New municipal center, police station part of Cary village budget
The village of Cary plans to spend $28.64 million this coming fiscal year based on a budget passed by the village board April 6.
The 2021-22 budget is in the red on paper, but village officials say is balanced in actuality because it spends down federal COVID-19 relief dollars received last year through the CARES Act.
"We are expecting to have a surplus at the end of this current fiscal year, and then we will be spending down some of that fund balance during next fiscal year," Village Administrator Jake Rife said.
Because of money Cary received in 2020, village staff said they expect to end the current fiscal year in the black by more than $740,000.
The overall spending plan for the coming year budgets $28.64 million for expenditures and $14.98 million in revenue.
The "significant difference" between the two numbers is related to bond proceeds the village is currently holding for the construction of its new village hall and police facility, as well as the expected need for cash in the water and sewer fund for capital improvements, Financial Director Michael DuCharme said at a Cary Village Board meeting.
Cary's new municipal building, which could cost between $9.7 million and $10.4 million, started construction last year.
"I would like for the village administrator and all the department directors for providing a realistic spending plan that provides the residents and businesses with the same level of services that they have grown accustomed to," Ducharme said.
No new programs are proposed in this year's budget, according to village staff. Adjustments have been made to major revenue sources, with inflationary and contractual increases being added to salaries, benefits and pension costs.
This year, the village focused on economic development, infrastructure, thoughtful housing growth and intergovernmental cooperation, as well as public and private partnerships, when creating the spending plan, DuCharme and Rife said in the budget's transmittal letter.
These factors include continuing to look at how to fulfill needs for more senior housing, working with FGM Architects and Frederick Quinn Corporation to complete the construction of the village's new municipal center, the demolition of the old Metra station, responding to local business needs regarding COVID-19, and exploring funding sources to increase revenue for its main operating and capital improvement funds.
In 2021, property taxes made up nearly 30% of the village's general revenue fund. For the coming 2021-22 fiscal year, village staff budgeted an expected $2.54 million in property tax revenue.
Cary will receive 2021 property taxes in 2022.
The village's share of income taxes, the second largest source of money in the village's main operating fund, makes up 21.8% of revenue. About $1.86 million was budgeted for income tax revenue in 2021-22, an increase of nearly $25,000 over of what was budgeted last year.
Sales tax dollars, the third largest general fund revenue source, was expected to drop in 2020 because of the COVID-19 pandemic's effects on businesses. Though Cary took in $1.38 million in sales taxes in 2019, the village budgeted $1.34 million for the current fiscal year.
However, according to figures in the budget, Cary is actually on track to receive more than expected, about $1.45 million, which the village projects will increase to $1.52 million this coming budget year.