Hillsborough to Hold Fiscal Year 2023 Budget Hearing and Workshop May 23

The proposed budget makes no changes to property tax rates or stormwater fees. It increases water and sewer rates.

Friday, May 13, 2022

The Hillsborough Board of Commissioners has received a proposed budget for Fiscal Year 2023. The proposed budget makes no changes to property tax rates or stormwater fees. It increases water and sewer rates to address capital infrastructure and meet payments for previous revenue bonds.

Budget materials are available below and on the town’s Budget webpage. The public hearing on the budget will be 7 p.m. May 23 at the Town Hall Annex, 105 E. Corbin St. The meeting will also be available for view on the town’s YouTube channel. Any person wishing to speak on the budget will be allowed three minutes to address the board. The board is expected to vote on the budget at its June 13 meeting.

Proposed FY23 budget

The town’s three budgetary funds are the General Fund, Water and Sewer Fund, and Stormwater Fund. The General Fund is primarily funded with property and sales tax revenues, while the other two funds are enterprise funds that rely on user fees. No profits are made in enterprise funds, and the revenue is used for no other purpose.

Under the draft plan for Fiscal Year 2022-23 — which starts July 1 and runs through June 30, 2023 — the town’s operating expenses would total about $25.76 million, with:

  • $13.5 million in expenses in the General Fund.
  • $11.5 million in expenses in the Water and Sewer Fund.
  • $762,302 in expenses in the Stormwater Fund.

Rates and fees

Recommended are:

  • Maintaining the property tax rate of 58.7 cents per $100 of assessed value.
  • Increasing water rates 4.5% to help pay for debt service on the reservoir expansion and upcoming capital projects; to comply with covenants for revenue bonds sold to pay for the reservoir expansion; and to keep the water fund in a fiscally sound position.
  • Increasing sewer rates 2% to help pay for the upcoming replacement of the Eno River Pump Station and for wastewater collection system maintenance and projects.

General Fund projects

Some projects and initiatives proposed for funding in Fiscal Year 2023 are:

  • Passenger rail and multi-modal station ― To begin design for a proposed rail station in town. Estimated $716,000 for design, paid for with North Carolina grants and GoTriangle transit tax revenues.
  • Public works facility and relocation ― To move staff and equipment to the N.C. 86 North facility and construct storage buildings. Estimated $100,000 for design.
  • Greenway south system ― To plan and develop a pedestrian-friendly transportation infrastructure in the southern parts of the town. Estimated $150,000 for feasibility study, paid for with a mix of Metropolitan Planning Organization grant and local match funds.
  • Fire protection ― To help address personnel challenges for contracted fire protection services. Estimated $67,021 (5%) increase in annual payments for fire protection.
  • Public safety ― To help address current and future needs. Estimated $75,000 to facilitate Police Department reorganization; $90,000 to replace two police vehicles; and $50,000 to build savings for future police station debt service payments.
  • Fire station ― To build funds for construction of a fire station at 604 and 618 N. Churton St. Estimated $150,000.
  • Street resurfacing ― To reestablish the town’s priority of resurfacing 5% of town streets each year. Estimated $180,000.

Water and Sewer Fund projects

Some projects and initiatives proposed for funding in Fiscal Year 2023 are:

  • Maintenance, repair, and replacement of equipment ― To include fire hydrant replacement and valve installations; recoating of clarifiers at Wastewater Treatment Plant; various water main replacements; and rehabilitation of the Lawndale Avenue sewer basin. Estimated total: $1.97 million.
  • Sewer pump station relocation and upgrade ― To design and build first phase of construction. Estimated $3.02 million.
  • Pump Station connection ― To connect sewer line services with adjacent service area of Orange Water and Sewer Authority. Estimated $90,000 for design costs.

More information

Hillsborough uses a multi‐year budget format to provide a more accurate picture of the fiscal and operational challenges the town faces. The first year of the budget is legally binding, while years 2 and 3 provide critical information of upcoming needs to plan for before potential problems become unmanageable. The draft budget package provides forecasting through Fiscal Year 2025.

The budget is made up of two types of funds:

General funds ― These are the chief operating fund for a government. Revenue for the fund comes primarily from property and other taxes. The Hillsborough General Fund pays for services such as police protection, residential garbage collection, and the building and maintenance of recreation facilities like the Riverwalk greenway.

Enterprise funds ― These are government-owned funds that provide goods and services to the public. The revenue for these funds comes from fees and charges. Each of Hillsborough’s two enterprise funds pay for the costs of its individual operations. The town does not make a profit from providing the services in these operations nor does it use the revenue for other purposes.

  • The Water and Sewer Fund pays for providing water and sewer service, which includes the operation, maintenance and improvements of the utility system. Revenue primarily comes from water and sewer charges.
  • The Stormwater Fund pays for stormwater services, including maintaining stormwater drainage infrastructure and preventing pollutants and debris from reaching waterways. Revenue primarily comes from stormwater charges.

Community members are invited to ask questions and share their thoughts on the proposed budget. Attend the public hearing on May 23, or contact Hillsborough Budget Director Emily Bradford by email or by phone at 919-296-9427. To sign up for public comment, contact Town Clerk Sarah Kimrey by email or at 919-296-9443.

Related documents

Document Fiscal Year 2022-23 Annual Budget Workbook