{"id":2594,"date":"2026-06-16T21:35:25","date_gmt":"2026-06-16T21:35:25","guid":{"rendered":"https:\/\/durhammovinghub.com\/?p=2594"},"modified":"2026-06-16T21:35:25","modified_gmt":"2026-06-16T21:35:25","slug":"durham-passes-city-budget-after-corporate-revenue-drain-whats-out-and-back-in","status":"publish","type":"post","link":"https:\/\/durhammovinghub.com\/?p=2594","title":{"rendered":"Durham passes city budget after corporate revenue drain. What\u2019s out, and back in."},"content":{"rendered":"

AI-generated summary reviewed by our newsroom.<\/p>\n

Read our AI Policy.<\/a><\/p>\n

The Durham City Council unanimously adopted a $767 million budget Monday night, but not before council members expressed the difficulty of their decision.<\/p>\n

Read more National chain is closing 2 NC stores, including one in Triangle. What we know<\/a><\/p>\n

The final spending plan avoided a property tax rate increase but required compromises, including capping city employee pay raises at 2%.<\/p>\n

Council members pointed to the strain of corporate property tax appeals that left the city with about a $9 million budget hole, alongside a nearly $10 million loss for Durham County. Commercial property owners, driven by corporate apartment developers, were responsible for 93% of a $4.4 billion loss in the tax base after the recent property revaluation process, INDY Week reported last week<\/a>.<\/p>\n

The multi-million dollar revenue loss caused the city to cut its standard pay-for-performance merit program for city workers.<\/p>\n

\u201cWhat I can say out of this very tough and difficult budget, I think that we\u2019ve put the best version of it forth,\u201d Mayor Leo Williams said. \u201cWe\u2019ve made some really tough decisions, we\u2019ve made some serious cuts, we have somehow found miracle money or miracle allocations to still make things whole … there are still some tough conversations that we still have to have.\u201d<\/p>\n

The City Council held the property tax rate steady at 43.71 cents per $100 of assessed value.<\/p>\n

For a median home value of about $424,000 in Durham, the annual city tax bill will remain about $1,853.<\/p>\n

However, homeowners in the city will also pay a countywide tax rate that is 2.5 cents higher than last year\u2019s, bringing the new rate to 57.92 cents per $100 of assessed value. So, the owner of a home valued at $400,000 (about the median price in the county) will see a county property tax bill of $2,316.<\/p>\n

The Durham County commissioners approved the county\u2019s $1 billion<\/a> budget on June 8.<\/p>\n

Durham homeowners will also absorb secondary costs, including a $12 increase in water and sewer bills driven by rising utility infrastructure demands.<\/p>\n

City workers will see a 2% pay increase, and the city\u2019s minimum livable wage was increased to $25.09 an hour.<\/p>\n

\u201cWe know that property taxes marginally affect lower-income residents more than higher income [residents],\u201d Councilman Carl Rist said. \u201cThe budget is not perfect. My biggest regret is the fact that we can only give the 2% raise to our employees.\u201d<\/p>\n

During a June 4 work session, the council members directed city staff to restore funding to community agencies cut from the budget and to restore funding for a contract supporting staff in the District Attorney\u2019s Office.<\/p>\n

Read more Carolina Hurricanes give NC State marketing students an education in merchandise<\/a><\/p>\n

Satana Deberry, the county\u2019s district attorney, wrote a letter to the council<\/a>, saying the cut in funding would eliminate two assistant district attorneys. Residents and legal advocates also pushed the council consider continued funds<\/a> to a partnership with Legal Aid of N.C.<\/p>\n

City documents show the final budget restored, or partly restored, funding of $770,557, including:<\/p>\n

The budget also adds one-time additions of $172 million, which includes funding for a crossing guard pilot program, a one-hour free parking pilot program<\/a>, Guaranteed Basic Income funding, and funds for a Justice Matters contract.<\/p>\n

The budget also keeps city buses fare-free another year and earmarks $3.9 million for the city\u2019s 5-year plan to reduce homelessness.<\/p>\n

The budget played out against a backdrop of resident frustration over affordability, public safety and how the city should prioritize services as costs rise. Leslie St. Dre, an advocate with the environmental organization Community Land and Power, said the budget should \u201cprioritize housing needs for our homeless people first, for people facing evictions.\u201d<\/p>\n

Resident Michael Harris said \u201cwe have to think about the mental stress that (is) happening to a lot of people here in Durham.\u201d<\/p>\n

At the same time, several speakers praised the council for adding money for other priorities, including immigrant legal defense services.<\/p>\n

\u201c[These services] will protect hundreds of Durham\u2019s immigrant families as well as hundreds of mixed-status families in Durham,\u201d said Adam Clark, the executive director for World Relief Durham.<\/p>\n

After the vote, the council members described this budget season as unusually difficult. Councilwoman Shanetta Burris said of her first budget cycle that \u201cI know we\u2019re not going to always get it right.\u201d<\/p>\n

\u201cIf I ruled the world, I would ensure that everyone had all the fun they had, but unfortunately, those are not the circumstances,\u201d she said. \u201cJust thinking about how our food has risen and gas is going up … it\u2019s really important to think about our neighbors who don\u2019t have the same financial situation that we do have.\u201d<\/p>\n

The city\u2019s budget will go into effect on July 1. More information about the budget can be found online at durhamnc.gov<\/a>.<\/p>\n

Read more Why Wake students will have so many days off from class next school year<\/a><\/p>\n

This story was originally published June 16, 2026 at 8:03 AM.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Durham City Council worked to save some social programs in the Fiscal Year 2026-27 budget while city workers get 2% raise. What to know.<\/p>\n","protected":false},"author":1,"featured_media":2593,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-read-todays-edition"],"yoast_head":"\nDurham passes city budget after corporate revenue drain. 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