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Durham County manager proposes 3.5-cent tax rate increase to fund schools, public safety and services
Summary
County Manager Claudia Hager presented a FY2025-26 recommended budget that proposes a 3.5-cent property tax increase to raise about $30 million, adds $10.3 million for Durham Public Schools, funds EMS and public safety staffing, and includes fee increases for the sewer and stormwater utilities. A public hearing is set for May 27.
County Manager Claudia Hager presented her recommended FY2025-26 budget to the Durham County Board of Commissioners on May 12, proposing a 3.5-cent property tax rate increase that she said would generate roughly $30 million in new revenue to support education, public safety, capital needs and staff retention.
“This proposed budget is a delicate balancing act between limited resources, resident economic stress, and nearly infinite needs,” Hager said in the presentation. She added: “I am proposing a 3.5-cent property tax rate increase for this recommended budget.”
Why it matters: The proposed increase would fund an additional $10.3 million in current expense support for Durham Public Schools (DPS), increase per-pupil county funding by $128 to $5,496 per student, and allocate money for capital projects and deferred maintenance. Hager said DPS remains the county’s largest single expenditure, accounting for about one-third of the General Fund.
Key allocations and program changes in the recommendation include a net gain of roughly 11.2 full-time equivalent positions, with most new positions in public safety; five additional law enforcement positions for the Sheriff’s Office; 12 new paramedic and EMT positions for Emergency Medical Services; expanded staffing for the Youth Home and the newly opened RYSE Assessment Center; and funding for an Enterprise Resource Planning implementation in Information Services & Technology.
The recommendation also includes a 12% increase in the Sewer Utility monthly consumption rate and a rise in the Stormwater Utility Fee from $80 to $96 per Equivalent Residential Unit to meet state requirements related to Falls Lake and Jordan Lake. Hager said slower sales-tax growth and several revenue sources underperforming recent forecasts make property tax the primary controllable source for additional revenue.
Other items noted in the presentation: a modest 1.5% increase in funding for Durham Technical Community College, $2.1 million earmarked for DTCC scholarships for Durham residents, $6.3 million to cover increased employee benefits costs, and $10 million added to the Capital Improvement Plan to address urgent school facility needs ahead of any potential bond referendum.
Next steps: Hager scheduled a public hearing on the recommended budget for Tuesday, May 27, with budget work sessions on May 20, 22, 29 and June 3 and planned budget adoption on Monday, June 9. The county manager and staff told the board they will provide additional data and respond to commissioners’ questions during the upcoming work sessions.
