Rockingham County leaders present draft FY26–27 budget and early tax-rate placeholder
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Summary
County staff outlined a proposed FY26–27 general fund budget projected near $131 million, flagged a 0.67‑penny placeholder that could raise about $2 million, and described assumptions including a 3% COLA and merit adjustments. Commissioners gave early direction but no final tax decision was made.
Rockingham County staff presented the proposed FY26–27 general fund plan and a tentative budget calendar during a recessed planning retreat, saying the general fund is projected at about $131,000,000 and that personnel costs are the primary driver of increased spending.
The county’s finance presenter said staff are using a 3% cost‑of‑living adjustment and an average merit increase of about 3% to model salaries and benefits; together those adjustments and fringe costs yield an estimated 4.5% increase in personnel costs across departments. The presentation also includes conservative revenue estimates and a fund‑balance appropriation of $2,500,000 to preserve reserves for contingencies.
“Every year, you’d see that we always propose an increase,” Lance said during discussion, urging commissioners not to panic and noting the figure is an early placeholder as the budget development process proceeds. The presentation included an illustrative tax‑rate placeholder of 0.67 penny, which staff estimated could generate roughly $2,000,000 to help balance the budget; staff emphasized the number is part of a drafting exercise, not a final decision.
Why it matters: the draft preserves priorities the board has identified—public safety, human services and education—while signaling pressure from rising personnel and health‑insurance costs. The county manager and finance staff stressed the presentation’s conservatism and the expectation that figures will be refined during the formal budget process.
Details: staff said operating expenditures were projected to rise about 2.2% in line with recent CPI trends and that the North Carolina Retirement System’s employer contribution increase will add to fringe costs. The FY26–27 materials aim to minimize new long‑term debt, emphasize pay‑as‑you‑go capital funding and keep a healthy reserve consistent with the county’s fund‑balance policy.
Next steps: commissioners asked staff for more detail in forthcoming budget documents and reiterated a shared preference to avoid raising taxes where feasible. No formal tax‑rate vote was taken; staff will return with refined estimates as departments finalize requests and revenue assumptions are clarified.