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HomeMy WebLinkAboutFY25-26 Rec. Budget, At A Glance FINAL Ṡ‚ ‚ǮK ŁǼḊ‚‚‚‚Recommended Budget, Fiscal Year 2025- NEW HANOVER COUNTY The Model of Good Governance AT A GLANCE Recommended Budget, Fiscal Year 2025-2026 NEW HANOVER COUNTY AT A GLANCE | RECOMMENDED BUDGET, FISCAL YEAR 2025-2026 CONTEXT AND BUDGET DEVELOPMENT The Fiscal Year 2025-2026 Recommended Budget is shaped by strong economic tailwinds, including a growing tax base, steady sales tax revenue, and the county's AAA bond rating that reduces borrowing costs. These strengths help offset manageable headwinds such as inflation and rising service demands. The budget was guided by the Board’s Strategic Plan priorities of Workforce and Economic Development, Community Safety and Well-being, Sustainable Land Use and Environmental Stewardship, and Good Governance. REVALUATION Fiscal Year 2025-2026 represents a revaluation year in which all of the county’s real property has been revalued for tax assessment purposes at its current estimated market value. Since this last occurred four years ago, the wealth of the county has increased significantly, with the average home price having increased by 67%, which speaks to the strength of our local economy. Also, since the last revaluation process, inflation has reached nearly 25%, which means the cost to provide the services our citizens expect has increased significantly. RECOMMENDED TAX RATE AND COST IN CONTEXT The recommended property tax rate of 35.0 cents per $100 of assessed value is a ten-cent decrease from the prior rate, but coupled with the higher property values, provides additional revenue to fund county services in the face of rising costs. The statutory revenue-neutral rate following revaluation is 29.2 cents. For an average home assessed at $581,000, the recommended rate results in a county tax bill of approximately $170 per month, an increase of $39 per month compared to FY25. BUDGET HIGHLIGHTS This year’s recommended budget maintains essential county services while addressing key community and organizational priorities. It includes competitive compensation adjustments for employees, significant investments in education and public safety, ongoing enhancements in mental health and opioid response, strategic capital improvements, and continued commitments to sustainable land use and good governance initiatives. Public Education is first among equals Preserve open space Preserve debt capacity for major county capital commitments Refine what we already do and do it better FY25-26 Budget Priorities NEW HANOVER COUNTY AT A GLANCE | RECOMMENDED BUDGET, FISCAL YEAR 2025-2026 DRIVERS OF THE $39.9 MILLION BASELINE INCREASE The General Fund rises from $448.6 million to $488.5 million, an increase of $39.9 million. This growth is driven largely by increased funding for priority investments identified by the Board. Education leads these increases, with $8.13 million allocated primarily for operational support to New Hanover County Schools and Cape Fear Community College. Public safety upgrades include $5.10 million in targeted pay increases for public safety employees, supporting recruitment, retention, and competitive compensation across key frontline roles. Strategic enhancements and new initiatives add $4.90 million, while competitive market and merit-based employee compensation increases account for $4.25 million. Additional targeted investments totaling $3.19 million will fund legal aid, court technology, medical services at the detention center, economic development, internships, lobbying efforts, and additional support for the District Attorney’s Office. To sustain the county’s commitment to workforce housing following the sunset of federal ARP funds, $3.00 million is included. Increased property insurance costs require an additional $2.35 million, and continuing commitments like Project Grace and the Northchase Library opening contribute $2.28 million. Restoring departmental budgets that were reduced last year adds $1.08 million, debt service increases account for $1.90 million, and the Scotts Hill water-line project funding requires $1.75 million. Finally, shifting Pre-K expansion costs previously supported by ARP to the General Fund contributes $0.95 million to this baseline increase. This chart highlights budget enhancements and restorations of county departments, programs, and services. The full recommended budget can be viewed at Finance.NHCgov.com. NEW HANOVER COUNTY AT A GLANCE | RECOMMENDED BUDGET, FISCAL YEAR 2025-2026 HOW THIS BUDGET DIFFERS Compared to the current fiscal year, the recommended budget significantly reduces the tax rate to offset higher assessed property values from revaluation, while providing additional revenue to offset inflation and enhanced services. The budget does not include new debt for annual capital outlay, keeps core user fees steady, and utilizes conservative projections for revenue growth. CHALLENGES AHEAD The county continues to face challenges related to persistent inflation, rising operational costs, affordable workforce housing, and gaps in behavioral health services. These challenges are being met through strategic fiscal management, disciplined budgeting practices, and targeted investments aligned with the Strategic Plan priorities. MOVING FORWARD This Recommended Budget strategically aligns county spending with the Board’s priorities of Workforce and Economic Development, Community Safety and Well-being, Sustainable Land Use and Environmental Stewardship, and Good Governance. It positions New Hanover County to continue its strong fiscal stewardship while addressing critical community needs.