Council Work Session
Monday afternoon the council held its last work session for the FY2025 budget. After a brief recap of the previous two work sessions the town manager and staff went over the 44 questions asked by the council. I highlighted a few of those questions and answers.
June 17th Work Session
- Median home prices in the comparison of localities outside of North Carolina. (Included in Work Session PP)
| Locality | Rate* | Median Home Price | Median Household Income |
| Cary, North Carolina | 0.325 | $647,748 | $125,000 |
| Franklin, Tennessee | 0.326 | $574,000 | $106,592 |
| McKinney, Texas | 0.428 | $400,400 | $113,286 |
| Naperville, Illinois | 0.665 | $482,600 | $143,754 |
| Scottsdale, Arizona | 0.515 | $651,800 | $104,197 |
| *All rates are per $100 of assed value Source: United States Census Bureau | |||
- Renters’ contribution (e.g. property tax vs. sales tax):
Residential tenants do not directly pay property taxes; however, the landlords pay taxes and likely pass this cost on to the tenant.
For commercial property, research shows “rents rise after tax changes sufficiently to fully absorb 80-90% of the change in landlord tax payments” (MIT Center for Real Estate). Article available here.
- Nancy Jones historic preservation funds carryover and FY25 specifics:
The FY 2024 budget included funding of $2.4 million for historic preservation efforts. At that time, staff believed this funding, and existing funding, would be sufficient to work on Nancy Jones and Ivey Ellington. After the move of Ivey Ellington in early 2023, and the subsequent decision to use the structure for Downtown Park staff, the Ivey Ellington construction efforts were prioritized to occur first. The final cost to update Ivey Ellington was significantly more than originally anticipated and required the full amount of available funding. The staff report detailing the rehabilitation efforts and funding for Ivey-Ellington House is available here. As a result, funding of $2.5 million in recommended bond funding was included in the FY 2025 budget to begin the process of restoring Nancy Jones.
At least two council members expressed interest in selling some of the historic structures in Cary. Most of the council believes this is something worth investigating but there should be a strategic plan for all the structures. All historic structures are protected.
- Sidewalk and street info for FY 2024 and proposed FY 2025:
- Benefit (customer savings) analysis of Aquastar:
Although the direct savings for customers are immeasurable, the benefit of AquaStar has been realized through the features it offers, particularly in terms of improved customer service and operational efficiency. AquaStar enhances customer service through features such as an online customer portal, monitoring, high usage calls, minimizing water loss, and providing real-time data. This results in increased response times and improves water consumption rates. Monitoring per capita water use with AquaStar allows the town to monitor trends in water usage in real-time and improve customer awareness of their consumption. Cary has seen a decrease in per capita water consumption since the implementation of Aquastar. AquaStar has resulted in a reduction in staffing requirements by 14 members with an estimated annual cost of $1.3 million for the Town.
AquaStar also contributes to environmental stewardship and sustainability by eliminating trips for meter readings and reducing the frequency of maintenance trips, thereby minimizing greenhouse gas emissions. This commitment aligns with our goals outlined in the current SERVE chapter (and future ENRICH chapter) of the Imagine Cary Community Plan.
Furthermore, AquaStar’s capacity to provide water consumption data and conduct audits facilitates improved planning and resource allocation. By identifying areas of water loss and optimizing systems through
- Is the West Chatham Sidewalk addition included in another budget item somewhere?
The two sidewalk projects near the West Chatham Street roundabout are already funded and under process. The project is currently in the planning stage, 75% of which was complete as of April 2024.
- How are the Downtown Park Operations impacted by the loss of revenue from the Gathering Place (House)?
Downtown Park operations are not materially impacted.
A full year of Gathering House revenue would equal $30,000.
- What is the impact of postponing the purchase of the Armored Response Vehicle by one year? Can we leverage Wake County’s services? What are we doing now?
Currently, we rely on the Wake County’s Mobile Command Center, which is operationally unreliable and often unavailable due to deployment elsewhere. Similarly, we have to borrow an armored rescue vehicle from the county or the FBI, but its availability is not guaranteed, and our officers cannot use either vehicle for training purposes. The response time when requesting these vehicles is another significant issue. In high-stakes situations, any delay can be detrimental. The recent CMPD shooting incident underscores the urgent need for this equipment to ensure the safety of both citizens and officers in hot zones. An ARV would greatly enhance our rescue capabilities and overall response effectiveness in critical situations. Waiting an additional year to purchase this vital piece of equipment compromises our ability to respond effectively to emergencies.
Once the vehicle is ordered, it will take 12-14 months for delivery with payment due upon delivery. Thus, even though we would be making the purchase in FY 25, we will not receive nor pay for the ARV until the following fiscal year. This timeline makes it even more imperative to begin the acquisition process as soon as possible to avoid further delays in enhancing our emergency response capabilities.
- How do other municipalities fund their chamber of commerce?
Most comparable municipalities do not have listed funding for their respective chamber of commerce but do acknowledge strategic partnerships with these organizations.
One council member suggested reducing what we pay the Chamber as a form of “belt tightening”. Another council member stated that this would send the wrong signal to our business community and the impact could be far greater than the amount of the reduction.
- Emergency Communication AI? What is the cost? Does this duplicate the services we currently have, such as Public Input, Zencity, and others being used for surveys?
The AI redaction solution utilizes Artificial Intelligence to assist in the redaction of specific words, addresses, and details in a 911 call. By using AI, we can significantly reduce the time it would typically take for our staff to manually perform this task. This solution has not yet been reviewed by individuals involved in an AI policy for the town.
Regarding the Citizen Input solution, it will allow us to randomly send surveys to citizens who have contacted our 911 center. These surveys will enable us to gather valuable feedback on our services, ensuring that we continuously improve our responsiveness and care for our citizens. The data collected through this system will be utilized to make any necessary adjustments to our processes, ultimately leading to more efficient and exemplary service. Additionally, this system seamlessly integrates with our Computer Aided Dispatch Software, enabling us to send automated text messages to callers, providing timely updates on their incidents.
The AI Redaction will cost about $5,000. The Power Engage will cost $9,000. We have researched internally to see if the town had anything that would perform this action for us and specifically spoke to Zencity. Nothing was able to connect to our CAD system to allow the automated messages to be sent to citizens.
- What is being done to track and eliminate duplicative IT software?
Staff continue to review software renewals and licensing to save money on duplicative or unnecessary services without impacting service levels. Estimated savings of $500,000 from that ongoing review are included in the IT budget for Fiscal Year 2025.
- Why do the revenues for benefits almost double in next year’s budget?
Additional details are needed to fully respond to this question. The Health and Dental Insurance Fund Summary on page 144 indicates FY 2025 revenue and expenditure levels in line with or less than FY 2024 numbers.
- Can Cary participate in the Wake County Tax Deferment program?
The Wake County Tax Deferment program is an existing state program that Wake County is advertising. Any applications for deferment of Wake County taxes will also apply to municipal taxes. This program is available annually beginning on January 1 with an application deadline of June 1. You can find more information on the program here.
To implement this program for our residents, staff will publish information about the deferment program in the taxes and assessments section of the town website.
- Is the $4.5m for affordable housing projects in the capital budget in addition to the $5.15m?
The $4.5M for housing projects in the capital budget is included in the $5.15M
- Is the $3.3m for GoCary Transit Projects in the capital budget (page xiv) in addition to the $2.6m transferred from the General Fund to the Transit Fund?
The $3.3M in capital funding is in addition to the $2.6M transferred from the General Fund to the Transit Fund for operations. $3 million of the $3.3 million in GoCary Transit capital projects is funded through the Wake County Transit Tax.
- If the Estimated Sales Tax in 2024 is $57.9m, what is the basis for the estimation of $59.6m for 2025 Sales Tax?
The estimated FY2024 sales tax of $57.9m is a 1.5% increase above actual sales tax collections in FY2023. FY2025 estimates of $59.6m are a 3% increase above FY2024. Historic sales tax returns make it likely that the anemic sales tax growth of the current year was an anomaly and growth with return to the 3-4% level. Staff estimates sales tax revenue based on expert information from the NC League of Municipalities, larger economic expectations, and trend analysis.
- Why is the 2024 Estimated Health and Dental Fund Transfer $5m when our Adopted 2024 budget was -$1m and is proposed to be -$1m again in 2025? Was this a surprise and are we vulnerable to another similar surprise in 2025?
These reviews often result in staff’s recommendation to close capital projects or make other adjustments allowing unused or available dollars to return to the General Fund, or other funds, where they become available for future use. This is typically done at our quarterly meetings and at year-end as we approach next year’s budget development.
As of June 30, 2023, the fund balance in Cary’s Health and Dental Insurance Fund totals approximately $18.9 million. A portion of this total was intentionally established with General Fund transfers. While there is not a specific benchmark for savings in this fund, staff believe that returning $6 million to the General Fund is a prudent adjustment that will not impact our ability to adequately support our health insurance needs.
- Why is Clerks Operations and Maintenance in the 2024 Estimated budget $1.06m (or 781%) over the Adopted 2024 Operations and Maintenance budget?
The Board of Elections for Wake, Chatham, and Durham provided Cary with the estimated amounts to budget for the municipal election in 2023 which resulted in a budget over $1 million. For the 2023 election, Cary reimbursed the Wake, Chatham, and Durham boards of elections a total of $824,507 for the October election date and November Runoff election date.
- Facilities, Construction, and Field Services have a relatively (and surprisingly) small budget. However, it is increasing about 190% over 2024 Adopted. Can you explain the change and what we can expect in future years?
Facilities, Construction, and Field Services was a new department that was created late in the budget process in FY2024. The FY2024 budget represents estimates of what the department would cost with the understanding that much of their budget remained in PIDS. The FY2025 budget is the first year that Facilities, Construction, and Field Services will have a budget that went through the full review process. We can expect slow growth to this budget in future years.
- In the Environment, is Urban Forestry and Solar Energy responsible for increasing the Environment budget by 312%? Will you break this out for us? Do we anticipate that this 2025 Environment budget is a one-year increase, or will it continue to stay at or above $2m?
The growth in Environment is largely due to two studies. The Climate Action Plan ($625,000) and The Urban Forestry Tree Survey ($770,000). Base Environment spending is anticipated to remain around $1 million, but additional projects may bring spending higher in individual years.
- Why was the Police 2024 Estimated budget $6.64m (or 21%) over the Adopted 2024 budget? What will be different this year if we are budgeting $5m less than the 2024 Estimated budget?
Supply chain issues meant that police vehicles Cary ordered over several years were not delivered until FY2024 at a cost of over $6 million. Cary does not pay for most vehicles until we receive them.
- The solid waste fee is increasing to $23/mo which will cover 92% of the operating costs. So, 8% is covered by the general fund? If so, what is the advantage of not having the fee set to an amount that covers 100% of the operating cost? [page x]
Solid Waste and Recycling expenses are included in the general fund so any expenses that are not covered by fees are covered by other general fund revenues. The advantage of a solid waste fee that does not fully cover costs is a lower fee for customers and a buffer to make sure that solid waste fees do not end up subsidizing the general fund.
- Why is the Recycling operations anticipated to decrease by 68% after being in the 1.2m to 2.2m range since 2021?
The FY2025 budget moved waste disposal and contracted services fees from the Recycling and Yard Waste divisions to the solid waste division to increase efficiency.
- Why are the Yard Waste operations expected to decrease by 79% after being in the $750k to 1m range since 2021?
The FY2025 budget moved waste disposal and contracted services fees from the Recycling and Yard Waste divisions to the solid waste division to increase efficiency.
- Is it possible to give citizens access to information on how their tax bill and assessed value has changed over the past twenty years?
Yes, we built a tool that will allow property owners to see this information. Staff published the dashboard on the website, which can be found under the taxes and assessments page which is accessible through the main budget page. You can use the QR code below to access the dashboard directly.
- What are Nuisance Animals in the Police Department fees?
Sec. 6-71 of the Town Ordinance addresses nuisance animals. Annoying sounds are the most frequent complaint. Failure or refusal to abate the annoying sounds could incur a civil citation for the violation in the amount of two hundred dollars ($200.00). Chapter 6 of the Town Ordinance can be found here.
- Why was the IT 2024 Estimated budget $5.83m (or 30%) over the Adopted 2024 budget?
Software and licensing renewal budgets for the entire organization were consolidated within the IT department’s budget resulting in an uptick in IT’s FY24 actuals. As new technology platforms are added, they are also included in this account. The FY 2025 budget has been increased to appropriately address this consolidation.
Groundbreaking at Park Overlook
Tuesday morning I joined council members Bush, Craig, and Bansal at the groundbreaking of the Park Overlook project. This project will have over 162,000 square feet of flexible space with Class A office entrance facades. The interior will have large bay sizes, high ceilings, loading dock doors on an interior truck court, and Class A office entrance facades. In addition to three other speakers, I provided remarks on the town’s behalf. Afterwards, the council and other dignitaries posed for groundbreaking pictures with hard hats and shovels.
Installment Document Signing Session
Tuesday afternoon I participated in Installment document signing. I signed several documents along with the town attorney, town manager, town clerk, and others. These documents are required by financial institutions for debt.
Diwali Dance Meeting
Tuesday evening, I joined several council members and Cary staff that will make up the Cary dance team at Diwali. So far, we have 13 from Cary with hopes to eventually have 17. Practice will start the second week of July and the performance will be in October.
Cary is #2 Safest Most Affordable
GoBankingRates named Cary is the #2 safest most affordable community in the nation. They state that choosing a family-friendly place to live is a significant decision that involves a balancing act between safety and affordability in any big city. Several cities in America stand out for offering a combination of low crime rates and reasonable living costs, even when compared to small towns. Whether you’re a young professional, a growing family or a retiree, finding real estate where you feel comfortable — both physically and financially — is crucial for a high quality of life.
Cary Zip Code 27158 is One of the Most Wealthiest in the Nation
The Triangle Business Journal reported that Cary had one of the most wealthiest zip codes in the nation:
“Three Triangle ZIP codes rank among the nation’s 1,000 wealthiest places, and Raleigh leads the way.
That’s according to The Business Journals Wealthy 1000, a new ranking of the nation’s wealthiest ZIP codes based on a weighted formula that looks at a number of wealth metrics.
Raleigh, Cary and Chapel Hill each had one ZIP code that ranked among the Wealthy 1000. 27608 in Raleigh (Hayes Barton, Five Points, Forest Acres) is the wealthiest Triangle ZIP code at No. 370, while 27518 in south Cary (Lochmere area) ranks No. 608 and 27517 covering east and south Chapel Hill (including Carolina Meadows and the Governors Club) is No. 902.”
North Carolina Metro Mayors
The North Carolina Metro Mayors met Friday to hear a weekly summary of legislative actions:
Budget Negotiations
This week, the House and Senate released two different versions of the budget. H263, 2024 Appropriations Act, is the House version that was made public on Monday, June 17th. The plan includes raises for state employees, increased funding for childcare, and an increase in the Opportunity Scholarship program. The bill passed (68-36) on the floor on Thursday. However, the Senate does not seem interested in taking up the House’s version of the budget as negotiations remain at an impasse between the two chambers.
The Senate released its version of the budget on Wednesday, June 19th. A proposed committee substitute for H317, Adjustments to the 2023 Appropriations Act, received a favorable report from the Senate Appropriations/Base Budget Committee on Thursday morning. The Senate spending plan would provide an additional $136.5 million in one-time childcare funding to address the loss of federal COVID-19 pandemic relief aid at the end of June and would provide additional funding for the Opportunity Scholarship program but would not include further raises for teachers and state employees.
Hemp Bill
A proposed committee substitute for H563, Hemp-Derived Consumables/Con Sub Changes, passed its second reading in the Senate by a vote of 33-9 on Thursday afternoon. The bill in its current form would make several changes regulating the sale and distribution of hemp-derived products and would ban hemp-derived consumable products from school grounds. This bill would also amend the North Carolina Controlled Substances Act to add tianeptine as a Schedule II controlled substance, xylazine as a Schedule III controlled substance, and kratom as a Schedule VI controlled substance. The Senate also added language that would enact the North Carolina Compassionate Care Act to legalize and provide for the sale of cannabis and cannabis-infused products to qualified patients with debilitating medical conditions.
This summary was created by Checkmate Government Relations.
Town Manager’s Report
Sean’s Message
Council, I just wanted to thank you again for devoting extra time on Monday to the Budget Work Session. The process this year has allowed for higher levels of learning as compared to previous years. As we navigate a likely challenging year those questions will remain vital to our success. So please keep asking!
As a reminder, I’m traveling through Monday, but I’ll be available to you by phone.
Have a great weekend.
Sean
Downtown Cary Park Hosts Annual Juneteenth Celebration
On Saturday, June 15, Mayor Harold Weinbrecht read a proclamation at Downtown Cary Park’s annual Juneteenth Celebration, joined by Councilmembers Sarika Bansal and Carissa Kohn-Johnson. Attendees braved the heat and enjoyed a vendor market and food trucks along with a full roster of live entertainment including traditional dances, djembe (drum) performances, educational talks, moving vocal performances, and a full live band to cap off the event.
The History of PFLAG in Cary; Sally Zumbach Story
On June 18, at the Page-Walker Arts & History Center a special Pride Month program celebrated and honored the legacy of Sally Zumbach who was instrumental in forming the Cary chapter of Parents and Friends of Lesbians and Gays (PFLAG) in the 1980s. Councilmember Michelle Craig joined Councilmember Lori Bush, with Bush presenting a bronze commemorative plaque to the Zumbach family in recognition of Sally’s service to the community. The program was a joint effort of the Historic Preservation Commission, Friends of Page-Walker, and the Human Relations, Inclusion, and Diversity Advisory Board.
RTA QuickTour in Richmond, Virginia
Russ Overton, Ryan Eades, and Rob Wilson attended the Regional Transportation Alliance’s (RTA) “QuickTour” in Richmond, Virginia on Tuesday. The tour provided the opportunity to visit a nearby peer city to learn more about a freeway cap, bus rapid transit (BRT), and other multimodal infrastructure. In the morning, they learned about the recently renovated Kanawa Plaza and adjacent parking deck that are built over top of the downtown expressway, as well as plans to build a new freeway cap over I-95 to reconnect the Jackson Ward neighborhood. In the afternoon, they learned about Richmond’s experiences with bus-rapid transit (BRT), a zero-fare transit policy, transit-oriented development, and plans for an intercity passenger rail. As part of the tour, they also rode the Pulse BRT and observed red (dedicated) BRT lanes, as well as both curbside and median pick-up/drop-off stations.
Interactive Dashboard: Property Tax Bill Estimates
The proposed FY 2025 budget recommends a new tax rateof $0.325, which will help fund projects, programs, and services for the coming year. In an effort to help citizens see how property revaluations have impacted the value of their homes and Cary property tax bills, the Financial Strategy staff developed an interactive dashboard . On the dashboard, you can search by any Cary residential property in Wake County using an address or the name of the property owner to see how proposed changes to the Cary property tax rate could change your bill in the upcoming year, as well as a history of revaluations dating back to 2001.
Construction Update – Walnut Street at Cary High School PHB
Construction of the Walnut Street PHB (Pedestrian Hybrid Beacon) in front of Cary High School is expected to begin next week. The Traffic Control Plan during construction includes closure of the inside lanes on both eastbound and westbound Walnut Street for approximately one to two weeks to accommodate the median and PHB work. The existing pedestrian crossing is expected to be closed and pedestrian detours will be provided utilizing the existing signalized pedestrian crossing at the intersection of Walnut Street and SE Maynard Road. This project will replace the concrete median on either side of the crosswalk with a slightly longer landscaped median, which will include features based on a collaborative exercise with Cary High School students. The metal pole for the PHB will be installed in the landscaped median with dual mast-arms, each providing traffic control for the eastbound and westbound traffic on Walnut Street.
Utility Relocation Update
Duke Energy has completed their relocation of overhead facilities between Cameron Pond Drive and Howard Road. Crews are still installing underground infrastructure between Howard Road and NC-55 before facilities are relocated underground. Spectrum has also started their relocation efforts between Cameron Pond Drive and Howard Road, which is expected to take roughly three months.
West Park Street Infrastructure Renewal
W. Park Street from Harrison Avenue to Academy Street has undergone a transformation over the last several months. Cary invested in new buried infrastructure including a new water main, upgrades to the sanitary sewer, and the replacement of damaged stormwater piping. A new stormwater catch basin was also installed and all of the curbs and sidewalks have been replaced to prevent ponding. Finally, the roadway was resurfaced, and W. Park Street was reopened last Friday, a week ahead of schedule.
Pavement Marking Condition Survey
Next week, weather depending, consultants working for Cary will begin measuring the reflectivity of pavement markings on some of the major streets maintained by Cary. This assessment is the first step in developing a maintenance program to ensure pavement markings can be sufficiently seen in low light conditions. Streets that will be measured include; Waldo Rood Blvd, Buck Jones Rd, West Chatham St, North Harrison Ave, East Chatham St, Kildaire Farm Road, Lake Pine Dr, Walnut St, McCrimmon Parkway, Old Apex Rd, and Weston Parkway. Lane closures and some night work may be needed to safely complete this work.
Cary Works to Advance the Tree Care Industry in NC
The NC Urban Forest Council hosted an arborist prep course in Greenville this past week. Leslie Moorman, Cary’s Urban Forester, instructed a portion of the course, preparing the next generation of tree care professionals. Cary continues to prioritize the advancement of the tree care workforce to ensure our trees are receiving the best care and maintenance from qualified experts.
Upcoming Meetings
Planning and Zoning Board
Monday, June 24
6:30 p.m.
Optimist Farm Greenway Open House
Wednesday, June 26
6:00 p.m.
Cultural Arts Committee
Wednesday, June 26
6:00 p.m.
Town Council Meeting (Work Session)
Thursday. June 27
4:45 p.m.
Town Council Meeting
Thursday, June 27
6:30 p.m.
Mayor’s Mailbox
- Two complaints about a Waverly Place rezoning proposal (It has not been scheduled for a public hearing and council has not seen a staff report).
- A complaint about being towed at the Camden Townhomes in Cary Park.
- A request for a new American flag at Booth Amphitheater.
- A complaint about a 18 wheeler parking on the Cary Morrisville border.
Next Week
Next week’s activities include staff meetings, a council work session, and the last regularly scheduled council meeting of the fiscal year.
Well, that is all for this week. My next post will be on Sunday, June 30th, 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.
Harold's Blog 