CARY’S PROPOSED BUDGET TARGETS MORE THAN $80 MILLION TO TRANSPORTATION AND PARKS WHILE DROPPING THE PROPERTY TAX RATE BY NEARLY A DIME

Citizens will have several opportunities to weigh in

CARY, NC – It will take about $306 million next year and a tax rate of 33 cents to keep Cary one of the greatest places in America to live, work, and raise a family, according to the Fiscal Year 2009 proposed budget presented by Assistant Town Manager Ben Shivar to the Town Council at its regular meeting last night.  The budget, which is 20 percent lower than the current year’s adopted budget, includes $166,324,973 in proposed operations spending—a seven percent increase over the current year’s adopted operating budget; the $139,403,714 in proposed capital project spending is a 38 percent decrease from the current year’s adopted capital budget.  Citizens are invited to share their thoughts at either of two budget public hearings to be held as part of the regular Town Council meetings on May 29 and June 12. Meetings begin at 6:30 p.m. in the Town Council Chambers, 316 N. Academy St., in downtown Cary.  Fiscal Year 2009 runs from July 1, 2008 to June 30, 2009. 

“The proposed FY09 budget takes a very conservative approach to new spending while ensuring that Cary citizens will continue to enjoy the high quality programs and services our community is known for,” said Town Manager Bill Coleman.

Highlights of Coleman’s proposed capital plan include: $61.1 million for street improvements, downtown streetscaping and other transportation initiatives; $11.2 million for water projects; $37.7 million for sewer projects; $5.2 million for general government needs; $4.7 million for fire; and nearly $19.6 million for parks including $15.8 million for the renovation of old Cary Elementary and $1 million for open space acquisition.

Coleman’s proposed operating budget includes 25.25 additional staff (full time equivalents or FTEs) to maintain existing service levels throughout Cary’s 54.73 square miles; most new positions will be in police, technology services, finance, public works and utilities, and parks.  This increase in Town staff brings the total to 1,153.75, or about 8.9 staff members for each 1,000 Cary residents—one of the lowest staff-to-citizen ratios in the state for a large municipality.

“We continue to operate under the philosophy that adding people is the most expensive, long-term solution to any situation.  We work hard to find alternative ways to achieve our goals, only adding staff when it’s absolutely necessary,” said Coleman.

Under Coleman’s recommended plan the Town’s property tax rate will drop by nine cents from 42 cents to 33 cents per $100 valuation due to Wake County’s property revaluation last fall.  The 33 cent recommendation differs slightly from the 32 cent (rounded from 31.79) revenue neutral rate that results from NC General Statute calculations, which are based on averages.

“Instead of simply relying on generalizations from historical averages, we’ve been able to use actual construction permit records to estimate our community’s real tax base growth during the last year, which yields a revenue neutral tax rate of 32.38 cents,” said Coleman.  “Given Cary’s tradition of setting tax rates in penny increments and in light of growing economic uncertainties, I believe that rounding to 33 cents is the appropriate step for the coming year.”

For a $300,000 single family home, one cent on the Cary tax rate equals $30 in annual taxes, so at the proposed rate of 33 cents, the $300,000 homeowner would pay $990 in Cary property taxes.  For the Town of Cary as a whole, one cent on the tax rate in FY 2009 will generate about $1.9 million.

Under Coleman’s plan, citizens can expect their monthly solid waste fees to increase $2.25, from $11.75 to $14, to cover increasing operating costs and new recycling benefits.  And Cary water and sewer customers will see a modest 1.2% rate increase—about $0.77 more a month for a residential Cary customer using 7,000 gallons of water; the increase is needed to cover costs for the Western Wake Wastewater Treatment Plant.

In addition to the upcoming public hearings, the Town Council will examine aspects of the budget in great detail during worksessions on May 13 and May 27 at 5:30 p.m. at Town Hall.  Any changes to Coleman’s recommended budget will be listed separately and voted on in conjunction with approval of the entire budget at the regular Council meeting on June 26.  North Carolina law requires local governments to adopt a balanced budget by June 30 since the new fiscal year starts July 1.

The Town of Cary’s annual budget is a work and financial plan designed to implement the Town Council’s vision for the community as articulated in the organization’s mission statement and goals and initiatives:

Town of Cary Mission Statement:

At the Town of Cary we focus every day on enriching the lives of our citizens by creating an exceptional environment and providing exemplary services that enable our community to thrive and prosper.

Council Goals and Initiatives:

§       Achieve a well-planned community using innovative and proactive planning approaches and techniques

§       Ensure that roads, water and wastewater facilities, parks, and other infrastructure exist for the existing citizens and for the future needs identified in the comprehensive plan

§       Achieve a stable and strong financial position by accurately estimating, prudently allocating and managing financial resources

§       Achieve a high level of service to the citizens in a prompt, reliable, responsive, and cost-effective manner

The complete Town of Cary proposed budget is available at www.townofcary.org.  Printed copies of the budget are also available for review at the Town Clerk’s Office in Town Hall and at the Cary public library in downtown Cary and at the West Regional Library, 4000 Louis Stephens Drive.

###