The Hillsborough Board of Commissioners has received the manager’s proposed budget for Fiscal Year 2027. In the draft plan, the town’s operating expenses total about $36.4 million, with increases to stormwater fees and water and sewer rates due to increased operating costs and inflation.

Proposed operating expenses are:

• $19.5 million in the General Fund.
• $15.8 million in the Water and Sewer Fund. 
• $1.2 million in the Stormwater Fund.

Proposed Rates and Fees

Any approved rate changes would begin July 1. The town’s fiscal year runs through June 30.

Property Tax

The recommended budget continues the current property tax rate of 51.3 cents per $100 of valuation.

It recommends using $466,231 from fund balance, or savings, to balance the budget. The town’s policy is to maintain a fund balance reserve between 33 and 100% of operating expenses. The recommended budget keeps the fund balance within the range required by the policy.

Key items proposed for funding include:

• Replacing police and public works vehicles.
• Repaving streets.
• Partnering with nonprofits.
• Saving for major projects, including future greenway and downtown fire station.

Stormwater Fee

The recommended budget increases the town’s residential stormwater fee by $15 and adjusts the nonresidential tiers proportionally. The total stormwater fee for residential properties would be $120 per year. See the proposed fees on the Stormwater Fees page.

Key items proposed for funding include:

• Rehabilitating the Elizabeth Brady Road culvert.
• Saving for large stormwater improvement projects.

Water and Sewer Rates

The recommended budget increases water and sewer rates by 7.5%. See the proposed rates on the Water and Sewer Rates page.

Major projects planned for the next three years include:

• Repairing the reservoir’s dam spillway.
• Upgrading the Elizabeth Brady Road sewer pump station and major sewer lines by Cates Creek and the eastern Eno River.
• Renovating and expanding the Adron F. Thompson Water/Sewer Facility.

Public Comment

Share your thoughts on the proposed budget at a public hearing: 7 p.m. May 18 at the Town Hall Annex, 105 E. Corbin St. Speakers will have three minutes each to address the board. Sign up at the meeting.

The May 18 meeting includes a budget work session. The session will continue May 27 if needed. The board is expected to vote on the budget at its June 8 meeting. Meetings can be viewed online.

More Information

The manager’s budget is guided by:

• Taking care of the town’s infrastructure, equipment, buildings, employees and systems before adding new items.
• Forecasting the town’s needs over multiple years.
• Considering the town’s strategic plan.

Hillsborough uses a three‐year budget format to better see any fiscal or operational challenges. The draft package provides forecasting through Fiscal Year 2029. The first year of the financial plan is legally binding. Years 2 and 3 show needs the town expects. Hillsborough’s recommended budget includes funds to pay debts on completed projects as well as funds to save for future projects.

For more information, see the Budget and Finances page.

Questions? Contact Hillsborough Budget Director Emily Bradford by email or by phone at 919-296-9427.

Related Documents

• Manager’s Recommended Budget Workbook and Financial Plan
• Budget at a Glance
• Budget Message