Council Work Session, Council Meeting, Cary Tennis Classic Board, CAMPO, and Juneteenth

Council Work Session

Monday afternoon the council held a work session on bond ratings and the budget.

In the staff presentation on bond ratings they pointed out that Cary has the highest bond rating from all three major rating agencies: S&P Global, Moody’s, and Fitch. Cary is one of the few communities in the country that has the highest ratings from all three bond rating agencies which allows us to get the lowest interest rate possible when financing capital projects. The ratings are determined by financial performance and flexibility, debt factors, economic base, managerial factors (staff and council).

After the bond ratings presentation the council held their second work session on the budget. Here are some notes, takeaways, and thoughts from the latest work session:

June 10th work session:

  • The main takeaways from this year’s budget:
    • Market conditions are resulting in increased costs for core services, as well as reduced revenue growth.
    • Recent planned utilization of general fund balance, combined with unprecedented sales tax revenue, allowed Cary to defer tax increases until now.
    • The FY 2025 Recommended Budget ensures Cary remains well positioned for the future, including investment in priority areas without further expansion, while maintaining services and infrastructure.
  • The three main factors impacting the budget are a flat sales tax, a period of inflation, and an expansion in programs.
  • The breakdown of the 8 cents above revenue neutral can be summarized as three cents due to inflation, two cents due to program expansion (parks and the environment), two cents due to debt service, and one cent due to General Fund Reserve replenishment.
  • The town will provide an online tool with a slider on the tax rate to help figure out exactly how much a property owner’s tax will be.
  • Chris Nida from the NC League of Municipalities said, “The current sales tax environment seems to bear much more resemblance to the years prior to the pandemic than it does to recent years.”
  • Sales tax revenue for this fiscal year is about $4 million under budget. This fiscal year we are budgeting 3% sales tax revenue growth which is lower than pre-pandemic growth.
  • The Cary Community Plan predicted the slowing in the town’s growth, “The high quality of life enjoyed in Cary has propelled its growth up until now. However, national, regional, and local trends suggest a changing context for the town…”
  • Since 1998 we have added:
    • 26 new parks
    • 85 miles of greenway
    • 1790 acres of park land
    • 4 new fire stations and 1 relocated fire station
    • 208 miles of streets
    • 35,153 utility customers
  • What this budget does for General Government:
    • Supports 5% personnel increase for merit
    • Sustained investment in employee training and investment
  • What this budget does for Public Works:
    • Supports new work order and asset management platform
    • Makes significant investments in facility planning and maintenance
    • Continues to invest in equipment replacement
  • What this budget does for Public Safety:
    • Sustains investment in Public Safety personnel
    • Reinvents and reimagines public safety training
    • Enhances preparedness for critical and unusual events through investments in new technology platforms
  • What this budget does for Parks, Recreation, and Cultural Resources:
    • Funds the first year of operations for the Downtown Cary Park
    • Invests in critical capital maintenance
  • What this budget does for development and infrastructure:
    • Invests in the implementation of the Urban Forest Master Plan
    • Expands our investment in historic preservation
    • Fulfills development and parking obligations

May 23rd work session:

  • The biggest factors impacting this year’s budget are a flat sales tax, inflation, and program expansion. Having said that, another big factor is that we are a maturing community. That is, the subsidizing of taxes with growth is basically over.
  • While almost everyone will agree that police and fire are essential to our community, other service areas have become a high priority for citizens as well. For example, our urban forestry program, our recycling program (even though we pay to recycle), parks programming, environmental initiatives, affordable housing initiatives, and more.
  • Foundational values for the budget include hiring and retaining the best of class of employees, achieving, and maintaining the highest levels of service, and accommodating a growing community.
  • Key takeaways from this budget include:
  • Market conditions are resulting in increased costs for core services, as well as reduced revenue growth.
  • Recent planned utilization of general fund balance, combined with unprecedented sales tax revenue, allowed Cary to defer tax increases until now.
  • The FY 2025 Recommended Budget ensures Cary remains well positioned for the future, including investment in priority areas without further expansion, while maintaining services and infrastructure.
  • A chief economist from our area says “The latest inflation data surprised the financial markets, revealing that the higher-than-expected inflation reported earlier this year persisted into March. The sharp moderation in the CPI since mid-2022 appears to have pivoted to a slower trajectory.”
  • Sales tax revenue has flattened. It was $43.5 million in FY2021, $52.3 million in FY2022, $57.1 million in FY2023, and a projected $58.3 million in FY2024 ($4 million under budget). The proposed budget is estimated to be $59.6 million for this upcoming fiscal year.
  • The Cary Community Plan expected the town’s growth to slow: “The high quality of life enjoyed in Cary has propelled its growth up until now. However, national, regional, and local trends suggest a changing context for the town…”
  • The influx of population (growth) has subsidized the tax rate for years. That has now ended. Residential permits in FY2023 are the lowest in decades.
  • A comparison of Cary from 1998 and today showed a big increase in size, amenities, and wealth. This in turn has significantly increased our maintenance and operating costs.
  • Parks expanded from 13 to 39.
  • Greenways expanded from 10 miles to 95 miles.
  • Park land expanded from 900 acres to 2690 acres.
  • Fire Stations expanded from 5 to 9.
  • Town owned streets expanded from 302.22 miles to 510 miles.
  • Utility customers expanded from 29,583 to 64,736.
  • Incorporated miles increased from 40.43 to 61.05.
  • The population increased from 85,000 to 187,000.
  • The median household income increased from $54,700 ($104,023 in today’s dollars) to $125,317.
  • The median single-family home assessed value increased from $108,800 ($206,906 in today’s dollars) to $647,748.
  • Property Tax went from $.054 to the proposed $0.325. The property tax was $587.52 ($1117.29 in today’s dollars) to $2,105.18.
  • Cary’s change in property values in this revaluation shows an average increase of 56% for residential and 39% for commercial. Wake County averaged 53% and 45%.
  • Cary’s tax base is 72% residential and 28% non-residential.
  • Cary’s total assessed value was $34.8 billion in 2023 and is 51.8 billion now which is a $17.0 billion increase (48.9%) in one year.
  • The proposed tax rate will increase property taxes an average of $649 per year.
  • Cary has the lowest proposed tax rate at 32.5 cents followed by Apex at 34 cents, Holly Springs at 34.35 cents, Morrisville at 35 cents, Raleigh at 35.5 cents, Fuquay-Varina at 36.8 cents, Wake Forest at 42 cents, Wendell at 42 cents, Knightdale at 45 cents, Garner at 52 cents, and Zebulon at 54 cents. Wake County will be at 51 cents.
  • Cary tax rate compares well nationwide to communities like ours: Franklin, Tennessee at 32.6 cents, McKinney, Texas at 42.8 cents, Naperville, Illinois at 66.5 cents, and Scottsdale, Arizona at 51.5 cents.
  • A penny on the tax rate was $3.5 million in 2023 and is now $5.1 million.
  • This year’s budget is $503.5 million which is a 3.9% decrease. Operating costs are $384.3 million, an 8.9% increase, and capital expenditures are $1129.2 million, a 29.9% decrease.
  • The budget includes 27% public safety, 16% public works, and 11% Parks. The budget by type is 57% personnel, 27% operations, 10% debt, and 6% other.
  • The budget includes a $1 increase for solid waste and recycling which only covers 92% of the cost. It also includes a utility rate increase of 3%.
  • The downtown park will have its first year of operations and is budgeted at $6.8 million.
  • Other Important priorities reflected in the budget include parking decks, action sports improvements, park facility maintenance, greenways, historic preservation, open space, solar initiatives, urban forestry, environmental initiatives, transit projects, firetruck replacement, water meter replacements, water line maintenance and upgrades, sewer line repair and replacements, sidewalks, street improvements, and an adaptive stormwater approach strategy. Two of the biggest increases include $5.8 million for housing and $2.6 for environmental initiatives.

The June 17th budget work session will focus on the council’s follow-up questions. Some of the ideas council members have floated were to sell historic structures if they are not part of a plan (they are still protected because they are on the national historic registry). Other topics included sidewalk budgets, police mobile command center, funding of the Chamber of Commerce, duplicate IT software, increase in employee benefit costs, vehicle installment purchases, paying for elections, the environment budget, the police budget, solid waste and recycling costs, etc.

Council Meeting

The council held its first regularly scheduled meeting of June on Monday. The agenda included six consent items, three public hearings, and one discussion item. Council member Bush pulled the Bel Canto item from consent to be added to discussion. The rest of the consent was passed unanimously.

The first public hearing was the second public hearing for the FY2025 budget. There were a few written comments and a couple of speakers who were not in favor of the budget because of the proposed tax rate. The council will vote on the budget and the tax rate at the June 27th meeting.

The next two public hearings were for annexation requests. One to connect to utilities and one related to a previously approved rezoning. These hearings had no speakers, and the annexations were approved unanimously.

The first discussion item was for a 2024 Bond Referendum. During the May 2, 2024, Quarterly Meeting, Council directed staff to begin taking the required steps tohold a bond referendum for Parks and Recreation and Housing projects on November 5, 2024. The legal process associated with holding a referendum requires separate Council actions over several months, the first of which is to adopt a Preliminary Findings Resolution, which documents Council’s conclusions about using debt and authorizes staff to seek approval of the proposed referendum from the N.C. Local Government Commission. After a few comments from council this was approved unanimously. You can find out more about the bond here.

The last discussion item was the Bel Canto rezoning which was pulled from the consent agenda by council member Bush. There was an extensive discussion by council with council member Bush arguing for conditions that required affordable housing and council member Craig pointing out that there were too many unknowns. The rest of the council was in favor of the project mainly because even without conditions over 50% of the project would be studio and one-bedroom apartments which technically are affordable. While I agreed with Ms. Bush’s comments about the need for conditions, what swayed me was the requirement of structured parking spaces at per bedroom at $35,000 per space. This, for the most part, guarantees one bedroom and studios.

The council meeting concluded after about two hours.

Cary Tennis Classic Board

The board for the Cary Tennis Classic met Monday night. The Cary Tennis Classic, formerly the Atlantic Tire Championships, will have both a women’s and men’s professional tournament this year. In our board meeting topics included Anthony Blackman scholars, electronics and streaming during the tournament, ticket pricing, community events, promotion and the media, and other tournament specifics. Our next meeting will be on July 8th.

CAMPO

Wednesday afternoon I participated in a meeting of the Executive Board for CAMPO (Capital Area Metropolitan Planning Organization). The agenda included three consent items, one public hearing, and seven discussion items.

The board was presented information on Complete 540, the North Harnett County Transit Study, the Wake Transit Plan, FY2024 Coordinated Public Transit, FY2026 Locally Administered Projects Program, and Amendment #5 to the 2024-2033 Transportation Improvement Program.

The board unanimously approved SPOT 7 (Statewide Programming & Target Modal Mixes, and FY2025 Wake Transit Work Plan and Project Groupings and Deliverables.

Business NC Interview

Thursday I was interviewed by Business North Carolina magazine. The reporter was interested in soccer especially since we had just finished a very successful TST tournament. We talked about the Wake Med facility, soccer events held there, and the potential future of the park and surrounding area. Our conversation was about ten minutes.

Juneteenth Celebration

Saturday afternoon I joined council members Kohn-Johnson and Bansal at the Juneteenth Celebration at the Downtown Cary Park. I provided a brief welcome and read a proclamation:

DESIGNATING JUNE 19, 2024,

AS CARY’S JUNETEENTH CELEBRATION

WHEREAS, June 19, 1865 was the date when Union soldiers landed in Galveston, Texas with the news that the Civil War was over and thus represented the last notification of the end of slavery; and

WHEREAS, that date became known as Juneteenth and has grown to become a national event celebrating this significant day in our history, with special meaning for our African American community; and

WHEREAS, Juneteenth celebrates African American freedom and achievement and is a day of liberation, resilience and fortitude; and

WHEREAS, Cary citizens came together to host the inaugural Juneteenth Celebration in 2019 as a way to joyously embrace freedom; and

WHEREAS, The Town of Cary observed Juneteenth as an official Town Holiday for the first time on Friday, June 18, 2021.

NOW, THEREFORE, I, Harold Weinbrecht, Jr., Mayor of the Town of Cary, North Carolina, on behalf of the Cary Town Council, do hereby proclaim June 19, 2024, as Cary’s Juneteenth Celebration 2024 and call upon all citizens to join in the celebration.

PROCLAIMED this 19th day of June, 2024.

This was our fifth year of celebrating Juneteenth.

Town Manager’s Report

Sean’s Message

I want to wish all of the dad’s out there a happy Father’s Day this weekend. Growing up, my dad, Ted, was such a positive, constant presence for me. Dad’s recently moved to Colorado to start a new and exciting chapter in his life, and I couldn’t be happier for him.
As Emma’s dad, I’m starting a new chapter, too, as Michele and I proudly watched her graduate from high school last weekend, and we all prepare for what our lives will be like as Emma goes off to college.
As dad’s go, I’ve been pretty lucky, both in having a great dad and in having the greatest daughter to be “Daddy” to.
Enjoy your weekend.
Sean

Sister Cities Proclamation

Councilmember Jack Smith met with County Meath officials in Ireland, including Councilors Brian Fitzgerald, Chief Executive Kieran Kehoe, and Director of Services Des Foley. To celebrate the over 20-year Sister Cities relationship between Cary and County Meath, Smith presented a proclamation on behalf of the Mayor and Councilmembers.

All Hands – Opportunities Can Take Many Forms

This week, we held the quarterly All Hands meeting where the theme was “opportunities can take many forms.” Hundreds of staff who attended in person and virtually were treated to the Legacy of Leadership retreat video, followed by in-depth discussions of the budget and several staffing changes. Brittany Edwards hosted, and Town Manager Sean Stegall was joined by Deputy Town Manager Russ Overton and Assistant Town Manager Danna Widmar for the conversations.

Municipal Managers Meet in Cary

On Wednesday, Cary hosted the bimonthly Wake Municipal Managers meeting. We were proud to have the opportunity to welcome managers and assistant managers to the Mayton and Downtown Cary Park. The agenda was comprised of school system developments, bus fares, and new OSHA regulations affecting fire departments.

The Soccer Tournament (TST)

The six-day TST extravaganza was a triumph, thanks to the seamless coordination of multiple departments. Each day brought new challenges, but the team’s expertise and collaboration allowed for quick adjustments.

The event buzzed with excitement as 42,436 soccer fans from around the world enjoyed activities, including team activation areas and player interactions. Behind the scenes, the sports turf team ensured first-class playing surfaces, smoothly handled setup and teardown, and quickly transitioned to replacing the stadium field turf before this Saturday’s Courage match.

Ivey-Ellington Temporary Parking Lot Closure

The Old Library parking lot will be closed from June 17 to 19 for the installation of new stormwater lines in preparation for the upcoming rain garden at the Ivey-Ellington House. Barricades will block vehicles from entering Charlie Gaddy Lane while crews remove asphalt for the work. Once the project is complete, the parking lot will be temporarily restored with gravel until it is resurfaced with new asphalt later this summer.

Cary Towne Boulevard Sewer Repairs

On June 20, contractors will begin replacing approximately 30 feet of a 12-inch sewer line along the south side of Cary Towne Boulevard, adjacent to the former Cary Towne Center property. The excavation, pipe replacement, and pavement repairs are expected to take about three days. The outside eastbound travel lane will be closed daily from 9:00 a.m. to 4:00 p.m. during the work. The adjacent turn lane will remain closed until repairs are completed.

Additionally, another repair is needed on the same sewer main closer to the SE Maynard Road intersection. This work will be performed mostly from within the pipe, causing minimal ground-level disturbance. The repair will occur at night during periods of low sewer flow and will be completed within the same timeframe.

Complete 540 Phase 1 Update

NCDOT is over 90% complete with the Complete 540 Phase 1 project, which extends from the NC 55 bypass in Apex to the I-40/US 70 interchange. The highway is set to open this summer, with tolling consistent with other tolled sections of NC 540. Residents should note that the Bells Lake Road interchange ramps will open later in the year. Near that interchange, NCDOT operates a temporary asphalt plant to support the project. On June 22, NCDOT will host a 5k run on the soon-to-open turnpike.

2024 NCAA Division II Baseball National Championship

The eight-day NCAA Division II Baseball National Championship (World Series) was hosted by Cary, the University of Mount Olive, USA Baseball, and the Greater Raleigh Sports Alliance for the 14th time in the past 16 years.

On Saturday, in front of a crows of around 1,500 fans, Tampa University won the National Championship over defending champion Angelo State.

Upcoming Meetings

Town Council Meeting (Work Session)
Monday, June 17
5:00 p.m.

Environmental Advisory Board
Tuesday, June 18
6:00 p.m.

Public Art Advisory Board
Tuesday, June 18
6:15 p.m.

Greenway Committee
Thursday, June 20
6:00 p.m.

Mayor’s Mailbox

  • Five complaints about the proposed budget from the town manager.
  • A complaint from a former employee about hearing loss from heavy machinery.
  • Concerns about the loss of EMS for Chatham County residents of Cary.
  • A request to extend bus route #5.
  • A complaint about the town celebrating Pride: “…we are forced (through our tax dollars) to contribute to something that directly conflicts with our faith.”

Next Week

Next week’s activities include staff meetings, a council budget work session, a groundbreaking at Park Overlook, signing installment documents, and a Diwali Dance team meeting.

Well, that is all for this week. My next post will be on Sunday, June 23rd, 2024. Although I have Facebook and Twitter accounts those are not the best means of communication with me. Please send all Town of Cary questions or comments to Harold.Weinbrecht@townofcary.org and email personal comments to augustanat@mindspring.com.