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HomeMy WebLinkAboutMinutes 06-02-2026 - Business Meeting 1 APPROVED 7/9/26 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUSINESS MEETING June 2, 2026 7:00 p.m. The Orange County Board of Commissioners met for a Business Meeting on Tuesday,June 2, 2026, at 7:00 p.m. at the Whitted Human Services Building in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners Jamezetta Bedford, Marilyn Carter, Sally Greene, Earl McKee, and Phyllis Portie-Ascott COUNTY COMMISSIONERS ABSENT: None. COUNTY ATTORNEYS PRESENT: 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. Chair Hamilton called on Steve Brantley, Economic Development Director, to recognize representatives from Morinaga America Foods. Steve Brantley noted that Moringa was the first company to locate in the Buckhorn Economic Development District, connecting to the Article 46-funded sewer line approximately ten years ago, and that the company plans to eventually employ 400 people in Orange County. Shimpei Ishizaka, Morinaga CFO, expressed deep appreciation for the county's ongoing support. He noted that the company is currently constructing a second factory, which is expected to begin operations within the year. He referenced the ribbon-cutting ceremony held in April, at which Chair Hamilton and other Orange County members were present, and described the dramatic growth of the business in the United States, crediting Orange County's support and incentive programs as essential to that growth. As a gesture of appreciation and to symbolize the relationship between Orange County and Moringa, Mr. Ishizaka presented the Board with an Imari candy pot — a piece of traditional pottery from Imari,Japan,the birthplace of Moringa Japan's founder,Taichiro Moringa. Chair Hamilton thanked Shimpei Ishizaka and Morinaga for investing and operating their business in Orange County. 1.Additions or Changes to the Agenda There were no changes to the agenda. Chair Hamilton read the public charge and reviewed the instructions for making public comment. She noted that comments on printed agenda items would be taken when those specific matters come before the board. 2. Public Comments(Limited to One Hour) a. Matters not on the Printed Agenda Ada Watson, a junior at Chapel Hill High School and member of the Tobacco 21 Youth Council, addressed the Board regarding a piece of legislation known as Sully's Law, named after a 15-year-old from Eastern North Carolina who died from complications related to vaping and popcorn lung. She explained that she became involved with the issue through a public health class field trip to gas stations and vape 2 shops, where she learned about predatory advertising directed at youth. She described Sully's Law as a bill introduced in March of the prior year that enjoys bipartisan support but is currently stuck in the Rules Committee. She noted that the goal of the North Carolina T-21 Coalition is to move the bill to the Health Committee,which they believe will be more receptive.Ada Watson said she has met with Representative Buansi and Senator Garson, both of whom expressed strong support. She outlined key provisions of the bill: raising the tobacco purchase age in North Carolina to 21 to match federal law and establishing a retail permitting system to enforce compliance. She argued that most vaping products currently in local stores are not legal and that enforcement is essentially nonexistent without a permitting system. She further noted that raising the age to 21 is important because high school freshmen have 18-year-old friends, but middle schoolers do not typically have connections to 21-year-olds.She stated that North Carolina may be among the last states to match the federal age, noting the number of non-compliant states has dropped from eleven to seven. Ada Watson distributed copies of a draft resolution, a one-page overview, and a list of 163 endorsers, including the Orange County Board of Health.She asked the Board to consider endorsing the measure. Denise Duffy, Chair of the Arts Commission Advisory Board, was joined by Vice-Chair Francesca Talenti and other members of the Arts Alliance and Advisory Board to urge the Board to protect Arts Commission funding amid the proposed amendments to the Visitors Bureau fund.She described the Arts Commission as a lean, scrappy organization operating like a nonprofit,with three full-time employees and a $40,000 operating budget. She noted that the Commission manages the self-sustaining Eno Arts Mill, which serves thousands of residents annually, including summer campers, 80% of whom receive scholarships. She emphasized that the Arts Commission serves as the primary arts funder for the county and generates nearly$3 million in annual economic impact from nonprofit arts activity in Orange County. She argued that in difficult economic times, people seek affordable and meaningful experiences closer to home, and that the arts provide exactly that. Denise Duffy noted that in FY 2027,the Commission plans to expand programming through an events contractor position, including music, dance, and theater at the Eno Arts Mill and a potential new festival partnership at Blackwood Farm Park, and that the Commission is exploring ways to generate additional county revenue through event concessions. She stated that none of this growth is possible without the events team manager position. She closed by asking the Board to view the Arts Commission as an investment, noting that for every dollar invested, sixteen dollars are generated back to the local economy. Julia Workman, a resident of Hillsborough, expressed support for the Arts Commission. She cited a figure she had recently learned, which is that arts patrons spend ten times more than sports patrons. She argued that this demonstrates that the arts are an economic driver and are essential, not a luxury.She noted the trickle-down effect of any cuts to the Arts Commission, citing the Hillsborough Arts Council as an example of an organization that relies on Arts Commission grants to pay local artists directly. She acknowledged the Board's difficult fiscal position but urged them to recognize the essential nature of arts funding. William Madden thanked commissioners for the time they devote to public service. He spoke in his own personal capacity and reminded the Board that approximately a year prior he had emailed them about Opportunity South Carolina,a self-described nonprofit. He noted that in April of this year,two front- page articles in the News and Observer addressed the related issue of nonprofits reducing local tax revenues, with one article by reporter Tammy Grub. He read from the article, which reported that the loophole affected five Orange County properties valued at $56.6 million, creating a $742,844 loss in property tax revenues, with four more properties seeking exemptions that could total approximately $1 million in annual revenue loss. He stated that Carrboro was the most significantly affected town,followed by Chapel Hill and Hillsborough, and that the Chapel Hill-Carrboro City Schools are also losing significant public dollars. He expressed frustration that he believed his email had been the first alert the Board received on this matter. He urged the Board to be more attentive to recorded documents. 3 b. Matters on the Printed Agenda These matters will be considered when the Board addresses that item on the agenda below. 3.Announcements, Petitions,and Comments by Board Members Chair Hamilton expressed gratitude to all community members who participated in budget public hearings and submitted emails, letters, or phone calls. She apologized to anyone who did not get a response from her or the Community Relations Director, explaining that the volume of communication during the budget season had been difficult to keep pace with, but that all communications were being read and considered. She noted the upcoming work session on Thursday, at which the Board would work through budget amendments. She said there are more amendments this year than she has seen since her election in 2020, and possibly the most in any period during her tenure. She acknowledged that some commissioners collaborated on amendments, while others worked independently, and that, as a result, there are unintended consequences and overlaps. She assured the public that the Board is aware of this and will carefully work through all staff and commissioner amendments to set the property tax rate and fire district tax rates. Chair Hamilton also announced that a half-day retreat on the 2050 Land Use Plan has been scheduled for June 27th at 8:30 am. She drew attention to June 5th as National Gun Violence Awareness Day, noting she would be attending a rally at Peace and Justice Plaza in Chapel Hill alongside other elected officials from Carrboro, Chapel Hill, and Hillsborough, and urged residents to wear orange to increase awareness of gun safety and remember those injured or killed by gun violence. She noted the Board has a proclamation on consent tonight recognizing that cause. She also noted the proclamation declaring June 6th as Trails Day, aligned with National Trails Day as designated by the American Hiking Society, and encouraged everyone to enjoy Orange County's trails. Commissioner Carter joined the Chair in expressing gratitude to community members for their feedback on the budget, acknowledging she had some catching up to do on emails. She described attending two Memorial Day events: the first hosted by Orange County at the Veterans Memorial at the Southern Human Services Center, at which Chair Hamilton spoke, and Purple Heart recipients and Gold Star families were honored.The second was hosted by the peace and justice community and was intended to honor both service members and all those impacted by war, including innocent civilians.She noted that at the second event, a Proclamation of Peace was issued referencing a joint resolution of Congress from 1950 that called for Memorial Day to be dedicated to prayer and permanent peace. Commissioner Carter used this context to reflect on the moral weight of budget decisions before the Board, acknowledging the sacrifice of those who defended democracy while also recognizing that innocent people continue to be victims of war and that aggressors bear a moral burden for those losses. Commissioner Greene thanked everyone for their engagement in the budget process, reiterating that the Board reads, considers, and appreciates all comments, and that they will weigh everything as carefully as possible on Thursday. Commissioner Portie-Ascott also thanked community engagement in the budget process. She thanked county staff and particularly the County Manager and his team for leading the Board through an extremely difficult budget season. She mentioned attending a Durham City Council meeting the prior evening, where property managers were advocating for Durham to create an eviction diversion program modeled on Orange County's program. She expressed her commitment to connecting Durham with the County Manager as they develop their formal proposal and credited the county's housing staff and the attorney's office for making that program a model worth emulating. She also noted her attendance at the Orange County Veterans Memorial Day event, at which the keynote address was delivered by Secretary Jocelyn Millett, a retired U.S. Air Force officer and current Secretary of the North Carolina Department of Military and Veteran Affairs. Vice-Chair Fowler said that the Board will deliberate over the budget on Thursday night. She described the current budget year as particularly difficult, enumerating several fiscal pressures, including 4 inflationary pressure on the budget simply to maintain operations,federal cuts to SNAP benefits alongside increased certification frequency creating a million-dollar burden on the county, and increased costs for healthcare, retirement benefits, living wages,fuel, and services. She also addressed the issue of for-profit companies partnering with nonprofits to avoid taxes through legal loopholes, reducing county revenue. She acknowledged that community members have suggested addressing the commercial apartment complex issue as a solution, and she expressed her support for that concept, while being candid that the work will likely lead to glacial and small change. She nonetheless committed to pursuing that work alongside her colleagues.Vice-Chair Fowler then outlined three budget amendments she plans to present on Thursday, all focused on education: (1) a school CIP amendment to add $3 million to Pay-Go for school capital projects and repairs,noting that prior boards had directed revenue to operations rather than facility maintenance; (2) an amendment to increase school operations funding to allow both school districts to meet their continuation budgets; and (3) an amendment to restore funding to the Chapel Hill Public Library, which she described as reflecting strongly held community values. She acknowledged the enormous volume of requests the Board has received and noted that by far the most passionate and numerous pleas were to maintain library funding. She also referenced approximately $600,000 in staff amendments that could mitigate proposed increases.She thanked the County Manager and staff for their effort on the budget as well as her colleagues. Commissioner Bedford highlighted upcoming Juneteenth celebrations. She noted that since county offices would be closed on June 19th, the celebrations would take place on Friday,June 12th.The first event,from 10:00 to 11:30 a.m.,would be held at the Hillsborough Farmers Market at the David Price Pavilion near the courthouse, featuring Dr. Sonny Kelly. The second event, from 6:00 to 9:00 p.m. at the Eno Arts Mill, would feature food, local artists, music, and family activities. Commissioner Bedford then presented four petitions and requests in advance of the Thursday budget meeting. First, she introduced a budget amendment to reduce some first-year CIP funding at Twin Creeks Park, given that not all results with partners and fellow owners regarding the Greene Tract are complete and that school enrollment is declining at the nearby Morris Grove Elementary School. She also requested that staff take time, after completing the Tax Assessment Work Group,to do a fresh review of county-owned parcels to examine the possibilities for affordable housing, particularly noting the importance of LIHTC credits. Second, prompted by changes in Chapel Hill's funding for the Visitors Bureau, she asked the County Manager to explore forming a work group or task force with towns and community members to conduct a real analysis of the Visitors Bureau and consider whether improvements or structural changes should be made. Third, she suggested that the incoming board (after the November elections) hold a work session to review the ILA with Community Home Trust and the Trust's operations, noting that incoming commissioner Karen Stegman would bring relevant expertise as a current board member. Fourth, and prompted by budget amendment discussions about capital projects, she requested that the Board revisit the County Facilities Plan at a future retreat, noting that five of the current commissioners had approved that plan and that some are now reconsidering elements of it. She suggested that with two new board members coming in December, it would be valuable to have an updated review with fresh context. Commissioner McKee shared that he had recently represented the Board at a ribbon-cutting for the agriculture education annex (Ag Barn) at Cedar Ridge, a long-awaited facility featuring stalls and pasture areas. He acknowledged that navigating Orange County's regulations to bring the project to fruition had been a trial and a tribulation. He then reflected on the impact of tax increases, noting that he had reviewed 30 years of his own tax bills, having built his home in 1995 for $93,000 and having paid $59,927 in property taxes over that period. He described last year's increase as resulting in a $417 jump in his annual bill on a property that did not double in value. He expressed concern about characterizing tax increases as "only a few dollars more" or "a dinner out," noting that for someone living entirely on Social Security, his current bill of$2,944 would represent 12% of their annual income. He stated that he had submitted multiple amendments aimed at pushing back or eliminating approximately $50 million of 5 borrowing over the next ten years, noting that this still represents a small fraction of the approximately$1 billion in cumulative borrowing projected over that period. 4. Proclamations/ Resolutions/Special Presentations a. Juneteenth Freedom Day Proclamation The Board approved a proclamation recognizing June 19, 2026 as Juneteenth Freedom Day in Orange County. BACKGROUND: On June 19, 1865 — more than two years after the signing of the Emancipation Proclamation—U.S. Major General Gordon Granger arrived in Galveston,Texas,to inform the last enslaved African Americans that they were free. This day, now known as Juneteenth, marked a powerful moment of delayed liberation and became a defining milestone in the struggle for Black freedom. The first Juneteenth celebration was held in Texas in 1866, where communities gathered for prayer, food, music, and dance. As Black families migrated from Texas to other parts of the country, they carried Juneteenth's cultural and historical traditions with them. In 2007, North Carolina adopted legislation that allowed Juneteenth National Freedom Day to become an official state holiday once federally recognized. In 2020,Orange County and the Towns of Carrboro,Chapel Hill, and Hillsborough affirmed Juneteenth as a local holiday. Today,Juneteenth is celebrated as a federal holiday across all 50 states, recognized as a time of both jubilation and reflection. Juneteenth not only honors freedom — it invites us to reckon with the ongoing legacy of slavery and the long, unfinished journey toward justice. Historian Ira Berlin, in The Long Emancipation: The Demise of Slavery in the United States, argues that emancipation was not a singular event, but "a near century process" driven by the resistance, resilience, and determination of Black Americans. Freedom was not granted—it was fought for.Through centuries of struggle, Black Americans have expanded the meaning of citizenship and reshaped the promise of American democracy, redefining who is included in the phrase "We the People." This year, Orange County government will host a Juneteenth celebration on June 12, 2026. Chair Hamilton introduced the item. Commissioners read the following proclamation in turn: ORANGE COUNTY BOARD OF COMMISSIONERS PROCLAMATION RECOGNIZING JUNETEENTH 2O26 WHEREAS, Orange County has recognized Juneteenth as the moment when freedom finally reached all enslaved African Americans, marked by the arrival of Union troops in Galveston, Texas more than two years after the Emancipation Proclamation—reminding us of the strength of those who, even in bondage, sowed the seeds of liberation and began reuniting their families in the aftermath of slavery; and WHEREAS,the Orange County Board of Commissioners has reflected on Juneteenth as both a celebration and a solemn reminder of the long struggle for true freedom—recognizing that the end of slavery did not immediately bring justice, and that Black Americans have continuously led efforts to expand the meaning of democracy and belonging for all; and 6 WHEREAS,the 2026 Juneteenth Celebration,themed "Juneteenth Brings Balance to America's Celebration of Freedom,"connects to the America 250 celebrations going on across the nation this summer, reminding us that honoring Juneteenth is honoring the true legacy of the American struggle freedom; and WHEREAS, this year's events honor the service and sacrifices of Black people brought to this country against their will and waited for America to fulfill the promises laid out in the Declaration of Independence by including Black people; and WHEREAS, we are reminded by the words of Barack Obama: "Juneteenth has never been a celebration of victory or an acceptance of the way things are. It's a celebration of progress,"—a call to continuing fighting forward as an act of ongoing liberation; and WHEREAS,the June 12,2026 Orange County Juneteenth celebration will offer opportunities to gather and learn together—creating space for connection, remembrance, and shared purpose; NOW, THEREFORE, BE IT PROCLAIMED, that we, the Orange County Board of Commissioners, honor Juneteenth as a living tradition — a reminder of how far we've come, and a commitment to continue building a community rooted in truth, dignity, and repair. BE IT FURTHER RESOLVED that we proclaim Friday,June 19,2026 as JUNETEENTH FREEDOM DAY in Orange County, and encourage all residents to take part in commemorating this historic day—by learning from the past, gathering in the present, and carrying the work of freedom forward. This,the 2nd day of June 2026. Jean Hamilton, Chair Orange County Board of Commissioners A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler, to approve and authorize the Chair to sign the proclamation. VOTE: UNANIMOUS b. Proclamation Recognizing June 2026 as Pride Month The Board approved a proclamation recognizing June 2026 as Pride Month in Orange County. BACKGROUND: Each June, communities across the nation celebrate the courage and contributions of LGBTQ+ individuals while honoring the movement's roots in resistance and resilience. Pride Month commemorates the 1969 Stonewall Uprising in New York City — a spontaneous response to police harassment that sparked a nationwide push for LGBTQ+ liberation and visibility. The first Pride marches, held one year later, transformed that momentum into public demonstrations for equality, dignity, and freedom. Since Stonewall, LGBTQ+ advocacy has driven significant progress, including landmark Supreme Court decisions affirming marriage equality and workplace protections, as well as expanded federal hate crime legislation.Today, LGBTQ+individuals serve in leadership roles across every level of government,and Pride events around the world continue to amplify voices of joy, identity, and justice. 7 Despite this progress, challenges persist. Discrimination, targeted legislation, and violence — especially against transgender women of color—remain pressing concerns. LGBTQ+youth still face disproportionate levels of bullying and mental health risks. In Orange County, local data echoes national trends, underscoring the need for affirming spaces in schools and communities. Pride Month calls us not only to celebrate how far we have come, but to reaffirm the commitment to a more inclusive and equitable future where all people, regardless of sexual orientation or gender identity, are treated with dignity and respect. One of several Pride Month events happening around Orange County in June includes the Chapel Hill Pride Promenade on June 6, 2026 at 12:00 pm. Chair Hamilton introduced the item. Commissioners read the following proclamation in turn: ORANGE COUNTY BOARD OF COMMISSIONERS PROCLAMATION RECOGNIZING JUNE 2026 AS PRIDE MONTH WHEREAS, LGBTQ (Lesbian, Gay, Bisexual, Transgender, and Queer) Pride Month is celebrated nationally each year in the month of June,this month being chosen to commemorate the riots that took place at the Stonewall Inn in Manhattan on the morning of June 28, 1969, often viewed as the birth of the modern LGBTQ rights movement; and WHEREAS, Pride Month honors the legacy of LGBTQ trailblazers who paved the way for greater acceptance,visibility, and equality—from the courageous acts at the Stonewall Inn in 1969 to the ongoing advocacy that has led to transformative social and legal progress across the nation; and June serves as a time to reflect on these milestones, celebrate the rich diversity of the LGBTQ community, and recommit to building a future rooted in equity, inclusion, and justice for all; and WHEREAS, Orange County has a history of advancing the rights of its LGBTQ residents, including Carrboro becoming the first town in the state to enact a domestic registry for same sex partners,extending eligibility for employment benefits to same-sex partners of County employees in September 2004, and the election of gay and lesbian elected officials within the County; and WHEREAS, additionally, in January of 2021, Orange County was among the first local governments in the state(along with Hillsborough, Carrboro,and Chapel Hill)to adopt a local nondiscrimination law extending protections in public accommodation and employment for persons based on their sexual orientation, and gender identity or expression; and WHEREAS, Pride Month is a vibrant celebration of love, authenticity, and community, honoring the strength and resilience of LGBTQ individuals who continue to shape culture, drive progress, and inspire future generations; and Pride events across the country and in Orange County— such as the Chapel Hill Pride Promenade on June 6t" — provide opportunities for education, artistic expression, joyful visibility, unity, and foster environments where people of all identities can be seen, supported, and celebrated; and WHEREAS, Orange County is committed to standing with and supporting the LGBTQ community, and to working to ensure that all people, regardless of their sexual orientation or gender identity or expression, are treated with respect and dignity; 8 NOW, THEREFORE, we, the Orange County Board of Commissioners, do hereby proclaim the month of June 2026 as PRIDE MONTH in Orange County. This the 2nd day of June 2026. Jean Hamilton, Chair Orange County Board of Commissioners A motion was made by Commissioner McKee, seconded by Vice-Chair Fowler, to approve and authorize the Chair to sign the proclamation. VOTE: UNANIMOUS 5. Public Hearings None. 6. Regular Agenda a. Opioid Advisory Committee Settlement Use Recommendations The Board received an update on the Opioid Advisory Committee (OAC), received OAC recommendations for use of Opioid Settlement Funds that support Option A of the NC Memorandum of Agreement on the Allocation and Use of Opioid Settlement Funds in North Carolina, and directed staff to present a final spending authorization resolution at the Board's June 16, 2026, Business meeting. BACKGROUND: In July 2021, a bipartisan coalition of state attorneys general announced the National Opioid Settlement — a historic $26 billion agreement that will help bring desperately needed help to communities harmed by the opioid epidemic. The State of North Carolina and all 100 counties, including Orange County,joined the agreement. Orange County is expected to receive $12,748,445 million over an 18-year period. In September 2022, the BOCC approved the appointment of the Orange County Opioid Advisory Committee with the following charge: • Discuss opioid-related health concerns and issues impacting the residents of Orange County; • Advise the Board of Commissioners on options to expend funds to prevent opioid abuse and remedy opioid impacts; • Plan and host an annual meeting open to the public to receive input on proposed uses of the settlement funds and to encourage collaboration between local governments. The Board also approved Option A for the use of the settlement funds per the NC Memorandum of Agreement Opioid Settlement. In FY 2025-26, Orange County has received a total of$1,020,216.03. Additionally, $56,236 of interest has been recorded. The Request for Proposals(RFP) process opened on January 1, 2026. Four(4)Application Workshops were conducted with two (2) in-person and two (2) virtual options. Technical assistance was provided to applicants during the RFP process. Six(6)community applications were received by the February 20,2026 deadline. The Application Subcommittee of the Opioid Advisory Committee (OAC) reviewed applications 9 and made recommendations to OAC. The OAC reviewed the Subcommittee's recommendations on April 13, 2026. The following recommendations for the 2026—2027 funding cycle are as follows: • Freedom House—$85,906— Reentry • El Futuro—$66,310—Early Intervention • UNC-Student Wellness—$10,000—Naloxone Distribution • TOTAL RECOMMENDATION—$162,216 Tonya Stancil, Harm Reduction Coordinator, made the following presentation: Slide#1 . D . , � , . � June 2, 2026 10 Slide#2 NC Memorandum of Agreement (MOA) • The MCA governs the allocation,use,and reporting of certain opioid settlement funds in North Carolina. • To comply with the MOA,a local government receiving opioid settlement funds must do the following: • A.Establish a fund.A local government receiving opioid settlement funds must secure them in a special revenue fund.These funds are subject to audit and cannot be commingled with other funds. • B.Authorize spending.Before spending opioid settlement funds,a local government must authorize the expenditure of such funds.This must take place through a formal budget or resolution that includes certain details including the amount,time period,and specific strategy funded. • C.Understand and follow the options.A local government must spend opioid settlement funds on opioid remediation activities authorized under Option A or Option B as detailed in the MOA. • D.Report spending and impact.A local government that receives,spends,or holds opioid settlement funds during a fiscal year must file an annual financial report within 90 days of the end of the fiscal year.(This report is required if funds are received or held,even if they are not spent.)A local government that spends opioid settlement funds during a fiscal year must file an annual impact report within 90 days of the end of the fiscal year. • E.Hold annual meeting.The MOA requires that each county receiving opioid settlement funds hold at least one annual meeting open to the public,with all municipalities in the county invited to the meeting.The purpose of the meeting is to receive input from municipalities on proposed uses of the opioid settlement funds and to encourage collaboration between local governments. https://ncdoi.gov/wp-content/uploads/2022/03/NCACC-web-version-Fi na I-Opiold-MOA-.Pdf Tonya Stancil provided background, explaining that the opioid settlement funds resulted from national litigation stemming from the opioid epidemic and are distributed to local entities such as Orange County following state-level direction. She explained that North Carolina retains 15% of the funds at the state level, with 85% distributed locally. North Carolina has developed a Memorandum of Agreement governing fund usage. She noted that Orange County's annual impact report and finance report are due September 27th each year. Slide#3 Option A- High-Impact Opioid Abatement Strategies i.Collaborative Strategic Planning 2.Evidence-based addiction treatment 3.Recovery support services a.Recovery housing support s.Employment-related services 6.Early intervention 7.Naloxone distribution s.Post-overdose response team 9.Syringe Service Program 1o.Criminal justice diversion programs 11.Addiction treatment for incarcerated persons 12.Reentry Programs https://www.morepowerful nc.org/wp-content/uploads/2021/10/Exhi bit-A-to-NC-MOA-3.pdf 11 Slide#4 Orange County Opioid Advisory Committee Charge Advise the Board of Plan . . .. public . receive Discuss opioid-related health Commissioners on options to . concerns and issues impacting —3. � expend funds to prevent oploid —2___;- input on proposed encouragethe residents of Orange County; abuse and remedy opioid settlement funds and to • .•• between • governments. Tonya Stancil described the role of the Opioid Advisory Committee, which is charged with discussing opioid-related health concerns, advising the Board on community award options, and planning and hosting the annual public meeting. Slide#5 2026-2027 Opioid Settlement Fund Proposals • Applications for the 2026-2027 Opioid Settlement Funds became available January 1,2026. • Application Workshops were offered: • January 1511—Whitted Human Services, Hillsborough, INC • January 13th—Southern Human Services,Chapel Hill, INC • January 20th and 22"d-Virtual • Open Question Period • February 21d—130,2026 • Frequently Asked Questions(FAQs) posted online and updated • February 20,2026,5 p.m.—Applications Due via Email to Harm Reduction Coordinator,Tonya Stancil. • March—April 2026—OAC Funding Subcommittee review applications • June 2026—Funding Recommendations presented to BOCC • July 1,2026—Awarded Contracts begin Tonya Stancil walked through the 2026 application process and timeline. 12 Slide#6 Funding Proposal Application • Agency General Information • Proposal Summary(required but not scored) • Project Narrative(16 points) • Project Description&Program Sustainability(28 points) • Equity Impact(8 points) • Organizational Readiness(20 points) • Evidence of Collaborative/Partnerships(10 points) • Performance Measures&Program Evaluation(18 points) • Priority Strategy(5 extra points) • Supporting Documents Included: Letters of Commitment and/or Support (Up to 5 letters) • Latest Audited Financial Statements,including Management Ietter(Attach Ietter of exp Ian at!on if unable to provide) • Documentation of Tax Identification Number(can be IRS Determination Letter for non-profit agencies) • Certificate of Insurance • Non-Profit Agencies -IRS Determination Letter,Verification of 501(c)(3)status form,990 Form Tax Form,Board of Directors Roster • For-Profit Agencies—Board of Directors Roster,Agency Org Chart,IRS Tax Form used for latest fiscal year filing Slide#7 Subcommittee Criterion Discussion Criterion 3b:"Well-planned activity that is likely to lead to the intended opioid-related impacts,based on the evidence base about strategy and/or activity effectiveness for the prioritized population:' The"priority population"as defined for this purpose: ��• " a *Rm:1;-� a-Po • Individuals at highest risk for overdose in Orange County --E W "` ...a�n • Individuals with multiple Adverse Childhood Experiences(ACES), wn Substance Use Disorder during pregnancy and in first year of ...,m".,. „. Post Partum. Children and adolescents at risk for drug use. Individuals in treatment or recovery. Individuals involved,or at risk of becoming involved,in the '° Criminal Justice system. Tonya Stancil noted that one change from the prior year's process was the addition of a five-point priority bonus in the scoring rubric for applications submitted under community-identified priority strategies,based on voting conducted at the 2024 annual public meeting.The scoring rubric was also made publicly available on the website. 13 Slide#8 Opioid Settlement Fund Applications (7)Applications Received 1) El Futuro $66,309.79 2) Freedom House $85,907.00 3) UNC—Student Wellness$106,906.24 4) UNC- SHAC—$64,141 s) U NC—FOCUS—OAC - $99,999.90 6) Reintegration Support Network- $20,000 7) Early Identification Early Intervention Outreach Program— Budget worksheet was not completed and submitted until after deadline and therefore was not scored and considered. Tonya Stancil reported that seven applications were received. One application was not reviewed because the applicant failed to submit a complete application. Slide#9 Funding Recommendation: Ell Futuro • Option A,Strategy 6(Early Intervention) • Funding Period—July 1, 2026—June 30, 2027 • Funding request—$66,309.79 • Funding recommendation—$66,310.00 • Description of Activity— Y El Futuro will build upon last year's programming preventing and addressing substance use disorders (SUD), including opioid use disorder(OUD) and co-occurring mental health conditions among economically disadvantaged youth and young adults. '*This initiative will train Community Mental Health Workers(CMHWs) in Screening, Brief Intervention, and Referral to Treatment(SBIRT)and Motivational Interviewing(MI)to strengthen early intervention efforts and expand access to culturally and linguistically appropriate services. '*Developing and distributing Spanish-language educational materials and conducting bilingual workshops,social media campaigns,and youth-focused community engagement that increases knowledge of opioid risks,improves awareness of behavioral health services, and ensures targeted populations receive accurate,stigma-free information and access to early intervention services.This will include education on the dangers of medication sharing and harm reduction strategies. 14 Slide#10 Funding Recommendation: Freedom House • Option A,Strategies 12(Reentry) • Funding Period—July 1, 2026-June 30, 2027 • Funding request—$85,907.00 • Funding recommendation—$85,907.00 • Provider—Freedom House Recovery Center • Description of Activity— Freedom House connects with individuals screened in the Orange County Detention Center who have a history of Opioid Use Disorder.The licensed clinician was formerly funded 2023-2025 and conducts a comprehensive clinical assessment to ascertain the best treatment options for the individual prior to or upon release from incarceration. vThe Peer Support Specialist assists individuals with gettinq to treatment,court appearances, linkage to community resources and other needs to curb recidivism.-Position formerly funded with Opioid Settlement funds 2023-2025 and 2025-2026. Funds would cover salary/benefits,cell phone service, mileage and training. Slide#11 Funding Recommendation: UNC — Student Wellness • Option A, Strategy 7 (Naloxone Distribution) • Funding Period-July 1, 2026-June 30, 2027 • Funding request-$ 106,906.24 • Funding recommendation -$10,000 • Description of Activity- yAims to increase the availability of naloxone to expand campus-wide opioid overdose prevention education and naloxone distribution program. v Program aims to increase the availability of naloxone in high-traffic areas on campus. y Funding would provide naloxone supply for use in distribution. Tonya Stancil noted that the total of the three recommendations is$162,217, below the available ceiling of$200,000. 15 Slide#12 Next Steps: Funding recommendations - • to BOCC in June . . We have been granted up to$200,000 for community grants. BOCC decides on final funding decisions. Ad OCHD Staff notifygrant awardeesand work • - • - •• ' • • 1ffil • Now • Tonya Stancil noted that upon board approval,contracts would be developed and executed in time for a July 1st start. Slide#13 A • • • Commissioner Carter thanked Tonya Stancil for her report and work on distributing the funds.She asked her to explain the reasoning behind the significant gap between UNC's request and the amount awarded. 16 Tonya Stancil said that the committee felt UNC, as a large institution, should be supporting that programming more substantially on its own, but that the committee also did not want students to be without access to Naloxone that they might not otherwise have. The $10,000 award was therefore intended to ensure a base supply on campus. Commissioner Portie-Ascott asked about the early identification and early intervention outreach program that was not awarded funds, specifically whether services of that kind were being provided by any of the other awarded organizations. Tonya Stancil said that the application was not looked at because it wasn't submitted in full by the deadline. Because the committee focused only on the complete and eligible applications, they did not analyze the content of the incomplete application in detail. Commissioner Portie-Ascott asked if that practice is consistent with what has been done in the past. Tonya Stancil said all the applications last year were submitted in full by the deadline. A motion was made by Vice-Chair Fowler, seconded by Commissioner McKee, to direct staff to present a final spending authorization resolution to the Board on June 16, 2026. VOTE: UNANIMOUS b.Acceptance of Updated Orange County Agricultural Viability and Farmland Stewardship Plan The Board accepted the updated Agricultural Viability and Farmland Stewardship Plan for Orange County to replace the 2009 Plan document. BACKGROUND: In 2009, the BOCC adopted the County's first Agricultural Development and Farmland Preservation Plan, prepared by the Agricultural Preservation Board (APB) in response to state legislation passed in 2005 that encouraged counties to develop such plans as a means of enhancing local support for farmland preservation and improving the economic viability of farming operations. In 2022, the APB started work on a three-year project to update and replace the existing 2009 Plan.The timing of this Plan update project will allow the APB to meet its goal of having a completed Plan that can provide an agricultural preservation component for integration into the County's current Land Use Plan 2050 update process. The APB is pleased to present this updated version, entitled Agricultural Viability and Farmland Stewardship Plan for Orange County, to replace the existing Plan. This document represents hundreds of hours of dedication and hard work by the APB's Farmland Protection Subcommittee and includes input and feedback from area farmers, along with collaboration with the staff of the following: Orange County Center of NC Cooperative Extension, Orange County Soil and Water District, the Orange County Planning Department and Orange County DEAPR. An initial draft of the updated Plan was presented to the BOCC at a work session on April 8, 2025. At that time, BOCC members shared their insights and provided valuable feedback.The subcommittee edited and revised the Plan to address the various questions and issues raised by the BOCC. At the direction of the BOCC,the subsequent draft was then reviewed by Planning and Legal staff. Their recommendations have been incorporated into the attached final draft version. Once approved,the new Plan must be forwarded to the staff of the North Carolina Agricultural Development and Farmland Preservation Trust Fund (ADFP) for acceptance. This is required to allow Orange County to continue to receive preference and enjoy reduced matching fund requirements for state ADFP Trust Fund grants, which are awarded on a competitive statewide basis. Trust Fund grants are an important source of funding for farmland 17 preservation efforts, as the funds allow County funds to be significantly leveraged. Since 2016, Orange County has been awarded just over $1.9 million in ADFP Trust Fund grants to support farmland projects being undertaken through the Lands Legacy and Conservation Easement programs. Having a current, updated Plan also demonstrates Orange County's strong commitment to farmland preservation, an important factor in the ADFP Trust Fund's competitive application evaluation process. Michael Hughes, Agricultural Preservation Board (APB) Chair, made the following presentation: Slide#1 Presentationof • • . ' • Farmland Stewardship Plan 1 • .Viability and for . • ' County ' r Stewardship Planz s. O.ORANGE June 2, 2026 SO1 WAFER b"� ® ORANG£COUN7Y E NORI'I[=iR 'A Michael Hughes said the Plan represents three years' worth of hard work by the Agricultural Preservation Board (APB), specifically the subcommittee that drafted the plan. He recognized APB staff members, subcommittee members, and farmers in attendance for their work and support of this plan. He specifically recognized Jane Saiers, who he said put in many hundreds of hours in leading the drafting effort. 18 Slide#2 Soil Surveys and Land Use Planning Michael Hughes read the preface from the 1966 book Soil Surveys and Land Use Planning, noting its contemporary relevance:that good agricultural land faces increasing pressure from urban growth,that many of the decisions about land use are irreversible, and that the importance of sound land use planning is paramount. He argued that sixty years later, the threats to Orange County's productive farmland are even more pressing and referenced the common refrain among farmers that once farmland is developed, it's forever lost for farming. Slide#3 Michael Hughes reported that between 2017 and 2025, Orange County lost 24% of its active farmland — a decrease from approximately 70,000 acres to 53,000 — according to the most recent USDA Census of Agricultural Statistics. He described the dominant pattern of new residential development outside municipal boundaries as large-lot subdivisions on prime, level farmland,the form of development that consumes the greatest acreage per housing unit. He emphasized that supporting local agriculture is also an economic development priority, with farming operations spanning traditional crops, intensive small farms, and agritourism, all providing jobs, income, and tax revenue. He also cited an economic analysis showing that for every dollar of property tax revenue generated by farmland, Orange County spends approximately$0.72,whereas residential development costs approximately$1.32 per dollar of tax reven ue. 19 Slide#4 MEN 1.7 "So while we have worked our butts off to protect Ail- Chatham Pack 34,000 acres of farmland, we r going • • to • r 11 ,500 r I a Orange County projected to CommissionerNC of in 2024, referring to new mega-sites for lose between 14,000 and factories acrossthe state and the massive yearsChatham Park development 19,000 acres of farmland in the next 15 FarmlandAmerican Trust and Orange Countydata Michael Hughes discussed projections that Orange County will lose between 14,000 and 19,000 acres of farmland in the next 15 years (approximately 1,000 acres per year), largely to housing development. He highlighted bright spots, including Orange County's Lands Legacy Program, which since 2000 has protected over4,200 acres through conservation easements, including 29 agricultural easements protecting 2,300 acres. Slide#5 Voluntary Agricultural District and Enhanced Voluntary Agricultural District Program-Spring 2026 Map showing aLL farms in the VoLuntary Agricultur � ,s�eiewei� 1Program • the Enhanced•Voluntary Agricultural. (EVAU - - High RoChrEPand ''../1 I) Program as of April. 1 • for totaL of ■ S[hley�•nb w � 162 farms encompassing 17,833 acres f�L ` L - HiN bq ougn, iY�,4cyt Y J 1 r VAD Farms: 1 - • 1 Cane Creek75uckhwn i New Hope' CI++ wnn�cr... ORANGE CCOOUNTY crossuri / J 66 L _ Primary goals of our new Plan: Goal 1: Plan FOR Agriculture: Elevate the importance of agriculture in land use planning by prioritizing it in the 2050 Land Use Plan Goal 2: Conserve Farmland Through Direct Measures: promote and support agricultural conservation easements and voluntary agreements; assist landowners with farm succession planning Goal 3: Enhance the Economic Viability of Agriculture: promote measures that support farmers in expanding and diversifying their businesses, including educational opportunities, business development and marketing, and continued support for the County's Ag Economic Development grant program. 21 Michael Hughes summarized the plan's three primary goals. Slide#8 PRIORITY 1 f • Objectives 1. Identify the priorities and resources necessary to implement the Climate Action Plan. " • • •• 2 Invest in our infrastructure to reduce the environmental impact of the County Beet/facilities and improve safety. 3 Improve educational opportunities for County staff and • • • .•• community members on climate action and available resources to advance climate action projects. • •. • 4. Incentivize and promote sustainable agriculture and local food systems development through supportive policy,funding, • • farmland protection and educational outreach • • _ • • _ 5. Review land use policies to promote and connect Town, County,and private trails and open spaces. • - • & Protect water supply/watersheds.. 7, Conserve and protect high priority open space,including • `• • • Natural Heritage sites,nature preserves,watershed riparian buffers,and prime/threatened farmland. 8 Include environmental stewardship objectives in the Comprehensive Land Use Plan. Michael Hughes connected the plan's goals to the county's Strategic Plan 2025-2029 objectives on environmental protection and climate action. Slide#9 �.._ ..+7��,v �2, ty .{�.y S�.r�+r�4.k.• _ r . 16 - a 22 Michael Hughes noted that neighboring counties, including Wake and Chatham, have recently implemented robust new farmland preservation programs in response to similar pressures. He closed by asking the Board to accept the plan, reiterating that it is intended as a dynamic document to be updated biannually, with implementation of its recommendations targeted for 2026 through 2030. Chair Hamilton thanked the APB and staff for their hard work and the level of detail provided. She recognized those who had signed up to make public comment on this item. PUBLIC COMMENT: John Dempsey offered three points in support of the plan. First, he cited food security, noting that local family farms fed Orange County residents during the COVID-19 pandemic when regional food distribution was disrupted, and that growth in surrounding counties will increase future market demand for local food. Second, he argued that preserving agricultural and rural residential zoning is essential to protecting future drinking water resources, pointing to the well-documented phenomenon of "urban stream syndrome", the scientifically documented degradation of freshwater streams resulting from current development practices, and noted that current zoning is the primary protection against further destruction of municipal water supplies. Third, he urged the Board not just to adopt but to embrace the plan, asserting that it aligns with the overwhelming wishes of residents expressed during public input sessions and the strategic plan survey, which reflected strong expectations that farmland and environmentally sensitive lands would be preserved. Margo Lakin described her reliance on local farms during the pandemic and continued dependence on local farmers for daily food.She asked the Board to protect farmland by accepting the plan and referenced multiple land use plan public input sessions in which community members identified farmland conservation as a top priority. She cited a briefing by Clarion Associates in which the comprehensive land use plan's public survey identified family farms as the second-highest priority for conservation behind parks and nature preserves,with protecting farmland and healthy soil ranking second and third as key environmental priorities. Ashley Parker said she is a 5th-generation farmer in Hurdle Mills. She thanked the subcommittee that worked on the plan and acknowledged the complexity of the data and the deeply personal nature of agriculture. She described the web of relationships that underlie farming. She offered an example,tracing the lifecycle of a single steer from her farm through Piedmont Custom Meats in Gibson to the rendering of bones, hides, and hooves into fertilizers, pharmaceuticals, insulation, soaps, adhesives, glues, shoes, and even violin strings. She stated that Orange County can feed only approximately 30% of its current population with existing farmland and argued that once farmland is lost, the county will be forced to outsource its food production. She also addressed the present-use value tax deferral program, noting it allows farmers to sustain their operations during difficult years, and called on the Board not to rely on farm failures and the resulting deferred tax recapture to fund county operations. Pat Mann,who homesteads on 27 acres in Cedar Grove and produces 75-80%of his family's food, called on commissioners to change their approach to land use decisions, arguing that prioritizing revenue over land stewardship will ultimately fail the community. He described his prior experience as a pediatric nurse and his belief that no parent wants their child to have unsafe water, polluted air, or processed food shipped from thousands of miles away. He argued that small intensive farmers with affordable access to land can provide fresh,organic food within days, and that their spending stays in the local community. He also urged the Board to broaden its definition of productive farmland, noting that even undeveloped land produces value by allowing water to recharge aquifers. Marlena Byrne said she lives in Hillsborough and is part of the Ten Mothers Farm CSA and attends the local farmers' market weekly. She said she loves knowing where her food comes from, meeting the people who grew it, and walking to pick it up. She said locally grown, healthy food should be available to all North Carolinians. She noted her professional roles as acting Chief Resilience Officer for the state, a 23 land use planning lawyer, and former board chair of Triangle Land Conservancy, and described how her work on climate resilience policy has deepened her understanding of small,diverse, local food production. She cited the impacts of extreme weather events, including Hurricane Chantal the prior year, as evidence that diverse local farms producing multiple crops provide greater food system resilience than monocultures.She argued that the Triangle's rapid growth need not come at the expense of farmland,and urged the Board to act now, warning that once these farms are converted to development, they are gone forever. Following public comment,Commissioner Bedford thanked the presenters and noted she had read the plan last night. She expressed appreciation for the appendices, which she found helpful in understanding which elements of the Unified Development Ordinance are implicated. She raised a distinction between preserving open space and preserving farmland as something she would like to see reflected more clearly in the land use plan, and referenced page 172 of the plan,which addresses how to define prime farmland, including the criteria of less than 8% slope and location outside municipal ETJs. She asked staff to help her understand how the different county departments like Cooperative Extension, the farm agency, and the planning and development department, would coordinate to implement the plan, and how the existing conservation easement rubric would be applied specifically to farmland. She expressed support for adopting the plan and suggested sitting down with some of the subcommittee members to deepen her understanding of implementation. Finally, she shared a personal anecdote about a honeydew melon from a local farmers' market that was unlike anything available at a grocery store. Vice-Chair Fowler added her appreciation for the work invested in the plan and described it as a very detailed roadmap to mitigate land loss and foster farming into the future. She reflected on her own background and noted her daily work as a pediatrician counseling families to eat fruits and vegetables. She confirmed she would vote to accept the plan. Commissioner Carter also thanked the APB for this proposal. She clarified that there are some recommendations that the Board needs to talk more about how to implement. She said there is a path forward for the Board to have those conversations. Commissioner Greene said this plan has real structural improvements from the prior version. She highlighted her appreciation for how the plan integrates with the land use plan,strategic plan,and climate action plan. She referenced illustrations on page 25 from the American Farmland Trust, originally presented by Jane Sears at an Ag Summit several years ago, which she said clearly illustrated that minimizing sprawl and preserving farmland are two sides of the same coin. She noted resources already available in the community,including lawyers in Hillsborough experienced in farm succession planning and dozens of CSAs.She also underscored the need to broadcast the value of Orange County's agriculture more broadly, noting that some residents in town may not realize the productive value of rural lands. Commissioner Portie-Ascott offered thanks to the farmers, drawing on her own upbringing as the child of a tobacco and peanut farmer in Eastern North Carolina, and expressing her overall support for the plan. Commissioner McKee said he still views himself as a farmer even though it is a smaller operation than it used to be. He shared that the last coherent sentence his mother spoke was to tell her children that they could not sell the family land, which had been in the family for over 200 years. He noted the intense market pressure on farmland, citing adjacent property sales at $28,500 per acre and $62,000 per acre. He spoke candidly about the difficulty of farming, comparing profitability to development, stating that in two years of developing part of a farm he had rented and worked for 19 years, he made significantly more money than in all those years of farming. He stated that succession plans, while valuable in theory, are often ineffective in practice because any family member who wants to sell can force a sale. He argued that the county cannot regulate or legislate its way to farmland preservation, but can help develop markets, processing facilities,and aggregation capacity,citing the county's food and agriculture processing 24 facility as an example. He expressed wholehearted support for the plan while urging realism about the pressures involved. A motion was made by Chair Hamilton, seconded by Commissioner Bedford, to authorize staff to submit the final plan to the Agricultural and Farmland Protection Trust Fund program. Commissioner Greene asked about the plan's reference to a feasibility study for a regional market and aggregation distribution center near 1-40 and 1-85, in collaboration with the NC Department of Agriculture and in coordination with Tri-COG FEEDS. She asked about the status of that initiative. Mike Ortosky responded that Tri-COG FEEDS was a project funded across three Councils of Governments to address supply chain issues in the region. The study focused on shortening and regionalizing food supply chains, with aggregation and distribution identified as critical needs. He noted that the report supports the concept of a food hub and light industrial food campus, pointing to examples such as Weaver Street looking for larger shared space, and described possibilities for shared cold chain management, aggregation, and distribution transportation systems. VOTE: UNANIMOUS Commissioner Bedford asked if any farmers in the room had applied for the agriculture grants, and some members of the audience responded yes. c. Update on Interlocal Agreement between County and Towns for Tax Collection The Board received an update on the discussions with the towns on the current Tax Collections Interlocal Agreement (ILA) and provided direction to staff on potential action to terminate the ILA. BACKGROUND: In 1979 the County entered into an agreement with Chapel Hill, Carrboro, and Hillsborough whereby the Orange County Tax Collector would, on behalf of the Towns, bill and collect the towns'tax levies in accordance with North Carolina General Statute 160A-461. In 2006 the agreement was updated, and the municipal tax collection rate was set at 0.5% of the annual amount collected for each of the towns.The expiration was set not to exceed 99 years from July 1, 2006. The agreement requires unanimous agreement from all three (3) towns to make amendments and requires a one-year notice for termination. Research by Tax Office staff indicates that the current 0.5%municipal tax collection rate is below the state average. In a survey of over 25 county collection fees, the average and most common fee from counties is 1.5%of municipal tax collection. Orange County's tax collection fee was the lowest in the survey group. The Board of County Commissioners has entered into an agreement with GAR Associates to make recommendations on enhancements to the Assessment Division of the Tax Office. These enhancements will be targeted to ensure a more equitable and better communicated revaluation in 2029. The County would be able to utilize additional municipal funding to support the recommendations made by the consultant and other tax office divisions enhancements. County staff provided this information to the Board of County Commissioners in February 2026, and received direction to communicate with staff from the three (3) entities. The County had staff-level conversations with Carrboro and Hillsborough, as well as manager-level conversations with Chapel Hill. 25 Given the limitations of the current agreement—the unanimous agreement requirement for amendment, the 99-year term, and the one-year termination notice — County staff believe that the County should terminate the current agreement. This would allow the County to enter into more limited term agreements with each municipality separately. To begin negotiations for tax collection in the 2027-28 fiscal year,the County would need to terminate the agreement prior to June 30, 2026. Kirk Vaughn, Budget Director, made the following presentation: Slide#1 ORANGE COUNTY NORTH CAROLINA Interlocal Agreement — County and Towns Taxation Collection Board of Commissioners Business Meeting June 2, 2026 Slide#2 Current Joint ILA for Municipal Tax Collection Charges • Original Interlocal Agreement made in 1978 in accordance with North Carolina General Statute 160A-461 to collect taxes for Carrboro, Chapel Hill, and Hillsborough. • Updated in 2006—single agreement that included all three towns. • Municipal tax collection rate set at 0.5%of the annual amount collected for each of the towns with an expiration of agreement set not to exceed 99 years from July 1, 2006. • Agreement requires unanimous approval from all three towns and County to make amendments and requires a one-year notice for termination. ORANGE COUNTY 2 NORTH CAROLINA 26 Kirk Vaughn noted that the original agreement dates to 1978 and was last updated in 2006. It is a single agreement among all parties, including the county and three towns, with a 99-year term. Any amendment requires unanimous approval by all parties, and termination before the end of the term requires a one-year notice. Slide#3 Purpose The Tax Office and Budget have met with all three towns, and informed them of the county's interest in replacing the current agreement with separate agreements with regular 5-year terms. Staff are seeking guidance from Board whether to terminate agreement prior to June 301", to renegotiate for FY 28. �_ s ORNAoR GEGCOUNTY IZA Kirk Vaughn reported that he and Tax Office staff had met with all three towns to inform them of the county's interest in replacing the current agreement with separate,individually negotiated agreements with regular five-year terms. Slide#4 Tax Office Operating Expenses Tax Office Expenditures $6,000,000,00 • Increased by 62% since 2016 $5,000.000.00 • $1 ,882,056 increase in annual needs $4,000,000 00 • Operating Expenses have $3,00C,000,00 outpaced Municipal Fee $2,000,000.00 Revenue $1,00°.000°° • Municipal Fee covers 7% of Dept Expenses $ °° 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ORANGE COUNTY 4 NORTH C_A.ROLINA 27 Kirk Vaughn said that the municipal fee currently covers only approximately 7% of department operations, even as department costs have increased significantly. Slide#5 Survey: Fees Charged for Municipal Tax Collection • Tax Office staff surveyed counties In Comparison, Orange's Cost for municipal collection rates, and To Municipalities is the lowest combined results with results of a at 0.5%. Wake County survey. 1.50% 10 2.00% 4 • Twenty-seven counties 0.75% 3 1.00% 3 3.00% 2 • Range from 0.5%to 3.0%. 0.50% 2 1.75% 1 0.85% 1 • Ten counties charge 1.5% 1.25% 1 Grand Total 27 Median 1.50% • Average rate 1.45% Average 1.45% ORANGE COUNTY 5 NORTH CARC)LINA Kirk Vaughn shared results from a survey of counties across the state, which found that Orange County's fee of 0.5% of collections is the lowest of the quarter of counties surveyed, with the average being approximately 1.5%. Slide#6 Wake County Fee Increase • Wake County presented to Tax Assessment Workgroup on December 2nd • In 2021 went through similar review of its costs to municipalities, which was significantly below peers. • Implemented four-year phase in from FY 2022 through FY 2025 from 0.2% to 0.75%. • Goal was to have Municipal Fees cover 50% of Operating and Revaluation expenses. • Funded enhancements to the office in that four-year window. • Since 2024 revaluation, Wake BOCC committed to a transition from 4-year cycle to 2-year cycle by 2029. ORANGE COUNTY 6 NC>RTH CARC-3LINA Kirk Vaughn referenced Wake County's experience moving from 0.2% to 0.75% over a phased period, noting that while Wake's larger tax base makes 0.75% generate substantially more revenue, the process is instructive. 28 Slide#7 Questions? Kirk Vaughn asked the Board whether they wished to provide direction to terminate the current agreement before June 30, 2026, so that new individual agreements could be in place for the FY 2027-28 tax year. He clarified that the county would still collect taxes for the towns in FY 2026-27 during the negotiation period. Commissioner Carter said she supports this direction and thanked staff and the towns for the initial conversations. Commissioner Bedford agreed. She asked whether the county could give the towns a firm price now, and whether this process is connected to or independent from the Tax Assessment Work Group. Kirk Vaughn responded that while the revenue generated from the new fees would likely fund some recommendations from the Tax Assessment Work Group, the rate negotiation itself is more about returning to a peer-average level. He noted that the county would have a full year to negotiate and that the team has discussed phasing in any rate increases to avoid abrupt jumps for the towns. Commissioner Bedford said she doesn't necessarily want to make a profit, but acknowledged that, currently,the county is losing money providing this service. Commissioner Portie-Ascott asked if it is reasonable for each town to have the same rate. Kirk Vaughn said that would be the goal, but it would be dependent on individual negotiations with each municipality. Commissioner Bedford added that it would also be based on the number of bills going out to each jurisdiction. Kirk Vaughn said it would be based on each town's levy. Chair Hamilton clarified that the levy refers to a percentage and is not based on the total bills. Kirk Vaughn confirmed that it is a percentage of tax revenue collected. Commissioner Carter referenced discussions from the Tax Assessment Work Group, in which Wake County presented how they re-engineered their revaluation process to address equity issues. She noted that Wake's tax administrator proposed funding 50%of the tax office's cost of administering municipal tax services through municipal service fees, apportioned based on each municipality's tax base. Wake County's board approved a phased implementation plan, which has helped fund re-engineering work in the Wake County tax office. Chair Hamilton asked whether Wake County had shared how their municipalities responded to the proposed changes and questioned whether directly comparing Orange County to Wake County is appropriate given the significant difference in tax base size. Vice-Chair Fowler agreed with providing notice of termination. Commissioner McKee also agreed and endorsed the need for no more 99-year agreements. 29 A motion was made by Vice-Chair Fowler to terminate the current Interlocal Agreement prior to June 30, 2026, in order to renegotiate the individual terms with each of the municipalities. The motion was seconded by Commissioner McKee. VOTE: UNANIMOUS 7. Reports None. 8. Consent Agenda A motion was made by Vice-Chair Fowler, seconded by Commissioner McKee, to approve the consent agenda. VOTE: UNANIMOUS a. Minutes for May 5, 2026 The Board approved the minutes for the May 5, 2026 Board of Commissioners Meeting. b. Motor Vehicle Property Tax Releases/Refunds The Board adopted a resolution to release motor vehicle property tax values for six (6) taxpayers with a total of six (6) bills that will result in a reduction of revenue. c. Property Tax Release/Refund The Board adopted a resolution to release a property tax value for one (1)taxpayer with a total of one (1) bill that will result in a reduction of revenue. d. National Gun Violence Awareness Day Proclamation The Board approved a proclamation recognizing June 5, 2026 as National Gun Violence Awareness Day. e. Trails Day Proclamation The Board approved a proclamation declaring June 6, 2026 as "Trails Day" in Orange County. f. Fiscal Year 2025-26 Budget Amendment#11 The Board approved budget, grant, and capital project ordinance amendments for Fiscal Year 2025-26. g. Approval of a Contract with Samet Corporation for Construction Manager-At-Risk Services for the Renovation of the John M. Link,Jr.Government Services Center and Construction of the Sheriff's Evidence Storage Facility The Board: 1) Reviewed the proposal and contract with Samet Corporation for Construction Manager-At Risk services for the renovation of the John M. Link, Jr. Government Services Center and the construction of the Sheriff's Evidence Storage Facility; 2) Approved funding for Phase I only at a cost of$193,339 for pre-construction services; and 3) Approved and authorized the County Manager to execute the contract, subject to final review by the County Attorney, and any subsequent amendments for contingent and unforeseen requirements up to the approved budget amount on behalf of the Board of County Commissioners. h. Approval of Construction Contract Award—Electric Vehicle Charging Station (EVCS) Installation Project at the Orange Transportation Services Facility The Board: 1) Approved the County entering into a construction contract with Stelco Electric LLC for the installation of Electric Vehicle Charging Stations (EVCS) at the Orange Transportation Services Facility; and 30 2) Authorized the County Manager to execute the Agreement, subject to final review by the County Attorney,and any subsequent amendments for contingent and unforeseen requirements up to the approved budget amount on behalf of the Board. i. Approval of Construction Contract Award—Resurfacing of Little River Regional Park Driveway, Parking Area, and ADA Walking Trail The Board: 1) Approved the County entering into a construction contract with Lanier Construction Company for the resurfacing of the driveway, parking area, and ADA walking trail at Little River Regional Park and Natural Area; and 2) Authorized the County Manager to execute the Agreement, subject to final review and approval by the County Attorney, and any subsequent amendments for contingent and unforeseen requirements up to the approved budget amount on behalf of the Board. j. Approval of an Updated Increased Cost of Existing Service Policy for Transit The Board approved an updated Increased Cost of Existing Service (ICES) Policy, part of the Transit Governance Financial Policies and Procedures. 9.County Manager's Report Travis Myren reminded the Board of the June 4 Budget Work Session. 10. County Attorney's Report Staff Attorney James Bryan had no report. 11.Appointments None. 12. Information Items • May 19, 2026 BOCC Meeting Follow-up Actions List • Tax Collector's Report— Numerical Analysis • Tax Collector's Report—Measure of Enforced Collections • Tax Collector's Report— In-Rem Foreclosure Progress Report • Tax Assessor's Report—Releases/Refunds under$100 13. Closed Session None. Adjournment A motion was made by Vice-Chair Fowler, seconded by Commissioner Bedford, to adjourn the meeting at 9:12 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