County manager proposes $589 million FY26 budget, recommends 53.24¢ tax rate to replace one‑time revenue

Chantelle Robinson, Forsyth County manager, presented her recommended fiscal year 2026 budget to the Board of Commissioners at the May 8 meeting. The recommended budget totals $589,000,000, a 0.9% increase over FY25, and includes a proposed tax rate of 53.24¢ per $100 of assessed value — 4.2¢ above the revenue‑neutral rate of 49.04¢ calculated after a county reappraisal that increased real estate values by about 51%.

Robinson said the tax rate recommendation is intended to reduce reliance on one‑time revenue sources that had balanced prior budgets. She said $27,000,000 of new revenue would be generated by the 4.2¢ increase and described the budget focus as preserving services while strengthening financial stability. The recommended budget includes $193,300,000 in direct appropriations to Winston‑Salem/Forsyth County Schools and Forsyth Tech Community College, $212,800,000 for salary‑related expenses, $95,500,000 for non‑salary operating expenses, and $87,900,000 for debt service (with about 71% of debt service tied to education‑related debt).

Robinson proposed appropriating $9.7 million of committed fund balance for debt leveling and said she is not recommending use of assigned fund balance to cover recurring expenses. She noted that the adopted FY25 budget relied on $31.2 million of one‑time revenues and previous budgets used ARPA funds as temporary support; the recommended approach aims to reduce long‑term reliance on such sources. Robinson also recommended maintaining a performance pool for salary increases (up to 6% overall, with an average performance adjustment of about 4.37%) and addressed employer retirement and health insurance cost increases estimated to add $2.2 million and $4.7 million respectively.

Other elements in the recommended budget include increased, recurring support for schools (an estimated recurring increase of $6.7 million and conversion of $3.7 million in one‑time funding to recurring), a multiyear capital planning approach with only critical FY26 capital projects funded without new debt, and adjustments to fire service district tax rates to their revenue neutral levels plus a 1.79¢ countywide fire overlay to support staffing and service equity. Robinson said additional capital detail and project lists will be provided in subsequent briefings and that the next detailed budget presentation would occur on May 15, 2025.

Commissioners asked for department cut totals, timing for capital needs assessments, and other clarifying materials; Robinson said staff would provide additional information including departmental reductions (an initial rightsizing estimate of about $8 million excluding salaries) and a prioritized capital needs list. Several commissioners commended staff and consultants on the process and the early presentation of fiscal challenges.

The recommended budget is now before the board for deliberation; no appropriation or tax rate was adopted at the May 8 meeting. The manager requested commission direction and scheduled workshops and hearings for further review.