Orange County Board approves 2025-2026 budget with property tax rates and employee pay increases

The Orange County Board of Commissioners convened on June 5, 2025, to discuss and approve the fiscal year 2025-2026 annual operating budget and the first year of the capital investment plan budget. The meeting focused on several key financial decisions that will impact the county's operations and services.

The board approved the manager's recommended budget, which included modifications discussed in previous meetings. A resolution was passed expressing the board's intent to adopt the budget ordinance on June 17, 2025. The ad valorem property tax rate was set at $0.6383 per $100 of assessed valuation, while the Chapel Hill-Carrboro City Schools District tax was established at $0.1479 per $100 of assessed valuation.

In terms of employee compensation, the budget includes a 2% wage increase for permanent employees, effective July 1, 2025. The merit pay program will continue, rewarding employees based on performance tiers. Additionally, the living wage for employees was recognized at $18.18 per hour, and contributions to retirement accounts were adjusted accordingly.

The budget also allocates significant funding for local school districts, with a total current expense appropriation of approximately $111 million. This includes $64.75 million for Chapel Hill-Carrboro City Schools and $46.58 million for Orange County Schools. The budget further supports school-related debt service and additional funding for school resource officers and health nurse contracts.

The capital investment plan for 2025-2026 was approved, with total funding of over $75 million allocated for various projects, including $38 million for county capital projects and $33 million for school capital projects. The board also approved changes to the county fee schedule as part of the operating budget.

Overall, the meeting concluded with a clear outline of the county's financial commitments and priorities for the upcoming fiscal year, setting the stage for continued investment in community services and infrastructure.