Durham City Council

Durham Budget Would Keep Taxes Flat, Buses Fare-Free, and City Services Mostly Intact

City Manager Bo Ferguson’s $766.1 million proposal avoids a property tax hike, protects most services, raises water and sewer rates, and closes Forest Hills Pool one season early.

Durham residents now have a few weeks to weigh in on City Manager Bo Ferguson’s proposed Fiscal Year 2026-27 budget before the City Council is expected to consider approval in June. Ferguson presented the spending plan May 18, with no proposed increase to the city property tax rate.

The proposed budget totals $766.1 million across all funds, up $43.9 million, or 6.08%, from the current year. The property tax rate would stay at 43.71 cents per $100 of assessed value.

That flat tax rate comes after a tougher-than-usual budget year. The city says more than 10,000 successful property tax appeals reduced Durham’s assessed tax base by about $2.6 billion and required about $9 million in refunds across all funds.

FY27-Proposed-Budget-Book

FY27-Proposed-Budget-Book.pdf

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For neighbors, one of the most visible wins is transit. GoDurham buses would remain fare-free for another year, helped by an $8.2 million one-time contribution supported by Durham County and GoTriangle. City budget writers warn, however, that the long-term future of fare-free transit still needs more discussion among funding partners.

The proposal also avoids dramatic citywide job cuts. The budget book shows total authorized full-time positions rising by 40, from 2,862 to 2,902, while part-time positions would fall by two. Some departments would shrink, including Police, down 10 full-time positions, Transportation, down two, Housing and Neighborhood Services, down two, Parks and Recreation, down one, and Environmental and Street Services, down four.

The city would add 16 Fire Department positions to staff Ladder Truck 8, 18 Community Safety positions, and 10 Water Management positions.

City employees would receive a 2% structural adjustment to pay scales, and Durham’s minimum livable wage for city workers would rise to $25.09 per hour.

Residents should also watch utility bills. The Water and Sewer Fund budget totals $181.7 million, and the average customer would see an approximately 12% increase in water and sewer rates starting July 1.

The proposal includes a major homelessness response, with the city committing $4.5 million in one-time federal and ARPA-interest dollars toward a new Strategic Framework to Prevent and End Homelessness. The plan’s first-year community investment goal is $13 million, including $9 million in direct rental assistance.

Parks users should note one specific cutback: Forest Hills Pool is proposed to close one season earlier than originally planned because of fiscal constraints. The Capital Improvement Plan still includes replacement of the spray ground and playground at Forest Hills Park.

Council members still may adjust the proposal before adoption in June.