Cary dips into reserves to balance budget
Cary officials plan to balance their new budget with $5.4 million in cash reserves to offset construction projects.
The proposed 2011-12 budget for the general fund, which accounts for all day-to-day operations, is balanced at just more than $7 million. That figure is nearly $30,000 lower than last year’s budget, Village President Tom Kierna said.
“That includes fuel costs going up, electrical costs going up, everything,” Kierna said. “We’re living within our means and we continue to be fiscally responsible.”
At the end of March, the general fund had about $3 million in reserves, Finance Director Ron Pfeiffer said. The new fiscal year begins May 1.
The police department budget, at $3.9 million, takes up the biggest chunk. It calls for an increase in spending of $87,000, or 2 percent, over last year’s budget.
The general fund also includes salary increases for police and public works union members as per contract, village officials said. Nonunion staff will get a 1.7 cost-of-living increase, and a total of $21,000 is budgeted for merit increases.
The finance budget and the boards and commissions budget will grow because the village plans to redesign its website and hire a senior accountant six months into the fiscal year.
The proposed budget for fiscal year 2011-12 calls for almost $20.8 million in expenditures across all funds, and just less than $15.4 million in revenue. Kierna and Pfeiffer said the village will use its cash reserves to cover the gap, but neither could estimate how much money the village has in reserves across all funds.
The village is planning to spend $4.3 million in public infrastructure improvements and has budgeted $1.3 million for the early repayment of water and sewer bonds that would have expired in 2015. The move will save the village about $190,000 in interest payments, Pfeiffer said.
Capital projects include $1.65 million for road resurfacing, part of the 3-year, $5 million “Cary Works” project funded by Build America Bonds, Pfeiffer said. The project is scheduled to be completed by 2013.
The second-largest project is $1.4 million to improve the Jandus Road Cut Off including the intersection at Route 14, Kierna said. The village is counting on $500,000 in state grant money for that project.
Other capital projects include $263,000 in improvements to the exterior of village hall, plus improvements to the Metra commuter lot and the intersection of Three Oaks and Silver Lake roads.
A public hearing to consider the approval of the 2011-12 budget is scheduled for 7 p.m. Tuesday, April 26 at village hall, 655 Village Hall Drive.