Orange County's Budget and Tax Rates - June 11, 2025 Update

One of the biggest responsibilities of County Commissioners is to adopt a balanced budget by the close of each fiscal year in June. Below is a recap of where Orange County's budget and tax rates stand.

The Status

On June 5, after a period of public comment and lots of Commissioner listening, the Board approved an "Intent to Adopt" the Orange County Budget resolution for the county's Fiscal Year (FY) 2025-2026. A formal vote to adopt will happen on Tuesday, June 17.

The County's Operating Budget, together with the recent county-wide revaluation, determines the Orange County tax rate.

When tax bills are sent, they list several different tax rates...

Orange County sets its own tax rate, the Fire District tax rates and the Chapel Hill-Carrboro City Schools Special District tax rate (see below).

 

Chapel Hill, Carrboro, Hillsborough and Mebane each set their own tax rates, independently of the County. Orange County collects these funds on their behalf.

The Budget and Tax Bottom Line

The total FY25-26 Manager-recommended Operating budget was $311.8M, which adjusted to $306.04M after amendments.

It includes a modest 2% wage increase for permanent employees, plus merit pay and adjustments to cover increases to insurance costs.

After factoring in all Budget Amendments, the Orange County ad valorem property tax rate will be set at 63.83 cents per $100 of assessed valuation.

This is 1.19 cents more than the revenue-neutral tax rate.

Round-up of Commissioners' Amendments

A number of Commissioner-initiated amendments were approved to both the Operating Budget as well as the Capital Improvement Plan.

 

While what follows is not an exhaustive listing, you can see the full list here.

Specifically:

Some amendments were intended to blunt the tax impact of the property revaluation for those who are most vulnerable.

This includes an amendment to significantly increase dollars allocated to the Longtime Homeowner's Assistance (LHA) program, which passed unanimously.

 

This program can help those who earn at or below 80% of the Area Median Income for their household.

Also, an amendment was passed to reduce the increase in Orange County taxes and hold as close to the revenue neutral tax rate as possible.

"Reducing the Increase?" How?

This year's property revaluation has driven a significant increase in property values across the county, region and state, and this will also drive a larger tax bill for many homeowners.

The Commissioners sought to alleviate some of that impact by amending the plan to use the General Fund "Pay as you Go" dollars in the first and second year of the 10-year schools Capital Improvement Plan.

Instead, schools planning and design will begin using the recently approved school bond and "Pay as you Go" spending will phase in more slowly.

What does that mean for a homeowner? An example...

If a homeowner's property was valued last year at $257,964, their 2024 Orange County tax bill was $2,226. This is based on last year's County Tax Rate of 86.29 cents per $100 of assessed valuation.

If the property is now valued at $400,000, their 2025 county bill would be $2,624 prior to this amendment.

The amendment results in an Orange County tax rate of 63.38 cents per $100 of assessed valuation, and a county tax bill of $2,533 for that $400,000 property.

While this still represents an overall increase, the increase is $71 lower than it would have been without the amendment.

Separately:

An amendment was introduced to increase Chapel Hill Carrboro City Schools' Special District tax. It will provide an additional $757,242 of funding toward the district's continuation request.

While all Commissioners strongly support our schools, this amendment was revised to reduce the tax impact during the first year of a 10-year Capital Improvement. It now will add roughly $15/yr in taxes for the owner of a $400,000 property. The District tax rate will be 14.79 cents per $100 of assessed valuation.

And:

A position for the Orange County Board of Elections was funded. New voting requirements from the NC General Assembly are driving additional work for the BOE.

I was proud to sponsor an amendment to reinstate a behavioral Crisis Counselor position in Orange County's 911 Call Center as part of a pilot diversion program with the Crisis Assistance, Response and Engagement (CARE) team. This amendment received unanimous support.

Lastly:

Orange County staff continues to engage with the folks at Justice United for ongoing dialog, to assess potential improvements to the revaluation process and to implement these where warranted.

If you believe your property is not fairly valued, you are encouraged to appeal. More information about the appeal process can be found here:

https://www.orangecountync.gov/806/Appealing-Your-Value

As always, I welcome your feedback,

Orange County Commissioner

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On the lighter side, here is a May and June Photo Gallery:

Celebrating Pride Month at Peace and Justice Plaza on June 7

Saying farewell on June 4 to CHCCS Superintendent, Dr. Nyah Hamlett. Congratulations to new Superintendent, Dr. Rodney Trice!

On Memorial Day, local elected officials joined the Orange County Veterans Memorial Committee, veterans and Keynote Speaker, Brigadier General Arnold Gordon-Bray (United States Army).

Orange County's Office of Civil Rights and Civic Life recognized Vicki Feaster Fornville and Delores Bailey, along with a number of talented students, at the Pauli Murray Awards on May 18

Wearing "Red for Ed" on May 1 at East Chapel Hill High School

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