Orange County’s proposed 26-27 budget calls for a property tax hike of 3.75 cents and a new rate of 67.58 cents per $100 assessed valuation. The rate was .8629 prior to the 2025 property revaluation.
The budget covers higher costs and upcoming school and county construction debt. It’s 6.2 percent higher than last year and uses $7M in carryover funds to balance it. County workers will get a 2 percent pay raise. The Chapel Hill/Carrboro school district tax rate remains at 14.97 cents. County budget hearing is May 28 at 7 at Southern Human Services Center, Chapel Hill.
The recommended budget adds 3 new positions, eliminates 13.4 vacant full-time jobs and includes $250,000 for a tax valuation assessment study.
The county wants to whack support for the Chapel Hill Public Library, from $621,323 to $310,662 this fiscal year and $310,661 the following year and then eliminate it entirely. They are spending $943,221 on the Southern Branch Library in the Drakeford building, Carrboro, and apparently don’t want to support both.
Friends of the Chapel Hill Library is mounting a campaign to oppose the change. The Chapel Hill council will consider the issue in a May 13 budget session at the library.
The Chapel Hill Library has 360,000 books and plenty of tech facilities and community programming, Carrboro 40,000 and limited programs in the new building. The Chapel Hill Library probably is the town’s most popular city service.
After two straight years of tax increases, Chapel Hill’s proposed budget holds the line, keeping the rate at 50 cents. A penny on the rate equals $1.320M. Chapel Hill employees and elected officials will get a 4 percent pay raise.
Budgets for both agencies reflect higher operating costs, flat population growth, modest sales tax increases, uncertainties regarding state and federal funds. Chapel Hill budget public hearing is May 20 at 6 at Town Hall.
Biggest revenue sources for the town: property taxes 53.3 percent, sales tax 22.7 percent, state shared revenue 9.4 percent. Biggest expense categories: transit 22 percent, general government operations 13 percent, police 12 percent, public works 11 percent, parks and rec 6 percent, library 3 percent.
Earlier, Chapel Hill shelved plans to reduce the town council from eight to six members and increase the mayor’s term from two to four years. Both proposals drew strong opposition, and were described as anti-democratic.
Carrboro has not presented its recommended budget. It’ll be announced May 19, the same day as the budget hearing, at 6 p.m. at Town Hall. The Carrboro rate is now 56.53 cents, up 9.72 cents from the previous year.
Chatham County plans to maintain a 60 cent tax rate.
Joel Bulkley