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HomeMy WebLinkAboutMinutes 05-26-2026-Budget Work Session 1 APPROVED 6/16/26 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION May 26, 2026 7:00 p.m. The Orange County Board of Commissioners met for a Budget Work Session on Tuesday, May 26, 2026, at 7:00 p.m. at the Whiffed Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners Marilyn Carter,Jamezetta Bedford,Sally Greene, Earl McKee(arrived at 7:04 pm), and Phyllis Portie-Ascott COUNTY COMMISSIONERS ABSENT: None COUNTY ATTORNEYS PRESENT: Staff Attorney James Bryan 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 except Commissioner McKee. 1. Discussion of County Departments' FY 2026-27 Recommended Budgets The Board reviewed and discussed recommended departmental budgets. BACKGROUND:The County Manager presented the FY 2026-27 Recommended Operating Budget at the Board's May 5, 2026 Business meeting. Since then, the Board has conducted one public hearing on May 12,2026 to receive residents'comments regarding the proposed funding plan. At its May 14,2026 budget work session, the Board discussed recommended FY 2026-27 Outside Agencies funding and recommended budgets for Chapel Hill-Carrboro City Schools Board of Education, Orange County Schools Board of Education and Durham Tech Community College. At its May 21, 2026 budget work session, the Board discussed the recommended FY 2026-27 budgets for the Fire Districts, as well as departments in the Human Services and Public Safety functions. This work session offers the Board an opportunity to review and discuss the recommended budgets directly with County departments and the Sportsplex within the structure of Functional Leadership Teams, including operations, capital, and department fee schedule change recommendations. Functional Leadership Teams: The following Functional Leadership Teams are scheduled to attend this work session: Support Services: • Asset Management Services • Community Relations • Finance and Administrative Services • Human Resources • Information Technologies 2 General Government: • Board of County Commissioners • Board of Elections • County Attorney • County Manager • Register of Deeds • Tax Administration Community Services: • Animal Services • Cooperative Extension • Environment, Agriculture, and Parks & Recreation • Economic Development, including Article 46 Sales Tax • Visitors Bureau • Planning and Inspections • Solid Waste • Sportsplex • Transportation Services Kirk Vaughn, Budget Director, made the following presentation: Slide#1 ORANGE COUNTY NORTH CARC3LINA Budget Work Session #3 General Government, Support Services, and Community Services May 26, 2026 Board of Orange County Commissioners 3 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 CIP Tax Rate All Amendments to date ORANGE COUNTY 2 NORTH CAROLINA Kirk Vaughn said staff updated the debt model since the original CIP submission, reconciling it with the recommended budget, which carried slightly higher figures and correspondingly improved debt- to-revenue metrics. He confirmed that the costs associated with the 2700 Homestead Road project had been removed from the model. He said the table for each scenario includes all debt costs, Pay-Go costs, and general fund revenue ratios across several scenarios. Kirk Vaughn noted that while the full 10-year impact will be shown, the Board's stated goal of delaying rather than eliminating projects made it most useful to focus on the first four years of the model. 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% 2.0U 0.89t 028 13.28% 1.02$ 0.87¢ — Accounts for Staff Amendment to remove 2700 2029 16.79% 4.454 1.00t Homestead Road Project 2030 18.10% 1.624 2031 17.88% - - Results in Total Debt plus Pay-Go Tax 2032 18.16% 0.064 Increases of 11.86 cents through FY2029-30 2033 19.23% 1.624 2034 19.04% - 2035 18.18% 2036 17.28% otal Impact 10.784 2.76� ORANGE COUNTY 3 N"W"I CAROLINA Kirk Vaughn described the baseline scenario as reflecting approximately 11.86 cents in combined debt and pay-go impact, inclusive of the recommended budget's incremental tax increases. 4 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 027 12.50% 2.014 0.894 — County has$6.4 million in HVAC Projects planned for the 2028 13.281/. 1.021ll: 0.874: Whitted Facility from FY2026-27 through FY 2029-30 Q29 16.78% 4.444: 1.00� — 28%of Whitted is used for the Dental and Medical Clinics and 2030 18.08% 1.610 eligible 10 be funded with Medicaid Maximization(Med-Max) 2031 17.85% - Revenue 2032 18.13% 0.014 2033 19.19% 1.650 — 28%of project cost=$1.8 million of project cost funded using 2034 19.00% - Med-Max revenue 035 18.15% - - Reduces Med-Max balance in Capital Budget to$10 million 2036 17.25% - otal Impact 10.744: 2.764 — Results in Total Debt plus Pay-Go Tax Increases of 11.a4 cents through FY2029-30 a ORAN GE rll COUNTY ROLINA Kirk Vaughn reviewed an amendment submitted by Commissioner Bedford,which proposed using a portion of accumulated Medicaid Maximization (Med-Max) revenue to offset a substantial set of HVAC projects at the Whitted Building. Staff determined that approximately 28%of the Whitted facility's square footage is occupied by dental and medical clinics, making that portion eligible for Med-Max funding. Commissioner Carter asked what Med-Max Revenue is. Kirk Vaughn explained that Medicaid Maximization is a state revenue source received for operating certain medical and dental services. He noted that the county has been accumulating this balance over time rather than applying it all to the operating budget, partly in anticipation of the Southern Human Services expansion. With that bucket now considered full, the County Manager's recommended budget already includes redirecting more Med-Max revenue to operations going forward. Drawing down the existing balance for the HVAC project would reduce the Med-Max balance from approximately$12 million to about$10 million over four years. He said the tax rate equivalent impact would be modest — dropping from 11.86 to approximately 11.84 cents. Commissioner Portie-Ascott asked what tax rate equivalent figure means. Kirk Vaughn clarified that it represents the fiscal pressure placed on the operating budget in that year due to debt and Pay-Go obligations.The Board would then determine how to mitigate that pressure, whether through operating reductions or other means. Commissioner McKee arrived at 7:04 pm. 5 Slide#5 Capital Investment Plan Fowler Amendment 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 miller it 2028 13.15% 1.024 1.024 Recommended FY2026-27 Budget to$6.5 million 2029 16.73% 4.38t - 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% 1.70t 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 Totallmpact 10.734 2.804 ORANGE COUNTY 5 N014 t t I CAROLINA Kirk Vaughn described Commissioner Fowler's amendment,which proposed accelerating the pay- go phase-in schedule. Rather than phasing in at 3.5, 6.5, and 10 cents over three years, the amendment would move to 6.5 and 10 cents over just two years. He explained that while this would increase the pay- go tax obligation in the current year, it would eliminate a compounding pressure point in FY 2029,where, under the current baseline, a large debt increase and a pay-go increase would coincide. By front-loading the pay-go phase-in, he said the county would also be able to borrow the$300 million bond authorization later,generating a small savings in debt equivalency over the early years. He said this scenario reduces the four-year tax equivalent to 11.73 cents. Slide#6 Capital Investment Plan Option 1 Delay FY2027-28 Projects to FY2028-29 Year to GF Debt Tax Rate Pay Tax Revenues 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 0.870 FY2028-29 2029 15.68% 3.234 1.004 • Adds$2 million it 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 FY2027-213 and Constructlon 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 otallmpact 10-831t 2.764 - Results in Total Debt plus Pay-Go Tax Increases of 9.79 cents through FY2029-30 ORANGE COUNTY 6 N(W 11 1 (.Ali()I I NA 6 Kirk Vaughn presented the first staff-generated option for potential Commissioner amendments. This option focused on delaying projects currently scheduled for construction in Year 2 (with design in Year 1) by a single year, with the primary goal of reducing the tax equivalent rate increase in FY 2029. On the school side, this would include delaying the Estes Hills project by one year, resulting in approximately $2 million in additional costs due to inflation at a 3% rate. On the county side,four large-scale projects would similarly be delayed one year: Affordable Housing, the Historic Courthouse, the first phase of the Viper radio system, and the Emergency Services Headquarters. He said this option reduces the four-year tax equivalent to 9.79 cents. Slide#7 Capital Investment Plan Option 2 Project loriginal Year INew Year Delay Projects throughout CIP Plan FY 20 FY 20 Affordable Housing FY 2030-30-31 31 29 FY 2031-31-3232 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 1-32 ES Substations FY 03 -31 FY 2 F 3 Y 035-36 Out off CIP CIP — Delays all tranches of Affordable Housing,the Historic -29 FY 20-28 28 Court House,both VIPER phases,Central Recreation VIPER FY FY z022027-28 FY 2028-31 facility,second and third ES Substation all out 1 year. Emergency Services Headquarters out 4 years, ES Headquarters FY 2027-28 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 7 ORANGE COUNTY Kirk Vaughn described a second, more aggressive option.This option would not only delay Year-2 projects but would also push back large-ticket items in both the school and county CIP plans by one year, and in two specific cases (the Emergency Services Headquarters and the Rogers Road Community Center) would delay those projects by multiple years. Kirk Vaughn explained that those two facilities are not in poor condition currently. He said the Emergency Services project is about expanding into a larger, more secure space and then repurposing the existing facility for county administrative staff. The Rogers Road facility can also continue to serve its current function for an extended period. Commissioner Carter asked for more information on why the Emergency Services and Rogers Road projects would be moved out. Kirk Vaughn clarified that the reason for pursuing those two projects is not driven by the current buildings' condition. He reiterated that the Emergency Services Headquarters expansion is aimed at a capacity and security upgrade, not an emergency replacement.The existing building remains functional. Commissioner McKee asked what would be done with the space vacated when county employees move out of the Revere Road facility. Kirk Vaughn said that staff currently at the Revere Road facility would move to the existing Emergency Services headquarters and then Revere Road would be surplus property available for affordable housing purposes. He said that the property had previously been discussed as a potential site 7 for affordable housing. He clarified that this would not be a county-built project and would more likely be offered through the county's grant and land-offer processes. Commissioner McKee said using the property for that purpose would increase overall spending. Kirk Vaughn said that grants and other revenue sources could be leveraged for affordable housing. Commissioner McKee added that converting the property to affordable housing rather than selling it outright would effectively reduce county assets. Kirk Vaughn acknowledged there would be a loss of revenue potential if the Board chose to dedicate the land to affordable housing rather than conducting a fair market sale. He emphasized that this decision would be several years down the road and would be a separate Board discussion at that time. Commissioner Greene said that for years, the central need of nonprofit affordable housing developers has been access to land. She recalled that a couple of years ago, the county went through a process of inventorying all available county-owned land and offering it to nonprofits. She described the Revere Road property as well-situated and said that if the Board was going to remain true to its stated values on affordable housing, it would be an ideal use for that parcel. Chair Hamilton said the immediate task is focused on the next four years and how capital investment timing could be managed to smooth tax rate impacts. Commissioner Carter noted that while the discussion was largely focused on future years, some of the options before the Board would influence the current year's tax rate, depending on which scenario included Pay-Go adjustments for FY 2027. Kirk Vaughn confirmed that only the Pay-Go will impact the tax rate forthis year,not capital project timing decisions directly. Commissioner Bedford stated that if the Board intends to delay school projects,the school districts needed to know as soon as possible because those decisions would affect which schools they might close and their overall budget planning. She encouraged commissioners to make thoughtful decisions rather than simply deferring for three years, acknowledging that those decisions would be revisited each year. Chair Hamilton reminded the Board that if any Commissioner wished to submit a budget amendment,the deadline is 10:00 am tomorrow. Slide#8 Capital Investment Plan Option 2 Delay Projects throughout CIP Plan Year Rea to GF Debt Tax Rate Tax Revenues Equivalent Rateto Equivalent - impact on Debt to General Fund Revenue Ratio 2027 12.50% 2.01$ 0.894 2028 13.28% 1.020 0.87t - impact on the Tax Rate Equivalent for Debt 2029 15.66% 3.2N 1.000 2030 15.91% 0.18� - Impact on Tax Rate for the Pay-Go Phase-In included 2031 16.70% LON in the Manager's Recommended CIP 2032 15.98% 2033 17.01% - 203a 18.52% 2.12Q 2035 18.57% 0.401 2036 17.73% - otal Impact 9.93� 2.764 B ORANGE COUNTY CA 8 Kirk Vaughn said the next option would reduce the four-year combined debt and pay-go tax equivalent to 9.17 cents. He added that even though the same list of projects would still be completed, the delay in their timing reduced total debt issuance over 10 years, keeping the county below the 10-cent debt threshold and maintaining the debt-to-general-fund-revenue ratio below 19% throughout the planning horizon. Slide#9 Capital Investment Plan All Current Amendments and Option 2 to delay projects throughout the Plan Year DS to GF Debt Tax Rate Pay-Go Tax Revenues Equivalent Rate 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 ORANGE COUNTY 9 NORTH CAROLINA Kirk Vaughn also noted that if the two previously submitted commissioner amendments (from Commissioner Bedford and Commissioner Fowler) were layered onto Option B, the combined four-year tax equivalent would fall slightly further to 9.08 cents. Kirk Vaughn flagged one additional topic he had been asked to address before moving to the next part of the presentation,which was about deferring or delaying school Pay-Go. If school Pay-Go is reduced significantly over the next seven years, the county would likely need to ask the school districts to scale back their plans. If a commissioner proposed reducing Pay-Go as a one-time measure to fund an ongoing operational expense,that would create a structural deficit the following year unless the Pay-Go reduction was made permanent. He said permanent reduction from the$10 million target could accommodate some operating budget increases without a tax increase but would require a return to school districts to renegotiate the bond plan. He also flagged the risk posed by a potential state constitutional amendment that could cap the percentage by which local governments could increase taxes year over year. If the county were far below its Pay-Go target at the end of the current year and such an amendment passed, it might be very difficult to incrementally increase Pay-Go to reach that target under a new statutory constraint. 9 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 Travis Myren continued the presentation: Slide#11 Board of County Commissioners FY 27 Rec.Revenues FY 27 Rec. Expenses An"FE $0 $960,521 $960,521 71 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 ORANGE COUNTY 11 NORTH CAROLINA Travis Myren noted that the Clerk to the Board is a mandated function. 10 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 ORANGE COUNTY 12 NORTH CAROLINA Travis Myren said that budget changes included reductions in live-stream and cable television provider costs, minor operational reductions, an increase in dues primarily attributable to North Carolina Association of County Commissioners (NCACC) membership costs, and a small increase in department supplies for transcription software. 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% 98.0% 97.5% 97.0% 96.5 Goal:100%of contracts posted to document management software within two weeks of completion 96.0% 95.5% 95.0% FY2022-23 FY2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Budget ORANGE COUNTY 13 NORTH CAROLINA 11 Slide#14 Board of Elections KFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost ($110) $1,247,661 $1.247.6 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 C;AROLINA Travis Myren noted that the Board of Elections is a mandated function. 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 WOIR7'14 C:AROLINA Travis Myren said that there is only one scheduled election in FY 2026-27. As a result, revenue collected from municipalities for election services would decrease by $102,000, with a corresponding decrease in operational costs, primarily in temporary personnel. 12 Slide#16 Board of Elections — page 91 Voter Registration Processed 100,wo 90,000 80,000 70,000 60,000 55,224 50,0cc 43,191 40,000 30,851 30,409 30,000 30,000 19,708 18257 20,000 19,644 20,000 10,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 �1 ORANGE COUNTY 16 NORTH C:AROLINA Travis Myren said that the number of voter registrations processed in the current year was on par with comparable non-presidential election cycles, referencing FY 2021-22 as a comparable year at approximately 30,000 registrations. Slide#17 County Attorney FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost - $989,130 $989,130 General Fund FTEs: 4.5 Basis for Investment: Legal Mandate; Operational Support ProgramslServices Provided: • Legal Representation/Advisement for the County • Legal Support for Departments • Contract Drafting and Review 17 ORAN GE�AROLINA T COUNY Travis Myren said the County Attorney is a mandated function. 13 Slide#18 County Attorney — page 126 - Base budget reduction-$(344) Savings from switching to contracted student intern work Legal Review Completed in<10 Days 100 90�° Staffing ievels ea°l° impacted review time 70% 60% 50% 40% 30% 20% 10% 0% FY2023-24 FY2024-25 FY2025.26 P,.j FY2026-27 Budget ORANGE COUNTY 18 NORTH CAROLINA Travis Myren reviewed the performance measure, tracking the percentage of legal reviews completed within 10 days or less. He noted that performance was somewhat lower in FY 2025-26 due to temporary staffing level challenges in the office, but was expected to return above 90%in the coming year. Slide#19 County Manager—Arts Commission FY 27 Rec. Revenues FY i-7 Rec. Expenses Net County Cost in Visitors I I 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 NOR'Fl I CAROLINA Travis Myren said that the Arts Commission is discretionary and funded through the occupancy tax, appearing in the Visitors Bureau fund. 14 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 _.ftm=r_6 � ORANGE COUNTY 20 NORTH CAROLINA Travis Myren said the Budget Office is a mandated function. Slide#21 County Manager— Manager's Office FY 27 Rec. Revenues N 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 Travis Myren said that the County Manager is a mandated function. 15 Slide#22 County Manager-- Strategic Planning FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $154,362 $154,362 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 ORANGE COUNTY 22 NORTH CAROLINA Travis Myren noted that Strategic Planning is discretionary. 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 Travis Myren said that Sustainability is a discretionary function. 16 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 Upfil 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 Travis Myren said operational reductions across the County Manager's Office, Sustainability, Strategic Planning, and Budget totaled $13,600. In the Arts Commission, a half-FTE was reduced to help address the shortfall in the occupancy tax/visitor's bureau fund. An increase was included for temporary personnel,specifically an administrative support role and an events planner who was brought on mid-year via budget amendment and was now carried forward. Travis Myren highlighted the addition of a ceramic studio as the Arts Commission returns to the Eno River Arts Mill, noting that the revenue generated by the ceramic studio exceeds the cost of the studio manager and generates sufficient funds to cover facility upfitting. All costs are funded through occupancy tax, donations, or contributions from the Arts Alliance, with a net cost to the Visitors Bureau fund of approximately$534,000. 17 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 Travis Myren said that this slide responds to a question raised by Commissioner Carter regarding what county investments, both in the operating budget and CIP, contribute to sustainability goals and the Eno Hazard Mitigation Plan. He walked through a list of investments, noting that the first four items appear in the operating budget, while additional amounts are reflected in the 10-year CIP. Slide#26 County Manager— page 129 • Budget Amendment#813 approved on April 7th included funding for Solar installations. Solid Waste Administration Building-$140,333 • Whitted Building-$323,976 • Sportsplex 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 C,AWDLIWA 18 Travis Myren referenced a budget amendment approved in April that included funding for solar installations at several county facilities, with 30% of those costs expected to be offset through the federal direct pay program, which was part of the Inflation Reduction Act. He noted that the program had since been largely repealed, limiting future availability. He further referenced the county's Sustainable Building Policy, which requires review of sustainability features in all significant repairs, renovations, or new construction. Slide#27 County Manager - page 129 Number of Class Participants Served at Eno Arts Mill* 1,000 900 879 80o Wo 737 7S0 698 700 600 we 400 300 232 200 100 MEMEL— FY2022-22 FY2022.23 rY2023-24 rY2024-75 rY2025-26 Fraj rY2026-27 Budget Classes were offered at alternative locations due to flooding at Eno Mill in the summer of 2025 ORANGE COUNTY 27 NORTH C:AROLINA Travis Myren noted that the Arts Commission, despite being displaced from the Eno Arts Mill following Tropical Storm Chantal in the summer of 2025, maintained participation of over 700 class participants and is projecting 800 for the upcoming summer programming season as it returns to the Mill. 19 Slide#28 Register of Deeds FY 27 Rec.Revenues FY 27 Rec.Expenses Net County Cost $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 _ ORANGE COUNTY 28 NORTH CAROLINA Travis Myren said the Register of Deeds is a constitutionally mandated position. 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 CARC LINA Travis Myren explained that excise tax revenue,which is charged when property is bought or sold, is recognized in this budget, and is driven by both the number of transactions and the price of those transactions. He indicated that staff is not projecting significant growth in excise tax revenue for the coming year due to general economic uncertainty and the potential for cost pressures to moderate real estate market activity.The budget reflects a modest$50,000 increase in projected excise tax revenue. He 20 recommended eliminating a vacant half-time position that had been unfilled for an extended period, offsetting that reduction with an approximately $20,000 increase in temporary personnel to continue archiving historic documents, and a small inflationary increase in operational expenses. Commissioner Portie-Ascott asked whether the Governor's recent executive order to promote affordable housing might stimulate new construction activity and affect excise tax revenue projections. She said she thought there was some mention of incentives for counties. Travis Myren said he will look into that and follow up. Slide#30 Register of Deeds — page 225 Register of Deeds Revenue $3,SOO.ODD $3.3M $3,000.000 $2,51 ,DDD Ez.SM D $2.3M $2.3M $2.2M $2 oM $2.2M $2.1M $2,000,000 $2.OM $2.OM $2.OM $2.OM $2.OM •Budgel •AcWals $1,500,00D $1,000,000 $500,000 $0 2021 2022 2023 2024 2025 2026 Estmate 2027 R.O ORANGE COUNTY 30 NORTH C:AROLINA 21 Slide#31 Tax Administration — Land Records FY27Rec. Revenues FY 27 Rec. Expenses Net County Cost $0 $1,164,128 $1,164,128 General Fund FTEs: 9.000 Basis for Investment: Legal Mandate ProgramslServices 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 ORANGE COUNTY 31 NORTH CAROLINA Travis Myren said that land records is a mandated function responsible for tracking all parcels and maintaining road name records. Slide#32 Tax Administration — Revaluation FY 27 Rec. Revenues IFY 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 CAROLINA Travis Myren pointed out that a review had revealed that the county has both a Revaluation Division and an Assessor Division, which functionally perform the same work. He noted this may be a 22 legacy of an older statutory structure and said staff would investigate whether consolidating the two divisions would be appropriate. 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 1/8th of all parcels exempted or deferred from taxation • Serve as Clerk to the Board of Equalization and Review ORANGE COUNTY 33 NORTH CAROLINA Chair Hamilton asked whether the Revaluation Division,which has three FTEs,operates separately from the Assessor's Division, which has 19 FTEs. Travis Myren confirmed that while the two divisions are named separately, their staff all work together on the same assessment functions, and the distinction is in name only. Slide#34 Tax Administration — Tax Collector/Revenue FY 27 Rec.Revenues .1 FY 27 Rec.Expenses Net 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 COUNTY 34 NORTH CAROLINA 23 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. ORANGE COUNTY 35 NORTH C_:AROLIWA Travis Myren said Budget changes in the Tax Collector Division include a $54,000 increase in revenue collected from the towns, driven by municipal tax rate increases that raise the collection base on which the county's fee is calculated. A $250,000 placeholder is included for work being done by GAR Associates for the Tax Assessment Work Group.Temporary staffing and overtime are recommended to be reduced, as they were elevated during the revaluation and appeals period. Minor operational reductions were also noted. Slide#36 General Government • Assessed Home Value by Tax Jurisdiction — Based on 2025 Revaluation — NCDOR notice Indicates median sales assessment ratio 95.6% Jurisdfetion #of Qualified Sales' 2025 Median Assessed Value Median Sales Price" Assessed Value as%of Sale Price Carrboro 40 $574,350 $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 $410,450 $440,000 93% (unincorporaredt Clualified sales from January 2025 through May 2026 Median sale price of Qualified Sales �1 ORANGE COUNTY 36 NORTH CAROLINA Travis Myren reviewed a table showing sales ratio data for each jurisdiction in the county,including the number of qualified residential sales, the median assessed value based on the 2025 revaluation, the 24 current median sales price, and the resulting sales ratio. He noted that the highest volume of qualified sales was in unincorporated Orange County at 110 transactions, and that this jurisdiction also showed the weakest sales ratio, meaning that current sale prices are outpacing assessed values more there than in other jurisdictions,which is a factor that can trigger revaluation requirements. Slide#37 Support Services Functional Leadership Team Asset Management Services Community Relations Finance and Administrative Services Human Resources Information Technologies ORANGE COUNTY 37 NORTH CAROLINA Slide#38 Asset Management Services Department -Administration Funding Source FY 27 Rec. FY 27 Rec. Net County Cost 11 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 ORANGE COUNTY 38 NORTH CAROLINA Travis Myren said the administration division supports the rest of the department's work, including room reservation management,which is a discretionary service that generates some revenue from outside community groups renting county facilities. 25 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 39 ORANGE RrH COOUNA Y Slide#40 Asset Management Services Department — Facility Maintenance FY27 Rec. Revenues FY 27 Rec. Expenses 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 40 COUNTY NA 26 Slide#41 Asset Management Services — 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 Travis Myren said the recommended budget changes include a small increase in facility rental fee and lease revenue, as well as an accounting change required by updated accounting rules, under which revenue from the well lease and from the Dixon House must now be recognized in the general fund rather than elsewhere. He described new building operating costs for the Southern Ranch Library and Skills Development Center, the largest of which was for a security guard. He explained that security concerns had been identified, particularly around the opening and closing of the Drakeford facility, and that the $47,000 security guard expense had been reallocated from the Eno River Parking Deck, where the need was judged to be less pressing, to the Drakeford. Chapel Hill-Carrboro City Schools would provide a one- time recurring capital contribution offsetting some of that cost. Additional changes included funds for small equipment replacement, building,and generator service costs. He noted a significant recent increase in building repair costs, driven primarily by HVAC failures. He said that the number of generators being maintained by the county has increased as new facilities have come online, though that cost is expected to stabilize. 27 Slide#42 Asset Management Services — page 83 Utility Costs $2,000,000 $1.800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $000.000 $600,000 $400,000 $200,000 $0 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Proj FY2026-22 B.dg. .ELECTRICITY •WATER •NATURALGAS 42 ON ORTH CAROL COUNTYNGE INA Travis Myren explained that changes in commercial electricity rate plans were expected to result in modest decreases in electricity costs. Slide#43 Asset Management Services — page 83 Total Square Footage Managed by Asset Management Services 1.200.000 1.000,000 s00,000 600,000 400,000 2a', FY2020-21 FY2021-22 FY2022-23 F2023-24 M024-25 ``FY2025-26 ORANGE COUNTY 43 NORTH CAROLINA Travis Myren said that with the addition of the Drakeford facility and a new EMS station,the county now maintains over one million square feet of county-owned space. 28 Slide#44 Asset Management Services — page 83 Repair and Generator Costs $800,RD0 25 $700,000 20 $600,000 5500,000 15 $400,000 $62K 0 S300=0 $200,000 5 S100=0 $0 0 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Pm FY2025-27 Rodgel —BUILDING REPAIRS —GENERATORS —Maf GENERATORS 44 ORANGE RrH COOUNA Y Slide#45 Asset Management Services — page 83 %of Work Orders Completed within Time Standards 60% 74% 75% 72% 71% 70% 70% 60% 60% — 50% 40% 30% 20% 10% 0% FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 PPj FY2026-27 Budgeted 45 ORANGE COUNTY NA 29 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 CAROLI14A Travis Myren said that Community Relations is primarily a discretionary function, except for coordinating open records request responses,which is a mandated responsibility. 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 30 Travis Myren noted that a Communications Manager position from the Health Department is recommended to move into Community Relations, along with approximately $22,000 in expanded advertising for digital, print, and radio outreach. Slide#48 Community Relations — page 116 Social Media Outreach Metrics scoo ` I soon aaa0 won 3 2000 r E Iwo 0 2022 23 2023.2d 2624-M 202A.M 2025.26 P.j-,e PO&&alga —�Fncenc —insiagiam —Y-T,be —Newsle•.io ORANGE COUNTY 48 NORTH C_AROLINA Travis Myren reviewed a chart showing growth in the county's social media following across platforms,with Facebook remaining the strongest platform,followed by the county newsletter, Instagram, and YouTube. 31 Slide#49 Finance and Administrative Services —Administration 7 $1,768,113 $1,768,113 General Fund FTEs: 11.000 Basis for Investment: Legal Mandate; Operational Support ProgramslServices Provided: • Annual Comprehensive Financial Report • Accounting and Auditing Services • Payroll,Purchasing,and Accounts Payable • Debt Administration ORANGE COUNTY 49 NORTH CAROLINA Travis Myren said that Finance is a mandated function responsible for producing the annual financial report, managing accounts payable and receivable, payroll, debt administration, centralized telephone costs, postage, and stormwater fees charged by municipalities to county-owned facilities. Slide#50 Finance and Administrative Services — Central Services FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost Is $976,500 $976,500 General Fund FTEs: 0.000 Basis for Investment: Operational Support ProgramslServices Provided: • Centralized Telephone, Postage,and Duplicating Costs for County Departments • Centralized Stormwater Fees for County Departments ORANGE COUNTY 60 NORTH CAROLINA 32 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 dueslcertifications 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 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 52,50.,Wo $2,362,680 $2,219,323 $2,000,000 $1,809,873 $1,788,661 $1,800,000 $1,500,000 $1,158,576 61,000,000 $800,469 $79B,663 $500,000 $437,172 $17,708 $ 6 84,80 $0 2C17 2U1B 2019 2020 2021 2022 2023 2024 2025 2026 T.-Oat. 2027R- 5z ORANGE COUNTY NORTH CAROLINA Travis Myren noted that Finance continues to monitor the county's investment portfolio and that, given interest rate uncertainty, projections for investment income had been kept flat. 33 Slide#53 Finance and Administrative Services — page 172 Electronic Payments as Percent of Total Disbursements 100.0% 90.0% 800% 76.SYu --_ ];J. 780 o 70.0% 60.0% 50.0% 40.0% 90.096 20.0% 10.06 00% FY23-N FY24-25 FY25-26 P,.j FY26.27 8WOW 53 ORANGE COUNTY Travis Myren highlighted that 78%of vendor payments are now made electronically, up from lower levels in prior years. Commissioner Portie-Ascott asked whether electronic payments also covered landlords receiving funds through the county's eviction diversion program. Travis Myren said yes, but noted that there are some smaller landlords who do not receive funds this way. Slide#54 Human Resources Department— Human Resources FY 27 Rec.Revenues FY 27 Rec.Expenses Net Coun' $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 Travis Myren said Human Resources is responsible for recruitment, onboarding, employee benefits, and risk management. 34 Slide#55 Human Resources Department — Risk Management FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $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 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) ORANGE COUNTY 56 NORTH CAROLINA Travis Myren noted an annual increase in bonds, insurance, and cybersecurity premiums, as well as a staff amendment recognizing$100,000 in cybersecurity policy savings attributable to the fortification of county systems by IT staff. Workers' compensation costs were increasing by approximately $70,000, partially offset by a $30,000 savings in unemployment compensation reserves. 35 Slide#57 Human Resources — page 198 Bonds,Insurance,Cyber and Worker's Comp Premiums $2.ow,00o $3,82L 767 $1® o00 $],600,000 1,636,610 $1�5yy-fig $1AW 000 $1,389,030 $1,367A70 51,193,106 $1,176,427 $1 wo,000 $1A84,122 $1 000,000 $600,000 $600,000 $a09000 $200000 3 FY 2018.19 PY2019.20 FY2021F21 FY2021.22 FY2022-Z3 FY20 4 FY202425 MW2 26 Pml FY2026.27 Bib" �1 ORANGE COUNTY 57 NORTH CAROLTNA Travis Myren presented a chart showing how insurance premiums, cyber coverage, and workers' compensation costs have risen overtime. Slide#58 Human Resources — page 198 Workers Comp Claims $700,009 to $593,]03 $600,000 � 60 550a,000 50 $400,OW $4011,000 40 $354,12] 39 $325,364 330.000 53w0 5283,a61 52BM65 $270,159 30 $200,000 $176,74g 20 $300,000 10 0 FY 2OW19 FY201920 FY2020.21 M021-22 FY2022-23 FY202124 R2024.13 FY2025-26 het FY2025-27 BudgOad �CasroF balms -Cia�ms �1 ORANGE COUNTY 58 NORTH CAROLINA Travis Myren described the county's workers'compensation claims management approach,which includes tracking both the number and cost of claims to focus loss prevention strategies on training and safety practices. He noted that while FY 2024-25 saw an above-average claims experience and both the number of claims and their associated costs had returned to lower levels. 36 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 NORTH C:AROLINA Travis Myren summarized the employee compensation package: a 2% across-the-board salary increase, continuation of merit awards, a temporary suspension of the salary step program, and an increase in the retirement contribution rate. Slide#60 Investing in Employees Peer Comparison of Proposed Tax Rate Changes and Wage Adjustments Jurisdictio Proposed Tax Rate Increase Adjustment 9jr, Proposed Merit Cents per 00 value All Employees 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% 37 Travis Myren said that Wake County is proposing a 2.5%across-the-board wage increase, Durham is proposing 2%, Chatham County is proposing 3%, Chapel Hill is proposing 4%, and Chapel Hill-Carrboro City Schools is proposing 2.5%. 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 Sheriffs 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 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 38 Travis Myren noted the increase in the county's living wage from $18.18 to$20.02 per hour, at an organization-wide cost of approximately$500,000, as well as changes to employee health insurance plan design aimed at generating savings. Slide#63 Investing in Employees — Retention has Improved COUNTYWIDE ANNUAL TURNOVER RATE 30.00% 2S M% 20.004E 15.OP% 19 00% 5.00% 0.00% _... ... .. _... .._. __. FY2tl-21 fY21-22 FM2]]� F1'23-2b FY24.25 f r1:,1L l'rui -40-1UTA1 15.51% 20.69% 16.1— 15.49% 13.82-A 1149F _0S5 28.06% 2083% 17.653' 19.69% 10.53% 13.264. _ShsiH 7.25% 15.94% 6.5M- Y.28% 15.19% B.31X —E—g—V 5-1— 16.36% 21,76% 26— :9.41"'. 17.aria 13A3r., �1 ORANGE COUNTY 63 NORTH CAROLINA Travis Myren noted that overall countywide turnover had declined significantly from approximately 20% in FY 2021-22 to about 11.5%currently. Emergency Services'turnover had fallen from a high of 26.6%in FY 2022-23 to approximately 13%.The Department of Social Services has also improved from just under 20%to approximately 13%, roughly matching the countywide average.The Sheriff's Office is now below the countywide average at 8.4%. Commissioner Portie-Ascott asked about retention rates for surrounding counties. Travis Myren said he doesn't have that information but can request it. 39 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,PARKS AND REC COMMUNITY RELATIONS ECONOMIC DEVELOPMENT LIBRARY SERVICES i HOUSING CHILD SUPPORTSERVICES 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 FINANCE AND ADMIN SERVICES ANIMAL SERVICES COUNTY MANAGER COUNTY ATTORNEY D oD% 10.c0% 20.00% 3000% a0.00% 50.00% 60.00% JOOCJ 80-00% 90 oax •FY 2026(3/16/2026)Turnover Rate •FY 2D25 Turnover Rate Travis Myren said that while nearly every department showed improvement, four departments saw slightly elevated turnover in the current year: Transportation Services, Solid Waste, Information Technology,and Animal Services— most of which were attributable to retirements or planned departures. Slide#65 Information Technology FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost - $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 • Cybersecurity Support • Software Maintenance/Procurement ORANGE CC)UNTY 65 NORTH CAROLINA 40 Slide#66 Information Technology— page 202 — Software subscriptions, maintenance and licensing -$368,613 Increased costs of existing software—Increase of$378.529 • Added Services/Features for existing 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 CAROL[NA Slide#67 Information Technology — page 202 Service Desk Complete 90%of Routine Calls for Service Within 18 Hours 100% 00% 831/ 90% e2 u 60% 76% 70% 60% 50% 40% 30% 20% 10% 0% FY23-24 FY24-25 FY25-26 Pr j FY26-27 Budget ORANGE COUNTY 67 NORTH CAROLINA Travis Myren said the Help Desk's target is to complete 90% of routine calls within 18 hours. He said that performance dipped to approximately 76% in FY 2025-26 but was projected to return to the 90% target next year. Commissioner McKee asked why there was a significant drop from 2024-25 to 2025-26. Robert Reynolds, Chief Information Officer, explained that the decline was primarily driven by the deployment of Microsoft Office 365, which introduced a more complex technology ecosystem across the 41 organization, resulting in more technically complex Help Desk tickets. He also acknowledged that the department had been somewhat short-staffed for its size. He expressed confidence that, as the staff has now gained a solid understanding of the Office 365 environment, completion rates should begin recovering. Commissioner McKee said that his question was rooted in the connection between IT responsiveness and the county's ability to communicate with and serve the public. 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 Slide#69 Animal Services —Administration FY 27 Rec.Revenues IFY 27 Rec.Expenses Net County Cost 7— $0 $1,031,412 $1,031,412 General Fund FTEs: 10.000 Basis for Investment: Operational Support, Board Priority:Healthy Community ProgramslServices 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 42 Slide#70 Animal Services —Animal Control FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $359,115 $790,713 $431,58: 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 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 Programs/Services Provided: • Animal Adoption Animal Intake,Care,Adoption • Medical Care for Animals in Shelter Community Support • Pet Food Pantry • Community Animal Clinic ORANGE COUNTY 71 NORTH CAROLINA 43 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 Travis Myren said proposed budget changes for Animal Services include a $73,000 reduction in animal control revenue from municipalities, reflecting a decrease in the cost of the animal control division and its corresponding allocation. The community animal clinic, launched mid-FY 2025-26, is generating more revenue than its additional operating costs, producing a positive net impact on the general fund of approximately$70,000.A vacant Assistant Animal Services Director position was eliminated following the vacancy study, saving$132,000, along with a small reduction in temporary personnel. Slide#73 Animal Services - page 77 Animal Control Services Responses 10,Dw 4,000 8,000 7,DD0 6,1g9 6,179 6.024 6,191 5,945 6,D00 5,DOC 4,864 4,300 3,933 4,019 4,000 3,D00 2,D00 1,D00 — FY2013.14 MC14.15 FY2015.16 FY2016-17 FY 2017-18 FY2018-29 FY2019-20 FY2020-22 FY2021.22 MC22.23 FY2023.24 FY2024-25 MC25.26 FY2026.27 Prod Budget 73 ORAN HE ACOUNATY 44 Travis Myren noted that animal control responses have remained very stable at approximately 4,500 per year, comparable to 2021 levels. Slide#74 Animal Services — page 77 Cruelty and Neglect Investigations Boo — 700 600 500 478 479 418 417 402 382 393 398 383 400 300 244 245 222 200 200 1ao 0 FY2012-13 FY2013-14 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 Project Budget 74 ORAN GE�COUNTY Travis Myren said that cruelty and neglect investigations are similarly stable. Slide#75 Animal Services — page 77 Animal Shelter Admissions 2,500 2,100 2,000 2,000 1,836 1,767 1,443 1,486 1,500 1,196 1,232 1,24 ♦Cats 1,326 1,375 1,151 1,268 1 237 1,250 -�flogs 1,000 —mother 1,024 1,007 812 851 500 FY2M2-13 M013-14 MD-5 RIM-6 MM-7 M01]-18 FY—9 FY2M420 FV2M0-21 FY2021-22 MM2-23 FY2-4 FY2fR425 FY202S26 FY2MG2] Purled budge[ ORANGE COUNTY 75 NORTH CAROI LWA 45 Travis Myren noted that cat admissions to the shelter have increased at a faster rate than dog admissions in recent years. Slide#76 Animal Services — page 77 Live Release Rates 100% 96% 95% 93% 93% 93% 92% 9 92% 91 � 93% 9G% 91% 87 88% 85% +Cats f Gags �O[her 92% 80% 75% 70% F72015.16 FY201647 FY2017-LB FY201&19 FY201320 FVM20-21 FM2021-22 FY2022-23 FY2023-24 FY2024.25 FV2025.26 ftj M026-276u7get ORANGE COUNTY 76 NORTH C AROLINA Travis Myren shared that the department has maintained a live release rate of approximately 90- 93%. Commissioner McKee asked what animals are included in the "other" category for shelter admissions. Travis Myren responded that it can encompass a wide variety of animals beyond dogs and cats, including pigs, reptiles, and exotic animals. 46 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 CAROLINA Travis Myren described Cooperative Extension as a county-NC State University partnership providing a variety of discretionary services, including the Four-H program, food security programming, and agricultural economic development staffing. 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 TI;ORTH C'.AROLINA Travis Myren said that the longtime agricultural economic development staff person retired, and their replacement commands a lower salary, resulting in savings of approximately$23,000. He also noted 47 that$7,200 in operating expenses for the Breeze Farm has been moved from the Extension budget to the Article 46 fund. Slide#79 DEAPR—Admin/Support Services FY 27 Rec. Revenues FY 27 RGC. 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 ProgramslServices Provided: • Communications and Outreach for the Department • Budget and Finance Support for the Department • Marketing and Event Support • Advisory Boards 79 ON ONGR-M COOUNATY Slide#80 DEAPR — Natural & Cultural Resources --FT27-ffibc, 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 OR SO ORANGE COUNTY NA 48 Slide#81 DEAPR — Parks FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $217,807 $2,103,757 $1.,8M,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 Traits si ORANGE COUNTY CROI 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 Spocktacular, Family Valentines Dance r� 82 ORAN GECCOUN�TY 49 Slide#83 DEAPR — Soil & Water FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $23,600 $477,072 $45a,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 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$50-$70/section • Special Event Alcohol Application Fee:Raised from$30 to$250 • Tournament Fees Athletic fee—Tournaments:Raised from$501hr for resident;$751hr for non-resident to$601 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;$525lhr 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 • Tied to increased revenue projections above — Personnel Reductions—($113,891) • -1.00 FTE:Parks Manager Position(vacant) ORANGE COUNTY 84 NORTH CAROLINA Travis Myren described recommended fee increases for adult recreation programs,special events, tournaments, and facility rentals, aimed at improving cost recovery. He noted that $50,000 of the projected revenue increase reflects increased participation,and that$42,000 in seasonal staffing increases 50 is budgeted to support that expanded programming. A vacant Parks Manager position is recommended for elimination. Slide#85 Department of Environment, Agriculture, Parks and Recreation - page 143 Recreation Program Enrollments 10000 9005 8000 7816 7513 7000 p7J1 aeon 5000 4550 3000 2000 1500 0 rY23-1._ rY24.25 FY25.26 Peet rY26.27 Budget ORANGE COUNTY 85 NORTH CARC LSNA Travis Myren presented a chart showing recreation program enrollment trends, projecting growth from approximately 7,500 to nearly 8,600 enrollments. Slide#86 Department of Environment, Agriculture, Parks and Recreation - page 143 Cost Recovery for Recreation Programs in FY25 50% 47% 45% 40% 39% 35% 33% 30% 25% 20% 15% 13% — 10% — — 5% — 0% — 6 YoufhPragrams Adult Programs summer Camps Aft srachool Prasehool *Percentages based on the total cost for the program,not the division 86 ORANGE COUNTY CA 51 Travis Myren described the cost recovery chart by program category, noting that youth summer camps historically recover 46-47% of costs, with afterschool and preschool somewhat lower. Adult programming, however, had been recovering only about 13%of costs, and that is the primary focus of the fee increase effort. 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 ProgramslServices Provided: • Agricultural&Business investment Grants • Incentive Payments • Workforce Development • Recruitment, Retention,and Expansion of Businesses in the County ORANGE COUNTY 87 NORTH CAROLINA Travis Myren said that Economic Development is funded through the Article 46 fund and that it administers agricultural and business investment grants, handles incentive payments, and responds to company inquiries. 52 Slide#88 Economic Development - Visitor's Bureau FY 27 Rec. Revenues 27 Rec.Expenses Net Visitors Bureau Fund 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 Visitor's Center • Collection and Management of Tourism Performance Data • Event Funding and Marketing1 ORANGE COUNTY $8 N"RTH CAROLI'4A Travis Myren said the Visitors Bureau, including the physical visitor center on Franklin Street and all marketing and promotional activities, is also accounted for within this department's budget. Slide#89 Economic Development - page Small Business Grants 152 50 1 5 50 47 45 62 40 17 34 95 9fi 30 30 30 20 20 — Department costs funded in Article 46 — Overhead cast decrease to General Fund FY2021.22 FY2022.23 FY2023.24 FY2024-25 FY202526 P.o� FY2028-Z7 — ($74,259) •APPli..ti— .APp—d Agriculture Enterprise Grants 90 25 25 PS 23 � M 20 17 18 15 15 13 12 10 li i , FY2023-22 FY2022-23 FY2023-24 FY2024-25 FY2025-25 Pro] FY2020-27 B,dg.t •Applications .App—.d ORANGE COUNTY 89 NORTH[_:AROLINA Travis Myren said the only notable change in the Economic Development overhead was a decrease driven by reduced IT cost allocations, based on a lower volume of help desk tickets attributable to the department. 53 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& — End of Visitors'Bureau final repayment of Events($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 g0 NORTH CAROLINA Travis Myren noted this is the final year of repayment on a pandemic-era loan from the county, which carries a cost of$239,000 that will be relieved in subsequent years. There was also a decrease in operational costs reflecting the reduction in the Town of Chapel Hill's contribution,and a staff amendment accounting for an additional $200,000 shortfall projected for FY 2026-27. He said that the largest impacts will be in advertising, promotions, and publications. Slide#91 Visitor's Bureau — page 155 Occupancy Tax Revenue History sz5oa,oaa $2,363.229 $2.311,3U $2,33Y,982 $2,u85,0w $2,000,000 $t,9z8,0T0 $1.671,718 $1,881,745 $1,661,844 $1,500A00 $1,247,530 $1.0WA00 $822.042 $500,000 FY2017-18 FY2918-19 FY201&20 FY2020.21 FY2021-22 FY2022-23 M023-24 FY2024-25 FY2025-26 Pra) FY202&2027 6ud9d ORANGE COUNTY 91 NORTH CAROLINA 54 Travis Myren said that occupancy tax collections are projected to remain roughly flat at approximately$2.3 million. 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 Travis Myren said the total Article 46 collections are projected at approximately$6.6 million,which includes an increase of about $255,000 driven by general sales tax growth. That total is split roughly equally between economic development and education.The education share is split between Chapel Hill- Carrboro City Schools(approximately 61.5%) and Orange County Schools(approximately 38.5%), based on average daily membership minus charter school enrollment. 55 Slide#93 Article 46 Sales Tax— page 81 Expenditure Category 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 ORANGE COUNTY 93 NORTH CAROLINA Travis Myren walked through the recommended allocations for both economic development and education purposes, noting increases in the Ag Enterprise Grant and Business Investment Grant programs of approximately$8,300 and $9,000 respectively. 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 56 Slide#95 Article 46 Sales Tax — page 81 Article 46 Funding FY26-27 FY27-28 FY28-29 FY29-30 Revenue $ 3,323,939 $ 3,456,793 $ 3,595,065 $ 9,738,868 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 $ 404,283 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 $ 190,833 95 ORANGE COUNTY NORTH CAROLINA Travis Myren presented the multi-year modeling for the Article 46 fund, noting that projections through FY 2029-30 show the fund remaining in a positive net position. Slide#96 Fleet Services FY 27 Rec.Revenues IFY 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 96 ORANGE COUNTY NOR`FHNA Travis Myren said Fleet Services is the department responsible for maintaining, repairing, and purchasing the county's vehicle fleet, with most repairs handled in-house and more complex work contracted out. 57 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 C A.ROLINA Travis Myren said that the primary budget driver is a$595,000 increase for projected gasoline and diesel fuel costs, as well as a $31,000 increase for vehicle components and parts, a small decrease in temporary personnel and overtime, and $15,000 in operational reductions. Chair Hamilton said she would like a better understanding of the basis for the increase in budgeted fuel costs. Travis Myren responded that the recommended budget assumes$5.00 per gallon for gasoline and $6.00 per gallon for diesel,with usage projected to remain approximately flat relative to the current year. Chair Hamilton asked how the county's investment in electric vehicles and charging infrastructure was being factored into fuel cost projections. Travis Myren indicated that the EV investment has likely begun to show up in usage data, noting that the county tracks fuel usage and mileage on every vehicle. He committed to pulling that data to see if a measurable impact could be identified. He added that the county's two largest fleets, Emergency Services and the Sheriff's Office, have no electric vehicles, as their primary vehicles are not yet available or practical as electric vehicles. Commissioner Bedford asked if Orange Public Transit buses are included in the Fleet budget as well. Travis Myren said yes. 58 Slide#98 Fleet Services — page 179 Fleet Services Costs $2,500 MD $2,000,000 Sheriffs Office Vehicle $1,500,000 Maintenance in FY2025-26 $325K $1,000,000 $227K 156K $162K $604K $587K $500,000 FY201g-19 FY2029 20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY2024-25 FY2025-26 Proj FY2026-27 Budge[ ■Vehicle Maintenance ■Gas&Oil ■Diesel Fuel 98 ORANGE RrH COOUNA Y Slide#99 Planning and Inspections — Current Planning FY 27 Rec. Revenues IFY 27 Rec. Expenses Net County Cost $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 • Lang-Range Planning Including the Comprehensive Plan • Unified Development Ordinance(UDO) 99 ORNORTH CAROOLI COUNTYNGE NA Travis Myren said the Planning and Inspections department is comprised of current planning, long- range planning,the comprehensive plan,erosion control,and building inspections for both the county and the Town of Hillsborough. 59 Slide#100 Planning and Inspections — Erosion Control FY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $620,200 $719,9969,��8 ' 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 C;AROLINA Slide#101 Planning and Inspections — Inspections $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 1D1 ORANGE COOUNA Y 60 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 Travis Myren said that budget changes include approximately$52,000 in increased revenue from incremental fee increases and higher erosion control projections in the general fund.Two vacant positions are recommended for elimination, including a Watershed Protection Specialist and a Planner III. Cost recovery in erosion control improved from 83.7% to 86.1%, and inspections cost recovery rose from approximately 80% to 90.6%. He explained that fee increases in the recommended range of 2-10% on average would allow a reduction in the general fund subsidy. Slide#103 Planning and Inspections - page 219 Inspections Revenue $2,500A0 u,296,616 $2,000,000 51.616.361 $1,500,000 $1,227,9911 $1,196.409 $1,239,930 $1,236,692 $1,274,344 $1,179,563 51,166,464 5999,360 $1,069,339 $1,096,949 $500.000 so FY1546 FY1047 FY17.13 FYIS-10 FY19.20 FY20-21 FY21-22 FY22-23 FY23-U FY24-25 FY26-26 P.J FY26-27 Budgsl ORANGE COUNTY 103 NORTH CAROLINA 61 Travis Myren said the charts on slides#103 and 104 showed the cyclical nature of inspections and erosion control revenue, noting that large projects can significantly skew revenue in any given year. He noted that FY 2025-26 saw a dramatic spike in inspections revenue due to the Collins Ridge and Persimmon Creek projects. Slide#104 Planning and Inspections — page 219 Erosion Control Revenue $1,200,000 $1,135,352 $1,000,000 s600,000 — $520,200 $620,200 f800,000 $566,377 $495.672 1498,660 9400,000 B ,129 $251.521 SWIM $296,100 $200,000 5- FY1S•16 FY1647 FY17-18 FY18-19 FY19.20 FY20.21 FY21.22 FY22-23 FY23-24 FY24-25 FY25-26 Pro1 FY26-27 Budget �f1 ORANGE COUNTY 104 NORTH C-AROLINA Travis Myren noted that a strong year in erosion control revenue in FY 2024-25 is moderating back to an average of approximately$620,000. 62 Slide#105 Planning and Inspections — page 219 Number of Building Permits*Issued 1,200 1,040 1,047 1,000 960 931 875 000 874 8D0 787 799 782 600 400 200 FY17-18 FY19.10 FY16-20 FY20-21 FY21.22 FY22.23 FY23-24 FY24-25 FY26.26 Pmi FY26.27 Budget *A multifamily building has a single permit,so the number of dwelling units can be higher ORANGE COUNTY 105 NORTH CAROLINA Travis Myren said the limitation of the chart shown on this slide is that multi-unit developments receive a single permit regardless of how many units are included, making it less informative about actual housing production. Commissioner McKee noticed that permit numbers had ranged from approximately 930 to 1,047 prior to FY 2021,then declined to the 700-900 range in subsequent years,which seemed counterintuitive given the population growth the area has experienced. He asked whether the shift toward multi-family permitting might account for that pattern. Cy Stober, Planning and Inspections Director, explained that the period from 2020 through mid- 2022 was an anomaly in building construction statewide. He noted that Collins Ridge, which involved a large volume of individually permitted townhomes,coincided precisely with that window,along with other high-volume, smaller projects in the Town of Hillsborough.The combination produced an unprecedented surge in new home starts that the state had not seen in 20 years. Chair Hamilton said it would be useful in future budget years to include a breakdown of single- family versus multi-family units permitted,to add meaningful context to the permit count data. Cy Stober said that staff have already been working with the Budget Office to add that level of detail to future performance reporting. 63 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 Programs/Services 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. ORANGE COUNTY 106 NORTH CAROLINA Travis Myren said Solid Waste is an enterprise fund, in which all departmental expenses are paid through the Solid Waste Program fee or other department-generated revenues. Divisions include environmental services, landfill operations, recycling services, and sanitation. 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 Programs/Services 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 CAROLINA 64 Slide#108 Solid Waste Department — Recycling Services IFY 27 Rec. Revenues FY 27 Rec. Expenses Net County Cost $4,778,911 $4,778,911 $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. 108 ORANGE COUNTY NA 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 109 ORAR GE�COUNTY 65 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 far Sery — Decrease in Overhead Funds paid to General Fund— 5%es ($212,758) �� Landfill Fees Programs Fee — Costs to Continue, including PFAS testing, household 3% 36% waste processing,and living wage adjustments- $288,621 Investment Earnings 1% Other Revenue 5% 110 Travis Myren said he is recommending increasing the Solid Waste Program Fee from $138 to$142 per taxable parcel, essentially restoring a reduction made a couple of years ago. A different, lower rate applies within the City of Mebane,where the full suite of services is not provided.A vacant office assistant position is recommended for elimination. He said that the coming years will be lean times for the Solid Waste fund,citing a confluence of pressures: inflation, heavy reliance on temporary employees and living- wage-affected workers, PFAS testing and remediation costs, and elevated fuel costs. He projected a $410,000 increase in fuel costs and described a decrease in overhead cost allocation, along with costs to continue for PFAS testing. He noted that 86% of Solid Waste revenue comes from the program fee, and that staff would work with the Solid Waste Advisory Group to evaluate potential operational adjustments in future years. 66 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 Travis Myren said that the Sportsplex operates as a completely discretionary enterprise fund with no general fund impact. Post-pandemic revenues have performed very well,with total revenue projected to exceed $6 million in the current year. Slide#112 Sportsplex - page 243 — FY2026-27 provides increase in Fund Balance - $402,900 Sportsplex Revenues $7,600,a0g 80.0% $6,000,000 $6,053,016 $5 952 738 70.0% $5,497,730 60.0% $5,235,R42 $5,000.000 $4,625,429 $4,769,351 50.0% 40.0% $4,000,000 $3,764,043 30.0% $3,134,g40 $3,000,000 $2,727,377 200% 10 0% $2,000,000 00% 10.0% $1,000,000 -20.0% $0 -30.0% FY201&19 FY2019-20 FU020-21 R2021-22 FY2022-23 FU023-24 FY2024-25 M025-26 Prnj FY2026-27 Butlget Opembng Revenue -Change from Prior Year NGE 112 ON ORTH CAROL COUNTY INA 67 Travis Myren said the budgeted Sportsplex revenue for FY 2026-27 is set just under $6 million at $5.9 million. Slide#113 Transportation Services—Transit FY 27 Rec. Revenues 11 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 Programslservices Provided: • Demand Response • Elderly and Disabled(EDTAP) • Rural General Public(RGP) • Employment Assistance(Empl)and Work First • Fixed Route Services • Mobility on Demand • Supports Mobile Dental Clinic /� �— 113 ORANGE H GAROL7NA COUNTY Travis Myren said the Transit Division of Transportation Services includes demand response,fixed route service, mobility on demand, and the mobile dental clinic driver. Slide#114 Transportation Services— Transportation & Public Engagement ���offiTz:W. , 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 Travis Myren said the Transportation and Public Engagement division includes DOT coordination, the Bicycle and Pedestrian Plan, and transit tax administration. 68 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 Travis Myren noted an increase in transit tax proceeds offsetting costs for newly added routes from the transit plan, and the addition of a floater driver to fill in for driver absences and maintain schedule reliability, offset by reductions in overtime and operational costs. Staff also administers the staffing working group,for which compensation is increasing by$31,000 to support temporary personnel. Commissioner Bedford asked whether Medicaid funding could be used to pay for the mobile dental clinic driver. Sarah Williamson, Interim Transportation Director, said that the position is not eligible for Medicaid funds. Slide#116 Transportation Services — page 252 Daily Dispatch Data Nov 2025 -Mid-Feb 2026 Goal Range 175 to 220 150+ 95%+ 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 1 126.06 187% • 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+/-10 minutes of schedule trip — Demand Response includes door to door service due to ADA accommodations ORANGE OU 116 N CAR NTY 69 Travis Myren presented a performance chart showing on-time performance for all transit services, noting that all services were performing in the yellow, approaching goal range, and trending toward the green, at goal category. Slide#117 Transportation Services — page 252 OCPT Ridership 62,oaa fio,990 53 000 so,M els» ao,00a 32,692 29.4M 29,fi33 30,246 30,OW 26.OW 24,393 20,090 10.090 FY2016-19 FY2919-20 FY2020.21 FY2021.22 FV2022-23 FV2023-26 FY2026-29 FV2029-26 Mai FY2026-2]fiutlge[etl �1 ORAN HE�CCOUNTY 117 Travis Myren said that ridership is projected to increase by approximately 2,000 rides compared to the current year. Slide#118 FY2026-27 Recommended Budget • Questions? — Amendments due tomorrow morning @ 10:00AM — Public Hearing on Thursday, May 28 — Approve Amendments and Resolution of Intent to Adopt the Budget—June 41h — Final Budget Approval-June 161h ORANGE COUNTY 118 NUR'1'1 I CAROLINA Travis Myren reminded the Board that Commissioner amendments are due by 10:00 am tomorrow. He said this as a soft deadline from a staff processing standpoint, but that the goal is to post amendments publicly before the scheduled public hearing on Thursday. He said that commissioners who 70 receive a late-arriving amendment idea should feel free to call his office by early afternoon,and staff would work to accommodate it. He said that draft amendment language would be circulated to commissioners for review before posting. Chair Hamilton said that many complicated amendments would likely be submitted,and reiterated that the public will need adequate time to review them before the public hearing on Thursday. She reminded the public that the Board will approve the Resolution of Intent to Adopt for the budget on June 4th, and that while comments would be received at the public hearing, the Board would be engaged in detailed deliberations on June 4th to finalize the budget. Adjournment A motion was made by Vice-Chair Fowler, seconded by Commissioner McKee, to adjourn the meeting at 8:30 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