Getting your Trinity Audio player ready...

On June 9, the Dare County Board of Commissioners will hold a public hearing on the proposed fiscal year 2026 budget and a planned fiscal year 2027 budget.

County manager Robert L. Outten presented his recommended budget at the commissioners’ May 5, 2025 meeting. The recommended budget can be found online at DareNC.gov under the Finance Department.

Revenues – General Fund

With revaluation in effect, the tax base increased to a value of $27.323 billion from the prior year’s $17.731 billion. Projected general fund revenue using the revenue neutral rate at 26.32 cents and a collection rate of 99.67% is $70.79 million

Sales taxes are projected to increase 2.5% and 2.80%. Occupancy tax revenue is projected to increase 2.5%, “lower than the normally used average growth rate of 3.0%,” signaling slower expected visitation.

To balance the recommended budget, $7.075 million from the fund balance is used. The recommended budget states that amount is “within the Board recently adopted policy of 5% or less of expenditures (increased from 3.0% for 2026 and 2027 only) at 4.95%.

Additionally, the recommended budget is also balanced with a transfer from the Community Development Housing Fund of $1.056 million.

Outten said the board “can’t continue” to balance the budget with transfers from unappropriated fund balance and housing money. The county will need to “increase revenues. It’s coming.” He estimated in the third budget year.

Expenditures

The budget increases are driven by major expenditures for the county’s Board of Education at $2.21 million, including $415,000 for free school lunches and $1.68 million for the 3% cost of living pay adjustment for full-time Dare County employees. Additionally, 14 increases under $500,000 are included for such items as part-time workers’ pay, telephone and postage, as well as new facilities operating costs.

The employee health plan has no projected increase. The planned costs are $48,574 less than last year.

In addition to the 3% cost of living increase for full-time employees, the budget maintains the 3% employer 401k plan contribution and the county’s merit plan.

As to position changes, the recommended budget calls for:

– Two new positions: Elections systems specialist in Elections and senior accounting technician in Finance.

– Part-time new positions: Youth Center, Health Clinic, Public Relations and Parks and Recreation.

– Reclassifications for a deputy position and an assistant county manager position, a chief financial officer position, Environmental Health and Health Clinic reorganizations, Veterans and Public Works.

– Elimination of full-time positions: health education manager, deputy register of deeds, real property appraisal technician and real property appraiser.

Nonprofits and Grants: The budget maintains the same existing funding levels except for a $6,000 increase for Hatteras Island Meals and $40,000 to increase the local match for the Meals on Wheels grant program.

Two stand-alone funds are scheduled to increase charges:

Sanitation Fund (Fund #24). “The Sanitation Fund’s property tax rate is scheduled to increase for 2026 at the recommendation of the Solid Waste Study completed in 2022. The report and model planned for a one cent increase from the pre-revaluation rate of 11.0 cents. The revenue neutral Sanitation tax rate is 7.72 cents and the recommended rate – the equivalent of the above – is 8.42 cents.”

Water Fund (Funds #36 and #37). “The Water Rate Model (Raftelis Financial Consulting) update for 2026 has been completed and requires a 4.5% rate increase for 2026. Some $16 million of the extension and replacement fund was used during 2025 for an emergency replacement of the Roanoke Sound water distribution main. A 4.5% rate increase is projected to restore that fund to $8 million by the end of five years.”

Volunteer Fire Departments and other district rates: All property tax rates are in the recommended budget at their 2026 revenue neutral property tax rates. The following have requested property tax rate changes: Manns Harbor Fire to 8.04; Colington Fire to 8.82; Martin’s Point Fire (Southern Shores) to 4.47; and Hatteras Island Rescue to 0.84. All were approved by the Dare Board of Commissioners.

Budget strategic focus areas

The proposed Dare County Fiscal Year 2026 budget is based on these strategic focus areas:

Long Term Financial Planning for Capital: Maintain capital planning and stabilization of available funding through the use of Capital Investment Funds, long term capital planning,\ and debt affordability models.

Economic Development: Continue Beach Nourishment efforts, address the demand for future projects, and determine additional project prioritization criteria utilizing a beach nourishment and debt affordability model.

Education: Continue partnership with Dare County Schools using an agreed upon formula for local current expense and the School Capital Investment Fund to adequately address future capital needs. Continue expansion of the College of The Albemarle Dare County though a completed capital project, utilization of the Dare Guarantee, a county-funded local scholarship program, and the addition of the Dare County Early College on the Roanoke Island campus.

Human Resources: Maintain improvements in salaries, benefits, and the working environment, per the recommendations of a salary and benefits study made effective January 1, 2023.

Maintain current levels of services.

READ ABOUT MORE NEWS HERE.

SUBSCRIBE TO THE COASTLAND TIMES TODAY!