Create a 10-word scroll-stopping headline for: Amid Unprecedented Property Tax Revenue Shortfall, City of Durham Passes Budget | Vibe NC

After months of deliberation, the Durham City Council unanimously passed its budget for the upcoming 2026-27 fiscal year.

The budget comes in at $767 million and holds the city’s tax rate at 43.71 cents per $100 of assessed value. Numerous financial constraints, including uncertain state and federal support, an unstable national economy, and lower-than-expected property tax revenues put the city manager and his staff in a bind when constructing the final proposal, but Mayor Leonardo Williams said the council was able to overcome disagreements about how to move forward with more limited resources.

“We were probably on seven different pages, and yet, we somehow came to a consensus,” said Williams, capping his fifth budget cycle—third as mayor.

Before the budget hearing could begin, a handful of demonstrators interrupted the meeting in protest of the treatment of incarcerated residents and the city’s recent sweeps of homeless encampments, holding up signs and pacing around the dais before being removed by Durham police officers. One protestor, who declined to speak to the press, was handcuffed in front of the dais before being escorted from the meeting along with three other protestors and released, sidetracking the meeting for almost 10 minutes before discussion resumed.

But throughout discussion of the budget, it was the revenue shortfall that took center stage.

Both the city and county budget were hampered by an unexpected, and unprecedented, budget shortfall due to large property tax reductions. Over 10,000 commercial and residential property tax appeals were submitted this cycle—significantly more than average—leading to a staggering $4.4 billion decline in assessed value, from which Durham governments generate a majority of revenue. That reduction translated to an unexpected, $9 million loss in revenue for the city. Commercial properties in particular accounted for 93% of the reduction in assessed value countywide despite making up just 12% of appeals, an INDY investigation revealed.

Residents and members of city council honed in on the issue as a major point of concern for the city’s financial outlook, now and in the future.

“This doesn’t just affect the budget we’re about to vote on this evening,” city councilor Nate Baker said. “It affects every budget until there is another revaluation.”

Council members and residents alike also noted wins in the budget, including raising the minimum livable wage for city employees to $25.09 per hour, and an additional 2% cost-of-living raise for all city staff. GoDurham buses also remain fare-free for another year, supported by a one-time $8.2 million contribution from GoTriangle and Durham County. The budget also made investments in legal defense for people navigating eviction and immigration cases. 

“When we imagine what we want our community to look like in five weeks, five months, five years, this is an investment in workers, small…