‘Consider the most vulnerable’: Cary budget proposes tax increase for owners
Cary’s proposed property tax rate for 2025 is lower than in previous years, but homeowners could still see higher tax bills.
The recommended tax rate of 32.5 cents per $100 of assessed property value is two cents lower than this year’s rate. But homeowners and other property owners’ town tax bills will depend on how their new assessed values changed under the 2024 Wake County revaluation.
Town Manager Sean Stegall and Cary staff say the $503.5 million budget prioritizes spending in areas like affordable housing, the environment, parks and public safety.
A property tax overview
The proposed budget is nearly 4% lower than the current year’s budget of $523.8 million, due primarily to the timing of capital, or construction, projects, said Assistant Town Manager Danna Widmar.
Cary’s current property tax rate of 34.5 cents per $100 is one of the lowest for towns in Wake County, which levies a separate countywide property tax.
However, even though their tax rate remains one of the lowest, homeowners will see one of the highest tax-bill jumps in the county.
If the new budget is approved, the town’s tax rate would be about 8 cents higher than the proposed revenue-neutral rate of 24.4 cents per $100, which refers to the tax rate the town would need to set to generate the same amount of property tax revenue with new, higher tax values. It would still be one of the lowest town tax rates in Wake County.
Every property owner got a new assessed value from the county this year. In Cary, residential property values increased an average of 57% and commercial properties 39%.
Before the revaluation, a home with a tax value of $415,951 had a Cary property tax bill $1,435, based on the current tax rate of 34.5 cents per $100 in assessed value.
Now, that same house with a tax value of $647,748 would have a Cary property tax bill of $2,105 based on the proposed tax rate of 32.5 cents per $100 in assessed value.
That’s about a $670 increase and does not include the Wake County property tax rate that Cary owners also pay.
“Because the Wake County revaluation caught up to the values of their homes, (the amount) ends up being an actual increase in how much they pay,” Widmar said. “And it depends, because some homes went up a lot more than others. … What we’re seeing is certain locations in Cary have had significantly more investment than other areas.”
Widmar said because property values went up across the county, Cary renters may see increases in rent prices, as could tenants in commercial properties.
Housing affordability & public safety investment
The proposed budget does not recommend any new investments but rather expands existing ones, according to Stegall. This means no recommended new town positions.
“We’re doing everything we can, without cutting services to keep costs as low as possible, which is obviously very challenging in a high-inflation environment,” he said.
The largest chunk, or 26% of the proposed budget, is for public safety departments: fire, police and emergency medical services.
Over the last two years, Cary hired 12 new police officers. The department has 198 sworn officers supported by 27 communications officers, civilian staff and 20 team members.
Last year’s budget added funds for a Real-Time Information Center that will serve as a public safety base for the town. This also includes the Prepared Live app that allows responders to get pictures and videos of emergencies.
The budget proposes $5 million for programs to help residents find and keep affordable housing. Of that amount, $2.3 million would go toward Cary Housing Plan initiatives like Stable Homes Cary, a program to help displaced families.
One penny of Cary’s tax rate equals about $3.4 million.
‘Consider the most vulnerable’
Some residents have expressed concern about the tax-rate impact on older and low or middle-income families.
At a meeting Thursday, John Raydendor, a 23-year Cary resident, said his adult kids are among the young natives who can’t afford homes in Wake County.
“For many of us, this increase is now life-changing,” he said. “But for those living on low or a fixed income, this is going to drive some hard choices.”
The Rev. Wesley Spears-Newsome, an associate pastor at Greenwood Forest Baptist Church in Cary, praised the Town Council for its dedication to affordable housing.
However, Spears-Newsome told leaders they should “consider the most vulnerable” residents.
“Since I’ve bought my home in Cary, prices have skyrocketed to the point that there is no way that I could afford the home that I live in today,” he said. “Some of the last vestiges of affordable housing in Cary are disappearing.”
Mayor Pro Tem Jennifer Robinson said this year’s proposed budget is the “hardest” the council has had to consider in a long time.
“We’re not raising taxes flippantly,” Robinson said. “We have always said that we would only raise taxes if we absolutely needed to. The inflation that we’re experiencing is impacting us at home, it’s impacting this organization in the same manner. Everything costs more.”
Public comment period
The Cary Town Council is set to approve the budget on June 27 before it takes effect on July 1.
Residents can comment on the proposed spending plan at the next public hearing June 10 at 6:30 p.m., by emailing services.townofcary.org or by calling the town at 311 or the Town Manager’s office at 919-469-4002.
This story was originally published May 28, 2024 at 1:36 PM.