Orange County, Chapel Hill voters face big-money choices to fix schools, fund projects
The story has been updated.
Voters are being asked to approve millions of dollars in spending for school construction projects across Orange County and for big-ticket needs in Chapel Hill in the 2024 election.
The general obligation bonds, if approved on Nov. 5, would let the county and Chapel Hill borrow money at lower interest rates and repay the debt over 20 years.
▪ A $300 million bond for Orange County Schools and Chapel Hill-Carrboro City schools would cover some of the two districts’ estimated $1 billion in school building needs. Tax increases would be necessary to repay the debt, county officials have said.
At least 23 of the 39 schools and administrative facilities countywide are over 40 years old and need significant repairs or should be replaced, according to a 2023 consultant’s report. The bond could fund four new elementary schools and renovate others.
▪ In Chapel Hill, voters will decide whether to spend $44 million on several projects, including new fire stations and affordable housing.
Each bond question includes a paragraph about how the spending could affect property tax bills because of a 2023 change in state law that requires local governments to include that language even if a tax rate increase won’t be necessary.
“The town will not need to increase taxes to issue these bonds,” Mayor Jess Anderson said in a message to the community Tuesday. “This is because we have sufficient capacity in our debt fund to cover the payments without increasing revenues.”
Early voting runs Thursday through Nov. 2. The general election is on Nov. 5. Here are more details about each bond referendum.
$300M Orange County schools bond
A 2023 countywide study found over $1 billion in work is needed. The bond doesn’t specify what projects would be built, but the county and the schools want to address the most critical needs.
The $300 million bond — $480.36 million with interest — would be split between the districts based on enrollment. Chapel Hill-Carrboro City Schools could get $175 million; Orange County Schools could get $125 million.
What could Chapel Hill-Carrboro City Schools do with its share?
▪ Replace Carrboro, Estes Hills and Frank Porter Graham Bilingüe elementary schools over the next 10 years. There’s no new site yet for FPG Elementary. The other schools would be rebuilt on their current campuses.
▪ Make major renovations at Culbreth and Phillips Middle schools. The athletic field at Phillips Middle School would move to make room for the new Estes Hills Elementary, and a future bond could pay to rebuild Phillips Middle.
What would Orange County Schools do with its share?
▪ Build a new, 600-student elementary school
▪ Replace Orange Middle School
▪ Major renovation and addition to one additional school
How would the bond affect property taxes?
The tax rate could increase up to 3.41 cents per $100 in property value next year, adding $136.40 to the county tax bill for a $400,000 home.
More tax rate increases are possible over the next 10 years, for a total projected increase of 8.42 cents per $100 in assessed property value. That could add $336.80 in county property taxes to a house valued at $400,000 over the next 10 years.
County Manager Travis Myren has said the final tax increase will depend on when projects are scheduled, the county’s 2025 property revaluation and interest rates. The county’s current tax rate is 86.29 cents per $100 in property value.
Town of Chapel Hill bonds
Five Chapel Hill bond decisions are on the ballot, adding up to $44 million, or $68.69 million with interest. The bonds could be issued over the next six years. If they are not approved, the town would need another way to pay for the work, potentially increasing the final cost.
How would the money be used?
▪ Affordable housing: $15 million to work with nonprofit partners and leverage state and federal funding to build affordable housing, preserve existing affordable homes, and buy property that could be used for affordable housing.
▪ Fire stations: $15 million to replace Fire Station 3 at East Franklin Street and Elliott Road, and replace Fire Station 4 on Weaver Dairy Road Extension. Both are over 40 years old and have plumbing, heating and cooling, roof and foundation problems that are beyond repair, town officials have said.
▪ Streets and sidewalks: $7.5 million to improve and expand sidewalks, making them accessible to people with disabilities. Projects could include a Fordham Boulevard sidepath between Cleland and Willow drives, and Ephesus Church Road sidewalks between Pinehurst and Colony Woods drives.
▪ Parks and recreation: $4.5 million to replace artificial turf at Homestead Park and potentially build the Community Center climbing wall, a splash pad or more pickleball courts. The final projects will be identified in a new Parks and Recreation Master Plan.
▪ Open space and greenways: $2 million to extend the Bolin Creek Greenway from Umstead Park to Estes Drive Extension, where it could connect to the Bolin Creek Greenway in Carrboro and eventually to Carolina North and Aura at Martin Luther King Jr. Boulevard.
Would this meet all the town’s needs?
No. Chapel Hill has another $106 million in unfunded projects, including street resurfacing, Historic Town Hall renovations, a solid waste transfer station, and coal-ash remediation at the Chapel Hill Police Department.
The county’s 2025 revaluation could bring in more money if the Town Council doesn’t leave the tax rate at revenue neutral next year. A revenue neutral tax rate brings in the same amount of money as the prior year, regardless of changes in the value of property.
Another bond could be put to voters in 2032 depending on multiple factors, including how quickly the town can repay the $51 million cost to build the East Rosemary Street parking deck and the final cost of cleaning up the coal ash and building a new police headquarters and Municipal Services Center.
This story was originally published October 17, 2024 at 5:40 AM.
CORRECTION: The story has been updated to reflect the latest Orange County Schools projects that the bond money will fund.
