Durham City Council approves $772M budget. Here’s what residents should know.
Durham City Hall erupted in applause Monday night as the City Council unanimously approved a $772 million budget.
The fiscal 2025-26 budget is $53.9 million, or 8%, more than the current year’s budget, and provides money for new staff positions, expanded public safety programs, and maintaining fare-free bus service. The budget takes effect July 1.
City Manager Bo Ferguson’s plan sets the tax rate at 43.71 cents per $100 of assessed property value. Many Durham homeowners will see higher tax bills, but council members say the increase is needed to respond to growing needs. As of 2024, Durham had over 317,000 residents.
HEART, free buses, pay raises, and parks
Here are some of the budget highlights:
▪ All GoDurham buses will remain free for riders through the end of June 2026. The budget includes $17.2 million from the Durham County Transit Plan for bus service expansion and three new positions for a new rapid transit plan.
▪ The budget includes $1.2 million to redesign North Mangum and North Roxboro streets for two-way traffic and $550,000 for Vision Zero initiatives to end traffic deaths.
▪ All city employees will get a performance pay increase of 4% to 6%, and all full-time, sworn police and fire employees will see a 5% step plan raise.
▪ All entry-level and lower-wage full-time city employees will get a bump from $19.58 to $21.90 an hour, marking the first time in six years the city has raised its minimum wage.
▪ There are 42 new positions, with 17 going to the community safety department. Several are for the HEART program, which handles nonviolent 911 calls.
Other departments getting new staff are Parks and Recreation, Transportation, Environmental and Street Services, Fire, Building and Safety, the City Attorney’s Office and Budget and Management.
Impact on homeowners and property taxes
The new tax rate of 43.71 cents per $100 is 5.48 cents above the revenue-neutral rate, which is the rate needed to generate the same amount of property tax money with new, higher tax values. The average home went up 71% in the county’s recent revaluation.
Here’s an example of how a homeowner will be affected:
Before the revaluation, a home valued at $250,000 had a city property tax bill of about $1,498.
Now, if that home’s value increased to $415,000, that owner will get a city tax bill of $1,814.
Added to the county’s rate of 55.42 cents, that homeowner is looking at a combined city-county property tax bill of $4,114.
“We really looked hard at places that we did not have to expand this year because we were worried about increasing taxes at this time,” Councilwoman Chelsea Cook said. “So I just want to acknowledge that it’s a balance, and these are hard choices that we’re making up here.”
Councilwoman Javiera Caballero said part of the tax increase reflects the $200 million bond that Durham residents voted for in November to improve streets, sidewalks and parks.
“It’s not just additional projects that we added during budget season,” she said. “Please know that your local government is trying really hard to meet our needs in this community.”
Council members vote yes
The council members praised Ferguson on his budget, his first since becoming city manager in January.
“Durham is actually dope,” Mayor Leonardo Williams said. “We’re spending $45 million at the federal level to watch a parade go by while people are struggling to make rent. ... In Durham, we’re finding a way with our limited resources to give a dang about our neighbor. That’s dope to me.”
But, Williams added, he’d like to see the city diversify its revenue to pay for more specific needs like fighting gun violence.
“So when you hear me talk about getting more commercial spaces downtown, more retail, a convention center, more hotels, you know, a grocery store, the reason why I’m talking about those things is we have to generate more revenue, diversify our revenue sources so that we don’t have to keep the water rising up,” he said. “We can do this balancing act better.”
Councilman Mark-Anthony Middleton praised the expansion of the HEART program and called the budget a “remarkable achievement.”
“Durham is continually lauded and heralded as one of the best-run cities in this country,” he said. “We do not demure from our values in this budget.”