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43 <br /> 1 Slide#10 <br /> FY 2026-27 Operating Model Update Summary <br /> Updated Operating Model—April 2026 <br /> Initial Model Gap-January 2026 1 $21.45 million <br /> Property Tax Base Update ($400,000) <br /> Sales Tax'Hold Harmless $500,000 <br /> Living Wage $500,000 <br /> Pay-Go Funding ($3 million) <br /> Debt Service ($2.8 million) <br /> Crisis Diversion Operating Costs ($800,000) <br /> Health Insurance ($400,000) <br /> Other Changes Net ($50,000) <br /> Updated Operating Model Gap $15 million <br /> Tax Rate Equivalent 4.45 cents per$100 of value <br /> ORANGE COUNTY <br /> 10 NORTH CAROLINA <br /> 2 <br /> 3 Travis Myren reported that, accounting for all the changes in slide #10, the current gap between <br /> 4 revenues and expenses stands at approximately$15 million, equivalent to approximately 4 to 4.5 cents on <br /> 5 the tax rate. He noted that work with department directors is ongoing and is expected to reduce that <br /> 6 figure further. <br /> 7 <br /> 8 Slide#11 <br /> FY 2026-27 Balancing the Budget <br /> Options for Reducing Tax Increase <br /> • County Manager is reviewing a variety of options as tools to reduce the gap and potential tax <br /> increase <br /> Education Current Expense <br /> Each I%=$1 million Per pupil funding increase is based on <br /> total enrollment of 18,492 <br /> Percent Increase to <br /> _Pr-Pupil Funding FY2026-27 enrollment is 451 less <br /> Total Funding <br /> ____-_----- than FY2025-26 budgeted <br /> Current Expense Increaseenrollment <br /> Base Amount $111,328,011 2.4% This represents a 2.4%decrease <br /> from FY2025-26 <br /> 1% $112,441,291 3.5% <br /> 1.5% $112,997,931 4.0% <br /> 2% $113,554,571 4.5% <br /> 2.5% $114,111,211 5.0% <br /> 3% $114,667,851 5.5% <br /> ORANGE COUNTY <br /> 11 NORTH CAROLINA <br /> 9 <br />