Manager Considers Property Tax Raise

Link presented a contingency plan Monday night as part of his 2002-03 county budget proposal.

The county has created the plan to offset the $3.1 million officials expect the state to withhold to deal with its own budgetary problems.

The contingency plan, which would only be enacted if the state withholds the funds, would cut or postpone projects that would have a minimal impact on the county's day-to-day operations.

Among the programs that could be delayed for a year are the purchase of county vehicles and personal computers.

As part of the budget proposal, Link said, he is seriously considering recommending a countywide property tax increase of 4.5 cents that would generate an anticipated $4.2 million for the county.

The increase would apply to all properties within Orange County and would be in addition to any property tax increases enacted by the towns of Carrboro or Chapel Hill.

All budget recommendations must be approved by the commissioners and in place by June 30, but officials plan to announce the budget May 22.

Orange County Budget Director Donna Dean said she expects Link will recommend the property tax increase to the commissioners for approval.

Dean said Link will likely recommend the property tax instead of other cost-saving measures that have been put on the table, like reducing the county's operating expenses by 1 percent or putting a three-month freeze on hiring new personnel for noncritical vacant positions.

Dean said the budget will not include money set aside for cost-of-living salary increases for county employees.

"At this time pay raises are not being considered," she said.

Reducing the county's operating expenses by 1 percent would generate approximately $99,000 while freezing hiring for three months would generate $468,000.

Dean said the final decisions will be left to the commissioners.

"They are going to have to make some tough decisions in trying to cut costs and still preserve those services that we provide," she said.

Orange County Commissioner Stephen Halkiotis said the budget is the bleakest-looking budget he has seen in his 14 years of service.

But Link said he hopes the economic climate will turn around soon and the numbers will improve.

Orange County Commissioner Barry Jacobs suggested Link and his staff conduct their long-term planning "on the assumption that things will not get any better and the budget could be as bad as it is now or worse."

Link also mentioned there would be other ways to increase revenue for the county in addition to more possible cost-saving measures if the economic hardships continue.

These measures have yet to be established as the county planning staff has not completed its analysis of the county's possibilities.

The City Editor can be reached at citydesk@unc.edu.