Carrboro council adopts FY27 budget with human‑services restoration, rejects tax increase

Carrboro’s Town Council adopted a balanced FY27 budget on June 2, approving the manager’s $44.6 million recommendation without raising the property tax rate and restoring $197,130 for human services from the town’s fund balance.

Town Manager Tony Keys presented the manager’s recommended budget, saying, “The manager’s recommended budget does not include a property tax increase. The rate will remain at 56.53 cents per $100 of assessed value.” The plan includes 43 proposed CIP projects and a fund-balance appropriation to cover one-time tropical storm recovery costs.

Public comment at the council’s second public hearing focused heavily on two issues: protecting riparian and floodplain areas near the Bowling Creek greenway and preserving human-services funding. Several residents urged the council to remove phases three and four of the Bowling Creek Greenway from the FY27 CIP, arguing the project is too costly and risky in a changing climate and uncertain federal funding environment. “This greenway project is a want, not a need,” said Piper Honikman, who cited estimated construction costs and the town’s contingent liability if federal grants fall through.

Other residents pressed the council to restore human-services funding cuts. Lori Carter, speaking for service providers, urged the council to help residents who “cannot be here” to speak for themselves and to find creative ways to fund services.

Council Member Palmer proposed an amendment to restore human-services grants to the prior base level by allocating an additional $197,130 to the recommended budget, to be offset by a fund-balance appropriation. After debate about long-term revenue strategy and the conservatism of Carrboro’s fund-balance policy, the council voted to adopt the budget ordinance with the amendment. The mayor announced, “Motion carries 7‑0.”

Council members emphasized that using fund balance this year was a deliberate trade-off to avoid a tax increase now while acknowledging that recurring revenue solutions, including land‑use changes to broaden the tax base, will be needed in future years. Council discussion repeatedly returned to the need for more diversified revenue sources and to the town’s fund‑balance policy as providing short‑term flexibility.

The adopted budget keeps the tax rate unchanged from FY26 and funds the manager’s priorities including livable‑wage implementation, a 2.5% cost‑of‑living adjustment for staff, continued free transit service, and capital commitments. The Bowling Creek phases remain an approved project in the CIP; council members noted the next near‑term step is a crossing study and that construction work would be phased and require grants, easements, and regulatory approvals.

The council may revisit outstanding CIP priorities and revenue options during the next budget cycle. The ordinance and recorded action document the council’s adoption of FY27 and the attached human‑services appropriation.