Alamance County budget proposal would raise property tax rate 2.25 cents

Alamance County homeowners would see a noticeably larger bill if commissioners approve Heidi York’s budget proposal: about $45 more a year on a $200,000 home, about $56 on a $250,000 home, about $65 on a $289,000 home, about $79 on a $350,000 home and about $113 on a $500,000 home.

York, the county manager, presented the recommended 2026-27 budget on May 19, calling for the property tax rate to rise from 49.4 cents to 51.65 cents per $100 of assessed value. The 2.25-cent increase would generate about $6.2 million in new revenue and comes as county leaders say reserves have been depleted and support from the state and federal governments has dropped.

The proposal totals about $239.1 million and cuts overall spending by 1.2 percent even as the tax rate goes up. York’s plan would delete 41 unfilled jobs and nine additional vacant positions, while giving remaining employees a 2 percent cost-of-living increase. She also kept school funding essentially level, apart from an added $1.45 million in current expense money that she said was required by law. Her recommended $85.2 million for the Alamance-Burlington School System falls short of the system’s $88 million request.

The tax increase is meant to shore up the county’s finances after lower sales tax receipts and a shrinking unencumbered fund balance left the board below its goal of keeping at least 20 percent of general-fund outlays in reserve. One penny on the tax rate brings in about $2.7 million, making the proposed 2.25-cent hike a key source of balance in York’s spending plan.

The fiscal pressure is showing up across the county. York’s earlier budget work also rejected most requests for replacement vehicles and new staff, eliminated an imminently vacant assistant county manager post and imposed a moratorium on longevity bonuses for veteran employees. She also turned down requests for more money for Burlington’s animal shelter and some outside nonprofits.

The proposal now moves to the Alamance County Board of Commissioners, which is set to continue budget talks at its June 9 meeting. The board’s political divide is already clear: chairman Kelly Allen and commissioner Ed Priola have said they oppose the property tax increase, while vice chairman Steve Carter and commissioners Pam Thompson and Sam Powell have not committed.

The stakes are familiar in Alamance County, where budget fights have repeatedly turned on schools, rescue services and tax bills. Last year, commissioners first received a budget that called for a 1.59-cent increase, then later adopted a revised plan with a 2.5-cent tax hike and more school funding. This year, the question is whether York’s proposed increase is enough to protect services without forcing even deeper cuts elsewhere.