Hillsborough board adopts FY2027 budget after removing proposed two‑cent tax hike

The Hillsborough Town Board of Commissioners voted June 8 to adopt the FY2027 budget as amended, removing a proposed two‑cent property‑tax increase and replacing the projected revenue with a transfer from the town’s general fund balance.

Board members discussed the budget after staff said the recommended plan had been updated following two prior budget workshops. One commissioner moved to strike the two‑cent increase and freeze the town’s property‑tax rate at 51.3 cents. The motion was seconded and, after deliberation, the board approved the amended budget and the accompanying capital project ordinances.

The amendment’s supporters said holding the line this year reduces immediate pressure on residents and provides time to reassess in light of county tax decisions. Commissioners who favored the amendment pointed to projections showing tighter fiscal years ahead: several members warned that, if revenue does not improve, the town could face larger increases in FY28 and FY29. One commissioner noted that, in his estimate, a two‑cent increase would raise an individual tax bill by “about 0.43%,” and emphasized that multi‑year planning helps avoid one‑year band‑aid fixes.

Opponents of delaying the increase had argued earlier in workshops that additional revenue could preserve services and capital plans; during the June 8 debate, however, members said the town’s three‑year budgeting approach offers a better view of long‑term tradeoffs and that the county’s higher tax proposal complicated local options.

Town staff confirmed the amended budget includes transfers from the general fund balance to offset the removed tax revenue and that capital project ordinances were adopted alongside the operating budget. The board did not provide a roll‑call tally in the public record at the meeting; the chair called the question and declared the motion adopted.

The board also noted routine end‑of‑year budget amendments will be addressed at the June workshop, and that a public hearing on a data‑center extension is already noticed for that meeting. The town manager and finance staff will implement the transfer from the fund balance and will present any necessary year‑end adjustments at upcoming sessions.

What happens next: the amended FY2027 budget is in effect as adopted; staff will present implementation details and any required adjustments at future meetings.