The Cary town manager is proposing a property tax rate of 33 cents per $100 valuation for the coming fiscal year, meaning the owner of a $300,000 home would pay $990 in taxes.

The proposed rate is slightly above the amount that would be "revenue neutral" under a recent revaluation of property across Wake County.

Property values generally rose under the revaluation. Because of the higher values, local governments can drop tax rates while bringing in the same amount of revenue.

Cary's current tax rate is 42 cents. Town officials said in a news release today that the revenue neutral rate would be 32.38 cents.

Town Manager Bill Coleman proposed rounding up the sum to 33 cents because of the tradition of setting tax rates in penny increments and because of "growing economic uncertainties."

Coleman presented his proposed budget to the Town Council on Thursday night.

Also under Coleman's plan, monthly solid waste fees would rise $2.25, from $11.75 to $14, to cover increasing operating costs and new recycling benefits.

Water and sewer customers would see a rate increase of 1.2 percent, or about 77 cents more a month for a residence using 7,000 gallons of water. The increase will help pay for the Western Wake Wastewater Treatment Plant.

Altogether, Coleman proposed a budget of $306 million. That includes $166 million in operations spending, a 7 percent increase from the current year. It also includes $139 million in capital spending, 38 percent drop.

The operating budget would add 25 staff positions, mostly in police, technology services, finance, public works and utilities and parks.

Among the capital spending projects are $61 million for street improvements, downtown streetscaping and other transportation improvements; $38 million for sewer projects; and $16 million to renovate the old Cary Elementary school.

The council will hold work sessions on the budget at 5:30 p.m. Tuesday and May 27.

Residents can express their views on the budget at public hearings to be held during regular Town Council meetings May 29 and June 12. The meetings start at 6:30 p.m. in the Town Council chambers, 316 N. Academy St.