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Durham Council adopts $700M-plus budget, keeps buses fare-free and raises living wage
Summary
The Durham City Council unanimously approved the fiscal year 2025–26 budget and 2026–2031 capital improvement plan, increasing the city's overall spending to more than $700 million, preserving fare-free local transit, boosting the city's minimum livable wage and funding park lead remediation and other capital projects.
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Durham City Council on Monday adopted the fiscal year 2025–26 budget and the 2026–2031 Capital Improvement Plan, approving a package that raises city spending past the $700 million mark and preserves several policy priorities, including fare-free buses and a higher minimum livable wage for city employees.
The council voted unanimously to adopt the budget and related ordinances. Council members and city staff described the plan as a balancing act between rising service costs, a recent property revaluation and long-term investments in infrastructure and city services.
City officials said the budget increases the Durham minimum livable wage for city employees and expands pay for part-time staff. The plan maintains the city's fare-free bus policy for another year; council members noted GoDurham riders are disproportionately low-income and said the policy reduces conflict, avoids fare-collection costs and speeds transit trips.
The capital plan includes about $963 million in projects over the period covered by the CIP, council members said, with roughly $100 million-plus targeted to historically underserved neighborhoods and $7 million added this year for lead remediation in parks; councilmembers noted that, together with last year's allocation, the total park lead remediation funding now stands at about $12 million. The budget also continues design work on safety-focused street conversions, fire and EMS station projects, stormwater improvements and other public works investments.
Council members and staff repeatedly told residents that the tax increase accompanying the budget is not a proportional pass-through of the recent property revaluation; officials said some homeowners will see relatively small changes while others will see higher bills, and they pointed residents to Low Income Homeowner Relief resources administered by Durham County and the city.
The council emphasized homelessness services, investment in youth programs and expansion of HEART (the city's alternative response team) as priorities. Council members also said they will continue to press regional and state partners as federal funding remains constrained for many core programs.
The ordinance adoption concluded a months-long process that included public hearings, small-group briefings and budget work sessions. The council recessed after the vote and will meet again in August for the next work session.
Looking ahead: the council and staff said they will monitor implementation and return with periodic updates on major capital projects and service rollouts, and urged residents with questions about property tax impacts to use county and city assistance tools.

