Budgeting for hard times: Carrboro anticipates what lies ahead

GOVERNMENT

By Fraser Sherman
Correspondent

CARRBORO–Carrboro may be facing tough times, Town Councilor Catherine Fray said, “but that calls for us to be providing more support to our residents, not less.”

The council and city staff held a workshop on April 8 on budget plans for fiscal year 2026, which starts July 1 2025. Fray was one of several councilors who said the city needed to keep the federal government’s current decisions and policy changes in mind when setting the budget.

For instance, Council member Randee Haven-O’Donnell said now is the time for austerity budgeting. Not in the sense that the town shouldn’t spend anything, but the Carrboro community is potentially experiencing austerity and needs to “feel confident we are being wise stewards of their money.” For example, the town was able to support businesses during the pandemic because its substantial cash reserves enabled it to provide assistance during the crisis.

The staff PowerPoint presentation stated that the town had set its original 2025 budget at $32.6 million. Actual spending had increased by $1.2 million, primarily due to a $850,000 growth in payroll and benefits. Staffing remains the largest budget item, at $19.7 million, compared to $12.3 million for operations and $1.7 million for debt service.

Next year’s budget

The draft budget plan for fiscal year 2026 includes increased spending on various budget items compared to the previous year, 2025.:

• $200,000 for affordable housing.
• $500,000 for sustainability initiatives.
• $3 million for personnel.
• $400,000 on the “reimagine Weaver Street” project.
• $1.4 million on designing a Bolin Creek multi-use pathway.
• $400,000 for Chapel Hill transit, which provides services in Carrboro.
• Using $15 million in debt financing to renovate the town hall.
• $3 million for staffing. That includes $150,000 for retiree insurance and workers’ compensation, and $640,000 for a staffing study.

Finance Director Chaz Offenburg told the council that, due to Orange County reappraising property values, property tax in Carrboro would bring in $378 million at the current tax rate of 0.6044.  A reduced rate of 0.4531 would be “revenue-neutral,” bringing in the same amount as 2025.

Getting the details

Carrboro has been making plans to renovate Town Hall and the Century Center since 2021. A recent request for contractor qualifications (RFQ) says the project will include: energy-efficiency improvements; meeting the staff’s space needs; better ADA accessibility; improved restrooms; a new backup generator; and an expanded council chamber. The contractor will also have to preserve the building’s historic character.

Town Manager Patrice Toney said other aspects of the renovation included addressing third-floor structural issues and verifying that there is no asbestos in the building. The town has a previous design for renovations on hand so the work won’t be starting from scratch.

Offenburg said the renovations won’t affect the town’s budget until fiscal year 2027, when the town will start paying off the debt. That will translate into a $1- to $ 1.4 million budget item. Council member Danny Nowell said that’s a responsible figure the town can afford. “We don’t want anyone falling through the floor. We have to do it for safety.”

The presentation highlighted the need to allocate additional funds for anticipated Carrboro expenditures on the Orange Water and Sewer Authority (OWASA) in FY 2026. While the PowerPoint did not list a specific figure, Offenburg said OWASA anticipates requesting $35,000. Town Manager Patrice Toney said the money will help OWASA customers in Carrboro cope with utility rate increases.

Fray asked about the $1.5 million in increased IT expenses and the $133,000 increase in the Parking Fund. Offenburg said the IT costs included software licenses, new software subscriptions, and service agreements. The parking fund costs were for parking lot leases.

Council member Cristobal Palmer inquired whether the town anticipated receiving any funding from federal sources, given the current political climate. The answer: No, federal policy shouldn’t change any of the figures.

You can see the entire meeting on Carrboro’s YouTube channel.

Fraser Sherman has worked for newspapers, including the Destin Log, the Pensacola News-Journal and the Raleigh Public Record. Born in England, he’d still live in Florida if he hadn’t met the perfect woman and moved to Durham to marry her. He’s the author of several film reference books and has published one novel and several short story collections. This reporter can be reached at: Information@TheLocal Reporter.press