Dare County presents fiscal 2026 budget plan; approves opioid settlement spending and early college construction contract

Dare County officials presented the manager’s recommended fiscal year 2026 budget and a planned FY27 projection during the Board of Commissioners meeting on May 5, and the board approved several related capital and program actions.

County staff proposed a FY26 operating budget of $242,865,850 and a planned FY27 budget of $247,340,675. The recommendation preserves existing service levels, implements a 3% cost‑of‑living increase for full‑time employees and a $0.50 hourly increase for part‑time staff, continues the county’s 3% 401(k) contribution, and does not include a general‑fund property‑tax increase; the recommended revenue neutral property‑tax rate is 26.32¢. The manager and finance staff told commissioners they balanced FY26 using a portion of the county’s available fund balance and a $1,000,000 transfer from the community development/housing fund, while warning that repeated use of fund balance to cover recurring costs would be unsustainable in later years.

The budget presentation noted major cost drivers including a requested increase for Dare County Schools (local current expense and other items), health‑care and retirement costs, utility and contract increases, and information‑security spending. The county has budgeted continuing school funding under the county’s preexisting formula, and staff reported that existing school capital capacity and restricted funding sources make the early college project financially feasible under the proposed plan.

The board approved the manager’s recommended budget package and voted to schedule a public hearing on the FY26 budget for June (the board later adjusted the public hearing date to June 9). Commissioners asked staff to return with the capital improvement plan and the capital investment fund details for final adoption at the June hearing.

On capital projects, commissioners approved a pre‑construction contract with Barnhill for a package of county facility projects (public works and sheriff/EMS facilities) and approved a separate contract awarding the guaranteed maximum price (GMP) for construction of the Dare County Early College. The board voted to authorize the county manager to sign the construction contract. County staff said the GMP for construction came in at $21,100,676 and that the total project budget (including related costs) remains within the capital plan submitted to the board.

Separately, the Saving Lives opioid‑settlement task force presented its recommended FY26 allocation plan for local opioid settlement funds. The board approved the task force’s recommended distribution (FY26 total $383,700) to support a mix of ongoing peer‑support and recovery‑court coordinator positions, treatment and aftercare grants to local providers, naloxone and test‑strip purchases, transportation and social‑determinants supports, and a continued allocation for services within the detention center. The measure passed unanimously.

County officials said they will present final budget ordinances, the capital improvement plan and any required bond resolutions at the June public hearing, along with a resolution to issue limited‑obligation bonds needed for school and capital financing. The board approved placing the required public hearing on June 9 and instructed staff and bond counsel to finalize the documents needed for LGC review and final adoption.

Votes taken at the May 5 meeting included unanimous approvals of the opioid‑settlement allocation plan, the Barnhill pre‑construction contracts, the Early College GMP contract and related capital project ordinances, and the motion to call a public hearing on the budget and bond actions.