Durham City Council Work Session – April 18, 2024

The Durham City Council held a work session on April 18, 2024, starting at 1:00 PM (EDT). The meeting included staff presentations on the proposed general obligation bond referendum, classification and compensation study, water and sewer rates, and stormwater rates. Councilmembers also heard public comments and discussed a request to fund a summer camp. No formal votes were taken; the session served as a discussion to guide future agenda items.

Consent Calendar

• Items 1, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24 were approved en bloc. Several items were pulled for discussion: Item #2 (resolution to set public hearing for Dossian Avenue closure), Item #3 (conveyance to Durham Community Land Trustees), Item #6 (loan commitment for South Side Phase Three), and Item #15 (construction of rectangular rapid flashing beacons).

Public Comments & Testimony

• Jacqueline Wagstaff (online): Questioned the mayor’s announced “Dope T-shirt sales initiative” for youth crime reduction, asking about approval, costing, and accountability. She expressed concern that the initiative was not discussed by council and that the term “dope” trivializes drug-related crime. Mayor Williams responded that it is not a city initiative.
• Jeremy Bergen (online): Provided a ceasefire update, noting a recent shootout in Southside. He urged the council to increase police pay and to view affordable housing as a tool to address gun violence. He expressed frustration that gun violence has been a long-standing issue in his neighborhood.
• John T. Dunstan (in-person): Called for men in the community to step up and suggested training youth like soldiers, citing military discipline. He criticized Duke University for ending scholarship programs for Black students and advocated for teaching professional skills to young men.

Discussion Items

General Obligation Bond Referendum

• Staff Presentation (Tim Flora, Director of Finance): Proposed a $200 million general obligation bond referendum split into two bond orders: $85 million for parks and recreation (Wills Fund Park and East End/Long Meadows Park) and $115 million for streets and sidewalks (new sidewalks, street paving, and unpaved roads). The average annual debt service would be $14.2 million, with an immediate tax rate impact of 3.45 cents per $100 valuation. Staff requested direction to move forward.
• Council Positions: Councilmembers Caballero, Cook, and Baker expressed support, citing equity, health, and quality of life. Councilmember Freeman supported but stressed the need for MWBE participation and complete streets. Councilmember Rist raised questions about cost escalation and complete streets for unpaved roads. Mayor Pro Tem Middleton supported but cautioned against framing a “no referendum” as catastrophic. Councilmember Williams supported and noted the importance of a triple-A credit rating. Direction was to bring the referendum forward for formal consideration.

Classification and Compensation Study

• Staff Presentation (Jim Ryan Gruber, Assistant HR Director, and Annette Hafer of Logic Compensation Group): Recommended updating pay structures for all city employees at a total cost of $28.5 million. The proposal includes 5% step spreads (up from 4%), a livable minimum wage of $19.58/hour, and market adjustments: step structure below market by 9.6%, open range by 6.1%, police by 17.6%, and fire by 7.8%. Executive positions would be capped at 5% increases. Implementation timeline: adjustments in July 2024, merit in late July, reclassifications in August.
• Council Positions: Councilmember Cook raised questions about comparing midpoint vs. market actuals and requested visuals of regression data. Other members expressed support for the study and emphasized internal equity and compression issues. Councilmember Freeman urged attention to race and gender breakdowns for merit increases. Councilmember Caballero appreciated the executive cap. The mayor thanked staff and noted the study honors employee voices. Direction was to incorporate into the upcoming budget.

Proposed Water and Sewer Rates (Fiscal Year 2024-2025)

• Staff Presentation (Don Greeley, Water Management Director): Proposed a 6.1% rate increase for FY25, with typical residential bills rising $1.36 to $2.56 per month depending on tier. Major capital projects include the Jordan Lake water supply ($600 million), dam repairs ($70-85 million), and PFAS compliance. The utility maintains a triple-A bond rating. Rates are needed to cover operating costs, debt service, and capital needs.
• Council Positions: No opposition was expressed. Councilmembers asked about PFAS regulation, security of water systems, and coordination with Chatham County. Direction was to include the rate increase in the budget.

Proposed Stormwater Rates (Fiscal Year 2024-2025)

• Staff Presentation (Martin Williams, Public Works Director): Proposed rate increases of $9.00 (tier 1), $18.60 (tier 2), and $37.20 (tier 3) annually. The fund supports stormwater management, street cleaning, watershed planning, and capital projects. A consultant is updating the rate model for future years.
• Council Positions: No significant debate. Councilmember Cook asked for clarification on tiers. Direction was to include in the budget.

Summer Camp Funding Discussion

• Councilmember Freeman raised a request to provide $41,000 for the “Heart of a Champion” summer camp (Education 360) for current fiscal year (summer 2024). She argued that the camp serves children from the Cornwallis area who face high gun violence and that without funding, the camp would not run.
• Council Positions: Mayor Pro Tem Middleton and Councilmember Caballero opposed funding a single camp, advocating for a broader summer camp fund that all organizations could apply for. Councilmember Cook and Rist expressed confusion over whether the request was for FY24 or FY25, noting the budget retreat discussions were for the next fiscal year. Councilmember Freeman clarified she was asking for immediate funding. The city manager noted that if council directed, funds could be identified, but she did not currently have them.
• Outcome: No formal motion or vote was taken. The mayor closed the discussion, noting the council would not relitigate a previously decided budget item. The city manager later indicated she would likely propose a summer camp fund in the FY25 recommended budget.

Key Outcomes

• GO Bond Referendum: Council gave direction to staff to prepare for a May 20, 2024 council introduction. (No vote taken.)
• Classification and Compensation Study: Council directed that the study’s recommendations be incorporated into the FY25 budget. (No vote taken.)
• Water and Sewer Rates: Council indicated support for the proposed rate increase; to be included in the budget. (No vote taken.)
• Stormwater Rates: Council indicated support for the proposed rate increase; to be included in the budget. (No vote taken.)
• Summer Camp Funding: No decision was made; discussion will continue as part of budget deliberations.
• Participatory Budgeting Steering Committee Appointment: The council appointed Raven Smith to fill an at-large vacancy after a tie vote was broken.
• Solid Waste: Chief Perkins updated the council on a propane leak evacuation near Angier Avenue; roads closed and DPS routes disrupted; expected resolution by 7-7:30 PM.