Durham City Council approves $772M budget for fiscal year 2025-26; property taxes to rise

DURHAM, N.C. (WTVD) -- The Durham City Council has adopted a $772 million budget for the 2025-2026 fiscal year, focusing on community safety programs, employee compensation, public services, and major infrastructure investments.

The approved budget represents an 8% increase over the previous year, driven by the need to expand public safety programs, keep pace with service demands in a growing city, maintain competitive pay for city employees, and fund long-term capital projects approved by voters.

"We are continuing funding boldly our values, whether it's eviction diversion, whether it's immigrant defense, whether it's guaranteed income, it's in this budget," said Mayor Pro Tempore Mark-Anthony Middleton. "It's public now, so we will see how those things play out down the road, but this budget boldly says that we will continue to be Durham."

The new property tax rate will be 43.71 cents per $100 of assessed property value. This marks an increase of 5.48 cents over the revenue-neutral rate of 38.23 cents. For a home valued at Durham's median of $415,000, the new annual City property tax bill will be about $1,814. That's on top of the property tax rate increase already approved by Durham County Commissioners.

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A key focus of the budget is community safety. It funds 17 new full-time positions in the Community Safety Department to expand the HEART response team, which provides non-police crisis response services. It also continues support for the Durham Expunction and Restoration (DEAR) program, which helps residents clear past criminal charges and reinstate driver's licenses. The budget also provides funding for the Eviction Diversion Program, which helps low-income renters remain in their homes.

Durham will also raise the minimum wage from $19.58 to $21.90 per hour and increase overall pay. City officials said they want to remain competitive in the job market.

In public services, the budget extends fare-free rides on GoDurham buses through June 2026 and dedicates $17 million to expanding bus service. It also sets aside $500,000 for Vision Zero safety initiatives, which aim to eliminate serious and fatal traffic crashes.

"Getting to and from work, or getting to and from across our city, should not be a barrier," said Durham Mayor Leonardo Williams.

Infrastructure is a major priority in this budget as well. The City's Capital Improvement Plan allocates $537.6 million for more than 70 projects. Among the largest investments are $25.7 million for stormwater upgrades and flood mitigation efforts, including restoration of South Ellerbe Creek, and $315.7 million for water and sewer system improvements. This includes ongoing work at the Jordan Lake Water Treatment Plant. Modest increases in water and sewer rates, approved earlier this spring, will help fund these essential upgrades.

In parks and recreation, the budget adds $7 million for lead soil remediation at East Durham, East End, Lyon, Northgate, and Walltown parks, bringing total funding for cleanup efforts to $12 million. It also supports park maintenance with six new staff members and nearly $400,000 in additional resources. Major projects funded through the Connect Durham bond include a $43 million aquatic center at Merrick-Moore Park and a $42 million greenway connection between Long Meadow and East End parks.

"I'm so sick and tired of Cary and Raleigh talking about their nice parks, I want nice parks, and I don't want just a new park, I want a nice park and those things are expensive," Williams said.

Durham is also ramping up investment in its streets and sidewalks, thanks to the $115 million Connect Durham bond approved by voters last fall. The budget includes $25 million for street repaving, up from $15 million last year-and $10 million for sidewalk repairs, a significant increase from the previous $2 million allocation. Additional funding includes $1.2 million to complete the design for converting North Mangum and North Roxboro streets to two-way traffic, $1.5 million for new traffic signals, and $1.3 million to enhance safety in school zones and trail crossings. Pedestrian signal upgrades will receive $875,500, while neighborhood bike routes are set to receive more than $348,000. Another $200,000 will go toward bike and pedestrian improvements along Carpenter-Fletcher Road.

For a closer look at the full budget, click here.