Issue link: http://townofcary.uberflip.com/i/455347
ADMINISTRATION Finance Downtown Development Budget Public Information 51 Manager Approved Contracts Treasury Management Due to conservative interest income budgeting, interest earnings for FY2015 are projected to exceed budget by almost $500,000 across the General Fund, Utility Fund and Capital Reserve Funds. While the Town's total interest income should approach $2 million for the fiscal year, it still remains a small source of revenue for the Town compared to pre-2008 when interest income was $10 million or more. Cash and investment portfolio balance as of December 31, 2014 was just over $434 million. Utility Revenue Bond Sale Preparation for the February sale is underway. The water treatment plant expansion project will require $40 million in new debt that Council has appropriated. The debt service has been incorporated into utility rate planning. Staff is also making plans to refinance approximately $16 million of existing revenue bonds for the possibility of $1.5 million future interest expense savings spread over the next 16 years. The final outcome of our refinancing plans will depend on the interest rate markets in February. Municipal bond interest rates remain favorable for fixed rate long-term commitments. Credit quality will continue to be more of a factor in market access and rate differentials, and the value of Cary's top bond ratings will help control interest costs for our rate payers. General Fund revenues for FY15 currently are projected to be $1.8 million (1.3%) above the budgeted level. Updated FY15 Revenue Projections Sales tax growth thus far is above projections and is expected to moderate later in the year, resulting in an additional $1.2 million in revenue. Actual property tax assessments were higher than projected and collections are expected to be $794,000 above budget as a result. Permit and fee revenue is projected to be $585,000 below budget, which reflects slower than expected rates of growth in both residential and commercial construction. Cary maintained its AAA bond rating with Standard & Poors, Moodys, and Fitch. Economic Conditions Economists, such as Dr. Walden at NCSU, are predicting continued growth in the NC economy for 2015. The aspect of the growing State economy that may have the most effect on revenues in Cary is the housing sector. While construction continues to grow, growth is at lower rates than over the last two years. The slowdown of residential construction is affecting all of Wake County. This trend will affect Town revenue from both building permits and sales tax. Register for Online Utility Billing! 15,188 57,544 Online registered users Active customers