City manager proposes $722 million FY26 budget, cites revaluation and bond debt

City Manager Ferguson on Monday presented his first proposed budget for fiscal year 2025–26 to the Durham City Council, asking the council to adopt a $722,000,000 budget and a property tax rate of 43.71¢ per $100 of assessed value.

Ferguson told the council that a recent countywide property revaluation increased assessed values by 71.6%, producing an estimated $47,000,000 in additional property tax revenue. He said the proposed tax rate reduces the current 59.62¢ rate by 15.91¢ but remains 5.48¢ above the revenue-neutral rate of 38.23¢ calculated under state law.

The manager said the budget increase of roughly $54 million, or 8%, over last year’s $668 million budget would support public safety, infrastructure, employee pay and benefits and the debt service related to the $200 million bond program voters approved in November. “This rate allows us to invest in the services and the infrastructure that our community has asked for,” Ferguson said.

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