FAQs

This is a summary of how we develop a budget:

• The first step each year in developing the base budget is to project estimated revenue data. We collect data from Orange and Durham County, consult current economic indicators, and reach out to our departments who estimate their fees for the upcoming year. 
• Each December, we ask departments to submit their base budgets, which are roughly equal to the current year budget with some flexibility to move money between operating lines but one that requires departments to absorb cost increases. 
• In February, departments submit requests for budget additions that represent cost of doing business increases or new programs. 
• In March, departments present their budgets to the Manager. They share their goals and priorities, key budget issues for the coming year, and their top three budget additions. 
• The Manager’s Office reviews this information along with Business Management to prioritize needs, allocate resources, validate alignment with Council priorities, and ultimately develop the Manager’s Recommended Budget.

In North Carolina, local government is largely organized as municipalities and counties. Each jurisdiction has its own elected leaders and its own tax authority to pay for public services. 

Counties are responsible for providing many state-mandated services, including law enforcement, jails, court facilities, public schools, social services, tax assessment, election administration, and public health services.  Municipalities are only required by state law to enforce the building code, but many also provide services such as police and fire protection, parks and recreation, and street maintenance to name a few.  These services vary from jurisdiction to jurisdiction and reflect the priorities and values of the local community. 

In some areas, additional taxing districts may exist.  For example, the Chapel Hill-Carrboro City schools district has its own governing board and tax structure, creating a third layer of local taxation for residents within the district. 

Each year, municipalities and counties across North Carolina are required to adopt a balanced budget by June 30.  The budget establishes the property tax rate and other revenues necessary to fund local government operations and services for the coming fiscal year.

The increase is largely driven by stronger than anticipated property tax growth resulting from an overestimation in the number of appeals following last year’s property tax revaluation.

This additional revenue has allowed the Town to address priorities identified in the five-year budget outlook.  

Although the 3.4% increase is higher than the current Consumer Price Index (CPI), CPI is not always the best measure for evaluating local government costs. CPI primarily tracks changes in the cost of household goods and consumer expenses, while local governments face different cost drivers.  

Town expenditures are more heavily influenced by items such as fire apparatus, solid waste vehicles, road paving materials, salt for winter weather operations, technology, and infrastructure-related expenses, which are categories that aren’t fully reflected in standard CPI measurements.

The FY 2026-27 Recommended Budget includes three proposed new positions: a Fleet Technician, a Library Experiences Associate, and a Destination Coordinator. The Fleet division and the library haven’t added staffing in more than a decade, despite continued growth in service demands and workloads. These additional positions are intended to help address operational needs, improve service delivery, and reduce employee stress and burnout caused by sustained staffing shortages. 

The proposed Destination Coordinator position wouldn’t require additional funding.  Instead, the Town plans to redirect existing funds previously allocated to the Orange County Visitor’s Bureau to bring tourism and destination marketing efforts in-house within the Economic Development division. This position would work with local hotels, businesses, and community partners to attract visitors and events that support the local economy.

Public Works has implemented several initiatives that improve sustainability, workforce development, and service delivery. Proactive replacement of HVAC systems and roofing materials with energy-efficient alternatives supports the Town’s Climate Action Plan while reducing long-term operating costs. Adjustments to loose leaf collection services have reduced injury risks, improved staff deployment flexibility, and allowed crews to address other critical maintenance priorities more efficiently. Lastly, the Town’s CDL training program has expanded workforce capacity and reduced reliance on expensive outside training providers.

Technology Solutions’ modernization efforts have also produced significant savings and operational improvements. Migrating the Town’s phone system to Microsoft Teams Calling generated approximately $300,000 in savings while improving staff accessibility and flexibility, including $100,000 in savings by transitioning legacy phone lines to cellular technology. The consolidation of Town and Police IT networks improved security, reduced redundant equipment, and streamlined support operations. The Town’s deployment of Microsoft Copilot has further increased productivity by helping staff quickly summarize meetings, draft communications, and analyze data more efficiently.

Parks & Recreation has continued to leverage partnerships, sponsorships, and internal staffing strategies to maximize resources. Sponsorships and grant funding have helped offset program costs for youth athletics, while cross-training staff to lead programs such as pickleball and bocce has reduced contractor expenses. Aquatic Specialists now directly support programming and lifeguarding operations, reducing temporary staffing costs, and policy changes related to large transaction payments are expected to save approximately $5,000 annually in credit card processing fees. Internal Parks Maintenance staff have also completed several landscaping and beautification projects in-house, reducing external contracting costs.

The Police Department has focused on operational models that improve service delivery while managing long-term costs. The new police building was designed to improve workflow efficiency and support modern policing operations. Community sub-stations and the Crisis & CARE Team models allow for more appropriate and resource-efficient responses to community needs. The use of civilian traffic crash investigators has helped align staffing resources with service demands while keeping sworn officers available for higher-priority incidents. Additional efficiencies have been achieved through in-house driving record checks and fingerprinting services, generating approximately $17,000 in annual savings.

Building & Development Services has implemented process improvements aimed at strengthening coordination, onboarding, and review capacity. Updated guidance documents, reinstated on-site meetings, expanded staff training opportunities, and reorganized plan review processes have improved consistency and communication across departments. Inspection scheduling efficiencies for townhome developments have also allowed staff to complete multiple inspections more effectively while reducing travel time and increasing inspection capacity.