Cary council debates using fund balance to lower proposed property tax increase; half‑penny motion fails 5–2

The Cary Town Council on June 11 heard a detailed staff presentation on FY2027 budget options and debated whether to use one‑time fund balance to reduce the proposed property tax increase.

Stacy, assistant manager, told the council staff had packaged near‑term revenue options (electric vehicle charging fees, a 2% additional increase to parks and recreation fees and a comparable bump to building permit fees) projected to raise about $527,000, and identified near‑term cuts — including postponing the website overhaul, trimming Chamber festival and contracted video spending and delaying renovation of the existing 911 center — that would free roughly $2.1 million. Staff also described council‑ and staff‑initiated additions totaling about $1.687 million, such as additional housing funding and a contract the police department uses for children victim services.

Stacy said Cary currently has about $10 million above its mandatory fund balance policy, of which the recommended FY2027 budget assumes using $5.7 million; staff estimated that combining the proposed revenues, cuts and fund balance use could produce roughly $5.2885 million, an amount the staff equated with the fiscal effect of one cent on the tax rate. "If we did all of those things, we could accomplish those few things that we added and we could potentially consider reducing the recommended tax rate by one penny," Stacy said.

Council members pressed staff on assumptions and tradeoffs. Council Member Con Johnson and others emphasized the community benefit of "smoothing" tax increases — making year‑to‑year changes more predictable — and urged caution about sharply raising property tax in any single year. Other members warned that relying on fund balance to pay for ongoing needs would reduce the town’s cushion for public safety, infrastructure and multi‑year commitments.

The council also discussed a Wake County assessment change staff attributed in large part to a statewide taxation issue affecting multifamily properties; staff described an approximately $200 million drop in Cary’s assessed value tied largely to ownership rules being reviewed in the General Assembly.

Late in the session a council member moved to use a half‑penny of the fund balance (staff estimated about $2.7–$2.75 million) to reduce the recommended tax increase and bring the proposed rate closer to a lower percentage increase. After discussion and a voice/hand vote, the motion failed five to two.

The work session concluded without further action; staff will present final budget documents and return the item to the council for a June 25 adoption vote.

Votes at a glance: the scheduling motion to cancel June 18 and move July 28 to July 21 passed unanimously; the half‑penny fund balance motion failed 5–2.