How Durham’s proposed city budget could affect homeowners’ tax bills

Durham City Manager Wanda Page’s proposed budget would raise taxes slightly to pay city workers more and fund police and community safety initiatives, including a controversial gunshot-surveillance pilot program the city has previously rejected.

The $568.9 million spending plan is $39.2 million more than this year’s approved fiscal budget. It would raise the city’s tax rate by 0.6 cent, or just over 1%, to 55.77 cents per $100 of assessed property value.

“You’ve probably heard it said, show me your budget and I’ll show you what you value,” Page said. “Well this year, I want to make it very clear: I value our employees.”

Durham City Manager Wanda Page
Durham City Manager Wanda Page

City leaders did not comment on the budget Monday night but will review it and hold a public hearing before adopting a final spending plan in early June. To read the budget, go to durhamnc.gov/204/Budget-Development-Process

Budget highlights

Total operating budget: $568.9 million, or about a 7.4% increase over this year’s $529.7 million budget.

Tax rate: An increase of 0.6 cents, taking the city’s property tax rate from 55.17 cents to 55.77 cents per $100 of assessed value.

If the proposed budget is approved, the owner of a home valued at $235,133, the median value in Durham, would pay a city property tax bill of about $1,311, or about $109 per month, according to the Durham County Office of Tax Administration.

City taxpayers also pay a county property tax, which as proposed, would add $1,698 on the median-value home, for a combined tax bill of $3,009. The proposed county budget does not raise the county property tax rate.

Employee compensation: Durham city employees would get a 3% market-rate raise and the city’s merit-based salary increases would be restored after being suspended due to the “financial uncertainty related to the global COVID-19 pandemic.” All police and fire employees, both general and sworn, received market-rate salary increases of 15% and 14.7%, in January 2022.

“During a time, cited by many as the ‘Great Resignation,’ our employees continued to perform their duties and showed up each and every day for our city even though they had not received merit-based pay raises for two years,” Page said in a news release. “It’s time we recognized their continued service and reward them for a job well done by restoring our merit-based pay system, which was designed to annually reward employees based on the quality of their job performance.”

Community safety: The Community Safety Department would get $1 million in funding, including $900,000, for the department’s new pilots: Crisis Call Diversion, Co-Response, Care Navigation, and Community Response Teams, will launch soon.

The budget also funds free legal services through the Durham Expunction and Restoration Program, as well as a one-year pilot of the ShotSpotter gunshot surveillance program. The technology, which Council member Mark-Anthony Middleton, has repeatedly asked the city to try, was rejected by previous council majorities.

Shared prosperity: The budget would fund new affordable housing efforts, a digital divide initiative and the city’s paid summer youth program.

To date, Forever Home, Durham, the city’s $160 million program has created 662 rental units, restored 261 rental units and helped nearly 1,300 families stay in their homes. The proposal will also provide $500,000 for the Durham County Long-Time Homeowner Grant Program, which helps those at or below 80% of the area median income, pay their property taxes.

Durham also plans to hire a new Digital Inclusion Program manager and develop programming to ensure all residents have access to the internet.

Funding is also included to support paid summer youth career exploration and local businesses through the Momentum 360 Financial Academy Training Program, which supports businesses recovering from COVID-19 shutdowns. The Hispanic Ecosystem and Outreach Program and the Durham Legacy Business Program will also be included.

Capital Improvements: The city wants to invest $102.2 million for water system upgrades and increasing the city’s future water supply through Jordan Lake and Teer Quarry projects, as well as for Lake Michie and Little River construction needs.

The budget would raise water and sewer rates 3.9% and the stormwater fee by 0.93 cents per month.

What’s next

The City Council and staff will review the proposed budget May 25 and May 26. These in-person work sessions will begin at 9 a.m. in City Hall’s Council Chambers and be livestreamed to the City’s YouTube channel as well as Durham Television Network.

The city will hold a public hearing on the proposed budget at 7 p.m. Monday, June 6, with final budget approval set for Tuesday, June 21.

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