INC NEWS - Durham City Manager’s Proposed Budget

[RW Pickle]

A press release from the Public Affairs Office of the City.
RWP
27 Beverly

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One Cent Tax for Voter-Approved Bond Projects and Minor Fee Increases
Proposed


Durham, N.C. – “Staying the course” is theme for Durham City Manager
Patrick Baker’s preliminary 2007-2008 Fiscal Year Budget that was
presented at tonight’s Durham City Council meeting.  Baker said this
year’s proposed budget, with a one cent tax increase for bond projects and
other minor fee increases, allows the City to continue to address many
areas that have been neglected over the years.

“Reducing crime and addressing its root causes, maintaining core services
and continuing capital and building projects overwhelmingly approved by
voters in 2005 are at the heart of my budget proposal this year,” Baker
said.  The one-cent property tax increase will pay for debt service
requirements from funds spent over the past year for capital and building
projects included in a $110 million general obligation bond referendum in
2005.

This year’s preliminary budget totals $337.1 million, which is $5.5
million lower than last year’s budget.  The amount includes: a general
fund budget of $202.6 million, which funds most core city services, a 3
percent projected increase in property tax revenue due to growth, plus a
4.5 percent growth in sales tax revenue.  The budget also maintains 12
percent of the City’s budget in a rainy day fund (fund balance) and
includes minor increases in other fees and charges to improve services.

The one cent tax increase raises the City’s property tax to 61.3 cents per
$100 of valuation, costing the owner of a $150,000 home an extra $1.25
monthly.  Other increases include a $5.76 bi-monthly water and sewer fee
increase to meet mandatory regulatory requirements and to cover operating
expenses; water and sewer capital facility fee increase for new
development; minor changes to parks and recreation fees, while maintaining
the sliding scale for programs; a $30 monthly motorcycle parking rate
addition; and other development fee increases for permits and construction
and regulatory review.

Citing continued reduction in crime as well as hiring and retaining City
employees as two of his highest priorities, Baker increased the Police,
Fire and Emergency Communications (9-1-1) Departments’ budgets by $3.4
million to help these public safety departments recruit and retain an
experienced workforce.  Baker said this funding will bring the sworn
police force to 506 personnel and fund four police academies.  Currently,
the officer vacancy rate is only 1 percent, down from 5 percent three
years ago.  Also, building on last year’s expansion of the Police
Department’s Forensics Division, this year’s budget includes funding for
six crime scene investigators and other forensics staff to allow for more
advanced crime investigations.

Also included is funding for Fire Station 15, a new station in northern
Durham, and funding to replace Fire Station 9.  A spring Fire Academy is
also funded to hire 12 to 15 trainees to fill vacancies in the spring. 
Emergency Communications (9-1-1) also plans to hire an additional eight
telecommunicators as well as the installation of a Next Generation 9-1-1
system.  Funding has also been provided to replace a 20-year-old
Interoperability Software to better allow for communication between
Durham, state of North Carolina and United States emergency management
agencies.

 

Baker also emphasized the City’s efforts toward providing preventive youth
programs, combining the efforts of several departments and local
non-profits to ensure that Durham youth have access to a wide spectrum of
support services.  Examples of these programs are the Mayor’s Summer Youth
Works Program, after school and summer camp programs at three Durham
Housing Authority sites, extended operational hours at neighborhood
centers and an implemented Youth Crime Watch program, which is currently
being piloted in three recreation centers.

Baker’s proposed budget also addresses helping distressed neighborhoods
with funding for continuing the Code Enforcement Nuisance Abatement Teams.
 His budget also includes doubling “set-aside” funds for neighborhood
improvements to continue the existing momentum supporting public-private
partnerships to revitalize targeted neighborhoods as well as increased
funds for demolition of unsafe houses, clean-up of weedy lots and
abandoned vehicles.

Baker’s proposed budget also addresses the City’s core services by
focusing on the funding needs to maintain basic service levels for
services such as sidewalks, transit, development review, construction of
capital projects and water, sewer and stormwater systems.   In his
proposed budget, two additional street maintenance crews will be funded to
address non-resurfacing repairs, patching and pothole work and improve
service request completion.  His budget also includes the addition of a
regular inspection program of stormwater infrastructure and a conditions
modeler for regulatory compliance.  Baker’s budget also addresses the need
to replace older, higher emission vehicles with newer, lower emission
vehicles through the City’s new fleet replacement program, in addition to
five hybrid buses for Durham Area Transit Authority (DATA). 

To maintain basic services and improve the City’s safety, capacity and
accountability, Baker is recommending increasing the City’s work force by
59 full time positions, with additional police, emergency communications,
public works, parks and recreation, and financial staff.  “Even though we
are providing more service to a larger city population, the total number
of employees per capita has remained relatively unchanged for the last
several years,” Baker said.

Baker noted that the City continues to maintain its excellent fiscal
status as evidenced by three areas:  A continuing AAA bond rating by all
three rating agencies, the highest measure of financial security and one
attained by only 24 of the nation’s more than 22,500 cities; unqualified
opinions by independentauditors of the City’s financial statements and
compliance with major federal and state grants; and a strong Audit
Services Department, ensuring compliance with applicable laws, policies
and procedures. 

Baker also emphasized that the City is focused on continued implementation
of the 2005 Bond Program, with work proceeding on much-needed street,
water and sewer, parks and recreation facilities and improvements
throughout the city.   The FY 2008 capital improvement budget features
$51.7 million in new projects, which include: 

•          $35.4 million water and sewer improvements

•          $5.9 million public safety projects

•          $3.8 million parks projects

•          $3.3 million stormwater improvements

•          $2.3 million general services projects

•          $550,000 transportation projects

•          $419,000 technology projects


Other highlights of the 2007-08 budget include:

•          Funding 37 non-profit agencies to provide arts, public safety,
youth programs, community development and other activities at a total of
$1.55 million.

•          Paying for an 8.9 percent increase in employer-paid health
insurance benefits, as well as a 6 percent increase in dental health costs
and a 9 percent increase in mental health costs, all effective September
2007 with employees sharing the increases proportionately. 

A public hearing is scheduled for Monday, June 4, 2007, at 7 p.m. in City
Council Chambers at Durham City Hall, 101 City Hall Plaza.  Final budget
approval is set for the Monday, June 18, 2007 Council meeting.  Copies of
the proposed budget are available on the internet at
http://www.durhamnc.gov/departments/bms/budget_Index.dfm, at the Durham
County Library, the Durham City Clerk’s Office and the City’s Department
of Budget and Management Services Office, located on the fourth floor of
City Hall