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Home My WebLink AboutAgenda 05-29-2025; 2 - FY 2025-26 Manager’s Recommended Budget Presentation 1 ORANGE COUNTY NORTH CAROLINA FY2O25-26 Operating Budget Public Hearing May 29, 2025 Board missioners 2 Budget Priorities for FY2025-26 1 . Minimize Tax Rate Increase 2. Create Budget Flexibility in Anticipation of Economic Downturn and Potential Federal Reductions 3. Maintain County Investment in Social Safety Net Services 4. Provide Continuation Funding to Schools 5. Invest in Employee Compensation Package 6. Align Budget Investments with Strategic Plan Goals ORANGE COUNTY 2 NORTH CAROLINA 3 Revenue Neutral Tax Rate Property Tax Base X Property Tax Rate = Property Tax Levy Property Property Tax Rate $33,254,442,655 .006264 $208,306,757 Or...62.64 cents per $100 of Assessed Value Breakeven percentage increase in value is just below 38% ORANGE COUNTY 3 NORTH CAROLINA 4 Manager's Recommended Tax Rate Manager's Budget Recommends Increase of 2.95 cents over Revenue Neutral Tax Rate • 1 .94 cents to support school planning and design ➢ Impact on Home @ $400,000 = $118.00 • 1 .01 cents to support school and County operations ➢ Impact on Home @ $500,000 = $147.50 County Tax Rate History 120.00 99.80 Orange Bars = Revaluation Years 100.00 95.00 88.00 85.80 87.80 86.79 86.34 81.87 83.12 83.58 80.00 65.59 60.00 40.00 20.00 0.00 ' FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Rec. 5 Fire District Tax Rates • Ten of Twelve Fire Districts Requested Tax Rate Increases Taxing District ZMr0MFY 2025 Tax Rate Revenue Neutral Rate FY 2026 Request Requested Increase Over .. $400,000 Home �Revenue Neutral �per Year CEDAR GROVE FIRE 9.00 6.54 7.54 1.00 $40.00 CHAPEL HILL FIRE 13.87 10.79 11.50 0.71 $28.40 DAMASCUS FIRE 12.80 9.79 10.20 0.41 $16.40 EFLAND FIRE 10.28 7.38 8.38 1.00 $40.00 ENO FIRE 11.98 8.71 8.71 - - LITTLE RIVER FIRE 7.39 5.35 5.35 - - NEW HOPE FIRE 13.84 10.15 12.50 2.35 $94.00 ORANGE RURAL FIRE 11.49 8.21 9.21 1.00 $40.00 ORANGE GROVE FIRE 8.27 5.81 7.00 1.19 $47.60 SOUTH ORANGE FIRE 9.09 6.67 8.17 1.50 $60.00 SOUTH TRIANGLE FIRE 12.80 8.75 10.20 1.45 $58.00 WHITE CROSS FIRE 13.84 10.30 14.00 3.70 $148.00 ORANGE COUNTY 5 NORTH CAROLINA 6 Strategies to Minimize Tax Rate Increase ➢ Department budgets held at or below base budgets (16 of 27 departments) ➢ Transition General Fund expenses to other funding sources ($176,084) ➢ 10% reduction to training and travel ($38,940) ➢ Eliminate four (4) vacant positions ($188,077) ➢ Charge administrative overhead to Sportsplex and Arts Commission ($215,562) ➢ Charge Special Tax District for collecting and remitting taxes ($135,000) ➢ Add four (4) positions to reduce expenses or generate revenue ($395,447) ORANGE COUNTY 6 NORTH CAROLINA 7 Strategies to Create Budget Flexibility ➢ No budgeted sales tax growth from FY2024-25 Budget ➢ No budgeted growth in Register of Deeds revenue ➢ Increase Social Justice Fund - $501102 ➢ Reduce Appropriated Fund Balance - $31 ,233 ORANGE COUNTY 7 NORTH CAROLINA 8 Funding to Maintain Social Safety Net ➢ $24,000 increase in Longtime Homeowners Assistance program ➢ $70,000 increase in Emergency Housing Assistance program through reallocation ➢ $25,000 increase in Partnership to End Homelessness Budget to Continue Cold Weather Cots ➢ $100,000 increase in Department of Social Services In Home Aide and $40,204 in the Aging In- Home Respite program ➢ $62,000 in Master Aging Plan Balance to Urgent Repair Program ➢ $40,000 Increase for Vaccine Supplies in the Health Department as Pandemic Grants Expire ORANGE COUNTY 8 NORTH CAROLINA 9 Continuation Funding to Schools Total . • - • School District Fundin_q FY2024-25 FY2025-26 Approved Recommended Difference % Increase Current Expense $108,090,282 $111 ,328,011 $3,237,729 3.0% Recurring Capital $3,060,000 $9,521 ,200 $6,461 ,200 211 .2% Debt Service $19,182,204 $20,840,115 $1 ,657,911 8.6% Health & Safety Contracts $4,004,666 $4,160,806 $156,140 3.9% + Enrollment Projections TOTAL $134,337,152 $145,850,132 $11,508,233 8.6% Calculation of Percentage of General Fund Revenues Dedicated to K-12 Education Total School Funding Rec. $145,850,132 = 47.9% Total General Fund Revenue $304,784,697 ORANGE COUNTY 9 NORTH CAROLINA 10 Continuation Funding to Schools County Per Pupil Funding Amount History $7,000 $211 increase from $6,000 FY2024-25 $5,877 $5,666 $5,346 $5,000 $4,165 $4,352 $4,367 $4,367 $3,868 $3,991 $4,000 $3,571 ' $2,957 $3,069 $3,200 $3,096 $3,102 $3,167 $3,269 $3,000 $2,000 $1,000 O� Oo y0 yv yL y3 y0 yh y<o y1 ycb ya ti0 Ly LL y>i tih ell, ONI '16 <Jti �Jti �,ti �,ti �,ti <Jti F, ORANGE COUNTY 10 NORTH CAROLINA 11 Continuation Increase to Schools FY2025-26 Manager Recommended Continuation Request Difference $65,133,984 $66,949,681 ($1 ,815,697) FY2025-26 Manager Recommended Continuation Request Difference $46,575,225 $46,780,376 ($205,151 ) ORANGE COUNTY 11 NORTH CAROLINA 12 InvestingEmployeesin ➢ 2% Wage Adjustment - $1 ,797,292 ➢ Continuation of Merit Awards - $451 ,000 ➢ Increase in Retirement Contribution - $145,035 ➢ Increase in Health Insurance Costs for Active Employees and Retirees - $1 ,308,285 ➢ Increase in Dental Insurance Costs - $16,405 oP,,ANGE COUNTY 12 NORTH CAROLINA 13 Strategic Plan Alignment • Healthy Community • Public Education/Learning Community — Behavioral Health & In-Home Aide Investments — Continuation and Capital Planning Funds • Housing for All • Environmental Protection and Climate — Programs to Maintain Housing Action — Capital Investments to Implement Climate Action • Diverse and Vibrant Economy Plan — Arts Commission Expansion ORANGE COUNTY 13 NORTH CAROLINA 14 Budget Consideration Schedule F:vqn 5-26 Budget Consideration Schedule May 29 Budget Public Hearing —Whitted Building; Hillsborough June 5 Work Session • Resolution of Intent to Adopt June 17 Business Meeting • Adoption of FY2025-26 Operating Budget and Capital Budget ORANGE COUNTY 14 NORTH CAROLINA 15 Questions? ORANGE COUNTY NORTH CAROLINA