HomeMy WebLinkAboutAgenda 06-04-2026; 2, 3, 4 & 6 - Discussion and Decisions on FY 2026-27 Operating Budget County Fee Schedule and Tax Rates 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 4, 2026
Action Agenda
Item No. 2, 3, 4 & 6
SUBJECT: Discussion and Decisions on FY 2026-27 Operating Budget, County Fee
Schedule, and Tax Rates
DEPARTMENT: County Manager
ATTACHMENT(S): INFORMATION CONTACT:
Resolution of Intent to Adopt the FY Travis Myren, (919) 245-2308
2026-27 Budget — DRAFT Caitlin Fenhagen, (919) 245-2303
Kirk Vaughn, (919) 245-2153
Amendments to the Proposed Budget
available electronically at:
https://www.orangecountync.gov/budget/
amendments
PURPOSE: To review, discuss and make decisions regarding the FY 2026-27 Manager's
Recommended Orange County Annual Operating Budget and approve a Resolution of Intent to
Adopt the FY 2026-27 Orange County Annual Operating Budget.
BACKGROUND: The County Manager presented the FY 2026-27 Recommended Budget on May
5, 2026. 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 2026-27.
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 2026-27 Annual Operating Budget and approve a Resolution of Intent to Adopt the FY 2026-
27 Annual Operating Budget. The Board is scheduled to adopt the final FY 2026-27 Annual
Operating Budget for Orange County at its Business meeting on June 16, 2026.
A DRAFT Resolution of Intent to Adopt the FY 2026-27 Budget is attached for reference. The
sections highlighted in yellow reflect areas that could be adjusted based on the current list of
posted amendments.
FINANCIAL IMPACT: The financial impact is to be determined as the Board finalizes the FY
2026-27 Annual Operating Budget.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• MISSION STATEMENT — Orange County is a visionary leader in providing governmental
services valued by our community, beyond those required by law, in an equitable,
sustainable, innovative and efficient way.
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• VISION STATEMENT — We are a diverse, inclusive, and healthy county working together
to strengthen our community and enhance the quality of life for all residents.
RECOMMENDATION(S): The Manager recommends the Board make decisions regarding the
FY 2026-27 Orange County Annual Operating Budget and approve a Resolution of Intent to Adopt
the FY 2026-27 Orange County Annual Operating Budget.
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RES-2026-039
Resolution of Intent to Adopt the FY2026-27
Orange County Budget
The items outlined below summarize decisions that the Board acted upon June 4, 2026 in approving the
FY2026-27 Orange County Annual Operating Budget and the FY2026-27 (Year 1) Capital Investment Plan
Budget.
WHEREAS, the Orange County Board of Commissioners has considered the Orange County FY2026-27
Manager's Recommended Budget and the FY2026-27 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 FY2026-27 County Manager's Recommended Budget on May 5, 2026; and to
the FY2026-27 Manager's Recommended Capital Investment Plan Budget as presented on April 7, 2026;
NOW THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners expresses its
intent to adopt the FY2026-27 Orange County Budget Ordinance on Tuesday, June 16, 2026, based on the
following stipulations:
1) Property Tax Rates
a) The ad valorem property tax rate shall be set at 67.58 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):
• Cedar Grove 7.54
• Greater Chapel Hill Fire Service District 11.50
• Damascus 11.50
• Efland 8.38
• Eno 10.71
• Little River 6.35
• New Hope 12.50
• Orange Grove 7.00
• Orange Rural 9.21
• South Orange Fire Service District 8.17
• Southern Triangle Fire Service District 11.50
• White Cross 14.00
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RES-2026-039
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, 2026. Continuation of
Merit Pay Program on employees' base salaries, payable in January 2027, at tiers of$572 for
proficient performance; $859 for superior performance or $1,144 for exceptional performance. Page
257
b. A change in the salary schedule recognizing $20.02 per hour as the living wage for permanent and
temporary employees and recognizing the 2% wage increase, effective July 1, 2026. Page 259 &
282
c. Increase the per pay period County contribution to non-law enforcement employees' supplemental
retirement accounts to $104 per paycheck, continue the mandated Law Enforcement Officer
contribution of 5.0% of salary. Page 277
d. Continue the County's required contribution to the Local Governmental Employees' Retirement
System (LGERS) for all permanent employees. For FY 2026-27, the Law Enforcement Officers'
(LEOs) rate increases from 16.10 to 17.10 percent of reported compensation, and all other
employees' rate increases from 14.35 to 15.10 percent of reported compensation. Page 276
e. Continue to provide medical, dental, vision plans, and current voluntary benefit plans to employees.
Page 279
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RES-2026-039
3) Adjustments to Operating And Capital Budget
4) Changes in County Staff Positions
5) General Fund Appropriations for Local School Districts
The following FY2026-27 General Fund Appropriations for Chapel Hill-Carrboro City Schools
and Orange County Schools are approved:
a) Current Expense appropriation for local school districts totals $114,114,132 and equates to a
per pupil allocation of$6,171
1) The Current Expense appropriation to the Chapel Hill-Carrboro City Schools is
$66,282,711
2) The Current Expense appropriation to the Orange County Schools is $47,831,421.
b) School Related Debt Service for local school districts totals $23,297,056.
c) Additional net County funding for local school districts totals $10,968,174
(1) School Resource Officers and School Health Nurses Contracts - total appropriation of
$4,248,550 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$6,683,624 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 FY2026-27 (Year 1)
The following FY2026-27 (Year 1) Capital Investment Plan Appropriations are approved:
a) Overall Total Capital Investment Plan Funding of$150,757,889
b) County Capital Projects Funding of$29,466,204
c) School Capital Projects Funding of$118,807,049
d) Solid Waste Project Funding of$544,636 and Sportsplex Project Funding of$1,940,000
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RES-2026-039
7) County Fee Schedule
To adopt the County Fee Schedule to include changes in the FY2026-27 Manager's
Recommended Annual Operating Budget and approved by the Board of County Commissioners on
June 4, 2026.
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