Treasurer: property-tax timing, custodial invoices and driver training will shape Cary CCSD 26 year-end cash flow

Mr. Shepherd, the district treasurer, told the Cary CCSD 26 Committee of the Whole on May 19 that property-tax receipts and recent large operating costs will determine the district’s year-end cash position.

"We are scheduled to receive our next round of property tax payments at the end of this month," Shepherd said, adding that a smaller payment is expected now, with a much larger payment in June and then another in September. He said those receipts should bring revenues in line with the district’s fiscal-year projections.

Shepherd told board members that year-to-date expenditures are slightly below projection primarily because of salary accruals related to summer pay for certified staff, and that "actual year to date other objects" are above projection because of operational and maintenance expenses, notably a late invoice from a previous custodial vendor. He said that the district processed a number of O&M payments recently and that one sizable custodial invoice is likely to push Fund 20 toward a deficit by the end of the fiscal year.

The treasurer reviewed the district’s cash and investments, saying the education fund is "strong" and that the district holds "just under dollars 10,000,000 worth of investments." He said the investments are laddered, some will mature this summer, and the district will decide whether to reinvest or use the cash. He also reported that the capital improvement fund earned $52,000 in interest for April 2025 and that the district spent $195,000 on summer capital projects.

Shepherd noted rising capital payments tied to planned summer work, and he highlighted transportation costs driven by an accelerated hiring effort: onboarding five or six new bus drivers created substantial overtime and training costs because each new driver requires between about 20 and 160 hours of training, including support from transportation staff beyond the sites.

Shepherd said he has targeted the IMRF/social-security fund for gradual drawdown to avoid tax challenges from a large cash balance. He also explained the rationale for earlier bond timing: the district issued bonds when it did to maximize interest earnings and increase purchasing power for the taxpayers.

As a procedural next step, Shepherd said the district will hold a special board meeting immediately before the next Committee of the Whole to approve an amended FY25 budget; he framed that June 23 date as necessary because the statutory submission deadline is June 30.

Board discussion included a question about whether interest earned on capital investments remains in the capital improvement fund; Shepherd replied that the interest “stays within the capital improvement fund, which will be fund 60,” and that it can be used to offset anticipated project increases.

The treasurer’s presentation left the district projecting a modest overall surplus for FY25 but smaller than previously estimated once recent payments are posted. The board will consider the amended FY25 budget at the June 23 special meeting ahead of the June 30 filing deadline.