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34 <br /> Slide#15 <br /> FY 2026-27 Operating Budget Options <br /> • Summary of Pass #1 Options without Changes in Occupancy Tax and <br /> Article 46 <br /> 0 Summary of Options <br /> Pay-Go Increase $3,000,000 <br /> Current Expense Increase @ 2.5°!° $2,800,000 <br /> SRO-Nurse Increase Contract Increase @ 3% $123,744 <br /> Employee Wage Increase @ 2% $1,860,000 <br /> Tax Assessment Reserve $250,000 <br /> Living Wage Increase @$20.02 per hour $500,000 <br /> Longtime Homeowners Assistance Increase tied to Tax Rate $----------TBD <br /> Payments to Municipalities-Recreation and Library $435,913 <br /> Climate Action Grant Program $210,110 <br /> Other Grant Programs $-----------TBD <br /> Transfer Outside Agency and MOE Funding to Opioid Fund $-----------TBD <br /> TOTAL $9,179767 <br /> ORANGE COUNTY <br /> 15 NORTH CAROLINA <br /> Slide#16 <br /> FY 2026-27 Operating Budget Options <br /> • Policy Considerations <br /> -Apply Occupancy Tax to General Fund expenses? <br /> Local Occupancy Tax legislation requires 10%of Occupancy Tax collections($233,300)to be invested in <br /> tourism related spending <br /> Operating or Personnel expenses in Visitors Bureau or Arts Commission would have to be reduced to apply to <br /> other General Fund expenses <br /> Town of Chapel Hill Manager's Recommended Budget removes remaining$200,000 contribution to the Visitors <br /> Bureau-will require staff amendment and corresponding spending reductions <br /> OutsideCategory Visitors Bureau Arts Commission <br /> ersonnel $730,737 $439,931 $0 $1,170,66 <br /> perations $1,219,017 $388,030 $65,756 $1,672,80 <br /> on-Occupancy Tax Revenue 217 000 293 489 0 510 489 <br /> et Occupancy Tax usage $1 732 754 $534 472 $65 756 $2,332,98 <br /> ORANGE COUNTY <br /> 16 NORTH CAROLINA <br /> Travis Myren noted that while state law requires only that 10% of occupancy tax collections be <br /> dedicated to tourism-type activities, and approximately $233,000 of the $1.7 million currently goes to <br /> the Visitors Bureau, the Board could decide to redirect additional funds to general fund activities. He <br /> noted that the Town of Chapel Hill has removed its remaining $200,000 contribution to the Visitors <br /> Bureau in its current recommended budget and is adding a destination coordinator to its Economic <br /> Development Department, overlapping with a role currently played by the Visitors Bureau. <br /> Commissioner Greene added that last year the Town of Chapel Hill removed $300,000, and <br /> proposed $200,000 this year,for a total decrease of$500,000 over two years. <br />