The Hillsborough Board of Commissioners met Monday, May 18 at the Town Hall Annex. Following is a brief summary. It should not be viewed as official minutes. The meeting is available to view on the town’s YouTube channel. See the agenda packet for more information.

Budget Public Hearing

Four community members spoke at the budget public hearing. Comments expressed included appreciation for:

• Major accomplishments in the past year.
• Keeping health insurance costs the same for town employees to cover spouses and dependents in the next fiscal year despite rising insurance costs.
• Budgeting design work for a sidewalk on Rainey Avenue for the next fiscal year with construction in Fiscal Year 2029.
• Providing financial support to the Hillsborough Arts Council.

Budget Work Session

The board asked questions about departmental requests in the proposed budget before sharing thoughts on major decision points. No votes were taken at this meeting. The board may choose to discuss the budget at its next work session at 7 p.m. Wednesday, May 27 and expects to adopt the budget June 8. The board meets in the Town Hall Annex, 105 E. Corbin St. See the news release on the manager’s recommended budget and financial plan for more detail including links to the recommended budget and a summary of the recommendation.

Property Tax

The draft budget was prepared without a proposed tax rate increase for Fiscal Year 2027, relying on deficit spending for all three years of the financial plan and reducing fund balance significantly by Fiscal Year 2029.

The board discussed the proposal and recommended a two-cent rate increase for the upcoming fiscal year in order to eliminate the current year deficit, reduce future deficits and maintain healthy fund balance levels to ensure resiliency in the event of a natural disaster like the flooding caused by Tropical Depression Chantal in July 2025.

Stormwater Fee

The board supported the manager’s recommendation of a planned $15 increase in the residential stormwater fee with a proportional increase in the nonresidential stormwater fee.

Water and Sewer Rates

The board supported the manager’s recommendation of a planned 7.5% rate increase in water and sewer rates.

Nonprofit Funding

The board discussed and allocated funding for local nonprofits for the town’s Fiscal Year 2027 budget:

• Disability Awareness Council — $3,800
• Exchange Club Park — $7,500
• Fairview Community Watch —  $10,000
• Food, Fitness and Opportunity Research Collaborative — $51,683
• Hillsborough Arts Council — $15,000
• Orange County Congregations in Mission — $11,000
• Orange County Arts Alliance — $10,000
• TABLE – $0

Storm Damage Reimbursement

Assistant Town Manager Matt Efird shared the town’s progress in receiving reimbursement for damages and costs associated with the flooding caused by Tropical Storm Chantal. So far, the town has recovered about $2 million from the Federal Emergency Management Agency and insurance. The town expects to recover an additional $1.5 million in reimbursements and is continuing to seek additional funding for longer-term mitigation projects.