Durham’s new city budget raises taxes. Here’s where the money will go.
Durham city leaders unanimously approved a $529.7 million budget Monday night that raises the city tax rate 2 cents, or nearly 3.8%.
The 2021-22 fiscal year budget, which takes effect July 1, includes money for affordable housing, green and equitable infrastructure projects, and a new department for community safety.
A bulk of the tax increase will go toward paying off the $95 million affordable housing bond that voters approved in 2019. A fourth of it will go toward the infrastructure projects, which city leaders and staff will determine at a later date.
The Community Safety Department will house new initiatives for public safety outside of traditional policing. It will include pilot programs to explore alternative responses to 911 calls and oversee the $935,000 that city leaders invested into expanding Bull City United, the county’s violence interruption team.
The budget also includes an increase of $4 million for street paving, bringing the city’s total funding for resurfacing roads to $10 million.
City Council members did not comment when they approved the budget Monday, but two community members signed up to speak before the leaders cast their votes.
Larry Hester asked for more police patrols along Fayetteville Street in the Southside area.
“This request is based on beliefs that walking and bicycle patrols help to deter crime before it starts, promote a safe environment for all citizens, and help form a healthy relationship between the police and residents, business owners, in our community,” he said.
Donald Hughes, a program coordinator for the nonprofit W.A.R.4Life, asked council members to double the city’s funding for YouthWorks, a summer job-training program led by Durham Technical Community College.
The approved budget includes $558,000 for the youth program.
Budget highlights
Total operating budget: $529.7 million. Last year’s budget was $502.6 million.
Tax rate: An increase from 53.17 to 55.17 cents per $100 of assessed value. For Durham’s median house value of $233,927, the city property tax bill will be about $1,291 per year. Homeowners pay an additional county property tax of 72.22 cents per $100 of assessed value.
Community safety: The Community Safety Department will have 15 full-time positions. Five positions are funded by transferring four sworn officer vacancies and one civilian vacancy from the Durham Police Department.
In May, City Council members asked to freeze 15 more police vacancies. After a six month evaluation, council members may transfer up to 15 of those positions to the new department, The News & Observer previously reported.
Tax assistance: $500,000 for a joint city-county tax relief program. The program will be available for Durham County homeowners who make under 30% of the area median income and have lived on their property for over 10 years. County leaders designated $750,000 for the program in the upcoming county budget.
City employees: 5% premium pay for the city’s essential front line employees, effective retroactively to June 2020. City workers will also get raises: a 2% pay increase for general employees; a 4% pay increase for sworn police officers; and a 3.5% pay increase for sworn fire fighters. All employees will also receive a bonus of $2,000 to $3,000, based on salary level.
New city jobs: 36 new full-time positions across several departments, including Parks and Recreation, Community Safety, Communications, Community Development, and four others.
Water and sewer: An increase of 3.6% in water and sewer rates for the average water customer.
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