FREQUENTLY ASKED QUESTIONS

If citizens vote in favor of both bond financing issues on the November 5, 2024 ballot, Cary would have the authority to borrow up to $590 million in general obligation (GO) bonds over 7 years, with the ability to seek Council and State authority to extend that term to 10 years if necessary.

If $590 million in general obligation debt is approved, Cary’s property tax rate would increase by 9 cents. This increase would happen when the debt is issued and would be used for debt repayment. The current plan, which is subject to change, is 3 cents in 2026, 3 more in 2028, and 3 more in 2030 (calendar years).

1 penny is estimated at $10/year for every $100,000 house based on rates provided by the North Carolina State Treasurer.

Note, this increase would not cover the operating costs of the proposed new facilities, which would likely be paid for through additional property tax increases. 

We cannot estimate operating costs for facilities that have not been designed yet. What we can say is that additional revenues will be needed to operate these projects, because we can’t do more or add more with the same revenues. It will be more than the $.09 tax increase needed to fund the projects as described and more than the operating budgets that the Town has currently to operate these new projects. Accurately estimating operating costs for these projects requires master planning, which would begin if citizens vote in favor of the bonds.

Generally speaking, master plans determine exactly what each project entails, what specific services and programming those projects will provide the community, and what is required for it to function and operate as designed. At that point in time, an associated budget can be established and discussions regarding how that budget will be funded take place. Cary employs a comprehensive budgeting process for all facilities and services, which will be applied to these projects as well. This process is continuous and collaborative, involving operational and finance staff, public input, and review by the Town Manager and Town Council.

Of the 9 cents, 8.5 cents is for the $560 million Parks and Recreation Bond and 0.5 cents is for the $30 million Housing Bond.

No. The bond vote is a vote on whether Cary may specifically use general obligation bond financing; it is not a vote on the property tax rate. Each June, as part of the annual budget process, the Council votes on whether to raise, lower, or hold the property tax rate steady depending on the amount of revenues the Council believes is necessary to meet its capital and operational needs.

Yes. Funding these projects would be made possible and affordable through the issuance of General Obligation Bonds, a common practice for municipalities of Cary’s size. Cary is in excellent financial health, with the highest credit rating possible, AAA, which ensures we can secure low-interest rates which helps keep costs as low as possible. General obligation bonds spread the financial burden of large public projects across all property owners within the community. Because property taxes are based on value, those with more valuable property pay more, while those with lower-value property pay less. This approach aligns with residents’ ability to contribute and ensures that everyone who benefits from the public project share the cost, making it a more equitable method than, say, user fees or sales taxes, which could disproportionately impact lower-income residents. 

Additionally, since the bonds – if approved by voters – fund projects that provide long-term community benefits, spreading the costs out over time and across the entire population can be a very fair and desirable approach for many communities. It is not just current citizens who will contribute. By financing these projects over 20 years, future citizens will also share in these costs as they too benefit from the projects, ensuring that the burden doesn’t rely solely on those living in Cary today. 

By investing in these projects collectively, we can enhance our community, with projects and programs that can be enjoyed by all, regardless of individual economic status. This approach aligns with the long-term vision as outlined in the citizen and council approved Imagine Cary Community Plan, allowing Cary to keep up with a thriving community, while maintaining quality services and enhancing the quality of life that citizens have come to know and expect.

Estimation teams assisted in the development of preliminary estimates during the concept planning stage for the two community centers, the tennis park and pickleball expansion, and the greenway projects.

The budget estimates for the two master plan projects were developed based on past and current master planning efforts.

None of the proposed projects are expected to generate revenue to a level that would fully recover operating costs.

Return on investment (ROI) should be considered in two ways. The community benefit and the financial return.

The parks and recreation projects are an investment in Cary citizens. Not only would the projects keep Cary a premier parks and recreation destination but also serve the community by providing social gathering spaces, opportunities to learn new skills, and maintain an active lifestyle.

Economic impact analysis studies were conducted for the Sports and Recreation Community Center, Mills Park Community Center and Cary Tennis Park and Pickleball Expansion projects. The analysis estimated annual attendance, hotel room nights, economic output of direct and indirect spending, employment, and county tax revenues based on the current concept plans. The analysis determined that we are well-positioned in the region to support these facilities based on the population and gaps in the regional sports tourism market. These facilities have the potential to drive additional tax revenues through increased spending contributing to sales, lodging, and food and beverage taxes. Construction of all the proposed projects will also add dollars back to the local economy through construction material spending and local job creation.

Further ROI and fees and charges studies will be conducted if the bond is passed, and the projects move forward.

*The draft reports can be find here for the Sports and Recreation Community Center and Mills Park Community Center, and Cary Tennis Park and Pickleball Expansion projects. ROI studies are estimates based on current knowledge and are subject to change.

Yes. More facilities, amenities, and services cannot be realized with the same or less funding or support resources. Where possible, the projects plan for those needs. The proposed community centers and Cary Tennis Park expansion each includes additional structured parking in the project funding, for example.

The Cary Town Council always has the option to supplement the bond funding with revenues from other sources including public/private grants as well as Town funds that might be available at the time.

Yes.

While it’s not possible for us to predict what future interest rates will be, we can say that if Cary were to sell general obligation bonds this fall, we would expect the average interest rate to be more than 3 percent but less than 5 percent based on market conditions entering the summer of 2024.

Cary expects that bond raters would view Cary’s debt levels as manageable, given Cary’s financial position, additional tax revenue to support debt service, and Cary’s continued, proactive attention to planning for and managing growth and community needs. As of June 2024, Cary was rated AAA by Fitch Ratings, Moody’s Investor Service, and Standard and Poor’s.

If the bonds are approved by voters, the debt would be paid back using property tax revenues.

Work could begin almost immediately, whether that entails land purchases or hiring project planners and architects.

These projects will not move forward until or unless this or a future bond referendum passes.

Yes. Each project has a direct tie to the vision and values of the thousands of Cary citizens who helped develop and keep updated the Imagine Cary Community Plan. Just like Koka Booth Amphitheatre, WakeMed Soccer Park, the three existing community centers, dozens of parks, and nearly 90 miles of trails and greenways, the proposed 2024 bond projects have Cary citizens as their primary beneficiaries. And the housing bond helps ensure that people from all income levels are part of Cary’s rich and diverse fabric.

The projects are intended to benefit everyone who lives, does business in, and enjoys Cary.

No. Under NC law, Cary – along with all other cities and towns – must hire the “lowest responsive responsible” company on projects requiring public bidding, whether that company is in Cary or not. That said, and where allowed under the law, Cary enjoys working with numerous local companies whenever we can.