for open space and whether it is better to use utility funds for open space.

Mary Henderson of the Parks, Recreation and Cultural Resources Department responded that there is approximately $243,000. Mr. Coleman added that there are other purposes for open space, such as farm preservation and protecting wildlife habitat, and that open space purchases have a positive impact on water quality and are appropriate for the utility fund.

Mrs. Robison asked for an explanation on the denial for one position for utility maintenance worker and other related costs, and items for the north and south plants.

Mr. Fisher replied that the denial was for a temporary position. He said in reviewing the activities submitted in the budget there was a redundant activity that was included in another budget. Mr. Fogleman added that the equipment rental was voluntarily reduced after the budget submittal. He said that the south plant items related to the possibility of broader requirements with the biosolids dryer. He said it was determined to evaluate that purchase and operations once the facility was up and running.

ACTION: Ms. Dorrel made a motion to approve at this time, subject to official approval on June 24th, the water, sewer and base rates as presented by the staff, including the increase in the offsetting revenues and the FOG program. Mr. Roseland provided the second; unanimous approval was granted.

3.         Road Projects

Mr. Coleman said at the last budget work session Council had questions and requested information on road projects, in particular, in and around crossroads, and Tim Bailey of the Engineering Department prepared a summary.

Mr. Bailey said that the Town has spent a lot of money on the crossroads area, there are a lot of active projects that will begin construction very soon. He said that there is also one undesignated project in the budget which should take care of some short term needs as soon as a decision is made on the southeast gateway plan and determining the highest priority. He said that some funding is available to deal with any problems not taken care of with the already identified projects.

Mr. Coleman said the that even though funding for road projects this year is limited, there are still other projects underway and others that are going to be funded in the future, so the Town is not pulling back from the commitment to roads, it is taking an opportunity to catch up with projects needing to be completed and looking at priorities for the future.

A copy of the Map of major road projects currently underway is attached to and incorporated in these minutes as Exhibit B.

A list of major road projects currently underway and related funding amounts is attached to and incorporated in these minutes as Exhibit C.

a.         List of Crossroads area projects currently underway and their status

Crossroads Area Traffic Improvements

Background

Cary has been studying traffic issues in the Crossroads area since the opening of the Crossroads shopping center in the early 90s. The shopping center was an alternate development after the plan to build a regional mall on the site failed. Traffic plan for the mall drew more regional traffic from all of Wake County . A shopping center serves a small area and attacks a larger percentage of the traffic from the West and South.

Traffic flow is unusual in this area. All other traffic patterns in Cary have a P.M. weekday peak. Walnut Street has a Saturday afternoon peak. Weekday noon periods are also nearly the same volumes as Saturday. During the last holiday shopping season staff contracted with consultants to perform traffic counts. Volumes on Walnut Street are 50,000 vehicles per day. This is a very high volume for this type of street and among the highest in Wake County . As a comparison I-40 near the airport had a volume of 126,000 in 2001 for a controlled access eight lane freeway. Even with the high volume on Walnut Street , annual growth in volumes is approximately one percent. In the mid 90s annual growth in volume approached twenty percent. As more home improvement stores and shopping centers are built in surrounding communities of Holly Springs and Apex, traffic volumes on Walnut Street have remained fairly constant in recent years.

Many projects have been funded by the Town in addition to the improvements provided by the developer. The information below attempts to summarize past efforts and future plans. Funds committed since 1996 total $56.5 million ($31.5 M without NCDOT’s project) in the Crossroads area. Many new projects will be completed in the short term. Staff’s approach in preparing the budget for FY 2005 has been consistent for the Crossroads area with other areas of Town. Funding for new projects has been reduced in the 10-year plan but not eliminated for Crossroads. Many active projects should begin next calendar year and have significant benefit to traffic flow when completed. One future project is partially funded and additional funding is recommended in FY 2007 to complete the project allowing time for design, permitting and right of way acquisition.

Detailed project information is listed below.

Completed Projects

-          Walnut Street Widening and Realignment (from Dillard to Holly Springs Road )

o        This project consisted of a six lane road moving the intersection of Walnut/Tryon away from the original location to separate traffic using Jones Franklin Road .

o        Cost = $7.4M

-          Dillard Drive Extension ( from Walnut Street to Piney Plains Road )

o        This project provided a new five lane connection serving motorists from the South and West.

o        Cost = $ 1.2M

-          Traffic Signal Coordination Project on Walnut Street

o        Traffic signals along Walnut Street were linked using phone lines and new controllers. New timing plans were developed based on traffic conditions and were then adjusted during field observation during weekend traffic.

o        Cost = $100,000

-          Piney Plains Road Median Closure

o        Piney Plains had full access to Walnut Street . Accidents were occurring and NCDOT had a traffic signal on the high priority list for spot safety funds. The intersection was already causing traffic congestion problems on Walnut during peak traffic periods. A signal in close proximity to the ramp signal would have caused significant congestion. Cary closed the median break instead increasing the storage length for the Meeting Street left turn lane and eliminating the need for a signal addition.

o        Cost = $30,000

Projects Underway

-          Tryon Road Widening Phase I (from Cambell Road to Piney Plains Road )

o        Widening to four lane median divided will assist access to the Crossroads area. Currently congestion occurs because of failing level of service at Macedonia Road , Piney Plains Road and Cary Parkway .

o        Status – Cary will bid this project in July 2004

o        Cost = $ 4.5M

-          Piney Plains Road Widening ( from new Dillard Drive to Tryon Road )

o        Widening to five lanes to improve the intersection with Tryon and allow multiple lanes moving to and from Crossroads

o        Status – Cary will bid this project in July 2004

o        Cost = $ 3.7M

-          US 1/64 Widening and Walnut Street Interchange Improvements

o        NCDOT is widening US 1/64 to a six lane section with eight lanes between Walnut Street and Cary Parkway

o        Cary is paying for interchange improvements to build new ramps and widen Walnut Street to six lanes from Donaldson Drive to the bridge over US 1/64

o        Status – NCDOT will bid the project in October 2004

o        Cary Cost = $5M, NCDOT Cost = $ 25M

-          Walnut Street Southbound Widening ( from US 1/64 ramp to Piney Plains Road )

o        This short section will allow three Southbound lanes now that restriping and signal adjustments have been completed along the Lowes frontage

o        Status – Under construction

o        Cost = $ 60,000

-          Cary Signal System

o        Covert from a local signal to system to a central signal system. Walnut Street will have our only adaptive controlled corridor which is capable of adjusting signal timing automatically based on approach volumes.

o        Status – Under construction

o        Cost = $ 12M total, about $1M for Walnut Street

Pending Projects

-          Walnut Street Corridor Improvements – Phase I

o        A group of projects based of the November 2001 study to extend Meeting Street to Crossroad Blvd. , add dual turn lanes for the US 1/64 exit ramp, and add overhead signage

o        Status – The project is on hold as a new traffic study was performed with the S.E. Gateway land use plan. We are waiting for completion and adoption of the plan to reprioritize these funds. Recommendations of the plan will be reviewed with NCDOT to establish greatest need and feasibility. Then a staff report will be forwarded to obtain Town Council direction. Staff is pursuing a restriping of the ramp with NCDOT that will accomplish dual turn lanes without any cost.

o        Cost = $ 3M in FY 2004, and an additional $4M in FY 2007. Delay in selecting scope of the project had delayed the need for funding in FY 2005. Design and right of way acquisition can occur with available funding and it is not likely that the project will be ready to proceed to construction until FY 2007. If the design is completed more quickly, considering of funding can occur during the FY 2006 budget.

-          Walnut Street Widening Northbound

o        This project has been designed but is on hold waiting for the US 1/64 project since without the additional lanes on the bridge over US 1/64 the project provides no benefit.

o        Status – Bid about one year after US 1/64 widening so both will be complete at the same time to coordinate ultimate lane marking changes.

o        Cost = $1.5M

b.         Council Discussion

Mr. Roseland asked staff to make updated Crossroads information available on the Town’s web site so that it can be accessed by residents.

Mrs. Robison asked what the status is of Walnut Street Park .

Mrs. Henderson responded that it is already funded, with the acquisition part completed. She said that they have sent out proposals for a design consultant, but have not spent any money. The construction money is also in the budget and it is fully funded at this time.

4.         Parks, Recreation and Cultural Resource Projects

A map of major PRCR projects currently underway is attached to and incorporated in these minutes as Exhibit D.

A List of major PRCR projects currently underway is attached to and incorporated in these minutes as Exhibit E.

A. list of general capital (road and PRCR) projects with planned debt sales in FY 2005 is attached to and incorporated in these minutes as Exhibit F.

Ms. Dorrel stated that Council has received the additional information she requested regarding the development of the Bartley park project and she asked the Council to revisit the issue of cutting the funding for the development of the project from the FY05 budget.

The information requested and received is below.

Question:  "How much would debt service increase if the Bartley Community Park is added back into the budget?"

Complete Answer:  Debt service in FY 2005 would not change.  Debt service in FY 2006 would increase by $325,570.

More Complete Answer:

The FY 2005 Recommended Budget included PRCR debt appropriations of $4,285,000 for Bartley ($3,255,700), North Cary Community Park Design ($29,300), and the White Oak Creek Greenway ($1,000,000).  Council has since directed staff to delay Bartley funding and the North Cary Community Center design by one year and to not appropriate any debt for the White Oak Creek Greenway by using cash funding instead.  The White Oak Creek Greenway reprogramming of $1million has been accomplished by:

1)  Using $360,000 originally targeted for the Operations Center Parking Deck.  After reviewing multiple options, staff has elected to pursue a district approach that will not require a parking deck at the Operations Center .  This will save the cost of the parking deck and be more efficient operationally in terms of having buildings and grounds staff and some heavy equipment located closer to the facilities they maintain.   

2)  Using $640,000 in unrestricted fund balance from the general capital reserve.  The majority of this funding was originally programmed as part of the North Cary Community Center design funding of $435,000 total ($405,700 unrestricted fund balance cash and $29,300 debt).  Should the $1.2 million in general capital reserve interest earnings materialize in FY 2005, the projected ending FY 2005 unrestricted fund balance is expected to be almost $1.5 million.

Because the debt for the PRCR projects previously funded with debt would not have been sold until late in FY 2005, the debt service would not have been due and payable until FY 2006.  Therefore, these decisions did not lower the debt service for the FY 2005 which is currently projected to be $11,376,675.  

There is currently a general capital related debt sale planned for late FY 2005 of $44,170,600 that will not affect debt service in FY 2005, but will serve to increase general capital debt service by $4,472,365 to $15,849,040.

Should the Bartley project be added back into the FY 2005 budget, the debt for this project would be included in the debt sale planned for FY 2005 and debt service payments for FY 2005 would not be affected.  However, the related debt service increase of $325,570 in FY 2006 would serve to increase the expected rise of $4,472,365 by 7.3% up to $4,797,935. 

a.         Council Discussion

Mr. Joyce asked if the Bartley Park project could be broken into phases allowing the dog park to be developed first.

Mrs. Henderson replied that the project is broken into phases with the first phase being the road. She said that it would be difficult to do the dog park by itself because a significant amount of the roads would have to be built.

Mayor McAlister said that in earlier discussions Council talked about Bartley Park and the White Oak Greenway and challenged staff to find some way to do White Oak without having to debt fund it, which they did. He said that staff did a great job of meeting the front end of the challenge, and putting off Bartley Park for a year would help with the debt funding.

Mr. Roseland suggested council consider fund balance or cash phasing, .i.e., $1.6 million fund balance this year, and then revisit the debt picture next year or look at $1.6 million cash next year so that it doesn’t ever affect the debt trend line.

Mayor McAlister asked the Council if the issue needed to be revisited based on the new information.

Mayor Pro Tem Smith, Mrs. Robinson, and Mr. Joyce stated that they would like to stick with the original decision to postpone funding for one year.

Mrs. Robison stated that the funding impact will still exist next year and said that she would like to better understand how the tradeoffs will be better by waiting a year.

Mayor McAlister said that the reason the Bartley Park project was removed from the budget was to minimize debt service and it would be shortsighted to take any action now that will make next year more difficult.

5.         List of changes identified since presentation of the Recommended Budget

This list of changes only includes general fund impacts.  The addition of $1.5 million for a potential North Cary Water Reclamation Facility Odor Control project and the general capital delays related to North Cary Community Center and Bartley Park , as well as the reprogramming of the White Oak Creek Greenway construction from debt to cash has not been listed here.  These items will be included in the comprehensive listing prepared for adoption at the June 24, 2004 Council meeting.

Town of Cary
General Fund Summary of Changes Since Recommended Budget
For Fiscal Year 2005

A list of positions requested early in the budget process, versus those recommended, is attached to and incorporated in these minutes as Exhibit G.

A list of items requested but not included in the recommended budget is attached to and incorporated in these minutes as Exhibit H.

6.         Other issues discussed by Council

Mr. Joyce requested that funding for Culturas Unidas be transferred to Interact. He said that he would like to see funding go to an agency that benefits the entire community instead of just one group of citizens.

The majority of Council agreed that Interact provides a valuable service, but they could not support moving funds from one non-profit to another.

Ms. Dorrel said that a different kind of process is needed, having more Council involvement, when proposing funds for non-profits

Mayor McAlister stated that having a task force to evaluate funding for non-profits is a good idea and he asked Ms. Dorrel to revisit the issue in the latter part of the year.

Mrs. Robison requested that a formalized citizen advisory committee to review the budget be created. She said that formalizing the committee would allow them to have access to all information that Council does and give them the ability to provide advice and recommendations to Council.

Mr. Roseland said that he hasn’t received any feedback or details of the pros and cons on his request for consideration of providing the police department with two canine dog units and asked if that information could be provided in a staff report in 60 days. He would also like to know why Cary does not have a canine program.

Mr. Coleman responded that staff will provide the information.

The work session adjourned at 9:27 p.m.