Loading...
HomeMy WebLinkAboutMinutes 05-12-2026-Budget Public Hearing 1 APPROVED 6/16/26 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET AND CAPITAL INVESTMENT PLAN PUBLIC HEARING AND WORK SESSION May 12, 2026 7:00 p.m. The Orange County Board of Commissioners met for a Budget and Capital Investment Plan Public Hearing and Work Session on Tuesday, May 12, 2026, at 7:00 p.m. at the Whitted Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners Jamezetta Bedford, Marilyn Carter, Sally Greene, Earl McKee, and Phyllis Portie-Ascott COUNTY COMMISSIONERS ABSENT: None COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and Clerk to the Board Laura Jensen (All other staff members will be identified appropriately below) Chair Hamilton called the meeting to order at 7:00 p.m.All commissioners were present. A motion was made by Commissioner Carter, seconded by Commissioner Greene, to add a discussion on Additional Budget Options for FY2026-27 during the work session portion of the meeting. VOTE: UNANIMOUS 1. Opening Remarks Chair Hamilton welcomed and thanked everyone in attendance, as well as those who had submitted comments by email or phone call. She said she was proud to be part of a county that is open to community feedback and criticism, even when it is hard to hear. She also acknowledged that Community Relations Director, Wil Glenn, had assisted in responding to constituent emails, and she apologized in advance for any messages that may have been missed. Chair Hamilton read the public charge and explained the process for making public comments. 2. Presentation of the County Manager's Recommended FY 2026-27 Budget County Manager Travis Myren made the following presentation: Slide#1 ORANGE COUNTY NORTH CAROLINA Manager's Recommended FY2026-27 Operating Budget May 12&28,2026 Budget Public Hearings z Slide#2 FY2026-27 Operating Budget Introduction FY2026-27 Operating Budget Priorities 1. 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 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 Travis Myren said the total recommended budget is $325.1 million, with approximately $275.8 million derived from tax revenue and the remainder from fees and intergovernmental revenue. He said that when divided between education and county operations — after subtracting department- generated revenue —the split is approximately 54%to K-12 education and 46%to county operations. 3 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 NORTH CAROLINA Travis Myren said property tax growth is estimated at 2.27% over the current year, with real property growth at approximately 1.4% and motor vehicle values increasing by approximately 10%. He said sales tax has moderated since the pandemic to an estimated 2.7% increase, with a reduction also anticipated in the hold-harmless payment. 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 N0R3-1Hl C".AROLINA Travis Myren said debt service is projected to increase by $7.8 million next year as a result of prior borrowings, which exceeds the total general fund revenue growth of $5.9 million. He said Pay-as- you-go (Pay-Go) funding is recommended for school bond soft costs, including architect and engineering fees and project management, as well as for small capital repairs. 4 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 Total 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 Contracts increase 3% =$123,744 to$4,248,550 • Pay-Go increase as recommended in Capital Investment Plan -$3.0 million s ORANGE�COUNATY Travis Myren said he is recommending a 2.5% increase in current expense funding for a total of $114 million - approximately $2.8 million more than the current year - bringing per pupil funding to $6,171, a $294 increase per student. He noted that due to declining enrollment, the 2.5% current expense increase equates to a 5%increase in per-pupil funding. Slide#7 Provide Continuation Funding for Schools Total Budgeted Students by District 13,000 12,115 12,242 12,339 12,239 12,160 12,387 12,274 12,236 12,351 11,993 11,820 12,000 1,942 11,382 11,253 11,141 11,018 11,000 10 741 10,000 9,000 --$--CHCCS 8,000 7,863 7,801 7751 7,966 8,072 8,011 8,134 8,156 8,110 8,023 8,003 7936 7925 +oCs 7,148 7,227 71172 71357 7,437 7,000 6,000 5,000 20 8 200&09 20 0 20 1 201142 201243 201344 20 5 2015-16 20 7 201749 20-9 2019-20 20 1 2021-22 2022-23 2023-24 20 5 2025-26 2- CHCCS Budgeted Student Decrease of 277 Students Budgeted student percentage decreases from 58.16%to 58.08% OCS Budgeted Student Decrease of 174 Students ORANGE COUNTY 7 Budgeted student percentage increases from 41.84%to 41.92% NORTH CAROLINA 5 Slide#8 Provide Continuation Funding to Schools County Per Pupil Funding Amount History $294 rn m&Tom $7,000 - FY2025-26 $6,171 $6 000 _ SS 677 $5,346 S5,000 $4,165 $9,352 $4,367 $4,3fi7 $4,000 $3,869 $3,991 $3,571 5�,65a $2.957 $3,Ob9 $3,200 53,096 Al 53,i67 53,259 53,000 52,000 - — $1,w0 �� �' yo �+ti �,, My, y► M+a yyd �q M1yro a+a 9,,y° atiti ,�ti tiM ,gyp �tia yro� �ti� ORANGE COUNTY 8 NORTH CAROLINA 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 •. . City Schools FY2026-27 Manager Continuation Request Difference Recommended $66,282,711 $67,838,023 ($1,555,312) L Chapel Hill-Carrboro City SchoolsExpansion FY2026-27 Manager Expansion Request Difference Recommended $66,282,711 $71,538,023 ($5,255,312) ORANGE COUNTY 9 NORTH CAROLINA Travis Myren said the recommended increase for Chapel Hill-Carrboro City Schools is approximately$1.5 million over the current year, which falls short of that district's continuation request by approximately$1.5 million. 6 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 Schools FY2026-27 Manager Recommended Expansion Request Difference $47,831,421 $50,484,041 ($2,652,620) o ORANG ECOUNATY Travis Myren said his recommendation for Orange County Schools falls short of their continuation request by approximately$712,000. 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 NORT"CAROLINA Travis Myren said 20 of the 27 county departments are recommended at levels below current year, representing approximately $3.8 million in reductions, with seven departments receiving net increases due to unavoidable costs. 7 Slide#12 FY 2026-27 Operating Budget Introduction • General Fund Expenses County Department Changes to Base Budget $1,000,000 $500,000 ■ ■ ■ ' ■ ■ ■ ' ■ $- �5 15 �S�J5 QGP5QdQ� K. 'G G O 'G EO O G Q-'CQG iyG�O 0J4 AG �50 P0�y 4O FQQOQ-�p?��.��\OJGO�QO g�ll e�V C"O �\ ��l6 PO PQ-G�?G������OG� P�y��O�"'Z,s�GO�SOQ�Q4 oJ�.�'1 �J O�QP ��. POts ���OJS ��P��O �. \a �F. cj 6 G�J Co G G�� aP�GQi \��OF Q qQ-P $(1,000.000) F� C)RANGE COUNTY 12 NORTH CAROLINA 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 COUNTY 13 NORTH CAROLINA Travis Myren said the recommended employee compensation package includes a 2% wage increase at a cost of approximately $1.9 million, a 9% increase in health insurance at $1.3 million, and a 5% increase in the local retirement system at approximately $570,000. He said the living wage is recommended to increase to $20.02 per hour at a cost of approximately$500,000. He said $250,000 has been reserved in the tax administration budget to accommodate any staffing recommendations from 8 the tax assessment review, and that $370,000 is being added to the Sheriff's Office budget to align overtime appropriations with actual expenditures. 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 » 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 Slide#15 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 9 Travis Myren said outside agency funding is recommended to remain flat at $693,000, with the Habitat for Humanity contract transferred to the Housing Department. He said the budget recommends reducing payments to the Chapel Hill and Mebane libraries and increasing the social justice fund. Slide#16 FY 2026-27 Operating Budget Introduction • Property Tax Rate -Residual/Net 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 ORANGE COUNTY 16 NORTH CAROLINA Travis Myren said when all budget expenses and revenues are reconciled, a residual gap of approximately $12.65 million remains, equating to a 3.75-cent increase on the tax rate, which would bring the current rate from 63.83 cents to 67.58 cents per$100 of assessed value Slide#17 Manager's Recommended Tax Rate • Manager's Budget Recommends Increase of 3.75 cents over FY 2025-26 r Impact on Home @$400,000=$150.00 Impact on Home @$500,000=$187.50 County Tax Rate Hisory 120 sseB 100 ss.ao 89.00 84.70 85.80 85.80 85.50 85.80 85.80 87.80 87,80 8780 837T 8509 8fi.79 8fi.79 86.34 81.87 83.12 8858 so 87.5E 83.83 60 40 0 FY 2005 FY 2{IOfi FY 2007 FY 2008 FV 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FV 2016 FY.111 2018 FY.111 2820 FY 2021 FY 2022 FY 2023 FY 2024 11.111 2112fi FY 2027 Rec 10 Travis Myren said the recommended tax increase impact on a $400,000 home would be $150 per year and $187.50 on a $500,000 home. 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 �1 a ORAN GE�COUNTY Travis Myren said outside the general fund, adjustments are recommended to the Visitors Bureau fund reflecting a $324,000 decrease in operating expenses due to lost revenue from the Town of Chapel Hill. He said the Solid Waste Fund program fee is recommended to increase to $142 per parcel due to the near-exhaustion of the fund balance. He said four fire districts — Damascus, Eno, Little River, and Southern Triangle — are requesting tax rate increases. Slide#19 Budget Consideration Schedule FY2026-27 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 19 ORAN HE COUNATY 11 Slide#20 Questions? ORANGE COUNTY lfH[JRC)I_INA 3. Public Comments A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler, to open the public hearing on the budget and capital investment plan. VOTE: UNANIMOUS PUBLIC COMMENTS: Vibeke Talley from the North Carolina Senior Tar Heel Legislature provided historical context on social work staffing at the senior centers. She described her experience working in aging transitions at the Department on Aging from 2000 to 2011, noting that during that period, social workers struggled to effectively help low-income older adults complete applications for food stamps and Medicaid. She credited Director Janice Tyler for arranging a shared social work arrangement with the Department of Social Services (DSS) in 2010, whereby two social worker positions were moved to DSS and shared with the Department on Aging to serve senior centers. She described the arrangement as streamlining the application process and dramatically improving the number of vulnerable older adults receiving benefits. She respectfully asked that there be no cuts to the shared DSS/DOA social workers at the senior centers. Gayane Chambless spoke as an advocate for youth education and mental health. She urged the Board to fund the Orange County Schools' request to increase teacher and staff supplements, noting that OCS had previously ranked among the top five districts in the state for teacher pay but no longer did. She acknowledged that while some residents were willing to pay higher taxes to support county needs, others could not afford to do so. She said voters agreed to take on tax increases for the school bond, but questioned whether the timing was right to proceed with projects such as relocating the Sheriff's Office, constructing a new behavioral crisis center, and building an EMS headquarters, suggesting those projects might wait until funding stabilizes. She requested the Board prioritize sustaining and retaining school staff by fully funding the OCS budget request, consistent with the county's stated strategic priorities. Kelly Suttles urged the Board to fully fund Orange County Schools' continuation budget, noting the County Manager's recommendation fell more than $712,000 short. She said that the continuation budget should be the floor, not the ceiling. She warned that the gap was roughly equivalent to 12 average teacher salaries. She expressed support for fully funding the continuation budget and advocating at the state level for ending the school voucher program, citing$533.6 million in public funds directed to private schools statewide in the current year, including more than $2.9 million to private schools in Orange County. 12 Spring Dawson-McLure, speaking as a parent of children in Orange County Schools, expressed solidarity with teachers and staff. She noted that her eighth-grade daughter had overheard teachers discussing the need for second jobs. She described being born in Orange County in a family of teachers and farmers and framed the funding shortfall as a direct consequence of deliberate state-level disinvestment in public education. She briefly noted that a federal budget proposal would result in a $3.2 million loss in federal funding for the county's two school districts and stated: "Now is not the time to pull back funds from our schools." She described a non-partisan statewide initiative called Public School Strong, organized by Heal Together, uniting parents, caregivers, and community supporters to advocate for fully funded public schools. She urged the Board to fully fund the continuation budget. Rachel Heller also spoke in support of fully funding the OCS continuation budget. She said that the county states that its goal is to direct 48.1% of general fund revenue to schools, yet the proposed budget allocates only 46.65%. She emphasized that the current shortfall of $712,000 would directly harm retention of teachers, bus drivers, and classified staff in a competitive regional market. She said the two school districts also proposed expansion budgets, which, if funded, would bring them closer to what the students need and deserve. She said the school districts and county are in this position and seemingly always in need of more money because of the North Carolina General Assembly, which for 15 years has refused to invest in kids' futures and intentionally shortchanged public education to the point where North Carolina ranks virtually last in the country in actual per pupil funding and funding effort. She said the General Assembly has sent nearly $600 million of state tax money to private schools just this year, mainly benefiting wealthy families, and $3 million in private school vouchers have gone to private schools in Orange County alone this year. She called on the Board to advocate with the state legislature to end the voucher program and at least fully fund the continuation budget requests. Lynn Nilssen addressed why the proposed 3.75-cent property tax increase is necessary and defensible. She argued that for higher-income households, the increase is manageable relative to what would be lost if essential services were underfunded. She acknowledged the county's provision of property tax relief for low-income homeowners. She attributed increasing pressure on local budgets to state-level decisions, particularly the phase-out of the personal and corporate income tax, which she described as resulting in an $18 billion annual loss in state revenue, disproportionately benefiting wealthy individuals and large corporations. She called on the Board to use its platform to speak publicly about how regressive state tax policy is harming local governments, stating: "Silence only normalizes these policies and shifts more responsibility onto local taxpayers." Judy McCord spoke in support of the Department on Aging and the Seymour Center. She noted that she contributes more than 100 volunteer hours per month to the Seymour Center and relies on its programs for community connection following pandemic isolation. She identified specific concerns with the proposed budget, including a proposed 25% increase in class fees, the elimination of the permanent evening facility manager position (a three-quarter-time position necessary for evening programming), and the elimination of the shared social worker position. She expressed concern that reduced staffing would undermine the work of volunteers and ultimately result in diminished programming. She asked the Board to maintain at least current staffing levels for the Department on Aging. Elizabeth DuBose said she stands in solidarity with everyone who has spoken so far. She said she has been a county resident since 1965. She said many of the issues the county is facing today did not originate in Orange County. She described growing up with the library and emphasized that it serves every constituency referenced this evening, including those concerned about education, seniors, and the underprivileged. She described a career in public health at UNC and characterized herself as privileged yet underpaid. She questioned why the library budget would be reduced to the point of near elimination of county funding over two years, expressed concern that closing libraries would serve the agenda of those who oppose public knowledge, and called for creative solutions such as pooling library staff, supporters, and advocates. She did not advocate for eliminating funding to the Orange County 13 Library system, but stated she could not support eliminating all county funds to the Chapel Hill Public Library. Chris Maue said he has been an educator in Orange County for 10 years. He said the Board of Education requested additional funding to increase the local teacher supplement for many years. He questioned how teachers are supposed to be able to continue with monthly bills increasing without any pay increase. He noted that the state salary schedule groups years 15-25 of experience at the same pay level, meaning veteran teachers see no pay increase for an entire decade. He reported zero increases in the local supplement for each of the past three years. He described working multiple side jobs to support his family and warned of a growing burnout rate. He pointed to OCS being one of only three districts statewide where all schools met or exceeded growth, attributing it to hard-working staff, and requested full funding of both the continuation budget and a competitive supplement increase. Amanda Aguayo said she has been a teacher in OCS for 5 years. She asked the Board to match and surpass the school districts' funding requests. She spoke about working three jobs to afford food and housing, despite nearly two decades of professional experience. She warned that cutting education funding results in overcrowded classrooms, exhausted teachers, and diminished student opportunities. She said that passion cannot continue to compensate for chronic underinvestment. She called on the Board to prioritize students and educators and fully fund the schools'funding requests. Meghan Jones said she is a mom of two and a resident of Chapel Hill. She expressed her family's deep connection to the Chapel Hill Public Library, citing weekly visits, summer and winter reading programs, book recommendations from librarians, and the library's role as a community gathering space. She noted that while her family also visits the Carrboro branch library, the Chapel Hill Public Library plays a uniquely central role in their daily lives. She warned that cutting library funding during a time of rising fascism and anti-intellectualism sends a dangerous message, and called on the Board to fund a library befitting the home of the nation's oldest public university. Beverly Walton said she is speaking on behalf of Justice United. She said the county is cutting funding for affordable housing, while also increasing property taxes, calling the housing situation in Orange County a crisis. She said if luxury properties are taxed higher and pay their fair share, there would be enough money to fund all the needs requested tonight. Louis Capitanio expressed frustration with government overspending. He argued that investments in education and libraries are essential while suggesting that other areas, specifically Orange County Solid Waste, contain waste and unnecessary spending. He raised concerns that elderly, disabled, and veteran residents would be displaced by rising taxes. He noted that Emergency Services, the Sheriff's Department, and Fire Departments cannot sustain budget cuts. Juno Wouk a fourth-grade student at Glenwood Elementary in the dual-language Mandarin program, spoke about the importance of her school's program and the library. She noted that Glenwood was the only elementary school in the district where enrollment increased this year, attributing it to the appeal of the dual-language program. She asked the Board to fund the school district so it could focus on redistricting rather than closures. She also expressed concern about proposed library funding cuts, stating that she had visited the Chapel Hill Public Library since before she could walk and credited it with her love of reading. Nina Morley Daye, retired science teacher with over 35 years of experience at Orange High School, spoke in solidarity with current educators. She emphasized that OCS having 100% of schools meeting or exceeding growth is not an easy thing to do. She made two requests: first, that the Board pass, at a minimum, a continuation budget for both school systems; and second, that the Board use its platform to publicly demand that the General Assembly adequately fund schools and pass a budget. Christina Clark, president of the Orange County Association of Educators and a teacher at Cedar Ridge High School, described the county as one of the best places to live, yet increasingly unaffordable for school staff. She noted that teaching positions in Chatham, Durham, and Wake Counties offer higher 14 pay with lower costs of living. She described OCS achieving 100% of schools meeting or exceeding growth as made possible by dedicated staff who are now looking elsewhere and called on the Board to fund raises and supplements to retain them. She expressed concern that the county's investment priorities, noting new parks and greenways in wealthy neighborhoods while sidewalks remain absent near Grady Brown and Cedar Ridge, do not reflect the needs of school employees. Savannah Patterson, teacher at Cedar Ridge High School, former District Teacher of the Year, and Secretary of the Orange County Association of Educators, called on the Board to raise education funding. She described working before and after contract hours, including hosting additional tutoring sessions ahead of state exams, without compensation for student transportation or equitable provision of snacks and drinks across schools. She noted that being a classroom teacher is already a monumental task and that added duties without compensation are pushing talented teachers out. She said that if she felt as though she was a professional treated with respect, that the work she does is dignified and appropriate for her expertise, she would not be making the decision to leave the profession. Kaylee Powers said that both she and her husband are teachers at Cedar Ridge High School and are involved in many extracurricular activities for students. She said she and her husband found that purchasing a home in Orange County was financially impossible on their combined educator salaries, and ultimately purchased in Alamance County. She noted that the commute to Guilford County, which offers higher supplements, is the same as from their current home to Cedar Ridge. She described being at a crossroads between staying in a district they love and pursuing a district that can support their goal of having their own children. Layla Allen said she is a teacher at Cedar Ridge High School and member of the Orange County Association of Educators. She described working as a zip line instructor on weekends and a whitewater raft guide in the summer to afford living in the community she teaches in. She described foregoing staff housing to live out of her car for two months in the summer to retain more of her earnings. She described practicing extreme frugality, including thrifting, repairing her own clothes, buying generic brands,yet still wondering why she shouldn't simply move to Wake or Durham. Alex Kaji, an educator at Hillsborough Elementary School, shared that he had taken a second job in 2019 to supplement his teaching income, eventually burned out, left the profession, and yet felt called back. He described returning as a long-term substitute and then a full-time teacher again. Using an ecosystem metaphor that he teaches to fourth and fifth graders, he warned: "If these resources are not given back into the ecosystem, things living in that ecosystem have two choices. They move away or they die." Sheri Caligan said she is an Orange County resident and Orange County educator. She read testimonies from colleagues who asked to remain anonymous. One 11-year teacher described working multiple jobs to support a family of five, with base pay barely covering main expenses. A second described working 10 additional hours per week at a second job, leaving only enough time to eat and sleep after returning home. A third with 17 years of experience, National Board Certification, and school Teacher of the Year recognition, stated that a management position in a second job would offer a better quality of life than remaining in the classroom. She questioned how the Board could propose a property tax increase while simultaneously cutting school funding and asked that the OCS budget request be fully funded. Adam Reyes, teacher at Cedar Ridge High School, described becoming an educator in 2020 and approaching the end of his sixth year while nearing completion of his first year of graduate school. He stated he was beginning to consider other districts or career paths and acknowledged that earning his degree would likely prompt him to look at more competitive counties. He noted that neither he nor his wife (also an OCS employee) can afford housing in Orange County, and expressed concern that the educators responsible for OCS's growth achievements would leave for other counties. He asked the Board to consider how to ease or postpone that transition. 15 Libby McDaniel, an educator at Hillsborough Elementary School with 18 years of experience, described choosing to move to Hillsborough from a teaching position in Vietnam and taking a $20,000 annual pay cut to do so. Despite having substantial savings from teaching abroad and two incomes, she was unable to find affordable housing in the county for three years. She praised the broader OCS staff, including bus drivers, custodians, office staff, and instructional assistants. Robert DiDomenico said he is a local attorney and on the board for the Chapel Hill Public Library Foundation. He echoed some of the other concerns residents have raised tonight. He said the Chapel Hill Public Library is being cut, but it doesn't represent a big portion of the existing budget. He offered that the recommended library contribution of approximately $631,000 represents 0.19% of the total $325.1 million county budget,yet appeared to be absorbing 16.6% of the identified cuts. He said this disparity is unreasonable. Krysten Heberly, a Chapel Hill resident who moved to the county two years ago when her husband enrolled at LINC, described a period of severe health challenges that made leaving the house extremely difficult. She credited the Chapel Hill Public Library with her recovery, describing how regular visits, first to check out movies, then to write in sunlit areas, then to join clubs, gradually helped her regain mobility and social connection. She noted that she made friends with other young people with disabilities through the library. She acknowledged the need for some cuts but stated the proposed level of reduction was disproportionate and added that other locations are difficult to access for those without mobility. She asked the Board to fund both the library and teachers. Wilson Haworth, son of two NC public school teachers, stated that under current Orange County funding levels, his parents could not have afforded to raise him. He expressed love for the Chapel Hill Public Library as one of the most joyous spaces in Chapel Hill. He expressed disappointment that when budget cuts are needed, the first targets are teaching children and giving out free books. Karen Curtin examined the library funding numbers in detail. She noted that the total library services budget in the county's budget is approximately $3.7 million, of which the Chapel Hill Public Library has historically received just under 17%, or approximately $621,000. She expressed concern that the proposed budget would eliminate all county funding for that library over two years, despite 40% of Orange County residents living in Chapel Hill and approximately 15,000 active library cardholders living outside Chapel Hill's town limits who use the library. She warned that non-Chapel Hill residents would be required to pay for cards if the county discontinued support. She challenged the premise that opening the Southern Branch Library reduced usage of the Chapel Hill library, stating usage statistics remain unchanged. She noted the Chapel Hill Public Library was named one of the top 15 libraries in the country in 2024. She also challenged a figure in materials being distributed, stating the actual library budget is$4.2 million, not$3.49 million as listed. Susan Thananoparnen asked the Board not to decrease the funding to the Chapel Hill Public Library. She cited research on the epidemic of loneliness and political polarization and argued the Chapel Hill Public Library combats both. She noted that friends from rural Orange County and Carrboro are frequent library visitors and stated that the Chapel Hill Library is one of the things she is most proud of in our community. She asked the Board to retain full funding for the library, noting that residents across Orange County pay county taxes and depend on it. Lyndi Schilling said she has volunteered with the Friends of the Chapel Hill Public Library for a year. She described the library's active weekend use from her experience volunteering on Saturdays. She observed at least 50 college students studying on any given Saturday, along with high school and middle school students using study rooms, and young families browsing and purchasing books. She warned that reduced hours would eliminate the Friends' large book sales, which serve parents, children, teachers, and seniors. She opposed any proposal to charge for study room use. David Remington, a 25-year Orange County resident, opened with a personal anecdote about an African American hairstylist who had to commute from Alamance County, telling him, "They don't want 16 us living here." He recalled a March presentation by an Urban Institute consultant to the Board who advised that the best approach to affordable housing is to either provide vouchers or build housing for low-income residents, and characterized the county's proposed housing budget as pretty much flat. He expressed disappointment and noted the home repair backlog. He shared that he had been working with low-income residents on property valuation appeals and offered to share data suggesting systemic undervaluation of higher-end properties, while lower-income properties are disproportionately burdened. He called on the Board to fix what he described as a welfare for the rich methodology for property valuation. Shannon Harvey asked the Board to continue funding the Chapel Hill Public Library. She described her son's use of the Chapel Hill Public Library since he was six months old. She calculated that her son had checked out 985 books over nine years and had never been let down by staff recommendations. She praised the library's improvements over the years, including the elimination of late fees and accessibility improvements such as removing heavy bathroom doors. She noted that 100% of the library's free cardholders are Orange County residents and said that is exactly how she wants her local tax dollars to be spent. Erin Kent said she has two children in CHCCS. She expressed gratitude for the county's continued support of local schools and shared how programs, including the dual-language Mandarin program at Glenwood Elementary, which her daughter participates in, and middle school band, had shaped her children's identities. She acknowledged the difficult budget position the Board faces but urged continued and increased funding in line with school district requests, warning that world language and music programs are among the first to be cut when budgets stagnate. She celebrated the diverse public- school community and asked the Board to preserve and continue supporting both school districts at the level requested. Sutton Yarbrough said she is an 81" grade student at Phillips Middle School. She asked the Board to fully fund public schools. She praised her visual arts teacher and chorus teacher as elective teachers who give her something to look forward to every day. She said her art classes had sometimes been the only reason she came to school. She also spoke on behalf of the Chapel Hill Public Library, noting that many of her friends walk there after school daily to use the Teen Room, and her family makes extensive use of the library's collection. Kim Beer said he has been a resident of Chapel Hill for 35 years. He described his family's use of the library over decades in shaping a love of books and learning in his children, and noted his recent completion of the Orange County Citizens Academy. He praised the quality of county services generally and commended the county for its youth-focused programming. He expressed clear opposition to cuts at the Chapel Hill Public Library, noting that the opening of the Drakeford Library did not reduce usage at the Chapel Hill location, but rather added new users to the system. He called on commissioners to visit the library on a weekend afternoon, and said it is teeming with children running around, looking for books, and curling up in corners. He concluded by connecting library support to support for democracy. Deborah Christie, daughter of a longtime Orange County public school teacher, honored the work of current educators and the Board. She acknowledged the difficulty of choosing between libraries, schools, and affordable housing. She said she would like to look at the efficiency of the county as a whole, and encouraged the Board to look into merging the school systems in the long-term. Maggie Wallace said she is a 5t" grader at Scroggs Elementary School. She spoke on the importance of school nurses in relation to managing her Type 1 Diabetes. She described the 180 additional daily decisions required by her condition and the vital role played by Nurse Amanda and Nurse Cecily in monitoring her blood sugar and administering insulin. She noted that school nurses serve many students with conditions including asthma, food allergies, anxiety, and other special medical needs, and asked the Board to fully fund schools and all school staff. 17 Maria Justice said she is on the board for the Friends of the Passmore Center. She asked the Board to examine what she characterized as a contradiction in the proposed budget: projections show that Orange County residents aged 60 and older will comprise 26% of the population by 2035, yet the budget proposes $3.5 million in capital project funding while allowing existing community needs to go unmet. She expressed opposition to Pay-Go proposals that fund new projects while current operational needs remain unfunded, and asked that the Board not reduce staffing at the Department on Aging, given the Passmore Center's growing population. She also raised a specific concern about the purchase of a $32,000 commercial lawnmower despite the county contracting mowing services. Lori Russell said she will take her seat on the Board of Education in July. She spoke on her own behalf, acknowledging the Board's service and process. She stated she moved to Orange County for the schools and accepted higher taxes as a trade-off for a community committed to excellent public education. She said that Orange County Schools has not raised certified teacher supplements in a decade, while Wake, Durham, Guilford, and Chapel Hill-Carrboro, all within commuting distance, now pay significantly more. She noted that the county's proposed living wage increase to $20.02 per hour for county employees acknowledges that county workers cannot afford to live in Orange County at current wages and argued the same logic must apply to school employees who face the same cost-of-living pressures. She also noted that declining enrollment figures obscure real growth in Exceptional Children (EC) and multilingual learner populations, which come with legally mandated obligations that do not scale with headcount. Lloyd Adler-Johnson said he is an Orange County resident and a paramedic for Orange County. He noted that Orange County is served by eight Advanced Life Support ambulances for approximately 150,000 residents, with only six running 24-hour coverage, and that the county regularly experiences surges in 911 demand requiring mutual aid from Durham, Alamance, Chatham, and Person Counties. He stated that this situation has persisted for years. He reported that previously planned wage increases for EMS personnel have been suspended indefinitely, meaning EMTs earning at or near the living wage will continue to fall behind as costs of living rise. He also noted that paramedics in training who signed contracts with the county in exchange for training now face being contractually obligated to work at lower wages than expected, which he said sets the stage for current workers to leave for better-paying agencies and compounds recruitment challenges. Marie Sykes said she has been an Orange County resident for 2 years, but moved a lot of a child. She described her upbringing as a Navy family, always finding community in libraries. She also noted that her cousin is a part-time staff member at the Chapel Hill Public Library who would face job loss under the proposed budget cuts, and that UNC's library science program, which is one of the top in the world, produces many of the library's staff members. She noted that even charging $65 to each of the 15,000 out-of-town cardholders would make up the deficit from proposed cuts but argued that those most at risk are those who simply cannot afford library cards and would lose access entirely. Rachel Bearman advocated for additional funding for the Department on Aging. She said the Department on Aging serves as an exemplar for the rest of the state on what should be done to serve older adults aging in community. She asked the Board to reconsider eliminating the shared social worker position with DSS. Brian Link said he is the President of the CHCCS Association of Educators, and is a social studies teacher at East Chapel Hill High School. He said he is heartened by the solidarity shown in the room tonight. He acknowledged that the Board has a hard job and that no one should be placed in the position to choose between serving the aging population, providing affordable housing, and funding public schools. He charged the community to stand with the Board of County Commissioners. He thanked the County Manager for his effort in producing a recommended budget document that includes an increase to the schools and thanked the Board for including Pay-Go funding that will continue to fund 18 the building of new schools. He said he and other community members will support the Board in raising the tax rate in order to provide more school funding. Elizabeth Young said she is present on behalf of Justice United. She asked the Board not to cut any tax bill assistance funding in the county budget. Riza Jenkins said she is a resident of Orange County and the Chair of the CHCCS Board of Education. She said the state legislature may have reached a deal on a state budget today, which would include raises and bonuses for teachers and school staff. However, considering the county's current recommended budget, the state's anticipated 8% average increase doesn't align with the county's 2.5 increase in the continuation budget. She said that CHCCS has been doing the work to strategically align school operations to the funding received considering enrollment trends through allocation, adjustments, reductions in force, and a proposed school closure. She said that these efforts have come at a high cost to the community, which impacts students and staff. She said that a budget gap limits the district's ability to reinvest in staff with well-deserved and necessary raises and to innovate in the ever- changing world and workforce demands that exist. She said she appreciates the difficult position the county commissioners are in, but encouraged them to consider the impacts of additional cuts despite all the achievements both school districts were just sharing a few weeks ago. She said that fully funding the continuation request allows the schools to continue to operate at the current level, which increases student achievement through growth in student performance, graduation rates, and programmatic shifts to meet the needs and the various pathways for students after graduation. Additionally, she asked the Board to help keep the promise to the community with respect to the school bond, and fund Pay-Go as much as possible in the budget. She said that any adjustments to the bond and associated Pay-Go have an impact beyond the schools and into the community. A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler,to close the public hearing on the budget and capital investment plan. VOTE: UNANIMOUS The budget public hearing portion of the meeting ended, and the Board recessed for a 5-minute break. The meeting was reconvened at 9:26 pm, and the Board transitioned to a work session. 4. Affordable Housing Advisory Board—Appointments Discussion The Board discussed appointments to the Affordable Housing Advisory Board. BACKGROUND: The Affordable Housing Advisory Board advises the Board of County Commissioners on prioritizing affordable housing needs and assessing project proposals. The board also publicizes the County's housing objectives, monitors the progress of local housing programs, explores new funding opportunities, and works to increase the community's awareness of, understanding of, commitment to, and involvement in producing attractive, affordable housing. The Board of County Commissioners appoints all fifteen (15)At-Large members. The AHAB has decided not to make recommendations for appointments. The following individuals and positions are presented for Board consideration: 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 If the individuals listed above are appointed, no vacancies remain. Tara May introduced the item. The Board agreed by consensus on the reappointments of Matthew Ferguson, Mary Towell, and Alicia Reid. Following discussion of several candidates, the Board reached consensus on appointing the following individuals to fill the vacant at-large positions: Allison Freeman, Giovanna Mollinedo, Christopher Oneal,Josmell Perez, and Anthony Williams. 5. Alcoholic Beverage Control Board—Appointments Discussion The Board discussed appointments to the Alcoholic Beverage Control Board (ABC Board) and considered designating a member as Chair. BACKGROUND:The ABC Board has the authority to buy, sell, transport, and possess alcoholic beverages for the operation of its stores. This Board also adopts rules for the ABC system and has the authority to hire and dismiss employees. The Board of County Commissioners appoints all five (5) At-Large members. The following individuals are recommended for Board consideration: 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 Pursuant to North Carolina General Statute 1813-700, the Board of Commissioners shall designate a member of the local ABC Board to serve as Chair. Melvin Green was nominated to serve as Chair by the ABC Board members. One of the following ABC Board members may be designated as Chair: 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 Tara May introduced the item. The Board agreed by consensus on the reappointment of Melvin Green. The Board also agreed to appoint Melvin Green as chair. Following discussion, the Board reached consensus to appoint Dr. Melinda Pankratz to the upcoming vacant position. 6. Animal Services Advisory Board—Appointment Discussion The Board discussed an appointment to the Animal Services Advisory Board. BACKGROUND: The Animal Services Advisory Board advises the Board of County Commissioners on matters of concern regarding animal issues and animal services in Orange County and works with the Animal Services Director on various policy concerns and issues regarding county animal services. The Board of County Commissioners appoints all thirteen (13) members with representation from various related fields and municipalities. The following individual is recommended for Board consideration: NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE Cathy Munnier Animal Second Full Term 06/30/2029 Welfare/Advocacy If the individual listed above is appointed,the following vacancy remains: POSITION EXPIRATION DATE VACANCY INFORMATION DESIGNATION Owner/Manager 06/30/2027 Vacant since 03/12/2026 Retail Pet Services Tara May introduced the item. She indicated that there are no applicants eligible for the remaining vacancy. The Board agreed by consensus on the recommended reappointment. 7. Arts Commission-Appointment Discussion The Board discussed an appointment to the Arts Commission. BACKGROUND: The Arts Commission recommends strategies to promote the artistic and cultural growth of Orange County, advises the Board of County Commissioners on matters involving the arts, and acts as the granting panel for funding programs available to individual artists and non-profit groups sponsoring arts projects in Orange County. 21 The Board of County Commissioners appoints fourteen (14) At-Large members and one (1) UNC Student who serves a one-year term. The following individual is recommended for Board consideration: NAME POSITION DESCRIPTION TYPE OF EXPIRATION APPOINTMENT TERM DATE Mary O'Dor At-Large First Full Term 03/31/2029 If the individual listed above is appointed,the following vacancy remains: POSITION EXPIRATION DATE VACANCY INFORMATION DESIGNATION At-Large 09/30/2028 Vacant since 04/21/2026 Tara May introduced the item. She indicated that the remaining vacancy occurred recently, and that recruitment is underway for a candidate with a performing arts background to meet state grant requirements. The Board agreed by consensus to appoint Mary O'Dor. 8. Jury Commission -Appointment Discussion The Board discussed an appointment to the Jury Commission. BACKGROUND: The Jury Commission reviews the list of potential jurors and prepares the jury list. One (1) member is appointed by the Board of County Commissioners, one (1) member is appointed by the Senior Resident Superior Court Judge, and one (1) member is appointed by the Clerk of Superior Court. Since this is not a County board, it does not submit an Annual Work Plan. 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) If the individual listed above is appointed, no vacancies remain. Tara May introduced the item. She shared that Clerk of Superior Court Mark Kleinschmidt was supportive of this reappointment. The Board agreed by consensus to reappoint Sylvia Smith. 9. Orange County Juvenile Prevention Council -Appointment Discussion The Board discussed appointments to the Orange County Juvenile Crime Prevention Council (JCPC). BACKGROUND: The N.C. Department of Public Safety partners with the Juvenile Crime Prevention Council (JCPC) to galvanize community leaders, locally and statewide, to reduce and prevent juvenile crime.JCPC members are appointed by the Board of County Commissioners (BOCC). Members represent 22 nineteen (19) different fields/organizations, and the BOCC may also appoint up to seven (7) at-large members. The management of this Board's membership and appointment terms has recently transitioned to the Clerk's Office, so staff is still in the process of gathering age range and township information for each member. Before now, the BOCC approved the JCPC membership as part of the approval of the JCPC Annual Plan each year. Historically,the JCPC has not submitted an Annual Report and Work Plan. To formalize the member roster and set term expiration dates for each position, the BOCC is asked to approve the following: 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 The following individual is presented for Board consideration: NAME POSITION DESCRIPTION TYPE OF TERM APPOINTMENT TERM EXPIRATION DATE Gayane County Commissioner Partial Term 06/30/2027 Chambless Appointee If the individuals listed above are appointed,the following vacancies remain: POSITION DESIGNATION I 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 Tara May introduced the item. She indicated that Gayane Chambless has served on the JCPC for many years in the non-profit position, but, given her recent retirement, has applied to be considered for one of the at-large seats. She also noted that there was a mistake in the packet, and the BOCC Representative should be Commissioner Bedford. The Board agreed by consensus to set the recommended term expiration dates. The Board also agreed to appoint Gayane Chambless. The Board also expressed interest in ensuring that both school districts have representation on the JCPC, and Tara May committed to working toward that goal as additional vacancies are filled. 10. Orange County Housing Authority Board -Appointments Discussion The Board discussed appointments to the Orange County Housing Authority Board. BACKGROUND: The goal of the Orange County Housing Authority Board is to provide decent, safe, and sanitary housing for the low-and moderate-income families in the County. The Board of County Commissioners appoints all seven (7) members. The Orange County Housing Authority Board does not make recommendations for appointments. The following positions are presented for Board consideration: 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 If the positions listed above are filled, no vacancies remain. Tara May introduced the item. She indicated that there is one applicant eligible for the Resident Member position, Heather Nash. Commissioner Bedford expressed concern about Heather Nash's stated intentions regarding serving on the board and suggested continuing to search for other candidates. The Board agreed to continue recruitment for the Resident Member position. The Board agreed by consensus to appoint Camila Hargett to the at-large position. 11. Additional Budget Options for FY2026-27 24 This item was added at the beginning of the meeting. Travis Myren made the following presentation: Slide#1 ORANGE COUNTY NORTH CAROLINA FY2026-27 Operating Budget Options 1St Pass May 12, 2026 Budget Public Hearings Slide#2 FY 2026-27 Operating Budget Options Consideration Schedule BudgetOptions Review • 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 26 General Government Department Discretionary Program Review Community Services May 27 Commissioner Amendments Due at 10:00AM June 4 intent to Adopt Commissioner Amendment Approval ORANGE COUNTY 2 NORTH CAROLINA Travis Myren presented an overview of additional budget options for the Board's consideration. He said that a more detailed slide deck covering discretionary county department programs would be distributed ahead of the next budget work session,with further discussion planned for the May 21st and 26th meetings. 25 Slide#3 FY 2026-27 Operating Budget Options • Prior Strategies to Maintain a Flat Tax Rate County Tax Rate Hisory 120 99.80 100 95.00 88.00 90.30 87.80 87.80 7.80 86.79 86.79 86.34 84.30 85.80 65 80 85.80 85.80 65.80 � 83 77 85.04 83.12 83.58 81.87 80 67.58 83.83 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 M17 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 R. ORANGE COUNTY 3 NORTH CAROLINA Travis Myren said that staff reviewed the conditions that allowed the county to maintain a stable tax rate between approximately 2010 and 2015. He noted that the period included a dramatic reduction of approximately 64 county positions, many of which were vacancies generated in part by a 2009 retirement incentive. Additionally, employee wage increases averaged 1% per year, and current expense increases for the schools averaged 1.5% annually between 2010 and 2014, with a large increase in FY 2014-15 supported by a $10 million fund balance appropriation that would not be available today. Commissioner Portie-Ascott asked about the retirement incentive. Travis Myren noted that staff were updating quantitative analysis on what a similar incentive might look like today and committed to bringing that information back to the Board. He further explained that implementing such an incentive before the start of the fiscal year on July 1st would be challenging, but it could be explored for implementation during the fiscal year. 26 Slide#4 FY 2026-27 Operating Budget Options Prior Strategies to Maintain a Flat Tax Rate Headcount - Reduction of over 64 FTF 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 - 11%increase in FY2014-15 supported by$10 million fund balance appropriation ORANGE COUNTY 4 NORT1I C_ARC3L1NA Slide#5 FY 2026-27 operating Budget Options • Prior Strategies to Maintain a Flat 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 s ORANGE C;RUNTY f NA Travis Myren said debt service obligations were low during that period, declining as a percentage of general fund revenues, and Pay-Go was reduced as a cost containment measure. 27 Slide#6 FY 2026-27 Operating Budget Options • Major Cost Increases for FY2026-27 FY2026-27 New General Fund Expense Totals 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 6 OR NG COUNTY NA Slide#7 FY 2026-27 Operating Budget Options • Budget Option Targets 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) ORANGE COUNTY 7 NORTH CAROLINA Travis Myren said that reaching a 2-cent tax increase scenario would require approximately$5.9 million in reductions beyond what is in the recommended budget, and that a no-tax-increase scenario would require approximately$12.6 million in additional reductions. 28 Slide#8 FY 2026-27 Operating Budget Options Debt Service and Pay-Go Options Debt Se Price increase _$7 8 million • 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 NL7RTH C'_AR[7LiNA Travis Myren said debt service increases are locked in and not adjustable for the current year, and that meaningfully changing the trajectory of debt service growth would require significant reductions to the capital investment plan over the next five to seven years. He said Pay-Go of$3 million for school bond soft costs could theoretically be borrowed, but doing so within the $300 million cap on total school borrowing would reduce funds available for construction. Commissioner McKee asked whether converting Pay-Go to borrowing would save money, noting that either way, $3 million is expended. Travis Myren confirmed that if the $3 million were borrowed on top of the $300 million rather than within it,the cost would increase due to interest payments with no net gain. Commissioner Bedford asked how much is included in the current year for Pay-Go. Travis Myren said the Board approved $5 million. 29 Slide#9 FY 2026-27 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 tal Funding Per-Pupil Funding Current Expense lincrease Base Amount $111,328,011 2.4% 1% $112,"1,291 3.5% 1.5% $112,997.931 4.0% 2% S113,55A,571 4.5% 2.5% $114,114,132 5.0% 3% S 114.667,851 5.5% - Nurse and Student Resource Officer Contract Increase = $123,744 • Total cast of$4.248,550—Discretionary �1 ORANGE COUNTY 9 NORTH CAROLINA Travis Myren said current expense funding is scalable, with each 1% increase representing approximately$1 million. Slide#10 FY 2026-27 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 - Tax Administration Reserve for Tax Assessment Recommendations - $250,000 Delay funding decisions pending actual recommendations Delay Implementallon of recommendations pending new agreements with Towns Living Wage- $500,000 Maintain$18.18 per hour ORANGE COUNTY 10 1VORTH CAR(7LdNA Travis Myren said the county employee wage increase is similarly scalable at approximately $1 million per 1%. He said health insurance and retirement system costs are effectively locked in for FY 2026-27. He said the $250,000 placeholder in the Tax Administration budget could be deferred pending 30 the results of the ongoing assessment review. He said the living wage increase could be held at $18.18 per hour to save approximately$500,000. Commissioner McKee asked how many employees are earning$18.18. Travis Myren said that there are 17 full-time, benefited employees who earn this wage. Otherwise, it's mostly temporary employees in departments like Solid Waste and the Library who are earning the living wage. Slide#11 FY 2026-27 Operating Budget Options County Cost to Continue New Expenses Software as a ServpGe $368,000 — Fuel Costs-$595,400 • Could have some flexibility-continue to monitor fuel prices Recommended increase assumes$S 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 ORANGE COUNTY 11 NCPRTH C/LROLINA Travis Myren said bonds and insurance coverages are effectively non-negotiable, representing $280,000 in increases. He said software-as-a-service costs require time to change for business continuity reasons, so they are also effectively locked in. He said fuel costs of just under $600,000 are being monitored Commissioner McKee asked whether the county could lock in fuel pricing through a long-term contract. Travis Myren confirmed the county buys at market rate and does not currently have a locked-in rate, noting that a six-month lock had been explored two years prior, but the futures market had not allowed for longer commitments. Travis Myren said the Longtime Homeowners Assistance increase can be calibrated to the final tax rate, so if the Board adopts a rate lower than 3.75 cents, that program cost can be adjusted accordingly. 31 Slide#12 FY 2026-27 Operating Budget options • Payments to Municipalities I Payments to Municipalities Recreation Subsidies Chapel Hill-S83,76C $ 125,108 Carrboro -$35,898 • Mebane-$5,450 Chapel Hill Library(additional'/2 of payment) $ 310,662 OTAL $ 435,913 12 ORANGE COUNTY Travis Myren noted a $125,000 annual non-departmental payment to municipalities for recreation programming, which dates to the 1970s in some amount and has been maintained without re-examination. He also noted the remaining Chapel Hill Library contribution as a separate payment within that category. Commissioner Carter said it looks like the Town of Chapel Hill has allocated approximately $5 million for the library budget and asked what proportion of the total budget is provided by the county. Travis Myren said that the county allocation to the Chapel Hill Public Library is around 6% of the total budget. Commissioner Bedford noted that the Town of Chapel Hill's own proposed budget increases library funding and said she wants to ensure clarity for the public, noting that the county's reduction does not eliminate the library's total budget. She observed that residents might be under the impression that the county's decrease in funding represents a far larger cut to library services than is actually proposed. Travis Myren confirmed those points. Commissioner Portie-Ascott asked if the phase-out of library funding was a new concept or was discussed in the past. Commissioner McKee said he had not found definitive language in meeting minutes, but recalled there were discussions over the years that, with the investment in an Orange County Southern Branch Library,the funding for the Chapel Hill Public Library would decrease. Commissioner Greene confirmed she was involved in library discussions as a Chapel Hill Town Council member and recalled that Orange County had advocated for interoperability between the two library systems, and Chapel Hill asked for more county funding to serve users who resided outside of the Town. She said both jurisdictions entered into an MOU from 2012 to 2015, but neither was fully satisfied with the terms, and the agreement was not renewed, and there was a general understanding, though not a formal commitment, that county funding would be revisited upon the opening of a Southern Branch Library. 32 Vice-Chair Fowler said there was a Library Task Force from 2020-2022 that reviewed interoperability and concluded it would not improve access or save money. That task force report was brought to the BOCC, which declined to increase funding and instead continued funding at the current level with approximately 2-3% annual increases, though the Board was unable to sustain the 3% increase every year. Chair Hamilton recalled that the Board had recognized even then that funding both the Southern Branch and the Chapel Hill Public Library at higher levels simultaneously would be difficult. She said libraries are not a mandatory county function. Commissioner Carter said she gets the impression that the people in Chapel Hill would be glad to take on a tax increase to continue library funding. Slide#13 FY 2026-27 Operating Budget Options • County Grant Programs Grant Pr . . 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 Travis Myren briefly outlined the discretionary grant programs that offer potential flexibility, including the Climate Action Grant at $211,000 and the Opioid Grant Program, where reducing the $200,000 community grant allocation could allow general fund contracts qualifying under opioid settlement restrictions to be shifted to that fund, freeing up general fund dollars. Commissioner Bedford asked if the $200,000 in the Opioid Grant Program funds any county positions. Travis Myren said no. Commissioner Greene asked for clarification on how the opioid grant reallocation would work. Travis Myren explained that three contracts and other expenses currently funded by the general fund could qualify for opioid settlement funding. Commissioner Portie-Ascott asked if any of the opioid settlement money is being used to match federal dollars. Commissioner Greene clarified that the opioid settlement funds include money from the companies that created the opioid crisis. Travis Myren said this $200,000 goes to community organizations as recommended by the Opioid Advisory Committee. He said other opioid funds go toward related county-provided services. 33 Commissioner Greene said she asked for clarification because there are limitations on what the opioid settlement money can be spent on. Travis Myren said that Article 46 programs, including the Small Business Grant and Agricultural Grant Programs, could be redirected if the Board amended its resolution governing their use. Commissioner McKee said how impactful the Small Business Grant Program and Agricultural Grant Program have been. Slide#14 FY 2026-27 Operating Budget Options • Outside Agencies and MOE Funding to Opioid Settlement Fund Opioid Eligible Outside Agency and MOE Freedom House $ 242,449 CJRD MH Diversion Coordinator $ 105,197 Reentry House Plus $ 27,500 Oxford House $ 7,290 �OTAL $ 382,436 14 ORAN GE COUNTY Travis Myren said the contracts with the entities listed on this slide are currently funded with general fund money and may qualify to be funded by the opioid settlement fund. He said there is one county position that could also qualify. Commissioner Bedford brought up the point that the opioid settlement funding will eventually run out. Travis Myren confirmed that the funds will be available for around 10 years, more or less. Commissioner Bedford noted that some of the opioid settlement money has been earmarked for Crisis Diversion Facility operating expenses. Travis Myren confirmed that would be a potential tradeoff. 34 Slide#15 FY 2026-27 Operating Budget Options • Summary of Pass #1 Options without Changes in Occupancy Tax and Article 46 0 Summary of Options Pay-Go Increase $3,000,000 Current Expense Increase @ 2.5°!° $2,800,000 SRO-Nurse Increase Contract Increase @ 3% $123,744 Employee Wage Increase @ 2% $1,860,000 Tax 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 TOTAL $9,179767 ORANGE COUNTY 15 NORTH CAROLINA 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 OutsideCategory Visitors Bureau Arts Commission ersonnel $730,737 $439,931 $0 $1,170,66 perations $1,219,017 $388,030 $65,756 $1,672,80 on-Occupancy Tax Revenue 217 000 293 489 0 510 489 et Occupancy Tax usage $1 732 754 $534 472 $65 756 $2,332,98 ORANGE COUNTY 16 NORTH CAROLINA Travis Myren noted that while state law requires only that 10% of occupancy tax collections be dedicated to tourism-type activities, and approximately $233,000 of the $1.7 million currently goes to the Visitors Bureau, the Board could decide to redirect additional funds to general fund activities. He noted that the Town of Chapel Hill has removed its remaining $200,000 contribution to the Visitors Bureau in its current recommended budget and is adding a destination coordinator to its Economic Development Department, overlapping with a role currently played by the Visitors Bureau. Commissioner Greene added that last year the Town of Chapel Hill removed $300,000, and proposed $200,000 this year,for a total decrease of$500,000 over two years. 35 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 Schocls-67.12% Durham Tech Scholarships—8.97% Pre-Kindergarten programming--2.1?% Durham Public Schocls Debt Service-21.74% Resolution currently in place would need to be modified ORANGE COUNTY 17 NORTH CARCrLINA Travis Myren briefly mentioned Article 46 and noted that Durham County uses those funds for a variety of programs, including pre-K and additional public-school activities. Commissioner Bedford asked about the county's anticipated timing gap on Article 46. She noted that she recalled seeing that the fund would be in the negative for around two years. Travis Myren confirmed that because some job creation targets have not been met, Article 46 is currently in a positive balance, and that this would be addressed during the next work session. 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 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 Vr� ORANGE COUNTY 18 NORTH CAROLIIVA 36 Slide#19 Questions? ORANGE COUNTY N-1-- Commissioner Commissioner Bedford said she would prefer for commissioner budget amendments to be posted as they are submitted for additional transparency, as opposed to all being posted on May 20tn She noted that she and Commissioner Fowler intend to propose an amendment to restore Chapel Hill Library funding and want the public to be aware of it. Commissioner Carter added that she is planning to post an amendment to reinstate the step increase funding and will be looking for offsets. After discussion, the Board agreed that budget amendments would be posted when they are received by staff. Commissioner Portie-Ascott asked if there had been any impact on the county due to the passage of"Iryna's Law." Travis Myren said he was not aware of any impacts, but would check and follow up with the Board. Adjournment A motion was made by Chair Hamilton, seconded by Commissioner Bedford, to adjourn the meeting at 10:18 p.m. VOTE: UNANIMOUS Jean Hamilton, Chair Recorded by Tara May, Deputy Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board