INC NEWS - Skyrocketing Fuel Cost, Employee Retention Drive Durham FY 08-09 Budget

[Blalock, Amy]

CITY OF DURHAM

Office of Public Affairs

101 City Hall Plaza

Durham, NC 27701

 

 

News Release

 

For Details, Contact:

Beverly B. Thompson

Public Affairs Director

(919) 560-4123 x 229

(919) 475-2362 (cell)

Beverly.Thompson at durhamnc.gov <mailto:Beverly.Thompson at durhamnc.gov> 

 

For Immediate Release:  June 17, 2008

 

Skyrocketing Fuel Cost, Employee Retention Drive FY 08-09 Budget

New Tax Rate Set at 54 Cents

 

Durham, N.C. - Durham City Council members voted last night to approve
the 2008-2009 budget, setting the tax rate 54 cents, to help meet
pressing City and community needs driven mostly by current market
conditions.  

 

Priorities included ensuring adequate funds for projected fuel increases
and market- rate pay increases for some City staff, including police and
fire staff, debt payment related to the 2005 and 2007 bond referenda.
Also taken into account is an expected decrease in revenues, including
sales taxes, business license fees and other investment income due to
the slowing economy.

 

To help close the gap needed to keep the new tax rate as low as possible
while still maintaining or improving City services, Council voted to use
roughly $4.5 million of the City's fund balance or "rainy day" fund,
reducing it from 12 to 11 percent. The new tax rate is an 8 percent
increase to the 50.05 cent tax rate following last year's property
revaluation, meaning that the owner of a $200,000 home will see a
monthly tax increase of $6.58, or $79 annually.

 

The FY 2008-09 budget totals $355.5 million, which is $17.2 million
higher than last year's adopted budget.  The amount includes:  a general
fund budget of $215,961,054, which funds most core City services, a 12.6
percent increase in property tax revenue as a result of the property
revaluation, plus a six percent decrease in sales tax revenue prompted
mostly by a new revenue sharing agreement with Durham county and
economic uncertainties.  The new budget also includes increases in
planning fees and water rates.

 

According to City Manager Patrick Baker, the approved budget contains an
additional $2.5 million to pay for projected fuel costs, and nearly $3.5
million to bring some City employees' pay in line with the current
market rates.  The new pay plan will not start until October 2008, and
while it will not affect all City employees, it will provide increases
to sworn police and fire staff to promote retention.

 

Other highlights:

*         Neighborhood Improvement:  Funding was approved for two code
enforcement officers to focus on commercial property; and nearly $1
million was earmarked for neighborhood revitalization and for
infrastructure improvements in targeted neighborhood commercial
districts.

 

*         Public Safety:  Police, Fire and Emergency Communications
(911) departmental budgets were increased to help them recruit and
retain an experienced workforce.  Funding will maintain the police force
at 506 sworn officers, and authorizes the hiring of up to 20 additional
officers when the 24 current vacancies are filled.   Construction will
also begin on two new fire stations, on Snowhill Road and in the
northeast section of the city, near Camden Avenue.

 

*         Improving Development Review:  The City/County Planning
Department will be reorganized and five new staff hired to help reduce
the time to review development projects.  In addition, both the
City/County Planning Department and the City's Department of Public
Works will each receive additional staff to better meet customer demands
for prompt service.  These new positions will be supported by fee
increases effective January 1, 2009.

 

*          Garbage Collection:  Current solid waste, recycling and yard
waste collection services are maintained at their current levels, with
bulky item collection changing to once per month collection.  New yard
waste collection customers will be charged a $1.50 rental fee for carts,
with a maximum of four carts per household.  Additionally, the yard
waste fleet will be expanded, with three trucks and employees.  To meet
commercial and residential needs, 20 roll-off containers (which hold
about 10 full-size pickup truck loads) will be purchased to supplement
yard waste and bulky item collection.

 

Using 2005 and 2007 General Obligation Bonds (GO) and other funds, the
City's Department of Public Works will continue to resurface many
deteriorating streets and pave dirt streets throughout the city.  Baker
advised the Council that to continue progress, another bond referendum
will be needed in November 2009 for additional improvements and $5
million annually to maintain Durham's streets after 2009.

 

Council also approved the FY 2009-2014 Capital Improvement Program, with
the primary focus to complete projects already approved and under way,
in addition to $91.1 million in new projects.  Many of those projects
were included in past bond referenda for streets, sidewalks, water and
sewer, parks and recreation, public facilities and other improvements in
the city. 

 

At last night's meeting, Council members also approved a second contract
with MWH Americas, Inc., which recently completed an analysis of the
City's Capital Improvement Program, while assisting with program
management for City bond projects over the last few months.  According
to Baker, this second agreement allows the City to manage more projects
simultaneously and help finish the projects earlier, equating to a
significant savings for the City due to unprecedented rising
construction costs. 

 

Other highlights include:

*         Funding 36 non-profit agencies to provide arts, public safety,
youth programs, community development and other activities at a total of
$825,856.

 

*         Paying for a 7.6 percent increase in employer-paid health
insurance benefits, as well as a 5 percent increase in dental health
costs and a 5 percent increase in mental health costs, all effective
September 2008 with employees sharing the increases proportionately.

 

*         More programs and reopening facilities for youth through the
City's Parks and Recreation Department at Lyon Park and Walltown
Recreation Center.  Additional funding is included for the Youth
Employed and Succeeding (YES) Program to address student drop-out rates.

 

Copies of the final budget will be available by July 1, 2008 on the
City's Web site at www.durhamnc.gov, at the City Clerk's Office at City
Hall, and the City's Department of Budget and Management Services,
located on the first floor City Hall and at the Durham County Library.

 

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