PITTSBORO - The Chatham County manager's proposed budget includes a 5.5-cent property tax rate increase to 67.2 cents per $100 of assessed property value to pay for growth.

"We worked hard to limit the property tax burden, but the economic downturn is affecting county government as well," County Manager Charlie Horne said Tuesday. "While this region of the state is faring better than most, the economy has impacted our revenue sources when the need for county services and facilities is on the increase."

Assistant County Manager Renee Paschal said that sales tax revenues will grow half as much as last year and that growth in the property tax base has slowed.

She said building permits and deed stamp collections have declined, so impact fees collected to support school facilities also will be lower.

The proposed tax increase, a 9 percent jump in the tax rate, would provide:

* 1.2 cents for school needs.

* 1 cent to create a capital reserve fund to help pay for parks.

* 1 cent set aside to cover future debt payment for water system construction.

* 2.3 cents to support general operations of the county, including new personnel.

Several county fees also would go up. The solid waste fee would increase from $81 to $91 per household (paid in unincorporated areas only) to help build a new waste and recycling collection center.

Education

The largest category of funding is public education, which is about one-third of the overall budget. The proposed budget provides:

* Full funding of school facility projects in the adopted Capital Improvement Plan. Projects slated for construction this year are asbestos floor removal ($130,000), bleacher replacement ($125,000), camera security system ($274,566), expansion of North Chatham School's cafeteria ($434,000), renovation of high school science labs ($152,400), restroom renovations ($209,000), and renovation of the wastewater system at J.S. Waters School ($25,000).

* A 5 percent increase in funding for capital outlay (facility renovations, equipment, etc.).

* A 5 percent increase in teacher salary supplements.

* A 7.3 percent increase in overall funding for current expenses.

As to other county functions:

The Sheriff's Office would gain seven new staff positions: four to enhance jail security, two civil officers and one narcotics investigator.

Two positions would staff a new Community Development Department, which would coordinate planning, central permitting, sedimentation and erosion control and environmental resources.