[Durham INC] Durham Approves Property Tax Increase for FY11-12 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

Director

(919) 560-4123 x 11229

(919) 475-2362 (cell)

Beverly.Thompson at DurhamNC.gov

 

 

 

 

For Immediate Release: June 21, 2011

 

 

 

Durham Approves Modest Tax Increase for FY 2011-2012 Budget

Balanced Budget Includes Property Tax Increase for General Fund Debt
with No Impact on Core Services

 

DURHAM, N.C. - Last night, the Durham City Council approved the Fiscal
Year 2011-2012 Budget, which includes a 0.56-cent property tax increase
per $100 of assessed value, increasing the total property tax rate to
55.75 cents per $100 of assessed value. This tax rate increase on a
house valued at $150,000 increases the annual tax bill by $8.40. The tax
rate increase is for general fund debt service and is in addition to a
small number of other increases in various rates and fees.

 

The total budget for fiscal year 2011-12 is $362.5 million, which is
about $9.1 million or 2.6 percent higher than last year's budget,
including a 11 percent smaller general fund budget of $182.8 million as
compared to last year's budget for the City's core services. The
majority of the decrease is due to the creation of debt service and
solid waste funds to more clearly account for these two activities.  

 

The final budget also includes a 2 percent salary increase for general
pay plan employees, reinstates police pay plans from between 3 percent
and 5 percent, reinstates fire pay plans to 3 percent, and restores 1
percent to general and fire employee 401(k) plans. Although 10 positions
were eliminated in this budget, 21 positions are now new or unfrozen
from last year's budget, many of which are in the City's Water
Management Department. Also funded is a new Human Resources position to
manage the City's employee health fund, which insures more than 5,100
lives, to help minimize costs and improve employee and dependent health.

 

The budget also maintains the City's fund balance reserves at 12.5
percent, a little higher than recommended by the City Council. About
$360,000 of the overage will be used for one-time expenditures.

 

The City is also continuing its focus on rejuvenating neighborhoods,
allocating $500,000 for commercial revitalization to enhance the tax
base, create jobs, and reduce poverty and crime, and allocating $255,000
toward downtown improvements with building improvement grants and
Parrish Street preservation. To help improve neighborhoods, several
programs, including enhanced code enforcement to identify the
community's "worst condition" houses for a three-year remediation plan
and other data-driven projects are funded to encourage redevelopment and
revitalization.

 

The capital improvement budget includes $50.5 million for new projects
and to complete existing projects, including water and sewer
infrastructure improvement projects which are funded at $36 million. 

 

Other highlights of the FY 2011-2012 Budget include:

*          $500,000 for deferred maintenance.

*         $500,000 for street repaving as recommended during the 2010
bond referendum.

*         All police department sworn positions are fully funded.

*         Funding for Warrant Control Office and a domestic violence
judge.

*         An average rate increase of 4.7 percent for water and sewer
rates, costing the average household an additional $2.30 per month.

*         A stormwater rate increase averaging 8.5 percent, costing
homeowners an additional $2.40 to $10.08 yearly depending on the tier.

*         Funding for public safety - fire department, police
department, and emergency communications needs - totaling more than $78
million.

 

A copy of the final budget is now available on the City's website at 
www.DurhamNC.gov/Departments/BMS/1112_budget/1112_budget_singlefile.pdf,
and at office of the City's Budget and Management Services Department,
which is located on the first floor of City Hall, 101 City Hall Plaza,
Durham.

 

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