Durham city budget passes. What it includes, and why tax increases may continue

DURHAM

Durham residents will see an increase in their property tax bills and city employees will receive raises after the Durham City Council unanimously approved a new budget Monday.

“They’re going to get a big old fat paycheck increase, and they deserve it,” council member Javiera Caballero said.

City Manager Wanda Page has called the budget “the right thing to do.”

The city property tax rate will increase 3.85 cents, to 59.62 cents per $100 of assessed property value.

Here’s what is included in the $668 million budget, up 9.5% since last year, according to Page:

• $28.5 million for raises, increasing the minimum livable wage for city workers to $19.58 per hour from $18.46
• $16.4 million for affordable housing investments
• $14.9 million to expand GoDurham bus services and keep them fare-free
• $12.5 million for parks, trails and open spaces
• $5 million to begin lead cleanup in city parks that once housed trash incinerators
• $4.7 million for sustainability projects to help the city reach its climate goals
• $4 million for street maintenance
• $1 million for a guaranteed income program following up on a 2022 pilot
• $1 million to support the Hayti Reborn Justice Movement, which is working to address gun violence
• $650,000 to support Legal Aid’s eviction diversion program and $250,000 for Justice Matters’ immigrant legal defense

It is the first budget approved under Mayor Leonardo Williams.

“I didn’t get everything I wanted, but I got enough that makes me feel good about where we are,” Williams said, adding that he’ll continue to push for more money to address gun violence.

Monday night’s vote, at 8:40 p.m., was unanimous.

“This is a budget I think, Madam Manager, we can be proud of,” Mayor Pro Tem Mark-Anthony Middleton said.

Tax increases add up

With the 4.65-cent tax rate increase passed last week by county commissioners, the tax rate for residents inside the city limits will rise 8.5 cents to $1.3949 per $100 of assessed property value.

For a $400,000 house, the median sales price this year, the city increase adds $154 and the county increase $186 to the annual tax bill, which would total $5,580. Residents can check the impact on their property online.

Further worrying some council members, a reappraisal looms next year. The county tax assessor will decide new property values for the first time since 2019, further driving up costs for most homeowners.

Caballero said they’ve been foreshadowing a tax increase since last year’s “very contentious” 4-3 vote.

“This budget does raise property taxes, and it does so for a very, very good reason,” council member Nate Baker said.

In the November election, voters will be asked to support another tax increase in the form of a $200 million bond referendum:

• $115 million for streets and sidewalks
• $85 million for parks

The bond would raise taxes 3.45 cents per $100 of assessed value starting in 2026 and slowly dropping off over 20 years.

This story was originally published June 17, 2024, 9:01 PM.