Orange County manager proposes 2.95¢ tax-rate increase, directs 1.94¢ to school planning

County Manager Myron presented the Orange County manager's recommended 2025–26 budget during a public hearing May 13 at Southern Human Services, proposing a tax-rate increase of 2.95¢ above the published revenue-neutral rate to a total tax rate of 65.59¢ per $100 of assessed value.

Myron said the revenue-neutral rate after the county's recent revaluation is 62.64¢ per $100. "The manager's recommended budget includes a tax rate increase of 2.95¢ over that revenue neutral rate to get us to a total tax rate next year of 65.59¢ per hundred dollars of value," Myron said. Of the proposed increase, 1.94¢ is allocated to begin implementing school bond planning and design; the remaining 1.01¢ is directed to school continuation requests and county operations.

The manager's presentation outlined estimated homeowner impacts: a home assessed at $400,000 would see an annual increase of $118, while a $500,000 home would increase about $147.50 under the proposal. The presentation also listed a series of program and funding adjustments intended to limit the tax-rate increase, including holding most department budgets at or below base levels, shifting some general-fund expenses to other funds, reducing travel and training budgets by 10%, and eliminating select vacancies.

Key budget line items and clarifications presented by Myron:

- Revenue-neutral rate: 62.64¢ per $100 of assessed value; manager's recommended rate: 65.59¢ per $100. - Tax-rate increase allocation: 1.94¢ for school planning/design (recurring capital above revenue neutral generating $6,400,000 for school planning and design); 1.01¢ for school continuation requests and county operations. - School funding: current-expense budget up 3% (about $3,200,000); countywide per-pupil funding up $211 to $5,877 under the recommended budget; the recommendation still falls $1.8 million short of the Chapel Hill-Carrboro continuation request and $205,000 short of Orange County Schools' continuation request. - Social safety-net and human services: $70,000 increase to the Emergency Housing Assistance Program; $100,000 to Department of Social Services in-home aid (funding 60 hours per week of in-home aid services); $40,000 for aging respite; $62,000 from the Master Aging Plan balance recommended for an urgent home-repair program for seniors; $40,000 to maintain some vaccine supplies previously funded by pandemic grants; social justice reserve increased by $50,000 to $250,000. - Employee compensation and benefits: 2% wage adjustment for employees on payroll as of June 30, continuation of the merit program, retirement contribution increases of $145,000, employee and retiree health insurance cost increases of about $1,300,000 and a dental increase of about $16,000. - Debt service: Myron attributed a slight increase in debt service to borrowing for school-related deferred-maintenance projects, including a multi-year deferred-maintenance program that aggregated to about $60,000,000.

Myron described revenue projections as conservative given federal funding uncertainty. He reviewed the budget calendar and reminded the board and public that the next scheduled budget work session is May 15, with an additional work session the following Tuesday and a planned public hearing May 29 at Whitted in Hillsborough. He said commissioners could propose budget amendments and those would be posted on the county website as they are filed.

The board moved to open and later close the public hearing by voice vote during the meeting; the public hearing process then proceeded to public comment.