Pittsboro, NC – As Chatham County gears up for the fiscal year 2025-2026, County Manager Brian Thompson presented an overview of the proposed budget during the first public hearing held on Monday, May 19. The overview delved into the key components of the proposed budget, highlighting revenue sources, expenditure allocations, and the anticipated impact on residents.
Budget Overview: Key Figures
The proposed budget for FY 2025-2026 stands at approximately $135.9 million, with a recommended tax rate of 60 cents per $100 valuation. This represents a reduction from the current tax rate of 72.5 cents. However with a proposed rtax ate of 60 cents per $100 valuation, means most Chatham County home owners will face a property tax increase this year. The revenue neutral tax rate is way below the proposed rate at 52.9 cents per $100 valuation. The budget document, available online and at the clerk’s office, provides a breakdown of revenue sources and expenditure categories.
Revenue Sources
Property Tax Revenue
Property taxes remain the cornerstone of Chatham County’s revenue, projected to increase to $135.9 million. This growth is attributed to a combination of rising property values and a strategic reduction in the tax rate.
Sales Tax Trends
Sales tax revenue, however, presents a more complex picture. The county has experienced a slowdown, trailing state averages by approximately 4%. While the state has seen a 3% increase in sales tax revenue, Chatham County’s performance has raised concerns.
Other Revenue Streams
In addition to property and sales taxes, the budget includes revenue from various sources such as excise taxes, permit fees, and transfers. The anticipated revenue from these sources is projected to be approximately $30.5 million, reflecting a slight decrease from previous years. This decline is attributed to a slowdown in residential development, although commercial and industrial sectors continue to show promise.
Expenditure Allocations
Education Funding
Education remains a top priority in the proposed budget, with Chatham County Schools receiving a substantial allocation of $2.4 billion. This funding will support various initiatives, including salary adjustments for teachers, operational expenses, and the continuation of free breakfast and lunch programs for all students.
Public Safety Investments
The Chatham County Sheriff’s Office is set to receive an increase of $2.3 million, or 9.4%, over the previous year’s budget. This funding will support the rollout of body cameras, enhance mental health services, and add several new positions to improve community safety.
Infrastructure and Operational Costs
The budget also allocates funds for infrastructure improvements and operational costs across various departments. With inflation impacting many sectors, the county is preparing for increased expenses related to salaries, benefits, and contractual obligations.
Unemployment and Labor Market
Chatham County’s unemployment rate remains strong, slightly better than the state average. The local labor market benefits from the county’s proximity to the Research Triangle Park (RTP), which continues to attract businesses and job seekers alike.
Inflation and Its Impact
Inflation remains a concern as the county navigates the post-pandemic economic landscape. Rising costs for goods and services are expected to impact the budget.
Public Hearings
The budget process includes two public hearings, allowing residents to voice their opinions and concerns. Following the initial hearing in Pittsboro on Monday, a second hearing is scheduled in Siler City on Tuesday.
Adjustments and Revisions
As the budget discussions continue, the county will hold work sessions to refine the proposed budget based on feedback from the Board of Commissioners and the public. A revised budget is expected to be presented for approval on June 16, 2025.