Brent
06-08-2005, 04:01 PM
OK, people, here's your chance to speak up.
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FOR IMMEDIATE RELEASE June 8, 2005
CARY HOLDS PUBLIC HEARING ON FY 2006 BUDGET
TOMORROW NIGHT
CARY, NC –The Town of Cary will hold its annual public hearing on the proposed budget for the upcoming fiscal year tomorrow night during the regular Town Council meeting that begins at 6:30 p.m. in the temporary Council Chambers in the Herb Young Community Center on Town Hall Campus. With ongoing revenue growth at less than 3 percent for the third year in a row and operating margins continuing to be directed toward debt payments for past capital project spending, the proposed budget once again keeps Cary’s property tax rate at 42 cents per $100 valuation but includes cuts in jobs and expenses as well as increases in a number of user fees and charges.
A primary element of the Town’s long-term strategy to manage expenses is moving from backyard garbage collection to fully automated curbside collection this fall since curbside is the safest, most efficient, equitable, and economical way for the Town to collect solid waste. Currently, Cary and Winston-Salem are the only large municipalities in the state still providing backyard collection.
“Changing to fully automated curbside collection now will help hold necessary cost increases to their lowest levels, saving customers millions of dollars in the coming years,” said Town Manager Bill Coleman. “Going to curbside will also result in the loss of 36 solid waste positions over the next several years, and planned streamlining of the recycling program will result in the loss of 11 recycling positions during the same period.”
Even with this year’s proposed switch to curbside, a fee increase will be necessary as the Town begins working towards having solid waste fees cover the direct cost of solid waste services. While full cost recovery for curbside collection would be more than $15 per month, the Town Council plans to limit the monthly increase from $7.67 to $11.75 this year, which is 75 percent of direct cost recovery and nearly the same fee it was in 2000--$11.50.
Other elements aimed at holding the line on expenses is a plan to limit the amount of new debt taken on by delaying the construction of and improvements to several park facilities including those at East Cary, Middle Creek, and Bartley. Some transportation projects will also be delayed, including downtown roundabouts and the widening of a portion of Tryon Road. However, given the skyrocketing costs of real estate, the proposed budget does allow for the Town to continue purchasing land for open space and parks as opportunities arise.
Other expense control measures the Council is considering include reducing funding for employee merit-based pay by over $319,000 and cutting back on the frequency of janitorial services in offices and other non-public areas.
In addition to reducing expenses, the Council is considering increasing revenues as part of balancing the FY 2006 proposed budget. In addition to raising the solid waste fee for Cary residents, Cary businesses could pay more in business license fees. Under the changes discussed by Council, the rate on gross receipts in excess of $100,000 will rise from 50 to 60 cents per $1,000, and businesses grossing $8.3 million or more a year will see their annual business license fee cap go from $450 to $5,000. However, small businesses qualifying for the lowest fees of $25-$100 would see no change.
“These changes to the business license program will make Cary more comparable with other cities of our size,” said Finance Director Karen Mills, who noted that business license fees have not been raised in 15 years.
Water and sewer rates are also proposed to rise for all customers in FY 2006. The increases will help pay for the region’s first biosolids dryer, which is set to come online this fall at the Town’s South Water Reclamation Facility, and an expansion of the Town’s North Water Reclamation Facility. While rates differ for each type of user, households, for example, using 7,000 gallons of water a month would likely see a 9.1 percent increase, or about $5.04 more each month for water and sewer services combined. Parks, recreation, and cultural resources fees will also rise to help keep pace with rising costs necessary to continue quality programs.
Following the June 9th public hearing, any changes to the proposed budget the Council would like included will be listed separately and voted on in conjunction with approval of the entire budget at the June 23rd regular Council meeting. North Carolina law requires local governments to adopt a budget by June 30th since the new fiscal year starts July 1.
At this time, the total FY 2006 budget is $175.6 million.
Review details of the Proposed Budget at www.townofcary.org. Hard copy versions are also available for review at Town Hall and at the Cary public library.
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PRIMARY CONTACTS:
Scott Fogleman, Budget Director, (919) 462-3911
Karen Mills, Finance Director, (919) 469-4110
Ben Shivar, Assistant Town Manager, (919) 469-4003
Susan Moran, Public Information Officer, (919) 460-4951
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FOR IMMEDIATE RELEASE June 8, 2005
CARY HOLDS PUBLIC HEARING ON FY 2006 BUDGET
TOMORROW NIGHT
CARY, NC –The Town of Cary will hold its annual public hearing on the proposed budget for the upcoming fiscal year tomorrow night during the regular Town Council meeting that begins at 6:30 p.m. in the temporary Council Chambers in the Herb Young Community Center on Town Hall Campus. With ongoing revenue growth at less than 3 percent for the third year in a row and operating margins continuing to be directed toward debt payments for past capital project spending, the proposed budget once again keeps Cary’s property tax rate at 42 cents per $100 valuation but includes cuts in jobs and expenses as well as increases in a number of user fees and charges.
A primary element of the Town’s long-term strategy to manage expenses is moving from backyard garbage collection to fully automated curbside collection this fall since curbside is the safest, most efficient, equitable, and economical way for the Town to collect solid waste. Currently, Cary and Winston-Salem are the only large municipalities in the state still providing backyard collection.
“Changing to fully automated curbside collection now will help hold necessary cost increases to their lowest levels, saving customers millions of dollars in the coming years,” said Town Manager Bill Coleman. “Going to curbside will also result in the loss of 36 solid waste positions over the next several years, and planned streamlining of the recycling program will result in the loss of 11 recycling positions during the same period.”
Even with this year’s proposed switch to curbside, a fee increase will be necessary as the Town begins working towards having solid waste fees cover the direct cost of solid waste services. While full cost recovery for curbside collection would be more than $15 per month, the Town Council plans to limit the monthly increase from $7.67 to $11.75 this year, which is 75 percent of direct cost recovery and nearly the same fee it was in 2000--$11.50.
Other elements aimed at holding the line on expenses is a plan to limit the amount of new debt taken on by delaying the construction of and improvements to several park facilities including those at East Cary, Middle Creek, and Bartley. Some transportation projects will also be delayed, including downtown roundabouts and the widening of a portion of Tryon Road. However, given the skyrocketing costs of real estate, the proposed budget does allow for the Town to continue purchasing land for open space and parks as opportunities arise.
Other expense control measures the Council is considering include reducing funding for employee merit-based pay by over $319,000 and cutting back on the frequency of janitorial services in offices and other non-public areas.
In addition to reducing expenses, the Council is considering increasing revenues as part of balancing the FY 2006 proposed budget. In addition to raising the solid waste fee for Cary residents, Cary businesses could pay more in business license fees. Under the changes discussed by Council, the rate on gross receipts in excess of $100,000 will rise from 50 to 60 cents per $1,000, and businesses grossing $8.3 million or more a year will see their annual business license fee cap go from $450 to $5,000. However, small businesses qualifying for the lowest fees of $25-$100 would see no change.
“These changes to the business license program will make Cary more comparable with other cities of our size,” said Finance Director Karen Mills, who noted that business license fees have not been raised in 15 years.
Water and sewer rates are also proposed to rise for all customers in FY 2006. The increases will help pay for the region’s first biosolids dryer, which is set to come online this fall at the Town’s South Water Reclamation Facility, and an expansion of the Town’s North Water Reclamation Facility. While rates differ for each type of user, households, for example, using 7,000 gallons of water a month would likely see a 9.1 percent increase, or about $5.04 more each month for water and sewer services combined. Parks, recreation, and cultural resources fees will also rise to help keep pace with rising costs necessary to continue quality programs.
Following the June 9th public hearing, any changes to the proposed budget the Council would like included will be listed separately and voted on in conjunction with approval of the entire budget at the June 23rd regular Council meeting. North Carolina law requires local governments to adopt a budget by June 30th since the new fiscal year starts July 1.
At this time, the total FY 2006 budget is $175.6 million.
Review details of the Proposed Budget at www.townofcary.org. Hard copy versions are also available for review at Town Hall and at the Cary public library.
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PRIMARY CONTACTS:
Scott Fogleman, Budget Director, (919) 462-3911
Karen Mills, Finance Director, (919) 469-4110
Ben Shivar, Assistant Town Manager, (919) 469-4003
Susan Moran, Public Information Officer, (919) 460-4951