[Durham INC] Proposed Budget Increases Property Tax to Cover Debt, Public Safety

Mon May 19 19:45:03 EDT 2014

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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<mailto:Beverly.Thompson at DurhamNC.gov>
http://Facebook.com/CityofDurhamNC
http://Twitter.com/CityofDurhamNC
http://YouTube.com/CityofDurhamNC

For Immediate Release: May 19, 2014

Share!  City of Durham proposed budget increases property tax to cover debt & public safety; http://bit.ly/1qQmeEy

Proposed Budget Increases Property Tax to Cover Debt, Public Safety
June 2 E-Town Hall for Public Participation Announced

DURHAM, N.C. - Building on the anticipation of fiber-based broadband possibly coming to Durham, City Manager Tom Bonfield presented the FY 2014-15 preliminary budget tonight. The budget includes a 1.29 cents tax increase on every $100 of assessed property value for voter-approved debt and public safety.

"This year's budget is pretty straight-forward, but reflects a lot of time, thought and effort by everyone, including City Council, staff and the public," Bonfield said. "Gathering information, creating partnerships, and implementation are key steps to preparing a budget to meet so many needs. Those steps were similar to the City's preparation for companies interested in providing fiber to Durham and other Triangle cities, which is why we chose the Fiber-Ready Checklist/Budget-Ready Checklist theme."

Bonfield said that the FY 2014-15 budget, like proposed fiber, propels the city forward with increased "connectivity, cooperation, collaboration, innovation and inclusion, while meeting community priorities."

Bonfield recommends a total preliminary budget for FY 2014-15 of $386.7 million, a 2.7 percent increase from last year's budget, and includes a $173.6 million budget for services covered by the general fund. The 1.29 cent property tax increase is needed for voter-approved debt service costs from previous bonds and to cover 16 police officers and 15 firefighters' salaries that had been paid by recently expired federal grants. The tax bill for the owner of a $150,000 home would rise by $19.35.

The street resurfacing fund is recommended to receive a $250,000 boost, increasing the fund to $1 million.  "This was a priority for supporters of the previous street bond," Bonfield said. "Improving streets continues to be a top priority for residents, according to the latest resident satisfaction survey."

While five positions (four filled) were recommended for elimination, eight new positions are being added for Water Management, Public Works and Human Resources departments. A key challenge is finding efficiencies in the Solid Waste Management Department, which continues to require a significant subsidy from the general fund, Bonfield said.  Although increases are recommended for yard waste and tipping fees, other operational efficiencies were needed. Code enforcement will now be done on a reactive basis, enabling the department to eliminate two positions. Also, recycling and waste diversion outreach activities now performed by one position will be absorbed by other positions in the department.

Bonfield also recommended that the City return to its differentiated pay-for-performance plan, rewarding employees according to their performance. While the average increase will be 3 percent for general pay plan employees, police and fire pay plan employees will receive an average 3.5 percent increase.  Although health care premiums remained constant, dental premiums increased slightly.

Other fee changes included water and sewer and stormwater rate increases that were previously presented to Council at its May 8 work session, and approved during tonight's meeting.

The FY 2014-2020 Capital Improvement Plan (CIP) budget contains a little more than $93 million, including $44 million for the new Police Headquarters, $7 million for fire equipment and Fire Station #17, and $4.2 million for park upgrades, and $20.5 million for water and sewer improvements. CIP funding is provided through impact fees, water and sewer revenues, revenue bonds, stormwater fees, and program income.
Other highlights include:
*         $500,000 for deferred maintenance (CIP)
*         $6 million for fleet vehicles (CIP)
*         $254,000 for Administrative Office of the Courts contracts
*         $1.7 million for public arts & 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 fund balance reserves at 13.5 percent for FY 2015 year-end, with $440,000 of these funds to be used for one-time expenditures, including a Web 2.0 to increase resident engagement. The City continues to maintain excellent fiscal status with a AAA bond-rating from all three ratings agency - achieved by only a few of nation's more than 22,500 cities.

To encourage resident feedback, the 2nd annual E-Town Hall will be held on Monday, June 2 at 7 p.m. during the regularly scheduled City Council Meeting. "We are asking residents to send us their thoughts and questions now that they've heard the 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, aired on DTN and on the City's website."

A public hearing is also scheduled for the preliminary budget for Monday, June 2 with final budget approval set for Monday, June 16 at 7 p.m. in the City Council Chambers.

To review the entire proposed budget, visit http://durhamnc.gov/ich/as/bms/Pages/2014-2015_Preliminary_Budget.aspx. Copies may also be reviewed in the City Clerk's Office and the City's Budget and Management Services Department at 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), 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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