See Gov: Highlights of Durham City Council from May 19, 2025

Proposed City Budget Funds Many Priorities, Relies on 14% Tax Hike

The council reviewed a $722 million budget proposal featuring a 14% property tax rate increase over the revenue neutral rate. Highlights include expanded community safety, higher city wages, major infrastructure investments, and a call for public input on both spending and potential reductions. 12mins

Budget Public Works & Utilities Staff Taxes Transportation & Mobility

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Original Meeting

Durham City Council on YouTube

Monday, May 19th, 2025

11787.0

Full Meeting on YouTube

Video Notes

Welcome to the Durham City Council meeting for May 19, 2025.

To view the meeting agenda, visit http://DurhamNC.gov/AgendaCenter.

PLEASE NOTE: Comments left on this livestream will not be read or entered into the meeting record.

For details on how to participate, visit https://www.durhamnc.gov/1345

To contact City Council members directly, visit https://www.durhamnc.gov/1323

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Alex Rosen

Durham, North Carolina

As the Executive Director of See Gov, I focus on how to best achieve our mission of expanding thoughtful and consistent participation in democracy. I develop See Gov's technology, work to grow our impact, and find ways to sustain our nonprofit. I live in Durham, NC and make highlight reels for Durham and other See Gov pilot communities.

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In This Video

City Manager Ferguson presented the proposed budget for fiscal year 25-26, highlighting increased property tax revenue from higher property values, but also noting challenges from declining sales and occupancy tax revenues and rising costs.
City Manager Ferguson explained the proposed property tax changes following property revaluation, detailed its impact on a typical homeowner, and described how additional revenue would support bond debt payments and core city services.
City Manager Ferguson outlined how additional revenue from the proposed tax rate and water and sewer rate increases would support core services, competitive staff pay, community safety initiatives, and address rising costs.
City Manager Ferguson explained that the proposed water and sewer rate increase was needed to address rising operational costs and infrastructure investments.
City Manager Ferguson reported that the city maintained a AAA bond rating from all major agencies, enabling lower borrowing costs for major projects.
City Manager Ferguson identified community safety, employee support, service delivery, and infrastructure as the four major priorities guiding the budget decisions.
City Manager Ferguson proposed expanding the HEART program and Community Safety Department, recommending additional positions and prioritizing increased daytime crisis response capacity to address more nonviolent 911 calls and support housing stability.
City Manager Ferguson described proposed employee compensation adjustments, including a market-based pay increase, continued pay-for-performance raises, and an increase in the city's minimum livable wage, while noting positive trends in turnover and vacancy rates.
City Manager Ferguson announced an increase in the city's minimum livable wage to $21.90 per hour and outlined the addition of 42 new positions across various departments in the proposed budget.
City Manager Ferguson highlighted a $315.7 million investment in water and sewer infrastructure, including the Jordan Lake Water Treatment Plant and major system upgrades to support Durham's long-term needs.
City Manager Ferguson emphasized the continued commitment to fare-free GO Durham bus service, announced new positions for bus rapid transit planning, and highlighted $537.6 million in proposed capital improvement projects.
City Manager Ferguson described budget allocations for safer streets and detailed $12 million in funding to address lead and soil contamination at five city parks, with efforts underway to reopen them safely.
City Manager Ferguson described how bond funding would expand street repaving and sidewalk repair programs, enabling construction of new sidewalks, repairs to existing ones, paving of unpaved streets, and accelerated street maintenance.
City Manager Ferguson announced upcoming budget work sessions and a public hearing, and shared that the full proposed budget was available online for public review.
City Manager Ferguson summarized the proposed budget's focus on community safety, employee support, service delivery, and infrastructure, and encouraged residents to learn more through city resources.
Council Member Freeman encouraged residents to provide input on potential budget reductions as well as funding priorities, emphasizing the importance of community feedback in the decision-making process.

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