TOWN OF CARY
The FY 2009 proposed operating and capital budgets, as modified by the changes identified below, are hereby submitted for final Cary Town Council adoption at its regularly scheduled meeting on June 26, 2008
Operating Budget – General Fund
1. The Recycling division recommended budget within Public Works and Utilities department in the general fund has been decreased by ($622,471) and (4.0) FTE’s due to approval of the Recycling PWUT-0828 staff report at the May 8, 2008 Council meeting. This reduction in personnel, operating and purchase of additional trucks was noted in the staff report as one of the benefits of moving to automated recycling collection.
In addition, a reduction of ($18,000) in the Technology Services department was made for the purchase of radios for the four position reductions mentioned above.
2. The Solid Waste division recommended budget within the Public Works and Utilities department in the general fund has been increased by $25,000 due to a recent price increase related to the planned purchase of automated trucks in FY 2009.
3. The Operations division recommended budget within the Public Works and Utilities department in the general fund has been increased by $20,000 due to a recent price increase related to the planned purchase of jet trucks in FY 2009. The cost transfer to the utility fund will be also increased by $20,000 to move the costs to the utility fund, so the net impact on the general fund budget will be zero.
4. The Facilities Management division recommended budget within the Public Works and Utilities department in the general fund has been decreased by ($26,000) due to a change in the scope of work for the Cary Tennis Park. The original scope called for replacing court fences, but after further review, it was decided that only repair and maintenance was necessary. The funding for this project was $50,000, but staff is recommending that the Town use $24,000 in funds to perform facility enhancements and maintenance at Cary Tennis Park by adding wind screens to courts that currently do not have them to enhance the functional use of the tennis facility.
5. The Police Department recommended budget has been increased by $12,600 for wireless connection charges.
6. The general fund transfer to Transit has been increased by $15,313 as a result of staff report PL08-025a approved by council on June 12, 2008, which adjusted fares and provided $5,000 worth of tickets to the Center of Volunteer Caregiving to distribute based on need.
7. The Public Information Office recommended budget has been increased by $10,000 for an expert review of a request from Time Warner Cable to approve changes in its corporate structure. Such approval is required under the Town’s Cable Ordinance and includes specific legal analysis of the Federal Communications Commission and other regulatory agencies’ rules relative to Time Warner’s existing Franchise Agreement with the Town and the Town’s umbrella Cable Ordinance.
8. An additional $2,000 has been added to the Town Council travel and training account to cover the influx of Sister City dignitaries scheduled to visit the Town of Cary.
9. Funding for implementation of the annual classification and pay study has been decreased by $38,530 for FY 2009 in the general fund. $43,530 was included in the proposed budget as an early estimate as results of the study presented to Council via staff report HR08-05 on May 8, 2008 were not yet available. Per staff report HR08-05, the class and pay study determined that only $5,000 is necessary to implement recommended classification and pay adjustments.
10. Add $1,750 to Council budget in Dues and Memberships to join ICLEI per Council approval on June 12, 2008. (originally presented on Staff Report AD08-016 as $8,000 for Climate Communities).
11. Funding of $23,038 has been added for the combined annual total of salary and benefit adjustments for the Town Council appointed positions of Town Clerk, Town Attorney, and Town manager. Funding totaling $9,043 has been added to the travel account of the Town Council to accommodate increased fuel costs.
12. The recommended general fund operating budget for FY 2009 reflected an increase of 7.8% compared to the FY 2008 adopted budget. At Council’s direction to review the budget for reduction possibilities, this percentage increase has been reduced from 7.8% to 4.5%. This will result in a reduction to the general fund recommended operating budget of $3,506,378. For budget ordinance purposes and Council adoption, the net impact including all other changes noted herein, will be reflected as an adjustment to the “Department Allocation Accounts” line item in the general fund budget. This will result in an FY 2009 adopted general fund operating budget that is 4.5% higher than the FY 2008 adopted general fund operating budget. Specific areas resulting in budget reductions are being examined by staff for those areas that will least impact direct service provision to citizens in FY 2009. The specific list of changes and resulting specific budget ordinance amendments will be presented to the Town Council for approval at a later date.
Operating Budget – Utility Fund
13. Additional revenue in the amount of $1,645,251 has been estimated to be collected based on an increase in the sewer volume charge from $5.36 to $5.77 for Town of Cary customers and from $6.83 to $7.34 for Morrisville customers, as reflected in the Utility fee schedule. These rates are being recommended as a way to smooth future anticipated rate increases necessary in order to pay debt service related to the Western Wake Water Reclamation Facility and normal operating cost increases.
14. The Water Treatment Plant division recommended budget within the Public Works and Utilities department in the utility fund has been increased by $244,655 due mainly to an increase in pricing for chemicals and an increase in the anticipated consumption of utilities used in the water treatment processes at the plant.
15. The Water Treatment Plant division recommended budget within the Public Works and Utilities department in the utility fund has been increased by $9,594 based on a revised cost sharing estimate for the Cape Fear River Study.
16. The Operations division recommended budget within the Public Works and Utilities department in the general fund has been increased by $20,000 due to a recent price increase related to the planned purchase of jet trucks in FY 2009. The cost transfer to the utility fund will be also increased by $20,000 to move the costs to the utility fund, so the net impact on the general fund budget will be zero and the impact on the utility fund will be $20,000.
17. An amount of $858,738 in utility fund balance will be transferred to the utility capital reserve fund for future appropriation. These funds are restricted to water capital expansion projects which is why the funds are recommended for transfer to utility capital reserve fund balance for future appropriation to related capital projects.
Operating Budget – Other Funds
18. The Health and Dental Self-Insurance Fund was increased by $77,000 for program activities related to the Town of Cary’s C-PHIT initiative which encourages healthy lifestyles and voluntary prevention activities. This will be funded by an appropriation from the Health and Dental Self-Insurance fund fund balance.
Capital Budget – General
19. The South Harrison Avenue Extension project has been removed from the FY 2009 CIB/P. During Budget Worksession #3, held on June 3, 2008, Council decided to delay this project. The capital improvements budget has been reduced by $1,000,000 in FY 2009 and by a total of $2,800,000 during the FYs 2010 – 2019 planning period.
20. The TCAP – Chapel Hill Road Widening – NE Maynard to NW Maynard project has been removed from the FY 2009 CIB/P. During Budget Worksession #3, held on June 3, 2008, Council decided to delay this project. The capital improvements budget has been reduced by $9,450,000 in FY 2009 and by a total of $18,000,000 during the FYs 2010 – 2019 planning period.
21. The FY 2009 Transportation capital improvements budget has been decreased by $2,000,000 as the Intersection of Jenks-Carpenter/High House Road project has been delayed until FYs 2010 and 2011.
22. The FY 2009 Transportation capital improvements budget has been decreased by $4,000,000 as the TCAP – Walker Street Extension project has been delayed until FYs 2014 and 2015.
23. The FY 2009 Transportation capital improvements budget has been increased by $4,600,000 in order to fund the entire Cary Parkway Pavement Rehabilitation project in FY 2009. The FY 2009 total appropriation for this project is now $8,100,000. The Cary Parkway Pavement Rehabilitation project focuses on repaving Town-maintained portions of Cary Parkway.
24. Design funds for the Reedy Creek Road Widening (NE Maynard Road to N Harrison Avenue) project have been moved to FY2012 of the FY 2009 capital improvements plan.
25. Design funds for the O’Kelly Chapel Road Widening (NC 55-Green Level to Durham) project have been moved to FY 2013 of the FY 2009 capital improvements plan.
26. Design funds for the Green Level to Durham Road (McCrimmon Parkway) project have been moved to FY 2013 of the FY 2009 capital improvements plan.
27. The FY 2009 General Government capital improvements budget has been decreased by $700,000 as the Aerial Topographic Mapping project has been delayed until FY 2014.
28. No dollar adjustment. The general capital fee schedule has been updated to include text describing the street light payment-in-lieu fee. This is not a new fee. It is an existing fee authorized via the Town’s Land Development Ordinance and Policy Statement #13 regarding street lights. Staff believes that as it is a fee charged by the Town, it should be quantified/documented within the appropriate fee schedule.
29. The funding source for the $15,800,000 requested in FY 2009 for the TCAP – Cary Elementary project has been changed from 2003 Parks General Obligation bonds to an appropriation from unrestricted general capital reserve fund balance. This adjustment was agreed upon by Town Council during Budget Worksession #3 held on June 3, 2008. This transaction represents the reallocation of cash resources originally budgeted for the Aquatics Center project to the TCAP – Cary Elementary project. The Aquatics Center project remains fully funded; however the funding source supporting it has been changed to 2003 PRCR General Obligation debt.
Capital Budget - Utility
30. $200,000 for the WT1150 MM – Large Water Meter Replacement project has been added to the FY 2009 Water capital improvements budget. A total of $51,000 has been appropriated to date to WT1150. FY 2009 requested funds would bring the total project appropriation to $251,000. WT 1150 is a Morrisville merger project focused on replacing all large water meters in Morrisville. The project was identified as necessary in the utility system merger analysis as Morrisville's meters are quite old. Old meters register less water than is actually used. As such, staff expects that replacing these large meters will lessen the amount of unaccounted for water in Morrisville and increase revenue. This project will also facilitate a smoother transition for the advanced meter infrastructure (AMI) project. Staff recommends funding this $200,000 via funds generated in FY 2007 by the Morrisville utility rate differential.
31. The utility capital fee schedule has been adjusted to include the irrigation meter development fee adjustment from $374 to $1,161 as approved by Council at its June 12, 2008 regular meeting per staff report AD08-017.
32. The utility capital fee schedule has been adjusted to include the reclaimed irrigation meter development fee approved by Council at its June 12, 2008 regular meeting per staff report AD08-017. The rate for this fee has been set at 50% of the potable irrigation meter development fee, or $581, for a residential reclaimed irrigation meter.