Dare County manager unveils $242.9 million recommended budget for FY26; no property tax increase proposed

Dare County’s proposed fiscal 2026 operating and capital plan totals $242,865,850, County Manager and finance staff told the Board of Commissioners on May 5. The recommendation includes a general fund budget of approximately $143.0 million, continued support for school operating and capital needs, and no increase in the county’s general property tax rate.

The manager recommended a revenue-neutral tax rate of 26.32 cents per $100 of assessed value for FY26 (the county’s previously adopted rate was higher because of a recent revaluation). The recommended budget finances a notable increase for Dare County Schools—local current expense and related school support rise under the board’s funding formula—and includes a 3% cost-of-living increase for eligible full-time county employees and a 50-cent hourly increase for part-time staff. The plan also anticipates a series of contract and rate increases (pension/retirement, utilities, insurance, Motorola communications, and others) and modest position changes: two full-time positions added, four part-time added and four full-time positions eliminated or reclassified.

Because expenditures outpaced projected recurring revenues, staff balanced the FY26 plan partly by using appropriated fund balance and a transfer from the Community Development/Housing fund; the manager said that approach avoids a property-tax increase this year but will require careful attention to recurring-revenue capacity in later years. Staff noted the county’s consolidated fund balance remained strong at the end of FY24 and that the FY25 year-end projection includes a positive balance that allowed the board to use a portion of one-time resources this year. The county also preserved the county health insurance plan with no projected increase in FY26.

Capital planning: the recommended budget treats capital-investment funding separately and will bring a capital improvement plan (CIP) and a capital-investment fund schedule to the board for final adoption at the June meeting. The manager noted the CIP work is underway and that the capital-investment fund’s general-fund contribution for FY26 is proposed at $9,825,000. The recommended sanitation and water rates follow previously adopted models: the sanitation rate increases are part of a multi-year plan; the water fund model includes a roughly 4.5% rate increase to replenish the extension/replacement fund after the emergency Roanoke Island water main replacement.

Board action: commissioners voted to set the public hearing on the recommended FY26 budget for the June meeting (revised to June 9), the step required before a final adoption typically at the June meeting once public input and any final adjustments are made. Commissioners discussed long-term debt capacity for schools and the impact of multi-year decisions on future budget flexibility; staff noted that while one-time fund balance can cover near-term gaps, recurring expenses will require revenue decisions in later years if expenditure pressures persist.

The recommended budget document and supporting materials will be published for public review ahead of the June public hearing and the manager said staff will present the CIP and any outstanding capital items at that meeting.