Caswell County officials presented a draft FY2026 budget that would keep overall spending nearly flat but would raise the property tax rate by 3 cents to cover an identified revenue shortfall.

The countys budget presenter, Renee (county staff), told commissioners the gap stems largely from weaker-than-expected revenues this year and several new costs next year: an estimated $110,000 increase in retirement contribution rates, a countywide 1.5 percent cost-of-living salary adjustment that added roughly $200,000 to the general-fund payroll bill, and a $331,000 rise in debt service tied to planned financing. Together those items create a deficit the budget recommends closing in part with a 3-cent property tax increase, which staff calculated would generate about $723,000.

Why it matters: County staff said the spending plan emphasizes continuitypaying current operating costs and planned capital leasesbut the revenue picture forced the tax-rate proposal. Renee said the proposed property tax increase is driven solely by reduced revenues and higher fixed costs, not by significant new recurring program spending.

Key details: Renee described the budget process and the department-by-department review that produced recommended continuation and expansion lines for FY2026. She noted the county has many departments underspending in FY2025, which informed FY2026 allocations. Staff also advised commissioners that a recent update to retirement contribution rates created about a $110,000 unbudgeted cost for the general fund, and that a recommended decision to finance ambulances and communications upgrades would increase debt service but was judged manageable by the countys financial advisers.

Discussion and next steps: Commissioners and staff discussed whether to adopt the property-tax change now or delay action pending the final audit and additional review of department requests. Staff asked the board to approve or reach consensus on departments as they were reviewed so the budget ordinance can be prepared on schedule; no formal vote on the tax rate was recorded in the session transcript. County staff said they would bring a final ordinance and any clarifying analyses back to the board before a final adoption vote.

Taper: The budget work session also included presentations from the countys financial adviser and line-by-line department reviews; staff said they will return with more detailed proposals for capital financing and any necessary midyear adjustments once audits and final revenue numbers are available.