Budget

The budget is a financial plan for the fiscal year (July 1-June 30). Hillsborough uses a three‐year format to better see any fiscal or operational challenges. The budget's first year is legally binding. Years 2 and 3 show needs to plan for.  

The budget contains:

• An estimate of proposed expenditures.
• The proposed means of financing the expenditures.
• Goals and objectives of the expenditures.

The Budget Division is responsible for preparing the town's budget. When possible, the town applies for federal, state and other grants to cover some of the cost of town projects.

Current Budget

• Fiscal Year 2025 Budget Ordinance
• Fiscal Year 2025 Budget at a Glance
• Fiscal Year 2025 Fees and Charges Schedule

Detailed Budget Information and Guide

• Fiscal Year 2025 Budget Message
• Fiscal Year 2025 Recommended Budget and Financial Work Plan

The budget process takes nearly eight months.

November — Town staff begin working on budget proposals for the next fiscal year, which starts July 1.

January-March — The mayor and commissioners meet with key staff members in a retreat during the winter to plan for the budget. The retreat gives staff guidance on the priorities and direction for the budget.

May — The town manager presents a recommended budget to the town board. The community is invited to review and share comments on the budget at a public hearing later in the month. The board also conducts a work session to discuss the budget at the same meeting.

June — A second work session occurs in June if needed. The board votes on the budget at a regularly scheduled meeting in June.

July — The approved budget goes into effect on July 1. 

To address local impacts brought on by the COVID-19 pandemic, the federal government allocated funds to other units of government through the American Rescue Plan. These funds are commonly referred to as state and local fiscal recovery funds.

Hillsborough received nearly $2.3 million in two equal distributions about one year apart. The allocation amount was determined by the United States Treasury, based on Hillsborough’s population proportion among all non-metropolitan areas in North Carolina.

Plan for Funds

The Hillsborough Board of Commissioners decided to spend its allocation to address a portion of necessary water and sewer improvement projects over several fiscal years. The funds are being spent in an expenditure category allowed by the U.S. Treasury for local government units for the general provision of government services.

In October 2023, the town board voted to allocate all unspent American Rescue Plan funds to reimbursing the Water and Sewer Fund for 2022 salaries. This transaction — authorized in U.S. Treasury rules — created unrestricted fund balance that the town then allocated to its previously identified American Rescue Plan Act projects. These funds are allocated to the town’s capital project funds through project ordinances. They are no longer subject to compliance regulations of the act and are considered “ARPA-enabled projects.” This action reduced administrative burden and eliminates the previous expenditure deadline of Dec. 31, 2026.

Revenues

• Award Amount — $2,282,192.40
• Interest — $48,733.00
• Total — $2,330,925.40

Expenditures

The funds are being used for the following utilities projects, with expenditures totaling the total in revenues above.

Water System

• Water Treatment Plant filter repair — $83,460
• Water Treatment Plant upgrade to SCADA (supervisory control and data acquisition control system for high-level supervision of machines and processes) — $48,618
• Galvanized water main replacement (ARPA-enabled) — $160,000
• Hydrant and valve replacements (ARPA-enabled) — $487,647.40
• McAdams Road water main replacement (ARPA-enabled) — $350,000
• Water Treatment Plant paving and curbing repair (ARPA-enabled) — $90,000

Sewer System

• Wastewater Treatment Plant clarifier coating — $176,200
• Lawndale Basin rehabilitation (ARPA-enabled) — $935,000

The town uses a strategic plan to align available resources with priorities. The plan is used in coordination with the budget and the Comprehensive Sustainability Plan. 

• Strategic Plan
• Comprehensive Sustainability Plan

The Annual Comprehensive Financial Report is a complete set of the town's financial statements for the previous fiscal year (July 1-June 30). 

The Financial Services Department oversees preparation of the annual report.

See past reports in the town's archives.

• Fiscal Year 2023 Annual Financial Report

Two of the town's appointed boards have activities supported by tax proceeds.

• Tourism Board activities are supported from a 1% tax on prepared food and beverages. 
• Tourism Development Authority activities are supported from a 3% room occupancy tax.

Budgets

• Tourism Board Budget
• Tourism Development Authority Budget

Financial Statements

Annual financial statements are prepared for the two boards. 

• Tourism Board Financial Statements
• Tourism Development Authority Financial Statements