Cary takes new growth, to see slight increase in property tax levy extension
The village of Cary's property tax levy is set to rise less than a percentage point to about $2,540,400, the village board decided Tuesday evening.
This represents an $8,190, or 0.32% increase, from last year's levy of $2,532,210.
Mayor Mark Kownick emphasized the village doesn't take these types of increases lightly, adding the $8,190 in new growth will not have a negative impact on homeowners.
The increase is designed to collect the same level of taxes on new construction - for example, a new subdivision or an addition on a home - that is levied on existing property value.
"We look at things in a realistic time frame and manner," Kownick said.
The village board, as a whole, decided it wasn't going to take the inflationary increase allowed under the state's tax cap, which Kownick said would have raised residents' tax bills by $7 to $10 a year.
"We try to keep our tax levy as lean as possible," he said. "We are entering into some very interesting times. These are things that no board has ever seen in their lifetime here, and so we have to be very cognizant of the amount of money that we asked our residents to contribute."
At a previous village board committee of the whole meeting, village officials entertained three options for the property tax levy. In addition to the route ultimately chosen, the board discussed keeping the levy flat or also taking the inflationary increase in addition to new growth, which would have meant a $58,241, or 2.3%, increase to the tax levy.
The board ultimately voted 4-2 to go with just the new construction increase. Trustees Jennifer Weinhammer and Kim Covelli both voted no, with Covelli saying at the committee of the whole meeting she would not support any increase to the levy.
According to a report attached to the village's agenda, the police pension tax levy is being increased to meet the actuarial requirement. To offset the pension increase, the police protection portion of the levy will be lowered.
Finance Director Michael DuCharme previously warned the village board that, at some point in the not-too-distant future, Cary's levy will go almost completely toward police pensions. This would mean the village would have to fund everything else from other resources in the general fund.
Village Administrator Jacob Rife, at Tuesday's board meeting, said the board is aware of increases being seen, year over year, in the village's contribution to its police pension fund.
But this is not a situation unique to Cary, he added.
"Communities all over the state are seeing that," Rife said. "With that said though, we recognize that, as the mayor was pointing out here, we want to be good stewards that our taxpayers dollars. And this has been a tough year. The COVID-19 pandemic has impacted a lot of residents, which is why we want to try to find that middle ground."