Durham City Council Approves FY 2021-2022 Budget with 2 Cents Property Tax Increase

Strategic Insights -

The Durham City Council adopted the Fiscal Year 2021-2022 budget, which includes a 2 cents property tax rate increase to fund community safety, affordable housing, green infrastructure projects, and COVID-19 recovery. The total approved budget of $529.7 million reflects a new property tax rate of 55.17 cents per $100 of assessed value. The 2 cents increase will fund various projects, including affordable housing, community safety, and green infrastructure initiatives. The new tax rate generates a City of Durham property tax bill of about $1,291 per year, or about $108 per month on a house valued at the median house value of $233,927.

Key Takeaways:

  • The FY 2021-2022 budget includes a 2 cents property tax rate increase to fund community safety, affordable housing, green infrastructure projects, and COVID-19 recovery.
  • The total approved budget of $529.7 million reflects a new property tax rate of 55.17 cents per $100 of assessed value.
  • 1.38 cents of the 2 cents increase will service the debt for the $95 million Affordable Housing Bond that voters passed in 2019.
  • 0.50 cents will create new capital funding to support green infrastructure projects to be developed through an equity lens.
  • The remaining 0.12 cents will go to the General Fund.
  • The new tax rate generates a City of Durham property tax bill of about $1,291 per year, or about $108 per month on a house valued at the median house value of $233,927.
  • The approved budget also funds the creation of a new Community Safety Department, which will work closely with existing public safety departments.
  • The department will implement pilot projects to explore alternative responses to issues that may not need armed police presence.
  • The City's Forever Home, Durham program will be able to create affordable opportunities for renters and homeowners due to the approved budget.
  • The program will invest a total of $160 million into the City's affordable housing program over several years.
  • The program aims to build 1,600 affordable housing units, preserve 800 rental units, move 1,700 homeless to permanent housing, and more.
  • The approved budget includes $500,000 to support the Durham County Long-Time Homeowner Grant Program.
  • The program will award grants to qualifying recipients to help reduce the amount of their property taxes due.
  • The City will also invest $88 million in upgrading and increasing capacity for water and sewer improvements.
  • A water and sewer rate increase of 3.6% for the average customer and a stormwater rate increase of 51 cents per month are included in the approved budget.
  • The approved budget funds various Capital Improvement Projects, including Fleet Replacement Program, Stormwater projects, and Durham Bulls Athletic Park Upgrades.
  • The budget provides funding for 36 new full-time employees to support the needs of a rapidly growing community.
  • The approved budget also provides City employee compensation, including pay raises, bonuses, and premium pay for essential frontline employees.

Statistics:

  • Total approved budget: $529.7 million
  • New property tax rate: 55.17 cents per $100 of assessed value
  • Median house value: $233,927
  • Property tax bill: about $1,291 per year, or about $108 per month
  • Amount of Affordable Housing Bond: $95 million
  • Total funding for affordable housing: $160 million
  • Number of affordable housing units to be built: 1,600
  • Number of rental units to be preserved: 800
  • Number of homeless people to be moved to permanent housing: 1,700
  • Amount of funding for Durham County Long-Time Homeowner Grant Program: $500,000
  • Water and sewer rate increase: 3.6% for the average customer
  • Stormwater rate increase: 51 cents per month
  • Number of new full-time employees: 36
  • Total funding for Capital Improvement Projects: $55.36 million
  • Amount of American Rescue Plan funding for City employee compensation: $10 million
  • Number of City employees receiving pay raises, bonuses, and premium pay: all employees

Sources:

  • Durham City Council
  • Fiscal Year 2021-2022 Budget
  • HT Media Ltd.
  • SyndiGate Media Inc. ( Syndigate.info )
  • City of Durham Budget and Management Services Department
  • Durham County Office of Tax Administration
  • RTI research