As a matter of general policy, revenue estimates during the 1990s were budgeted conservatively to promote contributions to fund balance and avoid revenue shortfalls due to unexpected weakness in the local economy or a slow-down in the rate of construction activity. A substantial shift to more realistic budgeting of revenues began in FY 1999, and this approach has been used to estimate FY 2007 ending revenues and forecasted revenues for the FY 2008 budget.

FY 2008 budgeted revenues for the General Fund are projected to increase 4.3% over estimated FY 2007 revenues, while FY 2007 estimated revenues are projected to increase 5% over actual FY 2006 revenues.

The General Fund’s major revenue source, the property tax, has continued to grow. However, growth has slowed from double-digits in the 1990s to 5.8% for FY 2008. The FY 2008 property tax rate is $0.42 per $100 of assessed value, the same rate as FY 2007.

FY 2008 permit and fee revenue estimates reflect fairly steady revenue levels compared to FY 2006 and FY 2007. Population growth, which averaged 11% from FY 1994 through FY 1998, trended downward in the early 2000s, and is expected to be approximately 6.7% for the upcoming year. Revenues have been estimated by analyzing the major drivers that affect each revenue source, how the economy affects those drivers, and the timing of when revenue is received

Actions taken by the North Carolina General Assembly in the past have had a lasting impact on Cary and other North Carolina local governments. During the 1993 session, the Legislature changed the Beer and Wine and Utility Franchise Taxes to an automatic distribution with growth, effective in FY 1996. In 1998, the General Assembly removed the natural gas portion of the Utilities Franchise Tax and imposed a Natural Gas Excise Tax based on consumption. In April 1995, the General Assembly repealed the state's intangibles tax on stocks, bonds, and bank deposits, a portion of which was allocated to local governments. The state reimbursed local governments for this lost revenue based on the prior year’s allocation level, with no growth factor, until the reimbursements were repealed effective July 2002. These reimbursements were replaced with a new one-half cent sales tax (Article 44) beginning in December 2002. Annual revenues from this new sales tax are expected to exceed the amount Cary would have received in reimbursements by approximately $3.2 million in FY 2008.

Fiscal problems at the state level directly affected local reimbursements during FY 2001. The state retained the spring FY 2001 inventory tax reimbursement to help address state budget woes. These funds were later released by the Governor in June 2001. In May 2001, the state announced that it would also retain Emergency 911 revenues, and again the Governor released the funds in June 2001. While these actions ultimately had no impact on Cary in FY 2001, financial constraints at the state level lead to other withholdings during FY 2002. The Town’s FY 2002 revenues were reduced by $2.35 million when the Governor withheld wine and beer taxes, as well as a portion of Utility Franchise Taxes and Inventory Tax Reimbursements, to help balance the state budget.

The Town of Cary and the U.S. Census Bureau conducted two special censuses during the 1990s to quantify Cary’s rapid population growth. In effect, the Town updated its population numbers at a time when other Wake County municipalities did not. Because many shared revenues are distributed based on Cary’s percentage of the Wake County population, the updated population figures allowed the Town to receive a higher proportion of shared revenues than other Wake County municipalities.

Subsequently, the 2000 Decennial Census resulted in only slight population growth over Cary’s 1998 special census figures. Cary’s Wake County neighbors, however, had experienced high levels of growth since the 1990 census, and their portion of shared revenues increased significantly, leaving a smaller share for Cary. This trend is expected to continue as Cary transitions from a “rapid growth” community to one of “managed growth.”

Descriptions of major revenue sources and their related trends follow. Graphs showing nine years of actual data, FY 2007 estimated revenues, and FY 2008 budgeted revenues appear for each revenue category.

Ad Valorem Taxes = $57,392,095

This includes the current Ad Valorem Taxes and the Prior Year Property Taxes, and Penalties & Interest.

Ad Valorem Taxes Revenue Detail:

· Current Year Ad Valorem Taxes = $57,022,095

The Ad Valorem tax on property is the Town’s major revenue source, representing 53% of all General Fund revenues. Property taxes are assessed and collected by the county and remitted to the Town throughout the year. The property tax rate for fiscal year 2008 is 42 cents per $100 of assessed valuation, the same as the FY 2007 rate. Ad Valorem tax revenue continues to rise in total even though the rate of increase is slowing. The FY 2008 budget includes a 5.8% projected increase over the

FY 2007 revenue estimate for this category.

· Prior Year Property Taxes: = $300,000

This revenue consists of late property tax payments from previous fiscal years received in the current fiscal year. FY 2008 is budgeted to be the same as estimated FY 2007 revenues.

· Penalties & Interest = $70,000

This revenue comes from the fines and interest applied to overdue property taxes. FY 2008 is budgeted to be the same as estimated FY 2007 revenues.

Other Taxes & Licenses = $26,774,574

The major revenue source within this category is Wake County Sales Tax, budgeted in FY 2008 at $11.1 million for the one-cent tax and $13.4 million for the two half-cent taxes. Prior to FY 2000, the two half-cent taxes were budgeted in the Capital Reserve Funds. The one-half cent sales tax (Article 44) approved in December 2002 is projected to be $4.5 million.

“Other Taxes and Licenses” also includes ABC Revenue, Privilege Licenses, Occupancy Tax, and Pet Licenses.

Other Taxes & Licenses Revenue Detail:

· ABC Revenue = $316,595

ABC taxes are distributed quarterly by the county alcohol control board based on the ad valorem levy from the previous year after expenses are deducted for law enforcement, education, and rehabilitation. The FY 2008 budget is projected to decrease by 9.7% from the estimated FY 2007 revenues.

· One-Cent Sales Tax (Article 39) = $11,094,631

Wake and Chatham Counties levy a one-cent local sales tax on all retail sales, lease, or rental of tangible personal property, rental of motel or hotel rooms, and rendering of services. Proceeds of the one-cent sales tax are distributed to municipalities in each respective county by a formula based on county point of sale. Once the county share is determined, municipalities and the county itself receive funding based on population within the respective County as recorded by the North Carolina Office of State Planning. Sales tax receipts are received monthly with the fourth quarter of each calendar year traditionally being the highest and first quarter being the lowest. The one cent sales tax revenues dipped in FY 2003 to $7.8 million in association with the declining economy, but have experienced a strong recovery since that time. FY 2008 revenues are expected to increase 4.0% over FY 2007 and the FY 2007 budget represents a 6% increase over expected FY 2006.

· Half-Cent Sales Taxes (Articles 40 and 42) = $8,884,492

The North Carolina General Assembly authorized the Half-Cent Sales Tax as a local county option. Two half-cent sales taxes exist and both are collected statewide and then distributed to counties on a per capita basis. Wake and Chatham County’s total is then distributed to the municipalities therein and the county itself based on population as recorded by the North Carolina Office of State Planning. Prior to FY 2000, 70% of the total was budgeted in the General Capital Reserve and 30% in the Utility Capital Reserve. In FY 2000 the Local Government Commission began requiring all Sales Tax Revenue to be budgeted in the General Fund as unrestricted revenue. FY 2007 total revenue is estimated to increase by 20% over FY 2006 and another 8% growth is projected during FY 2008. Sales tax receipts are received monthly with the fourth and first quarters of each calendar year being the highest and lowest, respectively.

· Half-Cent Sales Tax (Article 44) = $4,522,127

The North Carolina General Assembly, as a local county option, authorized this Half-Cent Sales Tax with proceeds going to counties and municipalities. Both Wake and Chatham Counties approved this new half-cent sales tax which took effect in December 2002 as a replacement for the repealed Intangibles Tax and Inventory Tax Reimbursements, which were both repealed effective July 2003. This tax is different from the other sales taxes because it is not charged on food, and its distribution method is 50% on point of sale and 50% on per capita. FY 2008 is budgeted at an increase of 6.0% over FY 2007 estimated receipts.

· Business Licenses = $1,351,229

The Town levies local taxes on the businesses, trades, and professions operating within its corporate limits. The fee schedule is based on gross receipts and the nature of the business. Actual annual revenues can fluctuate considerably depending on whether fees are collected in June (the end of the fiscal year) or July (the beginning of the next fiscal year). This revenue source is not accrued from one year to the next, so the revenue shown is for privilege licenses paid as of June 30th. New privilege license requests have been slightly more numerous recently following several years of no growth, but the revenue growth recognized in FY 2006 was a result of the new rate structure implemented as part of the FY 2006 budget process that impacted revenues collected at the end of FY 2006 and those anticipated at the beginning of FY 2007. Thus, the FY 2007 revenues are estimated at a 10.1% increase over the FY 2006 revenues and another increase of 3% is budgeted for FY 2008.

· Occupancy Tax = $600,000

The occupancy tax is 6% of the net receipts reported for all hotel and motel rooms in Wake County. Because Cary receives a flat 5% of the total Occupancy Tax revenues collected in the County, there is very little correlation between hotel/motel activity in Cary and the revenue the Town receives. Historical figures indicate Cary contributes approximately 20% of all Occupancy Taxes collected within Wake County. FY 2007 is estimated at an increase of 0.2% over FY 2006 and a 1.7% increase is expected FY 2008 over FY 2007 estimated receipts.

· Pet Licenses = $5,500

The Town collects a one-time license fee from pet owners for every dog and cat tag issued. The current license fees are $20 for non-neutered pets and $10 for neutered pets. In FY 2006, the Town experienced a large growth in pet tags issued based on the requirement that owners show proof of registration before being allowed access to the Town’s new dog park, which opened in January of 2006, therefore, collected 187% more in FY 2006 over FY 2005. The FY 2007 is estimated now at a decrease of 33.7% from FY 2006 and another decrease is budgeted of 35.3% in FY 2008.

Intergovernmental Revenues: $5,425,946

The major revenue sources in this category are the Utilities Franchise Tax and Wireless Communications Sales Tax, which are budgeted at a combined $4,216,235 in FY 2008.

The drop in FY 2002 is due to the Governor withholding $2.4M to help balance the State Budget.

FY 2004 includes Disaster Reimbursement for the Ice Storm in December 2002 and Hurricane Isabelle.

Intergovernmental Revenues Detail:

· Utilities Franchise Tax = $2,586,480

The State of North Carolina levies this tax on utility company gross receipts at a rate of 3.22%. The state shares a portion of these taxes (3.09% of gross receipts of electric, gas, telephone, and street transportation companies) with local governments. Utilities Franchise taxes are received quarterly with the highest receipts received in the fourth quarter of the fiscal year. Governor Easley withheld a portion ($1.7 million) of this revenue in FY 2002 to help balance the state budget. The FY 2008 budget is projected to remain steady with estimated FY 2007 revenues.

· Wine and Beer Tax = $486,702

The State of North Carolina levies this tax on alcoholic beverages and a municipality may share in the revenues if beer or wine is sold legally within its jurisdiction. The proceeds are distributed based on the Town’s population as recorded by the North Carolina Office of State Planning. Governor Easley withheld $400,000 of this revenue in FY 2002 to help balance the state budget. The FY 2008 budget is projected to remain unchanged from estimated FY 2007 revenues.

· Wireless Communications Sales Tax = $1,629,755

Prior to FY 2004 this revenue was budgeted with the Utility Franchise Tax. This revenue represents the Town’s share of the State gross receipts tax on wireless telecommunications providers and like the Utility Franchise Tax, revenue is received quarterly. The FY 2008 budget is projected to remain unchanged from estimated FY 2007 revenues.

· Rental Vehicle Tax = $50,000

Session Law 2000-2 was signed into law on May 17, 2000 and is entitled “An Act to Repeal the Property Tax on Certain Vehicles Leased or Rented under Retail Short-Term Leases or Rentals and to Replace the Tax Revenue with a Local Tax on Gross Receipts Derived from Retail Short-Term Leases or Rentals”. As a result of this law, the new gross receipts tax was put into place and the Town of Cary recognized revenue beginning in December 2000. The FY 2007 is estimated to decrease by 11.2% from FY 2006, and FY 2008 is budgeted at a 7.4% decrease from FY 2007.

· COPS Grant = $0

Funding for the COPS Universal Hiring Program (UHP) dropped sharply as the nation increased its focus on homeland defense funding. As a result, Cary has not been awarded any new COPS UHP funding since FY 2000 and all the officers have phased out of the program. As of FY 2004, the Town no longer receives any funding from the COPS UHP program. In FY 2005 Cary received a separate COPS grant totaling $247,369 for the purchase of in-car video systems for police cruisers. This grant provided one-time funding and no new funding is expected in FY 2008.

· High School Resource Officer Reimbursement = $151,352

This State revenue is a fixed reimbursement ($37,838 per officer) for the provision of one police officer in each of the four public high schools in Cary (Cary, Green Hope, Middle Creek and Panther Creek).

Permits and Fees: $5,360,708

Fees for new building permits are the major revenue source for this category, budgeted at $3 million in FY 2008. This category also includes various permits and fees detailed below.

The revenues in the Permits and Fees category depend heavily upon the level of new construction activity.

Permits and Fees Revenue Detail:

· Building Permits = $2,977,154

The Town charges these fees for providing construction permits, plan reviews, and inspection services to applicants. Applicants must pay the fees prior to permit issuance. FY 2008 revenues are budgeted at a 10% decrease from the estimated FY 2007 revenues. For single family residential construction, fees

are based on the square footage of the residence.

· Pavement/Curb Cuts = $7,500

The Town charges this fee for permission to cut and repair a curb. FY 2008 is budgeted the same as the FY 2007 estimated revenue. FY 2007 is estimated at a 28.9% decrease from FY 2006.

· Rezoning/Variance Fees = $40,000

These are charges the Town collects to cover the administrative and advertising costs of public hearings for a rezoning or variance. FY 2008 revenue is budgeted at a 5.3% decrease from FY 2007.

· Site Plan/Final Review Charge = $145,825

The Town collects a fee from individuals to cover the costs of filing and reviewing site plans and for the final review of all subdivisions. FY 2008 is budgeted the same as the estimated revenue amount in FY 2007.

· Inspection Fees = $1,035,000

These fees include commercial site inspections, street sign inspections, extra inspections, and re-inspection fees. Applicants pay commercial site inspection fees of $515 per developed acre when a site plan approval is granted. Street sign inspection fees are $45 per sign. Re-inspection fees are charged when an inspector is called back out to a site, and an additional fee is charged for inspections conducted at night or on weekends. The FY 2008 Inspection Fee revenue is budgeted at a decrease of 10% from the estimated FY 2007 revenues.

· Sign Permits = $24,500

These fees are charged for the placement of temporary and permanent signs. FY 2008 is budgeted the same as the FY 2007 estimated receipts.

· Traffic Impact Analysis Reimbursement = $362,000

Developers must pay this fee before site plans are submitted for analysis of traffic impacts from the development. The Town charges developers 90% of the cost and the Town pays for the remaining 10%. The Town also pays for traffic studies related to park and capital projects. The average cost of a study is approximately $8,500. FY 2008 revenue is budgeted at a 37.3% increase over the FY 2007 estimated revenue, which is estimated at a 25.1% decrease from FY 2006.

· Grading Permits = $305,590

The Town charges these fees to developers (commercial and residential) based on the amount of acreage denuded by the development. These fees were changed in FY 1999 from a flat charge to

a rate of $165 per denuded acre. Effective FY 2007 budget year the fee was increased to $500 per denuded acre. FY 2007 revenue estimate is based on estimated number of acres that will be denuded creating an increase of 43.9% revenue over the FY 2006 actual revenue. FY 2008 is budgeted the same as the FY 2007 estimated revenue.

· Watershed Maintenance Fees = $440,000

The Town collects a fee of 15% of the actual cost of a water quality structure from the developer when the development project is completed. This is a State requirement to ensure that the water quality device will be maintained. The FY 2007 estimated budget is up 10.1% over FY 2006 actual revenue. FY 2008 is budgeted at the same rate as the estimated FY 2007 revenue.

· Fire Permits = $23,139

The State Fire Code requires that these fees be charged for additional inspections. FY 2008 is budgeted the same as the FY 2007 estimated revenue.

Charges for Sales and Service: $9,114,431

The major revenue source for this category is the Solid Waste and Recycling Fee, which is budgeted at $5,076,000 for FY 2008. The dip in FY 2001 revenue was created when the fee was lowered from $11.50 to $7.67 per month prior to it being increased to $11.50 starting in FY 2006.

Other charges included in this category are Used Appliance Fees and all Recreation related fees.

Charges for Sales and Service Revenue Detail:

· Sanitation Fees = $5,076,000

Beginning in the fall of FY 2006, the Town began the process of switching from backyard solid waste collection to a more efficient curbside collection process. The Town will still provide residential customers with once a week collection service for solid waste and recycling. In FY 2001, this fee was reduced from $11.50 per month to $7.67 per month, where it remained through FY 2005. In FY 2006 the monthly fee was increased to $11.75, which represented an approximate 75% cost recovery. Due to population growth, the FY 2008 budget reflects a 4.4% increase over estimated FY 2007 revenues. (The historical level of this monthly fee is presented in the graph below.)

· Used Appliance Disposal Fees = $24,867

These fees are collected from residents who request that the Public Works/Utilities Department transport a used appliance to the county landfill. The FY 2008 budget is projected at an 8.2% decrease from the estimated FY 2007 revenues.

· Recreation Program Fees = $713,000

These fees are collected from participants in Town recreation activities such as classes, camps, workshops, trips, events, and ropes course programs held at Community Centers, the Senior Center, the Stevens Nature Center and Bond Park. FY 2007 is estimated at a 5.2% increase over the FY 2006 actuals. FY 2008 revenue is budgeted at a 5% increase over FY 2007 expected revenues. Program participation is increasing due to new facilities and programs offered. As part of the FY 2007 budget, council approved fee adjustments in many parks, recreation and cultural resources programs that are expected to also increase total revenues slightly.

· Athletic Fees = $588,601

These fees are collected from participants in youth and adult sports programs such as softball, volleyball, and basketball leagues and short duration camps and clinics. FY 2008 revenues are budgeted 1% higher than expected FY 2007 receipts due to an increase in tournament rentals. All adult programs recover direct costs such as instructor costs and supplies. Youth programs are largely subsidized by the Town.

· Tennis = $705,000

During FY 2004 the Town of Cary took over the operations of the Tennis Center. New York Tennis had previously operated the facility under a contract arrangement and paid the Town $2,000 a month for lights. However, due to performance issues which hinged upon NY Tennis’ lack of profitability, the Town assumed full operational responsibility in February, 2004. New programs are being offered due to the addition of a new Head Tennis Pro in FY 2005 and a Junior Tennis Pro in FY 2006, therefore, FY 2007 is estimated at 13.6% higher than FY 2006. The revenue budget for FY 2008 is budgeted at another 12% increase over estimated FY 2007 revenue.

· SAS Soccer Park = $620,500

The Town of Cary took over operations and maintenance of the SAS Soccer Park in August 2004. During FY 2007 the town entered into a contract with Triangle Professional Soccer who acquired a professional men’s soccer team, the Carolina Railhawks. This stated revenue amount is a total of various types of revenues collected. The breakdown is as follows: concession sales, program fees, ticket sales, sponsorships, and rental and events. FY 2008 is budgeted at a 9.4% increase over FY 2007 estimate which is estimated at a 2.6% increase over FY 2006 actual total revenue.

· USA Baseball - $335,375

The USA Baseball complex officially opened in June 2007, therefore, this fiscal year of 2008 will be the first complete year of operations. The revenue consists of concessions, program fees, sponsorships, and rentals and events.

· Skate Park - $109,000

The Town of Cary began operating the Skate Park in FY 2005. The revenue consists of pro shop sales, concessions, program fees, memberships, and sponsorships. FY 2008 budget indicates an 0.9% increase over FY 2007 estimated collections which are estimated 3.9% higher than FY 2006.

· Arts and Crafts = $255,828

These fees are charged to participants in Town-sponsored arts and crafts activities. FY 2008 revenues are budgeted at a 2.3% increase over FY 2007 estimated revenues.

· Festivals = $110,813

The Town of Cary assumed all accounting responsibility for the Lazy Daze and Spring Daze festivals effective June 2003. FY 2005 was the first year that the Town budgeted for these revenues and expenditures.

· Rents-Recreational Facilities = $201,000

These fees are collected by the Parks, Recreation and Cultural Resources Department for rental of Town recreational facilities. FY 2008 revenues are budgeted at a 5.1% increase over the estimated FY 2007 receipts; which is estimated at a 9.1% decrease from FY 2006 actuals. The FY 2005 actuals reflect a loss of rental revenue at the Herb Young Community Center due to the Town using a portion of the Center as a temporary Council Chambers during calendar year 2004 and most of 2005 while the Town Hall renovation and expansion was in process. Normal rental activity began taking place mid FY 2006, however, rental of the Page-Walker Arts & History Center was removed from this account mid FY 2007 and tracked separately in a separate category titled Cultural Arts Rentals which explains the decrease in FY 2007 from FY 2006.

· Cultural Arts Rentals = $44,700

Fees are collected by the Parks, Recreation and Cultural Resources Department for rental of the Page-Walker Arts & History Center for meetings, events and private parties. This rental revenue was previously included in the Recreational Facilities Rental category above. It was separated into this category mid FY 2007, therefore, FY 2008 is budgeted at a 49% increase above FY 2007 which is estimated at $30,000.

· Rents-Fire = $215,782

These are fees collected by the Town Public Works/Utilities and Fire department for equipment rental and are budgeted the same as the FY 2007 estimated revenue figure. The FY 2007 estimate, however, reflects a 44.3% increase over FY 2006.

· Morrisville 911 Service = $0

In February 2005, Morrisville switched from Cary’s 911 center to Wake County’s 911 center. This change reduced the call volume and radio traffic in our emergency communications center, but it also reduced the Town’s revenue. The Town no longer receives any revenue from Morrisville for 911 services.

· Other Minor Revenues

Recreation Retail Sales = $31,526 - monies from the sale of articles by the Parks, Recreation & Cultural

Resources Department.

Recreation Ticket Sales = $38,299 - tickets sold for performances such as youth theatre, music series, etc.

Dog Park = $39,140 – day or annual passes for the privilege of using the facility which opened January 2006.

Hazardous Waste Reimbursement = $5,000 - the cost to clean up hazardous waste spills which are then

billed to the offender.

Investment Earnings = $ 2,782,082

Investment Earnings are the interest earned on the portion of investments attributable to the General Fund. Transfers to the General Capital Reserve can significantly reduce cash balances, and therefore investment earnings, in the General Fund. Earning levels are a function of interest rates, the amount available for investment, and the choice of investments. Lower interest rates during the economic slowdown over the past few years are the primary reason for the recent decline. Due to the proceeds of a $47 million general obligation debt borrowing for street and park capital projects being available for temporary investment during FY 2007 as the projects spend funds throughout the year, investment earnings increased sharply over FY 2006. FY 2008 investment earnings are projected based on an average investment yield of 4%.

Miscellaneous = $1,661,081

Actual revenues were much higher than normal in FY 2002 due to a $1.1M one-time reimbursement received from Wake County for previously incurred project costs paid for with General Fund revenue. Starting in FY 2003, Employee Dental Premiums of $160K have been moved from the General Fund to the Health and Dental Fund.

The major FY 2008 revenues in this category are Cable TV Franchise Fees $722,190, Recycled Goods $108,000, and Cellular Tower Lease Proceeds $486,515.

The Miscellaneous category also includes Court Costs, DMV Rental Revenue, Soil Erosion Fines, Donations and Miscellaneous Revenues.

Miscellaneous Revenues Detail:

· Miscellaneous Revenues = $220,000

These are revenues that do not fit into any other revenue category such as bank charges, returned check charges, fingerprinting fees and sale of town maps. FY 2008 revenue is budgeted at a 15.4% decrease from the FY 2007 estimate.

· Cable TV Franchise Fees = $722,190

The Town collects a franchise fee of 5% of the gross annual revenues of the local cable TV franchise (Time Warner). Sixty-percent of the revenue goes to the General Fund and forty-percent goes to the General Capital Reserve Fund. In 2002 the Federal Communication Commission (FCC) ruled that revenue from cable modem services could not be used in computing the franchise fee. Then in July 2003 the FCC lifted Cary’s authority to regulate cable rates due to the competition Time Warner faces from satellite providers in the Cary area. FY 2008 is budgeted to remain unchanged from the estimated FY 2007 revenues. The NC General Assembly approved a change related to this revenue source via its approval of house bill 2047 regarding video franchising during the 2006 short legislative session which becomes effective January 1, 2007. This bill makes the state the franchising authority for video services and preempts local government franchising authority. Under this arrangement, the franchising fee revenue in its current form is expected to be made up through state distribution of local shares sales tax collections on telecommunications, cable, and satellite television services.

· Court Costs = $8,000

This revenue includes payments to the Town for civil or criminal penalties. The FY 2008 budget is budgeted to decrease by 20% from estimated FY 2007 revenues.

· Recycled Goods = $108,000

This revenue results from the sale of recycled goods, like newspapers, glass, and plastic bottles, on the private market. This revenue source fluctuates substantially from year to year primarily based on the market price for the recyclables. FY 2008 revenues are projected to decrease 73.9% from estimated FY 2007 levels primarily due to the Town’s phased conversion to a dual stream collection process from its current 11 stream process. While total recycled good revenues is expected to decline, more items will be diverted from the landfill, which will significantly lower operating costs.

DMV Rental Revenue = $47,850

These funds are lease payments from the State Division of Motor Vehicles to operate a Licensing Examiner’s facility in the Cary Depot building, which the Town of Cary owns.

Cellular Tower Lease Proceeds = $486,515

These funds are from lease payments made by cellular telephone service providers to the Town for the lease of property on which cellular towers are built. These leases are short-term leases that can be cancelled within 30-90 days.

Donations/Contributions = $48,526

Donations are budgeted if there is an anticipated ongoing commitment. Equal expenditures are budgeted as well but are only approved to be spent at the level of donation. FY 2008 donations are budgeted for the following programs: Trees for Cary, Teen Forum, Parks Scholarships and Memorial Benches.