Pittsboro staff presents proposed FY 2025-26 budget; board opens public hearing and hears concerns about revenue neutrality and growth

PITTSBORO, N.C. — Finance staff presented the manager's recommended fiscal year 2025-26 budget at the May 12 Board of Commissioners meeting. The board opened a public hearing on the proposal and, after no one signed up to speak during the hearing, closed the hearing and discussed revenue and growth implications.

Key points from the finance presentation (as stated in the meeting): the proposed general fund budget totals $14,096,379 and anticipates using $1,194,379 of fund balance. Staff said they expect to seek loan proceeds to cover planned capital expenditures and that the budget includes wage and benefit adjustments: a 3.2% cost-of-living adjustment, a 2% market adjustment, an estimated 7.7% rise in major medical costs (negotiated down from an earlier proposed 15% increase), and an increase in retirement contributions as set by the Local Governmental Employees' Retirement System.

The proposed budget includes adding two police officers, a public works maintenance position and an IT manager (all scheduled to start in January 2026) and expanding the downtown events/admin coordinator from part time to full time. Staff also noted the year was a tax reevaluation year and presented a revenue-neutral tax-rate calculation; staff reported the revenue-neutral rate as substantially lower than the proposed rate and said the difference equates to roughly a 9.5-cent change in the tax rate compared with the rate in the proposed budget.

During discussion commissioners raised residents' concerns about valuation increases from the county reappraisal, the burden of growth-driven service needs, and the fairness of staying at the proposed rate versus moving to a revenue-neutral rate. Staff noted the town has already reduced the budget from department requests (citing roughly $3 million in cuts from initial requests) and that drawing more deeply on fund balance or cutting further would require eliminating positions or projects and materially reduce the town's capacity to respond to growth.

Commissioners also asked about fund-balance levels and the possible audit flag that appears when a municipality appropriates fund balance; staff said the town is projecting to be in strong fiscal shape and expected to remain near or above current fund-balance targets by fiscal-year end. The presentation also included a discussion about fleet purchases and whether to buy hybrid F-150 trucks, gas models with upfits or pursue battery-electric alternatives; staff noted upfit costs increase vehicle prices and commissioners asked staff to compare total prices (truck plus upfits) and practical charging/resiliency policies used by peer municipalities.

Ending: The public hearing was opened and closed on May 12; the board heard questions and directed staff to return with budget adoption steps at a later meeting.