Your property taxes are going up despite Chatham County’s proposed tax rate reduction

Pittsboro, NC – On May 5, 2025, Chatham County Manager Bryan Thompson presented the recommended fiscal year 2025-26 budget of $288.3 million at the Chatham County Board of Commissioners Regular Session in Pittsboro. The proposed budget prioritizes support for education and public safety while also focusing on growth and critical services.

The budget proposal calls for a tax rate of 60 cents per $100 of valuation, which is a decrease from the current rate of 72.5 cents per $100 of valuation. This is the first budget that reflects the property valuation change of the 2025 revaluation.  The “revenue neutral” tax rate is the tax rate that based on those new valuations would generate the same amount of revenue (excluding any new growth/property). The revenue neutral tax rate is 52.96 cents per $100 valuation.

Community members can view the proposed FY26 budget on the County website. The budget is also available for inspection at the County Manager’s Office.

The public has various opportunities to share their feedback with the Board of Commissioners.

Thompson said the recommended budget delivers critically needed services and places the county on stable financial footing for the future.

“It is a very unique time for Chatham County as we have seen marked changes in consumer spending and a slowdown in new residential development, yet we are still in the midst of significant growth and change within the county,” said Thompson. “Throughout this budget, you will see we are focused on ensuring the development that is occurring is well monitored and aligns with the long-term vision that Plan Chatham has laid out for Chatham County. As we move forward into the next fiscal year, I am confident that this budget will enable us to address current challenges, seize opportunities for growth and innovation, and continue building a stronger, more resilient Chatham County.” 

Chatham County Schools
The county continues to prioritize support for education. The proposed budget funds an additional $2.9 million for Chatham County Schools. This includes $2.4 million to fund estimated state salary adjustments expected in the next state budget, fund anticipated increases in employee benefits and retirements costs, support the continuation of the district’s free breakfast and lunch program for all students, provide a small increase in operating expenses, and increase the required transfer to charter schools.

Chatham County Sheriff’s Office
As growth continues within Chatham County, ensuring the safety of all community members is also a priority. The portion of the proposed budget allocated to the Chatham County Sheriff’s Office is an approximate increase of $2.3 million over the FY2025 Revised Budget. This funding would include an additional $1.1 million in continuation increases – including the first full-year of the new body camera rollout, contractual increases, and increased operating and capital outlay costs. Also included is an additional $1.2 million in expansion items, including seven additional staff.

New and Increased County Fees
There are several new fees and increases to current fees recommended in this budget which include:

  • Planning – Significant changes to fee structure to increase equity and consistency of fee charges and to account for increasing cost of service provision.
  • Aging Services – Centers for Active Living day trip fee that will equal cost of venue/event admission, allowing Aging Services to book at group rates and create savings for participants.
  • Solid Waste & Recycling – $20 Increase to Solid Waste Fee (from $137 to $157 annually), which is necessary for the enterprise fund to continue to recoup costs generated to run the service.

Fire District Tax Rates
Since FY 26 is a revaluation year, revenue neutral property tax rates for each fire district are also presented. Of the 11 fire departments that provide services within Chatham County, five departments have requested a tax rate reduction from the previous year’s rate – only one of those rates is reduced to the revenue neutral rate; however, they are reductions from the FY 25 approved rate. The Parkwood district is served via contract by the City of Durham and is recommended to be reduced to the revenue neutral rate.

County Staff Pay

The recommended budget also includes a 4% increase in pay for County staff. “While many expenses are necessary to continue movement toward our goals, competitive salaries are essential to attracting and retaining our greatest asset, talented professional staff,” added Thompson.

This month, the Board of Commissioners will have a series of work sessions on the budget after the public hearings. State law requires the Board to approve the budget no later than June 30.