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Agenda 06-16-2026; 8-a - Minutes for May 12, 2026, May 14, 2026, May 19, 2026, May 21, 2026, and May 26, 2026
1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 16, 2026 Action Agenda Item No. 8-a SUBJECT: Minutes for May 12, 2026, May 14, 2026, May 19, 2026, May 21, 2026, and May 26, 2026 DEPARTMENT: Board of County Commissioners ATTACHMENT(S): INFORMATION CONTACT: Draft minutes (under separate cover) Laura Jensen, Clerk to the Board, 919- 245-2130 PURPOSE: To correct and/or approve the draft minutes as submitted by the Clerk to the Board as listed below. BACKGROUND: In accordance with 153A-42 of the General Statutes, the Governing Board has the legal duty to approve all minutes that are entered into the official journal of the Board's proceedings. Attachment 1: May 12, 2026 Budget Public Hearing and Work Session Attachment 2: May 14, 2026 Budget Work Session Attachment 3: May 19, 2026 Business Meeting Attachment 4: May 21, 2026 Budget Work Session Attachment 5: May 26, 2026 Budget Work Session FINANCIAL IMPACT: There is no financial impact associated with this item. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GUIDING PRINCIPLE — COMMUNICATION AND AWARENESS We provide information and opportunities for engagement in a transparent manner so that all in our community have knowledge, understanding, and a voice. RECOMMENDATION(S): The Manager recommends that the Board approve the minutes as presented or as amended. Attachment 1 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUDGET AND CAPITAL INVESTMENT PLAN PUBLIC HEARING 5 AND WORK SESSION 6 May 12, 2026 7 7:00 p.m. 8 9 The Orange County Board of Commissioners met for a Budget and Capital Investment Plan Public 10 Hearing and Work Session on Tuesday, May 12, 2026, at 7:00 p.m. at the Whitted Human Services 11 Center in Hillsborough, NC. 12 13 COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and 14 Commissioners Jamezetta Bedford, Marilyn Carter, Sally Greene, Earl McKee, and Phyllis Portie-Ascott 15 COUNTY COMMISSIONERS ABSENT: None 16 COUNTY ATTORNEYS PRESENT: John Roberts 17 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, 18 and Clerk to the Board Laura Jensen (All other staff members will be identified appropriately below) 19 20 Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners were present. 21 A motion was made by Commissioner Carter, seconded by Commissioner Greene, to add a 22 discussion on Additional Budget Options for FY2026-27 during the work session portion of the meeting. 23 24 VOTE: UNANIMOUS 25 26 1. Opening Remarks 27 Chair Hamilton welcomed and thanked everyone in attendance, as well as those who had 28 submitted comments by email or phone call. She said she was proud to be part of a county that is open 29 to community feedback and criticism, even when it is hard to hear. She also acknowledged that 30 Community Relations Director, Wil Glenn, had assisted in responding to constituent emails, and she 31 apologized in advance for any messages that may have been missed. 32 Chair Hamilton read the public charge and explained the process for making public comments. 33 34 2. Presentation of the County Manager's Recommended FY 2026-27 Budget 35 36 County Manager Travis Myren made the following presentation: 37 38 Slide#1 OFZANGE COUNTY NORTH CAROLINA Manager's Recommended FY2026-27 Operating Budget May 12&28,2026 Budget Public Hearings 39 2 1 Slide#2 FY2026-27 Operating Budget Introduction FY2026-27 Operating Budget Priorities t. Minimize Tax Rate Increase 4. Maximize Efficiencies in County Operations and Underscore Cost Recovery while Preserving Core Services 2. Prioritize Public Safety and Social Safety Net Direct Services 5. Modestly Invest in the Employee Compensation 3. Support School Current Expense and Pay-Go Package Funding Amid Declining Enrollment 6. Align any New Budget Investments with Strategic Plan Goals ORANGE COUNTY 2 NORTH CAROLINA 2 3 4 Slide#3 FY 2026-27 Operating Budget Introduction • Total Recommended Budget at a Glance -Total General Fund Revenue-$325,130,721 $275,868,111 Generated by Taxes—Property Tax,Sales Tax and Licenses—85% $49,262,610 Generated by County Operations—Grants,Fees,Donations,Fund Balance,Interest,etc.—15% -Total Operating Budget(General Fund)-$325,130,721 Total K-12 Education(Operating+Debt Service)$148,379,362 or 54%of County Tax Revenue Net County(Operating+Debt Service—Dept Revenue)$127,488,749 or 46%of County Tax Revenue ORANGE COUNTY 3 NORTH CAROLINA 5 6 Travis Myren said the total recommended budget is $325.1 million, with approximately $275.8 7 million derived from tax revenue and the remainder from fees and intergovernmental revenue. He said 8 that when divided between education and county operations — after subtracting department- 9 generated revenue —the split is approximately 54%to K-12 education and 46%to county operations. 10 11 3 1 Slide#4 FY 2026-27 Operating Budget Introduction • General Fund Revenue - Property Tax Natural Growth—2.27%Increase=$4.7 million Sales Tax—2.7%over FY2025-26 Budget or$1.2 million Reduction in Hold Harmless payment—($300,000) Department Charges for Services Emergency Medical Services @ 200%of CMS rate-$600,000 Medicaid Maximization Revenue-$1.1 million Planning and Inspections-$267,100 Sheriff's Office revenue reductions—($600,000) Food and Nutrition Services Administrative Costs—($680,000) ORANGE COUNTY 4 N(7RTH CAROLINA 2 3 Travis Myren said property tax growth is estimated at 2.27% over the current year, with real 4 property growth at approximately 1.4% and motor vehicle values increasing by approximately 10%. He 5 said sales tax has moderated since the pandemic to an estimated 2.7% increase, with a reduction also 6 anticipated in the hold-harmless payment. 7 8 Slide#5 FY 2026-27 Operating Budget Introduction • Debt Service and Pay-Go — Debt Service increase of$7.8 million • Exceeds all General Fund Revenue Growth($5.9 million) — Pay-Go for Schools increase of$3.0 million — Pay-Go Reduction for County Projects($350,000) • Prior year balances used for IT Infrastructure and Parks Maintenance Fund ORANGE COUNTY 5 NOR'I-H CAROLINA 9 10 Travis Myren said debt service is projected to increase by $7.8 million next year as a result of 11 prior borrowings, which exceeds the total general fund revenue growth of$5.9 million. He said Pay-as- 12 you-go (Pay-Go) funding is recommended for school bond soft costs, including architect and engineering 13 fees and project management, as well as for small capital repairs. 4 1 Slide#6 Provide Continuation Funding to Schools • General Fund Expenses - K-12 Education • Current expense increase 2.5%=$114,114,132 • Per Pupil funding will increase by$294 over FY2025-26 for a total of$6,171 per student - CHCCS District Tax adds$2,807 in per student funding=$8,978 for CHCCS per student • Due to declining student enrollment,2.5%increase equates to a 5%increase in per-pupil funding Percent Increase to tal Funding Per-Pupil Funding Current Expensi Increase Base Amount $111,328,011 2.4% 1% $112,441,291 3.5% 1.5% $112,997,931 4.0% 2% $113,554,571 4.5% 2.5% $114,114,132 5.0% 3% $114,667,B51 5.5% • Nurse and Student Resource Officer Contracts increase 3% =$123,744 to$4,248,550 • Pay-Go increase as recommended in Capital Investment Plan -$3.0 million -- 6 ORAN GE COUNTY NC)2 3 Travis Myren said he is recommending a 2.5% increase in current expense funding for a total of 4 $114 million - approximately $2.8 million more than the current year - bringing per pupil funding to 5 $6,171, a $294 increase per student. He noted that due to declining enrollment, the 2.5% current 6 expense increase equates to a 5% increase in per-pupil funding. 7 8 Slide#7 Provide Continuation Funding for Schools Total Budgeted Students by District 13,000 12,115 12,242 12,339 12,239 12,16C 12,387 12,274 12,236 12„351 12,000 11,705-11,225 11,820 1�4 11,993 11,382 1,442 11,253 81,141 11,018 11,000 TO 741 10,000 9,000 -$-CHCCS 8,134 8,156 fOCS 7,863 7,801 7,966 8,072 8,011 8,110 8,023 8,003 7,936 7,925 8,000 7e5--766 - - 7751_ 7,148 7,277 71172 7,357 7,437 7,000 6,000 5,000 7 SS 2008-09 200?10 2010-11 2011-12 2012-13 2013-14 201415 2015-16 2016-17 2017-18 2038-14 2019-20 2-21 2021-22 2022-23 2023-24 202425 2025-26 202421 CHCCS Budgeted Student Decrease of 277 Students Budgeted student percentage decreases from 58.96%to 58.08% OCS Budgeted Student Decrease of 174 Students ORANGE COUNTY 9 7 Budgeted student percentage increases from 41.84%to 41.92% NORTH CARC>LrNA 10 5 1 Slide#8 Provide Continuation Funding to Schools County Per Pupil Funding Amount History $294 bite from $7,000 Fr�ozssc 56.4n OW 55.877 55;655-- $5,346 55,000 U $4,466 S4,3s2 54.367 54,367 $4,000 — — $3,571 $3.698 52.957 53p69 $3,200 $3.096 63.302 $3,167 53.769 $3,000 52,000 - $1,000 Ice f� ,,, rytie ,syn a.,e yti`° �4 ,rya as qro° ohy *tiro ryrya ro° tie �tia �tih e 0~ y ti°' E'y �y yoA �y �ti y goy tioti �ti �r �ti3 �ti �ti tioti ORANGE COUNTY 8 NORTH CAROLINA 2 3 4 Slide#9 Provide Continuation Increase to Schools — Chapel Hill-Carrboro City Schools • Assumed teacher salary increase from the State—3%in FY 2026,4%in FY 2027 • Continuation request=7.5%increase in per pupil funding Chanel Hill-Carrboro City Schools FY2026-27 Manager Continuation Request Difference Recommended $66,282,711 $67,838,023 ($1,555,312) Chapel •. .. Expansion FY2026-27 Manager Recommended Expansion Request Difference $66,282,711 $71,538,023 ($5,255,312) ORANGE COUNTY 9 NORTH CAROLINA 5 6 Travis Myren said the recommended increase for Chapel Hill-Carrboro City Schools is 7 approximately $1.5 million over the current year, which falls short of that district's continuation request 8 by approximately$1.5 million. 9 10 6 1 Slide#10 Provide Continuation Increase to Schools — Orange County Schools • Assumed teacher salary increase from the State—3%in FY 2026,4%in FY 2027 • Continuation request=6.6%increase in per pupil funding Orange County Schools FY2026-27 Manager Recommended Continuation Request Difference $47,831,421 $48,544,086 ($712,665) Orange County .• Expansion Request FY2026-27 Manager Recommended Expansion Request Difference $47,831,421 $50,484,041 ($2,652,620) ORANGE COUNTY 10 NORTH CAROLINA 2 3 Travis Myren said his recommendation for Orange County Schools falls short of their 4 continuation request by approximately$712,000. 5 6 Slide#11 FY 2026-27 operating Budget Introduction • General Fund Expenses — County Department Summary • 20 of 27 General Fund Department Budgets - Recommended below base budget - Operating cost and personnel reductions - New revenue • Total decrease in 20 General Fund Departments -$3.8 million • Net decrease in all General Fund! Departments= $1.3 million ORANGE COUNTY 7 8 Travis Myren said 20 of the 27 county departments are recommended at levels below current 9 year, representing approximately $3.8 million in reductions, with seven departments receiving net 10 increases due to unavoidable costs. 7 1 Slide#12 FY 2026-27 Operating Budget Introduction • General Fund Expenses County Department Changes to Base Budget $1,000,000 $500,000 0� [� 05 \�4� 1P O� �� <P 0� & J�\�G G05,00 005 Ooh X41 GOS \05 G05 0�5 00`' AGO 3�G JAG X10 JAG G� ,��0 `}� e 00 P� JO 0 v X 5 JI 1 en Q- O6' X 1C1 F� �� K O C0 �CP1QPF 050 �O y0 �� OF GtiS�Op4� R"-„F�G��,O�OO�P��,�F,Ge P0A�O��e�G 1<eo- 0< S� Oa $(500,000) P�yO OOP OroJ�\C�GO��OQ4Qg GPS) OQP �Q-P01S 1��OJS �J P�\O �. \a �0 -4-QOQ- cj JGO G 4\aP eta ORANGE COUNTY 12 NC3RTH CAR(DLINA 2 3 4 Slide#13 FY 2026-27 Operating Budget Introduction • General Fund Expenses — County Personnel Costs 2%Wage Increase-$1.86 million 9%Health Insurance Increase-$1.3 million 5%Local Government Retirement System Increase-$570,000 • Tax Administration Reserve for Tax Assessment Recommendations-$250,000 Living wage-$500,000 - Increases from$18.18 to$20.02 per hour - Impacts Departments with significant use of Temporary Employees:Solid Waste,Library,DEAPR Sheriff's Office Overtime-$370,000 based on multiyear trend ORANGE COU -FY 5 6 Travis Myren said the recommended employee compensation package includes a 2% wage 7 increase at a cost of approximately $1.9 million, a 9% increase in health insurance at $1.3 million, and a 8 5% increase in the local retirement system at approximately $570,000. He said the living wage is 9 recommended to increase to $20.02 per hour at a cost of approximately$500,000. He said $250,000 has 10 been reserved in the tax administration budget to accommodate any staffing recommendations from 8 1 the tax assessment review, and that $370,000 is being added to the Sheriff's Office budget to align 2 overtime appropriations with actual expenditures. 3 4 Slide#14 FY 2026-27 Operating Budget Introduction • General Fund Expenses — County Personnel Cost Reductions • Temporary Suspension of Salary Step Program—($400,000) • Position Reduction Summary — 10.25 FTE in General Fund 11 General Fund Savings-$1,140,000 — Library Temporary Staff Funding Reductions-$122,121 — 5 positions in Sheriff's Office will be unbudgeted and held vacant for FY2026-27-$440,600 savings — 3.675 FTE Reduction in Other Funds o Other Fund Savings-$250,000 — County Costs to Continue • Bonds, Insurance,and workers Compensation-$280,000 • Software as a Service-$368,000 • Fuel Costs-$595,400 • Longtime Homeowners Assistance-$42,500 • Telephone Efficiencies—($400,000) ORANGE COUNTY 14 NORTH CAROLINA 5 6 7 Slide#1S FY 2026-27 Operating Budget Introduction • General Fund Expenses — Maintain Outside Agency Funding • $693,953 allocated to agencies through scorecard • $107,500 contract with Habitat for Humanity transferred to Housing Department — Reduce Payments to Chapel Hill and Mebane Libraries • Two-year phase out of payment to Town of Chapel Hill-$310,662 in FY2026-27 • Elimination of payment to City of Mebane-$700 — Increase Social Justice Fund • $50,000 increase to$200,000 — Reduce Salary Savings due to Vacancy Eliminations • $163,969 reduction to$4.9 million ORANGE COUNTY 15 NORTH CAROLINA 8 9 1 Travis Myren said outside agency funding is recommended to remain flat at $693,000, with the 2 Habitat for Humanity contract transferred to the Housing Department. He said the budget recommends 3 reducing payments to the Chapel Hill and Mebane libraries and increasing the social justice fund. 4 5 Slide#16 FY 2026-27 operating Budget Introduction • Property Tax Rate -ResidualtNet General Fund Revenue Needed-$12,650,000 -Recommended Tax Rate Increase—3.75 cents per$100 of assessed Value Total Tax Rate-increases from 63.83 cents per$100 of value to 67.58 cents ,e ORANGNOR- E CAROLINA COUNTY 6 7 Travis Myren said when all budget expenses and revenues are reconciled, a residual gap of 8 approximately $12.65 million remains, equating to a 3.75-cent increase on the tax rate, which would 9 bring the current rate from 63.83 cents to 67.58 cents per$100 of assessed value 10 11 Slide#17 Manager's Recommended Tax Date • Manager's Budget Recommends Increase of 3.75 cents over FY 2025-26 r Impact on Home @$400,000=$150.00 r Impact on Home @$500,000=$187.50 County Tax Rate Hisory 120 99.89 1� 95.00 88,0b 84.39 8589 85.80 85.87 85.80 85,80 87.86 87.80 87,80 85.W 86.79 86.79 86.14 83.77 81.87 63.12 83.56 so 67.56 81.83 60 49 20 0 FY 2995 FY 2906 FY 2907 FY 2998 FY 2009 FY 7119 FY 2911 FY 2912 FY 2913 FY 2914 FY 2915 FY 2016 FY 2017 FY 2918 FY 2019 FV 2020 FY 2921 FY 2922 FY 2923 FY 2024 FY 2925 FY 2026 FY 2927 R- 12 10 1 Travis Myren said the recommended tax increase impact on a $400,000 home would be $150 2 per year and $187.50 on a $500,000 home. 3 4 Slide#18 FY 2026-27 Operating Budget Introduction - Visitors Bureau Fund • Visitors Bureau operating expense reduction—($324,692) • Arts Commission net increase—$44,641 - Solid Waste Fund • Solid Waste Program Fee increase from$138 to$142 per parcel-$280,000 • Department to review additional options for long term sustainability - Fire Districts • Damascus Fire 1.30 cents • Eno Fire 2.00 cents Little River Fire 1.00 cents • South Triangle Fire 1.30 cents ORANGE COUNTY 18 NORTI I CAROLINA 5 6 Travis Myren said outside the general fund, adjustments are recommended to the Visitors 7 Bureau fund reflecting a $324,000 decrease in operating expenses due to lost revenue from the Town of 8 Chapel Hill. He said the Solid Waste Fund program fee is recommended to increase to $142 per parcel 9 due to the near-exhaustion of the fund balance. He said four fire districts — Damascus, Eno, Little River, 10 and Southern Triangle — are requesting tax rate increases. 11 12 Slide#19 Budget Consideration Schedule FY2026-27 Budget Consideration Schedule May 12 Budget Public Hearing—Whitted Building;Hillsborough Work Session May 14 Education Budget Information Session—Hillsborough • Outside Agencies May 20 Budget Information Session—Virtual Work Session May 21 Fire Districts Budget Information Session—Chapel Hill Public Safety • Human Services Work Session May 26 Support Services General Government Community Services May 28 Budget Public Hearing—Southern Human Services;Chapel Hill June 4 Work Session • Resolution of Intent to Adopt June 16 Business Meeting Adoption of FY2026-27 Operating Budget and Capital Budget ORANGE COUNTY 19 NORTH CAROLINA 13 11 I Slide#20 Questions? ORANGE COUNTY 2 Neea�H«Itnl.orvn 3 4 3. Public Comments 5 6 A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler,to open the public 7 hearing on the budget and capital investment plan. 8 9 VOTE: UNANIMOUS 10 1 1 PUBLIC COMMENTS: 12 Vibeke Talley from the North Carolina Senior Tar Heel Legislature provided historical context on 13 social work staffing at the senior centers. She described her experience working in aging transitions at 14 the Department on Aging from 2000 to 2011, noting that during that period, social workers struggled to 15 effectively help low-income older adults complete applications for food stamps and Medicaid. She 16 credited Director Janice Tyler for arranging a shared social work arrangement with the Department of 17 Social Services (DSS) in 2010, whereby two social worker positions were moved to DSS and shared with 18 the Department on Aging to serve senior centers. She described the arrangement as streamlining the 19 application process and dramatically improving the number of vulnerable older adults receiving benefits. 20 She respectfully asked that there be no cuts to the shared DSS/DOA social workers at the senior centers. 21 Gayane Chambless spoke as an advocate for youth education and mental health. She urged the 22 Board to fund the Orange County Schools' request to increase teacher and staff supplements, noting 23 that OCS had previously ranked among the top five districts in the state for teacher pay but no longer 24 did. She acknowledged that while some residents were willing to pay higher taxes to support county 25 needs, others could not afford to do so. She said voters agreed to take on tax increases for the school 26 bond, but questioned whether the timing was right to proceed with projects such as relocating the 27 Sheriff's Office, constructing a new behavioral crisis center, and building an EMS headquarters, 28 suggesting those projects might wait until funding stabilizes. She requested the Board prioritize 29 sustaining and retaining school staff by fully funding the OCS budget request, consistent with the 30 county's stated strategic priorities. 31 Kelly Suttles urged the Board to fully fund Orange County Schools' continuation budget, noting 32 the County Manager's recommendation fell more than $712,000 short. She said that the continuation 33 budget should be the floor, not the ceiling. She warned that the gap was roughly equivalent to 12 34 average teacher salaries. She expressed support for fully funding the continuation budget and 35 advocating at the state level for ending the school voucher program, citing$533.6 million in public funds 36 directed to private schools statewide in the current year, including more than $2.9 million to private 37 schools in Orange County. 12 1 Spring Dawson-McLure, speaking as a parent of children in Orange County Schools, expressed 2 solidarity with teachers and staff. She noted that her eighth-grade daughter had overheard teachers 3 discussing the need for second jobs. She described being born in Orange County in a family of teachers 4 and farmers and framed the funding shortfall as a direct consequence of deliberate state-level 5 disinvestment in public education. She briefly noted that a federal budget proposal would result in a 6 $3.2 million loss in federal funding for the county's two school districts and stated: "Now is not the time 7 to pull back funds from our schools." She described a non-partisan statewide initiative called Public 8 School Strong, organized by Heal Together, uniting parents, caregivers, and community supporters to 9 advocate for fully funded public schools. She urged the Board to fully fund the continuation budget. 10 Rachel Heller also spoke in support of fully funding the OCS continuation budget. She said that 11 the county states that its goal is to direct 48.1% of general fund revenue to schools, yet the proposed 12 budget allocates only 46.65%. She emphasized that the current shortfall of $712,000 would directly 13 harm retention of teachers, bus drivers, and classified staff in a competitive regional market. She said 14 the two school districts also proposed expansion budgets, which, if funded, would bring them closer to 15 what the students need and deserve. She said the school districts and county are in this position and 16 seemingly always in need of more money because of the North Carolina General Assembly, which for 15 17 years has refused to invest in kids' futures and intentionally shortchanged public education to the point 18 where North Carolina ranks virtually last in the country in actual per pupil funding and funding effort. 19 She said the General Assembly has sent nearly $600 million of state tax money to private schools just 20 this year, mainly benefiting wealthy families, and $3 million in private school vouchers have gone to 21 private schools in Orange County alone this year. She called on the Board to advocate with the state 22 legislature to end the voucher program and at least fully fund the continuation budget requests. 23 Lynn Nilssen addressed why the proposed 3.75-cent property tax increase is necessary and 24 defensible. She argued that for higher-income households, the increase is manageable relative to what 25 would be lost if essential services were underfunded. She acknowledged the county's provision of 26 property tax relief for low-income homeowners. She attributed increasing pressure on local budgets to 27 state-level decisions, particularly the phase-out of the personal and corporate income tax, which she 28 described as resulting in an $18 billion annual loss in state revenue, disproportionately benefiting 29 wealthy individuals and large corporations. She called on the Board to use its platform to speak publicly 30 about how regressive state tax policy is harming local governments, stating: "Silence only normalizes 31 these policies and shifts more responsibility onto local taxpayers." 32 Judy McCord spoke in support of the Department on Aging and the Seymour Center. She noted 33 that she contributes more than 100 volunteer hours per month to the Seymour Center and relies on its 34 programs for community connection following pandemic isolation. She identified specific concerns with 35 the proposed budget, including a proposed 25% increase in class fees, the elimination of the permanent 36 evening facility manager position (a three-quarter-time position necessary for evening programming), 37 and the elimination of the shared social worker position. She expressed concern that reduced staffing 38 would undermine the work of volunteers and ultimately result in diminished programming. She asked 39 the Board to maintain at least current staffing levels for the Department on Aging. 40 Elizabeth DuBose said she stands in solidarity with everyone who has spoken so far. She said she 41 has been a county resident since 1965. She said many of the issues the county is facing today did not 42 originate in Orange County. She described growing up with the library and emphasized that it serves 43 every constituency referenced this evening, including those concerned about education, seniors, and 44 the underprivileged. She described a career in public health at UNC and characterized herself as 45 privileged yet underpaid. She questioned why the library budget would be reduced to the point of near 46 elimination of county funding over two years, expressed concern that closing libraries would serve the 47 agenda of those who oppose public knowledge, and called for creative solutions such as pooling library 48 staff, supporters, and advocates. She did not advocate for eliminating funding to the Orange County 13 1 Library system, but stated she could not support eliminating all county funds to the Chapel Hill Public 2 Library. 3 Chris Maue said he has been an educator in Orange County for 10 years. He said the Board of 4 Education requested additional funding to increase the local teacher supplement for many years. He 5 questioned how teachers are supposed to be able to continue with monthly bills increasing without any 6 pay increase. He noted that the state salary schedule groups years 15-25 of experience at the same pay 7 level, meaning veteran teachers see no pay increase for an entire decade. He reported zero increases in 8 the local supplement for each of the past three years. He described working multiple side jobs to 9 support his family and warned of a growing burnout rate. He pointed to OCS being one of only three 10 districts statewide where all schools met or exceeded growth, attributing it to hard-working staff, and 11 requested full funding of both the continuation budget and a competitive supplement increase. 12 Amanda Aguayo said she has been a teacher in OCS for 5 years. She asked the Board to match 13 and surpass the school districts' funding requests. She spoke about working three jobs to afford food 14 and housing, despite nearly two decades of professional experience. She warned that cutting education 15 funding results in overcrowded classrooms, exhausted teachers, and diminished student opportunities. 16 She said that passion cannot continue to compensate for chronic underinvestment. She called on the 17 Board to prioritize students and educators and fully fund the schools'funding requests. 18 Meghan Jones said she is a mom of two and a resident of Chapel Hill. She expressed her family's 19 deep connection to the Chapel Hill Public Library, citing weekly visits, summer and winter reading 20 programs, book recommendations from librarians, and the library's role as a community gathering 21 space. She noted that while her family also visits the Carrboro branch library, the Chapel Hill Public 22 Library plays a uniquely central role in their daily lives. She warned that cutting library funding during a 23 time of rising fascism and anti-intellectualism sends a dangerous message, and called on the Board to 24 fund a library befitting the home of the nation's oldest public university. 25 Beverly Walton said she is speaking on behalf of Justice United. She said the county is cutting 26 funding for affordable housing, while also increasing property taxes, calling the housing situation in 27 Orange County a crisis. She said if luxury properties are taxed higher and pay their fair share, there 28 would be enough money to fund all the needs requested tonight. 29 Louis Capitanio expressed frustration with government overspending. He argued that 30 investments in education and libraries are essential while suggesting that other areas, specifically 31 Orange County Solid Waste, contain waste and unnecessary spending. He raised concerns that elderly, 32 disabled, and veteran residents would be displaced by rising taxes. He noted that Emergency Services, 33 the Sheriff's Department, and Fire Departments cannot sustain budget cuts. 34 Juno Wouk a fourth-grade student at Glenwood Elementary in the dual-language Mandarin 35 program, spoke about the importance of her school's program and the library. She noted that Glenwood 36 was the only elementary school in the district where enrollment increased this year, attributing it to the 37 appeal of the dual-language program. She asked the Board to fund the school district so it could focus 38 on redistricting rather than closures. She also expressed concern about proposed library funding cuts, 39 stating that she had visited the Chapel Hill Public Library since before she could walk and credited it with 40 her love of reading. 41 Nina Morley Daye, retired science teacher with over 35 years of experience at Orange High 42 School, spoke in solidarity with current educators. She emphasized that OCS having 100% of schools 43 meeting or exceeding growth is not an easy thing to do. She made two requests: first, that the Board 44 pass, at a minimum, a continuation budget for both school systems; and second, that the Board use its 45 platform to publicly demand that the General Assembly adequately fund schools and pass a budget. 46 Christina Clark, president of the Orange County Association of Educators and a teacher at Cedar 47 Ridge High School, described the county as one of the best places to live, yet increasingly unaffordable 48 for school staff. She noted that teaching positions in Chatham, Durham, and Wake Counties offer higher 14 1 pay with lower costs of living. She described OCS achieving 100% of schools meeting or exceeding 2 growth as made possible by dedicated staff who are now looking elsewhere and called on the Board to 3 fund raises and supplements to retain them. She expressed concern that the county's investment 4 priorities, noting new parks and greenways in wealthy neighborhoods while sidewalks remain absent 5 near Grady Brown and Cedar Ridge, do not reflect the needs of school employees. 6 Savannah Patterson, teacher at Cedar Ridge High School, former District Teacher of the Year, 7 and Secretary of the Orange County Association of Educators, called on the Board to raise education 8 funding. She described working before and after contract hours, including hosting additional tutoring 9 sessions ahead of state exams, without compensation for student transportation or equitable provision 10 of snacks and drinks across schools. She noted that being a classroom teacher is already a monumental 11 task and that added duties without compensation are pushing talented teachers out. She said that if she 12 felt as though she was a professional treated with respect, that the work she does is dignified and 13 appropriate for her expertise, she would not be making the decision to leave the profession. 14 Kaylee Powers said that both she and her husband are teachers at Cedar Ridge High School and 15 are involved in many extracurricular activities for students. She said she and her husband found that 16 purchasing a home in Orange County was financially impossible on their combined educator salaries, 17 and ultimately purchased in Alamance County. She noted that the commute to Guilford County, which 18 offers higher supplements, is the same as from their current home to Cedar Ridge. She described being 19 at a crossroads between staying in a district they love and pursuing a district that can support their goal 20 of having their own children. 21 Layla Allen said she is a teacher at Cedar Ridge High School and member of the Orange County 22 Association of Educators. She described working as a zip line instructor on weekends and a whitewater 23 raft guide in the summer to afford living in the community she teaches in. She described foregoing staff 24 housing to live out of her car for two months in the summer to retain more of her earnings. She 25 described practicing extreme frugality, including thrifting, repairing her own clothes, buying generic 26 brands, yet still wondering why she shouldn't simply move to Wake or Durham. 27 Alex Kaji, an educator at Hillsborough Elementary School, shared that he had taken a second job 28 in 2019 to supplement his teaching income, eventually burned out, left the profession, and yet felt 29 called back. He described returning as a long-term substitute and then a full-time teacher again. Using 30 an ecosystem metaphor that he teaches to fourth and fifth graders, he warned: "If these resources are 31 not given back into the ecosystem, things living in that ecosystem have two choices. They move away or 32 they die." 33 Sheri Caligan said she is an Orange County resident and Orange County educator. She read 34 testimonies from colleagues who asked to remain anonymous. One 11-year teacher described working 35 multiple jobs to support a family of five, with base pay barely covering main expenses. A second 36 described working 10 additional hours per week at a second job, leaving only enough time to eat and 37 sleep after returning home. A third with 17 years of experience, National Board Certification, and school 38 Teacher of the Year recognition, stated that a management position in a second job would offer a better 39 quality of life than remaining in the classroom. She questioned how the Board could propose a property 40 tax increase while simultaneously cutting school funding and asked that the OCS budget request be fully 41 funded. 42 Adam Reyes, teacher at Cedar Ridge High School, described becoming an educator in 2020 and 43 approaching the end of his sixth year while nearing completion of his first year of graduate school. He 44 stated he was beginning to consider other districts or career paths and acknowledged that earning his 45 degree would likely prompt him to look at more competitive counties. He noted that neither he nor his 46 wife (also an OCS employee) can afford housing in Orange County, and expressed concern that the 47 educators responsible for OCS's growth achievements would leave for other counties. He asked the 48 Board to consider how to ease or postpone that transition. 15 1 Libby McDaniel, an educator at Hillsborough Elementary School with 18 years of experience, 2 described choosing to move to Hillsborough from a teaching position in Vietnam and taking a $20,000 3 annual pay cut to do so. Despite having substantial savings from teaching abroad and two incomes, she 4 was unable to find affordable housing in the county for three years. She praised the broader OCS staff, 5 including bus drivers, custodians, office staff, and instructional assistants. 6 Robert DiDomenico said he is a local attorney and on the board for the Chapel Hill Public Library 7 Foundation. He echoed some of the other concerns residents have raised tonight. He said the Chapel Hill 8 Public Library is being cut, but it doesn't represent a big portion of the existing budget. He offered that 9 the recommended library contribution of approximately $631,000 represents 0.19% of the total $325.1 10 million county budget,yet appeared to be absorbing 16.6%of the identified cuts. He said this disparity is 11 unreasonable. 12 Krysten Heberly, a Chapel Hill resident who moved to the county two years ago when her 13 husband enrolled at UNC, described a period of severe health challenges that made leaving the house 14 extremely difficult. She credited the Chapel Hill Public Library with her recovery, describing how regular 15 visits, first to check out movies, then to write in sunlit areas, then to join clubs, gradually helped her 16 regain mobility and social connection. She noted that she made friends with other young people with 17 disabilities through the library. She acknowledged the need for some cuts but stated the proposed level 18 of reduction was disproportionate and added that other locations are difficult to access for those 19 without mobility. She asked the Board to fund both the library and teachers. 20 Wilson Haworth, son of two NC public school teachers, stated that under current Orange County 21 funding levels, his parents could not have afforded to raise him. He expressed love for the Chapel Hill 22 Public Library as one of the most joyous spaces in Chapel Hill. He expressed disappointment that when 23 budget cuts are needed, the first targets are teaching children and giving out free books. 24 Karen Curtin examined the library funding numbers in detail. She noted that the total library 25 services budget in the county's budget is approximately $3.7 million, of which the Chapel Hill Public 26 Library has historically received just under 17%, or approximately $621,000. She expressed concern that 27 the proposed budget would eliminate all county funding for that library over two years, despite 40% of 28 Orange County residents living in Chapel Hill and approximately 15,000 active library cardholders living 29 outside Chapel Hill's town limits who use the library. She warned that non-Chapel Hill residents would 30 be required to pay for cards if the county discontinued support. She challenged the premise that 31 opening the Southern Branch Library reduced usage of the Chapel Hill library, stating usage statistics 32 remain unchanged. She noted the Chapel Hill Public Library was named one of the top 15 libraries in the 33 country in 2024. She also challenged a figure in materials being distributed, stating the actual library 34 budget is$4.2 million, not$3.49 million as listed. 35 Susan Thananoparnen asked the Board not to decrease the funding to the Chapel Hill Public 36 Library. She cited research on the epidemic of loneliness and political polarization and argued the 37 Chapel Hill Public Library combats both. She noted that friends from rural Orange County and Carrboro 38 are frequent library visitors and stated that the Chapel Hill Library is one of the things she is most proud 39 of in our community. She asked the Board to retain full funding for the library, noting that residents 40 across Orange County pay county taxes and depend on it. 41 Lyndi Schilling said she has volunteered with the Friends of the Chapel Hill Public Library for a 42 year. She described the library's active weekend use from her experience volunteering on Saturdays. She 43 observed at least 50 college students studying on any given Saturday, along with high school and middle 44 school students using study rooms, and young families browsing and purchasing books. She warned that 45 reduced hours would eliminate the Friends' large book sales, which serve parents, children, teachers, 46 and seniors. She opposed any proposal to charge for study room use. 47 David Remington, a 25-year Orange County resident, opened with a personal anecdote about an 48 African American hairstylist who had to commute from Alamance County, telling him, "They don't want 16 1 us living here." He recalled a March presentation by an Urban Institute consultant to the Board who 2 advised that the best approach to affordable housing is to either provide vouchers or build housing for 3 low-income residents, and characterized the county's proposed housing budget as pretty much flat. He 4 expressed disappointment and noted the home repair backlog. He shared that he had been working 5 with low-income residents on property valuation appeals and offered to share data suggesting systemic 6 undervaluation of higher-end properties, while lower-income properties are disproportionately 7 burdened. He called on the Board to fix what he described as a welfare for the rich methodology for 8 property valuation. 9 Shannon Harvey asked the Board to continue funding the Chapel Hill Public Library. She 10 described her son's use of the Chapel Hill Public Library since he was six months old. She calculated that 11 her son had checked out 985 books over nine years and had never been let down by staff 12 recommendations. She praised the library's improvements over the years, including the elimination of 13 late fees and accessibility improvements such as removing heavy bathroom doors. She noted that 100% 14 of the library's free cardholders are Orange County residents and said that is exactly how she wants her 15 local tax dollars to be spent. 16 Erin Kent said she has two children in CHCCS. She expressed gratitude for the county's continued 17 support of local schools and shared how programs, including the dual-language Mandarin program at 18 Glenwood Elementary, which her daughter participates in, and middle school band, had shaped her 19 children's identities. She acknowledged the difficult budget position the Board faces but urged 20 continued and increased funding in line with school district requests, warning that world language and 21 music programs are among the first to be cut when budgets stagnate. She celebrated the diverse public- 22 school community and asked the Board to preserve and continue supporting both school districts at the 23 level requested. 24 Sutton Yarbrough said she is an Bch grade student at Phillips Middle School. She asked the Board 25 to fully fund public schools. She praised her visual arts teacher and chorus teacher as elective teachers 26 who give her something to look forward to every day. She said her art classes had sometimes been the 27 only reason she came to school. She also spoke on behalf of the Chapel Hill Public Library, noting that 28 many of her friends walk there after school daily to use the Teen Room, and her family makes extensive 29 use of the library's collection. 30 Kim Beer said he has been a resident of Chapel Hill for 35 years. He described his family's use of 31 the library over decades in shaping a love of books and learning in his children, and noted his recent 32 completion of the Orange County Citizens Academy. He praised the quality of county services generally 33 and commended the county for its youth-focused programming. He expressed clear opposition to cuts 34 at the Chapel Hill Public Library, noting that the opening of the Drakeford Library did not reduce usage 35 at the Chapel Hill location, but rather added new users to the system. He called on commissioners to 36 visit the library on a weekend afternoon, and said it is teeming with children running around, looking for 37 books, and curling up in corners. He concluded by connecting library support to support for democracy. 38 Deborah Christie, daughter of a longtime Orange County public school teacher, honored the 39 work of current educators and the Board. She acknowledged the difficulty of choosing between libraries, 40 schools, and affordable housing. She said she would like to look at the efficiency of the county as a 41 whole, and encouraged the Board to look into merging the school systems in the long-term. 42 Maggie Wallace said she is a 5 1 grader at Scroggs Elementary School. She spoke on the 43 importance of school nurses in relation to managing her Type 1 Diabetes. She described the 180 44 additional daily decisions required by her condition and the vital role played by Nurse Amanda and 45 Nurse Cecily in monitoring her blood sugar and administering insulin. She noted that school nurses serve 46 many students with conditions including asthma, food allergies, anxiety, and other special medical 47 needs, and asked the Board to fully fund schools and all school staff. 17 1 Maria Justice said she is on the board for the Friends of the Passmore Center. She asked the 2 Board to examine what she characterized as a contradiction in the proposed budget: projections show 3 that Orange County residents aged 60 and older will comprise 26% of the population by 2035, yet the 4 budget proposes $3.5 million in capital project funding while allowing existing community needs to go 5 unmet. She expressed opposition to Pay-Go proposals that fund new projects while current operational 6 needs remain unfunded, and asked that the Board not reduce staffing at the Department on Aging, 7 given the Passmore Center's growing population. She also raised a specific concern about the purchase 8 of a $32,000 commercial lawnmower despite the county contracting mowing services. 9 Lori Russell said she will take her seat on the Board of Education in July. She spoke on her own 10 behalf, acknowledging the Board's service and process. She stated she moved to Orange County for the 11 schools and accepted higher taxes as a trade-off for a community committed to excellent public 12 education. She said that Orange County Schools has not raised certified teacher supplements in a 13 decade, while Wake, Durham, Guilford, and Chapel Hill-Carrboro, all within commuting distance, now 14 pay significantly more. She noted that the county's proposed living wage increase to $20.02 per hour for 15 county employees acknowledges that county workers cannot afford to live in Orange County at current 16 wages and argued the same logic must apply to school employees who face the same cost-of-living 17 pressures. She also noted that declining enrollment figures obscure real growth in Exceptional Children 18 (EC) and multilingual learner populations, which come with legally mandated obligations that do not 19 scale with headcount. 20 Lloyd Adler-Johnson said he is an Orange County resident and a paramedic for Orange County. 21 He noted that Orange County is served by eight Advanced Life Support ambulances for approximately 22 150,000 residents, with only six running 24-hour coverage, and that the county regularly experiences 23 surges in 911 demand requiring mutual aid from Durham, Alamance, Chatham, and Person Counties. He 24 stated that this situation has persisted for years. He reported that previously planned wage increases for 25 EMS personnel have been suspended indefinitely, meaning EMTs earning at or near the living wage will 26 continue to fall behind as costs of living rise. He also noted that paramedics in training who signed 27 contracts with the county in exchange for training now face being contractually obligated to work at 28 lower wages than expected, which he said sets the stage for current workers to leave for better-paying 29 agencies and compounds recruitment challenges. 30 Marie Sykes said she has been an Orange County resident for 2 years, but moved a lot of a child. 31 She described her upbringing as a Navy family, always finding community in libraries. She also noted 32 that her cousin is a part-time staff member at the Chapel Hill Public Library who would face job loss 33 under the proposed budget cuts, and that LINC's library science program, which is one of the top in the 34 world, produces many of the library's staff members. She noted that even charging $65 to each of the 35 15,000 out-of-town cardholders would make up the deficit from proposed cuts but argued that those 36 most at risk are those who simply cannot afford library cards and would lose access entirely. 37 Rachel Bearman advocated for additional funding for the Department on Aging. She said the 38 Department on Aging serves as an exemplar for the rest of the state on what should be done to serve 39 older adults aging in community. She asked the Board to reconsider eliminating the shared social worker 40 position with DSS. 41 Brian Link said he is the President of the CHCCS Association of Educators, and is a social studies 42 teacher at East Chapel Hill High School. He said he is heartened by the solidarity shown in the room 43 tonight. He acknowledged that the Board has a hard job and that no one should be placed in the 44 position to choose between serving the aging population, providing affordable housing, and funding 45 public schools. He charged the community to stand with the Board of County Commissioners. He 46 thanked the County Manager for his effort in producing a recommended budget document that includes 47 an increase to the schools and thanked the Board for including Pay-Go funding that will continue to fund 18 1 the building of new schools. He said he and other community members will support the Board in raising 2 the tax rate in order to provide more school funding. 3 Elizabeth Young said she is present on behalf of Justice United. She asked the Board not to cut 4 any tax bill assistance funding in the county budget. 5 Riza Jenkins said she is a resident of Orange County and the Chair of the CHCCS Board of 6 Education. She said the state legislature may have reached a deal on a state budget today, which would 7 include raises and bonuses for teachers and school staff. However, considering the county's current 8 recommended budget, the state's anticipated 8% average increase doesn't align with the county's 2.5 9 increase in the continuation budget. She said that CHCCS has been doing the work to strategically align 10 school operations to the funding received considering enrollment trends through allocation, 11 adjustments, reductions in force, and a proposed school closure. She said that these efforts have come 12 at a high cost to the community, which impacts students and staff. She said that a budget gap limits the 13 district's ability to reinvest in staff with well-deserved and necessary raises and to innovate in the ever- 14 changing world and workforce demands that exist. She said she appreciates the difficult position the 15 county commissioners are in, but encouraged them to consider the impacts of additional cuts despite all 16 the achievements both school districts were just sharing a few weeks ago. She said that fully funding the 17 continuation request allows the schools to continue to operate at the current level, which increases 18 student achievement through growth in student performance, graduation rates, and programmatic 19 shifts to meet the needs and the various pathways for students after graduation. Additionally, she asked 20 the Board to help keep the promise to the community with respect to the school bond, and fund Pay-Go 21 as much as possible in the budget. She said that any adjustments to the bond and associated Pay-Go 22 have an impact beyond the schools and into the community. 23 24 A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler, to close the public 25 hearing on the budget and capital investment plan. 26 27 VOTE: UNANIMOUS 28 29 The budget public hearing portion of the meeting ended, and the Board recessed for a 5-minute 30 break. 31 32 The meeting was reconvened at 9:26 pm, and the Board transitioned to a work session. 33 34 4. Affordable Housing Advisory Board—Appointments Discussion 35 The Board discussed appointments to the Affordable Housing Advisory Board. 36 37 BACKGROUND: The Affordable Housing Advisory Board advises the Board of County Commissioners on 38 prioritizing affordable housing needs and assessing project proposals. The board also publicizes the 39 County's housing objectives, monitors the progress of local housing programs, explores new funding 40 opportunities, and works to increase the community's awareness of, understanding of, commitment to, 41 and involvement in producing attractive, affordable housing. 42 43 The Board of County Commissioners appoints all fifteen (15)At-Large members. 44 45 The AHAB has decided not to make recommendations for appointments. 46 47 The following individuals and positions are presented for Board consideration: 48 19 NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE Matthew At-Large Second Full Term 06/30/2029 Ferguson Mary Towell At-Large Second Full Term 06/30/2029 Alicia Reid At-Large Second Full Term 06/30/2029 BOCC Appointee At-Large First Full Term 09/30/2028 BOCC Appointee At-Large First Full Term 06/30/2028 BOCC Appointee At-Large Partial Term 06/30/2027 BOCC Appointee At-Large First Full Term 06/30/2029 BOCC Appointee At-Large Partial Term 06/30/2027 1 2 If the individuals listed above are appointed, no vacancies remain. 3 4 Tara May introduced the item. 5 The Board agreed by consensus on the reappointments of Matthew Ferguson, Mary Towell, and 6 Alicia Reid. 7 Following discussion of several candidates, the Board reached consensus on appointing the 8 following individuals to fill the vacant at-large positions: Allison Freeman, Giovanna Mollinedo, 9 Christopher Oneal,Josmell Perez, and Anthony Williams. 10 11 S. Alcoholic Beverage Control Board—Appointments Discussion 12 The Board discussed appointments to the Alcoholic Beverage Control Board (ABC Board) and considered 13 designating a member as Chair. 14 15 BACKGROUND:The ABC Board has the authority to buy, sell, transport, and possess alcoholic beverages 16 for the operation of its stores. This Board also adopts rules for the ABC system and has the authority to 17 hire and dismiss employees. 18 19 The Board of County Commissioners appoints all five (5) At-Large members. 20 21 The following individuals are recommended for Board consideration: 22 NAME SPECIAL TYPE OF EXPIRATION REPRESENTATIVE APPOINTMENT TERM DATE Melvin Green At-Large Second Full Term 06/30/2029 Josmell Perez At-Large First Full Term 06/30/2029 23 24 Pursuant to North Carolina General Statute 1813-700, the Board of Commissioners shall designate a 25 member of the local ABC Board to serve as Chair. Melvin Green was nominated to serve as Chair by the 26 ABC Board members. 27 One of the following ABC Board members may be designated as Chair: 28 NAME POSITION DESCRIPTION CURRENT TERM EXPIRATION DATE Jenn Sykes At-Large 06/30/2027 Judson Williamson At-Large 06/30/2027 20 (current Chair) Melvin Green At-Large 06/30/2026 Dr.Timothy Feeney At-Large 06/30/2028 1 2 Tara May introduced the item. 3 The Board agreed by consensus on the reappointment of Melvin Green. The Board also agreed 4 to appoint Melvin Green as chair. 5 Following discussion, the Board reached consensus to appoint Dr. Melinda Pankratz to the 6 upcoming vacant position. 7 8 6. Animal Services Advisory Board—Appointment Discussion 9 The Board discussed an appointment to the Animal Services Advisory Board. 10 11 BACKGROUND: The Animal Services Advisory Board advises the Board of County Commissioners on 12 matters of concern regarding animal issues and animal services in Orange County and works with the 13 Animal Services Director on various policy concerns and issues regarding county animal services. 14 15 The Board of County Commissioners appoints all thirteen (13) members with representation from 16 various related fields and municipalities. 17 18 The following individual is recommended for Board consideration: 19 NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE Cathy Munnier Animal Second Full Term 06/30/2029 Welfare/Advocacy 20 21 If the individual listed above is appointed,the following vacancy remains: 22 POSITION EXPIRATION DATE VACANCY INFORMATION DESIGNATION Owner/Manager 06/30/2027 Vacant since 03/12/2026 Retail Pet Services 23 24 Tara May introduced the item. She indicated that there are no applicants eligible for the 25 remaining vacancy. 26 The Board agreed by consensus on the recommended reappointment. 27 28 7. Arts Commission-Appointment Discussion 29 The Board discussed an appointment to the Arts Commission. 30 31 BACKGROUND: The Arts Commission recommends strategies to promote the artistic and cultural 32 growth of Orange County, advises the Board of County Commissioners on matters involving the arts, and 33 acts as the granting panel for funding programs available to individual artists and non-profit groups 34 sponsoring arts projects in Orange County. 35 21 1 The Board of County Commissioners appoints fourteen (14) At-Large members and one (1) UNC Student 2 who serves a one-year term. 3 4 The following individual is recommended for Board consideration: 5 NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE Mary O'Dor At-Large First Full Term 03/31/2029 6 7 If the individual listed above is appointed,the following vacancy remains: 8 POSITION EXPIRATION DATE VACANCY INFORMATION DESIGNATION At-Large 09/30/2028 Vacant since 04/21/2026 9 10 Tara May introduced the item. She indicated that the remaining vacancy occurred recently, and 11 that recruitment is underway for a candidate with a performing arts background to meet state grant 12 requirements. 13 The Board agreed by consensus to appoint Mary O'Dor. 14 15 8. Jury Commission-Appointment Discussion 16 The Board discussed an appointment to the Jury Commission. 17 18 BACKGROUND: The Jury Commission reviews the list of potential jurors and prepares the jury list. One 19 (1) member is appointed by the Board of County Commissioners, one (1) member is appointed by the 20 Senior Resident Superior Court Judge, and one (1) member is appointed by the Clerk of Superior Court. 21 22 Since this is not a County board, it does not submit an Annual Work Plan. 23 24 The following individual is presented for Board consideration: NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE Sylvia Smith BOCC Appointee First Full Term 06/30/2029 (reappointment) 25 26 If the individual listed above is appointed, no vacancies remain. 27 28 Tara May introduced the item. She shared that Clerk of Superior Court Mark Kleinschmidt was 29 supportive of this reappointment. 30 The Board agreed by consensus to reappoint Sylvia Smith. 31 32 9. Orange County Juvenile Prevention Council -Appointment Discussion 33 The Board discussed appointments to the Orange County Juvenile Crime Prevention Council (JCPC). 34 35 BACKGROUND: The N.C. Department of Public Safety partners with the Juvenile Crime Prevention 36 Council (JCPC) to galvanize community leaders, locally and statewide, to reduce and prevent juvenile 37 crime.JCPC members are appointed by the Board of County Commissioners (BOCC). Members represent 22 1 nineteen (19) different fields/organizations, and the BOCC may also appoint up to seven (7) at-large 2 members. 3 4 The management of this Board's membership and appointment terms has recently transitioned to the 5 Clerk's Office, so staff is still in the process of gathering age range and township information for each 6 member. Before now, the BOCC approved the JCPC membership as part of the approval of the JCPC 7 Annual Plan each year. 8 9 Historically, the JCPC has not submitted an Annual Report and Work Plan. 10 11 To formalize the member roster and set term expiration dates for each position, the BOCC is asked to 12 approve the following: 13 NAME POSITION DESCRIPTION TERM EXPIRATION DATE Captain Paul Bell Chief of Police or Designee 06/30/2027 Christy Watson Local Sheriff or Designee 06/30/2027 Amanda Farris Chief Court Counselor or Designee 06/30/2027 Rachel Donovan Director of LME/MCO or Designee 06/30/2027 Bernard Miles DSS Director or Designee 06/30/2027 Sharron Hinton County Manager or Designee 06/30/2027 Timeka Harper-Purcell Substance Abuse Professional 06/30/2028 Kysha Thompson Member of Faith Community 06/30/2028 Marilyn Carter County Commissioner 06/30/2027 Sanai Bryant A Person Under the Age of 21 06/30/2028 Lateef Mitchell A Person Under the Age of 21/member 06/30/2028 rep. families Crista Collazo Juvenile Defense Attorney 06/30/2027 Joal H. Broun Chief District Court Judge or Designee 06/30/2027 Dana Crews Local Health Director or Designee 06/30/2027 Garrett Lowery Parks and Recreation Representative 06/30/2028 Hugh Miles County Commissioner Appointee 06/30/2027 Tami Pfeifer County Commissioner Appointee 06/30/2027 Caitlin Fenhagen County Commissioner Appointee 06/30/2027 14 15 The following individual is presented for Board consideration: 16 NAME POSITION DESCRIPTION TYPE OF TERM APPOINTMENT TERM EXPIRATION DATE Gayane County Commissioner Partial Term 06/30/2027 Chambless Appointee 17 18 If the individuals listed above are appointed,the following vacancies remain: 19 20 POSITION DESIGNATION EXPIRATION 23 DATE School Superintendent or Designee 06/30/2027 District Attorney or Designee 06/30/2027 Member of the Business Community 06/30/2028 United Way Rep./Other Non-Profit 06/30/2028 County Commissioner Appointee 06/30/2027 County Commissioner Appointee 06/30/2027 County Commissioner Appointee 06/30/2027 1 2 Tara May introduced the item. She indicated that Gayane Chambless has served on the JCPC for 3 many years in the non-profit position, but, given her recent retirement, has applied to be considered for 4 one of the at-large seats. She also noted that there was a mistake in the packet, and the BOCC 5 Representative should be Commissioner Bedford. 6 The Board agreed by consensus to set the recommended term expiration dates. The Board also 7 agreed to appoint Gayane Chambless. 8 The Board also expressed interest in ensuring that both school districts have representation on 9 the JCPC, and Tara May committed to working toward that goal as additional vacancies are filled. 10 11 10. Orange County Housing Authority Board-Appointments Discussion 12 The Board discussed appointments to the Orange County Housing Authority Board. 13 14 BACKGROUND: The goal of the Orange County Housing Authority Board is to provide decent, safe, and 15 sanitary housing for the low-and moderate-income families in the County. 16 17 The Board of County Commissioners appoints all seven (7) members. 18 19 The Orange County Housing Authority Board does not make recommendations for appointments. 20 21 The following positions are presented for Board consideration: 22 NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE BOCC At-Large Partial Term 06/30/2029 Appointment BOCC Resident Member Partial Term 06/30/2029 Appointment 23 24 If the positions listed above are filled, no vacancies remain. 25 26 Tara May introduced the item. She indicated that there is one applicant eligible for the Resident 27 Member position, Heather Nash. 28 Commissioner Bedford expressed concern about Heather Nash's stated intentions regarding 29 serving on the board and suggested continuing to search for other candidates. The Board agreed to 30 continue recruitment for the Resident Member position. 31 The Board agreed by consensus to appoint Camila Hargett to the at-large position. 32 33 11. Additional Budget Options for FY2026-27 24 1 This item was added at the beginning of the meeting. 2 3 Travis Myren made the following presentation: 4 5 Slide#1 ORANGE COUNTY NORTH CAROLINA FY2026-27 Operating Budget Options 1 st Pass May 12, 2026 Budget Public Hearings 6 7 Slide#2 FY 2026-27 Operating Budget Options • Consideration Schedule FY2026-27 Budget Options • FY2026-27 Cost Drivers May 12 Public Hearing/Work Session Payments to Municipalities Grant Programs • Policy Questions Work Session May 14 Distribute County Department Discretionary Education Program Analysis outside Agencies May 21 Work Session public safety Department Discretionary Program Review Human Services Work Session Support Services May 26General Government Department Discretionary Program Review Community Services May 27 Commissioner Amendments Due at 10:00 AM June 4 Intent to Adopt Commissioner Amendment Approval 2 ORARNGE COUNTY g 9 Travis Myren presented an overview of additional budget options for the Board's consideration. 10 He said that a more detailed slide deck covering discretionary county department programs would be 11 distributed ahead of the next budget work session, with further discussion planned for the May 21st and 12 26th meetings. 25 1 2 Slide#3 FY 2026-27 Operating Budget Options Prior Strategies to Maintain a Flat Tax Rate County Tax Rate Hisory 120 99.80 100 95M 88.00 90.30 87.80 87.80 7.80 86.79 88.79 86.34 64.30 85.80 6580 85.80 85.80 65.80 83.77 85.04 83.12 83.58 81.87 80 67.58 63.83 60 40 20 0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Rec ORANGE COUNTY 3 N(-)RT'I I CARC>I,INA 3 4 Travis Myren said that staff reviewed the conditions that allowed the county to maintain a 5 stable tax rate between approximately 2010 and 2015. He noted that the period included a dramatic 6 reduction of approximately 64 county positions, many of which were vacancies generated in part by a 7 2009 retirement incentive. Additionally, employee wage increases averaged 1% per year, and current 8 expense increases for the schools averaged 1.5% annually between 2010 and 2014, with a large increase 9 in FY 2014-15 supported by a $10 million fund balance appropriation that would not be available today. 10 Commissioner Portie-Ascott asked about the retirement incentive. 11 Travis Myren noted that staff were updating quantitative analysis on what a similar incentive 12 might look like today and committed to bringing that information back to the Board. He further 13 explained that implementing such an incentive before the start of the fiscal year on July 1st would be 14 challenging, but it could be explored for implementation during the fiscal year. 15 16 26 1 Slide#4 FY 2020-27 Operating Budget Options Prior Strategies to Maintain a Flat Tax Rate Headcount Reduction of over 64 FTE in FY2010-11 • FTE count restored by 2015 Employee Wage Increases - County Employee Wage Increase—averaged of 1%per year between FY2010 and FY2016 School Current Expense Funding - Average of 1.5%annually between 2010 and 2014 - 91%increase in FY2014-15 supported by$10 million fund balance appropriation ORANGE COUNTY 4 NOR-F-1 r CAR(7LANA 2 3 4 Slide#S FY 2020-27 operating Budget Options • Prier Strategies to Maintain a Fiat Tax Rate Debt Service Obligations - Average Debt Service increase of$197,246 annually between FY2010-11 and FY2015-16 - Debt Service decreased from 16%to 13% of General Fund Revenues from FY2010 to FY2016 Pay-Go Funding - County and School Pay-Go reduced - Maintenance likely deferred ORANGE COUNTY 5 Nl Dli IF I' [:AIZt)LINrl 5 6 Travis Myren said debt service obligations were low during that period, declining as a 7 percentage of general fund revenues, and Pay-Go was reduced as a cost containment measure. 8 9 27 1 Slide#6 FY 2026-27 Operating Budget Options • Major Cost Increases for FY2026-27 iTotals Debt Service $ 7,800,000 Pay-Go $ 3,000,000 K-12 Current Expense+ Nurse/SRO $ 2,924,000 County Personnel Costs $ 5,507,000 County Costs to Continue $ 1,440,000 t ORANGE COUNTY 6 NORTH CAROLINA 2 3 4 Slide#7 FY 2026-27 Operating Budget Options • Budget Option Targets Budget Option Value of a one cent on tax rate $3,374,390 2 cent tax rate increase ($5,905,183) No tax Increase ($12,653,963) 7 ORAN GE COUNTY NTO5 6 Travis Myren said that reaching a 2-cent tax increase scenario would require approximately $5.9 7 million in reductions beyond what is in the recommended budget, and that a no-tax-increase scenario 8 would require approximately$12.6 million in additional reductions. 9 10 28 1 Slide#8 FY 2026-27 Operating Budget Options • Debt Service and Pay-Go Options Debt Service increase $7.8 • Equivalent to 2.0 cents per$100 of value • Exceeds all General Fund Revenue Growth($5.9 million) • Strategies to reduce future debt service pending staff analysis — Pay-Go- $3.0 million Equivalent to 0.9 cents,per$100 of value Adjust school bond program without pay-go ORANGE COUNTY S NC)RTH CAROLINA 2 3 Travis Myren said debt service increases are locked in and not adjustable for the current year, 4 and that meaningfully changing the trajectory of debt service growth would require significant 5 reductions to the capital investment plan over the next five to seven years. He said Pay-Go of$3 million 6 for school bond soft costs could theoretically be borrowed, but doing so within the $300 million cap on 7 total school borrowing would reduce funds available for construction. 8 Commissioner McKee asked whether converting Pay-Go to borrowing would save money, noting 9 that either way, $3 million is expended. 10 Travis Myren confirmed that if the $3 million were borrowed on top of the $300 million rather 11 than within it,the cost would increase due to interest payments with no net gain. 12 Commissioner Bedford asked how much is included in the current year for Pay-Go. 13 Travis Myren said the Board approved $5 million. 14 15 29 1 Slide#9 FY 2020-27 operating Budget options • K-12 Education New Expenses -Current Expense Increase -$2.8 million • Per Pupil funding would increase by$143 over FY2025-26 for a total of$6,020 per student • Due to declining student enrollment, no increase to current expense-2.4% increase in per-pupil funding Percent Increase to at Funding Per-Pupil Funding Current Expense Increase Base Amount $111,328,011 2.4% 1% $112,441,291 3.5% 1.5% $112,997,931 4.0% 2% $113,554,571 4.5% 2.5% $114,114,132 5.0% 3% $114,667,851 5.5% — Nurse and Student Resource Officer Contract Increase = $123,744 • Total cost of$4,248,550—discretionary GRANGE COUNTY 9 NORTH CAROLINA 2 3 Travis Myren said current expense funding is scalable, with each 1% increase representing 4 approximately$1 million. 5 6 Slide#10 FY 2020-27 Operating Budget Options • County Personnel New Expenses — County Employee Wage Increase @ 2% - $1.86 million Plan design changes previously approved by Board Open enrollment currently underway 0 Tax Administration Reserve for Tax Assessment Recommendations- $250,000 Delay funding decisions pending actual recommendations Delay implementation of recommendations pending new agreements with Towns Living Wage-$500,000 Maintain$18.18 per hour ORANGE COUNTY 10 NORTH CAROLINA. 7 8 Travis Myren said the county employee wage increase is similarly scalable at approximately $1 9 million per 1%. He said health insurance and retirement system costs are effectively locked in for FY 10 2026-27. He said the $250,000 placeholder in the Tax Administration budget could be deferred pending 30 1 the results of the ongoing assessment review. He said the living wage increase could be held at $18.18 2 per hour to save approximately$500,000. 3 Commissioner McKee asked how many employees are earning$18.18. 4 Travis Myren said that there are 17 full-time, benefited employees who earn this wage. 5 Otherwise, it's mostly temporary employees in departments like Solid Waste and the Library who are 6 earning the living wage. 7 8 Slide#11 FY 2026-27 Operating Budget options County Cost to Continue New Expenses Bonds, inn Fanee and 1nrOFkeFS Compensation _ $280,000 Software Service $368,000- - Fuel Costs-$595,400 • Could have some flexibility-continue to monitor fuel prices Recommended increase assumes$f5 per gallon diesel and$5 per gallon gasoline — Longtime Homeowners Assistance • Calibrated to compensate for 3.75 cent recommended increase • Reduction of$11,884 @ 2 cent target Reduction of$23,780 @ no tax increase ORANGz'-�E.COUNTY RTLIWA9 10 Travis Myren said bonds and insurance coverages are effectively non-negotiable, representing 11 $280,000 in increases. He said software-as-a-service costs require time to change for business continuity 12 reasons, so they are also effectively locked in. He said fuel costs of just under $600,000 are being 13 monitored 14 Commissioner McKee asked whether the county could lock in fuel pricing through a long-term 15 contract. 16 Travis Myren confirmed the county buys at market rate and does not currently have a locked-in 17 rate, noting that a six-month lock had been explored two years prior, but the futures market had not 18 allowed for longer commitments. 19 Travis Myren said the Longtime Homeowners Assistance increase can be calibrated to the final 20 tax rate, so if the Board adopts a rate lower than 3.75 cents, that program cost can be adjusted 21 accordingly. 22 23 31 1 Slide#12 FY 2026-27 Operating Budget options • Payments to Municipalities Payments to Municipalities Recreation Subsidies Chapel Hill-$83,760 $ 125,108 • Carrboro- -$35,898 • Mebane-$5,450 Chapel Hill Library(additional%of payment) $ 310,662 OTAL $ 435,813 ORANGE COUNTY 12 NCJRTH CAR"] INA 2 3 Travis Myren noted a $125,000 annual non-departmental payment to municipalities for 4 recreation programming, which dates to the 1970s in some amount and has been maintained without 5 re-examination. He also noted the remaining Chapel Hill Library contribution as a separate payment 6 within that category. 7 Commissioner Carter said it looks like the Town of Chapel Hill has allocated approximately $5 8 million for the library budget and asked what proportion of the total budget is provided by the county. 9 Travis Myren said that the county allocation to the Chapel Hill Public Library is around 6% of the 10 total budget. 11 Commissioner Bedford noted that the Town of Chapel Hill's own proposed budget increases 12 library funding and said she wants to ensure clarity for the public, noting that the county's reduction 13 does not eliminate the library's total budget. She observed that residents might be under the impression 14 that the county's decrease in funding represents a far larger cut to library services than is actually 15 proposed. 16 Travis Myren confirmed those points. 17 Commissioner Portie-Ascott asked if the phase-out of library funding was a new concept or was 18 discussed in the past. 19 Commissioner McKee said he had not found definitive language in meeting minutes, but 20 recalled there were discussions over the years that, with the investment in an Orange County Southern 21 Branch Library,the funding for the Chapel Hill Public Library would decrease. 22 Commissioner Greene confirmed she was involved in library discussions as a Chapel Hill Town 23 Council member and recalled that Orange County had advocated for interoperability between the two 24 library systems, and Chapel Hill asked for more county funding to serve users who resided outside of the 25 Town. She said both jurisdictions entered into an MOU from 2012 to 2015, but neither was fully satisfied 26 with the terms, and the agreement was not renewed, and there was a general understanding, though 27 not a formal commitment, that county funding would be revisited upon the opening of a Southern 28 Branch Library. 32 1 Vice-Chair Fowler said there was a Library Task Force from 2020-2022 that reviewed 2 interoperability and concluded it would not improve access or save money. That task force report was 3 brought to the BOCC, which declined to increase funding and instead continued funding at the current 4 level with approximately 2-3% annual increases, though the Board was unable to sustain the 3% 5 increase every year. 6 Chair Hamilton recalled that the Board had recognized even then that funding both the 7 Southern Branch and the Chapel Hill Public Library at higher levels simultaneously would be difficult. She 8 said libraries are not a mandatory county function. 9 Commissioner Carter said she gets the impression that the people in Chapel Hill would be glad 10 to take on a tax increase to continue library funding. 11 12 Slide#13 FY 2026-27 Operating Budget Options • County Grant Programs ProgramsMEMIL-_ Grant Climate Action Grants $ 211,110 Opioid Grant Program $ 200,000 Small Business Grant Program $ 191,008 Agricultural Grant Program $ 173,644 TOTAL $ 775,762 See Policy Considerations on Slide 15-savings in these programs could be used to offset General Fund expenses ORANGE COUNTY 13 NORTH CAROLINA 13 14 Travis Myren briefly outlined the discretionary grant programs that offer potential flexibility, 15 including the Climate Action Grant at $211,000 and the Opioid Grant Program, where reducing the 16 $200,000 community grant allocation could allow general fund contracts qualifying under opioid 17 settlement restrictions to be shifted to that fund, freeing up general fund dollars. 18 Commissioner Bedford asked if the $200,000 in the Opioid Grant Program funds any county 19 positions. 20 Travis Myren said no. 21 Commissioner Greene asked for clarification on how the opioid grant reallocation would work. 22 Travis Myren explained that three contracts and other expenses currently funded by the general 23 fund could qualify for opioid settlement funding. 24 Commissioner Portie-Ascott asked if any of the opioid settlement money is being used to match 25 federal dollars. 26 Commissioner Greene clarified that the opioid settlement funds include money from the 27 companies that created the opioid crisis. 28 Travis Myren said this $200,000 goes to community organizations as recommended by the 29 Opioid Advisory Committee. He said other opioid funds go toward related county-provided services. 33 1 Commissioner Greene said she asked for clarification because there are limitations on what the 2 opioid settlement money can be spent on. 3 Travis Myren said that Article 46 programs, including the Small Business Grant and Agricultural 4 Grant Programs, could be redirected if the Board amended its resolution governing their use. 5 Commissioner McKee said how impactful the Small Business Grant Program and Agricultural 6 Grant Program have been. 7 8 Slide#14 FY 2026-27 Operating Budget Options • Outside Agencies and MOE Funding to Opioid Settlement Fund Opioid Outside Agency and MOE Contracts Freedom House $ 242,449 CJRD MH Diversion Coordinator $ 105,197 Reentry House Plus $ 27,500 Oxford House $ 7,290 �OTAL $ 382,436 a ORANGE COUNTY 9 10 Travis Myren said the contracts with the entities listed on this slide are currently funded with 11 general fund money and may qualify to be funded by the opioid settlement fund. He said there is one 12 county position that could also qualify. 13 Commissioner Bedford brought up the point that the opioid settlement funding will eventually 14 run out. 15 Travis Myren confirmed that the funds will be available for around 10 years, more or less. 16 Commissioner Bedford noted that some of the opioid settlement money has been earmarked 17 for Crisis Diversion Facility operating expenses. 18 Travis Myren confirmed that would be a potential tradeoff. 19 20 34 1 Slide#15 FY 2026-27 Operating Budget Options • Summary of Pass #1 Options without Changes in Occupancy Tax and Article 46 OptionsSummary of Pay-Go Increase $3,000,000 Gurrenk Expense Increase @ 2.5% $2,800,000 SRO-Nurse Increase Contract Increase @ 3% $123,744 Employee Wage Increase @ 2% $1,860,000 ax Assessment Reserve $250,000 Living wage Increase @$20.02 per hour $500,000 Longtime Homeowners Assistance Increase tied to Tax Rate $----------TBD Payments to Municipalities-Recreation and Library $435,913 Climate Action Grant Program $210,110 Other Grant Programs $-----------TBD Transfer Outside Agency and MOE Funding to Opioid Fund $-----------TBD OTAL $9,179767 ORANGE COUNTY 15 Nc7RTH CAROLINA 2 3 4 Slide#16 FY 2026-27 Operating Budget Options • Policy Considerations -Apply Occupancy Tax to General Fund expenses? Local Occupancy Tax legislation requires 10%of Occupancy Tax collections($233,300)to be invested in tourism related spending Operating or Personnel expenses in Visitors Bureau or Arts Commission would have to be reduced to apply to other General Fund expenses Town of Chapel Hill Manager's Recommended Budget removes remaining$200,000 contribution to the Visitors Bureau-will require staff amendment and corresponding spending reductions Category Visitors Bureau ArtsCommission OutsideAgencles Total ersonnel $730,737 $439,931 $0 $1,170,66 perations $1,219,017 $388,030 $65,756 $1,672,80 Ion-Occupancy Tax Revenue ($217,000) ($293,489) 0 ($510,489) Net Occupancy Tax usage $1,732,754 $534,472 $65,756 $2,332,98 ORANGE COUNTY 16 NORTH CAROLINA 5 6 Travis Myren noted that while state law requires only that 10% of occupancy tax collections be 7 dedicated to tourism-type activities, and approximately $233,000 of the $1.7 million currently goes to 8 the Visitors Bureau, the Board could decide to redirect additional funds to general fund activities. He 9 noted that the Town of Chapel Hill has removed its remaining $200,000 contribution to the Visitors 10 Bureau in its current recommended budget and is adding a destination coordinator to its Economic 11 Development Department, overlapping with a role currently played by the Visitors Bureau. 12 Commissioner Greene added that last year the Town of Chapel Hill removed $300,000, and 13 proposed $200,000 this year,for a total decrease of$500,000 over two years. 35 1 Slide#17 FY 2026-27 Operating Budget Options • Policy Questions -Apply more Article 46 Sales Tax to General Fund expenses? Create savings from eliminating grant programs,collaborative outreach,memberships,etc. For example,Durham County uses Article 46 to fund - Durham Public Schools-67.12 - Durham Tech Scholarships-8.97% Pre-Kindergarten programming-2.17 Durham Public Schools Debt Service-21.74% Resolution currently in place would need to be modified ORANGE COUNTY 17 W-31l C.ARCINLINA 2 3 Travis Myren briefly mentioned Article 46 and noted that Durham County uses those funds for a 4 variety of programs, including pre-K and additional public-school activities. 5 Commissioner Bedford asked about the county's anticipated timing gap on Article 46. She noted 6 that she recalled seeing that the fund would be in the negative for around two years. 7 Travis Myren confirmed that because some job creation targets have not been met, Article 46 is 8 currently in a positive balance, and that this would be addressed during the next work session. 9 10 Slide#18 Budget Consideration Schedule FY2026-27 Budget Consideration Schedule May 12 Budget Public Hearing-Whitted Building;Hillsborough Work Session May 14 Education Budget Information Session-Hillsborough Outside Agencies May 2D Budget Information Session-Virtual Work Session May 21 Fire Districts Budget Information Session-Chapel Hill Public Safety Human Services Work Session May 26 Support Services General Government • Community Services May 28 Budget Public Hearing-Southern Human Services;Chapel Hill June 4 Work Session • Resolution of Intent to Adopt June 16 Businass Meeting Adoption of FY2026-27 Operating Budget and Capital Budget ORANGE COUNTY 16 NC7RTI-i CAROLINA 11 36 1 Slide#19 Questions? ORANGE COUNTY 2 N-CARn-- 3 Commissioner Bedford said she would prefer for commissioner budget amendments to be 4 posted as they are submitted for additional transparency, as opposed to all being posted on May 20tH 5 She noted that she and Commissioner Fowler intend to propose an amendment to restore Chapel Hill 6 Library funding and want the public to be aware of it. 7 Commissioner Carter added that she is planning to post an amendment to reinstate the step 8 increase funding and will be looking for offsets. 9 After discussion, the Board agreed that budget amendments would be posted when they are 10 received by staff. 11 Commissioner Portie-Ascott asked if there had been any impact on the county due to the 12 passage of"Iryna's Law." 13 Travis Myren said he was not aware of any impacts, but would check and follow up with the 14 Board. 15 16 Adjournment 17 18 A motion was made by Chair Hamilton, seconded by Commissioner Bedford, to adjourn the 19 meeting at 10:18 p.m. 20 21 VOTE: UNANIMOUS 22 23 24 Jean Hamilton, Chair 25 26 27 Recorded by Tara May, Deputy Clerk to the Board 28 29 Submitted for approval by Laura Jensen, Clerk to the Board Attachment 2 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUDGET WORK SESSION 5 May 14, 2026 6 7:00 p.m. 7 8 The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 14, 2026, 9 at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. 10 11 COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners 12 Marilyn Carter,Jamezetta Bedford, Sally Greene, Earl McKee and Phyllis Portie-Ascott 13 COUNTY COMMISSIONERS ABSENT: None 14 COUNTY ATTORNEYS PRESENT: John Roberts 15 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and 16 Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) 17 18 Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners were present. 19 20 1. Discussion Regarding Outside Agencies Funding for FY 2026-27 21 22 BACKGROUND: The County Manager presented the FY 2026-27 Recommended Budget at the Board of 23 Commissioners' May 5, 2026 Business meeting. Since that time, the Board has conducted one public 24 hearing to receive residents' comments regarding the proposed funding plan. This is the first opportunity 25 for the Board to discuss next year's recommended funding plan related to Outside Agency and Education 26 funding. 27 28 Outside Agency Funding: The recommended Outside Agency Funding can be found on page 218 of the 29 Manager's Recommended Budget.The recommended budget for FY 2026-27 is$693,953. 30 31 Caitlin Fenhagen made the following presentation: 32 33 Slide#1 ORANGE COUNTY NORTH CAROLINA FY2026-27 COUNTY MANAGER RECOMMENDED BUDGET Outside Agencies May 14,2026 BOCC Work Session 34 35 2 1 Slide#2 FY2026-27 PROCESS PRIORITIES • Alignment with County Strategic Goals and Objectives • Strategic Plan Manager Reviewed Submitted Applications, Completed Scorecards and Provided Feedback to County Manager • Outside Agencies Coordinator, Relevant Department Director and Deputy Manager Attended Joint County and Towns Agency Presentations and Completed Scorecards • No New Changes to the Application or Review Process • In Challenging Budget Year, Strong Priority for Safety Net and Direct Services • Manager Received Scorecards and Finalized Funding Decision with a Focus on County Needs_ ORANGE COUNTY 2 NORTI I CAROLINA 2 3 4 Slide#3 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Agenciesoutside iFY2026-27 Visitors Bureau 1 Approved it Funding Agencies Funded 39 35 29 3 Total $899,439 $ 800,146 $ 693,953 $ 143,545 • A total of 45 outside agencies applied for FY 26-27 funding.These requests totaled$1,310,203,which is$510,057 above the current BY appropriation. Nine(9)agencies applied for the first time requesting a total of$174,940. Twenty-nine (29)agencies are being recommended for 1~Y 26-27 funding in the amount of$693,953. Two(2)outside agencies will be moved to the Visitors Bureau Fund for tourism-related programming;one(1)outside agency is being moved to a department for funding. ORANGE COUNTY NORTH CAROLINA 5 6 7 3 1 Slide#4 FY2026-27 RECOMMENDED BUDGET NEW OUTSIDE AGENCIES Nine(9)agencies applied for the first time requesting funding totaling $174,940;two(2)new agencies are recommended to receive funding;two (2) new agencies are being recommended for department support services;three(3)new agencies determined ineligible: 1.Justice United—Request$25,000—Received funding 2.Unlocking Access—Request$10,000—Not funded/Aging referral 3.Uplift Laundry—Request$1,500—Not funded 4. SQAJA Fund—Request$5,000—Not Funded 5. Chapel Hill Historical Society--Request$900—Not funded/Aging referral 6.Millie Dunn Veasey Chapter 100—Request$15,000—Ineligible status/Referred to VSO 7.UNC—Chapel Hill(FFORC)—Request$50,262—Ineligible status 8.OWASA—request$42,278—Ineligible status/referred to DSS for pilot proposal planning for FY 27-28 budget r 9.Piedmont Health.—Request$25 000—Received fundin ` q gORANGEC©LINTY NORTH CAROLINA 2 3 Caitlin Fenhagen described the nine new applicants for outside agency funding and gave a brief 4 description of each applicant's proposal. She said three agencies were ineligible because they lacked 5 501c3 status. 6 Commissioner Portie-Ascott asked what Justice United requested for funding. 7 Caitlin Fenhagen said they requested funding for tax relief education and workshops. 8 9 Slide#5 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Funding Formula Application Score 95—100(Existing Agencies) Up to$5,000 plus base 90—94(Existing Agencies) Up to$2,500 plus base 80—89(Existing Agencies) Reduce 10%from base 79 or Below(All Agencies) $0 *Funding for existing agencies is based on the requested amount over or below last year's award(base). For new agencies,the base is$0.For new agencies with scores between 90-100,they received the amount requested up to$7,500.For new agencies with scores between 80-89,they received the amount requested up to$5,000. All agencies scoring 79 or below are not recommended for funding. ORANGE COUNTY NORTH CAROLINA 10 4 1 Slide#6 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Transferred to Visitors Bureau Fund Request Recommend Score Historic Hillsborough $10,800 $12,000 'S 9, 80 Commission (Burwell School) Historical Foundation $29,250 532,500 726,325 87 of Hillsborough and Orange County (Museum) �-f ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#7 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Transferred to Housing Department Contract FY2025- r 26 Award Score Habitat for Humanity $107,500 $107,500* 98 *All department contracts remained flat ORANGE COUNTY NORTH CAROLINA 5 6 5 1 Slide#8 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Strategic Goal: Housing for All FY2025-26i6 Award Request Recommend Score Marian Cheek Jackson Center: Northside 5O(x(10 $50,000 S5O,000 97 Initiative Hope Renovations $15,000 $50,000 $17,500 93 Justice United N/A $25,000 $7,500 93 (New) EmPOWERment $75,040 $85,004 $77,544 92 Reentry House Plus $25,000 $50,000 $27,500 92 Community Empowerment $37,500 $45,000 $40,000 90 2 Fund 3 4 Slide#9 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Strategic Goal: Housing for All FY2025-26i6 , Award Request Recommend ` Preserving Home $13,500 $20,000 $12,150 55 Pee Wee Homes $12,600 $13,000 $11,340 80 Oxford Douse $8,100 $9,000 $7,290 80 mmmm ORANGE COUNTY NORTH CAROLINA 5 6 1 Slide#10 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Strategic Goal: Healthy Community FY2025-26i Award Request Recommend Score PORCH-Chapel Hill $25,000 S 10,000 >3(i000 99 El Centro $44,133 $48,540 �-S,5 l0 99 Table Ministries $27,500 $35,000 $32,500 97 Rape Crisis Center $53,000 $51,000 $51,000 97 OC Meals on Wheels $75,000 $80,000 $80,000 95 Chapel Hill Farmer's $5,000 $40,000 $10,000 95 Market ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#11 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Strategic Goal: Healthy Community FY2025-26i Award Request Recommend Score Swim for Charlie $8,227 $21,000 $10,727 93 Refugee Community $15,000 $20,000 $17,500 92 Partnership PORCH-Hillsborough $22,000 $30,000 $24,500 92 Refugee Support Center $7,500 $7,500 $7,500 91 Exchange Club $16,186 $16,200 $16,200 91 ORANGE COUNTY NORTH CAROLINA 5 6 7 1 Slide#12 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Strategic Goal: Healthy Community Award Recornmendi Score Volunteers for Youth $11,500 $11,500 $11,500 9U Piedmont Health(New) N/A $25,000 $5,000 h Planned Parenthood South Atlantic $18,000 $20,000 $16,200 80 ORANGE COUNTY NORTH CAROLINA 2 3 Chair Hamilton asked what the Exchange Club does. 4 Melissa Allison, Business Officer in the County Manager's Office, said they are a child abuse 5 prevention organization, and work with at risk families in Orange County schools. 6 Caitlin Fenhagen said they also provide services in the home. 7 8 Slide#13 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Strategic Goal: Public Education/Learning Community YMCA—Chapel Hill $7,500 $10,000 $10,000 �)5 Orange County Partnership $8,000 $8,000 $8,000 95 for Young Children Family Reading Partners $15,000 $25,000 $17,500 94 Boomerang $35,000 $47,000 $37,500 90 Marian Cheek Jackson Center:Learning Across $7,500 $10,000 $6,750 89 Generations Empowering Excellence through Explorations(E3) $2,500 $3,000 $2,250 85 9 , ®®_ 8 1 Commissioner Portie-Ascott asked if Boomerang still had a presence in northern Orange County. 2 Melissa Allison said that the office was in the Churton Grove shopping center in Hillsborough. 3 Commissioner Portie-Ascott said she thought they'd moved out of the space. 4 Caitlin Fenhagen said they would confirm Boomerang's current location. 5 6 Slide#14 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Agencies Not Funded FY2026-27 Application Recommend Score Orange County Disability Awareness $0 $30,000 $0 64 Council Transplanting $0 $15,000 $0 78 Traditions Big Brothers/Sisters $0 $5,000 $0 70 Piedmont Electric $0 $25,000 $0 53 Helping Hands Uplift Laundry N/A $1,500 $0 53 Truck(New) ORANGE COUNTY NORTH CAROLINA 7 8 9 Slide#15 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Agencies Not Funded Recommend Unlocking Access $0—Referred (New) N/A $10,000 to Aging for 60 support Early Years $0—referred $0 $25,000 to DSS for 65 support SKJAJA(New) N/A $5,000 $0 65 Hillsborough $2,500 $7,017 $0 68 Community Garden UNC-CH(FFORC) N/A $50,262 $0-Ineligible 74 (New) ORANGE COUNTY NORTH CAROLINA 10 9 1 Caitlin Fenhagen said UNC-CH (FFORC) is a program from the Gillings School of Public Health that 2 works in Fairview with food and fitness education, and a community garden. She said they were not 3 eligible, but also a significant portion of their request involved overhead as with any UNC research 4 program. 5 6 Slide#16 FY2026-27 RECOMMENDED BUDGET" OUTSIDE AGENCIES Agencies Not Funded Award Request Recommend Score Charles House $23,400 $28,000 Sit 9 Chapel Hill $0—referred Historical Society N/A $900 to Aging for 81 (New) support $0— Millie Dunn Veasey Ineligible- Chapter 100 (New) N/A $15,000 referred to 83 VSO for support $0—referred OWASA (New) N/A $42,278 to DSS for 93 Pilot proposal for next FY TY NORTH CAROLINA 7 8 Caitlin Fenhagen said Charles House did not receive funding, but they receive funding for 9 scholarships from the Department on Aging and DSS. She said they are also serving a significant number 10 of people from outside of the county. 11 12 10 1 Slide#17 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES In Department Budgets iDepartment Recommend I Habitat for $107,500 Housing Hurnamty Community $308,476 Housing Home Trust IFC PSH $18,640 Housing IFC Shelter $274,453 IFC Food $100,000 DSS Services OCIM $154,915 DSS ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#18 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES In Department Budgets Department Recommend Diaper Bank $20,000 DSS Soltys Place $50,000 DSS Senior Care of OC Dispute $107,200 CJRD Settlement Center Compass Center $104,700 CJRD ORANGE COUNTY NORTH CAROLINA 5 6 7 11 1 Slide#19 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES In MOE Contracts FY2026-27 Recommend OE Enterprises $80,650 Club Nova $191,750 Freedom House $242,449 Triangle Disability and $33,200 Autism Services Haven House $19,000 El Futuro $106,048 ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#20 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES In MOE Contracts FY2026-27 Recommend Caramore $116,433 UNC Dept of Psychiatry $36,341 (for Detention Center) ORANGE COUNTY NORTH CAROLINA 5 6 7 8 12 1 Slide#21 FY2026-27 RECOMMENDED BUDGET OUTSIDE AGENCIES Total FY 26-27Awards General Fund Source fAwards Outside Agencies $693,953 Department Contracts $1,245,884 MOE Funds $825,871* *Additional 2%is also provided to Alliance Health for administrative assistance(Total$842,388) ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#22 Questions? GRANGE COUNTY NORI—H CAROLINA 5 6 Commissioner Carter asked if agencies that scored lower than others are taking steps to raise their 7 scores and how that process works. 13 1 Caitlin Fenhagen said agencies were informed prior to the work session that they were not 2 recommended for funding, and several have already asked how they can improve their applications. She 3 asked Melissa Allison to describe the application process. 4 Melissa Allison said they have a kickoff in December, and a few virtual workshops to answer any 5 questions before applications are due in December. She said agencies are always trying to figure out how 6 to increase their scores. 7 Caitlin Fenhagen said that applicants can also request their score cards after recommendations 8 are made. 9 Vice-Chair Fowler asked what the reason is for not having a funding tier that is flat funding. 10 Kirk Vaughn, Budget Director, said it is related to budget constraints. He said rewarding agencies 11 that score the best means there must be a reallocation to keep the total amount flat. 12 Chair Hamilton asked where people can view the score cards and the details in the budget 13 document. 14 Caitlin Fenhagen said that people can request the score cards. 15 Chair Hamilton said she would like to see this information in the budget document as well as on 16 the website. 17 Caitlin Fenhagen said that could be done. 18 Melissa Allison said that there is a page on the County Manager's section of the website about 19 outside agency funding. 20 Chair Hamilton said it would be helpful for the community to have those details in the budget 21 document. 22 Vice-Chair Fowler reminded the Board that the information used to be in the budget document, 23 but was removed due to concerns about conflicts of interest if there were any commissioners connected 24 to the agencies. She said now there is just the total amount because it is the County Manager making a 25 recommendation rather than the Board making individual award decisions. 26 Kirk Vaughn said the change was made in response to a change in state law, but he said the Board 27 has made other changes to meet that requirement so it may be no longer necessary to keep the 28 information out of the budget document. 29 30 2. FY 2026-27 Operating and CIP Budget Discussions, regarding Durham Technical Community College, 31 Chapel Hill-Carrboro City Schools,and Orange County Schools 32 33 BACKGROUND: The County Manager presented the FY 2026-27 Recommended Budget at the Board of 34 Commissioners' May 5, 2026 Business meeting. Since that time, the Board has conducted one (1) public 35 hearing to receive residents' comments regarding the proposed funding plan. This is the first opportunity 36 for the Board to discuss next year's recommended funding plan related to Outside Agency and Education 37 funding. 38 39 Education Operating Funding:The Manager's Recommended Education Funding can be found starting on 40 Page 159 of the Recommended Operating Budget. Per-pupil Current Expense funding is recommended to 41 increase from $5,877 to$6,171. 42 43 Durham Tech Funding: Durham Tech's recommended funding is also found in the education section of the 44 Recommended Operating Budget, on Page 159. The Manager is recommending a 3% increase to Durham 45 Tech's current expense,as well as additional funds to support six months of the operations of the expanded 46 facility. Durham Tech also receives additional funds through the Article 46 sales tax. 14 1 2 Education Capital Funding: The Manager's Recommended Capital Investment Plan details the School 3 Funding Summary on Page 132. There are $526.7 million of school capital projects in the 10-year capital 4 window. 5 6 JB Buxton, President of Durham Technical Community College, made the following presentation: 7 8 Slide#1 DURHAM �i TECH May 14, 2026 1 FY 2026-27 Orange County Budget Request Briefing9 10 JB Buxton said that they were pleased with the County Manager's recommended budget for 11 Durham Tech. 12 13 15 1 Slide#2 Enrollment Summary (2024-2025) Summary for Students Who Reside in Orange County (OC) Curriculum (CU), 2,677 Continuing Education (CE), StudentsDurham Tech &Basic Skills OrangeReside in • All Campus Locations (Out of 17,429) Out of 415/2,677 2,677 Career&College Promise Students 201/2,677 ■cu ■ce ■Basic Skills Durham Tech Promise Recipients Note.The extra 3%percent is due to (For at least one semester.) duplication.83 students were enrolled in both CU and CE/SSP. 7. ...................................... 2 3 JB Buxton shared information from the recent graduation ceremony at Durham Tech. He said that 4 they gave an honorary degree to Steve Farmer,who was the director of admissions at UNC. He said Steve 5 Farmer launched the C STEP guaranteed admissions program twenty years ago this year, which has now 6 served 1,400 students. 7 8 Slide#3 Orange County Resident Enrollment — Over Time Orange County Residents Taking Courses at Durham Tech-Any Campus Curriculum Students Continuing Education Students(BSP not incl.) 1800 1200 4107 1572 1600 1448 995 981 962 1400 1362 1339 1000 1200 1140 800 767 1000 600 aro 600 400 400 200 200 0 0 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Percent 19% -2% 8% 9% Percent 30% -1% -2% 15% Change Change =' D U R H A M T E C H durhamfech.edu 9 16 1 Slide#4 NCCCS PERFORMANCE MEASURES: Curriculum Completion 80.4% 70.4% 60% 62% 60,0% 55% 56% Wv. 57% m 2 60 50.4% 54% i 51°1a 52% a 48% 40.0% 45% 30.4% 20.4% 2016FA 2017FA 2018FA 2014FA 2D20FA 2021FA(SU pending) Four-year Cohorts Durham Tech —.—NCCCS dc1117amtecl7.eder Ihq 2 3 4 17 1 Slide#S Median Quarterly Eamings of Curriculum CTE Exiters by College CIE Exiters:Students who successlullycompieted at least 9 curmulum creart hours on at least one CIE Pferix and did not enroll in further postsecondary education for 3 years after exx Median Quarlerly Earnings:Aledian quarterly e2rntngs of wagLmatched extters in 3rd year after exit CoNege NCCCS.Exit Year 18-19�20-21(3-YearAggreglale) Age Range All.Highest Credanha!in Exit Year All $13.136 511,384 510,120 .._ $80!41 $19,826 511,391 u, $11.773 511,007 11,297 'a 1,34754,813 1 11,7. 511.164 51'5.546 $11,240 $1 P.993 .212.1 519:6W 11.593 10,91 - 12;083 11,134 $12,884 SPIS70 $13.765 1,3 .11.62 1194 536,756 $11,471 1192 "A $11,267 SIM 59,635:. 11,89 $12.36011.127 $11,736 30,565 $11.5.79 510,144 $12094 511.52+ 1002 =+ D U R H A M T E C H durhamtech.edu 2 3 JB Buxton said Durham Tech is one of the highest performing colleges who send their students 4 onto transfer. He said that students who enter UNC with an associate's degree have better outcomes. 5 6 18 1 Slide#6 MANAGER'S RECOMMENDATION V COLLEGE REQUEST Budget Item Base Request Manager Rec. Current Expense 973,724 1,187,296 980,579 Recurring Capital 75,000 100,000 75,000 Article 46 Innovation Hub 20,000 20,000 20,000 Apprenticeship Coordinator 9,083 9,475 9,475 Promise 200,000 200,000 200,000 Back to Work 100,000 100,000 100,000 Small Business Grant 70,000 70,000 70,000 Unfunded Items College Liaison 0 90,438 0 Sworn Police Officer 0 88,500 0 Police vehicle 0 25,000 0 durhamtech.edr -� 2 3 JB Buxton acknowledged the difficult budget situation this year and that while some of their 4 requests were unfunded, they understood the reasons. 5 Commissioner Portie-Ascott asked how many sworn police officers the college has. 6 JB Buxton said they have one sworn officer, and they would like another during second shift to 7 improve safety and security. He said their buildings are open access, and they would like to get more 8 personnel down the road. 9 10 Travis Myren made the following presentation: 11 12 Slide#1 ORANGE COUNTY NORTH CAROLINA Budget Work Session #1 Education Outside Agencies Board of Commissioners Work Session May 14, 2026 13 14 19 1 Slide#2 Durham Technical Community College • Operating Costs (non-instructional) — page 159 FY 2025-26 Durham Tech Funding Approved Request Current Expense $973,724 $1,187,296 $980,509 $6,785 Recurring Capital $75,000 $100,000 $75,000 $ Debt Service $191,318 $782,082 $782,082 $590,76 General Fund Subtotal $1,240,042 $2,069,378 $1,837,591 $597,549 Article 46 Subtotal $443,462 $443,854 $489,913 $46,451 • Current Expense increase of 3%plus$22,301 added to cover six months of new facility — Offset by moving existing College Liaison position to Article 46 • Debt Service increase-$590,764 ORANGE COUNTY 2 NORTH CAROLINA 2 3 4 Slide#3 Durham Technical Community College • Article 46 Investments — page 81 Programr Durham Tech Promise Scholarship $200,000 $200,000 Back to Work Initiative $100,000 $100,000 mall Business Program $70,000 $70,000 arolina Innovation Hub Rent $20,000 $20,000 b,pprenticeshipCoordinator $9,083 $9,475 FY 2026 Operating Ga $44,379 $0 olle a Liaison 0 $90,438 otal $443,462 $489,913 s ORo� ECOUNTY 5 6 7 zo 1 Slide#4 Education Work Session Agenda • Terminology • Total Budgeted Students and Enrollment Trends • Per Pupil Amount • Impact of the Special District Tax • Funding Recommendations • Undesignated Fund Balance Policy and Amounts ORANGE COUNTY 4 NORTH CAROLINA 2 3 4 Slide#S Terminology • Average Daily Membership (ADM) — Based on Department of Public Instruction's composite best of 20th or 40th day average daily membership • Out of District Students — Students from outside of the district attending a traditional Orange County public school — County is not responsible for funding Out of District Students • Charter School Students — Students living in one of the Orange County school districts but attending a charter school including charter schools in other counties — School districts must transmit the local per pupil amount to the charter schools serving Orange County students — County provides funds to the District to pay for those Charter Students through the Current Expense Budget — If a student transfers from a Traditional School to a Charter School, the amount is prorated for the time the student spends in each location • Total Budgeted Students — Number of students for which Orange County government provides funding on a per pupil basis s OoR-G CA OUNATY 5 6 7 21 1 Slide#6 Total Budgeted Students FY2O26-27 Chapel • e o City Schoolsil Orange County Schools 7Averageembership 10,773 6,733 eduction (260) (139) Charter Students 228 1,157 Total Budgeted Students 10,741 7,751 %of Total Budgeted Students 58.08% 41.92% • The number of total budgeted students dictates the amount of current expense funding each District receives. The County must provide the same amount per pupil to each District. • The percentage of total budgeted students influences how capital and recurring capital funding has historically been divided between the Districts. ORANGE COUNTY 6 NORTH CAROLINA 2 3 4 Slide#7 Student Enrollment History Total Budgeted Students by District 13,000 12,115 12,242 12,339 11,993 121 12,239 12,387 12,274 12,236 12,351 150 12,000 11,7 11,820 11,382 1,442 11,253 11,141 11,018 11,000 10 741 10,000 9,000 -$--CHCCS 8,072 8,011 8,134 8,156 8,110 8,023 8,003 ;005 7,863 7801 7,966 7,936 7,925 7,751 8,000 7 7,148 ,7227 172 7,357 7,437 , 7,000 6,000 5,000 2007-08 200809 2N9-10 2010-11 2011-12 2012-13 2013-14 201415 201516 201517 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 202¢25 202526 202527 CHCCS Budgeted Student Decrease of 277 Students Budgeted student percentage decreases from 58.16%to 58.08% �s OCS Budgeted Student Decrease of 174 Students ORANGE COUNTY 7 Budgeted student percentage increases from 41.84%to 41.92% NORTH CAROLINA 5 6 7 22 1 Slide#8 Student Enrollment with Projections CHCCS Past and Projected Enrollment 14,(00 12,000 12,004 12,126 12,256 12,305 12,303 11.764 11,411 71,352 11,200 11,099 10,758 10,619 10,438 10,326 y 10,101 10,164 9,997 9,882 9,823 9,783 9,688 10,000 "--—---- 8,000 6,000 4,000 2,000 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 —CHCCSAOM ——CHCCSPmjecled ADM ORANGE COUNTY 8 NORTH CAROLINA 2 3 4 Slide#9 Student Enrollment Over Time Chapel Hill-Carrboro City Schools Out of District and Funded Charter Students 400 350 350 309 316 300 Z41 241 242 250 251 253 260 250 222 210 o�oa a'. c 200 167 162 169 155 166 156 205 150 1v u7 loo so 0 2007.08 2008.09 2W 10 201P11 2011-12 2012-13 201314 2014-15 201516 201417 2017.18 2018.19 201420 202P21 2021-23 2022.23 2023.24 202425 202526 2026-27 WQd Out of District Students decreased by 58 Charter Students increased by 6 ORANGE COUNTY s Charter Students Represent Z l%of Budgeted Students NORTH CAROLYNA 5 6 Commissioner Carter asked what the contributing factor was for the peaks and declines in the 7 graph in slide#9. 8 Travis Myren said they asked and there was not a policy change. He said it was likely due to 9 personal decisions. He said it is a corollary to what is happening with enrollment in general. He said there 10 are more choices available to families. 23 1 Slide#10 Student Enrollment with Projections OCS Past and Projected Enrollment 8,000 7,513 7,435 7,339 71300 7,365 7,108 7,031 6,914 6,976 6,908 6,722 6,672 5,649 7,000 ' 6,575 6,529 6,477 6,390 6,30Q ——— 6,243_ 6 —_6-129 6,000 5,000 4,000 3,000 2,000 1,000 o — 2016 2017 2D18 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 OCS ADM ——OCS Projected ADM ORANGE COUNTY 10 NORTH CAROLINA 2 3 4 Slide#11 Student Enrollment Over Time Orange County Schools Out of District and Funded Charter Students 1,400 1,200 1,157 1,091 999 1,000 951 843 885 �cnartK 800 7b9 617 r—ou�at o�s�nn 600 400 364 254 254 254 254 254 254 254 254 200 89 89 89 89 89 89 89 0 89 103 97 108 110 ils 145 -5 1 60 7 5 0 200]-08 200&09 200410 2010-ll 2011-12 2012-13 2913-14 291415 201516 201-7 201]-18 2016-19 201420 2-21 2021-22 2022-23 2023-24 202425 2D2S26 202627 Budget Out of District Students increased by 24 Charter Students increased by 21 ORANGE COUNTY 1 Charter Students Represent 94.9%of Budgeted Students NORTH CAROLINA 5 6 Commissioner Carter asked how the percentage of budgeted students in charter schools compares 7 to other counties. 8 Travis Myren said they would look into it. 24 1 Chair Hamilton wondered how the chart would look if the state voucher program was mapped on 2 to the changes in the charter schools, and if it might explain why there may be an increased number of 3 charter students. 4 Travis Myren said they should be able to find it on the Department of Public Instruction website. 5 6 Slide#12 Per Pupil Allocation Per Pupil Allocation Total Current Expense Budget $114,114,132 Total Countywide Budgeted Students 18,492 Per Pupil Amount $6,171 Each budgeted student funded at the same per pupil amount Budgeted District Students Per Pupil Allocationq 7OCSHCCS 10,741 $6,171 $66,282,711 7,751 $6,171 $47,831,421 12 ORANGE COUNTY WOR'rHNA 7 8 9 Slide#13 Per Pupil Allocation Over Time County Per Pupil Funding Amount History $7,000 $294 increaft—FY2025-26 $6,171 $6,000 $S,877 $5,346 $5,006 $4,165 54352 $4,367 $4,367 $4,000 $3,968 $3,991 $3,571 $2,957 $3,069 $3,200 $3,096 $3,102 $3,167 53,269 $3,000 $2;000 $1;000 7�flp ORANGE COUNTY 13 NORTH CAROLINA 10 25 1 Slide#14 Impact of the Special District Tax Chapel Hill Carrboro City Schools District Tax Rate History 25.00 23.00 n.m 22 00 zo.2o zo.3s 16 20.84 20.84 20.64 20.64 40.18 20.18 30.16 40.18 ao.00 ao.00 MWMW .6u 20.00 sa 3a 18.3018.30 1].7S 1].]5 1].35 17.35 1J.90 15.4015.0 15.00 14 76 14.76 10.00 5.00 0.00 `m Q 8 a o9 g a o $ S o a LL LL s LL LL 91 9 R it R R R LL R R LL LL LL it LL LL LL LL u LL g R ri ORANGE COUNTY 14 NORTH CAROLINA 2 3 4 Slide#15 Impact of the Special District Tax CHCCS Per Pupil History with District Tax $10,000 $8,978 $9,000 $6,217 $8,000 $7,811 $7,001 $7,000 � 61 $6,000 $s,769 ss,eso sa,oas ' $5,093 $5,000 $4,793 ■District Ta Per Pupil Equiv6lent $4,000 $3,000 !County Per Pupil S2,000 $1,0017 FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2019-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23FY2023-24 FY2024-25 FY2025-26 FY2026-27 Rec. 15 ORANGE WOORTH CAROL, TY rn1A 5 6 7 26 1 Slide#16 FY2026-27 Funding Recommendations SchoolTotal Recommended FY2025-26 FY2026-27 $Difference %Increase Approved Recommended Current Expense $111,328,011 $114,114,132 $2,786,121 2.5% Capital Pay-Go $3,621,200 $6,683,624 $3,062,424 84.6% Debt Service $20,840,115 $23,297,056 $2,456,941 11,8% Health &Safety Contracts +Enrollment Projections $4,160,806 $4,284,550 $123,744 3.0% TOTAL $139,950,132 $148,379,362 $8,429,230 6.0% Calculation of Percentage of General Fund Revenues Dedicated to K-12 Education Total School Funding Rec. $148,379,362=46.65% Total General Fund Revenue $318,074,591 ORANGE COUNTY 16 NORTH C:AR"LINA 2 3 Vice-Chair Fowler asked if the capital pay-go was the amount originally there for maintenance and 4 not the new pay-go. 5 Travis Myren said it's both. He said the county had $3.1 million in existing pay-go that was going 6 to schools and they added $500,000 last year, and this year they are recommending an additional $3 7 million to get up to a total of$6 million. 8 Commissioner Carter clarified that the recommended amount vs.the previous fiscal year amount 9 did not also show the continuation request. She confirmed that the recommended amount did not meet 10 the continuation amount. 11 Travis Myren said that is correct. He said the bottom of the chart shows what the funding 12 recommendation is compared to total general fund revenue. He said historically, they've had a target of 13 48.1%, but the recommended amount is 46.65% 14 15 27 1 Slide#17 FY2026-27 Funding Recommendations Education Expenses by Category 32o,00p,ppp 114,114,132 131,328,031 Sps,a9D,2a2 102,942,576 1.0,000,0.0 93,5]8,J8 88,020,]20 88,629,114 89,353,187 84,95],6]0 80,745,&17 80,000,000 77,201,412 �Totel Current Expense �ToGI Recurring GP_ fi0,000,000 —�Toinl0ebt5ervice TSCM1ppI HealtM1 anC 9afi1y 4D,DpD,DpD cor4am 231]3$246 21,80],353 21,322,13. 2.,840,155 23,297,056 17,115,421 17,770,542 18,50],33fi 19,182,204 20,000,000 15,646,915 15,372,383 15,p]4,91D 0 FY.2015-16 FY 2016-1] FY 2011-18 FY2018-19 FY2019.20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY20-25 25 2b FY2026-27 Ree. ORANGE COUNTY 17 NORTH CAROLINA 2 3 Vice-Chair Fowler asked if the formula for the percentage of funding compared to general fund 4 revenue is consistent with previous formulas. 5 Travis Myren said it uses total general fund revenues, which includes revenue generated by 6 departments. 7 Vice-Chair Fowler said one of the strategies this year was to increase fees. She asked how much 8 that went up by. 9 Kirk Vaughn's response was inaudible. 10 11 Slide#18 FY2026-27 Funding Recommendations Operating Budget Funding as a Percentage of General Fund Revenue Funding Target-4&1% 52.00% 50.68% 50.58% 50.00% 49.69% M 49 50.D5% 4991% 98.99% 48.10% 48.10% 48.06% 48.22% 4867% 48.00% 4]09% 46.74% 46.81% 45.65% 46.00% 44.00% 42.00% 40.00% �vO1�.,v4 ��Ohb'S4'! �yryOyh,16 til 'S0 v9 ry0 'y~ .ti'L ry'0 ryP 'yx7 ,yb yryOO�, F h J 9yfl. �y�Oyy, �ryOy� voy�. ��011. �vO1� ��h� �vOVO. ��Ory1 ��Q 4,ryo �vOryb. �Oryy, Obry^mac. F ORANGE COUNTY 18 NORTM CAROLINA 12 28 1 Slide#19 FY2026-27 Funding Recommendations Total General Fund Revenues include revenues generated by departments to offset their costs Another way to view the County investment in Education is to compare that investment only to the revenue generated by the county's taxing authority • Total General Fund Revenue -$325,130,721 $275,868,111 Generated by Taxes—Property Tax,Sales Tax and Licenses—85% $49,262,610 Generated by County Operations—Grants, Fees, Donations, Fund Balance, Interest, etc.—15% • Total Revenue Generated by Taxing Authority- $275,868,111 Total K-12 Education (Operating +Debt Service)$148,379,362 or 54%of County Tax Revenue Net County (Operating +Debt Service—Dept Revenue) $127,488,749 or 46%of County Tax Revenue ORANGE COUNTY 19 NORTH CAROLINA 2 3 Commissioner Greene said she didn't recall seeing the net county figures for a percentage of 4 county tax revenue generated by taxing authority. 5 Travis Myren said they may have talked about it before, but they specifically included it this year. 6 7 Slide#20 FY2026-27 Capital Funding Recommendations SchoolFY2026-27 Capital Budget Total Recommended Article 46 Sales Tax $3,323,839 Proportion of Budgeted Students,less Charter Students Debt Financed—High Priority Needs $4,608,678 Project Based Debt Financed—Bond Projects $102,383,000 Elementary School Construction Carrboro Elementary OCS Elementary Lottery Proceeds $1,807,908 Proportion of Budgeted Students Recurring Capital &Pay-Go $6,683,624 Proportion of Budgeted Students Represented in Transfer from General Fund TOTAL $118,807,049 zo ORo. GE�C©UNATY 8 9 10 29 1 Slide#21 FY2026-27 Funding Recommendations School Budget Requests and Manager's Recommended Budget 8FY2025-26 Budget •Continuation Request ■Manager's Recommended ■Fzpansion Request $80,000,000 $71,538,023 $70000000 564,752,786 $67,838,023 566,282,711 $60,000,000 $50,484,041 $50,000,000 $46,878,225 518,50.4,086 $47,831,421 $40,000,000 $30,000,000 $20,000,000 $10,000,000 Chapel Hill Carrboro[Ityschools orange County schools • CHCCS Orange County Schools • Recommended Budget-$66,282,711 Recommended Budget-$46,575,225 $1,555,312 below Continuation Request $712,665 below Continuation Request $5,255,312 below Expansion Request $2,652,620 below Expansion Request 21 ORANGE UN WOR-FH CAROATY 2 3 4 Slide#22 FY2026-27 Funding Recommendations Tap 15 School Districts in Actual Per-Pupil Funding in SY 2025 Chapel Hill-Carrboro City Schools Asheville City Schools Durham Public Schools Orange County Schools D...County Schools Chatham County Schools Charlotte-Mecklenburg Schools Weldon City Schools Mooresville Graded School Ddsbict T.,sylvanla County Schools Buncombe County Schools Wake County Schools New Hanover County Schools Hyde County Schools Guilford County Schools $- $1,000 $2,000 $3,000 $4,000 $5.000 $6000 $7000 80,000 $5,000 Soumer NC Department of PoW Instruction,Table 30 Link to luta 22 ON ORTH C-:ARONGE COUNTY INA 5 6 Commissioner Carter asked what fiscal year the information in slide#22 compared. 7 Travis Myren said it was for FY 2024-25. 8 Travis Myren said that the General Assembly seems to have reached an agreement on a budget, 9 and staff spoke with the schools today to determine how their budgets will be impacted. He said that they 10 will bring back recommendations to the Board. 30 1 Commissioner Carter asked if the legislation has passed. 2 Travis Myren said it hasn't yet. 3 Vice-Chair Fowler asked if the average salary increase of 8% is retroactive. 4 Travis Myren said no. He said no salary tables have been released, but it appears most of the 5 raises will be heavily weighted towards starting teachers. 6 Chair Hamilton asked if the salary assumption in the budget was 7%. 7 Travis Myren said it was 7% over two years in the schools' continuation request, but his 8 recommendation was 2.5%which cumulatively is 5%with the previous year's increase. He said they will 9 have more information for the Board at a future budget work session. He said the state budget likely won't 10 be approved until after June 30. 11 12 Slide#23 Fund Balance Policy • Joint policy between the County and the School Districts — Last amended in 2018 to increase Orange County Schools undesignated fund balance target from 3%to 5.5% — Each District has targeted undesignated fund balance target of 5.5%of budgeted expenditures for "cash flow purposes only" — Undesignated fund balance may exceed targeted amount for"unseen events or opportunities" and other non-recurring purposes — Extraordinary emergency needs may exhaust fund balance • School Districts will take appropriate action to address the problem • County will reimburse the Districts for the necessary expenditures to address emergencies ORANGE COUNTY 23 NORTH CAROLINA 13 14 15 31 1 Slide#24 Fund Balance Results • Audited undesignated fund balance amounts for FY2024-25 — Does not represent fund balance appropriations made during FY2025-26 Year to Date — Chapel Hill-Carrboro City Schools -$294,028 -.3%of FY2024-25 actual expenditures — Orange County Schools $5,456,494 12.4%of FY2024-25 actual expenditures ORANGE COUNTY 24 NORTH CAROLINA 2 3 Vice-Chair Fowler asked how the fund balance currently looks at CHCCS. 4 Travis Myren said the district has done a lot of cost cutting and they will have an improvement in 5 the next audit. 6 Kirk Vaughn said because the raises won't be retroactive, both school districts held funds in 7 reserve, so they will be adding to their fund balance. 8 Commissioner Carter asked if we know what the fund balance currently is. 9 Travis Myren said they are expecting several million dollars in CHCCS. He said for CICS, as Kirk 10 Vaughn noted, there should be funds that roll into fund balance because of the raises that were not 11 retroactive. 12 Commissioner Bedford said that CHCCS is predicting $4.5 million in unassigned fund balance at 13 the end of the fiscal year. 14 Chair Hamilton clarified that the raises are not retroactive, and teachers got no raises last year. 15 She said the average is 8%, but the raises will be front loaded to newer teachers, and how that will look is 16 unclear. She confirmed that the County Manager will get back to the Board to see how that impacts their 17 continuation budget request. 18 Commissioner Carter asked how supplements for school staff are paid. 19 Travis Myren said they are paid out of current expense and are ongoing expenses, so must be 20 matched with revenues. 21 Chair Hamilton said the state is paying a basic wage and the districts use the funds given to the 22 county to determine the supplements that are given above the state's wage. She said usually it's a 23 percentage of what the state gives. She said that that the school districts decide what the supplement 24 schedule looks like, and the Board does not make that decision. 25 Commissioner Greene said that the county won't know how to calculate the impact of the raises 26 since they are more heavily weighted towards newer teachers, and the county doesn't have that 27 information. 28 Chair Hamilton said the districts will come back to the county with that information. She said the 29 county doesn't fund the supplements and the schedules. 30 32 1 Commissioner Bedford said there are also salary steps that affect the schools' continuation 2 budget, including the locally paid portions. She said the state allotments weren't adjusted. 3 4 Adjournment 5 6 A motion was made by Vice-Chair Fowler, seconded by Commissioner McKee, to adjourn the 7 meeting at 8:28 p.m. 8 9 VOTE: UNANIMOUS 10 11 Jean Hamilton, Chair 12 13 14 Recorded by Laura Jensen, Clerk to the Board 15 16 Submitted for approval by Laura Jensen, Clerk to the Board Attachment 3 1 1 MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUSINESS MEETING 5 May 19, 2026 6 7:00 p.m. 7 8 The Orange County Board of Commissioners met for a Business Meeting on Tuesday, May 19,2026,at 7:00 9 p.m. at the Southern Human Services Building in Chapel Hill, NC. 10 11 COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners 12 Jamezetta Bedford, Marilyn Carter, Sally Greene, Earl McKee, and Phyllis Portie-Ascott 13 COUNTY COMMISSIONERS ABSENT: None. 14 COUNTY ATTORNEYS PRESENT: John Roberts 15 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and 16 Clerk to the Board Laura Jensen (All other staff members will be identified appropriately below.) 17 18 Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners were present. 19 20 1.Additions or Changes to the Agenda 21 A motion was made by Commissioner Portie-Ascott,seconded by Commissioner Carter,to add the 22 viewing of a video on the Impact of Property Tax Changes from the Executive Director of the North Carolina 23 Association of County Commissioners (NCACC), Kevin Leonard, as item 4-a. 24 25 VOTE: UNANIMOUS 26 27 Chair Hamilton read the public charge and reviewed the instructions for making public comment. 28 She noted that comments on printed agenda items would be taken when those specific matters come 29 before the board. 30 31 2. Public Comments(Limited to One Hour) 32 a. Matters not on the Printed Agenda 33 LaTarndra Strong said she has attended several Board meetings recently and heard from many 34 residents about how budget recommendations will impact them. She said she could not help but notice 35 that those most deeply affected were often not present in the room and not speaking for themselves. She 36 said she is concerned about the trend of Black families leaving Orange County, and she is also aware that 37 Black teachers, staff, and service professionals are leaving Orange County Schools.She asked the Board to 38 do more with less and urged commissioners to remember that property ownership and property taxes 39 represent a point of privilege that many residents will never experience. She said there are community 40 members who have been balancing their household budgets simply to access basic resources, and that 41 this financial crunch is driving people out of the county. She specifically mentioned transportation as a 42 barrier in Northern Orange County, noting that residents there essentially need a car to access services, 43 and that families are migrating from Northern Orange to Southern Orange because of greater access to 44 resources there. She said families should not have to leave simply because there is no viable option for 45 them to stay. 46 47 b. Matters on the Printed Agenda 48 These matters will be considered when the Board addresses that item on the agenda below. 2 1 3.Announcements, Petitions, and Comments by Board Members 2 Commissioner McKee had no comments. 3 Commissioner Portie-Ascott provided context for the property tax conversation. She said the 4 General Assembly is actively discussing legislation that could place limits on how counties raise property 5 tax revenue, and that this conversation is moving very quickly through legislative committees.She said the 6 discussion is driven by widespread community concern about the impact of rising property taxes on 7 housing stability. She said the Board is simultaneously hearing from residents who want continued 8 investment in schools, housing, and emergency services, and from residents who feel they simply cannot 9 afford higher taxes. She said both concerns are real and that the Board sits in the middle of those 10 competing realities. She said the purpose of the video was to inform the public about what is being 11 discussed at the state level and how those decisions could affect Orange County's future. 12 Vice-Chair Fowler expressed gratitude to all those who came to the previous public hearing to 13 advocate for schools and libraries. She announced that she co-sponsored an amendment with 14 Commissioner Bedford to reinstate supplemental funding to the Chapel Hill Public Library that was cut in 15 the proposed budget.She said that in the current environment at both the state and federal levels,where 16 critical thinking and access to books are being constrained, it is important to support and strengthen 17 libraries and community meeting spaces. She said she had also submitted a budget amendment to add 18 more Pay-Go funding to support healthy school environments, noting the county has a long-standing 19 deficit in school repair funding. She said she was still waiting to hear the impact of the North Carolina 20 Legislature's proposed teacher raises before considering an additional amendment to increase K-12 21 operational funding. Vice-Chair Fowler said she is aware that this is a difficult budget year with many 22 pressures to minimize tax increases, but that she also wants to be responsive to the people who have 23 advocated for teachers. She shared that she attended the Climate Council meeting recently, and heard a 24 presentation from Mary Tiger of OWASA about the current drought conditions.She said as of last Thursday, 25 OWASA's water supply was at 84% capacity, just under usual water conservation conditions, and that a 26 stepped approach to water conservation may be required if levels continue to decrease. She said the 27 Climate Council also heard from women who lead the Hillsborough Climate Challenge, noting growing 28 community engagement each year.She said the collaborative Heat Action Plan was also discussed and that 29 messaging would run throughout the summer to educate outdoor workers to find shade, rest,and hydrate 30 frequently.She said cooling centers would also be identified on a day-to-day basis as staffing allows. Finally, 31 she shared that the Tax Work Group met yesterday with consultants David Barnett and Josh Myers from 32 GAR and JVG Consulting,who will review the county's tax policy, procedures, and organizational structure 33 to make recommendations aimed at improving both vertical and horizontal equity as well as public 34 communication regarding taxes. She said the Work Group also met with Janice Jackson from 35 Developmental Associates,who will facilitate the hiring of the new tax administrator. 36 Commissioner Greene shared that she visited the Hillsborough Library earlier today and noticed 37 an SUV with an LED sign from the Governor's Highway Safety Program displaying an outdoor temperature 38 of 96.7 degrees Fahrenheit and an interior vehicle temperature of 136 degrees. She said this was a 39 powerful public service demonstration about the danger of leaving children or pets in hot vehicles. She 40 said she attended an affordable housing seminar in Marion, North Carolina on May 7th, sponsored by the 41 School of Government. She said the day-long workshop, led by Tyler Milligan, focused on county funding 42 strategies for privately owned affordable housing. She said she plans to consult further with Tyler Milligan 43 before sharing her notes with the Board. She shared that she attended the Piedmont Food Processing 44 Program board meeting last Friday and that the entity is in the black for the first quarter of 2026. She said 45 the organization is being contacted two to three times a week by potential new clients and is being 46 selective in accepting new business, partly due to limited space,which she said is a good problem to have. 47 Commissioner Bedford said she and other commissioners attended the Pauli Murray Awards on 48 Sunday and that the event was rewarding and warm, particularly seeing youth receive awards. She said 3 1 the Board of Social Services met yesterday and reported that the implementation of a new child case 2 management system is going well. She said Orange County is the last of eleven counties to go live but the 3 first to use the system for child case management.She said the Continuum of Care group also met virtually 4 to review the charter, which had been or is being posted for public comment. She said she also attended 5 the Climate Council meeting and noted that two items from the Heat Awareness Week proclamation on 6 the consent agenda stood out to her. First, certain medications can affect how the body responds to heat, 7 and second,older adults are more vulnerable.She said the guiding mantra for summer heat safety is water, 8 rest, and shade. 9 Commissioner Carter said she also attended the Tax Assessment Work Group meeting and is 10 pleased that the consultant's review of tax operations is underway,that the process for hiring a permanent 11 tax administrator has begun, and that positive changes are being made under the Interim Tax 12 Administrator. She called attention to the Emergency Medical Services Week proclamation on the consent 13 agenda, marking the 52nd celebration since President Gerald Ford established it in the 1970s.She said first 14 responders save lives every day through rapid response, expert decision-making, and compassion, and 15 that they deserve recognition. She said that as budget discussions proceed, it is important to remember 16 that counties are mandated by state law to provide certain services, including administering Medicaid, 17 SNAP, housing programs, and public education, and that the federal government and state have been 18 pushing unfunded mandates downward. She said she would be advocating for a budget amendment to 19 reinstate step plan pay increases for emergency services professionals. She said she remains committed 20 to engaging with the National Association of Counties and the North Carolina Association of County 21 Commissioners to ensure that Orange County's voice is heard alongside other counties. She said the 22 tensions arising from these pressures can divide communities but can also unite them through mutual 23 understanding and collaboration, and that she looks forward to Orange County choosing unity. 24 Chair Hamilton said she also attended the Pauli Murray Awards and congratulated the student 25 contest winners and the Pauli Murray Award winners. She said the youth award was presented to Nitya 26 Sharma, the adult award went to Molly Luby, and the business award was given to E3 Camp's Anissa 27 McClendon. She said keynote speaker Jesse Huddleston gave a strong presentation and thanked the One 28 Human Family Choir and county staff for putting together the event. She said she attended the Advisory 29 Council on Aging at Central Pines Regional Council today and noted that senior Tar Heel Legislators for the 30 region will be holding an advocacy day at the General Assembly tomorrow. She said she appreciated her 31 colleagues' comments about the tension inherent in this budget season and said the Board will continue 32 to share the realities of balancing tax rates with service delivery. She then offered a petition to the Board 33 to consider having the Tax Administrator, who is appointed by the Board of County Commissioners, be 34 exempt from the county's personnel ordinance and subject to a review process by both the Board and the 35 County Manager. 36 37 4. Proclamations/ Resolutions/Special Presentations 38 a. Impact of Property Tax Changes Video 39 This item was added at the beginning of the meeting. 40 41 The Board watched a video from the North Carolina Association of County Commissioners 42 (NCACC) explaining the impact of state property tax changes. The video is available at the following link: 43 https://www.facebook.com/reel/1527932805417932. 44 In the video, Kevin Leonard explained the concept of a property tax levy limit. He said a levy limit 45 caps the total amount of property tax revenue a local government can collect each year but does not 46 account for the actual cost of providing services. He said county governments face the same inflationary 47 pressures as individual households—paying more for patrol cars, bulletproof vests, ambulances, school 48 buildings,jails,and the operations that support them—and that most of those expenditures are mandated 4 1 by the state and federal government. He said a levy limit does not reduce those obligations; it simply 2 restricts the ability to pay for them. He said the predictable results include pressure to cut services,delayed 3 investments, and cost-shifting to other revenue sources such as fees. He said a constitutional levy limit 4 treats the symptom but not the root cause,does not address rising costs or affordability, and risks creating 5 new challenges without delivering the relief people are asking for. 6 7 S. Public Hearings 8 None. 9 10 6. Regular Agenda 11 a. Adoption of the Final Financing Resolution Authorizing the Issuance of 2026A Installment Purchase 12 Financing for Various Capital Investment Plan Projects 13 The Board adopted the final financing resolution authorizing the issuance of up to $32,000,000 in 2026A 14 installment financing for capital investment projects and equipment for the fiscal year. 15 16 BACKGROUND: At the May 5, 2026 Business meeting, the Board of County Commissioners conducted a 17 public hearing and received preliminary information on capital projects and equipment financing for up 18 to approximately $60.8 million. The Board made a preliminary determination to finance project, 19 equipment and financing costs by the use of an installment financing, as authorized under Section 160A- 20 20 of the North Carolina General Statutes.The County routinely uses installment financing as the vehicle 21 for the annual spring financing.The County has divided the total financing into two(2)installments:2026A 22 and 2026B.This proposed action approves the issuance of the first installment identified as 2026A. 23 24 With approval of the attached resolution, the Board gives final approval for the 2026A financing (up to 25 $32,000,000). It approves substantially final financing documents, and authorizes staff to complete the 26 closing. Staff anticipates receiving the required approval of the Local Government Commission on June 2, 27 2026, establishing the final bond amount and financing terms on June 10, 2026, and then closing the 28 financing by the end of June 2026. As the process continues, staff will work with other financing team 29 members to confirm final details of the funding and County payment arrangements, allowing staff to 30 complete the remaining blanks in the documents.This process is consistent with past practice. 31 32 The Board will be asked to give final approval of the 2026B issuance at the July 9, 2026, Business meeting. 33 That issuance will primarily fund construction costs for the Crisis Diversion Facility. 34 35 Notes regarding certain projects: 36 - The Blackwood Farm Park project pertains to re-graveling and drainage work.There is no 37 financing associated with this item for the proposed disc golf course. 38 - The Affordable Housing project pertains to Habitat East Village (funding for site infrastructure 39 and development for East Village at Meadowlands 76 new units (2, 3, and 4-bedroom) of which 40 64 will be affordable Habitat homes for first-time homebuyers earning between 30%and 80%of 41 area median income (AMI).The remaining 12 units (15%) in East Village will be market-rate 42 homes. Pee Wee Homes pertains to construction of three (3) new affordable rental homes ("tiny 43 homes") at 106 Hill Street in Carrboro. 44 - The 510 Meadowlands Phase 2 project pertains to remediation costs. 45 46 COLLATERAL: In this type of County installment financing, the County secures its obligations to the 47 bondholders by a mortgage-type interest in some or all the property being acquired or improved through 48 the financing. The County plans to secure this 2026A financing through a pledge of several County 5 1 facilities, including the Justice Center, North Campus, Southern Campus, and the Emergency Operations 2 Center on Meadowlands Drive in Hillsborough, as well as the Crisis Diversion Facility site.The County has 3 flexibility to release individual portions of the collateral from financing liens when the release will advance 4 other County priorities. 5 6 No schools are being used as collateral for the 2026 financings, although schools remain as collateral for 7 other County financings. As part of this financing process, the County will release Ephesus Elementary 8 from all financing liens to simplify the Chapel Hill Carrboro City Schools Board's evaluation of the future 9 of that school. 10 11 Bondholders generally require that the County offer collateral equal to at least 50% of the loan amount 12 (for example, at least $5 million of collateral for a $10 million loan). The prospective collateral package 13 has an approximate value of $90.0 million. The current issue will take the total amount secured by this 14 collateral package to approximately$122.3 million, providing a collateral ratio of approximately 73.4%. 15 16 Gary Donaldson, Chief Financial Officer, made the following presentation: 17 18 Slide#1 ORANGE COUNTY NORTH CAROLINA Limited Obligation Bands, Series 2026A Final 'Financing Resolution Gary Donaldson,Chief Financial Officer May 19, 2026 19 20 21 6 1 Slide#2 Purpose Obtain Board Approval of Resolution to Proceed with Series 2026A Final Financing Resolution Y Bonds will price and close in June Y Annual Budget Ordinance includes a reimbursement resolution hence$16.5 million of the bond funds will be reimbursing capital project expenditures already incurred this fiscal year Funds obtained for our FY 2025-26 Capital Investment Plan through the Series 2026A Limited Obligation Bonds are secured by a 2018 Deed of Trust, with a security interest in various County facilities. The existing 2018 Deed of Trust pledged certain County property as collaterals to help secure repayment of those earlier bonds. r The new 2026A financing is being added to the 2018 Deed of Trust which has sufficient Collateral capacity. y- The Series 2026A Limited Obligation Bonds will fund various County projects including the Crisis Diversion Facility as well as the Durham Technical Community College Academic Building ORANGE COUNTY NORTH CAROLINA 2 3 Gary Donaldson provided an overview of the 2026A installment purchase financing. He said bond 4 counsel was in attendance and authored five attachments included in the agenda packet, including the 5 resolution, the bond purchase agreement between the county and the underwriters, the deed of trust 6 establishing the county's collateral security, and the official statement to be communicated to investment 7 banks. He said the county plans to price and close the bonds in June. He said $16.5 million of the $29 8 million in projects being financed have already incurred expenditures, which will be reimbursed at the 9 time of closing through the annual reimbursement resolution passed each year as part of the budget 10 process. He said the deed of trust dates to 2018 and carries over additional available collateral capacity 11 for the projects secured under the 2026A bonds. He said the anchor project is the Durham Tech building, 12 for which the county has already received a guaranteed maximum price. He said a range of other projects 13 carry useful lives of five years for vehicles and equipment up to a twenty-year maturity for the Durham 14 Tech building. He said the Orange Grove Fire District promissory note will remain blank until the bonds are 15 priced and will return to the manager and other signatories for execution. 16 17 7 1 Slide#3 FY 2026 Projects A B c 1 Vehicle Replacements County Vehicles $ 379.815 2Information Technologies Infrastructure County 419,834 3 911 Computer Aidm ed Dispatch(CAD)Replacement County 302.534 4 Emergency Servioss Renewal&Replacement County 484.927 5Electric Vehicle Charging Stations for County Vehicles County 402,069 6 HVAC Projects County 2,130.047 7 Behavioral Health Crisis Diversion Facility(Land&Design) County 3.569.656 8 510 Meadowlands Phase 2 County 291,647 9 Board of Elections Expansion for5torage County 107,582 10 Parking Lot Improvements County 467.399 11 Fa it- County 911,648 12 Electrical Upgrades County 74,805 13 Fire Alarm,Fire Suppression System Replacements County 261.488 14 Interior Finish Replacements County 367,108 15 Affordable Housing County 966,500 16 Blackwood Farm Park Cnunty 61.039 17 Etland Cheeks Community Center County 150,000 18 Generator Projects Ccunty 17,154 19 Orange County Bidirectional Antenna(BDA)Upgrade County 1,264.317 20 Durham Technical CC Academic Building College 11,275,000 21 Orange Grove Fire District OGFD 1,700,000 22 Solid Waste Vehicles&Equipment Solid waste 3,834.632 23 Spensplex Sportsplex 126.581 24 Lumited Obligation Bonds,Series 2026A Total $29.565,781 25 Behavioral Health Crisis Diversion Facility(Construction) County 29,929,352 26 Limited Obligation Bonds,Sarins 2026B Total $29,929,352 27 Limited Obligation Bonds,Series 2026A&B Grand Total $59,495,133 Note,Series 2025A&B LOBS do not include dedtfinancingfor school capital projects. D A Currentschool capital projects are anticipated to be funded from reactivated 2019 ORANGE COUNTY Bond Proceeds,increased Capital Reserves,and Pay Go NORTH CAROLINA 2 3 4 Slide#4 Key Financing Terms Limited Obligation Bonds,Series 2026A&B ➢ Security Pledge-County assets serve as collateral,with payments subject to annual County appropriations P Maturity Term-5-20 Year maturities matches the useful life of the assets ➢ April 1 and October 1 Repayment Dates to Bank Trustee;First Interest Payment on October 1,2026,and First Principal Payment on April 1,2028,consistent with the Debt Model ➢ Estimated Interest Rates- Between 4.5%-5_5%subject to market conditions ➢ Maximum Annual Debt Service-Estimated to be$6.395 million in FY 2028 ➢ Source of Repayment-Property Taxes,Solid Waste Fees,Sportsplex Fees,and OGFD Repayment ➢ Because Limited Obligation Bonds are not secured by a direct pledge of the County's taxing power,they are usually rated one notch below the County's general obligation bonds ➢ Current Limited Obligation Bonds-Aa1/AA+/AA+from Moody's,Standard&Pool's,and Fitch Ratings ORANGE COUNTY NORTH CAROLINA 5 8 1 Gary Donaldson said the planning interest rate is estimated at between 4.5% and 5.5%, and that 2 market conditions are more stable than the previous year, when tariff volatility impacted the municipal 3 bond market. He said there have been no canceled municipal bond sales, and that the Orange County 4 credit, along with North Carolina credits under LGC oversight, is well-received in the marketplace. He said 5 the actual debt service sources for the Sportsplex and Solid Waste projects will come from their respective 6 user fees, while property taxes will fund the county and Orange Grove Fire levy portions. He said the 7 county's debt service as a percentage of general fund revenues and debt to assessed value remain within 8 policy limits. He noted that Fitch has recently changed its methodology for rating municipal issuers and 9 that the ratings will be shared with the Board once all three credit presentations are complete. He said the 10 county's general obligation bonds carry a double-A rating and that the expectation for the limited 11 obligation bonds is AA-plus from Fitch and AA1 from Moody's. 12 13 Slide#5 Limited obligation Bonds Collateral overview r Security Pledge- County assets serve as collateral, with payments subject to annual County appropriations i' Lenders generally require that the value of the collateral be equal to at least 50% of the financing amount (for example, at least $10 million of collateral for a $20 million loan) The collateral for the Series 2026A&B Bonds will include the County's Northern and Southern Campuses, the County Justice Facility, and the new Crisis Diversion Facility.The value of this collateral will comfortably exceed lender requirements Pursuant to the County's financing document, the County can continue to borrow money against this same collateral pool as long as a meaningful portion of the amount financed is used to improve property in the collateral pool ORANGE COUNTY NORTH CAROLINA 14 15 16 9 1 Slide#6 Debt Service Model Metrics All CIP Projects (Tax-Supported Debt) Debt Ratios 10-year Payout Debt to AV DS to GF Revenues 2026 63.55% 1.11% 11.42% 2027 58.82% 1.58% 12.78% 2028 57.55% 1.90% 13.64% 2029 61.14% 1.85% 17.31% 2030 63.36% 1.66% 18.61% 2031 62.29% 1.81% 18.30% 2032 62.87% 1.85% 18.60% 2033 65.59% 1.73% 19.71% 2034 68.13% 1.49% 19.51% 2035 95.47% 1.38% 18.63% 2036 97.51% 1.28% 17.71% ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#7 Questions ORANGE COUNTY NORTH CAROLINA 5 10 1 Commissioner Carter asked how the recent movement in U.S. Treasury rates affects the county's 2 bond timing and long-term debt service projections. 3 Gary Donaldson responded that the planning rate of 5% has been retained and that the county's 4 financial advisors are closely monitoring the market. He said there has not been nearly the level of concern 5 felt last year and that the county's strong credit profile means there is no significant budgetary impact 6 anticipated from Treasury rate movements. 7 8 A motion was made by Vice-Chair Fowler, seconded by Commissioner Bedford, to approve the 9 final 2026A financing resolution,which authorizes the steps to complete the financing of the stated capital 10 projects and equipment, in the form presented. 11 12 VOTE: UNANIMOUS 13 14 b. Discussion of Funding Request from Hope NC to Alliance Health to Support Acquisition of Units at 15 Weaver's Grove for Supportive Housing for Adults with Intellectual/Developmental Disabilities at 30% 16 AMI or Below 17 The Board approved and authorized the Manager to sign a Memorandum of Agreement with Alliance 18 Health to allocate$100,000 in funds earmarked for Orange County and held by Alliance Health to support 19 the acquisition of four (4) townhomes at Weaver's Grove for Hope NC's affordable, supportive housing 20 program for adults with Intellectual/Developmental Disabilities (I/DD). 21 22 BACKGROUND: In April 2026, Alliance Health contacted Orange County regarding a request Alliance 23 received from Laura Wells, Executive Director of Housing Options for People with Exceptionalities, Inc. 24 (Hope NC). The request from Hope NC proposed $100,000 in financial assistance to support the final 25 funding needed for the Phase 1 purchase in May 2026 of four(4)recently built townhomes at the Weaver's 26 Grove development in Chapel Hill, North Carolina.Significant funding support for Phase 1 has already been 27 provided to Hope NC from the North Carolina Housing Finance Agency ($569,000), a loan from the Town 28 of Chapel Hill ($185,000) and from Hope NC's capital campaign and cash reserves ($106,000). 29 30 Hope NC's mission is to create and expand safe,affordable and supportive housing options for people with 31 I/DD. The four (4) Weaver's Grove units will be leased to eight (8) adults with I/DD at or below thirty 32 percent (30%) of area median income (AMI) for Orange County that have supportive housing service 33 needs.The residents will be supported by onsite Community Facilitators who will ensure their connection 34 to critical supports in the neighborhood and the wider community. The majority of residents would be 35 Alliance Health members and Hope NC will strive to ensure a minimum of 50% of the residents are from 36 Orange County. Hope NC currently operates two (2) successful affordable housing programs for I/DD 37 residents in Wake and Durham counties. This new program at Weaver's Grove will be the only available 38 supportive affordable housing program of its kind in Orange County. 39 40 Caitlin Fenhagen, Deputy County Manager, made the following presentation: 41 42 11 I Slide#1 ORANGE COUNTY NORTH CAROLINA Discussion of Funding Request for Hope NC's Purchase of Affordable, Low-Barrier, Supportive Housing at Weaver's Grove for Adults with I f DD May 19, 2026 BOCC Business Meeting 2 3 Caitlin Fenhagen introduced Ann Oshel, Senior Vice President of Community Innovation and 4 Impact at Alliance Health, and Laura Wells, Executive Director of Hope NC. S 6 Slide 2 BACKGROUND • In March 2026, Alliance Health received a request from Hope NC to provide $100,000 in funds to complete acquisition of 4 new housing units at Weaver's Grove that will support 8 adults with Intellectual/Developmental Disabilities (I/DD) • In April, Alliance Health requested that Orange County authorize the use of existing Cardinal realignment funds held by Alliance to support this funding request • These funds are earmarked for Orange County priorities and the existing fund balance is approximately $1.2 million • The Cardinal fund balance has been discussed for support of the Crisis Diversion Facility ORANGE COUNTY 2 NORTH CAROLINA 7 8 Caitlin Fenhagen said that in March,Alliance Health received a request from Hope NC to consider 9 providing$100,000 in funding to complete the acquisition of four new housing units at Weaver's Grove, a 10 Habitat for Humanity development near Sunrise Road in Chapel Hill. She said the four duplexes will serve 12 1 eight adult individuals with intellectual and developmental disabilities (IDD). She said in April, Alliance 2 Health contacted the county to request authorization for use of existing Cardinal Innovation transition 3 realignment funds held by Alliance and earmarked for Orange County priorities. She said the remaining 4 balance of those funds, approximately $1.2 million, is planned to support the county's crisis diversion 5 facility. 6 7 Slide#3 Hope NC Proposal • Hope NC is seeking $100,000 for the remainder of their Phase 1 acquisition cost for 4 new duplexes at Weaver's Grove for their supportive housing program serving 8 adults with I/DD • The units will be leased to eligible residents with I/DD earning at or under 30% AMI • The supportive services will include on-site Community Facilitators to address independent living skills, referrals to vocational and employment services and integration with the community ORANGE COUNTY NORTH CAROLINA 8 9 Caitlin Fenhagen said Hope NC's proposal is part of a Phase 1 acquisition expected to close this 10 month. She said all other funding for the purchase is secured and that the $100,000 represents the final 11 piece needed. She said eight applications for residency have already been received, with six applicants 12 being existing Alliance Health members and three being current Orange County residents. She said the 13 units will be leased to eligible residents with IDD earning at or below 30%AMI.She said supportive services 14 will include on-site community facilitators to assist with independent living skills, referrals to vocational 15 supports, and community integration at Weaver's Grove. She said Empowerment NC will serve as the 16 property manager. 17 18 13 1 Slide#4 Additional Information • Hope NC expects to close on these units in May; all other funding for the Phase purchase has been secured • 8 resident applications have been received; 6 are Alliance Health members and 3 of these individuals are currently Orange County residents • Residents will be eligible for Project-Based Vouchers from the Housing department i 3 4 Slide#5 The Homes ORANGE COUNTY NORTH CAROLINA 5 6 7 14 1 Slide#6 The Community BE Mf Ir 9 ORANGE COUNTY NORTH CAROLINA. Z 3 4 Slide#7 Manager Recommendations • Receive the information and authorize the Manager to recommend to Alliance Health that $100,000 in Cardinal funds earmarked for Orange County be used to support Hope NC's purchase of the 4 duplexes • Authorize the Manager to sign an MOA with Alliance Health that restricts the use of this funding to housing serving adults with I/DD at or below 30% AM I and that the restriction is maintained for the 30-year Period of Affordability attached to the property ORANGE COUNTY NORTH CAROLINA 5 6 Caitlin Fenhagen said the request before the Board is to authorize the County Manager to 7 recommend to Alliance Health that the $100,000 from the Cardinal allotment be used to support Hope 8 NC, and to authorize the Manager to sign a Memorandum of Agreement with Alliance Health restricting 9 the use of the funding to housing serving adults with IDD at or below 30%AMI. She noted that a 30-year 10 period of affordability is already in place for the units through other agreements. 15 1 Slide#8 Questions? ORANGE COUNTY NORTH CAROLINA 2 3 Commissioner Portie-Ascott asked what the rental amount would be. 4 Caitlin Fenhagen said there will be project-based vouchers that will cover the rent. She said Blake 5 Rosser, Orange County's Housing Director, has confirmed that residents will be eligible for those vouchers. 6 Commissioner Portie-Ascott asked about the prioritization of Orange County residents and how 7 many approved residents currently reside in Orange County. 8 Caitlin Fenhagen said that three of the eight approved residents currently live in Orange County. 9 She said residents were selected before Orange County was involved in helping with the funding, but going 10 forward,they are committed to maintaining 50%of the units for existing Orange County residents. 11 Commissioner Carter asked if there are any remaining slots for Orange County residents. 12 Laura Wells said that the tenant selection process was already completed before the county was 13 involved in securing the final funding.She said Hope NC received 47 applications for eight slots,conducted 14 an intensive selection process including interviews and a formal tenant selection plan, and ultimately 15 selected all eight residents.She said six of the eight are existing Alliance Health members,one had recently 16 returned from homelessness in Pennsylvania and is Alliance-eligible, and one is awaiting SSI approval but 17 will also be Alliance-eligible. She said Hope NC is committed, with the county's funding agreement, to 18 prioritizing Orange County residents for future unit turnover with a goal of maintaining at least 50%Orange 19 County residency over time. 20 Commissioner Carter said she appreciates the program and is excited about the step forward it 21 represents for a community in great need of this type of support. However,she said that she is somewhat 22 disappointed that only three of the eight incoming residents are current Orange County residents. She 23 added that there is expected to be low turnover in permanent supportive housing. 24 Vice-Chair Fowler noted that some of the 47 applicants who are not from Orange County may 25 have previously lived in the county but been priced out or displaced. She said she has listened to Hope 26 NC's meetings over the past several years and thinks it is wonderful that a $100,000 investment is helping 27 to secure roughly $860,000 in already-committed funding. She said the Weaver's Grove setting is ideal, 28 given it is a mixed-income, mixed-ability community, and highlighted the extreme difficulty of providing 29 housing at 30%AMI to individuals with IDD. 30 Commissioner McKee raised a question about the 30-year affordability period. 31 Laura Wells said Hope NC is committed to maintaining affordability for people below 30% AMI 32 indefinitely. She said the 30-year term reflects the requirements of specific funders, including the NC 33 Housing Finance Agency and the Town of Chapel Hill. She said Habitat's ground lease ensures affordability 34 at or below 80% AMI for the full 99-year term. She said if the Board desired, Hope NC would have no 16 1 problem signing an agreement to maintain 30% AMI affordability for the entire 99-year ground lease 2 period. 3 Commissioner McKee said he would prefer to see the affordability period match the ground lease 4 when public money is involved, and that he wants the program to serve the population it is intended for 5 as long as possible. 6 Commissioner Greene praised this project. She said she does not necessarily agree with tying the 7 formal affordability requirement to the full 99 years, noting that organizations like DHIC maintain their 8 properties far beyond the 30-year LIHTC requirements as a matter of practice and mission. She said the 9 real significance of the initiative lies in the partnership forged between Habitat for Humanity, Hope NC, 10 and Empowerment NC, describing it as exactly the kind of collaborative, highly leveraged project the 11 county wants to support for this population. 12 Chair Hamilton raised a concern about the Memorandum of Agreement's language regarding the 13 50%Orange County residency requirement.She said the MOA as drafted indicates that the restrictions on 14 affordability and Orange County residency apply for a term of five years, not 30, and that after five years 15 there would be no enforceable guarantee that any beds would be reserved for Orange County residents. 16 She said this inconsistency is concerning given the language about a 30-year affordability period 17 elsewhere. 18 Caitlin Fenhagen acknowledged the discrepancy.She said Alliance Health's attorney had reviewed 19 the MOA and, upon the county attorney's original proposal of a 30-year term, Alliance struck it back to 20 five years.She said their reasoning was that the$100,000 represents a five-year grant agreement and that 21 the broader affordability is already protected through other funding agreements. She said she and John 22 Roberts can attempt to renegotiate the language and offered to go back to Alliance Health to attempt to 23 extend the restriction to 30 years. 24 Commissioner Bedford said this is one of the Board's first examples of project-based vouchers.She 25 asked how the Medicaid waiver for people with IDD works to support housing. 26 Laura Wells said the Medicaid waiver does not cover housing. She said that is why Hope NC has 27 tried to make partnerships with LME/MCOs to collaborate on inclusive housing. 28 Commissioner Bedford said that is especially discouraging, given that there are 17,000 North 29 Carolinians on the waitlist for a waiver and it wouldn't even help them with housing costs. She said she is 30 very supportive of this project and appreciates all the work that was done to make it happen. She 31 acknowledged the effort Habitat went through for 20 years to get this off the ground considering the 32 neighbors opposing it. She said to be aware that EmPOWERment may not have training on supporting 33 folks with IDD and encouraged training if needed. She said she hopes to get beyond the 30-year 34 affordability period, and said she believes this is a model that can be replicated. 35 Commissioner Portie-Ascott asked where the Orange County residents that were selected reside 36 currently. 37 Laura Wells said that she believes one is a Chapel Hill resident and the other two are from other 38 parts of the county. 39 John Roberts clarified the legal position offered by Alliance's attorney. He said Alliance's attorney 40 indicated that having a 30-year affordability restriction in the MOA would require Alliance Health to record 41 restrictive covenants on the property and to serve as the enforcer of those covenants for the entire period. 42 He said Alliance is not willing to take on that long-term monitoring responsibility for what they view as a 43 five-year grant agreement. 44 Chair Hamilton said she does not understand their point about a five-year grant. 45 John Roberts clarified that he is only conveying the other attorney's position, but that Alliance 46 intends to issue the$100,000 grant for a five-year term. 47 Chair Hamilton said that she does not agree with Alliance's position. 17 1 Commissioner McKee agreed with Chair Hamilton. He said the position seems designed to avoid 2 long-term responsibility and expressed concern about what happens to residents five years from now if 3 conditions change. 4 Commissioner Bedford proposed that the county could have an MOU with Hope NC to ensure that 5 there is prioritization for Orange County residents. She said she has good faith that Orange County 6 residents would get some priority. 7 Vice-Chair Fowler asked for clarification on why a fourth Orange County resident wasn't identified 8 initially. 9 Laura Wells shared again that the tenants were selected before approaching Alliance about 10 funding. 11 Ann Oshel offered a clarifying overview of Alliance Health's involvement. She said upon approval 12 of the funding release,Alliance will issue a capital investment grant to Hope NC,outlining the terms of the 13 tenant selection plan, requiring that all tenants have an IDD diagnosis and access to services.She said this 14 would be Alliance's 17th capital investment in this type of model.She said the five-year period reflects the 15 term of Alliance's monitoring responsibility fortheir grant,and that their standard capital investment grant 16 language now requires grantees to follow the affordability requirements of other primary funders. She 17 said if Hope NC defaults on another loan, Alliance reserves the right to require repayment. She said 18 Alliance will continue to monitor compliance with tenant eligibility and fair housing practices throughout 19 and expressed confidence that Hope NC would maintain the prioritization of Orange County residents and 20 IDD-eligible individuals indefinitely. 21 Commissioner Bedford asked who the property would revert to in the circumstance that Hope NC 22 dissolves. 23 Laura Wells said that Habitat has the right of first refusal. 24 Chair Hamilton said she would like to see if Alliance Health would agree to include the 30-year 25 affordability and eligibility period in the agreement. 26 Caitlin Fenhagen supported Ann Oshel's explanation. She said because it is Alliance's grant and 27 they have certain monitoring responsibilities,they are only interested in a five-year period.She reiterated 28 that the affordability is preserved through other mechanisms. 29 Chair Hamilton clarified that her current concern is not about the affordability period, but the 30 prioritization period for Orange County residents in the event of an opening. 31 Caitlin Fenhagen cautioned that Alliance Health may not be interested in monitoring for 30 years, 32 but said she could see if they were willing. 33 Commissioner Carter said she is supportive of the concept, but feels it is important to be able to 34 show Orange County residents that the program has a path for 50% residency for them and for a future 35 Board to not be confronted with that question down the road.She supported adding language to the MOU 36 to ensure that will happen. 37 Caitlin Fenhagen said the language in the MOU ensures that for five years, but some Commissions 38 want to extend the 50% residency priority and affordability restriction to the full 30-year period in the 39 MOA.She offered to go back to Alliance Health's attorney to attempt that revision,and suggested that the 40 County Manager be authorized to sign once a resolution is reached. 41 Commissioner Bedford restated the option of a secondary direct MOU between the county and 42 Hope NC, without funding attached, committing Hope NC to maintain the Orange County preference. 43 Caitlin Fenhagen said that is a possibility. 44 Commissioner McKee said he doesn't want to hold up the process because they are closing this 45 month on the properties, but said he thinks it is important to get some assurances in place. 46 Commissioner Bedford said she is willing to vote for the item as currently written.She said she has 47 good faith that Hope NC will continue to prioritize Orange County residents, but the word "strive" in the 48 MOA does not represent a guarantee in any event, and given the desperate need for IDD housing, she 18 1 doesn't want to hold up the project due to geography. She said her own daughter is in Harnett County 2 because that was the closest group home that was available at the time, and as a parent of a person with 3 IDD, people will try to get the closest appropriate fit at the right level of service for their child or adult 4 child. S Commissioner Greene said she also wants to move forward with the motion as written. She said 6 she found Ann Oshel's explanation of the five years convincing and thinks Commissioner Bedford has 7 raised important points. She said this housing is needed, and Orange County is part of a region. 8 Vice-Chair Fowler said the 30-year affordability period is part of Hope NC's agreement with Chapel 9 Hill, so she is confident that it will not be an issue. She said she has trust in Hope NC and has seen what 10 they've done with their projects in Grosvenor Gardens and Durham's North Street. She said she is 11 wholeheartedly in favor of moving forward. 12 13 A motion was made by Commissioner Greene, seconded by Vice-Chair Fowler, to authorize the 14 Manager to request the allocation of$100,000 from Alliance Health to support the purchase of the four 15 (4) Phase 1 units at Weaver's Grove for affordable,supportive I/DD housing, and to approve and authorize 16 the Manager to sign a Memorandum of Agreement with Alliance Health memorializing the understanding 17 that Alliance Health will contract with Hope NC to provide these funds and will ensure the restrictions on 18 affordability and eligibility are maintained for the existing 30-year Period of Affordability. 19 20 Commissioner McKee said he is not going to vote against the item, but was disappointed the Board 21 was not willing to take a few additional days to resolve the five-year versus thirty-year issue more 22 definitively. 23 24 VOTE:Ayes,4(Commissioner Bedford,Commissioner Greene,Vice-Chair Fowler,Commissioner McKee); 25 Nays,3(Commissioner Carter, Chair Hamilton, Commissioner Portie-Ascott) 26 27 MOTION PASSES 28 29 c. HOME 2026-27 Annual Action Plan (AAP)Approval 30 The Board approved the 2026-27 HOME Investment Partnership Annual Action Plan, a resolution 31 authorizing the Orange County FY 2026-27 Home Design Program and authorized the Chair to sign said 32 resolution, and a resolution authorizing the submission of the FY 2026-27 Annual Action Plan for Orange 33 County, North Carolina. 34 35 BACKGROUND: The HOME Consortium Local Government Affordable Housing Collaborative (LGAHC) is 36 made up of elected officials from all four(4) participating jurisdictions:Carrboro,Chapel Hill, Hillsborough, 37 and Orange County. The Collaborative reviews staff recommendations on strategy and policy around 38 HOME federal funding, and makes recommendations to the Boards and Councils of each municipality for 39 final approval. 40 41 The Annual Action Plan shares how Orange County plans to use HOME funding in a given year. At the 42 Business meeting on April 7, 2026, the Orange County Board of Commissioners held a public hearing on 43 behalf of the HOME Consortium at the Whiffed Building (300 W. Tryon St., Hillsborough NC 27278) to 44 receive public input about priorities for the 2026-27 Annual Action Plan.The public comment period was 45 open from March 23,2026 to April 23, 2026,and no comments were received at the hearing or during this 46 period. 47 19 1 Housing staff issued a request for proposals (RFP) in January 2026, with a deadline of February 27, 2026. 2 Two (2) applications were submitted — one (1) from Habitat for Humanity of Orange County, for its 3 Rehabilitation program, and one (1) from the Orange County Partnership to End Homelessness (OCPEH) 4 for tenant-based rental assistance (TBRA). Both applications align with the newly developed 2025-29 5 Consolidated Plan priorities of Repair/Rehab and Tenant-Based Rental Assistance. 6 7 Given the above factors, plus the announced award amount of$381,456.81,the LGAHC recommendation 8 for the 2026-27 HOME Award is to award Habitat's full funding request at $180,000, and to award the 9 remaining funds of$271,981.33 to OCPEH for TBRA. 10 11 Blake Rosser, Housing Director, made the following presentation: 12 13 Slide#1 HOME —2.026-27 Annual Acri©n Plan (AAP) May 5, 2026 OMNGE CCKJNTY NORTH CAROLINA 14 15 Blake Rosser said the purpose of the agenda item is to formalize the plans discussed during the 16 previous month's public hearing regarding the HOME funding annual action plan for fiscal year 2026-27. 17 He apologized for the late addition of two required resolutions to the agenda packet, noting that the 18 documents had been placed at the dais by staff. He said he reviewed last year's submission and found he 19 had provided them in August,adding that he is improving on timeliness and is confident the materials will 20 be included in the packet on time next year. 21 22 20 1 Slide#2 Available funds for 2026-27 HOME Award Amount $381,456.81 Match Amount $95,364.20 Program Income* $13,306 Administration ($38,145.68) TOTAL $451,981.33 *Annual payments made by Community Home Trust for previous assistance to The Landings at Winnmore QORANGE COUNTYT NOICL[CAROLINAW40 X54 ,a 2 3 Blake Rosser said the HOME award amount is $381,456, and that when the match amount and 4 program income are added, and the 10% administration allowance is subtracted, the consortium has 5 approximately$450,000 to work with for the year. 6 7 Slide#3 Proposed funding allocation _donbHOME 26-27 Habitat for Humanity Repair& Rehabilitation $180,000* OC Partnership to Tenant-Based Rental $271,981.33 End Homelessness Assistance (TBRA) Administration $38,145.68 TOTAL $490,127.01 *Includes required 15% set-aside for Community Housing Development Organization (CHDO); by regulation 15%of HUD funds must be allocated to such a designated organization. Habitat qualifies as a CHDO. ®R, f : e ORANGE COUNTY NOKTH CAROLINA 8 9 Blake Rosser said the recommendation from the Home Consortium and the local government 10 affordable housing collaborative is to fund Habitat for Humanity's full request of$180,000 and to fund the 21 1 remaining balance of$271,981 to the Partnership to End Homelessness for tenant-based rental assistance. 2 He said these were the only two applications received and that both align perfectly with the new 3 consolidated plan priorities of repair and rehabilitation and tenant-based rental assistance. 4 5 Slide#4 Next Steps • May 2026—Towns and County approve final plan • June —Staff submits plans to HUD • June/July—Staff executes Development Agreements with OCPEH and Habitat for Humanity • ORANGE COUNTY • NORTH CAROLINA 6 7 Blake Rosser said the plan has already been through all partner boards for approval and was being 8 considered by the final council that same evening. He said pending approval by the Board,the plan will be 9 submitted to HUD in June, after which development agreements with Habitat for Humanity and the 10 Partnership to End Homelessness will be executed so that fund disbursement can begin. 11 12 A motion was made by Vice-Chair Fowler, seconded by Commissioner Carter, to approve the 13 Annual Action Plan, a resolution authorizing the Orange County FY 2026-27 Home Design Program, and to 14 authorize the Chair to sign said resolution, and a resolution authorizing the submission of the FY 2026-27 15 Annual Action Plan for Orange County, North Carolina. 16 17 VOTE: UNANIMOUS 18 19 7. Reports 20 None. 21 22 8. Consent Agenda 23 24 A motion was made by Vice-Chair Fowler, seconded by Chair Hamilton, to approve the consent 25 agenda. 26 27 VOTE: UNANIMOUS 28 29 22 1 a. Minutes for April 16, 2026,April 21,2026,and April 30, 2026 2 The Board approved the minutes for the April 16, 2026, April 21, 2026, and April 30, 2026 Board of 3 Commissioners Meetings. 4 b. Updated Tax Collector's Partial FY 2025-26 Settlement for July 1, 2025 through March 31, 2026 5 The Board: 6 1) Received an updated Tax Collector's partial settlement on current and delinquent taxes for Fiscal 7 Year 2025-2026 through March 31, 2026, based on the retirement of Tax Administrator Nancy 8 Freeman as of March 31, 2026; and 9 2) Considered approving and authorizing the Chair to sign the resolution for the accounting thereof. 10 c. Refund Request for Overpayment of Excise Tax for Attorney Kendall Page's Office 11 The Board approved a refund for overpayment of excise tax in the amount of $1,458, with the refund 12 check, if approved, being issued to Alexandra Elder based on the funds originally coming from her personal 13 account. 14 d. Renewal of Health Services Agreement with Southern Health Partners for Medical Services at the 15 Orange County Detention Center 16 The Board approved a renewal of the Health Services Agreement with Southern Health Partners for 17 medical services at the Orange County Detention Center. 18 e. Emergency Medical Services (EMS)Week Proclamation 19 The Board approved a proclamation recognizing the week of May 17-23, 2026, as EMS Week in Orange 20 County, highlighting First Responders for their amazing work throughout the year. 21 f. Heat Awareness Week Proclamation 22 The Board approved a proclamation declaring May 18-22, 2026, as "Orange County Heat Awareness 23 Week" 24 g.Approval of Household Hazardous Waste Contract 25 The Board approved the Department of Solid Waste Management entering into a Household Hazardous 26 Waste Contract with Tradebe Environmental Services, LLC for an initial five-year term and two (2)optional 27 two-year extensions. 28 h. Fiscal Year 2025-26 Budget Amendment#10 29 The Board approved budget, grant, and capital project ordinance amendments for Fiscal Year 2025-26. 30 i. Declaration of Easements and Restrictive Covenants for the Crisis Diversion Facility 31 The Board approved a Declaration of Easements and Restrictive Covenants between Orange County and 32 Capkov Ventures, Inc.for the Crisis Diversion Facility, and authorized the Chair to sign the document upon 33 final review by the County Attorney. 34 j. Emergency Access Easement to Connect Lake Orange Road with Lake View Drive 35 The Board approved an emergency access easement that permits Emergency Services vehicles to cross a 36 property that connects Lake Orange Road with Lakeview Drive, and authorized the Chair to sign the 37 easement document upon final review by the County Attorney. 38 k. Boards and Commissions—Appointments 39 The Board approved the Boards and Commissions appointments as reviewed and discussed during the 40 May 12, 2026 Work Session. 41 42 9. County Manager's Report 43 Travis Myren provided a reminder of upcoming budget work sessions. He said the May 21, 2026 44 budget work session will cover fire districts, public safety, and human services, and will also include 45 information on the education funding implications of the state's proposed 8% teacher raises, assuming 46 that legislation moves forward, as well as approximately six staff budget amendments reflecting new 47 information received since the budget was introduced. He said the May 26, 2026 work session will cover 48 support services, general government, and community services, and that the May 28, 2026 session will 23 1 include the Budget and Capital Investment Plan public hearing and a review of upcoming Boards and 2 Commissions appointments. 3 4 10. County Attorney's Report 5 John Roberts said several legislative bills are still coming in and he will provide a report later in the 6 week. He said a regulatory reform bill appears to be moving through the General Assembly and that it has 7 prompted enough concern among county attorneys statewide to convene a working group to discuss its 8 implications. He said a meeting of county attorneys is scheduled for Friday, and he will send a report to 9 the Board once he has more details. 10 11 11. Appointments 12 None. 13 14 12. Information Items 15 16 • May 5, 2026 BOCC Meeting Follow-up Actions List 17 • Memorandum Regarding Orange County Food System Assessment 18 • Memorandum Regarding Financial Report- FY 2025-26 Third Quarter 19 20 13. Closed Session 21 None. 22 23 Adjournment 24 25 A motion was made by Vice-Chair Fowler, seconded by Commissioner Bedford, to adjourn the 26 meeting at 8:15 p.m. 27 28 VOTE: UNANIMOUS 29 30 Jean Hamilton, Chair 31 32 33 Recorded by Tara May, Deputy Clerk to the Board 34 35 Submitted for approval by Laura Jensen, Clerk to the Board Attachment 4 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUDGET WORK SESSION 5 May 21, 2026 6 7:00 p.m. 7 8 The Orange County Board of Commissioners met for a Budget Work Session on Thursday, May 21, 2026, 9 at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC. 10 11 COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners 12 Marilyn Carter,Jamezetta Bedford, Sally Greene, Earl McKee and Phyllis Portie-Ascott 13 COUNTY COMMISSIONERS ABSENT: None 14 COUNTY ATTORNEYS PRESENT: John Roberts 15 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and 16 Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) 17 18 Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners were present. 19 20 The Board reviewed and discussed FY 2026-27 recommended fire districts and recommended 21 departmental budgets. 22 23 BACKGROUND: The County Manager presented the FY 2026-27 Recommended Operating Budget at the 24 Board's Business meeting on May 5, 2026. Since then, the Board has conducted one public hearing to 25 receive residents' comments regarding the proposed funding plan. At the May 14, 2026 Budget Work 26 Session, the Board discussed recommended FY 2026-27 budgets for Chapel Hill-Carrboro City Schools 27 Board of Education, Orange County Schools Board of Education and Durham Tech Community College. 28 29 This budget work session offers the Board an opportunity to review and discuss the recommended budgets 30 for the fire districts and County departments. 31 32 Functional Leadership Teams: 33 The following Functional Leadership Teams are scheduled to attend the budget work session: 34 35 Public Safety: 36 0 Courts 37 • Criminal Justice Resources 38 0 Emergency Services 39 • Sheriff 40 • Non-Departmental 41 42 Human Services: 43 • Aging 44 • Alliance Health 45 • Child Support Services 46 • Civil Rights & Civic Life 47 0 Health Department 2 1 • Housing Department 2 • Library Services 3 • Social Services 4 • Opioid Settlement Fund 5 • Non-Departmental 6 7 1. FY 2026-27 Fire Districts'Tax Rates 8 9 Travis Myren made the following presentation: 10 11 Slide#1 ORANGE COUNTY NORTH CAROLINA Budget Work Session #2 Fire Districts, Education, Public Safety, and Human Services May 21 , 2026 Board of Orange County Commissioners 12 13 14 Slide#2 County Fire Tax District Map C D 9E Rlv 12 Fire Tax Districts • 4 of 12 Fire Districts Requested Tax Rate Increases .OR GE R R L Total FY2026-27 Recommended Fire District Expenditures-$12,162,693 EN Increase of$1,069,908 over -AM FY2025-26 AN E G D E N OP C, HILL .7 RD 3 G U H';U TrREATER CHAPEL HILL ORANGE COUNTY 15 U- S.y RNTRIANGLE NORTH CAROLINA - 3 1 Slide#3 Fire District Tax Rates • Four of Twelve Fire Districts Requested Tax Rate Increases Taxing District Mr-FY 2026 Tax Rate Requested Increas, 2027 Request Pp.-t Pi 11,Home per You $400,000 Home - ' f increase on Fire District Total Tax,CEDAR GROVE FIRE 7.54 7.54 $301.60 CHAPEL HILL FIRE 11.50 - 11.50 - $460.00 DAMASCUS FIRE 10.20 1.30 11.50 $52.00 $460.00 EFLAND FIRE 8.38 - 8.38 - $335.20 ENO FIRE 8.71 2.00 10.71 $80.00 $428.40 LITTLE RIVERICALDWELL FIRE 5.35 1.00 6.35 $40.00 $254.00 NEW HOPE FIRE 12.50 - 12.50 - $500.00 ORANGE RURAL FIRE 9.21 9.21 $368.40 ORANGE GROVE FIRE 7.00 - 7.00 - $280.00 SOUTH ORANGE FIRE 8.17 - 8.17 - $326.80 SOUTH TRIANGLE FIRE 10.20 1.3 11.50 $52.00 $460.00 W HITE CROSS FIRE 14.00 14.00 $560.00 3 ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#4 Fire District Recommendations Recommended Fire District Tax Rates and Revenue $3,000,D00 16.00 14.OD 14.00 $2,500,000 91< 12.50 50 -.11.50 12.00 „ -10.71 11.50 $2.000,Dp0 a 9.21 10.00 FY2026-27 Tax Revenue � 9 v $1.500,D00 8.38 7.00 8.17 8.00 q 7.54 1. 6.35 8.pp E -FV2026-27 R-T.X u $1,000,D00 0 Rate 4.00 $500,DO0 2.00 • A 5 4Go 41 .cfi Sam Yee 9� 4 ORANGE COUNTY NORTH CAROLINA 5 6 7 4 1 Slide#S Fire District Recommendations • District Requests— page 175-178 • Damascus/Southern Triangle — 1.30 cent increase over FY2025-26 — Service provided to both districts by North Chatham Fire Department — Maintain service reliability as they experience sustained growth • Eno Fire District — 2.00 cent increase over FY2025-26 — Hire a fourth 24-hour paid staff member to improve response times and maintain coverage — Continue to replace outdated fire equipment • Little River/Caldwell Fire District — 1.00 cent increase over FY2025-26 — Paid part time personnel — Increase capacity to service loan for a new fire engine 5 ORANGE WrH COUNTY 2 3 Commissioner McKee asked that departments try to keep tax rate increases low in the future to 4 help residents continue to afford to live in the county. He said cumulative tax increases make it difficult 5 on residents. 6 7 2. Discussion of County Departments' FY 2026-27 Recommended Budgets 8 9 Travis Myren made the following presentation: 10 11 Slide#6 Education State Budget Update ORANGE COUNTY 6 NORTH C=AROLINA 12 5 1 5lide#7 Education State Budget Changes • Education — page 159 • Leadership in the General Assembly announced an agreement on high points of a State budget — 8%average wage increase for teachers (front-loaded for newer teachers);. not retroactive — 3%for other employees; not retroactive — Bonuses for all in FY2025-26; bonuses for teachers in FY2026-27 • 8% raise covers both FY2025-26 and FY2026-27 — Current Expense increase provided to districts in FY2025-26 (3%)counts toward funding the wage increase in addition to the 2.5% Current Expense increase in the Manager's Recommended Budget ORANGE COUNTY 7 NORTH CAROLINA 2 3 4 5lide#8 Education State Budget Changes • Education — page 159 • Districts estimate that continuation budgets would need to increase from 4% as presented in Joint Meeting to roughly 5.5%to fully account for the 8% average wage increase Manager's 2.5%$ 114,114,132 5.0%$ Recommended 3.0%$ 114,667,851 5.5%$ 553,719 3.5%$ 115,224,491 6.0%$ 1,110,359 Continuation Request 4.0%$ 115,781,131 6.5%$ 1,666,999 4.5%$ 116,337,771 7.0%$ 2,223,639 Continuation Increase 5.()%$ 116,894,412 7.6%$ 2,780,280 to Fully Account for Proposed Raises ~ 5.5%$ 117,451,052 8,1%$ 3,336,920 from State a ORoN HCAOUNATY 5 6 7 6 1 Slide#9 Education State Budget Changes • Education — page 159 — Options for Board 1. Commissioner Amendment to increase FY2026-27 Current Expense funding qp Difference from 8%wage Current Expense% Funding Increase Tax Impact Increase 3.0%$ 553,719 0-16$ (2,783,201) 3.5%$ 1,110,359 0.33$ (2,226,561) 4.0%$ 1,666,999 0.49$ (1,669,921) 4.5%$ 2,223,639 0.66$ (1,113,281) 5.0%$ 2,780,280 0.82$ (556,640) 5.5%$ 3,336,920 0.99$ ORANGE COUNTY 9 NORTH CAROLINA 2 3 Commissioner McKee said a tax increase to get to 5.5%would take the total increase to almost 5 4 cents. 5 Commissioner Bedford referred to slide #8. She said she didn't follow the math and asked if 6 retirement affected the final increase needed based on the state's budget. 7 Travis Myren said it would be related to the step increases as well as everything affected by 8 changes in supplements. 9 Commissioner Portie-Ascott said that if someone is living in the Eno fire tax district they would be 10 looking at a 6.75 cent tax increase. 11 Travis Myren said it would be an additional two cents on whatever the county's overall tax rate is. 12 Commissioner McKee added that a resident would also be affected by fee increases. 13 Commissioner Carter asked what the planning assumption was in the Manager's recommended 14 current expense for supplemental increases. 15 Travis Myren said it was 3% in the current year and 2.5% next year. He said the continuation 16 request was 4%. 17 Chair Hamilton said when the school systems have 8% raises, the county covers the supplements 18 and any locally funded positions. She asked what other aspects are affected by salary increases. 19 Travis Myren said fringe benefits. 20 Chair Hamilton said that is for teachers. She asked what percentage is included for classified staff. 21 Travis Myren said 3%. He said outside of current expenses, there are SROs and nurses for which 22 the recommended budget assumed a 3% increase. 23 Chair Hamilton said the recommended budget did not close the gap, even using the old figures. 24 She clarified the amount needed for the state's proposed increase equals a penny on the tax rate. She 25 said another option is to cut other parts of the budget to meet that increase. 26 27 7 1 Slide#10 Education State Budget Changes • Education—page 159—Options for Board 2. Districts use fund balance to finance raises in FY2026-27 — County could provide catch-up funding in FY2027-28 for ongoing cost of raises,or — Districts reduce expenses to adjust to new base salaries on an ongoing basis — Possible Constitutional Amendment to place levy limits on local governments could impair the County's ability to provide additional funding in future budgets ORANGE COUNTY 10 NORTH CAROLINA 2 3 Commissioner Bedford said another option is to not provide pay-go funding and shift it to the 4 operating budget. She asked how that would impact projects. 5 Travis Myren said they would work with the districts to determine how the projects would change. 6 Commissioner Portie-Ascott asked if changes in pay-go would affect school buildings or county 7 projects as well. 8 Travis Myren said the additional $3 million pay-go in the recommended budget is only for school 9 projects. He said there are other pay-go funds for county projects. 10 Chair Hamilton reminded everyone that the school boards decide the amounts of supplements, 11 not the Board of County Commissioners. 12 13 Slide#11 Proposed Staff Operating Amendments As of May 19, 2026 ORANGE COUNTY 11 1 H ( AK()I.INA 14 15 8 1 Slide#12 Proposed Staff Amendments Staff amendments based on new information = $584,606 in expenditure reductions or new revenue equivalent to a tax rate reduction of 0.17 cents Amendment Sponsor SudgetPage Department Amendment General Fund Revenue General Fund Expense General Fund Impact Remove operating expenses and OP-Set Staff 83 AMS Carrboro contribution for 2700 ($13,363) ($31,044) ($17,681) Homestead Road OP-SO2 Staff 232 DSS Increase Medicaid Revenue due to $200,000 $0 ($200,000) State Medicaid Rebase bill Human Decrease costs for Cyber Insurance OP803 Staff 196 due to effectiveness of county $0 ($100,000) ($100,000) Resources cybersecurity investments OP-S64 Staff232 DSS Reduce estimate far County Day Care $D based to FY 26 usage ($100,000) ($100,000) Planning& Reduce Transfer to Inspection fund OP-505 Staff 219&251 Transfers due to better revenue in FY 26.Use $0 ($166,925) ($166,925) Inspection Fund Balance Instead Economic Reduce Visitors Bureau Budget by OP-506 staff 152 Development $200k due to loss of Town of Chapel $0 $0 $0 Hill contri ribution 12 ORANGE lRrH COUNTY 2 3 Commissioner Portie-Ascott asked why there are fewer seats being used for county funded day 4 ca re. 5 Travis Myren said it probably is related to general school enrollment trends,which is impacted by 6 fewer children living in the county. He said the county hasn't used all the county-funded seats in a few 7 years. 8 9 Slide#13 Department Functional Inventories Division Level Analysis of Discretionary Programs ORANGE COUNTY 13 NOR-1714 CAROLINA 10 9 1 Slide#14 How to Read Functional Inventory Slides: Department Name - Division Name e i Revenues generated by the Personnel and Operating expense General Purpose Revenue cost of Division through fees, permits, of the Division the department—funded using tax intergovernmental revenues, etc. revenue General Fund FTEs: Number of staff assigned to the Division Basis for Investment: Either Legal Mandate(Federal, State, or Local), Operational Support(activities necessary to support programs/services), or Board Priority(alignment with Strategic Plan) Programs/Services Provided: • Discretionary programs and services in italics • Legal Mandates and Operational Support not italicized ORANGE COUNTY 14 NORTH CAROLINA 2 3 4 Slide#15 Net General Fund Costs by Division General Fund Support by Division $25,000,000 820,000,000 $15000000 $10,000,000 $5,000A0D l$1 million `-g a m m an d f:-L-m E _ - - = rn I o.` (55 000,000) E aa, E E E E E m a€r a¢a E r m�_tt q `U V `� U N m' °c' U U Q a c N y? LL uJ ` v — Z, n W LL 2 a 14 LL 5 6 Commissioner McKee clarified that the Sheriff's department operates 24 hours a day, 365 days a 7 year. 8 Travis Myren said that is true of a couple of other departments as well. He said that the Sheriff 9 operates the detention center and conducts patrols. 10 10 1 Slide#16 Public Safety Functional Leadership Team Criminal Justice Resource Department Courts Emergency Services Sheriff's Office ORANGE COUNTY 16 NORTH CAROLINA 2 3 4 Slide#17 Courts IFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $191,537 $191,537 General Fund FTEs: 0.00 Basis for Investment: Board Priority: Healthy Community Programs/Services Provided: • Jury Commission • Board&Provisions for Juvenile Justice Detention Services • Juvenile Court/School Liaison • Child Planning Conference Facilitation • Supports minor furniture/capital expenditures for the Courts ORANGE WOORTH CAROLTY YNA 17 5 6 7 8 11 1 Slide#18 Courts - page 136 — Electronic Docket Software for Court Operations- $6,000 — Juvenile Court/School Liaison - $69 — Juvenile Justice Detention Facility Charges • Rate increases from$150 to$165 per day as of 7/1/26 • Budget of$147,350 for FY2026-27 — Sufficient to fund approximately 893 bed days ORANGE COUNTY 18 NORTH CAROLINA 2 3 4 Slide#19 Courts - page 136 Juvenile Justice Facility Charges Number of Admissions and Bed Days 25 Iwo 1,364 1400 20 19 19 1200 y Raise the Age E dire 16 E 12-1-2019 10]0 a 15 6 853 796 - 8W 10 10 ]0 E 501 600 Z 0 44] 5 400 5 274. 224 2 200 10 36 q 0-11. 0 2017-18 2018-19 2019-m 2020-21 2021-22 2022-23 2023-24 202425 2025-26 YTb �#af6edmw —gcfois—Iuveniles 19 ORANGE ORTH CAROL, TY INA N 5 6 Commissioner Carter asked what affects the changes in the graph on slide#19. 7 Travis Myren said the bars count the number of bed days, so depending on charges, you could 8 have someone in the facility for a long time. He said the data depends on the number of detained youth, 9 and the length of time they are in detention. 12 1 Commissioner Bedford clarified that when the raise the age law came into effect, it increased the 2 number of juveniles in juvenile facilities vs. adult detention. 3 Travis Myren said you can see the impact in FY2020-21,where the number of detained youth went 4 up. 5 Chair Hamilton asked who determines the rate for juvenile justice facility charges. 6 Travis Myren said the state. 7 8 Slide#20 Criminal Justice Resource Department FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $881,600 $1,576,762 $695,162 General Fund FTEs: 10.750 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Pretrial Services Diversion and Deflection Programs • Recovery Courts c Adult Pre-Arrest Diversion (OC-PAD) o Adult Drug Court o Youth Deflection Program(YDP) o Family Treatment Court o Lantern Project • Restoration Legal Counsel o Community Care and Diversion Response (CCDR) • Local Reentry Council o Partnership with Housing Department for Street • Clinical Services to support Courts and Detention Center Outreach, Harm Reduction and Deflection Needs (SOHRAD) ORANGE COUNTY 20 NORTH CAROLINA 9 10 Commissioner Greene pointed out that everything CJRD does is discretionary, but it is very 11 important. She shared that it was created when the county was looking at building the new detention 12 facility with the goal of reducing the number of people in the facility. She said it is a point of pride for the 13 county. 14 Commissioner Bedford referred to slide #19. She asked if the numbers could be affected by an 15 individual who was detained for a long time due to a murder charge. 16 Travis Myren said he was not sure in that particular case,but he said the charges detained juveniles 17 are facing are serious. 18 19 13 1 Slide#21 Criminal Justice Resource Department - page 137 — Requesting 2% Increase from ABC Board to Offset Expense Increases • $881,600 in current ABC revenue;held flat in recommended budget • 2%increase or$17,600 would be recognized on a budget amendment if received — No Increase to Nonprofit Service Contracts — Dispute Settlement Center-$107,200 — The Compass Center-$104,700 — Operational Reductions—($9,150) — Personnel Reduction—from 1.0 FTE to 0.5 FTE Local Reentry Case Manager(vacant)—($17,910) • Eighth year of$150,000 annual grant • Grant amount has not changed as personnel costs have increased=either reduce expenses through personnel reduction or increase General Fund subsidy to Local Reentry Program ORANGE COUNTY 21 NORTH CAROLINA 2 3 4 Slide#22 Criminal Justice Resource Department - page 137 Pretrial Services Screenings&Successful Completion Rate 1400 84% — 90% 81% Screening increases are due to 76% 80% legislative changes.lryna's Law 1200 eliminated written promises to 67% 70% appear as a condition of release, 62% and the Pretrial Integrity Act 1000 requires many types of charges be 60% heard by a judge instead of magistrate to set release conditions 900 50% resulting in morejail bed days. 600 40% screen Ings 30% t%of Successful Completions 400 A Successful Completion is 20% achieved when case m resolved without a missed 200 court date or new charges 10% during pretrial supervision 0 0% FY2019-20 FY2020-21 FY2021-22 FY2022-23 Ff2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Budgeted ANGE 22 ORWOORTH CAROLTY YNA 5 6 7 14 1 Slide#23 Criminal Justice Resource Department - page 137 Restoration Legal Counsel/Relief Rate 7000 120% 6000 100% 5000 80% 70% 71% 4000 65% 66% 3%. 53%. 60% 3000 38% 4D% 2000 — 0% 1000 0% FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023.24 FY2024-25 FY2025-26 Ynj FY2026-27 Budgeted *Large number of referrals in FY23-24 and 24-25 and high relief percentage in FY24-25 due to collaboration between DA's office and RLC for mass debt relief. ORANGE COUNTY 23 NORTH CAROLINA 2 3 4 Slide#24 Criminal Justice Resource Department - page 137 Referrals to Deflection and Diversion Programs • OC P—Arrest 518 Diversion(OC-PAD) 506 506 July 2019 500 466 • Street Outreach (SOHRAD)Dec 2020 452 = Youth Deflection 450 Program(YDP)Nov 419 2021 • Lantern Protect 400 Dec 2021 • Community Care and Diversion Response 350 (CCDR)June 2023 300 FY2021-22' FY2022-23' FY2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Budgeted ANGE 24 ORWOORTH CAROLTY YNA 5 6 7 15 1 Slide#25 Criminal Justice Resource Department — page 137 Average Monthly Jail Pretrial Population 120 Iryna's Law Pretrial Integrity Act �ecemtrer October 2023 2025 00 oo 20 --- -- �� 2� r dgmdry on o o ORANGE COUNTY 25 NORTH CAROLINA 2 3 4 Slide#26 Emergency Services Department — Business Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $927,226 $927,226 General Fund FTEs: 4.000 Basis for Investment: Operational Support, Board Priority:Healthy Community Programs/Services Provided: • EMS Records/Customer Service • Administrative Support for the Department • Community EngagementlSpecial Events • Strategic Planning and Direction ONORTH CAROLINAANGE Y 26 5 6 7 16 1 Slide#27 Emergency Services Department — Emergency Management CountyFY 27 Rec. Revenues FY 27 Rec. Expenses Net $17,760 $983,818 $966,058 General Fund FTEs: 7.000 Basis for Investment: Legal Mandate, Operational Support, Board Priority:Healthy Community Programs/Services Provided: • Emergency Services Operations (Response) Logistics/Supply/Fleet • Mitigation &Planning Community Emergency Response Team(CERT) • Hazardous Materials Response/Remediation Emergency Training&Exercises • Emergency Plan Reviews Public Engagement&Education • Public Alert and Warning System (IPAWS) ORANGE COUNTY 27 NORTH CAROLINA 2 3 4 Slide#28 Emergency Services Department — Emergency Medical Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $6,236,097 $11,898,247 $5,662,150 General Fund FTEs: 90.000 Basis for Investment: Legal Mandate, Board Priority:Healthy Community Programs/Services Provided: • EMS Operations • Special Event Coverage • Quality Assurance/Medical Oversite • Post-Overdose Response Team • Continuing Education/Certification Maintenance • Crisis Assistance, Response, and Engagement (CARE) Team • Professional Development • Community Paramedicine • Paramedic Academy 28 ORANGE NTORTH CA COUNTY 5 6 Commissioner Carter asked if the recommended budget anticipated expanding the CARE Team 7 into other parts of the county. 8 Travis Myren said there two teams that are funded. He said it could be a possibility in the future, 9 but the recommended budget does not anticipate adding an additional team. 10 Commissioner Carter asked if any other parts of the county had expressed interest in a CARE Team. 17 1 Travis Myren said there have been discussions with the Sheriff's Office, and they are looking at the 2 best way to deploy the team members throughout the county. 3 Chair Hamilton asked for a reminder of how the CARE team started. 4 Travis Myren said it started with a grant. He said as it ends, Chapel Hill is responsible for funding 5 the clinicians and peer support specialists, and the county is responsible for the community EMTs. He said 6 the county used to fund a person in the 911 call center, but they are not recommending it for the future 7 due to low-call volume. 8 Commissioner Portie-Ascott asked how long the county has had a CARE Team. 9 Travis Myren said two years. 10 11 Slide#29 Emergency Services Department — Fire and Life Safety FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $164,600 $513,587 $348,987 General Fund FTEs: 4.000 Basis for Investment: Legal Mandate, Board Priority:Healthy Community Programs/Services Provided: • Fire Code Enforcement Fire Department Contract Management • Plan Reviews Public Education &Smoke Alarms • Permitting and Inspections • Fire Training Coordination • Fire Investigations ORANGE COUNTY 29 NORTH CAROLINA 12 13 14 18 1 Slide#30 Emergency Services Department G Public Safety Communications FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $4,997,529 $4,997,529 General Fund FTEs: 42.000 Basis for Investment: Legal Mandate, Operational Support, Board Priority:Healthy Community Programs/Services Provided: • 9-1-1 Center Operations Radio Communications Maintenance • Quality Assurance/Medical Oversite • ES Department Technology Maintenance • 911 Technology Maintenance ES Department Website • Professional Development/Certification • 9-1-1 Records ORANGE COUNTY 30 NORTH CAROLINA 2 3 4 Slide#31 Emergency Services - page 164 — Emergency Medical Services Revenue-$607,597 • Rates increased from 175%to 200%of the maximum Center for Medicare and Medicaid Services(CMS)rates-$137,797 • Increase based on call volume-$420,300 — Fee Revenue • Fire Inspection Fees Increase based on Fee Study-$44,000 • Special Event Coverage-$5,500 — Personnel Reduction— 1.0 FTE Recruitment& Engagement Manager-vacant-$94,979 — Contract Services Reductions • Crisis Counselor Contract part of original CARE Team staffing complement-$97,211 • Low call volume- 6 crisis calls per month on average diverted to call center counselor • Position has been vacant for FY2025-26 31 ORANGE WOOR'TH CAROLTY YNA 5 6 Commissioner Carter asked if the low-call volume predates the current fiscal year. 7 Travis Myren said yes. He said Wake County also experienced low-call volume and recommended 8 the same reduction. 9 Commissioner McKee asked for more information on the services provided by EMS and the 10 average cost increase. 19 1 Travis Myren skipped to slide#33 to share the requested information. 2 3 Slide#32 Emergency Services - page 164 — CARE Team Community EMT's-$158,016 • General Purpose Revenue to supplant grant funds — Increase in Medical Examiner costs based on current year projection -$27,867 — Cameras and GeoTabs for Emergency Service vehicles—$9,915 — Adjustments to temporary personnel and overtime-$68,984 — Increase in Medical Supplies and Equipment Maintenance -$33,279 �1 NTY 32 ORANGE NORTH CAROLINA 4 5 6 Slide#33 Emergency Services - page 164 Emergency Medical Services Rate Comparisons Alamance Durham Durham Orange Orange Wake Mecklenburg (Current) (Current) (Recommend) (Current) (Recommend) (Current) (Current) 200%CMS 200%CMS 300%CMS 175%CMS 200%CMS Basic Life Support $1,449.22 $1,194.00 $863.44 $863.00 $1,328.00 $774.59 $885.2 Advanced Life Support 1 $1,449.22 $1,194.00 $1,025.30 $1,025.00 $1,577.00 $919.82 $1,051.2 Advanced Life Support2 $1,449.22 $1,194.00 $1,484.00 $1,484.00 $2,282.00 $1,331.31 $1,521.5 Mileage $17.88 $29.00 $18.30 $18.00 $28.00 $19.18 $21.9 33 ON ORTH CARONGE COUNTY INA 7 8 Travis Myren said the CMS rate is the standard rate that Medicaid and Medicare will reimburse 9 providers. He said the county is allowed to charge above that for people do not have Medicaid and 10 Medicare. 20 1 Commissioner McKee said that this is related to what he said before, that it isn't just the tax rate 2 increases, but its other fees increasing as well. 3 Travis Myren said the county has a fund to help people pay for EMS charges. 4 Chair Hamilton said that insurance companies pay different amounts, and rates are set to capture 5 those that will pay the most. 6 Travis Myren went back to slide#32. 7 Commissioner Carter asked if it was possible that the CARE Team could be funded again through 8 a grant. 9 Travis Myren said there are left-over funds in the current fiscal year, and they've asked if the state 10 will fund the difference. He said he believed using the left-over funds is possible, but they are not certain 11 about the state picking up the rest. 12 Commissioner Bedford asked if merit pay in DSS,the Sheriff's Office,and EMS is treated as a bonus. 13 Travis Myren said any employees on the step program get their merit as a bonus. 14 Commissioner Carter clarified that the step gets added to the base. 15 Travis Myren said that was correct and the merit increase is paid lump sum. 16 17 Slide#34 Emergency Services - page 164 Collection Rates 100M% 90.00% Collection sCaH added in ' FY2025-26 81,60% 80.00% 70.00% 68.01% 60.00% 54.13% 58.29% 60.00% 50.00% 40.00% 30.00% 20,00% 10.00% 0.00% FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Froi FY2026-27 Bud ORANGE COUNTY 34 NORTH CAROLINA 18 19 20 21 1 Slide#35 Emergency Services - page 164 EMS Annual Call Volume f Demand 25.000 23,236 22,396 21.773 21,972 22.192 20,936 20.000 '78,376 15.894 15,000 10.000 5 000 2.4 21.9 15.6 3.6 -9.9 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-26 FY2025-26 P.j FY2026-27 Bud ORANGE COUNTY 35 NORTH CAROLINA 2 3 4 Slide#36 Emergency Services - page 164 Emergency Medical Services Response Times 12:00 11:45 11:31 11*22 11:14 11:62 — 1058 11:00 11:00 10:33 10:04 9:36 9-30 9:15 4:15 9:07 9:07 8:51 8:36 809 7:44 7:12 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Pmj FY202627 Bud ■Overall Average ■Emergent Average ANGE 36 ORWOORTH CAROLTY YNA 5 6 Commissioner Carter thanked staff for the excellent response times in EMS. 7 8 22 1 Slide#37 Emergency Services - page 164 Public Safety Communications Calls Processed 100.000 90,040 90,500 90,000 83;714 84.529 91,070 80,000 79.,455 70,000 60,000 50,000 40,000 30,000 20,000 10,000 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Praj FY2026-27 Bud ORANGE COUNTY 37 NORTH CAROLINA 2 3 4 Slide#38 Emergency Services - page 164 PORT Rate of Induction to Transfer of Care 100% 90% 80% — 70% 60% — 50% 40% — 30% 20% — 10% — 0% 0.1-Dec 2024 Jan-Mar2025 Apr-Jun 2025 Jul-yep 2025 Oct-Dec 2025 Jan-Mar 2026 ANGE 38 ORWOORTH CAROLTY YNA 5 6 7 23 1 Slide#39 Emergency Services - page 164 Mobile Crisis Team (CARE) 9-1-1 Responses 100 95 80 85 2"a CARE Team Added to Serve 83 Carrboro in September 2025 80 74 70 69 60 60 s0 40 35 30 20 10 o — JuLSap2024 Oct,Dac 2024 Jan-Mar 2025 Apr-Jun 2025 JupSap 2025 Qct-Dac 2025 Jan-Mar 2020 ORANGE COUNTY 39 NORTH CAROLINA 2 3 4 Slide#40 Sheriff's Office — page 228 • Jail Revenue Reduction—($300,000) — Due to housing fewer federal inmates. — Average of 8.6 per month in FY2025-26 • Report Copy Revenue Reduction—($300,000) — Due to change in DMV history fee in prior years • Overtime Closer to Actual Expenses-$368,250 — Overtime necessary in any 24 X 7 operation — Detention Center staffing consultant identified overtime benchmark at 10%of salaries • Sheriff Separation Allowance Closer to Actual Expenses-$250,000 • Five positions held unbudgeted— ($440,597) — Positions vacant over 12 months. 4© ORANGE WOORTH CAROL, TY INA 5 6 Commissioner Portie-Ascott asked what the five unbudgeted positions are. 7 Travis Myren said one major and four deputy sheriffs. 8 Vice-Chair Fowler asked for an explanation of the increase for overtime costs in the Sheriff's 9 department. 24 1 Travis Myren said in a 24-hour operation, there will be some amount of overtime. He said a 2 previous consultant made recommendations for detention center staffing patterns. He said they said the 3 industry standard for overtime is 10% of permanent salary costs. He said the recommended budget has 4 overtime at 13.6%, a bit over the standard. He said some of this is related to reimbursable activities,such 5 as patrol for special events, but that overtime is not separated out into categories He said a large part is 6 due to doing business on a 24/7 operation. 7 Commissioner Bedford asked a question related to a CIP project. She asked what the pros and 8 cons are of delaying the new emergency management facility. 9 Travis Myren said he would work with Kirby Saunders to answer that question. 10 Commissioner Bedford asked if progress had been made so that the detention center classrooms 11 can be used. 12 Sheriff Blackwood said all the work has been done, but it hasn't been utilized. 13 Commissioner Bedford she would like to know why. 14 Sheriff Blackwood said he can't answer why it hasn't been utilized. 15 Vice-Chair Fowler said that ORD was to provide the programming. 16 Sheriff Blackwood said yes. 17 Commissioner Bedford said an update later would be helpful. 18 Commissioner Portie-Ascott asked if there are service impacts due to the five vacant positions in 19 the detention center. She asked if it affects the ability of inmates to attend court dates. 20 Sheriff Blackwood said it is his understanding that when the district attorney or representing 21 attorney requests someone come from the detention center, there is a signup sheet, and the 22 transportation division is informed. He said that they are to have the inmate there with a few minutes of 23 the request. He said that is it's not occurring,that is something he needs to know about. He said as far as 24 service impacts, it is affecting the overtime amount. He said they are operating the detention center with 25 52 positions, and they should be at 59. He said other counties are experiencing vacancies as well. He said 26 vacancies are covered through overtime. He said employees at the detention center must be certified 27 detention officers. 28 Commissioner Bedford asked if the crisis diversion facility will help with staffing. 29 Sheriff Blackwood said he can't say at this time, but he added that that it is not possible to run 30 half the detention center with only half of the staff. 31 Chair Hamilton said given the staffing challenges, the only choice is to do overtime. She said the 32 reality is there isn't enough people, and by removing the vacancies, there's more money to put into 33 overtime. She said that it adjusts the budget to reflect what is really happening. 34 Sheriff Blackwood said he and Chief Deputy Sykes identified 19 categories of overtime. He said 35 community events take up a tremendous amount of time, but he is proud that the community feels 36 comfortable calling and asking for help during those events. 37 38 25 1 Slide#41 Sheriff's Office — page 228 Detention Center Population Federal Inmates averaged 8.6 Monthly Averages Per month in FY2025-26 YTD 120 1 100 80 - 60 - - - ■State Serving ■Federal ■Pretrial -00 20 0 Kroh rol ,yy J\1tiroti roti Karo .yti nti a\.�ro �1ti y�. ctiA ti+, ,yes J`.y�, �1�, ti�,a.�o �tiu�tia'tia �,ya ,yp 9�,y5 tib .y5,31h atib 9416 yc A � eg` et' '� A D eT ? �^ � � � a ORANGH RoUNTY LINA2 3 4 Slide#42 Sheriff's Office — page 228 Sheriff Overtime S2,0DD,000 $1,847,023 $1,6DD,DDD $1,6D0,000 $1,533,270 $1,416,009 $1,400,000 $1,294,666 $1,200,000 $1,000,000 $80D.OD0 $710,010 $600,000 $4D0,000 $208,217 $200,000 $- FY 22 Actual FY 23 Actual FY 24 Actual FY 25 Actuals FY 26 To-Date FY 27 Recommend 42 ORANGE WOOR'TH CAROLTY YNA 5 6 7 26 1 Slide#43 Sheriff's Office — page 228 • Matrix Consultant provided an industry standard overtime ratio of 10% of permanent salary costs. Overtime as a Percent of Salary 20.0% 8.4 ,8.07. 16.07. 147% 14.07. 13:0% 13..6% 12.0%. 10.9% ——————————————————— ------------------------------------------- 7.6"/ 8.0 80% 4.0% 2.6% 2.0% 0.0% FY 22 Actual FY 23 Actual FY 24 Actual FY 25 Actuals FY 26 To-Date FY 27 Recommend -Overtime as Percent ---Target ORANGE COUNTY 43 NORTH CAROLINA 2 3 4 Slide#44 Human Services Functional Leadership Team Aging Behavioral Health/Alliance Child Support Civil Rights and Civic Life Health Housing Library Opioid Settlement Fund Social Services ORANGE WOORTH CAROLTY YNA 44 5 6 7 27 1 Slide#45 Human Services Work Group — Human Services Functional Leadership Team Departments plus CJRD,Animal Services — Work Group Objectives • Improve resident experience and ease access to services across departments and services in the community • Identify service gaps,duplication, inefficiencies, opportunities to collaborate, including non-profit partners and outside agencies • Monitor performance measures and outcomes across agencies • Formulate strategies to address gaps and improve efficiency — FY2025-26 Initiatives • Mapping Process Completed; Strategic Planning Discussions Underway • Community Listening after Chantal • Internal Staff Roadshow in January 2026 • Establishing a Crisis Response Team of Human Services Staff to Support Emergency Services, DSS and Health during crises and enhance communication with community • Recommendation to Manager for Communications Specialist _ ORANGE COUNTY 45 NORTH CAROLINA 2 3 4 Slide#46 Department on Aging —Aging Transitions FY 27 Rec. Revenues IFY 27 Rec. Expenses Net County Cost $410,015 $766,404 $356,389 General Fund FTEs: 5.750 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Information, assistance, and options counseling R Place-Caregiver Respite Program • Direct Services-Caregiver Respite, In-home services and Memory Cafes adult day services • Volunteer Driver Program and Transportation Assistance • Caregiver Support and Education • Home Safety Assessments and Durable Medical Equipment Loan Program ORANGE WOORTH CAROLTY YNA 46 5 6 7 28 1 Slide#47 Department on Aging — Central Administration FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $75,000 $487,795 $412,795 General Fund FTEs: 3.000 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Administrative Support for the Department Endless Possibilities Publication Production and Distribution Planning and Coordination of Aging Services Digital Communications Management - Master Aging Plan Leadership and Implementation - Communications Strategy,Accessibility, and Language Access - Support to the Advisory Board on Aging Outreach, Promotion and Administrative Coordination Employment Services to Mature Workers - Compliance with HCCBG standards and monitoring ORANGE COUNTY 47 NORTH CAROLINA 2 3 4 Slide#48 Department on Aging — Community Based Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $518,913 $1,352,941 $834,028 General Fund FTEs: 9.255 Basis for investment: Board Priority:Healthy Community Programs/Services Provided: • Congregate Nutrition Program • Community Outreach and Supportive Services • Education, Special Events,Art and Cultural Programming • Digital Literacy Services • Senior Center Operations ORANGE WOORTH CAROLTY YNA 48 5 6 7 29 1 Slide#49 Department on Aging — Senior Health Coordination FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $126,996 $207,423 $80,427 General Fund FTEs: 1.000 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Health and Wellness Programming • Fit Feet Program • Fall Prevention and Mobility Program • Fitness Studio and Fit Lot Operations ORANGE COUNTY 49 NORTH CAROLINA 2 3 4 Slide#SO Department on Aging — Volunteer Connect 55+ FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $13,750 $256,023 $242,273 General Fund FTEs: 2.500 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Volunteer Program Handy Helpers • Project EngAGE Training Program Commodity Supplemental Food Program • Project EngAGE Resources Teams Mail and Budget Management • Senior Health Insurance Information (SH11P) Friend to Friend Social Isolation Program • Volunteer Income Tax Assistance(VITA) Telephone Reassurance ORANGE WOORTH CAROLTY YNA 50 5 6 7 8 30 1 Slide#51 Aging — page 68 — Community Based Class Fees—($13,500) net decrease in General Fund support • Increase in class fees by approximately 10%to offset a portion of administrative costs-$20,000 • Increase in revenue based on class participation-$30,000 • Increase in associated class expenses-$36,500 — Fit Fee Clinic- $3,775 • Increase in revenue based on class participation-$25,000 • Increase in associated class expenses-$28,775 — Reduction of Office Assistant II (.75 FTE vacant)—($56,589) — Increase Aging in Place In-Home Care- $10,000 • Due to increase in contractor rates 51 ORANGE MrH COUNTY 2 3 Commissioner Greene asked with the increase in class fees and revenue, if the assumption that 4 100%of the people taking the classes will pay the increased fee. 5 Travis Myren said the department sets the fees in a way that they can offer scholarships. 6 Commissioner Greene said this is another department that is totally discretionary, but is very 7 much depended upon and is a leader in the state. 8 9 Slide#52 Aging — page 68 Aging General Fund Support by Division $1,600,D0D $1.41M,000 51,2ng0aD $408,913 $1,000,000 $110,000 $800,000 $1,500 $600,000 $406,715 $7$,090 $406,000 — $834,028 $1.800 1 Mi $200,000 $4. $26,996 3$6,389 $100,000 $242,2.- $ $80,427 4300,AGING CENTRAL ADMINISTRATION 4301>COMMUNMUMED SERVICES 4303-SENIOR HEALTH MORE I NATI ON 4320-AGING TRANSITIONS 4140-VOLUNTEER CONNECT SET •County Contribution -Charges for SeMces -Grants Danatlons 10 31 1 Slide#53 Aging — page 68 223 Total Classes: Department of Aging 28%Fee Based Classes Offered in March 2026 72%No Charge 3s 30 2s 20 is 10 s 0 Art Athlete Cardsantl Games Crafts Educatlon Interest Groups language Orgarizati,..onsand Pertorming Arts Special Events Wellness5pecial Wellness Exercise Wellness Clubs Exerns Irdlvldual5erv1ces ■Fee ■N.ch-lin ORANGE COUNTY 53 NORTH CAROLINA 2 3 4 Slide#54 Aging — page 68 Senior Centers -Unduplicated Participants 14,000 12,061 12,000 10,000 9,149 8,792 8,410 8,6b0 8,000 6,000 6,000 5,332 4,000 3,792 2,861 1,903 2,000 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY 21-22 FY2022-23 FY2023.24 FY2024-25 FY2025-26 Praj FY2026-27 Budget 54 ORANGE WOORTH AROLTY ENA C 5 6 7 32 1 Slide#55 Aging — page 68 Senior Lunch Program Meals Served 50.000 46,333 45,000 40,000 35,000 30,500 30,000 2$,000 27,437 27,755 28 25,643 25,000 20,000 15,000 10,000 5,000 FY2019-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Prnj FY2026-27 Budget 55 ORANGE W-rH COUNTY 2 3 Referring to slide #53, Vice-Chair Fowler asked if the classes provided free of charge are due to 4 volunteers. 5 Janice Tyler, Director of the Department on Aging, said they are conducted by volunteers, or they 6 are grant funded by the Central Pines Area Agency on Aging. 7 Commissioner Bedford asked what the balance is for unspent MAP funds. 8 Janice Tyler said that she didn't know the balance at that moment, but the department plans to 9 spend it down a bit in the next year as they kick off the Master Aging Plan. 10 Travis Myren said the balance is$560,000. 11 Commissioner Bedford said the reason she asked is because of the partition project in the CIP. 12 She asked if MAP funds could be used for the project. 13 Janice Tyler said that they would prefer to not use MAP funds next year, because they need 14 $400,000 to do the MAP. 15 Vice-Chair Fowler asked Janice Tyler why the MAP years overlap. 16 Janice Tyler said it overlaps due to fiscal years. 17 Commissioner Bedford said Janice Tyler was recognized by the state for her work with older adults. 18 Commissioner Portie-Ascott asked what is contributing to the increase in the meal program. She 19 asked if it is due to the increase in food costs. 20 Janice Tyler said that is probably the reason. She said that they have a federal food box program 21 which may end on September 30, and that will result in 350 low-income people not receiving a regular 22 box. She said they may end up at the senior lunch program. 23 Chair Hamilton asked a question about page 72 in the budget document. She asked how 24 attendance is measured. 25 Janice Tyler said those figures are duplicated. She said they are visits. She said that the Passmore 26 Center gets 250-275 a day and the Seymour Center gets 450, which are unduplicated numbers. She said 27 that a person may, in one day, eat lunch, attend an art class, and participate in a fitness class. 28 29 33 1 Slide#56 Alliance Health - page 71 Maintenance of FY 2025-26 Recommended Effort Allocation Budget Managed by Alliance $842,388 Health MCO ($70,000)bottle tax Funding to County $530,925 Departments Total Maintenance $1,373,313 of Effort • No net increase from FY2025-2$ • Caramore Apartments ($17,234)—Reduction in request to align with actuals • Orange Enterprises Contract $5,893—Increase related to staff COLA and operational expenses • UNC Psychiatry Contract $11,341 —First increase since start of contract; reflects actual cost of clinical supervision ORANGE COUNTY 56 NORTH CAROLINA 2 3 4 Slide#57 Child Support Services IFY 27 Rec. Revenues IFY 27 Rec. Expenses Net County Cost $1,754,927 $1,589,103 ($165,824) General Fund FTEs: 13.750 Basis for Investment: Legal Mandate; Priority:Healthy Community Programs/Services Provided: • Establish Paternity and Child Support • Enforce Child Support ORANGE WOORTH AROL, TY INA 57 C 5 6 7 34 1 Slide#S8 Child Support Services - page 108 — Revenue increase-$34,491 • Reimbursement is set at 213 of costs and not capped — Tenable 10 Software-$18,941 net cost • $55,708 operational cost • $36,767 revenue ORANGE COUNTY 58 NORTH CAROLINA 2 3 4 Slide#S9 Child Support Services - page 108 Percent of Cases Under Order 300.00% 80.00% 83.1 85.22% 55.03% 8% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% PY18.-19 FY19-20 rY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY2025-26 Prod FY2026-27 Budge[ ORANGE WOORTH CAROLTY YNA 59 5 6 7 35 1 Slide#60 Child Support Services - page 108 Percent of Current Support Collected 100.00% 90.00% 80.00% 72.47% 73.22% 73.37% 73% 70.56% 70 68.77% .70% 70% 70% 70.00% 60.00% 50.00% 40A0% 30.00% 20.00% 10.00% 0.00% FY19-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY2025-26 Proj FY206-27 Budget ORANGE COUNTY 60 NORTH CAROLINA 2 3 4 Slide#61 Civil Rights and Civic Life FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $779,249 General Fund FTEs: 6.000 Basis for Investment: Legal Mandate, Operational Support, Priority:Healthy Community;Housing for All Programs/Services Provided: • Language Accessibility and Translation Services Veteran Services • ADA Compliance Community Engagement, Education and Outreach • Civil Rights Investigations (Local Ordinance) • Fair Housing (Local Ordinance) ORANGE WOORTH CAROLTY YNA 61 5 6 7 36 1 Slide#62 Civil Rights and Civic Life - page 112 Veterans Services Temporary Personnel - - Increase for temporary personnel $33,586 — Offset by a reduction in operations ($34,642) — Veterans Served • FY2024-25: 461 • FY2025-26 Est: 528 (14.5%increase over prior year) — ADA Communication Trainings • FY25-26: 20 training sessions for County staff ORANGE COUNTY 62 NORTH CAROLINA 2 3 4 Slide#63 Civil Rights and Civic Life - page 112 Housing Discrimination Cases Processed 25 20 1s 15 10 5 5 2 2 0 0 0 FY23-24 FY24-25 Jul-Dec 2025 ■OC Processed ■Referred to HUD 63 ORANGE H OUN cAATY 5 6 Commissioner Portie-Ascott asked how long it takes to process a fair housing case. 7 Paul Slack, Civil Rights and Civic Life Director,said it depends on the case. He said some cases can 8 be processed in a matter of weeks, and some can push 6 months. He said cases can get complicated if 9 they are unable to get all the information in a timely manner from the client. He said some clients are 37 1 unwilling to pursue conciliation efforts,which means the department has to see the case through the end 2 until determination. He said some cases are so complicated that a conciliation scenario is difficult to reach. 3 Travis Myren said the benchmark is 100 days. 4 Paul Slack said that is the benchmark set by HUD. He said that they have a good team right now 5 that is working together to speed up processing time. 6 Commissioner Portie-Ascott asked if fair housing investigations were always in the Office of Civil 7 Rights and Civic Life. 8 Travis Myren said it had been in the Housing Department, and has been in the Office of Civil Rights 9 and Civic Life for two years. 10 Paul Slack added that before it was in Housing, it was in the previous iteration of the Office of Civil 11 Rights and Civic Life. 12 13 Slide#64 Health Department — Health Central Administration CountyIFY 27 Rec. Revenues FY 27 Rec. Expenses Net $441,064 $1,386,310 $945,246 General Fund FTEs: 11.000 Basis for Investment: Legal Mandate; Operational Support Programs/Services Provided: • Budget and Financial Support for the Department • Vital Records • Informatics • Language Services • Compliance &Risk Management ORANGE COUNTY 64 NORTH CAROLINA 14 15 16 38 1 Slide#65 Health Department — Community Health Services CountyFY 27 Rec. Revenues FFY 27 Rec. Expenses Net $941,715 —109- T $2,929,367 $1,987,652 General Fund FTEs: 27.550 Basis for Investment: Board Priority:Healthy Community; Legal Mandate Programs/Services Provided: • Community Health Assessment Health&Behavioral Intervention Program • Child Fatality&Prevention Care Coordination for Children • Family Success Alliance • Formerly Incarcerated Transition (FIT)Program • Newborn/Postpartum Program ORANGE COUNTY 65 NORTH CAROLINA 2 3 4 Slide#66 Health Department — Dental Health IFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $1,613,143 $2,162,603 $549,460 General Fund FTEs: 14.800 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Dental Clinic • Mobile Dental Van ORANGE WOORTH CAROLTY YNA 66 5 6 7 39 1 Slide#67 Health Department — Environmental Health IFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $723,451 $2,153,293 $1,429,842 General Fund FTEs: 18.000 Basis for Investment: Legal Mandate; Board Priority:Healthy Community Programs/Services Provided: • Food&Lodging Inspection/Permitting • On-Site Well&Septic Inspection/Permitting • Bioterronsm Preparedness Program • Healthy Communities/Healthy Homes ORANGE COUNTY 67 NORTH CAROLINA 2 3 4 Slide#68 Health Department — Personal Health FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $1,220,766 $5,517,183 $4,296,417 General Fund FTEs: 42.100 Basis for Investment: Legal Mandate; Board Priority:Healthy Community Programs/Services Provided: • Adult Health/Behavioral Health Primary Care, immunization, Refugee Health • Child Health Medical Nutrition Therapy, Diabetes Education/Prevention • Communicable Disease — STD/HIV,TB Medical Services • Family Planning/Maternal Health • Public Health Laboratory and Lab Contract ORANGE WOORTH CAROLTY YNA 68 5 6 7 40 1 Slide#69 Health Department - page 181 — Increased Medicaid Maximization Fund Utilization - $1,102,986 • $702,986 in increased utilization of funds, partially redirected from capital projects • $400,000 from Interest on Investments — Dental Fee Revenue Increase- $24,393 • Incremental fee increases to match costs — Environmental Health Revenue Decrease-$91,545 • Reduction of septic and well inspections • Changes in state law have allowed for private companies/contractors to conduct septic inspections — Net Personnel Changes: ($356,384) • -1.00 FTE: Environmental Health Well&Septic Position -vacant • -1.00 FTE: Community Services Division Head Position-filled • -1.00 FTE: Finance &Administrative Services Director Position-filled • -1.00 FTE: Communications Manager Position (moved to Community Relations)-vacant _ • +1.00 FTE: Health Deputy Director Position-new ORANGE COUNTY 69 NORTH CAROLINA 2 3 Commissioner Bedford asked if organizational changes should continue despite the fact that the 4 Public Health Director is departing. 5 Travis Myren said that the director will be with the county through July 10, and she prepared the 6 department for the changes. 7 Commissioner Carter asked if the county would have a role in monitoring compliance of septic 8 systems and wells that are inspected by private companies. 9 Quintana Stewart, Public Health Director, said the new law states that private contractors should 10 contact the public health department, but there is short window for that to occur. She said that it's a 11 matter of public record and the county should have the information,which will be available to the public. 12 Chair Hamilton asked who will take over the finance function in the department since the Finance 13 and Administrative Services Director position is moving. 14 Quintana Stewart explained that after evaluating efficiencies, she determined that the 15 department's existing Business Manager is capable of handling budget preparation and financial oversight, 16 with a modest classification upgrade. She said there was redundancy between the Finance and 17 Administrative Services Director and the Business Manager roles, and eliminating the director position 18 along with reorganization of the department provides genuine cost savings without compromising 19 operations. She said that the 2022 reorganization that created the Community Health Services division 20 revealed the need to return certain family home visiting programs with nurses back under nursing 21 leadership, making the current reorganization a correction of that earlier decision. 22 Vice-Chair Fowler asked how the Health Deputy Director would fit in the reorganized department. 23 Quintana Stewart said that hat the Health Deputy Director would split the administrative load with 24 the Health Director and manage six division director reports currently held by the health Director, and 25 absorb functions vacated by the elimination of the Finance and Administrative Services Director and 26 Community Health Services Director positions. 27 28 41 1 Slide#70 Health Department - page 181 Dental Care Patient Visits 9,000 7,215 7,000 6,940 6,924 6,992 fi,506 6,131 6,000 5,650 Whined 5,006 5,003 5,059 Dental 5,000 5,000 Clinic Closed for 4,000 3,940 3,604 Renovation 3,520 3,000 2,000 9,000 FY2013-14 FY2014-15 FY2015-16 FY2616-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 FY2026-27 Pro] Budget ORANGE COUNTY 70 NORTH CAROLINA 2 3 4 Slide#71 Health Department - page 181 Percentage of Medicaid/Health Choice Dental Visits 100% 90% 60% 70% 60% 50% 40% 41% 40% 361 40% 28°6 33% 32% 32% 32% 29% 34% 32% 30% 22% 18% 20% 10% 0% FYZ013d4 FY2014.15 FY2015-16 FY2016-17 FY2017-18 FY2018.19 FY2019.20 FY2020.21 FY2021-22 FY2022-23 FY2023-24 FY2024.25 FY2025-26 FY2026.27 Proj Budget 71 ONORTH CAROANGE COUNTY INA 5 6 7 42 1 Slide#72 Health Department - page 181 Well and Septic Permit Activity 2,000 1,951 4 1,950 ,946 1,900 1,848 1,852 1,838 1,843 1,650 1,807 1,600 1,800 1,750 1,741 1,700 4.846 1,650 1,600 1,550 1,500 1,450 FY2017-16 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Prej FY2026.27 ORANGE COUNTY 72 NORTH CAROLINA 2 3 4 Slide#73 Housing Department — Housing & Community Development Admin FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $1,182,840 $1,182,840 General Fund FTEs: 3.200 Basis for Investment: Board Priority:Housing for AU; Operational Support Programs/Services Provided: • Budget and Finance Support for the Housing Department • Grant Management • Longtime Homeowner's Assistance Program • Community Home Trust Contract • Habitat for Humanity Contract ORANGE WOORTH CAROLTY YNA 73 5 6 7 43 1 Slide#74 Housing Department — Community Development Funding Source FY 27 Rec. Revenues 11 FY 27 Rec. Expenses Net County Cost General Fund - $552,304 $151,930 Community Development $454,995 $593,503 $138,508 Fund General Fund FTEs: 4.150 Basis for Investment: Board Priority:Housing for All Programs/Services Provided: • HOME Awards • HOME Award Management/Oversight • Housing Repair/Rehab Program ORANGE COUNTY 74 NORTH CAROLINA 2 3 4 Slide#7S Housing Department — Homelessness Partnership Funding Source FY 27 Rec. FY 27 Rec. Net County Cost Revenues Expenses General Fund - am $575,461 $575,461 Community $625,874 $1,001,857 $375,983 Development Fund General Fund FTEs: 3.000 Community Development Fund FTEs: 9.000 Basis for Investment: Board Priority:Housing for All Programs/Services Provided: • Orange County Partnership to End Homelessness Permanent Supportive Housing (OCPEH) — Street Outreach, Harm Reduction, and Deflection Bridge Housing (SOHRAD) • Continuum of Care Grants _ — Rapid Rehousing Programs ORANGE COUNTY 75 NORTH CAROLINA 5 6 7 8 44 1 Slide#76 Housing Department — Legal Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $15,000 $823,233 $808,233 General Fund FTEs: 3.000 Basis for Investment: Board Priority:Housing for All Programs/Services Provided: • Emergency Housing Assistance • Eviction Diversion Support ORANGE COUNTY 76 NORTH CAROLINA 2 3 Commissioner Carter said while some of these services are discretionary, there are revenues to 4 offset the expenses. 5 Travis Myren reviewed the revenue sources in Housing. 6 Blake Rosser, Housing Director,said the revenue remaining in Legal Services is related to when the 7 department ran the fair housing program and will not be ongoing. 8 9 Slide#77 Housing Department —Voucher Administration FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $9,041,000 $9,041,000 Housing Voucher Fund FTEs: 6.650 Basis for Investment: Board Priority:Housing for All Programs/Services Provided: • Housing Vouchers • Administration of Housing Vouchers • Landlord Incentives ORANGE COUNTY 77 NORTH CAROLINA 10 45 1 Slide#78 Housing Department - page 192 — Preserving the Long Time Homeowners Assistance Program -$42,511 • $42,511 increase from FY2025-26 based on Manager Recommended Tax Rate increase of 3.75 cents • Total LHA Funding: $420,316 — No change in Nonprofit Contracted Services • IFC Contract for Shelter Services-$274,453 • IFC Contract for Permanent Supportive Housing-$150,000 • Community Home Trust-$308;476 • Habitat for Humanity-$107,500(moved from the Outside Agencies budget) — Personnel Reduction General Fund -($86,512) 1.0 FTE Housing Access Coordinator-vacant — Operational Reductions in the General Fund ($93,990) • $72,087 for Permanent Supportive Housing moved to Partnership to End Homelessness Budget as a substitute for the SOHRAD position reduction ORANGE COUNTY 76 NORTH CAROLINA 2 3 4 Slide#79 Housing Department - page 192 — Partnership Budget • No increase in the municipal or county contributions from FY2025-26 — County Contribution-$375,983 • Removal of 1.0 FTE Street Outreach Specialist(vacant)in the Street Outreach Harm Reduction and Reflection program— ($83,708) • Offset by increase in Permanent Supportive Housing transfer from General Fund,increase in the Bridge Housing Contract, and other operational decreases to keep the partnership budget flat to base — Increase in Housing Choice Vouchers-$404,500 Funding from federal Department of Housing and Urban Development • 80%of the increase represents higher rents(average subsidy increases from$786 to$979 per month) • 672 total vouchers available;640 under lease — HOME Award Increase—$15,097 • Reflects increase in award amount for FY2026-27 79 ORANGE OTH CAROLTY ENA NR' 5 6 Commissioner Portie-Ascott asked if any vouchers are being held vacant on purpose. 7 Blake Rosser said that they have to, because each voucher comes with a certain amount of funding 8 authority. He said in the county's jurisdiction, rents are so high that if they used all the voucher allocation, 9 the county would be way over budget. 10 46 1 Slide#80 Housing Department - page 192 Housing Choice Vouchers Under Lease 700 610 650 540 620 600 500 400 300 200 100 0 FY23-24 FY24-25 FY26-26 Prof FY26-27 Budget The projected decrease in FY2025-26 is to adjust to the end of the ARPA era Housing Vouchers.These vouchers were originally funded until 2030 but were adjusted to expire in 2026. ORANGE COUNTY 80 NORTH CAROLINA 2 3 4 Slide#81 Library Services — Central Library FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $111,477 $2,806,479 $2,695,002 General Fund FTEs: 22.750 Basis for Investment: Board Priority:Public EducationtLearning Community Programs/Services Provided: • Collection Development and Maintenance Provide access to public computers, Wi-F,printing, fax, scanning, and notary services • inter-Library Loan Services(UNC) • Administrative Support for the Department • Circulation and Courier Services • Programing and Outreach for Youth, Teen and Adult Services • Digital Curriculum Development and Instruction ORANGE WOORTH CAROLTY YNA 81 5 6 7 47 1 Slide#82 Library Services Southern Branch Library CountyFY 27 Rec. Revenues IFY 27 Rec. Expenses Net $800 $864,998 $864"198 General Fund FTEs: 8.000 Basis for Investment: Board Priority:Public Education/Learning Community Programs/Services Provided: • Collection Development and Maintenance • Circulation Services • Programing and Outreach for Youth, Teen and Adult Services Provide access to public computers, Wi-Fi,printing, fax, scanning, and notary services ORANGE COUNTY 82 NORTH CAROLINA 2 3 4 Slide#83 Library Services- page 205 — Reduction in Temporary Personnel ($113,759) • Equivalent to 3 Full Time Equivalent Employees - Operational Reductions($20,000) - Maintaining current operating hours ORANGE WOORTH CAROLTY YNA 83 5 6 7 48 1 Slide#84 Library Services- page 205 Library Circulation Physical and Digital Collections 600,000 500,000 400,000 — 300,000 0ig,1a ■Physical 200,000 100,000 I L FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025 26 Proj FY2026-27 Budget ea ORANGE COUNTY 2 3 Commissioner Greene asked how the budget reductions impact operations. 4 Travis Myren said it will impact programming and the courier service but not to operating hours. 5 Chair Hamilton asked what the current operating hours are. 6 Erin Sapienza, Library Director, said the library is open seven days a week, for a total of 64 hours 7 per week. She reviewed the daily schedule. 8 Chair Hamilton asked what the usage is during the day. 9 Travis Myren skipped to slide#87. 10 11 Slide#85 Library Services— page 205 Visits to Main Library 200,00o 184,548 180,000 160,000 140,000 132,980 136,000 140 000 123,860 120,000 100,000 96,438 80,000 62,000 65,791 60,000 4x,000 20,000 FY2018-19 FY2019-20 H2020-21 F 2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Budget ORANGE COUNTY 85 NORTH CAROLINA 12 49 1 Slide#86 Library Services— page 205 Visits to Carrboro Library Resources 140,000 120,000 120,000 114,000 100,000 80,000 •Cyheary 60,000 -Southern 40,000 — Branch •MoOau& 20,000 — FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2922-23 FY2023-24 FY2024-25 FY2025-26 Prof FY2026-27 Budget ORANGE COUNTY 86 NORTH CAROLINA 2 3 4 Slide#87 Library Services— page 205 Average Library Traffic by Day April 1,2025 to March 31,2026 500 450 437 — 424 400 371 393 381 383 — 349 356 350 333 333 — 297 86 300 — 261 250 — 200 150 100 50 — 0 - 5unday .-day Tuesday Wednesday Thursday Friday Saturday .Main .5—liana ANGE 87 ORWOORTH CAROLTY YNA 5 6 7 50 1 Slide#88 OC Library Cardholders Library Services— page 205 a -= Non-Departmental Appropriations—page s , ;�• °•yry - �, �•„' 209 P•,� �ad,a�P 4 . — Municipal Library Contributions a rt • b • Two-year phase out of payment to Town of Ha ••' uh Chapel Hill ••' �y� $310,662 in FY2026-27 ';ytis � $310,661 in FY2027-2$ ••` • `! • Eliminate payment to City of Mebane $700 in FY2026-27 •a ' "�. sruamgEourarar czra Hoaerpormge munry e°urbarr ,.„,,,N 88 rdm im..rr cam rbm �rm um,� �harv�rd„°Ia« oar, 2 3 4 Slide#89 Library Services— page 205 Main Library Card Holders Southern Branch Library Card Holders 14,617 Total 7,733 Total Carrbam Chap.]HIII 2% 4% FHDurham- 0% urham_o% Mebane— 0% Hillsbarough,116, % —_Mebane 2% `Damani o% •Carrboro •Chapel HIII •Hllsbourougn •Mebane •Durham •Unincorporated •Carrboro •Chapel Hill •Hillsbouraugh •Mebane •Durham •Unincorporated 89 ORANGE GCA OUNTNA TY 5 6 Commissioner McKee said the number of card holders at the Southern Branch Library signals the 7 good placement and location of that library. 8 9 51 1 Slide#90 Library Services- page 205 • 2012 Interlocal Agreement — Cooperative interlibrary services or"interoperability" was a central goal of the Interlocal Agreement signed 2012 — Short term objectives were met • Policy alignment and program collaboration • Shared statistical reports — Areas for further interoperability were discussed but not implemented • Single library card • Shared resources • Exchange of materials(courier) • FY2023-24 Library Task Force Recommendations — Phase in of an Access Model to govern County payments to Chapel Hill — Five-year phase-in using projected FY2027-28 as funding target($1,414,933) — Increase ($846,794) spread over five years at$169,359 annually — Task Force Report/Recommendations not approved by the Board of Commissioners ORANGE COUNTY 90 NORTH CAROLINA 2 3 Commissioner Bedford asked if library materials can be requested between the library branches. 4 Erin Sapienza described how patrons can request materials from the two branches of the library. 5 Commissioner Bedford said that should be emphasized to the public in Carrboro. 6 Erin Sapienza said it can be confusing if people have never lived somewhere with a branch library 7 system, but they will work on publicizing the service. She said in the first quarter of the calendar year 8 they've couriered 14,160 materials between the branches. 9 Commissioner Bedford asked how people are notified that they have materials for pickup. 10 Erin Sapienza said patrons receive an email notification and they have six days to pick up the 11 materials. 12 13 52 1 Slide#91 Social Services — Administration FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $340,904 $4,501,219 $4,160,315 General Fund FTEs: 21.000 Basis for Investment: Operational Support Programs/Services Provided: • Administrative Support for Department • Fiscal and Budget Management • Grant Reporting ORANGE COUNTY 91 NORTH CAROLINA 2 3 4 Slide#92 Social Services — Child and Family Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $4,604,336 $9,802,922 $5,198,586 General Fund FTEs: 72.750 Basis for Investment: Legal Mandate, Operational Support; Board Priority-Health Community Programs/Services Provided: • In-Home Aide Services Child Care Subsidy Administration • Community Alternatives Program for Disabled Adults Prevention Services (CAP/DA) • LINKS • Child Welfare Services • Adult Services 92 ORAoN GE�COUNATY 5 6 7 8 53 1 Slide#93 Social Services — Economic Services IFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $7,149,621 $10,625,893 $3,476,272 General Fund FTEs: 98.375 Basis for Investment: Legal Mandate, Operational Support, Priority:Healthy Community, Diverse and Vibrant Economy, Public Education/Learning Community Programs/Services Provided: • Food and Nutrition Services Administration Medicaid Administration • More Than a Job NC(formally Food and Nutrition Services• Work First Employment and Training) • Workforce Innovation and Opportunity Act(WIOA) • Adolescent Parenting Program • Cafe 113 ORANGE COUNTY 93 NORTH CAROLINA 2 3 4 Slide#94 Social Services — Public Assistance FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $104,000 $527,466 $423,466 General Fund FTEs: 0.000 Basis for Investment: Legal Mandate; Priority. Healthy Community Programs/Services Provided: • Temporary Assistance for Needy Families (TANF) Crisis Intervention Program(GIP) Emergency Assistance • Special Assistance to Adults • Low Income Energy Assistance Program(LIEAP) • Aid to Blind • Non-Emergency Medical Transportation • .Emergency Medical Services Assistance(Ambulance Bills) ORANGE WOORTH CAROLTY YNA 94 5 6 7 8 54 1 Slide#95 Social Services — Subsidy FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $489,537 $2,770,540 $2201,00 General Fund FTEs: 0.000 Basis for Investment: Legal Mandate; Priority:Healthy Community Programs/Services Provided: • Child Care Assistance Adoption Assistance • General Assistance Youth Enhancement Fund • Foster Care Board Adult Day Care • Foster Care Training ORANGE COUNTY 66 NORTH CAROLINA 2 3 4 Slide#96 Social Services - page 232 — Revenue decrease in Food and Nutrition — County Child Care decrease—($200,000) Services—($680,891) • Based on estimate of current use rates • Federal Budget Reconciliation Act(HR 1) — FNS Employment and Training Program — Revenue increase for personnel -$145,093 decrease—($75,000) • Position realignment to support Medicaid workload • Based on State plan of action — Personnel decrease for hours for temps— — Contracted Services—$324,915 ($56,638) • Interfaith Council-$100,000 OCIM-$154,915 Soltys-$50,000 — Expenses decrease-($114,094) Diaper Bank-$20,000 • Based on FY26 actuals and grant awards — Equipment, furnishings and routine technology upgrades-$77,190 Budgeted in Social Services to capture 50%of cost through Federal reimbursement ORANGE WOORTH AROLTY ENA 96 C 5 6 7 55 1 Slide#97 Social Services - page 232 Orange County Medicaid Population 25.c0o 2U,06220,020 20,252 20,366 20,362 28406 20,412 20,453 20.682 20,681 2a 858 20,973 21,085 21,292 21,375 21,367 21,415 21,443 21,470 21;495 21.530 21,504 21530 21 421 21.421 21,400 21.343 21,271 21,152 20,000 10,645 15.000 Coco 5.00a ,Vh 0Oe 14-110- amryo-Q.-I Aa,rlila 1a11a y¢ lila Pp91 1 a 1Q1' 2T,1a 1011n ya m�,yh Em,h�ryh Pyti ¢mnh actih j-ti14;0 V,4h oufh aQec1" 1me,e 1.1;"'011, 10 '2 h Medicaid •Medicaid Expansion 97 ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#98 Social Services - page 232 Households Receiving Food&Nutrition Services Monthly Average 10,000 9,000 8,000 7,000 6,053 5,818 5,786 5,932 6,000 - 5,151 5,074 5,162 5,075 4;973 5,000 4616 4600 4,088 - 3,000 2,000 1,000 rY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2.018-19 FY20119-20 FY2020-21 FY2021-22 rY2022-23 FY2023-24 FY2024-25 FY2025-26 FY2026-27 Projected Budget 98 ORANGE WOORTH AROLTY ENA C 5 6 7 56 1 Slide#99 Social Services - page 232 Average Number of Children Served per Month by Federally Funded and County Funded Child Care Subsidy 800 749 726 730 700 630 615 610 616 599 599 600 500 400 300 200 100 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Prof FY2026-27 Budget ORANGE COUNTY 99 NORTH CAROLINA 2 3 4 Slide#100 Social Services - page 232 History of County Funding for Child Care Subsidy $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 2020 2021 2022 2023 2024 2025 2026 To Date 2027 Rec •0dginal Budget •Actuals • RANGE COUNTY 10 NORTH CAROLINA 5 0 6 Commissioner Portie-Ascott requested to go back to slide #98. She asked if people must come 7 into the building for food and nutrition services. 8 Lindsey Shewmaker, Director of Social Services, said people can call and don't have to come in. 9 She said that people seem to be less willing to come to county buildings. She said they are working with 10 the library and the Food Bank of Central and Eastern NC to create opportunities for people to apply for 57 1 benefits off-site. She said they want to create more safe spaces. She said they are trying to figure out 2 ways to go to people rather than them coming to DSS. 3 Chair Hamilton asked if demand has increased at non-profit food banks. 4 Lindsey Shewmaker said she's had lots of these conversations. She noted the increase in 5 congregate meals at the Department on Aging. She described the process for qualifying for food 6 assistance, which can be difficult and not result in much money. She said it may make more sense for 7 those in need to move to a community partner. She said the effect of recent legislation is a move from 8 government as a safety net, resulting in more reliance on community partners. 9 Chair Hamilton asked what the Medicaid population is by township. 10 Lindsey Shewmaker said she would provide that information. 11 Commissioner Bedford said some of the decrease in the childcare subsidy could be due to fewer 12 children living in the county. She asked if some families might be choosing alternative childcare. 13 Lindsey Shewmaker referred to slide #100. She said the drop really happened during the COVID- 14 19 pandemic. She said families may have turned to alternatives to solve childcare needs and a lot of those 15 families haven't returned. She described how county DSS staff manage federal and state dollars to 16 maximize their ability to provide services and hold county funds as emergency sources if needed. 17 Marilyn Carter thanked the Human Services staff for their efforts to recalibrate their budgets to 18 meet funding challenges. 19 Commissioner Bedford asked about the usage of Youth Enhancement Funds for Parks and 20 Recreation. 21 Lindsey Shewmaker said those funds are meant to follow the child. She said the funds can be used 22 for summer camp as well as music lessons or athletic lessons. 23 Commissioner Bedford asked if the children benefitting from the funds are in foster care or are 24 part of a larger pool of eligible children. 25 Lindsey Shewmaker said they come from a larger pool. She said they will verify eligibility for Parks 26 and Recreation, and Parks and Recreation uses their scholarship funds. 27 28 Slide#101 Social Services - page 232 Children in DSS Legal Custody 140 120 tsa 97 100 88 88 86 85 80 80 68 fib 50 40 20 FY2016-17 FY2017-18 FY2018-19 FY2019-20 H2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 H2025-26 Yraj H2026-278udg. ,o, ORANGE COUNTY NORTH CAROLINA 29 30 58 1 Slide#102 Social Services - page 232 Work Participants Gained Employment 120 98 102 100 100 ea 72 68 64 60 60 51 11 49 40 38 19 20 H2012.13 FY1013-14 FY201415 F1201-6 FY2016.17 F-1718 FY2018- FY2019.20 F-021 FY2-22 FYI.-I FY111- %102415 FY1025-16, F1202627 Budget ORANGE COUNTY 102 NORTH CAROLINA 2 3 4 Slide#103 Opioid Settlement Fund — page 215 — Expected to receive a total $12,748,445 over an 18-year period — County will receive $807,783 in FY2026-27 — An additional $193,579 in interest on investments recognized as part of the Recommended Budget • $117,579 from prior years • $76,000 in projected interest for FY2026-27 — $162,729 is budgeted for Community Grants as recommended by the Opioid Advisory Committee • Grant recommendations will be presented to the board at a later date ORANGE COUNTY NORTH CAROLINA 5 6 7 8 59 1 Slide#104 Opioid Settlement Fund - page 215 - Personnel Reduction- 1.0 FTE Harm Reduction Coordinator position to 0.5 FTE. • Position originally created to manage Opioid Settlement Funds through monthly meeting facilitation, annual reporting, and the annual Community grant funding process • These duties can be done as a part-time position this fiscal year • The remaining responsibilities will aligned with the new Behavioral Health Director position, if approved - New Personnel- 1.0 FTE Behavioral Health Director-$39,964 • Budgeted to start April 1St,2027 with$5,000 in operating expenses related to the position • Responsibilities would include- - Operational oversight of the Crisis Diversion Facility and the integration of community services for successful referral and discharge coordination - Management of Opioid Settlement funds,advisory committee,community grant program,and reporting requirements - Contract management and oversight for Maintenance of Effort and Outside Agencies contract serving Behavioral Health needs;reduction of payment to Alliance Health for contract management-$17,000 - Behavioral Health Continuum of Care: development,stewardship,and enhancement to improve equitable access to behavioral health resources. ORANGE COUNTY NORTH CAROLINA 2 3 4 Slide#105 Opioid Settlement Fund - page 215 Opioid Settlement Fund Previously FY26-27 Total Projects Approved Recommend Lantern Project $ 564,059 $ 209,859 $ 773,918 Freedom House $ 316,908 $ - $ 316,908 INC FIT Program $ 168,595 $ 37,059 $ 205,654 County Vending Machines $ 93,000 $ - $ 93,000 SHAC Syringe Exchange Program $ 101,800 $ $ 101,800 Reintegration Support Network $ 40,000 $ $ 40,000 Post-Overdose Response Team $ 582,370 $ 369,185 $ 951,555 Grow Your World $ 20,000 $ $ 20,000 Harm Reduction Coordinator $ 230,804 $ 68,425 $ 299,229 CJRD Clinical Coordinator $ 108,191 $ 114,861 $ 223,052 Piedmont Health $ 50,400 $ $ 50,400 El Futuro $ 50,000 $ $ 50,000 Behavioral Health Director $ - $ 39,964 $ 39,964 Total Allocated $2,326,127 $ 839,353 $3,165,480 Unallocated $2,328,167 $ 162,729 $2,490,896 Total Approved Budget $4,654,294 $ 1,002,082 $5,656,376 ORANGE COUNTY 10 NORTH CAROLINA 5 5 6 7 60 1 Slide#106 Opioid Settlement Fund - page 215 - Based on the current recommended budget, a General Fund subsidy will be needed by FY 2031-32. Approved FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 OpioidSettlement FundProjects Through Recommended Projected Projected Projected Projected Projected FY25-26 Starting Balance $ 4,654,294 $ 2,328,167 $ 2,290,896 $ 1,789,261 $ 1,465,048 $ 1,110,576 $ 588,839 Community Organizations $ 579,108 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 New Revenue $ $ 1,002,082 $ 676,979 $ 903,333 $ 924,450 $ 811,131 $ 735,991 Annual Surplus/(Deficit) $ $ (37,271) $ (501,635) $ {324,212) $ (354,472) $ (521,737) $ (653,521) Ending Balance $2,328,167 $ 2,290,896 $ 1,789,261 $ 1,465,048 $ 1,110,576 $ 588,839 $ (64,682) General Fund Subsidy $ $ $ $ $ $ $ 64,682 Opioid Settlement Fund Projects FY32-33 FY33.34 FY34.35 FY35.36 FY36.37 FY37.38 FY38-39 Projected Projected Projected Projected Projected Projected Projected Starting Bala- $ - $ - $ - $ - $ - $ - $ - County Programs Community Organic tions $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000. $ 200,000 New Revenue $ 676,553 $ 535,633 5 503,108 $ 503,108 $ 416,069 $ 300,676 $ 300,676 Annual Surplus/(Deficit) $ (772,435) $ (975,804) $ (1,073,901) $ (1,142,751) $(1,302,083) $ (1,493,384) $(1,573,087) Ending Balance $ (772,435) $ (975,804) $ (1,073,901) $ (1,142,751) $(1,302,083) $ (1,493,384) $(1,573,087) General Fund Subsidy $ 772,435 1$ 975,804 $ 1,073,901 $ 1,142,751 $ 1,302,083 $ 1,493,384 $1,573,087 ORANGE COUNTY 106 NORTH CAROLINA 2 3 4 Slide#107 Non-Departmental Appropriations - page 209 - Community Centers-three percent(3%) Increase from FY2025-26-$9,891 • Rogers Road Community Center Total $111,541 • Cedar Grove Community Center Total $115,289 • Efland Cheeks Community Center Total $112,770 - Social Justice Reserve • $50,000 increase from FY2025-26 to$200,000 - DMV Collection Charge-Reduced by$100,000 based on trends - Fire District Audits-Increase by$40,000 Average cost of audits has increased from$8,000 to$14,000 - Forestry Service-Increase by$13,907 107 ORANGE CA COUNTY YNA 5 6 Commissioner Carter asked if funds were used from the Social Justice Reserve after Tropical Storm 7 Chantal. 8 Commissioner Bedford said they authorized up to$20,000 for bridge funding. 9 Travis Myren said they used the funds for hotel stays. 10 61 1 Slide#108 FY2026-27 Recommended Budget • Questions? ORANGE COUNTY 108 NC3WI-H"RC3LINA 2 3 Commissioner Bedford asked if budget amendments could be highlighted on the website for the 4 public. 5 Chair Hamilton noted the wide variety of services provided by the county and said the Board is 6 committed to continue working on budget issues. 7 The Board reviewed the budget discussions to continue during the following week. 8 9 Adjournment 10 11 A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler, to adjourn the 12 meeting at 9:11 p.m. 13 14 VOTE: UNANIMOUS 15 16 Jean Hamilton, Chair 17 18 19 Recorded by Laura Jensen, Clerk to the Board 20 21 Submitted for approval by Laura Jensen, Clerk to the Board Attachment 5 1 1 DRAFT MINUTES 2 ORANGE COUNTY 3 BOARD OF COMMISSIONERS 4 BUDGET WORK SESSION 5 May 26, 2026 6 7:00 p.m. 7 8 The Orange County Board of Commissioners met for a Budget Work Session on Tuesday, May 26, 2026, at 9 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. 10 11 COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners 12 Marilyn Carter,Jamezetta Bedford,Sally Greene, Earl McKee(arrived at 7:04 pm), and Phyllis Portie-Ascott 13 COUNTY COMMISSIONERS ABSENT: None 14 COUNTY ATTORNEYS PRESENT: Staff Attorney James Bryan 15 COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and 16 Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) 17 18 Chair Hamilton called the meeting to order at 7:00 p.m. All commissioners were present except 19 Commissioner McKee. 20 21 1. Discussion of County Departments' FY 2026-27 Recommended Budgets 22 23 The Board reviewed and discussed recommended departmental budgets. 24 25 BACKGROUND:The County Manager presented the FY 2026-27 Recommended Operating Budget at the 26 Board's May 5, 2026 Business meeting. Since then, the Board has conducted one public hearing on May 27 12,2026 to receive residents'comments regarding the proposed funding plan. At its May 14,2026 budget 28 work session, the Board discussed recommended FY 2026-27 Outside Agencies funding and 29 recommended budgets for Chapel Hill-Carrboro City Schools Board of Education, Orange County Schools 30 Board of Education and Durham Tech Community College. At its May 21, 2026 budget work session, the 31 Board discussed the recommended FY 2026-27 budgets for the Fire Districts, as well as departments in 32 the Human Services and Public Safety functions. 33 34 This work session offers the Board an opportunity to review and discuss the recommended budgets 35 directly with County departments and the Sportsplex within the structure of Functional Leadership Teams, 36 including operations, capital, and department fee schedule change recommendations. 37 38 Functional Leadership Teams: 39 The following Functional Leadership Teams are scheduled to attend this work session: 40 41 Support Services: 42 • Asset Management Services 43 • Community Relations 44 • Finance and Administrative Services 45 • Human Resources 46 • Information Technologies 47 48 2 1 General Government: 2 • Board of County Commissioners 3 • Board of Elections 4 • County Attorney 5 • County Manager 6 • Register of Deeds 7 • Tax Administration 8 9 Community Services: 10 • Animal Services 11 • Cooperative Extension 12 • Environment, Agriculture, and Parks& Recreation 13 • Economic Development, including Article 46 Sales Tax 14 • Visitors Bureau 15 • Planning and Inspections 16 • Solid Waste 17 0 Sportsplex 18 0 Transportation Services 19 20 Kirk Vaughn, Budget Director, made the following presentation: 21 22 Slide#1 ORANGE COUNTY N®RTH CARCJLINA Budget Work Session #3 General Government, Support Services, and Community Services May 26, 2026 Board of ©range County Commissioners 23 24 25 3 1 Slide#2 Capital Investment Plan Scenarios Updated Debt Model Bedford Whitted HVAC Amendment Fowler Pay-Go Amendment Option 1 -Delays to Reduce Taxes in FY 2029 Option 2-Delays to Reduce Total GIP Tax Rate All Amendments to date ORANGE COUNTY 2 NOR-1 H CAROLINA 2 3 Kirk Vaughn said staff updated the debt model since the original CIP submission, reconciling it 4 with the recommended budget, which carried slightly higher figures and correspondingly improved debt- 5 to-revenue metrics. He confirmed that the costs associated with the 2700 Homestead Road project had 6 been removed from the model. He said the table for each scenario includes all debt costs, Pay-Go costs, 7 and general fund revenue ratios across several scenarios. Kirk Vaughn noted that while the full 10-year 8 impact will be shown, the Board's stated goal of delaying rather than eliminating projects made it most 9 useful to focus on the first four years of the model. 10 11 Slide#3 Capital Investment Plan Updated Baseline Debt Model Year DS to GF Debt Tax Rate Pay-Go Tax Revenues Equivalent Rate Equivalent — Reflects Size of Recommended Operating Budget to determine General Fund Revenues 2027 12.50% 2.016 0.891 2028 13.28% 1.026 0.876 — Accounts for Staff Amendment to remove 2700 2029 16.79% 4.456 1.004 Homestead Road Project 2030 18.10% 1.624 2031 17.88% - - Results in Total Debt plus Pay-Go Tax 2032 18.16% 0.06¢ Increases of 11.86 cents through FY2029-30 2033 19.23% 1.624 2034 19.04% 2035 18.18% 2036 17.28% - otal Impact 10.786 2.764 ORANGE COUNTY 3 NOR_"A CAROLINA 12 13 Kirk Vaughn described the baseline scenario as reflecting approximately 11.86 cents in combined 14 debt and pay-go impact, inclusive of the recommended budget's incremental tax increases. 15 4 1 Slide#4 Capital Investment Plan Bedford Amendment Fund part of Whitted HVAC improvements with Year DS to GF Debt Tax Rate Pay-Go Tax Med-Max revenue Revenues Equivalent Rate Equivalent 2027 12.50% 2.014 0.894 — County has$6.4 million in HVAC Projects planned for the 2028 13.28% 1.024 0.874 Whitted Facility from FY2026-27 through FY 2029-30 2029 16.78% 4.444 1.004 — 28%of Whitted is used for the Dental and Medical Clinics and 2030 18.08% 1.614 eligible to be funded with Medicaid Maximization(Med-Max) 2031 17.85% Revenue 2032 18.13% 0.014 2033 19.19% 1.654 — 28%of project cost=$1.8 million of project cost funded using 2034 19.00% - Med-Max revenue 2035 18.15% - - Reduces Med-Max balance in Capital Budget to$10 million 203ota6 17.25% - llmpact 10.744 2.764 — Results in Total Debt plus Pay-Go Tax Increases of 11.84 cents through FY2029-30 V� 4 ORAN GE COUFl I NTY 2 3 Kirk Vaughn reviewed an amendment submitted by Commissioner Bedford,which proposed using 4 a portion of accumulated Medicaid Maximization (Med-Max) revenue to offset a substantial set of HVAC 5 projects at the Whitted Building. Staff determined that approximately 28%of the Whitted facility's square 6 footage is occupied by dental and medical clinics, making that portion eligible for Med-Max funding. 7 Commissioner Carter asked what Med-Max Revenue is. 8 Kirk Vaughn explained that Medicaid Maximization is a state revenue source received for operating 9 certain medical and dental services. He noted that the county has been accumulating this balance over 10 time rather than applying it all to the operating budget, partly in anticipation of the Southern Human 11 Services expansion. With that bucket now considered full, the County Manager's recommended budget 12 already includes redirecting more Med-Max revenue to operations going forward. Drawing down the 13 existing balance for the HVAC project would reduce the Med-Max balance from approximately$12 million 14 to about$10 million over four years. He said the tax rate equivalent impact would be modest — dropping 15 from 11.86 to approximately 11.84 cents. 16 Commissioner Portie-Ascott asked what tax rate equivalent figure means. 17 Kirk Vaughn clarified that it represents the fiscal pressure placed on the operating budget in that 18 year due to debt and Pay-Go obligations.The Board would then determine how to mitigate that pressure, 19 whether through operating reductions or other means. 20 21 Commissioner McKee arrived at 7:04 pm. 22 23 5 1 Slide#5 Capital Investment Plan FowlerAmendment Increase Pay-Go by$3 million in FY2026-27 Year DS to GF Debt Tax Rate Pay-Go Tax and$3.5 million in FY2027-28 Revenues Equivalent Rate Equivalent 2027 12.39% 2.014 1.784 - Increases Pay-Go investment from$3.5 million in 2028 13.15% 1.024 1.024 Recommended FY2026-27 Budget to$6.5 million ° 2029 16.73/0 4.384 - Adds additional$3.5 million in FY2027-28 to achieve$10 2030 17.95% 1.524 million annual target 2031 17.74% 2032 18.05% 0.104 - Reduces impact of tax increase in FY2028-29 as there is no 2033 19.18% 1.704 Pay-Go increase for that year 2034 19.05% 2035 18.19% - Results in Total Debt plus Pay-Go Tax Increases of 11.73 2036 17.29% - cents through FY2029-30 otallmpact 10.734 2.804 ORANGE COUNTY 5 NOR-FI-I CAROLINA 2 3 Kirk Vaughn described Commissioner Fowler's amendment,which proposed accelerating the pay- 4 go phase-in schedule. Rather than phasing in at 3.5, 6.5, and 10 cents over three years, the amendment 5 would move to 6.5 and 10 cents over just two years. He explained that while this would increase the pay- 6 go tax obligation in the current year, it would eliminate a compounding pressure point in FY 2029, where, 7 under the current baseline, a large debt increase and a pay-go increase would coincide. By front-loading 8 the pay-go phase-in, he said the county would also be able to borrow the$300 million bond authorization 9 later,generating a small savings in debt equivalency over the early years. He said this scenario reduces the 10 four-year tax equivalent to 11.73 cents. 11 12 Slide#6 Capital Investment Plan Option 1 Delay FY2027-28 Projects to FY2028-29 Year tGF Debt Tax Rate Pay Tax Revenues ues Equivalent Rate Equivalent - Delays Estes Hills Elementary School Project 1 year 2027 12.50% 2.014 0.894 Design would begin in FY2027-28 and Construction in 2028 13.28% 1.024 0.874 FY2028-29 2029 15.68% 3.234 1.004 • Adds$2 million in inflation that would otherwise go to 2030 16.43% 0.774 High Priority Needs 2031 18.00% 1.934 - Delays four large scale County projects by one year 2032 18.20% 0.324 • Design in FY2027-28 and Construction in FY2028.29 2033 19.35% 1.554 - Affordable Housing 2034 19.12% - Historic Court House 2035 18.27% - - First phase of VIPER Radio System 2036 17.36% - - Emergency Services Headquarters otal Impact 10.834 2.764 - Results in Total Debt plus Pay-Go Tax Increases of 9.79 cents through FY2029-30 ORANGE COUNTY 6 NORTH CAROLINA 13 6 1 Kirk Vaughn presented the first staff-generated option for potential Commissioner amendments. 2 This option focused on delaying projects currently scheduled for construction in Year 2 (with design in Year 3 1) by a single year, with the primary goal of reducing the tax equivalent rate increase in FY 2029. On the 4 school side, this would include delaying the Estes Hills project by one year, resulting in approximately$2 5 million in additional costs due to inflation at a 3% rate. On the county side,four large-scale projects would 6 similarly be delayed one year: Affordable Housing, the Historic Courthouse, the first phase of the Viper 7 radio system, and the Emergency Services Headquarters. He said this option reduces the four-year tax 8 equivalent to 9.79 cents. 9 10 Slide#7 Capital Investment Plan Option 2 Project ---NJ kidginal Year INew Your FY 2027-28 FY 2028-29 Delay Projects throughout CIP Plan Affordable Housing FY 2030-31 FY 2031-32 FY 2033-34 FY 2034-35 — Delays 3 remaining school projects 1 year Central Recreation FY 2030-31 FY 2031-32 Adds$6 million in inflation that would otherwise go to Historic Courthouse FY 2027-28 FY 2028-29 High Priority Needs ES Substations FY 2030-31 FY 2031-32 FY 3035-36 Out of CIP — Delays all tranches of Affordable Housing,the Historic Court House,both VIPER phases,Central Recreation VIPER FY 2027-28 FY 2028-29 facility,second and third ES Substation all out 1 year. FY 2029-30 FY 2030-31 Emergency Services Headquarters out 4 years, ES Headquarters FY 202728 FY 2031-32 Rogers Road Community Center out 3 years. Rogers Road Community Center FY 2029-30 FY 2032-33 — Results in Total Debt plus Pay-Go Tax Increases of Cedar Grove Storage Wing FY 2029-30 FY 2033-34 9.17 cents through FY2029-30 Convert existing ES Headquarters into Admin building FY 2029-30 FY 2033-34 ORAN GE�COUNTY 11 ROLINA 12 Kirk Vaughn described a second, more aggressive option.This option would not only delay Year-2 13 projects but would also push back large-ticket items in both the school and county CIP plans by one year, 14 and in two specific cases (the Emergency Services Headquarters and the Rogers Road Community Center) 15 would delay those projects by multiple years. Kirk Vaughn explained that those two facilities are not in 16 poor condition currently. He said the Emergency Services project is about expanding into a larger, more 17 secure space and then repurposing the existing facility for county administrative staff. The Rogers Road 18 facility can also continue to serve its current function for an extended period. 19 Commissioner Carter asked for more information on why the Emergency Services and Rogers Road 20 projects would be moved out. 21 Kirk Vaughn clarified that the reason for pursuing those two projects is not driven by the current 22 buildings' condition. He reiterated that the Emergency Services Headquarters expansion is aimed at a 23 capacity and security upgrade, not an emergency replacement.The existing building remains functional. 24 Commissioner McKee asked what would be done with the space vacated when county employees 25 move out of the Revere Road facility. 26 Kirk Vaughn said that staff currently at the Revere Road facility would move to the existing 27 Emergency Services headquarters and then Revere Road would be surplus property available for 28 affordable housing purposes. He said that the property had previously been discussed as a potential site 7 1 for affordable housing. He clarified that this would not be a county-built project and would more likely be 2 offered through the county's grant and land-offer processes. 3 Commissioner McKee said using the property for that purpose would increase overall spending. 4 Kirk Vaughn said that grants and other revenue sources could be leveraged for affordable housing. 5 Commissioner McKee added that converting the property to affordable housing rather than selling 6 it outright would effectively reduce county assets. 7 Kirk Vaughn acknowledged there would be a loss of revenue potential if the Board chose to 8 dedicate the land to affordable housing rather than conducting a fair market sale. He emphasized that this 9 decision would be several years down the road and would be a separate Board discussion at that time. 10 Commissioner Greene said that for years, the central need of nonprofit affordable housing 11 developers has been access to land. She recalled that a couple of years ago, the county went through a 12 process of inventorying all available county-owned land and offering it to nonprofits. She described the 13 Revere Road property as well-situated and said that if the Board was going to remain true to its stated 14 values on affordable housing, it would be an ideal use for that parcel. 15 Chair Hamilton said the immediate task is focused on the next four years and how capital 16 investment timing could be managed to smooth tax rate impacts. 17 Commissioner Carter noted that while the discussion was largely focused on future years, some 18 of the options before the Board would influence the current year's tax rate, depending on which scenario 19 included Pay-Go adjustments for FY 2027. 20 Kirk Vaughn confirmed that only the Pay-Go will impact the tax rate for this year, not capital project 21 timing decisions directly. 22 Commissioner Bedford stated that if the Board intends to delay school projects,the school districts 23 needed to know as soon as possible because those decisions would affect which schools they might close 24 and their overall budget planning. She encouraged commissioners to make thoughtful decisions rather 25 than simply deferring for three years, acknowledging that those decisions would be revisited each year. 26 Chair Hamilton reminded the Board that if any Commissioner wished to submit a budget 27 amendment, the deadline is 10:00 am tomorrow. 28 29 Slide#8 Capital Investment Plan Option 2 Delay Projects throughout CIP Plan Year to GF Debt Tax Rate Pay venues Equivalent Rate Equivalent Tax Rea — Impact on Debt to General Fund Revenue Ratio 2027 12.50% 2.014 0.890 2028 13.28% 1.024 0.874 — Impact on the Tax Rate Equivalent for Debt 2029 15.66% 3.204 1.000 2030 15.91% 0.180 — Impact on Tax Rate for the Pay-Go Phase-In included 2031 16.70% 1.000 in the Manager's Recommended CIP 2032 15.98% 2033 17.01% - 2034 18.52% 2.124 2035 18.57% 0.404 036 17.73% otal Impact 9.931 2.761 ORANGE COUNTY B NC3RFH CAROLINA 30 8 1 Kirk Vaughn said the next option would reduce the four-year combined debt and pay-go tax 2 equivalent to 9.17 cents. He added that even though the same list of projects would still be completed, 3 the delay in their timing reduced total debt issuance over 10 years, keeping the county below the 10-cent 4 debt threshold and maintaining the debt-to-general-fund-revenue ratio below 19% throughout the 5 planning horizon. 6 7 Slide#9 Capital Investment Plan All Current Amendments and Option 2 to delay projects throughout the Plan Year DS to GF Debt Tax Rate Tax Revenues Equivalent Rateto Equivalent — Includes larger reduction proposal,as well as 2027 12.39% 2.014 1.784 Bedford and Fowler amendments. 2028 13.11% 0.994 1.024 2029 15.57% 3.134 — Results in Total Debt plus Pay-Go Tax 2030 15.78% 0.154 Increases of 9.08 cents through FY2029-30 2031 16.53% 0.914 2032 15.80% 2033 16.86% 2034 18.42% 2.274 2035 18.55% 0.424 2036 17.71% - Totallmpact 9.884 2.804 s ORARN HE COUNTY CAROLINA8 9 Kirk Vaughn also noted that if the two previously submitted commissioner amendments (from 10 Commissioner Bedford and Commissioner Fowler) were layered onto Option B, the combined four-year 11 tax equivalent would fall slightly further to 9.08 cents. 12 Kirk Vaughn flagged one additional topic he had been asked to address before moving to the next 13 part of the presentation,which was about deferring or delaying school Pay-Go. If school Pay-Go is reduced 14 significantly over the next seven years, the county would likely need to ask the school districts to scale 15 back their plans. If a commissioner proposed reducing Pay-Go as a one-time measure to fund an ongoing 16 operational expense,that would create a structural deficit the following year unless the Pay-Go reduction 17 was made permanent. He said permanent reduction from the$10 million target could accommodate some 18 operating budget increases without a tax increase but would require a return to school districts to 19 renegotiate the bond plan. He also flagged the risk posed by a potential state constitutional amendment 20 that could cap the percentage by which local governments could increase taxes year over year. If the 21 county were far below its Pay-Go target at the end of the current year and such an amendment passed, it 22 might be very difficult to incrementally increase Pay-Go to reach that target under a new statutory 23 constraint. 24 25 9 1 Slide#10 General Government Functional Leadership Team Board of County Commissioners Board of Elections County Attorney County Manager Register of Deeds Tax Administration ORANGE COUNTY 10 NORTH CAROLINA 2 3 4 Travis Myren continued the presentation: 5 6 Slide#11 Board of County Commissioners FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $960,62,1 $960,521 General Fund FTEs: 3.000 Basis for Investment: Legal Mandate ProgramslServices Provided: • Manage Board of County Commissioners meetings Broadcast of BoCC meetings on cable TV and website • Provide administrative support Support Advisory Board meetings • Records Retention • Support Board of County Commissioners 11 ON ORTH CARONGE COUNTY INA 7 8 Travis Myren noted that the Clerk to the Board is a mandated function. 9 10 1 Slide#12 Board of Commissioners — page 88 Net decrease in operational expenses-($16,901) — Contract Services • Reduction of$24,481 due to change in livestream and cable television provider. — Other Operational Expenses • Decrease totaling($1,250)for Mileage,Meeting Support Supplies,and Advertising. • Increase of$5,830 for Dues,driven primarily by a$4,304 rise in cost for the NC Association of County Commissioners (NCACC)membership • Increase of$3,000 in Departmental Supplies to cover rise in transcription software costs 12 ORANGE W-rH COUNTY 2 3 Travis Myren said that budget changes included reductions in live-stream and cable television 4 provider costs, minor operational reductions, an increase in dues primarily attributable to North Carolina 5 Association of County Commissioners (NCACC) membership costs, and a small increase in department 6 supplies for transcription software. 7 8 Slide#13 Board of Commissioners — page 88 %of contracts posted to document management software withing two weeks of completion —•-Target 100.0% 99.5% 99.0% 98.5% 99.0% 97.5% 97.0% 96.5 Goal:100%of contracts posted to document management software within two weeks of completion 96.0% 95.5% 95X% FY2022-23 FY2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Budget ORANGE COUNTY 13 NORTH C.AROLIIVA 9 11 1 Slide#14 Board of Elections FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost ($110) $1,247,661 $1,247,551 General Fund FTEs: 6.000 Basis for Investment: Legal Mandate Programs/Services Provided: • Conduct all Orange County elections Conduct required list maintenance • Process candidate filings and issue certifications • Recruit and train election officials • Audit and publish campaign finance reports • Process voter registration forms Secure ADA-compliant voting locations • Process and research provisional ballot applications ORANGE COUNTY 14 NORTH CAROLINA 2 3 Travis Myren noted that the Board of Elections is a mandated function. 4 5 Slide#15 Board of Elections : page 91 — Decrease in municipal revenue-($102,490) • Due to one scheduled election in FY2026-27 — Decrease in operations and personnel • Temporary personnel costs to support elections-($212,285) • Operational Expenses -($2,500) * � ORANGE COUNTY 15 11J(7RTH CAROLINA 6 7 Travis Myren said that there is only one scheduled election in FY 2026-27. As a result, revenue 8 collected from municipalities for election services would decrease by $102,000, with a corresponding 9 decrease in operational costs, primarily in temporary personnel. 12 1 Slide#16 Board of Elections — page 91 Voter Registration Processed 100,000 90,000 80,000 70,000 60,000 55,224 50,000 43,191 40,000 30,851 30:409 30,000 30,000 19,708 257 19,644 20.090 20,000 18 10,000 2015 2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ORANGE COUNTY 16 NORTH CAROLINA 2 3 Travis Myren said that the number of voter registrations processed in the current year was on par 4 with comparable non-presidential election cycles, referencing FY 2021-22 as a comparable year at 5 approximately 30,000 registrations. 6 7 Slide#17 County Attorney FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $989,130 $989,130 General Fund FTEs: 4.5 Basis for Investment: Legal Mandate; Operational Support ProgramslServices Provided: • Legal Representation/Advisement for the County • Legal Support for Departments • Contract Drafting and Review 17 ORANGE NOORTH CAROL INA 8 9 Travis Myren said the County Attorney is a mandated function. 10 13 1 Slide#18 County Attorney — page 126 Base budget reduction-$(344 Savings from switching to contracted student intern work Legal Review Completed in<10 Days 100% 90% Staffing levels 60 i impacted review time 70% 60% 50% 40% 30% 20% 10% 0% FY2023-24 FY2024-25 FY2025-26 Proj FY2026.27 8,dget ORANGE COUNTY 18 N0RTH CAROLINA 2 3 Travis Myren reviewed the performance measure, tracking the percentage of legal reviews 4 completed within 10 days or less. He noted that performance was somewhat lower in FY 2025-26 due to 5 temporary staffing level challenges in the office, but was expected to return above 90%in the coming year. 6 7 Slide#19 County Manager—Arts Commission ExpensesPY 27 Rec.ReVentlAS FY 27 Rec. aunty Cost In Visitors 11 Bureau Fund $293,489 $827,961 $534,472 Visitor Bureau Fund FTEs: 3.5 Basis for Investment: Board Priority:Healthy Community, Diverse and Vibrant Economy Programs/Services Provided: • Eno Arts Mill LGSTQ Tween Arts Collective o Art Classes o Ceramic Studio Countywide Art Events o Leased Artist Space UpRoar Summer Art Festival o Special Events Paint It Orange • Youth Programs o Summer Camps o Mini-Camps for Teacher Workdays and School _ Holidays ORANGE COUNTY 19 N"RTH CAR"LINA 8 9 Travis Myren said that the Arts Commission is discretionary and funded through the occupancy 10 tax, appearing in the Visitors Bureau fund. 14 1 Slide#20 County Manager — Budget Office FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $584,641 $584,641 General Fund FTEs: 4.000 Basis for Investment: Legal Mandate, Operational Support Programs/Services Provided: • Operating and capital budgeting • Fiscal oversight and management • Long term financial forecasting • School capital coordination and oversight ORANGE COUNTY 20 NORTH C,AR©LINA 2 3 Travis Myren said the Budget Office is a mandated function. 4 5 Slide#21 County Manager— Manager's Office FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $1,206,755 $1,206,755 General Fund FTEs: 5.000 Basis for Investment: Legal Mandate, Operational Support Programs/Services Provided: • Serves as a liaison between County Commissioners,County Departments and residents • Coordinates day-to-day operations of departments and management of personnel • Oversees the development,presentation and administration of the annual operating budget and Capital Investment Plan • Investigates and develops strategies for improving service delivery Provides the technical and management components for major county endeavors ORANGE COUNTY 21 NORTH CAROLINA 6 7 Travis Myren said that the County Manager is a mandated function. 8 9 15 1 Slide#22 County Manager— Strategic Planning FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $154,362 $164,362 General Fund FTEs: 1.000 Basis for Investment: Board Priority: Countywide Strategic Plan Programs/Services Provided: • Countywide Strategic Plan Tracking, Updating, Reporting • Development, implementation and reporting for Department Level Strategic Plans • Performance Management&Process Improvements t ORANGE COUNTY 22 NORTH CAROLINA 2 3 Travis Myren noted that Strategic Planning is discretionary. 4 5 Slide#23 County Manager— Sustainability FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $353,653 $353,653 General Fund FTEs: 2.000 Basis for Investment: Board Priority:Environmental Protection & Climate Action Programs/Services Provided: • Federally funded energy efficiency and energy burden reduction programs(including EBERP)focused on lowering utility costs for low-income households • Renewable energy and electrification initiatives,including solar installations, EV charging infrastructure, federal Direct Pay rebate coordination,and oversight of federally funded clean energy projects • Community Climate resilience and emergency preparedness initiatives, including heat action planning and resilience hub development • Community Climate Action Grant program supporting community-based greenhouse gas reduction projects Climate Action Plan implementation ORANGE COUNTY 23 NORTH CAROLINA 6 7 Travis Myren said that Sustainability is a discretionary function. 8 9 16 1 Slide#24 County Manager— page 129 — County Manager, Sustainability, Strategic Planning and Budget • Operational Reductions-$13,613 — Arts Commission and Eno Arts Mill • Personnel Reduction-Communications&Outreach Coordinator from 1.0 FTE to 0.5 FTE-($35,896) • Increase in temporary personnel for Administrative Support-$18,305 • Event Planner for large scale events-$70,000 • Operational Reductions-($1,176) • Ceramic Studio-($47,427) - Ceramic Studio Program Revenue-$75,416 — Temporary Personnel for Ceramic Studio Manager-$27,989 — Ceramic Studio Upfit of$20,000 to be covered by additional associated program revenue was approved on Jan 20,2026 Budget Amendment • All expenses funded through Occupancy Tax or other outside revenue • Total Net Cost to Visitor Bureau Fund-$534,472 ORANGE COUNTY 24 NORTH CAROLINA 2 3 Travis Myren said operational reductions across the County Manager's Office, Sustainability, 4 Strategic Planning, and Budget totaled $13,600. In the Arts Commission, a half-FTE was reduced to help 5 address the shortfall in the occupancy tax/visitor's bureau fund. An increase was included for temporary 6 personnel,specifically an administrative support role and an events planner who was brought on mid-year 7 via budget amendment and was now carried forward. Travis Myren highlighted the addition of a ceramic 8 studio as the Arts Commission returns to the Eno River Arts Mill, noting that the revenue generated by the 9 ceramic studio exceeds the cost of the studio manager and generates sufficient funds to cover facility 10 upfitbng. All costs are funded through occupancy tax, donations, or contributions from the Arts Alliance, 11 with a net cost to the Visitors Bureau fund of approximately$534,000. 12 13 17 1 Slide#25 County Manager— page 129 Sustainability Efforts within the County FY2026-27 10-Yr CIP Action Operations Sustainability Division $353,653 Mitigation DEAPR—Soil&Water Division $477,072 Adaptation Planning—Erosion Control Division $719,996 Adaptation Emergency Services-Emergency Mgmt Division $983,818 Adaptation Capital Climate Action Grant $211,110 $2,264,495 Mitigation Neuse River(Falls Lake)Rules—Nutrient Management $175,000 $1,750,000 Adaptation Solar Photovoltaic Systems $2,338,065 Mitigation Vehicle Replacement EV/Hybrid Higher Upfront Costs(average $5,000 costs above gas equivalent) $65,000 $325,000 Mitigation Public EV Chargers $200,000 Mitigation Staff EV Chargers $373,321 $4,279,711 Mitigation Lake Orange-Dam Rehabilitation $4,218,883 Adaptation Lands Legacy $1,000,000 Adaptation Conservation Easements $1,000,000 Adaptation 25 Totals $3,358,970 $17,376,154 2 3 Travis Myren said that this slide responds to a question raised by Commissioner Carter regarding 4 what county investments, both in the operating budget and CIP, contribute to sustainability goals and the 5 Eno Hazard Mitigation Plan. He walked through a list of investments, noting that the first four items appear 6 in the operating budget, while additional amounts are reflected in the 10-year CIP. 7 8 Slide#26 County Manager — page 129 • Budget Amendment#8B approved on April 7t" included funding for Solar installations. Solid Waste Administration Building-$140,333 • Whitted Building-$323,976 Sporlsplex Fieldhouse-$640,789 • Emergency Services Center-$239,923 County anticipates 30%direct pay incentives through the Federal Inflation Reduction Act. • Sustainability efforts are standard policy in capital project development • Energy efficient lighting Water saving plumbing fixtures Electric equipment replacement(parks maintenance,facility maintenance,etc.) Solar installations as budgets allow Geothermal evaluations ORANGE COUNTY 26 NORTH CAROLINA 9 18 1 Travis Myren referenced a budget amendment approved in April that included funding for solar 2 installations at several county facilities, with 30%of those costs expected to be offset through the federal 3 direct pay program, which was part of the Inflation Reduction Act. He noted that the program had since 4 been largely repealed, limiting future availability. He further referenced the county's Sustainable Building 5 Policy, which requires review of sustainability features in all significant repairs, renovations, or new 6 construction. 7 8 Slide#27 County Manager - page 129 Dumber of Class Participants Served at Eno Arts Mill* 1,000 900 878 Boo 800 737 698 700 600 500 400 300 232 200 100 FY2011-22 FY2022 23 rY2023-24 FY2024-25 FY2025-26 P,.j FY2026.27 Budget Classes were offered at alternative Vocations due to flooding at Eno Mill in the summer of 2025 ORANGE COUNTY 27 IV(JR-FFT C:ARQL[NA 9 10 Travis Myren noted that the Arts Commission, despite being displaced from the Eno Arts Mill 11 following Tropical Storm Chantal in the summer of 2025, maintained participation of over 700 class 12 participants and is projecting 800 for the upcoming summer programming season as it returns to the Mill. 13 14 19 1 Slide#28 Register of Deeds FY 27 Rec.Revenues g". a .: $2,024,500 $1,432,679 ($591,821) General Fund FTEs: 12.625 Basis for Investment: Legal Mandate As the Register of Deeds is an elected position,BoCC has authority over budgeted amount and number of authorized positions Programs/Services Provided: • Records Management Public Records and Citizens Services • Record and scan legal documents and maps Provide passport services • Provide certified copies Safeguard official records • Assist with record searches Index documents for public records • Administer Notary Oaths Licensing • Shred records per retention schedule Issue marriage licenses • Create and maintain permanent birth,death and marriage licenses 28 ©NOCAROLINA R-F" AROINA 2 3 Travis Myren said the Register of Deeds is a constitutionally mandated position. 4 5 Slide#29 Register of Deeds — page 225 — Excise Tax Revenue-$50,000 • Increase due to historical trend of excise taxes — Personnel-($28,467) • Net savings from removing a vacant 0.5 FTE Deputy Register of Deeds III position($48,264),offset by a$19,797 increase for temporary employees to archive historical records — Operational Expenses-$5,475 Increase due to small inflationary increases in copier rentals,shredding,microfilm services and dues. ORANGE COUNTY 29 NORTH CAROLINA 6 7 Travis Myren explained that excise tax revenue,which is charged when property is bought or sold, 8 is recognized in this budget, and is driven by both the number of transactions and the price of those 9 transactions. He indicated that staff is not projecting significant growth in excise tax revenue for the 10 coming year due to general economic uncertainty and the potential for cost pressures to moderate real 11 estate market activity.The budget reflects a modest$50,000 increase in projected excise tax revenue. He 20 1 recommended eliminating a vacant half-time position that had been unfilled for an extended period, 2 offsetting that reduction with an approximately $20,000 increase in temporary personnel to continue 3 archiving historic documents, and a small inflationary increase in operational expenses. 4 Commissioner Portie-Ascott asked whether the Governor's recent executive order to promote 5 affordable housing might stimulate new construction activity and affect excise tax revenue projections. 6 She said she thought there was some mention of incentives for counties. 7 Travis Myren said he will look into that and follow up. 8 9 Slide#30 Register of Deeds — page 225 Register of Deeds Revenue $3,500,000 $3.3M $3,OOo.Ooo $2,500,000 $2.5M $2.3M $2.3M $2.2M $2.1M $2.2M $2.1M $2,000.000 $2.OM $2.OM MOM $2.OM $2-OM •Budget •Actuals $1,500,000 $1,000,000 $500.000 $0 2021 2022 2023 2024 2025 2026 Estimate 2027 R- ORANGE COUNTY 30 NORTH CAROLINA 10 11 12 21 1 Slide#31 Tax Administration — Land Records FY 27 Rec. Revenues IFY 27 Rec. Expenses Net County Cost $0 $1,164,1281,1 ;"12$' General Fund FTEs: 9.000 Basis for Investment: Legal Mandate Programs/Services Provided: • Identify,review and approve deeds and land-related documents prior to recordation under the County PIN Ordinance. • Maintain the Geographic Information System(GIS)Enterprise • Implement and administer Road Naming and Addressing Ordinance 31 ORANGE W-rH COUNTY 2 3 Travis Myren said that land records is a mandated function responsible for tracking all parcels and 4 maintaining road name records. 5 6 Slide#32 Tax Administration — Revaluation FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $436,583 $436,583 General Fund FTEs: 3.000 Basis for Investment: Legal Mandate Programs/Services Provided: • Conduct periodic countywide real property reappraisals • Ensure uniform appraisal standards • Create and present the Schedule of Values to the Board of County Commissioners ORANGE COUNTY 32 NORTH CAROMNA 7 8 Travis Myren pointed out that a review had revealed that the county has both a Revaluation 9 Division and an Assessor Division, which functionally perform the same work. He noted this may be a 22 1 legacy of an older statutory structure and said staff would investigate whether consolidating the two 2 divisions would be appropriate. 3 4 Slide#33 Tax Administration — Tax Assessor FY 27 Rec.Revenues FY 27 Rec.Expenses Net County Cost $0 $2,540,874 $2,540,874 General Fund FTEs: 19.000 Basis for Investment: Legal Mandate Programs/Services Provided: • Administer property listing,appraisal,and assessment for Orange County • Review annually at least 118th of all parcels exempted or deferred from taxation • Serve as Clerk to the Board of Equalization and Review ORANGE COUNTY 33 NORTH CAROLINA 5 6 Chair Hamilton asked whether the Revaluation Division,which has three FTEs,operates separately 7 from the Assessor's Division, which has 19 FTEs. 8 Travis Myren confirmed that while the two divisions are named separately, their staff all work 9 together on the same assessment functions, and the distinction is in name only. 10 11 Slide#34 Tax Administration — Tax Collector/Revenue FY 27 Rec.Revenues .1 FY 27 Rec.Expenses Not County Cost $770,805 $1,750,515 $979,710 General Fund FTEs: 13.000 Basis for Investment: Legal Mandate ProgramslServices Provided: • Collect property taxes in accordance with North Carolina law and appraisal standards • Collect and account for all current and delinquent taxes for the County,special districts,and towns • Bill,collect and account for other fees and taxes ORANGE NORTH CAROLINAY 34 12 23 1 Slide#35 Tax Administration — page 247 - Revenue-$54,000 • Increased revenue from Town tax collections based on FY26 tax increase - Reserves Added-$250,000 Funds set aside for positions recommend by tax consultant,GAR Associates,selected by the Tax Assessment Work Group. - Personnel-($81,207) • Reduction for overtime and temps based on end of revaluation and appeals period — Operational Expenses-($4,502) • Reduction across multiple operating lines,including training and development,postage,advertising,office supplies, contract services,and software maintenance. 35 ORANGE NUN RTH CRO AATY 2 3 Travis Myren said Budget changes in the Tax Collector Division include a $54,000 increase in 4 revenue collected from the towns, driven by municipal tax rate increases that raise the collection base on 5 which the county's fee is calculated. A $250,000 placeholder is included for work being done by GAR 6 Associates for the Tax Assessment Work Group.Temporary staffing and overtime are recommended to be 7 reduced, as they were elevated during the revaluation and appeals period. Minor operational reductions 8 were also noted. 9 10 Slide#36 General Government • Assessed Home Value by Tax Jurisdiction — Based on 2025 Revaluation — NCIDOR notice indicates median sales assessment ratio 95.6% Jurisdiction #of Qualified Sales* 2025 Median Assessed Value Median Sales Price" Assessed Value as%of Sale Price Carrboro 40 $S74,350 $600,000 96% Chapel Hill 94 $536,250 $540,500 99% Hillsborough 33 $450,300 $475,000 95% Mebane 24 $348,550 $347,500 100% Orange County 110 $410,4S0 $440,000 93% (unincorporated) "Qualified sales from January 2025 through May 2026 "'Median sale price of Qualified Sales ORANGE COUNTY 36 NORTH CAROLINA 11 12 Travis Myren reviewed a table showing sales ratio data for each jurisdiction in the county,including 13 the number of qualified residential sales, the median assessed value based on the 2025 revaluation, the 24 1 current median sales price, and the resulting sales ratio. He noted that the highest volume of qualified 2 sales was in unincorporated Orange County at 110 transactions, and that this jurisdiction also showed the 3 weakest sales ratio, meaning that current sale prices are outpacing assessed values more there than in 4 other jurisdictions, which is a factor that can trigger revaluation requirements. 5 6 Slide#37 Support Services Functional Leadership Team Asset Management Services Community Relations Finance and Administrative Services Human Resources Information Technologies ORANGE COUNTY 37 N(7RT14 CAROLIWA 7 8 9 Slide#38 Asset Management Services Department -Administration Funding Source FY 27 Rec. FY 27 Rec. Net County Cost :I Revenues Expenses General Fund $1,008,014 $988,087 ($19,927) Debt Service Fund $0 $227,327 $227,327 General Fund and Debt Service FTEs: 8.000 Basis for Investment: Operational Support Programs/Services Provided: Lease and Contract Management Capital Project Management Security Management Room Reservation Management Customer interaction,Set-Up, Tear Down, Administrative Support for Department Troubleshoot 38 ONOACOUNTY 1'40R-FH CROINA 10 11 Travis Myren said the administration division supports the rest of the department's work, including 12 room reservation management,which is a discretionary service that generates some revenue from outside 13 community groups renting county facilities. 14 25 1 Slide#39 Asset Management Services Department - Custodial FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $1,702,712 $1,702,712 General Fund FTEs: 16.000 Basis for Investment: Operational Support Programs/Services Provided: • Facility Cleaning • Contractor Management • Carpet and Floor Care ORANGE COUNTY 39 NORTH CAROLINA 2 3 4 Slide#40 Asset Management Services Department — Facility Maintenance FY 27 Rec. Revenues FY 27 Rec. Expenses L Net County Cost $0 $4,784,654 $4,784,654 General Fund FTEs: 11.000 Basis for Investment: Operational Support ProgramslServices Provided: • Building Repairs • Preventative Maintenance Service • Small Projects and Renovations • Utility Management ORANGE WOORTH CAROLTY YNA 40 5 6 7 8 9 26 1 Slide#41 Asset Management Services G page 83 — Increase in facility rental fee and lease revenue-$33,029 — Accounting Change to move lease payments from Debt Service Fund to General Fund—$410,816 — New building operating costs for Southern Branch Library and Skills Development Center • Security Guard-$93,257 total cost • Custodial services,utilities,building operations-$3,257 • County share of new expenses-$47,119 — One-time Recurring capital funds to replace custodial equipment, furniture, and signage-$96,698 — Building Repairs and Generator Repairs/Service based on trends—$138,907 — Operational Reductions, primarily driven by the reduction in Eno River Parking Deck security guard services—($46,207) ORANGE COUNTY 41 NORTH CAROLINA 2 3 Travis Myren said the recommended budget changes include a small increase in facility rental fee 4 and lease revenue, as well as an accounting change required by updated accounting rules, under which 5 revenue from the well lease and from the Dixon House must now be recognized in the general fund rather 6 than elsewhere. He described new building operating costs for the Southern Ranch Library and Skills 7 Development Center, the largest of which was for a security guard. He explained that security concerns 8 had been identified, particularly around the opening and closing of the Drakeford facility, and that the 9 $47,000 security guard expense had been reallocated from the Eno River Parking Deck, where the need 10 was judged to be less pressing, to the Drakeford. Chapel Hill-Carrboro City Schools would provide a one- 11 time recurring capital contribution offsetting some of that cost. Additional changes included funds for 12 small equipment replacement, building,and generator service costs. He noted a significant recent increase 13 in building repair costs, driven primarily by HVAC failures. He said that the number of generators being 14 maintained by the county has increased as new facilities have come online, though that cost is expected 15 to stabilize. 16 17 27 1 Slide#42 Asset Management Services — page 83 Utility costs $2.000,000 $1.800,000 $299K $1,600,000 $1,400,000 S23$R $296K $1.200,000 $215K $255K $1,000,000 $143K $900,000 $600,000 $400,000 $861K $200,000 - - $0 - FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Froj FY2026-22 Budges .ELECTRICITY •WATER n,NATURALGAS 42 ORANGE COUNTY N 2 3 Travis Myren explained that changes in commercial electricity rate plans were expected to result 4 in modest decreases in electricity costs. 5 6 Slide#43 Asset Management Services — page 83 Total Square Footage Managed by Asset Management Services 1,2W,Ooo 1,000,000 eoo,W 6 6W,W0 400,W 0 zW,WO FY2020.21 FY2021-22 FY2022-23 fY2023-24 F202425 FY2025-26 ORANGE COUNTY 43 NORTH CAROLIlNA 7 8 Travis Myren said that with the addition of the Drakeford facility and a new EMS station,the county 9 now maintains over one million square feet of county-owned space. 28 1 Slide#44 Asset Management Services — page 83 Repair and Generator Costs $800,000 $700,000 $600,000 $809 5500,000 I, 5408,000 5300,000 19 $100,000 5 $100,000 $0 0 -019-20 FY202041 FY2021-22 FY2022-23 FY2023-14 FY202425 FY2025-26 Proj FY2026-27 Budget -BUILDING REPAIRS -GENERATORS -0&GENERATORS ORANGE COUNTY 44 NORTH CAROLINA 2 3 4 Slide#45 Asset Management Services — page 83 %of Work Orders Completed within Time Standards 80% 7 74% 5% 72% 71% 0% 70% — 89 60% 50% 40% 30% 20% 10% — 0% - FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 P.j FY2026-27 Budgeted ANGE 45 ORWOORTH CAROLTY YNA 5 6 7 8 9 29 1 Slide#46 Community Relations FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $654,425 $654,425 General Fund FTEs: 4.000 Basis for Investment: Legal Mandate; Operational Support; Guiding Principal. Communication and Awareness Programs/Services Provided: • Coordinate Responses to Open • Digital and Social Media Management Records Requests Community Engagement and Outreach • Crisis and Emergency Communications • Internal Communications • Public Information • Media Relations ORANGE COUNTY 46 NORTH CAROLINA 2 3 Travis Myren said that Community Relations is primarily a discretionary function, except for 4 coordinating open records request responses,which is a mandated responsibility. 5 6 Slide#47 Community Relations — page 116 — Personnel-$94,979 • Increase due to a 1.0 FTE Communication Specialist position transferred from Health Department — Advertising-$21,785 Increase due to expanded digital,print and radio outreach as the office adds a new staff member and supports more departments directly ORANGE COUNTY 47 NORTH CAROLINA 7 30 1 Travis Myren noted that a Communications Manager position from the Health Department is 2 recommended to move into Community Relations, along with approximately $22,000 in expanded 3 advertising for digital, print, and radio outreach. 4 5 Slide#48 Community Relations — page 116 Social Media Outreach Metrics ww 5000 mno 3 2000 E z000 0 282123 2023.2d 202.4-25 2026.25 2025-26 Pool-kms 202E276udWI —F—b-k —W Mg.. —Y-%b, �NeVdslCile ORANGE COUNTY 48 NORTH C—iROLIWA 6 7 Travis Myren reviewed a chart showing growth in the county's social media following across 8 platforms,with Facebook remaining the strongest platform,followed by the county newsletter, Instagram, 9 and youTube. 10 11 31 1 Slide#49 Finance and Administrative Services —Administration FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost - $1,768,113 $1,768,113 General Fund FTEs: 11.000 Basis for Investment: Legal Mandate; Operational Support Programs]Services Provided: • Annual Comprehensive Financial Report • Accounting and Auditing Services • Payroll,Purchasing,and Accounts Payable • Debt Administration ORANGE COUNTY 49 NORTH CAROLINA 2 3 Travis Myren said that Finance is a mandated function responsible for producing the annual 4 financial report, managing accounts payable and receivable, payroll, debt administration, centralized 5 telephone costs, postage, and stormwater fees charged by municipalities to county-owned facilities. 6 7 Slide#50 Finance and Administrative Services — Central Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost - $976,500 $976,500 General Fund FTEs: 0.000 Basis for Investment: Operational Support Programs/Services Provided: • Centralized Telephone, Postage,and Duplicating Costs for County Departments • Centralized Stormwater Fees for County Departments ORANGE COUNTY 50 NORTH CAROLINA 8 9 10 32 1 Slide#51 Finance and Administrative Services — page 172 — Operational Savings-($16,147) • Reduction in temporary employee costs associated with audit work • Fewer hours needed based on FY2025-26 experience — Increase in audit contracts and other costs to continue-$52,160 • Audit Contract-$15,000 • $31,400 increase in municipal stormwater fees for county properties • Minor dues/certifications increases — Centralized Telephone Reduction -($410,000) • Achieved by eliminating unused AT&T lines and circuits • Further reductions are anticipated as Brightspeed services are reviewed and discontinued,as necessary. ORANGE COUNTY 51 NORTH CAROLINA 2 3 4 Slide#52 Finance and Administrative Services — page 172 • No increase projected for FY2026-27 • Monitor potential impacts from global instability that may lead to increased rates Interest Income $2,500,000 $2.362680 $2.219,323 $2,000,000 $1,809,873 $1,788,661 $1,800,000 $1,500,000 $1,158,576 $1,000,000 $800,469 $798,663 $500,000 $437,172 $17,708 $84,805 $0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 T.-Oa1. 2027 R- 52 ORANGE COUNTY NORTH CAROLINA 5 6 Travis Myren noted that Finance continues to monitor the county's investment portfolio and that, 7 given interest rate uncertainty, projections for investment income had been kept flat. 8 9 33 1 Slide#53 Finance and Administrative Services — page 172 Electronic Payments as Percent of Total Disbursements +04.0% 90.4% 800% lti.i`� � ... Y'4.:. 70.0% 80.0% 50:0% 40.0% 30.0% 20.4°h 10.0% OA% FY23-24 FY24-25 FY25-26 P-j rY26.27 budge( ORANGE COUNTY 53 IV(1RTH CARC)LINA. 2 3 Travis Myren highlighted that 78%of vendor payments are now made electronically, up from lower 4 levels in prior years. 5 Commissioner Portie-Ascott asked whether electronic payments also covered landlords receiving 6 funds through the county's eviction diversion program. 7 Travis Myren said yes, but noted that there are some smaller landlords who do not receive funds 8 this way. 9 10 Slide#54 Human Resources Department— Human Resources FY 27 Rec. Revenues FY 27 Rec.Expenses Net County Cost $0 $1,528,282 $1,528,282 General Fund FTEs: 9.000 Basis for Investment: Legal Mandate, Operational Support Programs/Services Provided: • Human Resources Administration&Compliance • Recruitment,Hiring and Onboarding/Classification and Compensation • Employee Programs and Organizational Development • Unemployment and Employment Risk Administration ORANGE COUNTY 54 NORTH CAROLINA 11 12 Travis Myren said Human Resources is responsible for recruitment, onboarding, employee 13 benefits, and risk management. 34 1 Slide#55 Human Resources Department — Risk Management $0 $2,507,303 $2,507,303 General Fund FTEs: 1.000 Basis for Investment: Legal Mandate, Operational Support ProgramslServices Provided: • Risk Program Administration • Incident and Claims Management • OSHA Regulatory Compliance ORANGE COUNTY 55 NORTH CAROLINA 2 3 4 Slide#56 Human Resources — page 198 — Risk Management • Bonds and Insurance Increase-$58,316 • Worker's Compensation Cost Increases-$151,099 — Premium for Program Management,Audit, Loss Fund for routine claims as required by the insurance company • Worker's Compensation Claims$70,000 • Operational Reduction ($34,655) — Stabilization of unemployment compensation reserve balance-($30,000) — Miscellaneous operational reductions-($4,655) 56 ORANGE CA COUNTY 5 6 Travis Myren noted an annual increase in bonds, insurance, and cybersecurity premiums, as well 7 as a staff amendment recognizing$100,000 in cybersecurity policy savings attributable to the fortification 8 of county systems by IT staff. Workers' compensation costs were increasing by approximately $70,000, 9 partially offset by a $30,000 savings in unemployment compensation reserves. 35 1 Slide#57 Human Resources — page 198 Bonds,insurance,Cyber and Worker's Comp Premiums SIM 000 $1,ezt.7B7 Et�6©oo ;rr>ss,�a9 M AO,000 s1,sa5,b>4�5rs2r.%� 51.909,000 $1,A89,030 $1,387,470 $1X0,000 $1,193,106 51,17"7 $1,OBa,122 $1,000,000 SH0 aw $609,000 - $400 am E?00�m i FY?OFS-19 FY201320 k12020.21 FY?021=22 FY2022.23 FY2023,24 FY202425 FY202S26 Pml FY2026-27 Butlgel N ORANGE COUNTY 57 NORTH CAROLINA 2 3 Travis Myren presented a chart showing how insurance premiums, cyber coverage, and workers' 4 compensation costs have risen over time. 5 6 Slide#58 Human Resources — page 198 Workers Comp Claims s766,989 >o $595,]63 $600,000 60 $500,009 50 e5 $496,666 5460,090 a6 535[,127 330.000 5300,09 $353,661 53&8.764 $270,09 30 $290,000 5178,798 20 L $100,000 10 $- 9 FY 291810 M019�20 M02&21 M021-22 M022-23 MOZ}24 FY202425 M023-26 hal M025-27Mdjd1 --fCJ.— —Claims ORANGE COUNTY 58 NORTH CAROLINA 7 8 Travis Myren described the county's workers'compensation claims management approach,which 9 includes tracking both the number and cost of claims to focus loss prevention strategies on training and 10 safety practices. He noted that while FY 2024-25 saw an above-average claims experience and both the 11 number of claims and their associated costs had returned to lower levels. 12 36 1 Slide#59 Investing in Employees — 2% Wage Adjustment-$1,860,000 - Applies to all employees on payroll as of June 30,2026 Adjustment is also applied to merit awards and 401K contributions — Continuation of Merit Awards -$455,000 ORANGE COUNTY 59 WORTH CAROLINA 2 3 Travis Myren summarized the employee compensation package: a 2% across-the-board salary 4 increase, continuation of merit awards, a temporary suspension of the salary step program, and an 5 increase in the retirement contribution rate. 6 7 Slide#60 Investing in Employees Peer Comparison of Proposed Tax Rate Changes and Wage Adjustments ProposedJurisdiction m0L Fiscal Year W1 Cents per$100 value All L:MPl0Y0eS Compensation Orange County 2026 1.19 2% $561-$1,122 2027 Rec. 3.75(0.85 for Operating) 2% $572-$1,144 2026 0.25 1% 3-4% Wake County 2027 Rec. 2.00 2.5% 1-4.5% Durham County 2026 3.50(2.50 for Operating) 3% 2027 Rec. 2.00 2% 2026 7.04 4% Chatham County 2027 Rec. 0.00 3% 2026 5.80 5% Chapel Hill 2027 Rec. 0.00 4% 2026 9.72 5% Carrboro 2027 Rec. 0.00 2.5% 8 37 1 Travis Myren said that Wake County is proposing a 2.5%across-the-board wage increase, Durham 2 is proposing 2%, Chatham County is proposing 3%, Chapel Hill is proposing 4%, and Chapel Hill-Carrboro 3 City Schools is proposing 2.5%. 4 5 Slide#61 Investing in Employees — Temporary Suspension of the Salary Step Program—($410,000) • Program includes additional wage rate increases based on years of service • Applies to employees of Sheriff's Office,Emergency Services,Social Services • Employees in these Departments will still receive any wage increase approved for all employees — Increase in Retirement Contribution -$570,000 • 15.10%general government employees from 14.35% 17.10%law enforcement officers from 16.10% ORANGE COUNTY 61 NORTH CAROLINA 6 7 8 Slide#62 Investing in Employees — Increase in Health Insurance Costs • 9%rate increase for active employees-$1.3 million — RXSave Card — Spousal Surcharge • Pre-65 and Post-65 Retiree Coverage-$407,236 — Increase due to both rate increase and additional participants — Living Wage Increase -$500,000 Increases from$18.18 to$20.02 per hour Impacts Departments with significant use of Temporary Employees:Solid Waste,Library,DEAPR ORANGE COUNTY 62 NORTH CAROLINA 9 38 1 Travis Myren noted the increase in the county's living wage from $18.18 to$20.02 per hour, at an 2 organization-wide cost of approximately$500,000, as well as changes to employee health insurance plan 3 design aimed at generating savings. 4 5 Slide#63 Investing in Employees — Retention has Improved COUNTYWIDE ANNUAL TURNOVER RATE 30.00`% 2S 00% 20.00% ]5.00% 10:00%. 5.00%. 0.00% FY20.21 MU-22 FY22-23 FY23.24 FY24-24 FY25.26 Prq TOTAL 15.51% 20.49% 14.14% 15.49% 13.82% 11.48% _055 18.06% 20,BB% 17.65% 19.69% 10.53% 13.26% —swift 7.25% 15.44% 5.50% 7.28% 15.18% 8.39% _Eme P.y 5-1— 1636% 21.76% 2660% 19.41% 17.4298 13.43% ©F.ANGE COUNTY 63 NOR-rH C=AROLINA 6 7 Travis Myren noted that overall countywide turnover had declined significantly from 8 approximately 20% in FY 2021-22 to about 11.5%currently. Emergency Services'turnover had fallen from 9 a high of 26.6%in FY 2022-23 to approximately 13%.The Department of Social Services has also improved 10 from just under 20%to approximately 13%, roughly matching the countywide average.The Sheriff's Office 11 is now below the countywide average at 8.4%. 12 Commissioner Portie-Ascott asked about retention rates for surrounding counties. 13 Travis Myren said he doesn't have that information but can request it. 14 15 39 1 Slide#64 Investing in Employees Comparison of Turnover Rate by Department (FY2025 TO FY2026) EMERGENCY SERVICES CRIMINAL JUSTICE RESOURCE DEPARTMENT SHERIFF PLANNING AND INSPECTIONS ENVIRONMENT,AG,PARRS AND REL COMMUNITY RELATIONS ECONOMIC DEVELOPMENT LIBRARY SERVICES i HOUSING CHILD SUPPORT SERVICES OC TRANSPORTATION SERVICES DEPARTMENT ON AGING HEALTH SOCIALSERVICES FLEET SERVICES SOLID WASTE MANAGEMENT TAX ADMINISTRATION REGISTER OF DEEDS INFORMATION TECHNOLOGIES HUMAN RESOURCES ASSET MANAGEMENT SERVICES i FINANCE AND ADMIN SERVICES ANIMAL SERVICES COUNTY MANAGER COUNTY ATTORNEY ❑.E1D% 1.wx 10.W% 3a,0a% 40.00% 5a.oa% 6o Aa% ]a.0il5s So W% 90.00'Y, RFY 2026(3/16/2026)Turnover Rate •FY 7025 Turnuve,Rate 2 3 Travis Myren said that while nearly every department showed improvement, four departments 4 saw slightly elevated turnover in the current year: Transportation Services, Solid Waste, Information 5 Technology,and Animal Services— most of which were attributable to retirements or planned departures. 6 7 Slide#65 Information Technology FY 27 Rec.Revenues FY 27 Rec.Expenses Not County - $7,156,564 $7,156,564 General Fund FTEs: 18.000 Basis for Investment: Operational Support Programs/Services Provided: • Technology Support for Departments • Database Management • Gybersecurity Support • Software Maintenance/Procurement I 65 8 9 40 1 Slide#66 Information Technology— page 202 — Software subscriptions, maintenance and licensing -$368,613 • Increased costs of existing software—Increase of$378,529 • Added ServicsslFeatures for exisling applications—Increase of$303,683 • Decommissioned features and applications—Savings of$185,575 • Savings from pre-paid Multi-year agreements—Savings of$128,024 — Increased temporary personnel to assist with increased IT Help Desk workload-$34,988 ORANGE COUNTY 66 NORTH CAROLINA 2 3 4 Slide#67 Information Technology — page 202 Service Desk Complete 90%of Routine Calls for Service Within 18 Hours 100% 90% 88% 90% 82°% 80% 76% 70% 60% 50% 40% 30% 20% 10% 0% FY23-24 FY24-25 FY25-26 Prol FY26-27 Budget 67 OR OR H C GE COOUNATY 5 6 Travis Myren said the Help Desk's target is to complete 90% of routine calls within 18 hours. He 7 said that performance dipped to approximately 76% in FY 2025-26 but was projected to return to the 90% 8 target next year. 9 Commissioner McKee asked why there was a significant drop from 2024-25 to 2025-26. 10 Robert Reynolds, Chief Information Officer, explained that the decline was primarily driven by the 11 deployment of Microsoft Office 365, which introduced a more complex technology ecosystem across the 41 1 organization, resulting in more technically complex Help Desk tickets. He also acknowledged that the 2 department had been somewhat short-staffed for its size. He expressed confidence that, as the staff has 3 now gained a solid understanding of the Office 365 environment, completion rates should begin 4 recovering. 5 Commissioner McKee said that his question was rooted in the connection between IT 6 responsiveness and the county's ability to communicate with and serve the public. 7 8 Slide#68 Community Services Functional Leadership Team Animal Services Cooperative Extension DEAPR Economic Development(including Visitors Bureau and Article 46) Fleet Services Planning & Inspections Solid Waste Sportsplex Transportation Services ORANGE COUNTY 68 NORTH CAROLINA 9 10 11 Slide#69 Animal Services —Administration FY 27 Rec.Revenues FY 27 Rec.Expenses Net County Cost $0 $1,031,412 $1,031,412 General Fund FTEs: 10.000 Basis for Investment: Operational Support, Board Priority:Healthy Community Programs/Services Provided: • Administrative Support for Department Community Support • Spay/Neuter Voucher Program • Volunteer Program • Foster Program • Rescue Program • Community Outreach and Events ORANGE COUNTY 69 NORTH CAROLINA 12 42 1 Slide#70 Animal Services —Animal Control FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $359,115 $790,713 $431,598 General Fund FTEs: 8.000 Basis for Investment: Legal Mandate; Board Priority.Healthy Community Programs/Services Provided: • Animal Protection • Unified Animal Control Ordinance Enforcement • Cruelty and Neglect Investigations • Community Support • Pet Food Pantry ORANGE COUNTY 70 NORTH CAROLINA 2 3 4 Slide#71 Animal Services —Animal Shelter FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $285,900 $1,439,426 $1,153,526 General Fund FTEs: 13.000 Basis for Investment: Legal Mandate, Operational Support, Board Priority. Healthy Community ProgramslServices Provided: • Animal Adoption Animal Intake,Care,Adoption • Medical Care for Animals in Shelter Community Support • Pet Food Pantry • Community Animal Clinic ORANGE WOORTH CAROLTY YNA 71 5 6 7 8 9 10 43 1 Slide#72 Animal Services - page 77 — Animal Control Revenue—$73,093 decrease in revenue Based on feedback from Towns,fee calculation has been simplified to Cost of Division+Vehicle Replacement+Fuel Costs allocated to each Town and County based on three-year average call volume Reduction in Town revenue due to revised methodology Services provided to Towns on a cost-recovery basis — Community Animal Clinic—$70,746 increase in revenue Began mid-year of FY2025-26 • Additional Revenue-$97,865 Related operational expenses-$27,119 — Personnel Reductions—$133,925 decrease in expense Removal of one vacant 1.0 FTE position(Animal Services Assistant Director)-($132,463) • Reduction in temporary personnel-($1,462) ORANGE COUNT'' 72 NORTH CAROLINA 2 3 Travis Myren said proposed budget changes for Animal Services include a $73,000 reduction in 4 animal control revenue from municipalities, reflecting a decrease in the cost of the animal control division 5 and its corresponding allocation. The community animal clinic, launched mid-FY 2025-26, is generating 6 more revenue than its additional operating costs, producing a positive net impact on the general fund of 7 approximately$70,000. A vacant Assistant Animal Services Director position was eliminated following the 8 vacancy study, saving$132,000, along with a small reduction in temporary personnel. 9 10 Slide#73 Animal Services - page 77 Animal Control Services Responses 10,tlOD 4,000 - &000 2,p00 6,169 6,179 6.322 6.924 5,941 6,D00 46 4,666 5,000 - 4300 3,931 4,919 4,094 - 3,DW 2,D00 1,000 FY2013.14 FY2014.15 FY2015.16 FY2016-17 FYZD17.28 FY20LB-19 FY2019-20 H2020-21 FY2021-22 FY2022.23 FY2023.24 MD24.25 FY2025.26 MD26-27 Proj Budget 73 ORCANG COUNTY 11 44 1 Travis Myren noted that animal control responses have remained very stable at approximately 2 4,500 per year, comparable to 2021 levels. 3 4 Slide#74 Animal Services — page 77 Cruelty and Neglect Investigations 800 — 700 — 600 500 478 479 418. 417 402 382 393 348 383 400 300 244 245 222 200 200 100 0 FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2U17-18 FY2019-19- FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 FY2026-27 Project Budget 74 QRANGE NORTH CAROLINA COUNTY INA 5 6 Travis Myren said that cruelty and neglect investigations are similarly stable. 7 8 Slide#75 Animal Services — page 77 Animal Shelter Admissions 2,500 2,100 2,000 �w 2,000 .rte 1,836 1,767 1,443 1,486 1,590 414_�r3°� 1,196 1'232 1'24 +Cats 1,326 1,375 1,151 1,288 1,237 1,250 " Dogs 1,000 ,Fr 0 Other 1,024 1,007 812 851 500 FY2012-13 F1'2013-1d M01415 FY7ILLS16 FY201E-17 M017-18 FY-19 M0-0 M-1 FYL121-22 FY2022-23 FY2d M FY202425 FY202W6 P2026-27 PmjeR Budget ORANGE COUNTY 75 NORTH CAROLINA 9 45 1 Travis Myren noted that cat admissions to the shelter have increased at a faster rate than dog 2 admissions in recent years. 3 4 Slide#76 Animal Services — page 77 Live Release Rates 100% 96% 95% - 93% 93% 93% 92Y 9 92% 91 2 93% oft 90% 91% 8 8915 88% 85% Cats f D19, —Other 82% 80% 75% 7u% iY2075.16 FY2016.17 FV2017-L8 M01&19 FY1019.20 FY2020.21 111--22 PY2022-23 FY2023-24 FY2024.25 rY2025.26 aro}M026-275090 -46Q— ORANGE COUNTY 76 NORTH CAROLINA 5 6 7 Travis Myren shared that the department has maintained a live release rate of approximately 90- 8 93%. 9 Commissioner McKee asked what animals are included in the "other" category for shelter 10 admissions. 11 Travis Myren responded that it can encompass a wide variety of animals beyond dogs and cats, 12 including pigs, reptiles, and exotic animals. 13 14 46 1 Slide#77 Cooperative Extension Funding Source FY 27 Rec. FY 27 Rec Net County Cost Revenues Expenses' General Fund $18,000 $509,749 $491,749 4-H Fund $35,700 $35,700 $0 General Fund FTEs: Cooperative Extension positions are paid under a contract with University Basis for Investment: Board Priority.Environmental Protection & Climate Action, Public Education/Learning Community, Healthy Community ProgramslServices Provided: • 4-H Youth Development Community,Rural, and Economic Development • Health&Nutrition(Family&Consumer Sciences) • Food Security Programs • Agriculture&Food(commercial and consumer) ORANGE COUNTY 77 NORTH CAROLIIVA 2 3 Travis Myren described Cooperative Extension as a county-NC State University partnership 4 providing a variety of discretionary services, including the Four-H program, food security programming, 5 and agricultural economic development staffing. 6 7 Slide#78 Cooperative Extension — page 119 — Contract Personnel Budget Alignment— ($22,587)decrease from FY25-26 • Pays University for Cooperative Extension staff • Due to routine salary changes and retirement of employees — Decrease of$7,270 in Breeze Farm operating expenditures moved to the Article 46 Fund ORANGE COUNTY 78 NORTH CAROLINA 8 9 Travis Myren said that the longtime agricultural economic development staff person retired, and 10 their replacement commands a lower salary, resulting in savings of approximately$23,000. He also noted 47 1 that$7,200 in operating expenses for the Breeze Farm has been moved from the Extension budget to the 2 Article 46 fund. 3 4 Slide#79 DEAPR—Admin/Support Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost 7-- $918,013 $918,013 General Fund FTEs: 6.000 Basis for Investment: Operational Support; Board Priority:Environmental Protection & Climate Action Programs/Services Provided: • Communications and Outreach for the Department • Budget and Finance Support for the Department • Marketing and Event Support • Advisory Boards ORANGE COUNTY 79 NORTH CAROLINA 5 6 7 Slide#80 DEAPR — Natural & Cultural Resources FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost - $567,993 $567,993 General Fund FTEs: 4.000 Basis for Investment: Board Priority:Environmental Protection & Climate Action; Legal Mandate Programs/Services Provided: • Agricultural Preservation • Water Resources — Statistical Observation(Orange Well Net) — Watershed Rules(Falls Lake Rules) • Natural Resource Land Conservation/Nature Preserves • Park Planning/Improvements • Historic,Cultural,and Archaeological Preservation so ORANGE cCOUNATY 8 9 10 48 1 Slide#81 DEAPR — Parks FY 27 Rec. Revenues IFY 27 Rec. Expenses Net County Cost $217,807 $2,103,757 $1,885,950 General Fund FTEs: 12.000 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Operation and Maintenance of County Parks • Nature Programs in County Parks • Parks and Grounds Improvements, Repairs, Security,and Safety • Management of Publicly Accessible Preserves and Trails ORANGE COUNTY 81 NORTH CAROLINA 2 3 4 Slide#82 DEAPR — Recreation FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $657,101 $1,310,324 $653,223 General Fund FTEs: 8.000 Basis for Investment: Board Priority:Healthy Community Programs/Services Provided: • Athletic Programs • Recreation Programs • Preschool and Afterschool Programs • Summer Camps • Special Events — Egg Hunt, Halloween Spooktacular, Family Valentines Dance ORANGE WOORTH CAROLTY YNA 82 5 6 7 49 1 Slide#83 DEAPR — Soil & Water FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $23,600 $477,072 $453,472 General Fund FTEs: 4.000 Basis for Investment: Board Priority:Environmental Protection & Climate Action Programs/Services Provided: • Technical Assistance to Farmers • Environmental Education Initiatives • Urban Watershed Protection • Voluntary Agricultural Districts/Enhanced Voluntary Agricultural Districts ORANGE COUNTY 83 NORTH CAROLINA 2 3 4 Slide#84 Department of Environment, Agriculture, Parks and Recreation — page 143 — Fee increases • Revenue Increase of$25,653 from fee increases and$50,976 from updated participation projections Adult Fees — Basketball League Fee:Raised from$350 to$500 — Adult Volleyball Fee:Raised from$150 to$250 — Adult Athletic Instructional Classes Base Fee:Raised from$30/section to$504701section • Special Event Alcohol Application Fee:Raised from$30 to$250 • Tournament Fees — Athletic fee—Tournaments:Raised from$50/hr for resident;$75/hr for non-resident to$601hr for residents;$80/hr for non-residents — Soccer.com—Tournaments:Raised from$250/hr for residents;$375/hr for non-residents to$350/hr for residents;$525/hr for non-residents • Rental Fees - Raised by$10-15 for residents and$20-25 for non-residents — Recreation seasonal hour increase to support increased programming -$42,734 • Ted to increased revenue projections above — Personnel Reductions—($113,891) • -1.00 FTE:Parks Manager Position(vacant) ORANGE COUNTY 84 NORTH CAROLINA 5 6 Travis Myren described recommended fee increases for adult recreation programs,special events, 7 tournaments, and facility rentals, aimed at improving cost recovery. He noted that $50,000 of the 8 projected revenue increase reflects increased participation,and that$42,000 in seasonal staffing increases 50 1 is budgeted to support that expanded programming. A vacant Parks Manager position is recommended 2 for elimination. 3 4 Slide#85 Department of Environment, Agriculture, Parks and Recreation — page 143 Recreation Program Enrollments 1o0uo 9000 6000 7513 7000 6731 6000 5000 4000 3000 2000 1000 o � FY232'. rY24-25 FY2538 Proj FY26-27 Budget ORANGE COUNTY 85 NQRTH CAROLINA 5 6 Travis Myren presented a chart showing recreation program enrollment trends, projecting growth 7 from approximately 7,500 to nearly 8,600 enrollments. 8 9 Slide#86 Department of Environment, Agriculture, Parks and Recreation — page 143 Cost Recovery for Recreation Programs in FY25 50% 46% 47% 45% 40% 9% 35% 33% 30% 25% 20% 15% 13% 10% 5% 0% Youth Programs Adull Programa Summar Camps Aft—h—1 P—.hoof 'Percentages based on the total cost for the program,not the division ORANGE COUNTY 86 NORTH CAROLINA 10 51 1 Travis Myren described the cost recovery chart by program category, noting that youth summer 2 camps historically recover 46-47% of costs, with afterschool and preschool somewhat lower. Adult 3 programming, however, had been recovering only about 13%of costs, and that is the primary focus of the 4 fee increase effort. 5 6 Slide#87 Economic Development FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost Article 46 Fund $590,975 $590,975 Article 46 Fund FTEs: 3.000 Basis for Investment: Board Priority:Diverse and Vibrant Economy Programs/Services Provided: • Agricultural&Business Investment Grants • Incentive Payments • Workforce Development • Recruitment, Retention,and Expansion of Businesses in the County ORANGE COUNTY 87 NORTH CAROLINA 7 8 Travis Myren said that Economic Development is funded through the Article 46 fund and that it 9 administers agricultural and business investment grants, handles incentive payments, and responds to 10 company inquiries. 11 12 52 1 Slide#88 Economic Development - Visitor's Bureau FY 27 Rec. Revenues � Er '#Y27'--R' ec.Expenses Net Visitors Bureau Fund Imp Cost $1,949,754 $1,949,754 Visitor's Bureau Fund FTEs: 6.000 Basis for Investment: Board Priority.Diverse and Vibrant Economy Programs[Services Provided: • Tourism Strategies • Operation of the Walk-in Visitors Center • Collection and Management of Tourism Performance Data • Event Funding and Marketing ORANGE COUNTY S$ NdR-t-M CAROLINA 2 3 Travis Myren said the Visitors Bureau, including the physical visitor center on Franklin Street and 4 all marketing and promotional activities, is also accounted for within this department's budget. 5 6 Slide#89 Economic Development - page Small Business Grants 15211 51 50 R 45 62 A0 37 34 SS S8 30 20 30 30 x0 — Department costs funded in Article 46 ,o n — Overhead cost decrease to General Fund— m2,�2 FY202243 Ff202324 FY2QZ<•3s Flxa25d8 Prot Budget? ($74,259 •Applicallerls •Approved Agriculture Enterprise Grants 30 25 35 25 23 72 2u 20 77 SO 11 15 1 13 12 10 s ,0 1 11 W FY2021-22 FY2022.23 FY2023-34 FY2024-25 FY2925-25 Pro] FY2025-27 Budget •Appllrai— •Approved ORANGE COUNTY 89 NOR—rH CAROLINA 7 8 Travis Myren said the only notable change in the Economic Development overhead was a decrease 9 driven by reduced IT cost allocations, based on a lower volume of help desk tickets attributable to the 10 department. 53 1 Slide#90 Visitor's Bureau — page 155 — Occupancy Tax revenue decrease from Base — Staff Amendment-Town of Chapel Hill ($30,247) eliminating Visitors Bureau contribution— Based on FY25-26 projected actuals ($200,000) — Largest impact in Advertising($88,580),Promotions& E — End of Visitors'Bureau final repayment of vents($54,500),and Publications($26,150) pandemic related General Fund loan ($239,000) — Decrease in operating costs to avoid fund balance utilization based on FY2025-26 reduction from Town of Chapel Hill— ($324,692) ORANGE COUNTY 90 NORTH CAROLINA 2 3 Travis Myren noted this is the final year of repayment on a pandemic-era loan from the county, 4 which carries a cost of$239,000 that will be relieved in subsequent years. There was also a decrease in 5 operational costs reflecting the reduction in the Town of Chapel Hill's contribution,and a staff amendment 6 accounting for an additional $200,000 shortfall projected for FY 2026-27. He said that the largest impacts 7 will be in advertising, promotions, and publications. 8 9 Slide#91 Visitor's Bureau — page 155 Occupancy Tax Revenue History $2,500,000 52.363.229 52.311.364 $2,312,982 $2A55,VW 52,000,000 51,925,970 $1,471,718 51,581,716 51,881,5+14 $1,500,000 $1,247,530 51;01 ,000 $82ZM 5500.000 S- FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2028-26 Pro) FY2025-2027 Bud" -46� 9 ORARN7GE TIH COUNTY 10 54 1 Travis Myren said that occupancy tax collections are projected to remain roughly flat at 2 approximately$2.3 million. 3 4 Slide#92 Article 46 — page 81 — Total Projected Collections-$6,647,678 $255,680 increase from FY25-26 Fund is driven by single revenue source,susceptible to economic contraction — Split between Economic Development and Education Economic Development-$3,323,839 • Education-$3,323,839 — Education allocation determined by average daily membership less Charter students • Chapel Hill-Carrboro City Schools-$2,042,499 • Orange County Schools-$1,281,340 ORANGE COUNTY 92 NORTH CAROLINA 5 6 Travis Myren said the total Article 46 collections are projected at approximately$6.6 million,which 7 includes an increase of about $255,000 driven by general sales tax growth. That total is split roughly 8 equally between economic development and education.The education share is split between Chapel Hill- 9 Carrboro City Schools(approximately 61.5%) and Orange County Schools(approximately 38.5%), based on 10 average daily membership minus charter school enrollment. 11 12 55 1 Slide#93 Article 46 Sales Tax — page 81 -Eitpendliture dategory Amount Notes Debt service on infrastructure $1,031,755 Actual projected debt service Capital Pay-Go(Piedmont Food Processing Center Improvements) $98,944 Equipment Replacement in CIP Collaborative Outreach $60,000 Funding for Municipalities Incentives $415,759 Funding for Incentives Agricultural Grants $173,644 $8,269 increase from FY2025-26 Business Investment Grants $191,008 $9,095 increase from FY2025.26 Economic Development Department Budget for FY26-27 $499,271 Operating Costs for Department Indirect Costs Associated with Economic Development $91,704 $74,259 lower than FY2025-26 Department Chamber Dues $14,850 Dues to Chapel Hill Carrboro Chamber Chapel Hill Chamber of Commerce Contract for Community $30,000 Cost of contract Advocate Research Triangle Regional Partnership $51,230 Membership dues �1 ORANGE COUNTY 93 NORTH CAROLINA 2 3 Travis Myren walked through the recommended allocations for both economic development and 4 education purposes, noting increases in the Ag Enterprise Grant and Business Investment Grant programs 5 of approximately$8,300 and $9,000 respectively. 6 7 Slide#94 Article 46 Sales Tax — page 81 Expenditure Category Amount Notes Agricultural Economic Development Position $74,491 Revised cost of new employee Part-Time Breeze Farm position in Cooperative Extension $18,000 Position to maintain equipment,assist farmers and Department contribute to horticulture projects Breeze Farm Contribution $22,270 $7,270 moved over from General Fund Agricultural Summit $6,000 Operating costs to host annual summit Arts Festival-UPROAR $55,000 Operating costs to host annual event Durham Tech Promise(Scholarships) $200,000 Same as FY25-26 Durham Tech Back-to-Work Initiative $100,000 Same as FY25-26 DTCC Innovation Hub $20,000 Same as FY25-26 DTCC Apprenticeship Coordinator $9,475 $392 more than FY25-26 Durham Tech Small Business Program $70,000 Same as FY25-26 Durham Tech—College Liaison $90,438 Separated from DT Current Expense TOTAL $3,323,839 ORANGE COUNTY 94 NORTH CAROLINA 8 9 10 56 1 Slide#95 Article 46 Sales Tax — page 81 Article 46 Funding FY26-27 FY27-28 FY28-29 FY29-30 Revenue $ 3,323,839 $ 3,456,793 $ 3,595,065 $ 3,738,868 Debt Service/Capital Pay-Go $ 1,130,699 $ 1,015,514 $ 819,079 $ 886,581 Economic Development Department $ 499,271 $ 547,172 $ 575,781 $ 605,570 Support for General Fund Expenditures $ 184,195 $ 192,505 $ 201,230 $ 210,391 Outside Grants and Initiatives $ 1,093,915 $ 1,082,143 $ 1,161,533 $ 1,132,143 New Incentive Money $ 415,759 $ 500,000 $ 500,000 $ 500,000 Reserve for Future Article 46 Funding $ - $ 119,459 $ 337,442 $ 404,183 Incentive Starting Balance $ 1,138,863 $ 939,767 $ 657,108 $ 401,619 Incentive Payments $ 614,855 $ 782,659 $ 755,489 $ 710,786 Incentive Deficit/Surplus $ 939,767 $ 657,108 $ 401,619 1$ 190,833 95 ORANGE COUNTY NORTII CAROLINA 2 3 Travis Myren presented the multi-year modeling for the Article 46 fund, noting that projections 4 through FY 2029-30 show the fund remaining in a positive net position. 5 6 Slide#96 Fleet Services IFY 27 Rec.Revenues FY 27 Rec.Expenses Net County Cost $0 $3,054,706 $3,054,706 General Fund FTEs: 8.750 Basis for Investment: Operational Support Programs/Services Provided: • Purchase and sale of all fixed assets Parts and Inventory Management • Management of Fleet Telematics Manages Procurement process • Maintenance and repairs of all county Annual safety inspections vehicles including electric and hybrid vehicles • Management of FASTER fleet software • Maintenance and repairs of First Responder vehicles for EMS and Sheriff departments ORANGE COUNTY 96 NORTH CAROLINA 7 8 Travis Myren said Fleet Services is the department responsible for maintaining, repairing, and 9 purchasing the county's vehicle fleet, with most repairs handled in-house and more complex work 10 contracted out. 11 12 57 1 Slide#97 Fleet Services — page 179 — Increase in Fuel Costs-$595,400 • Gasoline-$509,200 • Diesel-$86,200 — Increase in Vehicle Components and Parts-$31,391 — Decrease in Temporary Personnel and Overtime-($25,798) — Operational Reductions—($15,044) ORANGE COUNTY 97 NORTH CAROLINA 2 3 Travis Myren said that the primary budget driver is a$595,000 increase for projected gasoline and 4 diesel fuel costs, as well as a $31,000 increase for vehicle components and parts, a small decrease in 5 temporary personnel and overtime, and $15,000 in operational reductions. 6 Chair Hamilton said she would like a better understanding of the basis for the increase in budgeted 7 fuel costs. 8 Travis Myren responded that the recommended budget assumes$5.00 per gallon for gasoline and 9 $6.00 per gallon for diesel,with usage projected to remain approximately flat relative to the current year. 10 Chair Hamilton asked how the county's investment in electric vehicles and charging infrastructure 11 was being factored into fuel cost projections. 12 Travis Myren indicated that the EV investment has likely begun to show up in usage data, noting 13 that the county tracks fuel usage and mileage on every vehicle. He committed to pulling that data to see 14 if a measurable impact could be identified. He added that the county's two largest fleets, Emergency 15 Services and the Sheriff's Office, have no electric vehicles, as their primary vehicles are not yet available 16 or practical as electric vehicles. 17 Commissioner Bedford asked if Orange Public Transit buses are included in the Fleet budget as 18 well. 19 Travis Myren said yes. 20 21 58 1 5lide#98 Fleet Services — page 179 Fleet Services Costs $2,500,000 $2,000,000 Sheriffs Office Vehide $1,500,000 Maintenance in FY2025-26 $a25K $1,000,000 7K — $500,000 $- — FY2016-19 FY2019-20 FY2020-31 FY2022-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Mg. ■Vehicle Maintenance ■Gas&Oil ■Diesel Fuel ORANGE COUNTY 98 NORTH CAROLINA 2 3 4 5lide#99 Planning and Inspections — Current Planning CountyFY 27 Rec. Revenues FY 27 Rec. Expenses Net $134,580 $1,658,920 $1,524,340 General Fund FTEs: 12.000 Basis for Investment: Legal Mandate ProgramslServices Provided: • Subdivision,Zoning,and Land Use Permitting • Long-Range Planning Including the Comprehensive Plan • Unified Development Ordinance(UDO) 99 ORANGE WORTH CA COUNTY 5 6 Travis Myren said the Planning and Inspections department is comprised of current planning, long- 7 range planning,the comprehensive plan,erosion control,and building inspections for both the county and 8 the Town of Hillsborough. 9 59 1 Slide#100 Planning and Inspections — Erosion Control IFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $620,200 $71%996 $99,796` General Fund FTEs: 5.000 Basis for Investment: Legal Mandate Programs/Services Provided: • Erosion Control Permitting for all Land Disturbance in the County • Stormwater Management • Lake Orange Dam ORANGE COUNTY 100 NORTH CAROLINA 2 3 4 Slide#101 Planning and Inspections — Inspections FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $1,616,351 $1,783,276 $166,925 Inspection Fund FTEs: 16.000 Basis for Investment: Legal Mandate; Board Priority:Housing for All ProgramslServices Provided: • Building Inspection Applications • Building Inspections in Orange County and the Town of Hillsborough • Residential Plan Reviews ORANGE WOORTH CAROLTY YNA 101 5 6 7 60 1 Slide#102 Planning and Inspections - page 219 — General Fund-$52,430 increase in revenue • Due to incremental fee increases and increased revenue projections in Erosion Control — Personnel Reductions in the General Fund—($215,224) • -1.00 FTE:Watershed Protection Specialist position(vacant) -1.00 FTE:Planner III position(vacant) — Cost Recovery Erosion Control:86.1%in FY26-27. — Up from 83.7%in FY26 — Mainly due to increased fees and updated revenue projections Inspections:90.6%in FY26-27 — Up from 80.1%in FY26 — Mainly due to increased fees — Inspections Fund • Increased fees an average of 2-10%-$267,010 Reduction in GF subsidy—($168,849) ` ORANGE COUNTY 102 NORTH CAROLINA 2 3 Travis Myren said that budget changes include approximately$52,000 in increased revenue from 4 incremental fee increases and higher erosion control projections in the general fund.Two vacant positions 5 are recommended for elimination, including a Watershed Protection Specialist and a Planner III. Cost 6 recovery in erosion control improved from 83.7% to 86.1%, and inspections cost recovery rose from 7 approximately 80% to 90.6%. He explained that fee increases in the recommended range of 2-10% on 8 average would allow a reduction in the general fund subsidy. 9 10 Slide#103 Planning and Inspections - page 219 Inspections Revenue $2,500,000 $2,298,616 $2,000,000 $1,616,361 $1,500,000 $1,227,698 $1,196,409 $1,239,930 $1,235,892 $1,274,344 $1,179,561 $1,166,460 $999,360 $1,069,339 $1,096,949 $1,000,000 $500,600 $0 FY1646 FY1647 FY17.18 FY18.10 FY19-20 FY20.21 FY21-22 FY22-23 FY23-2$ FY24-26 FY25.26 Pmj FY25.27 Budge! ORANGE COUNTY 103 NORTH CARC3LINA 11 61 1 Travis Myren said the charts on slides#103 and 104 showed the cyclical nature of inspections and 2 erosion control revenue, noting that large projects can significantly skew revenue in any given year. He 3 noted that FY 2025-26 saw a dramatic spike in inspections revenue due to the Collins Ridge and Persimmon 4 Creek projects. 5 6 Slide#104 Planning and Inspections — page 219 Erosion Control Revenue $1,200,000 $1,195,352 $1,000,000 $600,000 $620,200 $620,200 $600,000 $566,377 $495,672 $436,660 $400,000 - X363, $342,129 $352,0 $296, $261,621 $293,483 100 $200,669 FYi6.16 FY1647 FY1748 FY19-19 FY1940 FY20.21 FY21-22 FY22.23 FY23-24 FY24.25 FY25.26 Pr0J FY26.27 Bud901 ORANGE COUNTY 1Q4 NC3RrH CAROLINA 7 8 Travis Myren noted that a strong year in erosion control revenue in FY 2024-25 is moderating back 9 to an average of approximately$620,000. 10 11 62 1 Slide#10S Planning and Inspections — page 219 Number of Building Permits*Issued 1,200 1,040 1,047 1,000 960 931 675 900 874 800 787 799 782 600 400 200 FY17-18 FY19.19 FY99-20 FY20-21 FY21.22 FY22.23 FY23-24 FY24-25 FY26.26Prol FY26.27Budget *A multifamily building has a single permit,so the number of dwelling units can be higher _4�__ 105 ORANGE W-rH COUNTY 2 3 Travis Myren said the limitation of the chart shown on this slide is that multi-unit developments 4 receive a single permit regardless of how many units are included, making it less informative about actual 5 housing production. 6 Commissioner McKee noticed that permit numbers had ranged from approximately 930 to 1,047 7 prior to FY 2021,then declined to the 700-900 range in subsequent years,which seemed counterintuitive 8 given the population growth the area has experienced. He asked whether the shift toward multi-family 9 permitting might account for that pattern. 10 Cy Stober, Planning and Inspections Director, explained that the period from 2020 through mid- 11 2022 was an anomaly in building construction statewide. He noted that Collins Ridge, which involved a 12 large volume of individually permitted townhomes,coincided precisely with that window,along with other 13 high-volume, smaller projects in the Town of Hillsborough.The combination produced an unprecedented 14 surge in new home starts that the state had not seen in 20 years. 15 Chair Hamilton said it would be useful in future budget years to include a breakdown of single- 16 family versus multi-family units permitted, to add meaningful context to the permit count data. 17 Cy Stober said that staff have already been working with the Budget Office to add that level of 18 detail to future performance reporting. 19 20 21 22 63 1 Slide#106 Solid Waste Department — Environmental Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $2,870,934 $2,870,934 $0 Solid Waste Fund FTEs: 14.250 Basis for Investment: Operational Support ProgramstServices Provided: • Administrative services that handle accounts payable,including the solid waste programs fee,accounts receivable,and budgeting • Solid Waste Fleet Services provide support services for vehicles and staff servicing mandated programs • Solid Waste Enforcement enforces County ordinances in support of mandated programs,RRMO,and review of development plans. • Community Engagement provides support of mandated programs by developing relationships,educational,and other programs leading to increased waste diversion and waste reduction. Division also seeks grant funds to support diversion programs. 106 ORANGE W-rH COUNTY 2 3 Travis Myren said Solid Waste is an enterprise fund, in which all departmental expenses are paid 4 through the Solid Waste Program fee or other department-generated revenues. Divisions include 5 environmental services, landfill operations, recycling services, and sanitation. 6 7 Slide#107 Solid Waste Department — Landfill Operations FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $2,049,472 $2,049,472 $0 Solid Waste Fund FTEs: 9.000 Basis for Investment: Legal Mandate ProgramstServices Provided: • Construction and Demolition landfill management Operates a state mandated scrap tire recycling program • Operation of the County's yard waste diversion program Operates a state-mandated appliance and metal recycling program • Management of Closed Landfills • Collect,stage and haul scrap tires ORANGE COUNTY 107 NORTH CAROL)QIVA 8 9 64 1 Slide#108 Solid Waste Department — Recycling Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $4,778,911 $4,MA11; $0 Solid Waste Fund FTEs: 25.000 Basis for Investment: Legal Mandate Programs/Services Provided: • Mandated collection of targeted recyclable Mandated recycling collection from multi-family dwellings • Electronic recycling and processing Mandated waste and recycling collection from Government Buildings and Commercial Collections • Manage and haul all recyclable material for processing • School Collection services • Curbside collection from 68,000 Urban and Rural residents Organic Waste Management • Service 5 unmanned recycling drop-off sites. ORANGE COUNTY 108 NORTH CAROLINA 2 3 4 Slide#109 Solid Waste Department — Sanitation Operations FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $3,611,974 $3,611,974 $0 Solid Waste Fund FTEs: 17.750 Basis for Investment: Legal Mandate Programs/Services Provided: • Manages Waste and Recycling sites • Operation and management of the Household Hazardous Waste Services • Collection of Municipal Waste(Schools/Government Buildings) • Operate and maintain 5 manned Waste and Recycling Centers ORANGE WOORTH CAROLTY YNA 109 5 6 7 8 9 65 1 Slide#110 Solid Waste — page 238 — Increase Solid waste Program Fee — Impacted significantly by inflation, living wage, PFAS • Outside of Mebane-$142 per parcel testing and remediation option,fuel costs->excess • Inside of Mebane$94.74 Fund Balance exhausted — Decrease in Capital Spending and Appropriated Fund — Department to review additional options for long term Balance to maintain Fund Balance. sustainability • Examine service levels and locations — Reduction In Office Assistant 11 (.675 FTE)position— Additional fee increases are likely ($51,191) — Increase in Fuel Costs per current market rates- Solid waste Revenue Sources $410,023 charges for Services — Decrease in Overhead Funds paid to General Fund— 5% ($212,758) Landfill Fees Programs Fee — Costs to Continue, including PFAS testing, household s% 8E% waste processing,and living wage adjustments- $288,621 Investment Earnings 1% PV Other Revenue 5% 110 2 3 Travis Myren said he is recommending increasing the Solid Waste Program Fee from $138 to$142 4 per taxable parcel, essentially restoring a reduction made a couple of years ago. A different, lower rate 5 applies within the City of Mebane,where the full suite of services is not provided.A vacant office assistant 6 position is recommended for elimination. He said that the coming years will be lean times for the Solid 7 Waste fund,citing a confluence of pressures: inflation, heavy reliance on temporary employees and living- 8 wage-affected workers, PFAS testing and remediation costs, and elevated fuel costs. He projected a 9 $410,000 increase in fuel costs and described a decrease in overhead cost allocation, along with costs to 10 continue for PFAS testing. He noted that 86% of Solid Waste revenue comes from the program fee, and 11 that staff would work with the Solid Waste Advisory Group to evaluate potential operational adjustments 12 in future years. 13 66 1 2 Slide#111 Sportsplex FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $5,952,738 $5,952,738 $0 Sportsplex Fund FTEs: 0.00 Basis for Investment: Board Priority: Healthy Community Programs/Services Provided: Fitness Center • Group Fitness Classes • Ice Skating Rink • Afterschool Programs Adult and Youth Hockey Leagues Aquatic Center(with 3 pools) • Basketball Courts ORANGE COUNTY 111 NORTH CAROLINA 3 4 Travis Myren said that the Sportsplex operates as a completely discretionary enterprise fund with 5 no general fund impact. Post-pandemic revenues have performed very well, with total revenue projected 6 to exceed $6 million in the current year. 7 8 Slide#112 Sportsplex - page 243 — FY2026-27 provides increase in Fund Balance - $402,900 Sportsplex Revenues $7,000.000 90.0% $6,000,OW $6,Os3,y116 $5,952,738 70.0% $5,497,730 60.0% $5,235,842 $5,0001000 $4,675,479 $4,769,351 50.0% 40.0% $4,000,000 $3,764.043 30.0% $3,134,840 $3,000,000 $2,727,377 200% 10.0% $2,000,000 a.vw -10.0% $1,og0,0oo 'Mm $0 300% FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FUD23-24 FY2024-25 FY202S26 Praj 82026-27 Budgeted Operating Revenue -Change from Prior Year ORANGE COUNTY 112 NORTH CAROLINA 9 67 1 Travis Myren said the budgeted Sportsplex revenue for FY 2026-27 is set just under $6 million at 2 $S.9 million. 3 4 Slide#113 Transportation Services—Transit FY 27 Rec.Revenues .1 FY 27 Rec.Expenses Net County Cost $2,389,830 $2,514,497 $124,667 General Fund FTEs: 26.000 Basis for Investment: Legal Mandate; Board Priority.Multi-modal Transportation Programs/Services Provided: • Demand Response • Elderly and Disabled(EDTAP) • Rural General Public(RGP) • Employment Assistance(Empl)and Work First • Fixed Route Services • MobllityonDemand • Supports Mobile Dental Clinic „s ORANGE CCOUNNTI' 5 6 Travis Myren said the Transit Division of Transportation Services includes demand response,fixed 7 route service, mobility on demand, and the mobile dental clinic driver. 8 9 Slide#114 Transportation Services— Transportation & Public Engagement Net County Cost $0 $376,616 $376,616 General Fund FTEs: 1.000 Basis for Investment: Legal Mandate ProgramslServices Provided: • Highway and Road Project Administration • Bike and Pedestrian Project Administration • Safety Improvement Administration • Planning Organization Engagement • Transit Tax District Administration ORANGE COUNTY 114 NORTH CAROLINA 10 11 Travis Myren said the Transportation and Public Engagement division includes DOT coordination, 12 the Bicycle and Pedestrian Plan, and transit tax administration. 68 1 Slide#115 Transportation Services — page 252 — Increase in transit tax proceeds and increase in grant reimbursement -$150,048 — Addition of List Driver(1.0 FTE)to support the demands of transit operations-$75,132 — Reduction in Overtime costs($66,285)and Operational costs($20,000)to offset List Driver—($86,285) — Additional Temporary Personnel for Staff Working Group-$31,348 • Funded through Article 43 Transit Tax ORANGE COUNTY 115 NORTH CAROLINA 2 3 Travis Myren noted an increase in transit tax proceeds offsetting costs for newly added routes from 4 the transit plan, and the addition of a floater driver to fill in for driver absences and maintain schedule 5 reliability, offset by reductions in overtime and operational costs. Staff also administers the staffing 6 working group, for which compensation is increasing by$31,000 to support temporary personnel. 7 Commissioner Bedford asked whether Medicaid funding could be used to pay for the mobile 8 dental clinic driver. 9 Sarah Williamson, Interim Transportation Director, said that the position is not eligible for 10 Medicaid funds. 11 12 Slide#116 Transportation Services — page 252 Daily Dispatch Data Nov 2025 -Mid-Feb 2026 Goal Range Nearing Risk 135 to 124 130 to 121 89%to 85% Risk Range 125 or fewer 120 or fewer 84.9%or less Actual Performance 1 132.92 126.06 187% • Averaged 7.3 Demand Response trip cancellations per day • Expect to see higher usage based on more reliable service • Approximately 10+trips added per day with new List Driver position • On-Time Performance — Fixed Route—within+1-5 minutes of scheduled time at timed stop — Demand/Mobility on Demand Response-within+1-10 minutes of schedule trip — Demand Response includes door to door service due to ADA accommodations NTY 116 ORNORTH CARONGE LY INA 13 69 1 Travis Myren presented a performance chart showing on-time performance for all transit services, 2 noting that all services were performing in the yellow, approaching goal range, and trending toward the 3 green, at goal category. 4 5 Slide#117 Transportation Services — page 252 OCPT Ridership zo,am 44.000 60,OW SLDDO W,OPO 40,000 >9,ca ao,zna 00,010 zo,mo 10.000 cvzmalz snmo-m Fnozo-zl Fra zi-. Fvzozz-z3 .. ,.. nzaza-zs Fnoas-za nal Frzoaa-zz xdxeen ORANGE COUNTY 117 NC)Wl'l I CARCDLINA 6 7 Travis Myren said that ridership is projected to increase by approximately 2,000 rides compared 8 to the current year. 9 10 Slide#118 FY2026-27 Recommended Budget • Questions? — Amendments due tomorrow morning @ 10:00 AM — Public Hearing on Thursday, May 28 — Approve Amendments and Resolution of Intent to Adopt the Budget—June 4th — Final Budget Approval-June 16th ORANGE COUNTY 118 NCJR F]I CARCILINA 11 12 Travis Myren reminded the Board that Commissioner amendments are due by 10:00 am 13 tomorrow. He said this as a soft deadline from a staff processing standpoint, but that the goal is to post 14 amendments publicly before the scheduled public hearing on Thursday. He said that commissioners who 70 1 receive a late-arriving amendment idea should feel free to call his office by early afternoon,and staff would 2 work to accommodate it. He said that draft amendment language would be circulated to commissioners 3 for review before posting. 4 Chair Hamilton said that many complicated amendments would likely be submitted,and reiterated 5 that the public will need adequate time to review them before the public hearing on Thursday. She 6 reminded the public that the Board will approve the Resolution of Intent to Adopt for the budget on June 7 4', and that while comments would be received at the public hearing, the Board would be engaged in 8 detailed deliberations on June 4t"to finalize the budget. 9 10 Adjournment 11 12 A motion was made by Vice-Chair Fowler, seconded by Commissioner McKee, to adjourn the 13 meeting at 8:30 p.m. 14 15 VOTE: UNANIMOUS 16 17 Jean Hamilton, Chair 18 19 20 Recorded by Tara May, Deputy Clerk to the Board 21 22 Submitted for approval by Laura Jensen, Clerk to the Board