Commissioners receive third-quarter budget update; approve one-payroll implementation of pay-study

Finance Director Daryl Butts presented the county’s third-quarter budget update (covering July through March) and briefed commissioners on revenues and expenditures, revenue drivers and risks. Following the presentation, the Board of Commissioners voted to authorize implementation of a previously approved two‑thirds market pay study for one payroll beginning June 15, 2025.

Butts told the board that, in an ideal budget world, spending would be at 75% for the first nine months; overall county expenditures were “just under 60% expended” year to date, reflecting transfers that occur late in the fiscal year. He highlighted that transfers out — budgeted near year-end — remain at 0 percent and will move expenditures nearer to full utilization when processed.

Key revenue and expenditure notes from the presentation: - Ad valorem (property) taxes: collections were close to budget (about 99% as of March) and, since March, staff said the county had reached its budgeted property tax target for the year. - Sales tax: local collections through the six months of available sales-tax data trailed the same period last year by about 4%; statewide collections trended 3–4% higher year-over-year, creating a local/state gap of concern. Staff said January and February tended to be lower months and added that March numbers would provide additional clarity. - Development-related fees: building inspections revenue declined year-over-year largely because one-time Wolfspeed inspection receipts boosted the prior-year total; registered-deeds excise tax rose because of several large real-estate transactions. - Capital expenditures: vehicle procurement and other capital activity increased compared with earlier pandemic-affected years; supply chain issues that stalled vehicle deliveries previously have eased.

Budget trends and line-item context were discussed: admin functional spending looked low because transfers that fund other areas sit in that category until executed; education, culture and recreation had the highest year-to-date expenses largely because monthly allocations to the Chatham County School System are recorded there.

On staff compensation, Butts reminded commissioners that a two-thirds market pay study for employees not included in fiscal 2024 implementation had been presented at the budget retreat and was included in the FY26 budget. He asked the board to authorize implementation for one payroll cycle — essentially one full payroll (two weeks) beginning June 15 — to simplify administration across current and upcoming salary changes.

A motion to authorize the one-payroll implementation of the two‑thirds pay study starting with the June 15, 2025 payroll was moved and seconded; the motion carried with all voting in favor. Staff said the cost for implementing the change for one payroll was minimal and already included in the FY26 budget projections.

Commissioners asked clarifying questions about sales-tax timing, the sustainability of large one-time real-estate transactions that boost deeds excise receipts, and how transfers out would change late in the fiscal year.