Treasurer: Cary CCSD 26 projects balanced FY27 operating budget; referral drawdown and a small‑vehicle purchase planned

Treasurer Mr. Sheepard presented the tentative fiscal year 2027 budget to the Cary CCSD 26 Committee of the Whole on Monday, saying the operating funds are balanced and revenue trends are favorable.

"There's no major surprises in here," Mr. Sheepard said, noting property tax receipts came in earlier this year than last and that month‑to‑month revenues were "very strong." He told the board the district projects a year‑end surplus but cautioned that the commonly quoted $2 million figure may be inflated; instead he estimated a likely final surplus in the roughly $400,000–$600,000 range.

Why it matters: the budget guides how the district allocates money for instruction, staff compensation and capital work. Mr. Sheepard said the tentative FY27 operating budget supports recruiting and retaining staff, negotiated salary increases and a proactive capital improvement plan. He emphasized that most revenue is local property tax and that state and federal figures remain uncertain.

Significant details from the presentation included: - Revenues: Total budgeted revenue is about $40 million, with most funding from local property taxes; the presentation built conservative estimates for evidence‑based funding and CPPRT, though staff said CPPRT may come in higher than budgeted. - Expenditures: Salary increases reflect negotiated agreements and a 4% assumption for nonunion staff; benefits are the largest cost driver, with liability and workers‑compensation rising by roughly 35% and medical/dental by about 17–20% compared with prior years. - Contracted services: Special education contracted services were presented as falling from about $1.3 million to approximately $750,000 because the district expects to hire internally for some roles. - Capital and debt: A roughly $12.2 million deficit shown in the debt/capital section represents planned drawdown of referendum and bond funds for construction projects, not an operating shortfall; the next debt payment is due August 1.

Board members pressed staff for clarifications. When asked how much interest the district has earned on referendum funds, Mr. Sheepard gave a ballpark figure of about $500,000 and said he would provide an exact number. On transportation, Mr. Sheepard said the projected transportation deficit is mainly a conservative revenue assumption tied to uncertain state reimbursements; he added that the district budgeted roughly $150,000 for fuel this year and currently expects to break even on fuel costs.

Planned vehicle purchase: staff said they will ask the board on June 29 to authorize up to $55,000 to purchase a small vehicle for the transportation fleet because dealers generally will not hold a found vehicle until the July meeting. Mr. Sheepard said the actual purchase price is likely to be about $37,000–$38,000 and that staff will return with final purchase details.

Next steps: staff will seek authorization next week to place the tentative FY27 budget on public display, post the budget on the district website for the required 30‑day review, and return for the final hearing and approval on Aug. 24. If adopted, Mr. Glansman will file the approved budget with the county clerk and begin work on tax levy preparations for FY28.

The committee did not take a formal vote on the budget at this meeting; members asked staff to provide the requested interest figures and additional detail during summer updates.