[Durham INC] Durham's Proposed Budget Maintains Services with No Property Tax Increase

Mon May 20 19:54:22 EDT 2013

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) 475-7735 (cell)

Beverly.Thompson at DurhamNC.gov 

http://Facebook.com/CityofDurhamNC 

http://Twitter.com/CityofDurhamNC    

For Immediate Release: May 20, 2013

Proposed Budget Maintains Services with No Property Tax Increase

New Solid Waste Fee Proposed for Capital Needs

New E-Town Hall Event Announced

DURHAM, N.C. - Comparing the development of the City's annual budget and
its menu of options to Durham's recent accolade as the "Tastiest Town in
the South," City Manager Thomas Bonfield presented the FY 2013-14
preliminary budget - which includes no property tax increase - keeping
the current tax rate at 56.75 cents per $100 of assessed property value.

"I thought the Tastiest Town theme and all the words to describe it were
analogous to developing a budget." Bonfield said.  "Is it sustainable -
that is, can it meet community needs for the long haul? Is it
affordable? Do we have the resources to pay for our needs and wants? Is
there diversity - does it contain something for everyone. Is it healthy?
Does the budget contain the right ingredients for proper development and
growth?  As much as we would like some of everything on the menu, how do
we select what ends up on our plate? This proposed budget illustrates a
varied menu that meets many of our community's needs and wants." 

Bonfield stressed how the City's strategic plan goals continue to help
prioritize programs and service levels residents want and expect, along
with a better understanding of resources necessary to provide them. Key
among the City's goals is being a well-managed city, which, according to
Bonfield, encompasses many factors included in the budget - tax rates,
debt load, bond ratings, fund balance, utility rates, and resident and
employee satisfaction.

Bonfield recommended a total preliminary budget for fiscal year 2013-14
of $381 million, about $7.8 million or a little more than 2 percent
higher than last year's budget, including a 4 percent smaller general
fund budget of $169.6 million as compared to last year's budget for the
City's core services. This decrease represents the establishment of a
special revenue fund for last year's penny tax increase for housing and
moving other property tax revenue into dedicated funds primarily for
debt service and transit.

While 16 positions, four of which are filled, were recommended for
elimination, this year's budget maintains city services and programs at
comparable levels as last year. Public Safety continues to be a top
priority with all sworn positions being fully funded. Also, new
technology is funded for police and emergency response vehicles to
maintain access to criminal information and to decrease emergency
response time. The City proposes to continue sharing costs with the
County for a gang reduction initiative strategy and the warrant control
office. Funding for three new positions is recommended for the police
department's forensics unit to improve crime analysis.  

Other fees or increases include a monthly $1.50 monthly solid waste
collection fee for capital needs; a $10 per month parking fee increase
for parking lots and decks; multi-day transit fare fees increases; a $1
special event parking increase; and water and sewer and stormwater rate
increases that were already approved by Council at its May 6, 2013
meeting.

Bonfield also recommended a 2 percent increase for general pay plan
employees meeting performance expectations, and a 3-to-5 percent
increase for police and fire pay plans. Although health care premiums
remained constant, dental premiums increased slightly.  

The Capital Improvement Plan (CIP) budget contains nearly $53 million,
including $26 million for water and sewer infrastructure, for new
projects, and to complete existing projects. CIP funding is provided
through impact fees, water and sewer revenues, revenue bonds, stormwater
fees, and program income. 

Other highlights of the FY 2013-2014 Proposed Budget include:

*         $500,000 for deferred maintenance

*         $750,000 for street repaving 

*         $64,000 for street lighting

*         $141,000 for forensic accreditation

*         $75,000 for youth opportunity initiative

*         $6 million for solid waste, stormwater and water management
fleet

*         $1.6 million for arts and culture including the Carolina
Theatre, Durham Arts Council, St. Joseph's Historic Foundation, American
Dance Festival, Full Frame Documentary Film Festival, Durham Blues
Festival, and other public art initiatives

The budget also maintains the City's fund balance reserves, or rainy day
fund, at a little more than 12 percent with $300,000 of these funds to
be used for one-time expenditures. Bonfield noted that despite
challenging economic conditions, the City continues to maintain
excellent fiscal status with a AAA bond-rating from all three ratings
agency - achieved by only 38 of the nation's more than 22,500 cities.

New for this year, an E-Town Hall event will be held on Monday, June 3
at 7 p.m. during the regularly scheduled City Council Meeting. "We are
asking our residents to send us their thoughts and questions now that
they've heard our proposal," Bonfield said. "Comments and questions can
be sent in a number of ways - by email, on the City's Facebook page or
Twitter feed, and even by video submission on the City's YouTube
channel. Then, we'll respond to as many comments and answer as many
questions as we can during our live E-Town Hall which will be aired on
DTV8 and on the City's website." 

A public hearing is also scheduled for the preliminary budget for
Monday, June 3 with final budget approval set for Monday, June 17 at 7
p.m. in the City Council Chambers. 

To review the entire proposed budget, visit 
http://durhamnc.gov/ich/as/bms/Pages/2013-2014_Preliminary_Budget.aspx.
Copies can also be reviewed in the City Clerk's Office and in the City's
Budget and Management Services Department, which are both located inside
City Hall.

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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