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Published: Jun 23, 2012 07:00 PM
Modified: Jun 23, 2012 05:38 PM

Orange County Commissioners approve ’12-13 fiscal budget
 
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CHAPEL HILL - Orange County residents will have no tax increase next year and their public schools will get more of their tax dollars.

The Orange County Board of Commissioners unanimously approved a $180 million budget during their meeting Tuesday. The budget includes no tax increases and more funding for both county school districts

This budget shows the county’s commitment to supporting its values like education and nonprofits, while remaining fiscally responsible, commissioners said. The property tax rate will remain at 85.8 cents per $100 of assessed value, or $2,574 in county taxes on a $300,000 house.

“This the fourth straight year we haven’t had a tax increase, we were able to maintain our funding to outside agencies, we were able to give a pay increase to our staff,” said Commissioner Barry Jacobs. "We got to 47.5 percent of our budget for school spending, our target it 48 percent ... we remain close."

Commissioners also praised county staff for their work on the budget

“We should be very proud, all of us, of what we were able to do in Orange County,” said Commissioners Chairwoman Bernadette Pelissier.

During a budget work session last week, commissioners added $1.5 million to County Manager Frank Clifton’s $178 million spending plan. The increase includes $244,000 for some nonprofit initiatives plus an additional $1.28 million, or $12 per pupil for both the Orange County and Chapel Hill-Carrboro City Schools.

Commissioners increased funding by transferring money from its General Fund balance, a reserve account used to manage cash flow.

The county had 16 percent fund balance before appropriating the additional funds for education, said Clarence Grier, director of finance and administrative services for the county.

“The Local Government Commission requires that counties maintain fund balance at 8 percent of general fund expenditures, but a good level is approximately 16 to 17 percent fund balance. Orange County’s fund balance policy is to maintain a fund balance 17 percent,” he said in an e-mail. “It is projected the year end fund balance will increase in the range of 17.5 to 18 percent.”

If school spending levels continue at the current level, a 3 cents tax increase would be required to fund both districts for the 2013-14 fiscal year, County Manager Frank Clifton said last week.

Sales tax revenue in the county has increased by 3 percent, and there’s also been a slight growth in property tax revenues due to new construction, Clifton has said. Property taxes make up 77 percent of the general fund budget.

The budget also includes:

• An increase in solid waste fees for property owners, $10 increase for rural residents, $5 increase for urban residents

An increase in EMS positions for paramedics and telecommunicators staggered throughout the year

• A 3 percent pay increase for staff, half as a cost of living adjustment, half performance-based

Ferral: 919-932-8746
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