by Susan Dickson
Staff Writer
The Orange County Board of Commissioners made a preliminary decision on Tuesday to reduce the proposed ad valorem tax rate increase by 4 cents, to 99.8 cents per $100 of property valuation.
County Manager Laura Blackmon had initially recommended an 8.8-cent increase on the tax rate. The increase would have raised the ad valorem tax rate to $1.038 per $100 of property valuation, representing a 9- percent increase over the current 95-cent rate. The new proposal would increase the tax rate about 5 percent, with just over $5 million in cuts from the $188.3 million initially proposed budget.
Under the new proposed budget, for a $200,000 home the ad valorem tax would increase $96 to $1,996. According to Blackmon, one cent on the ad valorem tax rate would yield about $1.27 million in revenue, a minimal increase over last year’s $1.25 million.
Commissioners had said they wanted to reduce the tax rate increase to keep the rate under a dollar. Some county residents asked commissioners to reduce the proposed increase, saying the increases were too much for their already strained budgets.
Nearly half of the general fund budget would fund the Chapel Hill-Carrboro and Orange County school districts. Blackmon’s initial budget recommendations funded 98.5 percent of the two school districts’ budget requests, but the new proposals include about a million dollars in school funding reductions.
About $660,000 of the decrease comes from a reduction in teacher pay increases due to new proposals by the state Legislature. The initial budget had included a 5-percent increase in teacher pay. However, while Gov. Mike Easley has recommended a 7-percent increase, legislators have recommended a 3-percent increase. The new proposed county budget includes the smaller 3-percent increase.
Commissioners found additional savings by denying departments’ requests for new positions, implementing a three-month hiring freeze for vacant positions and delaying the opening of the West Ten Soccer Complex and Northern Park.
This year’s budget is particularly tight because the county is scheduled to open 11 facilities during the next year. Also, Chapel Hill-Carrboro City Schools will open Morris Grove Elementary School and add a senior class to Carrboro High in August.
The board will make a final decision regarding the budget at a meeting on June 24.
What else is new, they’ve raised taxes each of the last 12 years. Are we really surprised that this year is any different.