The Cary Town Council unanimously approved a new $573.5 million budget Thursday night, which includes a property tax increase aimed at curbing public safety staffing shortages and boosting financial oversight.
The new budget will result in a 2.75-cent, or 8%, increase to Cary's property tax rate. Initial proposals recommended a 3.75-cent increase. The average Cary homeowner will pay $15 more per month under the new spending, which goes into effect July 1.
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Cary town councilmembers discussed the final budget proposal for nearly an hour on Tuesday. Former town manager Sean Stegall loomed large over the talks. Mayor Harold Weinbrecht said the spending plan was created after a "breech of trust."
Stegall resigned in December of last year after what Cary officials say was in part due to over-the-top spending and poor financial reporting.
Cary Mayor Harold Weinbrecht said the new budget was created in the wake of that "breach of trust."
"The breech led to inaccurate information being provided to council over several years leaving critical needs unaddresed, particularly with our police and fire departments," Weinbrecht said.
The Wake County District Attorney's Office, the State Bureau of Investigation, and the NC State Auditor investigated the town's financial mismanagement by former town manager Sean Stegall.
The new spending plan is one of the largest investments in public safety in Cary history, according to town staff.
$111 million will help fund dozens of police, fire and 911 positions. Weinbrecht called the budget the beginning of a three-year public safety recovery plan.
"Cary has not added a new police officer in 10 years. I can't imagine how much we've grown in that time," Weinbrecht said.
Compared to surrounding communities, Cary's new property tax rate of 36.75 cents per $100 is lower than Raleigh's tax rate of 37.2 cents per $100. Holly Springs property tax rate sits at 34.35 cents per $100.
"Based on what I know today, I believe the low tax rate of recent years was achieved, at least in part, through incomplete and misleading assessment of town's long-term needs," Weinbrecht said.
Interim town manager Russ Overton said the new budget creates two roles in the finance department. When the budget was proposed in May, he said the new roles would "enhance internal capacity, improve oversight and support stronger financial controls." In total, 55 new positions are allocated in the town's budget.
Overton said the town is now working to regain the community's trust. The town is also working on more policies and procedures to help ensure transparency and consistency with public funds.
Cary residents protested the higher rate in front of town hall earlier this month before a budget hearing.
WRAL News spoke with residents this week ahead of the vote who said they want to see the cost of living in Cary stay affordable.
"I think there's some good and bad to it," Caitlin Horachek said. "It's fun to have parks and all the things going on, but I would think there would be more income coming in with all of this so that maybe they wouldn't need to do that to keep it more affordable for families in the area."