June 13, 2018 Commissioners set tax rate. Herald Sun
May, 2018 The County is also looking to increase out tax bill but how much and how fast isn’t settled yet. The proposed $226.8 million budget continues spending at roughly the same level next year – with a few increases and changes. The big challenge is the county has exceeded its debt capacity. The school bonds that voters approved in 2016 are taking the county over the limit.
These voter-approved bonds are in addition to privately issued debt for new offices, parks, and a proposed new jail and Carrboro library.
To comply with their debt policy, the Orange County Board of Commissioners must raise the tax rate by five cents per $100 of assessed property value now or eight cents per $100 over the next four years. On a Chapel Hill home, with an average value of $400,000, that’s an increase ranging from $200-$320 per year – for a total county tax bill of $3,560 – $3,680. County taxes are in addition to property taxes for the town of Chapel Hill and the additional district tax for CHCCS.
About 2/3rds of the county tax increase will fund the school bonds which voters approved in 2016. If you recall, in 2016 voters approved $120 million for school bonds to repair school buildings in both school districts. That only covers about 1/3 of the funds that are needed. For CHCCS, the funds cover only the renovation of Chapel Hill High. That leaves over $200 million in essential renovations needed for safe and functional school buildings unplanned and unfunded in both school districts.
The other 1/3 of the county tax increase is targeted to go to county capital projects including a new jail, a library in Carrboro, more county offices and trails/parks in rural parts of the county. These projects have been given a higher priority over essential school repairs.
The other surprise in the budget is the 30% reduction in the projected growth in the county sales tax revenues. This directly impacts funding for Durham Orange Light Rail (DOLRT). As you know, sales tax growth is the primary source of funding for DOLRT. CHALT will continue to monitor this as the county moves toward a go-no go decision for DOLRT in 2019/2020.
The commissioners have held public hearings and will hold working meetings with school boards and departments over the next few weeks. You can share you views by email to OCBoCC@OrangeCountyNC.gov. The commissioners expect to approve next year’s budget on June 19.
