Alamance County commissioners have been given four options for a revised new budget for 2025-2026 from county manager Heidi York, based on various criteria the commissioners outlined on the second day of their two days of workshops held Monday and Tuesday, June 9 and 10.
The Alamance News obtained copies of the correspondence from York late Friday after filing a public records request with her earlier in the day.
A penny on the tax rate is estimated to generate $2,652,787.
To review the discussions from this week’s two budget workshops, read here: https://alamancenews.com/alamance-news-exclusive-more-on-the-budget-from-two-days-of-commissioner-workshops/
To learn results of public hearing on the budget (from June 2), read more here: https://alamancenews.com/an-alamance-news-exclusive-extensive-county-budget-coverage/
Plan A, revised budget with no property tax increase
The first scenario, shared with commissioners on the day after the workshops, uses additional revenues expected during the current fiscal year (that ends June 30) to offset any property rate increase for 2025-2026, as well as to restore funding for several organizations that York had removed or reduced in her initial recommended budget that was presented to commissioners on May 19.
York originally had recommended a tax rate of increase of 1.59-cents per $100 valuation (48.49 cents per $100 valuation), or about 3.4 percent above the current rate of 46.9 cents per $100 valuation.
Instead, in an email to commissioners on Wednesday afternoon, York, summarized the situation: “Based on my conversations with some of you, it sounds like you may have narrowed down to one possible scenario for an Adopted Budget. We have included what you have asked for below, but are happy to run additional scenarios at your request. Please let us know if we can provide any additional calculations and/or information.”
In her Plan A, which she described as “Fund Balance Swap for Property Tax,” York would use $6,305,573 of those previously unexpected revenues to wipe out the $4.4 million to be raised by her tax rate increase (instead, leaving the current tax rate at 46.9 cents per $100 valuation), as well as to increase spending by $1,082,336 for items she had cut out or reduced in her initial (May 19), recommended budget.
The revised budget scenario, subsequently dubbed Plan A, calls for:
- restoring $275,000 in funding York had eliminated for three nonprofit organizations:
- the Rescue Squad ($125,000);
- Family Abuse Services ($75,000); and
- Crossroads ($75,000).
There appeared to be a consensus among all five commissioners on Tuesday that those three groups should have their funding restored.
Another $175,000 would be restored from York’s original budget for:
- the Burlington-Alamance Airport ($125,000); and
- additional general Economic Development incentives ($50,000).
A third component of York’s revised Plan A is to restore frozen positions at 10 months only and positions that had been recommended for elimination (combining for an additional $632,336 added back into the budget).
Even with the use of $6.3 million from the fund balance, the remaining fund balance under Plan A would be 21.5 percent, York estimated in her memos to commissioners – which is above both the 19.8 percent that it was at the end of June 2024, and above the commissioners’ self-imposed “target” of 20 percent.
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Plan B, Fund Balance to ABSS Capital
In York’s second option, or Plan B, provided to commissioners on Friday, York would divert the entirety of the newfound fund balance revenues, $10 million, to the school system.
The tax rate would be as she originally recommended, 1.59 cents per $100.
The $1.083 million in restorations, described above, are not included in this option, however. The fund balance, which drops by $11 million, to 19.7 percent – thus falls below both the commissioners’ target level of 20 percent and below last fiscal year’s yearend percentage of 19.8 percent.
Plan C: Fund Balance Capital and 2 Cent Tax Increase
York’s Plan C is based on chairman John Paisley, Jr.’s request to include an option for a 2-cent property tax increase, bringing the tax rate to 48.9 cents per $100 valuation. She also diverts $9 million of the $10 million newly-discovered fund balance revenues to spending projects.
The same six areas for restored funding in Plan A are included in this option, plus shifting some of the ABSS budget ($10 million) from its capital budget to current expenses, instead.
Then $6 million would be added back to the ABSS capital budget (with the school system to determine priorities for spending), with another $2 million added to the county’s own capital budget. Doing so would, according to her memo to commissioners, allows the county to restore funding for replacement of vehicles and make $100,000 in emergency repairs at the Altamahaw-Ossipee ballfields (both of which she had cut in her proposed budget, as it was originally presented on May 19).
Plan D: 7-Cent Tax Increase
Lastly, York has provided an option requested by commissioners Pam Thompson and Kelly Allen for a 7-cent tax increase, to 53.9 cents per $100 valuation; the idea of instituting such a large increase was initially broached to the commissioners during Tuesday’s budget workshop by Allen E. Gant, Jr., chairman of Glen Raven, Inc., one of the county’s oldest industries.
Like the other plans, the six areas of funding would be restored.
But ABSS would also be the largest beneficiary, with an increase in its current expense budget by $12,487,173, as well as a $5 million increase in its capital budget.
The impact on homeowners in a home at the median assessed value (of $265,200) would be $191.67 per year, York estimates; for plan A, no increase; for plan B, $47.86; and for plan C, $56.68.
The commissioners have moved their Monday night meeting from their usual meeting room in the county office building to the Alamance County Historic Court House; it will begin at 6:30 p.m.
