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Durham Council adopts tight FY2026–27 budget, holds line on property tax
Summary
After months of hearings and public comment, Durham City Council unanimously adopted a $840 million fiscal plan for 2026–27 that avoids a property tax increase, provides a 2% raise for city staff and preserves funding for several community priorities amid revenue shortfalls stemming from recent property tax appeals.
Durham — The Durham City Council unanimously approved the city's fiscal year 2026–27 budget Tuesday, voting to adopt a plan city leaders said was the most difficult they had faced in recent memory.
The adopted package includes the general fund and a six‑year capital improvement plan. Council members said they balanced competing priorities as revenue fell short after a wave of high‑value property tax appeals at the county level, which local officials said removed roughly $4.4 billion in assessed value last year and widened the budget gap.
“Tonight was the hardest budget that I've ever seen and have ever been presented with,” Mayor Leonardo Williams said after the vote, noting the council's unanimous decision to pass the proposal. “There are always going to be opinions. You elected us to do this hard work.”
The budget totals roughly $840 million across all city funds. Highlights in the adopted plan include a 2% across‑the‑board pay increase for city employees (but not a full merit or pay‑for‑performance pool), a continuation of the city's fair‑free bus program, funding for immigrant legal defense services, investments in parks and recreation infrastructure and a minimum livable wage policy the council set at $15.90 per hour.
Council members and staff said the package preserved core services while trimming positions and reducing some programmatic spending. “We tried to find the best version of this budget,” Council Member Baker said. “We've made some serious cuts and also found allocations to still make some things whole.”
The council faced frequent public comment on the budget. Speakers urged greater support for homelessness services, tenant protections and nonprofit funding, and several community groups thanked the council for increased funding for immigrant legal defense. More than a dozen residents also criticized the county's revaluation and appeals process, which council members said shifted costs and complicated the city's fiscal picture.
City Manager Ferguson said staff's proposal was framed as stewardship during uncertain times and noted the adopted budget's reliance on a combination of reserves and targeted cuts to balance the books. “We are a growing city and we came in short on revenue this year for a multitude of reasons,” he said.
What happens next: The budget takes effect for the fiscal year starting July 1. Council members said they will continue discussions with county and regional partners about long‑term revenue stability and ways to address the impacts of property tax appeals.
Provenance: Council and public testimony on the budget began during the public comment period (transcript start SEG 1204) and the council passed the budget by unanimous vote (SEG 1665–SEG 1699).
Speakers quoted: Council Member Baker; Mayor Leonardo Williams; City Manager Ferguson.
Authorities referenced: None cited during the meeting.
Actions: The council passed the motion to adopt the FY2026–27 budget and the FY2027–2032 CIP (vote: unanimous).
