{"id":544,"date":"2026-05-19T17:08:46","date_gmt":"2026-05-19T17:08:46","guid":{"rendered":"https:\/\/durhammovinghub.com\/?p=544"},"modified":"2026-05-19T17:08:46","modified_gmt":"2026-05-19T17:08:46","slug":"durham-budget-holds-line-on-city-property-taxes-so-why-wont-everyone-be-happy","status":"publish","type":"post","link":"https:\/\/durhammovinghub.com\/?p=544","title":{"rendered":"Durham budget holds line on city property taxes. So why won\u2019t everyone be happy?"},"content":{"rendered":"

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

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

Durham\u2019s proposed budget holds property taxes flat but raises utility rates and limits city employee pay to counter a rare drop in tax revenue.<\/p>\n

Read more 4 Best Thrillers on Netflix, Prime Video, More, Ranked by Rotten Tomatoes (May 2026)<\/a><\/p>\n

Monday night, City Manager Bo Ferguson recommended a $766.1 million budget for Fiscal Year 2026-27, calling the city\u2019s current financial situation \u201cunprecedented.\u201d For the first time in years, Durham will have less property tax revenue than last year, he said.<\/p>\n

\u201cNo city of Durham administration in recent memory … has ever built a budget under these circumstances,\u201d he said, attributing the decline to an \u201cunusually\u201d large number of property tax appeals after last year\u2019s revaluation.<\/p>\n

\u201cOnce this budget adjustment is behind us,\u201d he added, \u201cwe are also navigating inflation, rising fuel and operating costs and increasing demand from a growing center.\u201d<\/p>\n

Ferguson said property tax appeals, particularly those from large commercial properties, resulted in refunds that reduced both current and future revenues in Durham.<\/p>\n

Last year, all property owners saw changes in their tax values due to the countywide revaluation. The process occurs every four years when the Durham County Tax Administration assesses the market value of all real estate to ensure taxes remain fair. However, due to city and market growth, thousands of property owners saw spikes in their values, which led to higher tax bills.<\/p>\n

Over 10,000 property owners appealed their revaluation and got a refund.<\/p>\n

\u201cMany appeals were granted,\u201d Ferguson said. \u201cThe overall assessed tax base has been reduced by about $2.6 billion, requiring the city to issue refunds totalling roughly $5 million in the general fund and $9 million across all funds … It is important to underscore that this is a one-time correction related to the unique timing and nature of these appeals. We expect revenue growth to return in future years as these corrections work their way through the system.\u201d<\/p>\n

The City Council wanted to avoid a property tax increase during a time of financial strain for residents. Ferguson said the budget maintained the current tax rate of 43.71 cents per $100 of assessed property value, calling this a \u201csignificant accomplishment.\u201d<\/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

Homeowners will also pay a county-wide tax. Durham County Manager Claudia Hager has recommended a 2-cent property tax rate increase to 57.42 cents per $100 of assessed value to fund areas across the county, such as public schools and emergency services.<\/p>\n

The owner of the $424,000 home in Durham could pay $4,287 in both city and county property taxes combined. To get this number, you take the home value, divide it by 100 and multiply it by the added proposed city and county rates (424,000\/100 x 1.0113).<\/p>\n

While property taxes are holding steady, other costs are rising in Ferguson\u2019s recommended budget.<\/p>\n

Read more Who Are the ‘Off Campus’ Season 2 Leads After Major Book Changes?<\/a><\/p>\n

Ferguson\u2019s budget includes investments and trade-offs to the city\u2019s workforce and services.<\/p>\n

Regarding employee pay, the budget fully funds the Durham livable wage, which will increase 14% to $25.09 per hour. All city employees will get a 2% raise.<\/p>\n

However, merit-based \u201cpay for performance\u201d and step increases are not funded this year due to the revenue loss from tax appeals, Ferguson said.<\/p>\n

\u201cDespite that disappointing news, we are funding a new classification and compensation study next year to ensure our pay structure remains sustainable and in line with the market,\u201d he said. \u201cWhile merit increases could not be funded this year, the market study will help us ensure our employees remain paid commensurate with their market value.\u201d<\/p>\n

Ferguson\u2019s budget calls for 16 new Fire Department positions to staff Ladder Company Eight and funding for firefighter cancer screenings. There is money for improvements to station security, equipment, and furnishings, as well as increased overtime.<\/p>\n

The GoDurham bus service will remain fare-free another year, supported by an $8.2 million one-time contribution from the Durham County Transit Plan. Ferguson said long-term sustainability for free buses will require \u201cserious discussions\u201d among funding partners.<\/p>\n

The budget also proposes closing Forest Hills Pool, which will not open this summer, and the pause of the installation of new speed humps around the city.<\/p>\n

Mayor Leo Williams acknowledged the difficulty of Ferguson\u2019s budget proposal, saying, \u201cnot everybody is going to be happy.\u201d<\/p>\n

\u201cActually, no one is going to be fully happy with this budget,\u201d he said. \u201cThere are trade-offs … We have a lot of work to do, and we are dealt an impossible deck of cards here.\u201d<\/p>\n

The City Council will hold work sessions on the budget on May 27 and 28, with a formal public hearing scheduled for June 1 at 7 p.m.<\/p>\n

Read more Euphoria’s Nika King Addresses Screen Time Being Cut in Scene With Zendaya<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Durham City Manager Bo Ferguson proposed his budget for FY 2026-27 with no property tax increase. Residents will see utility increases, free buses, more.<\/p>\n","protected":false},"author":1,"featured_media":543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-read-todays-edition"],"yoast_head":"\nDurham budget holds line on city property taxes. 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