Work Session Minutes of the Town of Cary, NC

FY 2008 Proposed Budget

June 5, 2007

Conference Room 10035 , 316 N. Academy St. , Cary

 

 

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

 

Mayor McAlister called meeting to order at 4:35 p.m.

 

Mr. Coleman stated that one of the issues needed to be discussed is the financial impact of downtown redevelopment and how that relates to the costs of the downtown improvements.  He said that staff developed a methodology using the Town Center Area Plan (TCAP) original study.  They looked at the overall recommended development, reduced that to square footage for residential and commercial, developed a square footage value and then extrapolated the overall tax value for the TCAP development.  From that staff has prepared both conservative and aggressive estimates which were provided to council earlier.  (Copies of the General Fund summary, TCAP build out estimates, and fund summary comparisons are attached to and incorporated herein as Exhibit A.) 

 

Mr. Fogleman provided updated estimates for TCAP which supersede the earlier version provided to council.  (A copy of the updated TCAP-related build out estimates is attached to and incorporated herein as Exhibit B.)  He said that the early version focused primarily on the core of the downtown along Chatham and Academy and had incremental revenue at build out of about $1.8 million—doubling taxable property.  The updated hand out considers the full impact within the entire TCAP and in effect doubles the incremental revenue.  Mr. Fogleman stated that assumptions were taken into consideration in order to provide estimates on the type of possible revenue growth upon build out and what the incremental revenue would mean in terms of the amount of debt it could service.  It does not include incremental services required for downtown residents.

 

Mr. Coleman said that staff discussed the several different elements to the downtown project.  The streetscape is the primary project serving as the basis for everything else—development of facilities, downtown park, etc.  The performing arts center, park, and library are all special facilities that support the overall quality of life and are not necessarily related to downtown development.  He said that the cost of the streetscape project is what is needed to determine whether we are generating a return on investment. 

 

Mayor McAlister asked about having a separate bond referendum for the downtown and whether council wanted to move ahead with the downtown project based on the $3 million funding.  Mrs. Robinson said that council committed to the project and they should move forward regardless of the funding.  Mr. Roseland and Mrs. Robison echoed her comments. 

 

Mayor McAlister said the question is what funding source they will look to for the other $26 million in future years.  Mr. Portman said that he is not comfortable raising property taxes to fund the project.  He said they need to know the impact on the tax base. 

 

Mr. Coleman said that the information provided is based on certain assumptions, all of which would have to be true for the scenarios to work.  There are individual projects that would be reviewed yearly with the annual budget.  He said with the current schedule all TCAP projects are supposed to be finished by 2013.  The decision to proceed with the downtown project this year is primarily a decision to proceed with the streetscape project and Cary Elementary School; the rest of the projects will follow after that in a sequence driven by the financial position of the Town, our other obligations, and whether council thinks it’s a good idea at that time to move ahead. 

 

Mayor McAlister asked about the funding for the streetscape project.  Mr. Coleman said the streetscape and Cary Elementary School projects are roughly about $49 million.  The current plan is to fund most of it through existing debt authority with the parks bonds and street bonds.  He said that one option is to commit reversion about $4-$6 million from the 2007 budget into the Cary Elementary School project, if council so desires, which would extend the Town’s parks bond authority out in future years.  

 

Mr. Fogleman reviewed the 2003 transportation bond and parks bond funding appropriations.  (A copy of the 2003 transportation GO bond and parks GO bond funding appropriations history, major upcoming projects, and TCAP improvements capital program information is attached to and incorporated herein as Exhibit C.) 

 

Mr. Fogleman said that staff factored in the $22 million of funding for the performing arts center coming in 2012.  The funding schedule includes the $22 million in cash coming back to the Town and reducing the amount needing to be borrowed.  It also assumes the $10 million in interlocal funds as a stream of cash which would need to be fronted by the Town.

 

Mr. Roseland stated that decisions made at the last work session have significantly impacted the deficit numbers.  Council’s removal of the $23 million Chapel Hill Road widening project and the $13 million Walker Street project from the FY08 budget frees up enough bond authority to pay for the streetscape. 

 

Mayor McAlister asked if there is a deficit of $25 million going forward.  Mr. Portman said that with the two projects removed there should be enough funding.  They can then decide on another transportation bond in FY08 or FY09.  

 

Mayor McAlister said they need to look at the FY08 budget and whether changes are needed.  He said he is hearing from council that the $3 million for FY08 is not an issue.

 

Mr. Portman and Mrs. Robinson asked about accelerating the Cary Elementary project.  Mr. Coleman said the budget recommendation is based on the schedule received from consultants to move through the process of programming, design, and the citizen and community participation element.  Doug McRainey of the Parks, Recreation and Cultural Resources Department said that staff talked with the consultants about the elements of the schedule and what can be done to change it and move more quickly. 

 

Mr. Roseland said that the Parks, Recreation and Cultural Resources (PRCR) Advisory Board discussed the parks and recreation budget recommendations and voted to endorse the whole package.  He said that they also discussed the 20-month planning process for Cary Elementary.  There board unanimously agreed recommending that council look at expediting the schedule, consider phasing, and consider a significant funding installment of about $10-12 million in FY08 with the balance appropriated in the following year. 

 

Ms. Dorrel said council needs to understand what accelerating means in terms of sacrifices in the project.  Mrs. Robinson asked if accelerating the development would maintain the quality and whether accelerating funding actually accelerates the project.  Mr. McRainey said that accelerated funding will not necessarily accelerate the project.  He said that the scheduled was recently refined with the consultants.  (A copy of the revised schedule is attached to and incorporated herein as Exhibit D.)  He said they are looking at 20 months of design with 15 months of construction.  The construction would be initiated in January 2009.  Mr. McRainey said that staff will do what they can to speed up the project; however, the consultants don’t think that we can go out to bid before July 2008. 

 

Mrs. Robinson said they don’t want to sacrifice the deliberate and careful process that the Town goes through to result in a quality project.  She said they don’t want to accelerate something for the sake of satisfaction of getting things done.

 

Mr. McRainey provided information on the process outlined for public input.  (A copy of the programming/public input schedule is attached to and incorporated herein as Exhibit E.)  He said they are at the beginning stages.  In October staff can provide a tighter cost estimate and better feel for where the process can be quickened, if possible. 

 

Mr. Coleman stated that the architect said there were things that needed to done to the Cary Elementary building between now and the time of renovation to ensure that it doesn’t deteriorate.  He didn’t think it was an issue to be raised in the budget because it’s a facility that the Town maintains.  It is a normal repair and facility maintenance item. 

 

Mrs. Robinson said it’s her understanding that Wake County will is planning a bond for libraries soon and the downtown Cary library is on their list.  She said if the Town were to put money into one of the downtown structures her interest would be to put money into the media arts center to express to Wake County the Town’s willing to work with them. 

 

Mrs. Robison left at this point in the meeting at 5:34 p.m.

 

Mr. Portman stated that he is comfortable with the $3 million for the streetscape. 

 

Mayor McAlister asked if there were any remaining arguments to accelerate funding for Cary Elementary into FY08.  Ms. Dorrel said that there is concern that the level of commitment from council to that project will go away.  She said they need ensure the PRCR advisory board that they are committed to this project. 

 

Mrs. Robinson said putting money aside to show the Town’s commitment to Wake County on the media arts building in tandem with the new library would be a worthwhile course to pursue. 

 

ACTION:  Mr. Roseland moved that council set aside $865,000 in the capital budget to support a media arts center and combined upgraded library in partnership with Wake County .  Mrs. Robinson provided the second. 

 

Mayor Pro Tem Smith said he believes that half of that amount would send the same message. 

 

Ms. Dorrel said if the motion passes they need to make the distinction between setting aside this money and setting aside the Cary Elementary money.  She said the greatest distinction is that they are already funding Cary Elementary and they have a contract for the design which states a level of commitment.  The purpose of setting aside this funding is to induce the partnership with Wake County .

 

ACTION:  Vote was called for on the motion.   Mayor Pro Tem Smith voted “no”.  All others voted “aye”.  The motion carried by majority vote.  (Mrs. Robinson left the meeting before this vote was taken and was not excused; therefore, the record reflects an “aye” vote for her.)

 

Transportation

 

Mr. Bailey provided council with a summary of the projects for the FY08 capital improvements budget.  (A copy of the summary information on the transportation CIB/CIP is attached to and incorporated herein as Exhibit F.)  He said if council were interested in partnership with Morrisville it would take some follow-up discussion at a later date. 

 

Aviation Parkway Widening

 

Mr. Bailey said that the interchange at I-40 is most of the problem.  He said if there are a lot of issues that may need to be coordinated with the Department of Transportation or the airport.  There are some issues that also affect other jurisdictions.  They need to determine where it fits in the priorities.  Mr. Roseland said that although it is a bottleneck for Cary residents it may be a CAMPO regional issue. He said if there isn’t anything to prioritize it in the capital budget then they can send a message through the regional planning group process to let them know it needs to be elevated.

 

Mayor McAlister said that it doesn’t make sense for Cary to make the improvements with other municipalities also have a stake in it and asked what the funding would do.  Mr. Bailey said that I-40 and the interchanges are a high priority with CAMPO; they have studies to talk about the corridor and what can be done.  He said we may be able to supplement funding to help slightly but until the work is done he doesn’t think we could spur a project.  Also, many of the projects are on the federal highway system and there are limits to prohibit how much a municipality can participate on highway projects.  He said we need to see some project developed at the CAMPO level first.  Mr. Bailey said we also have a potential to partner with the airport since there may be federal aviation funds available.  Mayor McAlister said for their purposes there is no need to set aside funding. 

 

Mrs. Robinson asked if there is anything the Town can do to help the signalization at the merging section.  Mr. Bailey said he didn’t believe there was any to make signal timing better. 

 

Mr. Roseland asked if there is value in adding it to the federal funding agenda list.  Mr. Bailey said it could be added.

 

Chapel Hill Road Widening

 

Mayor McAlister asked if allocating funding would move the project along.  Mr. Bailey said he doesn’t think Morrisville will allocate funding this year.   He said they need to work with the other entities (Morrisville and DOT) to develop an agreement to make it a shared project.  Ms. Dorrel suggested council hold a joint meeting with Morrisville’s board.  Mayor McAlister added that the joint meeting be scheduled soon. 

 

Northwest Cary Parkway and Cary Parkway Pavement Conditions

 

Mr. Bailey said the Town has been making repairs to Weston, removing the pavement and stone, and putting in asphalt to give it a higher structural integrity, there is a lot of rutting and alligator cracking.  Staff is concerned that it will start deteriorating quickly which is why they’ve asked for separate funds for Weston Parkway .  He said they’ve done some work on Weston but there are still other areas to be addressed.  .

 

Mayor McAlister asked how much more funding is needed address the other issues.  Mr. Bailey said that the $4.6 million in the budget should take care of the segments on Weston Parkway that they have not improved in recent years.  He said there is also a project council awarded that will do some of the segments this year and that work is underway.  Mr. Bailey said that council adopting the budget Weston Parkway improvements would be fully funded.

 

Mr. Roseland asked if $2 million is enough to address citizens concerns regarding maintenance.  Mr. Bailey said the $2 million in the FY08 budget will help improve the ratings. 

 

Mayor McAlister asked if they need to go beyond the staff recommendation.  Mr. Bailey said they will know at the end of the year if they are on target and can make any necessary adjustment at that time. 

 

Mayor Pro Tem Smith said that if staff sees something happening they shouldn’t wait until next year.  Mr. Roseland agreed and asked about designing a survey and assessment to get to the desired benchmark.  Mr. Bailey said staff provides a report each year.  He said they can add information to the report and work with council to refine the target when the updated list is provided. 

 

Reedy Creek Road

 

Mrs. Robison returned at this point in the meeting at 6:17 p.m.

 

Mayor McAlister stated that the intersections are functioning well.  Mr. Bailey concurred. 

 

Mr. Roseland said there is a safety problem with the curbs. He said the infrastructure needs to be in place to support the intense development proposed.  At a minimum they need to advance reedy creek to three lanes with a sidewalk and traffic light to deal with issues they’ve heard at a public hearing.  He asked how much is needed to advance design for the three lane cross section of that road.  Mr. Bailey said about $1 million would get the design started and it would go for one year. 

 

Ms. Dorrel asked about increasing safety concerns.  Mr. Bailey said there are some curves in the road creating site distance problems for stopping distance around the schools in the area and there isn’t a walk zone; there are issues that can benefit from sidewalks and street lights.  He said there is clearly some benefit to bringing the rural road up to some type of suburban/urban standard that is consistent throughout the core of the area.  He said the project is in the FY09 budget. 

 

ACTION:  Mr. Roseland moved that council budget in the upcoming budget cycle $1 million to initiate design of Reedy Creek Road .  Mr. Portman provided the second.

 

Ms. Dorrel asked if they would also be moving the $5.5 million to complete project earlier.  Mr. Bailey said there would be design the first year and right of way and possibly construction the following year. 

 

Mrs. Robison asked at what point in the process a stop light would go up at Electra and Reedy Creek.  She said it’s a safety problem and needs to be considered sooner rather than later.  Mr. Bailey said once council approved the design funding all of the intersections would be evaluated for signal criteria.  Mr. Bailey said staff will perform a signal warning analysis on that location.

 

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

 

Cary Parkway

 

Mr. Bailey said that both ends at Evans and Harrison are built to the thoroughfare plan and have at least the required number of turning lanes.  He visited the site, looked at all of the intermediate intersections, and they are functioning pretty well on either end.  Based on his observations there are minor issues associated with the intermediate sections. 

 

Mayor McAlister asked if any fixes are necessary.  Mr. Bailey responded that if some of the intermediate intersections started to develop long cues there would be a potential intermediate fix, but he is not aware of any at this time.  

 

Mrs. Robison asked at what point the area would be rechecked.  Mr. Bailey said several things would trigger the need to improve the section grade.  Anything that would extend Cary Parkway probably would increase the traffic volumes and require reconsideration of the project, as well as any major development in the area.  He said it’s possible that a significant project could focus beyond the intersection issue and require that the whole corridor be moved to a four lane segment. 

 

Mrs. Robison said the road is degraded is certain areas on the right side and looks unfinished.  She asked if some minor things can be done to improve the quality of that area.  Mr. Bailey said the pavement may need to be removed and replaced with a street improvements project.  A permanent solution is probably the road improvement project.  In the interim, staff can look at things to make it better. 

 

ACTION:  Mrs. Robison moved that as part of the street improvement budget this year that one of the projects as a priority be the pavement improvements on north Cary Parkway and that the issue of the safety marker be included in that.  Mr. Roseland provided second. 

 

Ms. Dorrel asked if they would want to increase the funding for the street improvements projects from $2 million to something else.  Mr. Bailey said that section is already included in the funds to be used.  The bigger issue is how far they want to go. 

 

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

 

Miscellaneous Capital Improvements

 

Mr. Roseland asked what it would cost to address the deficiencies and issues raised in the Silverton regional stormwater study in terms off culverts or other infrastructure improvements.  He asked if there would be merit to set aside money to help other areas in Town.  Mr. Bailey said the study had rough cost estimates for some of the retention facilities.  Council direction to staff was to use that study as a basis for considering and approving development plans occurring within the watershed.  As a result of the study staff was directed to develop a Town-wide retention ordinance.  He said that staff will prepare an initial report to council outlining the framework before writing the actual ordinance language.  . 

 

Mrs. Robison asked about the county study and task force researching the issue.  Mr. Bailey said they don’t have any conclusions but have made a lot of progress with the communities trying to define the problem, getting information on the level of interest in types of projects and categorizing them.  Mrs. Robinson said it would be helpful to have a work session on stormwater when the study is completed to discuss impacts of new development, existing problems, and areas that don’t have any new development.  She said that council needs feedback from staff on the alternatives. 

 

Mayor McAlister asked if anything needs to be done in the budget to move this along.  Mr. Bailey said the county study is moving along, and when it comes back there will be significant council decisions that will need to be made.

 

Mr. Portman asked about the money for dealing with stormwater.  Mr. Bailey said the Town has a good program with three sources of funding and staff has done a good job of meeting requests received.  He said they are managing those projects that have a direct impact either with flooding on private property or have significant public road or public property issues and they haven’t had any shortfall.

 

Items for Future Discussion

 

Mr. Portman said he would like to discuss the $5,000 for kids voting and the budget process for next year. 

 

Mrs. Robison would like to discuss the revenue for transportation improvements and the vehicle license fees.  She said there was a proposal from staff a while ago to increase the fees and she would vehicle license fees designated to some type of road improvements.  She would also like to see a report on the impact of taking the SRO program out of the elementary schools and what it would cost to re-embrace that program. 

 

Mr. Roseland would like to discuss the crime stoppers funding.

 

Mayor Pro Tem has questions about the funding for Diamante.  He said they agreed to have an international festival which would remove the funding for isolated specialty groups. 

 

There was a consensus among the council to reconvene another work session to discuss the other issues. 

Mayor McAlister adjourned the meeting at 6:51 p.m.