[Durham INC] Proposed City of Durham Budget Reflects Resident, Council Direction

[Blalock, Amy]

CITY OF DURHAM

Office of Public Affairs

101 City Hall Plaza

Durham, NC 27701

 

 

News Release

 

News Media Contact:

Beverly B. Thompson

Director

(919) 560-4123 x 11229

(919) 475-2362 (cell)

Beverly.Thompson at DurhamNC.gov

http://Facebook.com/CityofDurhamNC 

http://Twitter.com/CityofDurhamNC   

 

For Immediate Release: May 21, 2012

 

 

Proposed City Budget Reflects Resident, Council Direction

1-Cent Tax Increase for Housing Fund; Modest Fee Increases

 

DURHAM, N.C.  - With the reassurance from  Durham residents that the
city is "headed in the right direction," according to a recent resident
satisfaction survey, City Manager Tom Bonfield presented his 2012-2013
proposed budget tonight, which included a 1-cent tax increase per $100
of assessed property value. That increase raises the annual taxes for
the owner of a $150,000 home by $15, and brings the total tax rate to
56.75 cents per $100 of assessed value.

 

The new tax, generating about $2.4 million over a year, would create a
dedicated funding source for housing initiatives. "It is essential that
we recognize that federal funding to address housing needs has
decreased, and that we take steps to establish a local and dedicated
funding source to address the variety of housing and neighborhood
revitalization challenges that exist," Bonfield said. A comprehensive
five-year housing plan will be presented during upcoming budget
meetings.

 

Beginning with an overall budget gap of about $3 million, planning the
City's 2012-2013 budget, while challenging, was less onerous than
previous years, thanks to prioritization of programs combined with
guidance from the City's strategic plan and City Council directives,
Bonfield said. "Our focus was clear - priorities and new programs had to
clearly fit and/or support improving the city's economy, community,
neighborhoods, management of the City, and its infrastructure," Bonfield
said.

 

Bonfield recommended a total preliminary budget of $372.7 million, an
increase of a little more than $10 million from last year's budget of
$362.5 million, including a 3.4 percent smaller general fund budget of
$176.6 million as compared to last year's budget for the City's core
services. 

 

Small rate increases for water and sewer volume and service charges
averaging about $1.26 more per month for the average household that uses
about 4,750 gallons per month were also included, along with an average
$5.40 yearly increase for stormwater rates. The water and sewer
increases will support operations and maintenance of water and
wastewater facilities, water pipelines, and infrastructure. Stormwater
fee increases support major capital projects for compliance with state
and federally-mandated environmental regulations for Falls and Jordan
Lakes and other state and U.S. Environmental Protection Agency mandated
water quality standards.

 

Bonfield said that public safety continues to be a major focus of the
City's budget, with this proposed budget funding all sworn law
enforcement positions and a framework to fill vacant positions in a
timely manner.  Special attention will continue for the Operation Bull's
Eye area, with additional overtime dollars allocated to increase police
presence in those areas. Funding is also included to continue the joint
city/county warrant control office, along with money for a domestic
violence judge. Three additional firefighter positions, along with
safety equipment, also are funded.

 

The Capital Improvement Program budget includes $53.4 million for new
projects and to complete current projects. Funding is provided though
impact fees, water and sewer revenues, revenue bonds, stormwater fees,
and program income. Other capital needs, including $500,000 for deferred
maintenance projects, $750,000 for ongoing street resurfacing, and funds
for playground safety are included.

 

With a combination of federal funds and local funds, more than $5.6
million will be allocated for sidewalk improvements and construction in
2013. Additionally, the $9.2 million final phase of the American Tobacco
Trail will begin, including a pedestrian bridge over I-40. 

 

Other budget highlights include:

*         A 2 percent increase for general pay plan employees along with
half-percent increase to employee 401(k) plans.  

*         $400,000 for neighborhood commercial revitalization in
targeted neighborhoods

*         $313,000 for small business and underutilized commercial
properties in downtown

*         $100,000 for a joint city-county disparity study for
compliance with legal guidelines to administer programs to help small
and disadvantaged business.

*         Establishment of Business Improvement District for enhanced
services downtown - funded with a 7 cent tax rate.

 

As economic indicators show that Durham is recovering from the economic
downturn, Bonfield noted that the City continues to maintain excellent
fiscal status with a AAA bond-rating from all three ratings agencies -
achieved by only a few cities nationwide.

 

A June 4 public hearing is scheduled for the preliminary budget during
City Council's regularly scheduled meeting at 7 p.m. Final budget
approval is set for Monday, June 18 at 7 p.m. in City Council Chambers.


 

A copy of the proposed budget is now available on the City's website at 
http://DurhamNC.gov/ich/as/bms/Pages/2012-2013-Preliminary-Budget.aspx,
in the City Clerk's Office on the second floor of City Hall, in the
Budget and Management Services Department on the first floor of City
Hall, and in the main and branch libraries. 

 

To see a copy of the 2011 Resident Satisfaction Survey, visit 
http://DurhamNC.gov/ich/as/bms/Pages/Citizen-Survey-Results.aspx.  

 

About the Budget & Management Services Department

The Budget and Management Services Department is responsible for
preparing, implementing, and monitoring the City's annual operating
budget as well as the five-year revenue/expenditure projections for all
City government services. The department also provides operational and
organizational studies as identified by the City Council, City Manager's
Office, and department staff. Guided by the City's Strategic Plan, which
the department established and maintains, the department helps to ensure
that the City of Durham is a well-managed city by working with City
agencies to build and implement performance measurement monitoring and
evaluation. The department is also responsible for preparing the Capital
Improvement Plan (CIP), coordinating the City's process for petition and
City-initiated annexations, conducting resident satisfaction surveys,
and evaluating departmental achievement of City goals and objectives. To
learn more, visit http://DurhamNC.gov/ich/as/bms/Pages/Home.aspx. 

 

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