Durham city manager warns council tough budget choices lie ahead

City Manager Beau Ferguson told the Durham City Council at the second day of its budget retreat that the city faces a difficult budget year and that he expects staff and council will need to make hard, prioritized choices.

"I am stressed," Ferguson said, adding that the city's "revenue picture is not looking any better and our expenditure picture is looking worse." He told council it is "very likely" he will stand before them in May with a proposed budget that "does not achieve some things that are very important to all of us."

Ferguson said the variables that have sometimes produced narrowly balanced budgets in prior years are moving in the opposite direction this season. He framed the challenge as an opportunity, quoting a phrase he said he had been thinking about: "pressure is a privilege." He asked council members to "be brave" and to practice "rigorous and tactful honesty" when debating priorities so staff can prepare a budget that reflects the city’s highest priorities.

Ferguson said he is confident in staff and the council’s ability to make difficult decisions but warned that many requests from departments and agencies "will have to be said no to, or at least not yet." He urged open conversations about trade-offs so the manager’s office can deliver a budget aligned with council and community priorities.

The manager did not propose specific cuts or changes at the retreat; instead, he asked council to prioritize outstanding requests in coming weeks. Staff will review department requests and return to council with options and recommendations ahead of the May budget presentation.