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10 Things That No One Wants:
1. A pandemic
2. A quarantine
3. Nearly a total shut
down of businesses
4. An impact of $11
million in sales tax revenue loss and COVID-related expenses.
5. A gap in funding
between revenue and expenses
6. Degradation of the
community’s infrastructure, appearance, programs and services
7. A five- or ten-year
delay in projects approved by 80% of voters
8. An extended recession
without opportunities for employment
9. A diminished fund
balance that won’t buffer us in future emergencies
10. A property tax increase
No
one wanted any of the above. But we got them all in 2020.
Our
Town is home to people who have high standards for services, amenities,
aesthetics, and good governance. While balancing the many interests of
our citizens, the Cary Town Council has been extremely careful in setting our
tax rate. As a result, we have had the lowest tax rate in Wake County
among its 12 municipalities. In part, we were fortunate that a growing
housing and commercial building stock enlarged our tax base, enabling us to
keep our tax rate low. In part, we were intentional, hiring the best
employees in every department to ensure that our operations are highly efficient.
And, in part, we were strategic, maintaining a healthy fund balance from which
we could draw when necessary.
In
past bond referenda, our Council would tell citizens, “These bonds could result
in as much as a 14 cent increase in property tax rates….but we doubt we will
have to increase the tax rate.” And, we didn’t. In the last 30 years,
the Town of Cary has only increased its rate 1 time – and that was to implement
a citizen approved bond issue. In years of Wake’s revaluations of
property, the Town adjusted its tax rate to be revenue neutral.
During
this past referendum in the fall of 2019, Cary citizens heard a different
message about a potential tax increase: “These bonds could result in as much as
a 7.5 cent increase in property taxes, which we will deploy as finances deem
necessary.” Even with that clear message to our citizens, 80% of voters
still voted in favor of the bonds. Our plan was to roll in increases
incrementally over several years. In this year of revaluation, we intended to
have a revenue-neutral tax rate. Then, a pandemic and a resulting
economic recession ensued.
Do we
wish that we didn’t have to increase taxes at this time? Of course.
But, having an unbalanced budget is not an option. Our multi-million dollar
funding gap forces us to decide: decrease services, delay maintenance, lower
standards, and postpone projects or levy the tax increase that the voters
approved last year and keep the Town running at the level that citizens
appreciate.
Will
our tax rate be higher than those of our neighboring municipalities?
No. Cary is still on target to have a lower tax rate than Durham,
Raleigh, Morrisville, Apex, Wake Forest, Holly Springs, and Fuquay-Varina.
Throughout
this economic recession, I have heard neighbors and friends advocating for
visiting the businesses that are still open in order to bolster their
sales. In the same vein, we think that keeping the lights on at Town
Hall, the medians trimmed, stormwater managed, roads paved, parks enhanced, and
sidewalks extended helps our economy survive and recover. By moving
forward with our projects, we will be investing in our community as well as in
the businesses and employees that provide maintenance, construction, and
services.
Tax
increases suck. No one wants them. No one at Town Hall is jumping
to their feet and cheering on the decision to raise taxes. Our multi-decade track-record of NOT raising
taxes indicates our commitment to not raising taxes without a clear
demonstrated need. From the formulation of
Imagine Cary to the community meetings on the 2019 Bond Issue to our discussions
this year – we have endeavored to educate and be transparent that a
slower-growth community will require additional revenue to remain on top. Our citizens have invested in Cary and want
it to remain a community of choice.