Durham's City Council heard a proposed $667 million budget for next year that would raise property taxes by 3.85 cents per $100 of assessed value. The increase means a homeowner with a median-valued house of $254,400 would pay about $153 more in city taxes annually, bringing their total city tax bill to roughly $1,517. The City Manager acknowledged the property tax hike is necessary but "sometimes not easy," though always the right choice.
The biggest driver of the budget increase is employee compensation. The city is investing $28.5 million in a comprehensive pay restructuring based on an external market study showing Durham has fallen behind regional competitors in wages. Police officers' starting pay jumps from $47,938 to $54,820, a 14.35 percent increase, with some police positions seeing raises up to 22.5 percent. Firefighters get 10.5 percent increases. The city also raised its minimum livable wage from $18.46 to $19.58 per hour. The City Manager emphasized that employees are "the right priority" and that better pay is critical for recruitment and retention, especially in public safety departments facing staffing challenges.
Key Votes (14)
Contract
passed7-0
FAA Airport Grant - $15 Million
$15M
Accept a $15 million Federal Aviation Administration grant for airport improvements and authorize the City Manager to execute the grant agreement.
Resolution
passed7-0
Sankofa Landing Housing Bonds - $28M
$28M
Approve financing for Sankofa Landing, a multifamily affordable housing facility, using up to $28 million in housing revenue bonds.
Resolution
passed7-0
Commerce Street Apartments Bonds - $27.9M
$27.9M
Approve financing for Commerce Street Apartments multifamily housing using up to $27.86 million in housing revenue bonds.
Info
passed7-0
Community Land Trustees Rental Rehab Loan
$1M
Approve a forgivable construction loan to Durham Community Land Trustees to rehabilitate five substandard rental units in Northeast Central Durham.
Contract
passed7-0
Fayetteville Street Corridor Grant - $6.75M
$6.8M
Authorize a $6.75 million ARPA grant agreement with Hayti Promise and Saint Joseph's Historic Foundation for Fayetteville Street improvements.
Contract
passed7-0
Fayetteville Street Subgrant - $3.24M
$3.2M
Authorize a $3.24 million ARPA subgrant to Hayti Promise and Saint Joseph's Historic Foundation for corridor improvements.
Contract
passed7-0
Stallings/Geer Water/Sewer Construction
$2.9M
Authorize construction contract for water and sewer improvements on Stallings and Geer not to exceed $2.5 million plus contingency.
Contract
passed7-0
Stormwater Basin Studies - $1.56M
$1.8M
Authorize contract with John R. McAdams Company for stormwater basin and retrofit evaluations not to exceed $1.56 million plus contingency.
Ordinance
passed7-0
Southeast Durham Watershed Plan - $2.86M
$3.1M
Authorize contract with Wildlands Engineering for Southeast Durham Watershed Improvement Plan not to exceed $2.86 million.
Contract
passed7-0
GoDurham ACCESS Service Amendment
$13.7M
Extend the contract with National Express Transit to operate GoDurham ACCESS paratransit service for $13.68 million.
Contract
passed7-0
Water Meters Blanket Purchase - $2.5M
$2.5M
Authorize a one-year blanket purchase order with Ferguson Enterprises for up to $2.5 million in water meters and components.
Contract
passed7-0
Culture and Arts Recovery Grant - $1M
$1M
Accept $1 million in ARPA funds from Durham County and execute agreement to support local culture and arts recovery efforts.
Contract
passed7-0
Oracle ERP System Implementation
$8.0M
Authorize contract with Mythics to replace the city's financial system with Oracle Fusion Enterprise Resource Planning software for $8.03 million.
Ordinance
passed7-0
HOME Grant Program Income Ordinance
$1.5M
Amend the housing grant ordinances to account for $228,230 in program income received through February 2024.