TOWN OF CARY

 

CHANGES TO FISCAL YEAR 2008 PROPOSED OPERATING AND CAPITAL BUDGETS

 

The FY 2008 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 28, 2007. 

 

  1. The FY 2008 proposed capital improvements budget (CIB) included a $1,000,000 2003 GO transportation debt appropriation for the TCAP – Walker Street Extension project.  During the May 15, 2007, budget worksession, Town Council voted to move this project and its funding requirements to FY 2009 of the capital improvements plan.  The FY 2008 adopted transportation CIB does not include the originally proposed $1,000,000 in funding for this project.  As such, the transportation debt appropriation figure for FY 2008 has been reduced by this amount.  This first year request for funding now appears in FY 2009 and its funding need has been escalated by 5% to $1,050,000 to address inflation.  Construction funds have also been escalated by 5% to$13,125,000 and appear in FY 2010 of the capital improvements plan.

 

  1. The FY 2008 proposed capital improvements budget (CIB) included a $9,000,000 2003 GO transportation debt appropriation for the TCAP – Chapel Hill Road Widening – NE Maynard to NW Maynard project.  During the May 15, 2007, budget worksession, Town Council voted to move this project and its funding requirements to FY 2009 of the capital improvements plan.  The FY 2008 adopted transportation CIB does not include the originally proposed $9,000,000 in funding for this project.  As such, the transportation debt appropriation figure for FY 2008 has been reduced by this amount.  This first year request for funding now appears in FY 2009 and its funding need has been escalated by 5% to $9,450,000 to address inflation.  Construction funds have also been escalated by 5% to $14,175,000 and appear in FY 2010 of the capital improvements plan.

 

  1. During the June 5, 2007, budget worksession, Council voted to advance the appropriation of $1,000,000 in design funds for the Reedy Creek Road project from FY 2010 to FY 2008.  A total of $5,500,000 appears in FY 2009 of the capital improvements plan for construction.  The FY 2008 appropriation has been funded with 2003 GO transportation debt.

 

  1. During the June 5, 2007, budget worksession, Council voted to appropriate $865,000 in support of the TCAP – Digital Media Center project.  This appropriation has been funded with 2003 GO parks debt.

 

  1. During the June 12, 2007, budget worksession, Council voted to fund the general nonprofit Kids Voting of Wake County in the amount of $5,000.

 

  1. Salary and benefit adjustments for the Town Council appointed positions of Town Clerk, Town Attorney, and Town Manager have been included in the budget per the Town Council’s direction.  The combined total, which includes the full annual cost of each adjustment, is $26,131.

 

  1. Funding for implementation of the annual classification and pay study has been increased by $3,530 to $43,530 for FY 2008 in the general fund.  $40,000 was included in the proposed budget as an early estimate since results of the study were not yet available.  Staff report HR07-04 approved on May 10, 2007 by Council summarized the related information.

 

  1. Debt service funding in the general fund has been increased by $550,000 for an updated Issuance Cost Expense.  A total of $50,000 was included in the proposed budget for this purpose as an early estimate.

 

  1. The Administration division budget within the Public Works and Utilities department in the general fund has been increased by $679 for telephone expenses inadvertently budgeted in the utility fund.  Likewise, $679 has been removed from the respective utility fund budget. 

 

  1. The Police department budget in the general fund has been decreased by a net amount of $142,343 (reduction of $106,113 in personnel costs, $48,410 in capital expenditures and a net increase of $12,180 in operating and maintenance costs) due mainly to the over-budgeting of two positions in FY 2008 and a reduction in capital funding that was approved in the FY 2007 Budget for the two new detective positions per staff report PD07-014 at the April 27, 2007 Council meeting.

 

  1. The Human Resources department budget in the general fund has been decreased by $35,000 due to premium savings that will be realized by switching the Town’s life insurance policy carrier.

 

  1. The FY 2008 proposed budget identified a $684,000 general fund transfer to Fire capital projects.  This figure has been increased by $150,000 to provide for construction of a rear-entrance driveway from Highstone Crossing in to the back of the Fire Station #5 parking lot.  The existing vehicle apron on High House Road provides for an exit from the station for emergency vehicles, but does not allow vehicles traveling westbound on High House Road to return to the station via this entrance.  A Town request to NCDOT for permission to remove this apron has been denied.  As such, Town engineers have concluded that a rear-entrance to the station will allow emergency and public vehicles to both exit and enter the station.  As this station also serves as a police substation and public polling place, many vehicles other than Fire emergency vehicles are affected by the left-turn restriction placed by the vehicle apron.  The additional appropriation of $150,000 brings the total general fund transfer in support of fire capital projects to $834,000.  The Fire Department’s operating budget had originally included $20,000 for related median access changes in front of Fire Station #5 on High House road, so that $20,000 has been removed.

 

  1. The PRCR Administration budget in the general fund was increased by $30,000 for land appraisals to continue ensuring that appraisals related to calculating both park and greenway payment-in-lieu land values are performed by an independent third party. 

 

  1. The Travel and Training budgets for both Legal and Public information in the general fund were each increased by $1,000 to reimburse staff for travel and other incidentals as they attend a Municipal Administration Course at UNC.

 

  1. The PRCR Recreation Department in the general fund was increased by $10,000 for the operating budget portion of the grant from the John Rex Endowment for Bond Park Improvements.  There was $110,000 recognized in the FY 2007 Capital Budget for a total of $120,000 grant per staff report PR07-30 approved at June 14, 2007 Council meeting.

 

  1. The miscellaneous revenue account in the Utility Fund has been increased by $17,800 and the “Items for Resale” expenditure account has been increased by $17,400 to address the purchase and resale of rain barrels at cost plus a minimal administrative recovery charge.

 

  1. The FY 2008 proposed budget identified a $2,998,854 utility fund transfer to the utility capital reserve fund.  This figure represented the anticipated Morrisville utility rate differential receipts to be generated in FY 2008.  As it is not a requirement that funds generated by the Morrisville rate differential be transferred to the utility capital reserve fund, an adjustment has been made to the FY 2008 adopted budget such that these funds will remain within the utility fund.

 

  1. The utility fund transfer to the utility capital reserve fund has been increased by $1,091,499 in the FY 2008 adopted budget to incorporate the total transfer of all funds received from the Town of Morrisville upon the merger of their utility system with Cary’s.  These funds will be placed within unrestricted utility capital reserve fund balance and will be directed toward Morrisville merger related water and sewer capital projects.  This adjustment brings the utility fund transfer to the capital reserve fund to $4,381,668.

 

  1. Debt service funding has been increased by $364,266 based on recent estimates for principal and interest costs for debt in the utility fund.

 

  1. Final budget adjustments were made to account for the recent and sustained fuel price increases.  Total funding of $138,131 was added Town-wide to the FY 2008 Recommended Budget. A fund breakout is outlined here: General Fund $129,519, Utility Fund $8,074 and Fleet Fund $538.

 

  1. Various departments within the General Fund were increased a total of $9,520 for additional wireless charges due to a change in the wireless contract.  There was also $3,300 added for senior personnel in the Fire Department to provide personal digital assistant (PDA) devices.

 

  1. Final budget adjustments were made to account for an updated health and dental cost forecasts for FY2008. Total funding from the Town increased by $221,999 Town-wide.  A fund breakout is outlined here: General Fund $195,506, Utility Fund $23,808, Fleet Fund $2,684 and Transit $458.

 

  1. The FY 2008 proposed budget included a $50,000 vehicle license fee appropriation in support of the High House Road/Davis Drive Intersection project.  This project is complete and does not require additional funding.  As such, the project has been removed from the FY 2008 capital improvements budget allowing the $50,000 to fall back to restricted general capital reserve fund balance.

 

  1. The Town has received a developer payment in the amount of $48,875 for greenway work related to the Glenkirk Greenway.  Approval of this item as a part of the FY 2008 budget officially recognizes these funds.  As such, an expenditure budget of $48,875 will be established in the PR1094 Glenkirk Greenway capital project to allow for the expenditure of these developer agreement funds.  This adjustment requires no additional appropriations to the FY 2008 capital improvements budget as the funds have been received from a developer for this purpose.

 

  1. An update of the Parks, Recreation, and Cultural Resources Master Plan has been requested in addition to an update of the 2001 Open Space and Historical Resources Plan.  It is intended that these two plans will be fully integrated throughout this update process.  Based on the Town’s growth patterns and facilities already in place and those approved for the near future, the level-of-service standards for types and numbers of parks will be reviewed.  A statistically valid scientific survey will be included to provide preferences for various facilities and programs and to determine how the already existing facilities help meet those needs. A community centers plan will also be completed that will include defining the range and types of centers the Town will develop as well as their proposed locations.  Lastly, the greenway plan will also be updated.  Proposed trail alignments will be checked and/or eliminated if deemed unnecessary.  Funding in the amount of $200,000 has been added to the Administration Division of the PRCR Department contracted services account in the FY 2008 general fund budget for these updates.

 

  1. The design team for Cary Elementary has identified some areas within the building that are deteriorating and are recommending that these be taken care of in advance of the project bid to prevent further damage that might result in higher costs later.   The estimated costs to begin addressing these issues are $50,000 for temporary roof repairs and another $50,000 to address ground water issues.  In addition, the design team further recommends that the asbestos abatement work be accomplished in advance of bidding the project.  While an investigation and evaluation is on-going, it is recommended that funds to begin addressing this issue in the amount of $100,000 be appropriated at this time.  This early work totaling $200,000 would become part of the Cary Elementary capital project already established and will be funded with general capital reserve unrestricted revenues.

 

  1. Per staff report PD07-016 presented and approved at the June 29, 2008 Council meeting, six Police Officer I positions were approved by Council for addition to the FY2008 general fund budget in the amount of $525,633.