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Home My WebLink AboutRES-2026-039-Resolution of Intent to Adopt the FY2026-27 Orange County Budget RES =2026 =039 (vI '4 ( a(p � ► CQ 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 FY202 &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 FY202 &27 Manager' s Recommended Budget and the FY202&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 FY202 &27 County Manager' s Recommended Budget on May 5 , 2026 ; and to the FY202 &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 FY202 &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 68 . 05 cents per $ 100 of assessed valuation . b) The Chapel HilkCarrboro 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 Y 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 Page 1 of 5 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 Page 2 of 5 RES -2026 =039 3 ) Adjustments to Operating And Capital Budget Remove operating expenses and OP-SOt Staff 83 AMS Carrboro contribution for 2700 Homestead ($13,363) Road OP-S02 Staff 232 DSS Increase Medicaid Revenue due to State $200 000 $0 ($200,000) Medicaid Rebase bill Human Decrease costs for Cyber Insurance due OP-S03 Staff 198 Resources to effectiveness of county cybersecurily $0 ($100,000) ($100,000) Investments OP-SO4 Staff 232 DSS Reduce estimate for County Day Care $0 ($100,000) ($100,000) based to FY 26 usage Planning & Reduce Transfer to Inspection fund due to OP-S05 Staff 219 & 251 Transfers better revenue in FY 26. Use Inspection $0 ($166,925) ($166,925) Fund Balance Instead Economic Reduce Visitors Bureau Budget by $200k OP-SO6 Staff 152 due to loss of Town of Chapel Hill $0 $0 $0 Development contrilribution Opioid Recognize authorizing $162,216 in OP-S07 Staff 215 Settlement community Opioid Fund grants as $0 $0 $0 approved by the Board on June 2nd Non- Amend the Chapel Hill Library Funding OP-B01 B Greene 209 Departmental reduction to a 3 year phase-in, providing $0 $103,232 $103,232 total funding of $414,216 in FY 27' OP-B04 Greene 192 Housing Increase Funding for Community Home $0 $ 194659 $ 19,659 Trust Increase Current Expense Funding to OP-605B Hamilton 159 Education 4.5% increase ($6,290 Per Pupil) based $1 ,5851963 $2,2001548 $614 ,585 on State Budget & Raise Taxes .47 Reduce spending in Visitors Bureau Fund to Redirect Occupancy Tax Funds to offset OP-B07A Hamilton 152 Visitors Bureau General Fund Expenses. Direct Manager $150,000 $0 ($150,000) to make Visitors Bureau and Arts Commission reductions. Reduce DEAPR Budget by $2003000. OP-810 Hamilton 143 DEAPR Direct Manager to make operational $0 ($200,000) ($200,000) reductions. OP-1311 Hamilton 2pg Non- Reduce Social Justice Reserve $0 ($%000) ($50,000) Departmental OP-B13 Hamilton P09 Non- Eliminate Subsidies for Municipal Parks $0 ($1250108) ($125,108) Departmental and Recs OP-816 Portie-Ascotl & Carter & 209 Non- Restore Step Program $0 $400,000 $400,000 McKee Departmental (Tied to CIP - B03) Reduce County Pay- 013.819 Bedford 251 Transfers Go for Seymour Showers drain and hot $0 ($35,000) ($35,000) water heater Portie-Asoott & Carter & County Design Workforce Housing Pilot for OP-B20 McKee 129 Managers County Employees $0 $200000 $200000 Office OP-S99 Staff 40 Revenue By Increase Fund balance to Balance $12,762 $0 ($ 121762) Category r Page 3 of 5 RES -2026 -039 ($339,500) ($4 ,684 ,500) CIP-SOt Staff 55 AMS Remove 2700 Homestead Road Project $0 $0 CIP-SO2 Staff 66 AMS Add $ 18,057 in Carrboro Revenue for Staff Parking Gate at Drakeford, reducing debt financing CIP-802 Bedford 75 AMS Utilize Med Max Balance to cover share of Whitted ($2521493) ($ 117911635) HVAC proiect Use $35 ,000 in Master Aging Plan Balance for $0 $0 CIP-B03 Bedford 89 AMS Shower improvements at Seymour Center, Reducing Pay-Go (Operating Impact on OP-819 Reduce Scope of Turin Creek historic farmhouse ($193,000) ($ 193,000) renovation to $132,000 for fence and structural repairs only. CIP-604 Bedford 119 DEAPR Develop new concept plan options for County owned property such as Twin Creek Parks, OCS Elementary Land-Swap, and Revere Road . CIP-807 McKee 134 Education Delay Estes Hills Elementary School 2 years, ($612831000) $0 Inflation to be absorbed within Major Projects budget CIP-1309 McKee 74 AMS Delay Historic Court House 1 years, adding inflation $371 ,243 $ 144 ,785 Delay 1 year Emergency Services Headquarters, ($3,900,000) $ 1 ,639,098 CIP-B11 McKee 104 & 56 & 58 AMS & ES along with Cedar Grove Storage and Convert existing facility to Admin building Delay Frank Porter Graham and Orange Middle $0 $0 CIP-612 McKee 135 & 148 Education School Projects 1 year. Inflation to be absorbed in Major Projects budget. CIP-813 McKee 111 DEAPR Delay Central Recreation 3 years , adding inflation $0 $ 11957,563 CIP-814 McKee 105 1 E5 jDeIaX 2nd ES substations 1 Xear, adding inflation , 1 $0 1 $ 131 ,700 4 ) Changes in County Staff Positions Increasesin FTE I Department Position Name Fund Start Date FTE E Transportation List Driver General Fund 7/1/ 2026 1 .000 Health Deputy Director General Fund 7/1/ 2026 1 .000 E County Manager - Opioid Behavioral Health Director Opioid Fund 4/1/ 2027 1 .000 Totals 3 . 00 I I Reduction in Force — In order to reduce the tax burden , the Manager recommends that the Orange County Board of Commissioners declare that a reduction in force is necessary that will result in the deletion of one position . 5 ) General Fund Appropriations for Local: School Districts The following FY2026 -27 General Fund Appropriations for Chapel HilkCarrboro City Schools and Orange County Schools are approved : 3 a ) Current Expense appropriation for local school districts totals $ 116 , 314 , 680 and equates to a per pupil allocation of $ 6 , 290 , i 1 ) The Current Expense appropriation to the Chapel Hill -Carrboro City Schools is $671 560 , 890 Page 4 of 5 i RES -2026 - 039 2 ) The Current Expense appropriation to the Orange County Schools is $48 , 753 , 790 . 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 $ 139 , 418 , 653 b ) County Capital Projects Funding of $ 24 , 409 , 968 c) School Capital Projects Funding of $ 112 , 524 , 049 d ) Solid Waste Project Funding of $ 544 , 636 and Sportsplex Project Funding of $ 1 , 940 , 000 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 . Page 5 of 5 E i t 1 E€(� SE !I E i E( E i S Y I E E ((� (E [� {E I