The URL can be used to link to this page

Home My WebLink AboutMinutes 06-05-2025-Budget Work Session 1 APPROVED 8126/25 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 5, 2025 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Thursday, June 5, 2025, at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC. COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Jean Hamilton, and Commissioners Marilyn Carter, Amy Fowler, Sally Greene, Earl McKee, and Phyllis Portie- Ascott COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: None. COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below.) Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present. 1. Discussion and Decisions on FY 2025-35 Capital Investment Plan • Funding Decisions on the Capital Investment Plan Amendment List • Accept FY 2025-35 Capital Investment Plan and Approve the Intent to Adopt Capital Funding for FY 2025-26 The Board discussed the FY 2025-35 Capital Investment Plan, accept the Ten-Year Capital Investment Plan, and approve the Intent to Adopt Capital Funding for FY 2025-26. BACKGROUND: For over 20 years, the County has produced a Capital Investment Plan (CIP) that establishes a budget planning guide related to capital needs for the County as well as Schools. The current CIP consists of a 10-year plan that is evaluated annually to include year-to- year changes in priorities, needs, and available resources. Approval of the CIP commits the County to the first year funding only of the capital projects. All other years are used as a planning tool and serves as a financial plan. Capital Investment Plan — Overview The FY 2025-35 CIP includes County Projects, School Projects, and Proprietary Projects. The School Projects include Chapel Hill-Carrboro City Schools, Orange County Schools, and Durham Technical Community College — Orange County Campus projects. The Proprietary Projects include Water and Sewer, Solid Waste Enterprise Fund, and Sportsplex projects. The CIP has been prepared anticipating moderate economic growth of approximately 2% in property tax growth and 4% sales tax growth over the next ten years. Many of the projects in the CIP will rely on debt financing to fund the projects. Travis Myren, County Manager, made the following presentation: 2 Slide#1 ORANGE COUNTY NORTH CAROLINA FY2025-26 Budget Intent to Adopt Work Session Board of Commissioners Work Session June 5, 2025 Slide #2 Decision Points 1. FY2025-26 Capital Investment Plan • Consider and approve amendments to the County Manager's Recommended Capital Investment Plan (CIP) 2. FY2025-26 Operating Budget • Consider and approve amendments to the County Manager's Recommended Operating Budget 3. FY2025-26 County Fee Schedule • Consider and approve amendments to the County Manager's Recommended Fee Schedule 4. FY2025-26 Tax Rates • Adopt a Countywide Ad Valorem (Property)Tax • Adopt a Special District Tax Rate for Chapel Hill-Carrboro City Schools District • Adopt tax rates for the County Fire Districts 2 ORAR GEC- 3 Slide #3 Decision Points 5. Break to finalize the Intent to Adopt Resolution 6. Resolution of Intent to Adopt • Approve the Resolution of Intent to Adopt the FY202i26 Operating Budget at the Business Meeting on June 17, 2025 — Operating Budget for FY2025-26 — Year One(FY2025-26)of the Capital Investment Plan and Acceptance of the Ten -Year Plan — Countywide Property Tax,Special District Tax,and Fire District Tax Rates — County Fee Schedule ORANGE COUNTY 3 NORTH CAROLINA Slide #4 Capital Budget Amendments Amendment Sponsor CIP Budget Page Department Amendment Year 1 Impact 10 Year CIP Reduce Construction funds for Crisis Diversion -$285,000 -$285,00 IP-S01 Staff 53 AIMS Facility that were advanced to FY 24-25 in a prior Budget Amendment Piedmont Food Processing Center-Utilize Article $ $ IP-SO2 Staff 82 AIMS 6 funded Financing rather than Pay-as-you-Go Funding for FY 26 Evidence Storage Building-Reduce size by -$1,278,50 -$1,278,50 IP-S03 Staff 63 AIMS anticipating moving Sheriffs Office and"active vidence storage"to renovated Link Center Move"Justice System Space Needs"to years 1 $1,400,00 $ IP-SO4 Staff 78 AIMS and 2 to renovate the Link Center and move the heriff into the facility. 145-148 CHCCS Update Recurring Capital and Article 46 Funding $ $ IP-S05 Staff Schools plit between districts to FY 26 Budgeted ADM 161-163 OCS with Article 46 excluding charter students Reduce Article 46 funding for schools by$63,921 -$63,921 -$767,44 146 CHCCS in FY 25-26 based on revised sales tax IP-S06 Staff 161 OCS Schools projections and reduce 10 years projection to assume 4%growth from the revised FY25-26 projection. ORANGE COUNTY 4 NORTH CAROLINA A motion was made by Commissioner McKee, seconded by Commissioner Fowler, to approve budget amendments CIP-S01, CIP-SO2, CIP-SO3, CIP-SO4, CIP-SO5, and CIP-SO6. VOTE: UNANIMOUS 4 Slide #5 Capital Budget Amendments Tax Impact of All Staff Amendments: Current Debt Model StaffAmendments Debt Tax Year a toue Rate DS to GF Revenues DEquivaebt Tax Rate Revenues Equivalent Equivalent 2026 11.20% 11.20% 2027 13.10% 2.424 13.09% 2.414 028 14.16% 1.424 14.29% 1.584 2029 16,50% 2.844 16,86°% 3.144 2030 17.78% 1.554 17.98% 1.374 2031 17.87% 0.184 17.81% 032 17.75°% - 17.69% - 2033 18.61% 0.994 18.61% 0.694 2034 19.16% 0.804 19.12°% 0.984 2035 18.00% - 17.96°% - otalImpact 10.194 10.164 s ORAN GE�CCOUNTY NiDSlide #6 Capital Budget Amendments Amendment Sponsor CIP Budget Department Amendment Year 1 Impact 10 Year CIP # Page Impact IP-1301 Bedford 52 AMS Reduce scope of Animal Services -$298,72 -$298,72 renovation to just USDA required IP-1302A Bedford 57 Sustainability Remove funding in years 7,8 and 9 for $ -$636,00 Community Resilience Hubs IP-130213 Greene 57 Sustainability Remove funding in years 7 and 9 for $ -$424,00 Community Resilience Hubs Remove window Coveringsfor Great Hall -$61,00 -$61,00 IP-603 Bedford 76 AMS at Seymour Center.Department to use MAP balance for this expense instead Reduce scope of RENA renovation to$1 $ -$1,890,00 IP-1304 Bedford 88 AMS M,split between county and the municipalities IP-1305 Bedford 91 Sustainability Remove Solar Photovoltaic System for $ -$532,11 Hillsborough Commons in Years 2 and 3 6 ORANGE COUNTY NA Chair Bedford gave the gavel to Vice-Chair Hamilton to lead the meeting while she presented the budget amendments she sponsored. Chair Bedford referred to slide #10. She said that the impacts of her proposed budget amendments are small. She said it is mostly in the outer years. She said that they are very strong because they have a ten-year plan and a debt model in the CIP. She said that was added in 2016. 5 She said that the Board of Commissioners is legally mandated to provide facilities for schools, judges, sheriffs, and that they also need to make sure the county employees have safe workspaces. She said that the budget aligns more and more with the strategic plan every year. She said there is a line item for climate mitigation and $100,000 for public EV chargers, and $50,000 every other year. She said that there are solar projects of $1.8 million over ten years. She said there are staff EV chargers, and most vehicle replacements will be electric. She said that residents have noted they are very concerned about the tax rate impact. She said there are no wasteful projects in the CIP. She said many of her amendments suggest deferring some projects, but she wants to keep working on the big projects. She said they also preserved health and safety investments. She said they are also continuing to work to renovate the Link building and create a judicial complex. She said there were 3 projects that jumped out as needing a work session. She said Orange County Schools asked if they can they use Soccer.com as a school site and the majority said yes. She said the other two are the Southern Human Services expansion and the RENA expansion. She said looking at the 10 years, the judicial placeholder is insufficient. She said more will be needed because they need to make the spaces safe forjudges. She said if they make those spaces, it is good not to fill them immediately. She said that the result is somewhat minor, but it shows the public that they are serious about balancing needs and wants. Chair Bedford reviewed budget amendment CIP-1301, which she sponsored. A motion was made by Chair Bedford, seconded by Commissioner McKee, to approve budget amendment CIP-1301. VOTE: UNANIMOUS Chair Bedford reviewed budget amendment CIP-B02A, which she sponsored. She suggested that her amendment be reviewed along with CIP-B02B, sponsored by Commissioner Greene. Commissioner Greene reviewed amendment CIP-1302B. Commissioner McKee said it would have no impact on year one, thus no impact on this year's tax rate. He said they can make changes as necessary, so he supported Commissioner Greene's amendment. Commissioner Greene gave further information about her amendment. She said that they got a climate resilience kit from Central Pines and heat is the number one weather related killer and is preventable. She said the rural community is the most vulnerable. A motion was made by Commissioner McKee, seconded by Chair Bedford, to approve budget amendment CIP-B02B. VOTE: UNANIMOUS Chair Bedford withdrew amendment CIP-B02A. Chair Bedford said she did not have anything to add to amendment CIP-B03, which she sponsored. Commissioner McKee said it makes a savings in year-one. A motion was made by Commissioner McKee, seconded by Commissioner Carter, to approve budget amendment CIP-1303. VOTE: UNANIMOUS 6 Chair Bedford reviewed CIP-B04, which she sponsored. She noted that there was a copy of a 2021 letter from a RENA representative at their places. She said including a commercial kitchen would be a higher cost. She said the cost of the expansion of $2.8 million was in the previous year's CIP. She said that the architect is putting in a second story and an elevator. She said there should be a work session to discuss the needs at RENA. She said the county cannot afford $3 million for this expansion. She said that she has a note that there will be a cost-sharing agreement with Carrboro and Chapel Hill, but she thinks the expansion should be a county cost. She said that the $1 million is what she proposes to remain. Commissioner Greene asked if the amendment leaves $1 million. Chair Bedford said it leaves $1 million for an addition. She said they should hear from the architect and Asset Management Services. She said they also need to discuss if they will seek partnership from the towns. A motion was made by Chair Bedford, seconded by Commissioner Fowler, to approve budget amendment CIP-1304. Commissioner Portie-Ascott said that comments have been received and asked if it would be hard to put the$1.8 million back. She said there is a trust issue with the community. She asked if there has been any feedback from the residents. Commissioner McKee said he has not heard any. Commissioner Greene said that they likely don't know. Chair Bedford said Rev. Caldwell should know. Commissioner Greene asked if the rethinking would include participation from the RENA community. Chair Bedford said yes. Commissioner Portie-Ascott asked if the conversation is about the remaining dollars or if it is about all the funds. Chair Bedford said it should be about their needs and they would need to see what it costs, and if the county can afford it. Commissioner Carter said she agrees that before they make a change, they should have the conversation with the community. She said that the community is developing and growing and maybe this can positively impact that effort. Commissioner McKee asked Travis Myren when the first year of expense would be for this project. Travis Myren said year 3. Commissioner McKee said in his opinion it would not hurt to look into it. He said he was not sure it needed to be $2.8 million, but he thinks that having the discussion is important. Vice-Chair Hamilton said she supported the change. She said the CIP has been used to have things in the out years that may not be aligned with what is possible. She said she is willing to rethink what they are doing in the out years and give themselves flexibility. She said they also have the debt model. Commissioner Fowler asked if they know the amount needed. Travis Myren said in 2022 an architect developed the plans and estimated the costs. He said the numbers would need to be updated. Commissioner Greene said that for her it is a trust issue and that backing off on the commitment does not feel right. She said for her this is a special case. Chair Bedford said she agrees and that she would likely vote against her own vote. VOTE: Ayes, 0; Nays, 7 (unanimous opposition) MOTION FAILS 7 Commissioner McKee said they should start preliminary planning so they can develop a number to talk to the community about. Chair Bedford reviewed CIP-1305, which she sponsored. She said the total across 10 years is $1.8 million. She said that they lease the DSS building, and they put a new roof on, and it still leaks. She said they should focus funds on buildings they own. A motion was made by Chair Bedford, seconded by Commissioner Greene, to approve budget amendment CIP-B05. VOTE: UNANIMOUS Slide #7 Capital Budget Amendments Amendment# Sponsor CIP Budget Department Amendment Year 1 Impact YePage a I Impact ar CIP Scope of Southern Human Services $0 -$9,628,672 IP-1306 Bedford 93 AMS Expansion/Renovation to only improve Health Department spaces. IP-12107 Bedford 105 DEAPR Defer Blackwood Farm Park Equipment $ -$100,000 Purchases to outside of 10 Year CIP window Defer all Conservation Easement $ -$1,500,000 CIP-B08 Bedford 106 DEAPR Investments outside of 10 Year CIP window. Project has existing balance of$1,977,669. $ -$750,000 CIP-BOBB Greene 106 DEAPR Half Conservation Easements Defer all Lands Legacy investments outside $ -$1,750,00 CIP-BO9 Bedford 110 DEAPR of 10-year CIP window.Project has existing balance of$2,145,205. $ -$875,000 CIP-BO9B Greene 110 DEAPR Half Lands Legacy Investments CIP-B10 Bedford 108 DEAPR Defer Fairview Park Expansion outside of 10- $ -$1,959,683 year CIP window ORANGE COUNTY 7 NORTH CAROLINA Chair Bedford reviewed amendment CIP-B06, which she sponsored. She said that this project was approved a long time ago. She said one part of the project was to expand the Southern Human Services Center BOCC meeting room. She asked about pros and cons of the project. She said she did not consider this project when looking at the other needs in the county. Commissioner McKee said expanding the meeting room was when they were meeting in different areas ten or fifteen years ago. He said they seldom have an overflow crowd. A motion was made by Chair Bedford, seconded by Commissioner Carter, to approve budget amendment CIP-1306. VOTE: UNANIMOUS Chair Bedford reviewed amendment CIP-1307, which she sponsored. She said there's funding for the park that has not been spent that could be used for the project. Commissioner Greene said that was helpful information. Travis Myren said the balance is $1.3 million, which is sufficient. 8 A motion was made by Chair Bedford, seconded by Commissioner Fowler, to approve budget amendment CIP-B07. VOTE: UNANIMOUS Chair Bedford reviewed amendments CIP-B08 and CIP-B09, which she sponsored. She said the next two amendments should be considered with it. She said she had forgotten about the grant. She said they have a match of over $1 million. She said Commissioner Greene has a substitute. Commissioner Greene reviewed amendments CIP-B08B and CIP-B09B. She said what is really remaining is $2.45 million. She said they have matching funds from the state. She said that some funds could also come from third parties. She said that this makes sure there is steady income in the easement funding. She said that she proposes taking the funds and cutting them in half. She said there are non-monetary reasons to do it as well. She said that Farmland Preservation understood there was several million remaining in the fund. A motion was made by Commissioner Greene, seconded by Commissioner McKee, to approve budget amendments CIP-B08B and CIP-B09B. Commissioner McKee said this does not impede their work and it also reigns in future expenses. VOTE: UNANIMOUS Chair Bedford withdrew amendments CIP-B08 and CIP-B09. Chair Bedford reviewed amendment CIP-B10, which she sponsored. She said she has zero faith that DEQ will fund the treatment and cleanup. She said that when that happens, they would do phase 2. She said there are bad chemicals there. She said it could even be a superfund site. She said they will have a report later and this project would go on the horizons list. She said there is no reason that they should have funds holding space in the CIP. Commissioner Portie-Ascott asked if they can move forward before the state does their part. Chair Bedford said no, but they are still doing the soccer goals. Commissioner McKee said some of the buried items are working their way back up to the top of the ground. He said it is not safe to put anyone in the area. A motion was made by Chair Bedford, seconded by Commissioner Carter, to approve budget amendment CIP-B10. VOTE: UNANIMOUS 9 Slide #8 Capital Budget Amendments Lands Legacy and Conservation Easements Balances • Balance of funding at 6/2 for both projects Project Conservation Easements Lands Legacy Total Project Balances at W2 $ 1,972,011.81 $2,144,205.43 $4,116,217.24 Budgeted Anticipated Grant Match $ 266,248.00 $ - $ 266,248.00 Pending/Approved Projects(County Share) $ 500,065.00 $ 228,000.00 $ 728,065.00 Current Unassigned County Funding $ 1,205,698.81 $1,916,205.43 $3,121,904.24 Average 10 yearAnnual Spend $ 161,235.65 $ 26,675.12 $ 187,910.77 • Pending/Approved Projects includes — $228,000 approved by Board of Commissioners — $222,000 pending approval on 613 — $278,065 identified projects not yet approved by Board of Commissioners ORANGE COUNTY 8 NORTH CAROLINA Slide #9 Capital Budget Amendments Amendment# Sponsor CIP Budget Page r. r CIP-B11 Bedford 108 DEAPR dd funding for Soccer goals at Fairview Park in $30,00 $30,00 ear 1 of CIP. $ -$3,450,00 IP-B12 Bedford 112 DEAPR Defer W house Park outside of 10-year CIP window Defer Socoer.COM Phase II expansion outside of -$3,960,00 IP-B13 Bedford 117 DEAPR 10-year CIP �1 ORANGE COUNTY 9 NORTH CAROLINA Chair Bedford reviewed amendment CIP-B11, which she sponsored. She said the schools said they would like to use the Soccer.com site for an elementary school location. She said that also changes how in depth they need to go thinking about Millhouse Park. She said that she suggests deferring because they do not have funds for the park now. She said that they should have a work session about this. 10 A motion was made by Chair Bedford, seconded by Commissioner Fowler, to approve budget amendment CIP-1311. VOTE: UNANIMOUS A motion was made by Chair Bedford, seconded by Commissioner McKee, to approve budget amendment CIP-1312. VOTE: UNANIMOUS Chair Bedford reviewed amendment CIP-1313, which she sponsored. A motion was made by Chair Bedford, seconded by Commissioner Greene, to approve budget amendment CIP-1313. VOTE: UNANIMOUS Slide #10 Capital Budget Amendments Tax Impact of Bedford Amendments: Does not include Staff or School Pay-Go Amendments Current Debt Model All Bedford Amendments Year DS to GF Debt Tax Rate DS to GF Debt Tax Rate Revenues Equivalent Revenues Equivalent 2026 11.20% - 11.20% - 2027 13.10% 2.42� 13.10% 2.420 2028 14.16% 1.424 14.15% 1.410 2029 16.50% 2.844 16.47% 2.824 2030 17.78% 1.55* 17.71% 1.48� 2031 17.87% 0.18t 17.73% 0.10t 2032 17.75% - 17.60% - 2033 18.61% 0.994 18.38% 0.866 2034 19.16% 0.8N 18.79% 0.64¢ 2035 18.00% - 17.62% - otalImpact 10.195 9.740 Debt Model does not change if amendment 02B is ORANGE COUNTY 10 substituted. NORTH CAROLINA 11 Slide #11 Capital Budget Amendments Amendmen Sponsor CIP Budget Page Department Amendment Year 1 Impact 10 Year CIP t# impact Enable a 1.79 cent reduction in the FY 5-26 tax increase by amending School apital Pay-Go Phase-in to $500k in Carter,Portie- ear 1,$6M in year 2,$10M in year 3. CIP-1314 Ascott,Hamilton, 131-154 Schools Planning for Major Projects fully funded -$500,000 -$9,900,000 McKee y accelerating bond spending in year 1 nd year 2.Reduces 10 year Pay-Go Funding for School Major Projects by 9.9 M. ORANGE COUNTY 11 NORTH CAROIANA Commissioner Carter reviewed amendment CIP-B14, which she co-sponsored. She said the objective was to see if there was a way to minimize tax increases, considering feedback from the community and economic uncertainty. She said residential property owners will pay more in taxes due to the increase in valuation of their properties. She said voters approved a bond referendum in Fall 2024 for schools. She said that the Board is looking for a balance between the two approaches. She said that the Board was presented several options by staff in May, and this amendment was part of"Framework 2." She reviewed the changes in funding as listed on slide #9. Commissioner McKee said that the impact of the change will reduce the 2025-26 to be much closer to the revenue neutral rate. He said that this amendment would make the rate 63.0 and that is only 1.19 cents higher than revenue neutral rates. He said this does not account for the CHCCS special district tax,fire district tax, or municipalities. He said it might make a difference for someone living paycheck to paycheck. Commissioner Portie-Ascott said that while this amendment reduces the total available in the pay-go bond plan, it is an opportunity to blunt some of the impact of the multi-level tax impacts they are seeing this year. She said another upside is that it smooths out the revaluation. She said that it is worth noting that the bond referendum did not mention the pay-go amounts. She said the Board has made it clear that the intent of the pay-go was to provide flexibility and due to the unique moment, this flexibility is needed. Commissioner McKee said support for this amendment would be very much appreciated by many residents that are on fixed incomes or working lower paying jobs. Vice-Chair Hamilton said her colleagues did a great job on the amendment. She said that everyone must make adjustments considering the budget situation. She said they must think of those who don't have much and that even small reductions could make a difference. Commissioner Fowler said she respects the concerns, but she would rather support what was recommended by the County Manager because the tax rates will need to be raised in future years. She said they have reviewed the debt model in detail. She said even with the current plan it gets them only about 1/3 of the need. 12 Commissioner Greene said she had said that this is backtracking on their commitment but due to the times and the needs, she supports it. A motion was made by Commissioner McKee, seconded by Commissioner Portie-Ascott, to approve budget amendment CIP-1314. VOTE: Ayes, 6 (Chair Bedford, Vice-Chair Hamilton, Commissioner Carter, Commissioner Greene, Commissioner McKee, Commissioner Portie-Ascott); Nays, 1 (Commissioner Fowler) MOTION PASSES Commissioner McKee said for anyone who listening, there was a reasonable statement and valid reason to oppose this. He said there are occasionally "no" votes, and he asked people to listen to the explanation. Slide #12 Capital Budget Amendments Tax Impact of Pay-Go Amendment: Does not include impact of Staff or Bedford amendments. FY 25-26 Pay-Go is reduced to$500 K for project management, FY 26-27 Pay-Go is reduced to$6 M, FY 27-28 remains at $10 M. No additional Pay-Go is added back. Year Debt to AV DS to GF Debt Tax Rate Pay Go Tax Rate Impact on School Projects Revenues Equivalent Equivalent $9.9 M reduction in total pay-go funding for schools 2026 1.24% 11.42% - 0.154 over 10 years, pushing out multiple High Priority Needs 2027 1.53% 13.27°% 2.420 1.634 Reduction puts pressure on either 3rd 2028 1.81% 14.26% 1.514 1.164 project or rest of district portfolio. Districts would have 2029 1.81% 16.74% 3.020 - to prioritize how to absorb their cuts. 2030 1.62% 18.05% 1.584 2031 1.63°% 18.06% 0.090 2032 1.80% 17.79% - Impact on Tax Impact _. 2033 1.69% 18.67% 0.680 Borrowing is accelerated so tax increases for debt 2034 1.46% 19.16% 0.874 come in faster in 28-30, but same total. 2035 1.34% 17.99% - Pay-Go impact In 26 reduced to.15 cents, but Total Impact 10.184 2.954 consecutive multi-cent tax increases between 27-29, ORANGE COUNTY 12 including 4.05 cent tax increase in 27. WORTH CAROLINA 13 Slide #13 Capital Budget Amendments Tax Impact of All Amendments Passing: Current Debt Model All Amendments Approved Model Year DS to GF Debt Tax Rate Pay Go Tax Rate DS to GF Debt Tax Rate Pay Go Tax Rate Revenues Equivalent Equivalent Revenues Equivalent Equivalent 2026 11.20% 1.944 11.42% 0.15Q 2027 13.10% 2.42t 1.M 13.24% 2.40t 1.630 2028 14.16% 1.42a 14.35% 1.67t 1.165 2029 16.50% 2.84t 17.06% MU - 2030 17.78% 1.55� 18.14% 1.33t 2031 17.87% 0.18t 17.80% 2032 17.75% 17.54% 2033 18.61% 0.99t 18.44% 2034 19.16% D.EIN 18.77% 0.79t 2035 18.00% 17.60% - otal 10.19t 3.01R 9.501 2.95t 3 ORANGE COUNTY 2. Discussion of FY 2025-26 Operating Budget • Funding Decisions on the Operating Budget Amendment List • Funding Decisions for Chapel Hill-Carrboro City Schools and Orange County Schools o Current Expense (Per Pupil) The Board reviewed, discussed and made decisions regarding the FY 2025-26 Manager's Recommended Orange County Annual Operating Budget and approve a Resolution of Intent to Adopt the FY 2025-26 Orange County Annual Operating Budget. BACKGROUND: The County Manager presented the FY 2025-26 Recommended Budget on May 6, 2025. Subsequently, the Board has conducted two public hearings to receive residents' comments regarding the proposed funding plan. In addition to the public hearings, the Board heard presentations and held discussions with representatives of the County fire districts, the local boards of education, representatives of the community college, and County Functional Leadership Teams as related to the proposed funding plan for FY 2025-26. Tonight's Agenda: Tonight's work session offers the Board an opportunity to discuss the recommended budget, including discussion and review of the Budget Amendment list. As soon as these discussions are completed, the Board will deliberate and make decisions regarding the FY 2025-26 Annual Operating Budget and approve a Resolution of Intent to Adopt the FY 2025- 26 Annual Operating Budget. The Board is scheduled to adopt the final FY 2025-26 Annual Operating Budget for Orange County at its Business meeting on June 17, 2025. A DRAFT Resolution of Intent to Adopt the FY 2025-26 Budget is attached for reference. The sections highlighted in yellow reflect areas that could be adjusted based on the current list of posted amendments. 14 Travis Myren continued the presentation: Slide#14 Operating Amendments Amendment Sponsor Page Revenue Expense Total Remove County Funding for CJRD& 01 of CJRD and Sheriff's 013-S01 Staff 126&210 Sheriff Mental Health Staff due to ($50,400) ($50,400) resumption of grant funds for 1"Quarter Staff amendment based on NC Department of Health and Human Services notice that Community Care and Diversion Response Grant funding would be restored through September 30,2025. Creates$50,400 savings that could partially offset other Board Amendments,or lower tax rate between.01 and.02 cents. Savings are one-time "General Fund Totarrefiecfs the running total impact of revenues and expenditures ofcumulafive amendments.County must pub fish a balanced budget,so finat amendment wili be to adjust the budget to balance revenues and expenditures. ORANGE COUNTY 14 NORTH CAROLINA A motion was made by Chair Bedford, seconded by Vice-Chair Hamilton, to approve budget amendment OP-S01. VOTE: UNANIMOUS Slide #15 Operating Amendments Amendment Sponsor Budget Department Amendment General Fund General Fund General Fund Page Revenue Expense Total Provide$44,379 in Article 46 OP-1301 Greene 148 Durham Tech Funds to Durham Tech to close ($50,400) operational gap OP-1301 Greene 76 Economic Reduce$44,379 in Incentive Development Payments in Article 46 ($50,400) ORANGE COUNTY 15 NORTH CAROLINA 15 Commissioner Greene reviewed amendment OP-B01, which she sponsored. She asked the County Manager to discuss the reduction of incentive payments. Travis Myren said for them to have the funds to spend on operating on Durham Tech, the funds must come from somewhere. He said it would not have to come from the incentive payments, and it could come from another area, but these may not as dramatic. Commissioner McKee asked what the other options would be because he wants to keep a balance in the incentive fund. Commissioner Greene said these are incentives that have already been obligated. Slide #16 Operating Amendments • 0P-B01 may expand the modeled gap in the Article 46 fund in FY 2026-27 • The gap can be reduced by reallocating unspent balances each year to fund incentives, by reducing other investments in the fund, or if Incentive schedule is lighter than modeled due to lower tax burdens, slowed investments or missing performance benchmarks. • Gap would be expanded if Article 46 Sales Tax revenues continue to miss budgeted targets. • Because the funding gap is non-structural, county may be able to use one-time revenues to cover in FY 26-27. Article46 Funding FY25.26 FY26-27 FY27-28 FYZS-29 Revenue $ 3,195,999 $ 3,323,839 $3,456,793 $3,595,065 Debt Service $ 1,009,605 $ 1,031,755 $ 1,015,514 $ 819,079 Economic Development Department $ 458,060 $ 523,312 $ 545,979 $ 569,779 Support for General Fund Expenditures $ 276,692 $ 289,627 $ 303,209 $ 317,468 Outside Grants and Initiatives+Durham Tech's Operating Gap $ 918,100 $ 946,987 $ 914,071 $ 934,627 New Incentive Money $ 533,542 $ 532,158 $ 678,021 $ 954,112 Net Article 46 Costs $ Incentive Starting Balance $ 1,027,637 $ 472,349 Incentive Payments $ 1,088,830 $ 1,391,979 $ 739,494 $ 690,344 Incentive Deficit/Surplus $ 472,349 $ (387,472) $ (61,473) $ ORANGE COUNTY 16 NORTH CAROLINA Chair Bedford referred to slide #16. She said that it really is a timing issue. Commissioner McKee said it sets a precedent for going to that fund when they need to. He said that is his opposition. He said he would prefer to find another revenue source. Commissioner Fowler said they will have to pay that no matter what so the rest will come from the general fund. Chair Bedford said it is a timing issue and next year they will have to supplement. She said there is a long list of where it could come from, but they do a budget amendment every month, so maybe if scholarships are not funded, they could adjust the money. Commissioner McKee said he will vote against the second part and not the first part. Vice-Chair Hamilton asked if the incentive starting balance is the fund balance in Article 46. Travis Myren said it is the balance in that particular project. Vice-Chair Hamilton asked if there are other Article 46 balances. Kirk Vaughn, Budget Director, said to close accounts and gaps, they review each balance every year and reallocate them towards to incentives. He said that Article 46 has projects that are getting funding and there are some that have not gone forward. Commissioner McKee said it makes sense. 16 A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to approve budget amendment OP-B01 and reduce Article 46 surplus funding at the Budget Director's discretion by $44,379. Commissioner McKee asked that the two parts of OP-B01 be voted on separately. Chair Bedford said they are both part of the same amendment and would not be separated. VOTE: UNANIMOUS Slide #17 Operating Amendments Amendment G-n er.IJ eneral Fund General u Amendment Sponsor Budget Page Department Revenjue F.nd Total Increase CHCCS district tax by.76 cents,generating$1,514,484 for the OP-1302 Fowler 148 CHCCS district.Leaves district$301,213 short $7 610 of Continuation Estimate.County tax ($58,010) collection fee will generate additional funding for General Fund OP-1303A Fowler 178 Housing Direct surplus from District Tax $7,610 ($50,400 Collection Fee to LHA program Would result in a$30.40 tax increase on a$400,000 home in the CHCCS District ORANGE COUNTY 17 NORTH CAROLINA Commissioner Fowler reviewed amendments OP-1302 and OP-B03A, which she sponsored. Vice-Chair Hamilton said that there is a difference between the northern and southern parts of the community of what they believe they can pay for. Commissioner McKee said the issue for him is that there are two systems in the county that are not funded at the same rate. He said he was going to remain consistent. Chair Bedford said it is indirect. Commissioner Portie-Ascott said they all value education, and another one of their priorities is housing for all. She said she would not support the amendment. Commissioner Greene asked if there is an alternative to the proposal. Chair Bedford said there might be. Commissioner Carter said she greatly appreciates her colleagues' advocacy for the schools, and she shares the passion. She said this change will result in a $30 increase on a $400,000 home. She said this negates the$70 savings that they just approved in the other budget amendments. She said they have received emails from people saying they would happily pay a tax increase for the schools. She said that there are also people that they do not hear from. She said this is difficult because both of her children graduated from CHCCS, and she wants to 17 continue to support them. She said the solace she received is that the funding provides an increase for both districts. She said that since 2024-25, Orange County is providing 1.3% from the special district tax, which is less than the continuation ask, but more than where they landed at the end of 2024-25. She said there is also an increase of Orange County's contribution to CHCCS. She said the amendment would increase the amount of the special district tax 6.6%. She said this is different from the request. She said that many people think there is a cut to the budget but there is not. She said they are trying to find ways to meet the increase that has been requested. Commissioner Fowler said the increase is to meet their continuation budget. She said that means they need an increase just to meet what they provided last year. Vice-Chair Hamilton said it is important to realize that the continuation budget is just trying to maintain what they currently have. She said that is a big gap to fill. She said she must balance the investments for children, and she thinks the gap is too large Chair Bedford said that two years ago the county increased the special district tax by 1.5 cents. She said that had not been done since Northside Elementary School opened. She said they have gone down by 1,000 students and in the recent SAPFO report, they were down another 113. She said that the school board had a plan to save $2.5 million annually going forward and they had a one-time $100,000. She said she was expecting to see their fund balance increase, but it is only $40,000, and negative once they have the required set-aside. She said she is concerned about the school board's decisions to not close an elementary school, which would save personnel funding. She said they also have not redistricted since Northside and that was 12 or 13 years ago. She said the school board needs to right size their budget. She said she believes in the district tax when it is used wisely. She said she could not support the full request, but can compromise on half of that. A motion was made by Commissioner Fowler, seconded by Chair Bedford to approve budget amendment OP-B02 to increase the CHCCS district tax by .38 cents and to direct the district tax collection fee of$3,805 to the LHA program as part of OP-1303A. Commissioner Greene said she has been going back and forth on her decision. She said that she does support the half measure. Commissioner Carter said it is interesting to consider if they are at a point to have conversations with their colleagues at Orange County Schools to change their taxing model. Chair Bedford said that the school board said no because the tax base is inequitable. She said they said that the per pupil is more important to meet their needs, which she agrees with. She said she would ask at school collaboration meetings. Commissioner Carter said there is a perception that one district has more resources and it's important to ask how to continue to progress. She said demographics are changing. She said there maybe there is a moment in time when the districts discuss what they are looking for. Chair Bedford said that is what the joint meetings should be focused on, especially knowing what they know. She said she will bring it up at the next school collaboration meeting. VOTE: Ayes, 5 (Chair Bedford, Vice-Chair Hamilton, Commissioner Carter, Commissioner Fowler, Commissioner Greene); Nays, 2 (Commissioner McKee, Commissioner Portie- Ascott) MOTION PASSES 18 Slide #18 Operating Amendments Amendment Sponsor Budget Department Amendment Genera I Fund General Fund General Fund Page Revenue Expense Total OP-B03B Hamilton 178 Housing Increase LHA program budget $100,000 $49,600 by$100,000 to$374,000 OP-130313 Hamilton 194 Non- Decrease Social Justice Departmental Reserve Fund to cover LHA ($100,000) ($50,400) Would leave$150,000 in Social Justice Reserve for emergent needs 18 ORANGE TTOR'FH CA OUN TY Vice-Chair Hamilton reviewed amendment OP-130313, which she sponsored. She said that the revaluation is going to affect a lot of residents and the program will need more funds. She said it is appropriate to take the funds from the Social Justice Reserve Fund. Commissioner Fowler said she wholeheartedly agrees. A motion was made by Vice-Chair Hamilton, seconded by Commissioner Fowler, to approve budget amendment OP-B03B. Chair Bedford said she is concerned it is not enough money. Commissioner McKee said they can shift funds later if more is needed. Chair Bedford asked Travis Myren to keep them informed. VOTE: UNANIMOUS 19 Slide #19 Operating Amendments — From May 22 Presentation, shows impact of LHA program on FY 2025 LHA cohort. — Hamilton-Fowler Amendments would increase funding to provide proportional benefit and absorb an increased cohort. Funding Program 2. Recommended FowlerAmendment Hamilton Amendment Fowler+Hamilton Budget 11 1 Amendments Award Amount $274,000 $281,610 $374,000 $381,61 $472 $485 $644 $65 21/° 21% 28%° 29% ORANGE COUNTY 19 NORTH CAROLINA Slide #20 Operating Amendments Budget General Fund General Fund General Fund Amendment Sponsor Page Department Amendment it Revenue Expense Total Emergency Crisis Counselor OP-B04 Carter 152 Services �c.nCtrontt'nue ac with Town of Chapel Bill $97,211 $46,811 with General Fund. • County has applied for another year of NCDHHS grant funding for CARES team, including this position; will likely not know funding outcome in time for FY 2025-26 Budget Ordinance • Funding for contract will cost equivalent of.03 cent tax increase, though is partially offset by Staff amendment ORANGE COUNTY 20 NORTH CAROLINA Commissioner Carter reviewed budget amendment OP-B04, which she sponsored. She said this amendment would help ensure that the position would continue despite state funding uncertainty. She said this position may not be renewed and this is an insurance policy to make sure that position is funded. She said that the position works to direct individuals in a mental health crisis away from law enforcement and into appropriate care. She said this is a two-year pilot and 20 is a partnership between Orange County and the Town of Chapel Hill Police Department. She said that the position is housed in Chapel Hill because they have the oversight required for this crisis counselor. She said the team is the crisis counselor and the mobile team that has a peer support specialist, an EMT, and a mobile crisis counselor. She said in the 10 months ending in March 2025, the team has served 824 individuals, 1,395 events, and 98% of the events did not result in, or were diverted from an arrest. She said the total personnel cost for the position is $97,111 and that is partially offset by staff's first operating amendment, B04. She said that provided $50,000 back for mental health and police work. She said the return of that money to the general fund provides the opportunity to offset some of that. She said the effective cost is less than $1 for a home that is appraised at $400,000. She said this small investment provides preventative measures for community members in crisis. Chair Bedford asked if this is related to the 911 position the County Manager discussed. Travis Myren said part of the mobile crisis team is a response team and in addition to that response team, the original program design had a crisis counselor that is in the 911 center that would help divert calls and deescalate while the team is enroute. He said that in the recommended budget, the DHHS grant has expired, and his recommendation was to preserve the response unit but not the crisis counselor in the 911 center. He said they have applied for a grant to support the entire team and if they receive that, they will contract with Chapel Hill. He said that Chapel Hill has a crisis apparatus and supervision with all the appropriate training. He said that is why they contracted with Chapel Hill instead of creating a county position. Chair Bedford said that cleared it up. Vice-Chair Hamilton asked how busy the 911 center is for a clinician, and she said that Travis Myren said a lot of times they are taking regular calls because they do not have a lot of opportunity. She said there is also a national phone number 988 that people can call. She said it is not clear to her that the position is key. She said that she is assuming if the mobile team is going out, they will make the contact. She said that paying a clinician in the 911 center may not be a good use of tax dollars, because the position is not being fully used for their level of credentialing. Commissioner Carter said that as a family member of someone who struggles with mental health issues, that call to the first person who picks up the phone and knows how to interact with the caller, is essential. She said that even if a fraction of those individuals receives de-escalatory engagement, then that saves the mobile crisis team from having to go out at all. She said that they could learn more about the numbers if they continue this part of the pilot program. She said these are good questions. She said this could give them more information. Commissioner Fowler asked what happens to funding if they receive a grant. Chair Bedford said it would go back into the General Fund with an amendment. Commissioner Portie-Ascott said it is important to have a person who is a clinician who can help them. She said that she received a call from a community member, and she also thinks the clinician position is important. She said she supports the amendment. A motion was made by Commissioner Carter, seconded by Commissioner Portie-Ascott, to approve budget amendment OP-1304. VOTE: UNANIMOUS 21 Slide #21 Operating Amendments Amendment Sponsor Budget Department Amendment General Fund General Fund General Fund Page Revenue Expense Total Portie-Ascott, Board of Fund 1.0 FTE starting OP-B05 Carter 85 Elections 1/1/2026 for Election $35,905 $82,716 Coordinator • Board of Elections requested 1.0 FTE Election Coordinator due to increasing complexity and requirements of State and Federal Election laws • Amendment would fund position starting mid-year, costing equivalent of.01 cent tax increase • County would have to annualize cost for FY 26-27 budget ORANGE COUNTY 21 NORTH CAROLINA Commissioner Portie-Ascott reviewed budget amendment OP-1305, which she co- sponsored. She said the demands on election staff are year-round and require institutional knowledge and they should start building the capacity mid-year, which is a fiscally responsible. She said that this would help prepare for the 2026 general election and beyond and gives staff critical support. A motion was made by Commissioner Portie-Ascott, seconded by Commissioner Greene, to approve budget amendment OP-1305. Commissioner McKee said that this is a wise move especially given the atmosphere of politics. He said that he does not want to allow any opportunity for anyone in Orange County called into question because they were not fully staffed. Commissioner Fowler said this is a bargain for ensuring election integrity. Commissioner Carter agreed with Commissioner Fowler, and said that the legislature continues to pile on additional requirements and changes. VOTE: UNANIMOUS 22 Slide #22 Operating Amendments SponsorAmendment Page Revenue Expense Total Apply 10%Travel and OP-606 Carter 83 Bocc Training reduction to Board of County ($2,540) $80,176 Commissioners. • Departments headed by elected officials were excluded from Countywide Travel&Training reductions 22 ORAN GE�COUNTY N4DLINA Commissioner Carter reviewed budget amendment OP-1306, which she sponsored. A motion was made by Commissioner Carter, seconded by Vice-Chair Hamilton, to approve budget amendment OP-1306. VOTE: UNANIMOUS Commissioner McKee asked that they all be mindful that there are seven total when they are signing up for travel, himself included. He said he went to Michigan last year and likely won't due to the cost. Chair Bedford said that Laura Jensen looked at the reduction and that they should be ok. She said that the funds cover ten people because it is seven commissioners and three employees. She said she would monitor the fund and provide a quarterly report. 23 Slide #23 Operating Amendments Amendment Sponsor Budget Department Amendment General Fund General Fund General Fund Page Revenue Expense Total Carter, Portie- Reduce FY 25 26 tax Ascott, 230& increase by 1.79 cents OP-B07 Hamilton, 148 Schools based on reduction of ($5,906,173) ($5,900,000) $86,349 McKee Transfer to School Capital for Pay-Go; see CIP-B14 • This amendment accounts for the impact of CIP-1314 on the General Fund, if passed. • 1.79 cents would equate to a$71.60 savings on the tax bill of a$400,000 property ORANGE COUNTY 23 NORTH CAROLINA A motion was made by Commissioner Carter, seconded by Commissioner Portie-Ascott, to approve budget amendment OP-1307. VOTE: Ayes, 6 (Chair Bedford, Vice-Chair Hamilton, Commissioner Carter, Commissioner Greene, Commissioner Portie-Ascott, Commissioner McKee); Nays, 1 (Commissioner Fowler) MOTION PASSES Slide #24 Operating Amendments Amendment Sponsor Budget DePage Revenue Expense Total partment Amendment General Fund General Fund General Fund budget based on OP-B99 All approved board $86,349 $0 amendments. • This amendment balances the budget based on combination of approved Amendments to Proposed Budget. • Would represent.03 cent increase if all amendments pass as written. Staff will provide updated impact based on final adopted amendments. ORANGE COUNTY 24 NORTH CAROLINA 24 A motion was made by Chair Bedford, seconded by Commissioner Fowler, to approve budget amendment OP-B99. VOTE: UNANIMOUS Slide #25 Operating Amendments Countywide Tax Impact on $400,000 Home x Rate per$100 of ValujV� Taxes on$400,000 Home MF A (County Portion) Manager's Recommended Tax Rate 65.59 cents $2,623.60 School Pay-Go Amendment -1.79 cents -$71.60 Proposed Operating Amendments 0.03 cents $1.20 New Tax RatelTax Bill 63.83 cents $2,553.20 Difference from Recommended -1.76 cents -$70.40 Budget 1.19 cents above revenue neutral ORANGE COUNTY 2S NORTH CAROLINA Slide #26 Operating Amendments Pre-Revaluation Comparison with Fire District Tax FY2024-25 Recommended Amended Property Value $257,964 $400,000 $400,000 County Tax Rate 86.29 cents 65.59 cents 63.83 cents Per$100 of Value County Tax Bill $2,226 $2,624 $2,553 Orange Rural Fire District 11.49 cents 9.21 cents 9.21 cents Fire Distrlct Tax $296 $368 $368 Total $2,522 $2,992 $2,921 Difference from $470 $399 FY2024-25 ORANGE COUNTY 26 NORTH C-AROLINA 25 Slide #27 Operating Amendments Pre-Revaluation Comparison with CHCCS District Tax FY2024-25 Recommended Amended Property Value $257,964 $400,000 $400,000 County Tax Rate 86.29 cents 65.59 cents 63.83 cents Per$100 of Value County Tax Bill $2,226 $2,624 $2,553 Special District Tax Rate 19.80 cents 14.41 cents 15.17 cents Per$100 of Value Special District Tax $511 $576 $607 Total $2,737 $3,200 $3,160 Difference from FY2024-25 $463 $423 ORANGE COUNTY 27 NORTH CAROLINA Slide #28 Recommended School Funding Per Pupil Allocation Special District Tax for Chapel Hill-Carrboro City Schools Total Current Expense Budget $111,328,011 District Total Countywide Budgeted Students 18,943 — 14.41 in Manager's Recommended Per Pupil Amount $5,877 Budget. — Would Generate$28,800,416 — OP-1302 would increase to 15.17 District Budgeted • • — Would Generate$30,314,900 Students Per Pupil � Allocation CHCCS 11,018 $5,877 $64,752,786 OCS 7,925 $5,877 $46,575,225 ORANGE N COUNTY CAROL INA 28 26 3. Discussion and Decision on the FY 2025-26 County Fee Schedule Slide #29 County Fee Schedule • No amendments proposed ORANGE COUNTY 29 NORTH CAROLINA 4. Discussion and Decision on the FY 2025-26 Tax Rates i. County Ad Valorem Tax ii. Chapel Hill-Carrboro City Schools Special District Tax iii. Fire District Tax Rates Slide #30 Tax Rates Table Fire District Tax Rates • Approve the Countywide Ad Valorem (Property)Tax Recommended, 0 25-26 Rate Cedar Grove 7.54 • FY2025-26 rate based on approved operating budget amendments Chapel Hill 11.50 Damascus 10.20 Efland 8.38 • Approve the Chapel Hill-Carrboro City Schools Eno 8.71 Special District Tax Rate— 14.41 cents or 15.17 Little River 5.35 cents. New Hope 12.50 Orange Grove 7.00 • Approve the County Fire District Tax Rates in Orange Rural 9.21 Table 1 South Orange 8.17 Southern Triangle 10.20 White Cross 14.00 ORANGE COUNTY 30 NORTH CAROLINA 27 5. Break(to allow Budget staff to formulate the Draft Resolution of Intent to Adopt FY 2025- 26 Operating Budget) A motion was made by Chair Bedford, seconded by Commissioner Fowler, to recess the meeting for 15 minutes. VOTE: UNANIMOUS A motion was made by Chair Bedford, seconded by Commissioner Fowler, to reconvene the meeting at 9:15 p.m. VOTE: UNANIMOUS 6. Resolution of Intent to Adopt the FY 2025-26 Orange County Budget • Approval of Resolution of Intent to Adopt FY 2025-26 Annual Operating Budget at the Board of County Commissioners' Business Meeting on June 17, 2025 Kirk Vaughn, Budget Director, reviewed the following resolution: Resolution of Intent to Adopt the FY2025-26 Orange County Budget The items outlined below summarize decisions that the Board acted upon June 5, 2025 in approving the FY2025-26 Orange County Annual Operating Budget and the FY2025-26 (Year 1) Capital Investment Plan Budget. WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2025-26 Manager's Recommended Budget and the FY2025-26 Manager's Recommended Capital Investment Plan Budget; and WHEREAS, the Commissioners have agreed on certain modifications to the Manager's Recommended Budget as presented in the FY2025-26 County Manager's Recommended Budget on May 6, 2025; and to the FY2025-26 Manager's Recommended Capital Investment Plan Budget as presented on April 1, 2025; NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its intent to adopt the FY2025-26 Orange County Budget Ordinance on Tuesday, June 17, 2025, based on the following stipulations: 1) Property Tax Rates a) The ad valorem property tax rate shall be set at 63.83 cents per$100 of assessed valuation. b) The Chapel Hill-Carrboro City Schools District Tax shall be set at 14.79 cents per $100 of assessed valuation. c) The Fire District and Fire Service District tax rates shall be set at the following rates (all rates are based on cents per $100 of assessed valuation): 28 • Cedar Grove 7.54 • Greater Chapel Hill Fire Service District 11.50 • Damascus 10.20 • Efland 8.38 • Eno 8.71 • Little River 5.35 • New Hope 12.50 • Orange Grove 7.00 • Orange Rural 9.21 • South Orange Fire Service District 8.17 • Southern Triangle Fire Service District 10.20 • White Cross 14.00 2) County Employee Pay and Benefits Plan Provide a County employee pay and benefits plan that includes: a. 2% wage increase for permanent employees in active status on June 30, 2025. Continuation of Merit Pay Program on employees' base salaries, payable in January 2026, at tiers of$561 for proficient performance; $842 for superior performance or $1,122 for exceptional performance. Page 235 b. A change in the salary schedule recognizing $18.18 per hour as the living wage for permanent and temporary employees and recognizing the 2% wage increase, effective July 1, 2025. Page 237 c. Increase the per pay period County contribution to non-law enforcement employees' supplemental retirement accounts to $102 per paycheck, continue the mandated Law Enforcement Officer contribution of 5.0% of salary. Page 251 d. Continue the County's required contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. For FY 2025-26, the Law Enforcement Officers' (LEDs) rate increases from 15.10 to 16.10 percent of reported compensation, and all other employees' rate increases from 13.60 to 14.35 percent of reported compensation. Page 250 e. Continue to provide medical, dental, vision plans, and current voluntary benefit plans to employees. Page 258 29 3) Adjustments to Operating And Capital Budget Amendment Sponsor Budget Page D 9part.. WWAm!nnc1me7tq[GeneraI Fund Revenue General Fund Expense General Fund Total Remove County Funding for Q1 of CJRD OP-S01 Staff 126&210 CJRD&Sheriff and Sheriffs Mental Health Staff due to ($50,400) ($50,400) restart of grant OP-601 Greene 148 Durham Tech Provide$44,379 in Article 46 Funds to ($50,400) Durham Tech to close operational gap OP-1301 Greene 76 Economic Reduce$44,379 in Article 46 ($50,400) Development Increase CHCCS district tax by.38 cents, generating$757,242 for the district. OP-1302 Fowler 148 CHCCS Leaves district$1,058,455 short of $3,805 ($54,205) Continuation Estimate.County tax collection fee will generate additional funding for General Fund Direct surplus from District Tax Collection OP-603A Fowler 178 Housing $3,805 ($50,400) Fee to LHA program OP-B03B Hamilton 178 Housing Increase LHA program budget by $100,000 $49,600 $100,000 to$374,000 OP-B03B Hamilton 194 Non- Decrease Social Justice Reserve Fund to Departmental cover LHA ($100,000) ($50,400) OP-1304 Carter 152 Emergency Continue Crisis Counselor contract with $97,211 $46,811 Services Town of Chapel Hill with General Funds. OP-1305 Portie-Ascott,Carter 85 Board of Fund 1.0 FTE starting 1/1/2026 for $35,905 $82,716 Elections Election Coordinator OP-606 Carter 83 BoCC Apply 10%Travel and Training reduction to Board of County Commissioners. ($2,540) $80,176 Carter,Portie-Ascott, Reduce FY 25-26 tax increase by 1.79 OP-1307 Hamilton,McKee 230&148 Schools cents based on reduction of Transfer to ($5,906,173) ($5,900,000) $86,349 School Capital for Pay-Go;see CIP-1314 Fund all board amendments,.03 cent tax OP-1399 All increase,slight decrease to Fund $86,349 $0 Balance. Grand Total r r r 30 CIP-S01 Reduce Construction funds for Crisis Diversion -$285,000 -$285,000 Staff 53 AMS Facility,advanced to FY 24-25 in Budget Amendment CIP-S02 Piedmont Food Processing Center-Utilize Article 46 $0 $0 Staff 82 AMS funded Financing rather than Pay-as-you-Go Funding for FY 26 CIP-S03 Evidence Storage Building reduce footage by -$1,278,500 -$1,278,500 Staff 63 AMS anticipating moving Sheriffs Office and"hot storage" to Link Center Renovations CIP-SO4 Move"Justice System Space Needs"to years 1 and $1,400,000 $0 Staff 78 AMS 2,to renovate the Link Center and move the Sheriff into the facility. CIP-S05 145-148 CHCCS Update Recurring Capital and Article 46 Funding split $0 $0 Staff 161-163 OCS Schools between districts to FY 26 Budgeted ADM.With Article 46 excludin charter students CIP-SO6 Reduce Article 46 funding for schools to$63,921 in -$63,921 -$767,440 146 CHCCS FY 25-26 based on revised sales tax projections,and Staff 161 OCS Schools reduce 10 years to assume 4%growth from that number. CIP-B01 Bedford 52 AMS Reduce scope of Animal Services renovation to just -$298,720 -$298,720 USDA required CIP-B02B Greene 57 Sustainability Remove funding in years 7 and 9 for Community $0 -$424,000 Resilience Hubs CIP-B03 Remove window Coverings for Great Hall at -$61,000 -$61,000 Bedford 76 AMS Seymour Center.Department to use MAP balance for this expense instead CIP-B04 Bedford 88 AMS Reduce scope of RENA renovation to$1 M,split $0 $0 between county and the municipalities CIP-B05 Bedford 91 Sustainability Remove Solar Photovoltaic System for Hillsborough $0 -$532,114 Commons in Years 2 and 3 CIP-BO6 Bedford 93 AMS Reduce Scope on Southern Human Services $0 -$9,628,672 Expansion/Renovation to only touch Health spaces. CIP-B07 Bedford 105 DEAPR Defer Blackwood Farm Park Equipment Purchases $0 -$100,000 to outside of 10 Year CIP window CIP-B08A Bedford 106 DEAPR Half Conservation Easements Investments $0 -$750,000 CIP-B09A Bedford 110 DEAPR Half Lands Legacy investments $0 -$875,000 CIP-B10 Bedford 108 DEAPR Defer Fairview Park Expansion outside of 10 year $0 -$1,959,683 CIP window CIP-B11 Bedford 108 DEAPR Add funding for Soccer goals at Fairview Park in year $30,000 $30,000 1 of CIP. CIP-B12 Bedford 112 DEAPR Defer Millhouse Park outside of 10 year CIP window $0 -$3,450,000 CIP-B13 Bedford 117 DEAPR Defer Soccer.COM Phase II expansion outside of 10 $0 -$3,960,000 year CIP CIP-B14 Enable 1.79 cent reduction in FY 25-26 tax increase -$500,000 -$9,900,000 by amending School Capital Pay-Go Phase-in to Carter,Portie-Ascott, $500k in year 1,$6M in year 2,$10M in year 3. Hamilton,McKee 131-154 Schools Planning for Major Projects fully funded by accelerating bond spending in year 1 and year 2. Reduces 10 year Pay-Go Funding for School Major Projects b $9.9 M. Grand Total Change from Recommended Budget -$1,057,141 -$34,240,129 31 4) Changes in County Staff Positions (Increase in FTE Approved). Department Position Name Fund Start Date FTE Asset Management Services Facilities Maintenance Technician I General Fund 7/1/2025 1.00 Solid Waste-Fleet Automotive Mechanic General Fund 10/1/2025 1.00 Solid Waste-Fleet Automotive Mechanic General Fund 10/1/2025 1.00 Tax Administration Emergency Management Billing&Collection Technician I General Fund 7/1/2025 1.00 Board of Elections Elections Coordinator General Fund 1/1/2026 1.00 County Manager-Arts Commission Program Coordinator Visitor's Bureau Fund 7/1/2025 1.00 ORD Clinical Coordinator Opioid Fund 7/1/2025 0.2S Totals 6.25 5) General Fund Appropriations for Local School Districts The following FY2025-26 General Fund Appropriations for Chapel Hill-Carrboro City Schools and Orange County Schools are approved: a) Current Expense appropriation for local school districts totals $111,328,011 and equates to a per pupil allocation of$5,877 1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is $64,752,786 2) The Current Expense appropriation to the Orange County Schools is $46,575,225. b) School Related Debt Service for local school districts totals $20,840,155. c) Additional net County funding for local school districts totals $7,782,006 (1) School Resource Officers and School Health Nurses Contracts - total appropriation of$4,124,806 to cover the costs of School Resource Officers in every middle and high school, and a School Health Nurse in every elementary, middle, and high school in both school systems. (2) Recurring Capital —total pay-as-you-go funding of$3,621,200 to cover recurring capital funding at both school districts and planning and design funds for bond projects. (3) Enrollment Projections —total funding of$36,000 to contract with Carolina Demography to provide enrollment projects for both districts. This is utilized in the annual SAPFO process and is used to guide capital planning. 6) Capital Investment Plan Funding for FY2025-26 (Year 1) The following FY2025-26 (Year 1) Capital Investment Plan Appropriations are approved: a) Overall Total Capital Investment Plan Funding of$75,322,781 b) County Capital Projects Funding of$38,035,068 c) School Capital Projects Funding of$33,543,419 32 d) Solid Waste Project Funding of$3,274,294 and Sportsplex Project Funding of $470,000 7) County Fee Schedule To adopt the County Fee Schedule to include changes in the FY2025-26 Manager's Recommended Annual Operating Budget and approved by the Board of County Commissioners on June 5, 2025. A motion was made by Commissioner Greene, seconded by Commissioner Fowler, to approve the resolution of intent to adopt the FY 2025-26 Annual Operating Budget at the Board of Commissioners Regular Meeting on June 17, 2025. VOTE: UNANIMOUS Adjournment A motion was made by Vice-Chair Hamilton, seconded by Commissioner McKee, to adjourn the meeting at 9:23 p.m. VOTE: UNANIMOUS Jamezetta Bedford, Chair Recorded by Laura Jensen, Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board