City Council Work Session on the Budget May 27, 2026

The City of Durham, NC City Council held a budget work session on May 27, 2026, focusing extensively on the FY27 budget, including revenue projections, personnel costs, and capital improvement projects (CIP). Key procurement-related discussions included the impact of property tax assessment appeals on the budget, with over 10,000 appeals reducing the tax base and requiring over $9 million in refunds, leading to a balanced budget with no tax increase. Departments were asked to identify 3-5% budget reductions, resulting in $3.6 million in cuts, and pay-for-performance increases were eliminated to save $6 million, replaced by a 2% across-the-board pay adjustment. The council also reviewed the CIP process, highlighting a new 10-year funding model with detailed project appropriations and future planned funding, emphasizing the need for strategic prioritization and potential bond discussions to supplement funding. The session included detailed presentations on pay and benefits, including a proposed compensation and classification study, and discussions on minimum livable wage adjustments. The council expressed interest in greater transparency and community engagement in CIP prioritization and requested further data on departmental cuts and project scoring to inform future budget decisions.