City Manager Tom Bonfield proposed a $353.4-million budget for 2010-11 Monday night, up 2.2 percent, or $7.7 million, over that approved for 2009-10.
His budget includes an increased property-tax rate and eliminating 31 staff positions, 15 currently filled. For the second year in a row, city employees are getting no raises, but Bonfield said he will ask the City Council to approve one-time bonuses for all employees if revenue is higher than expected by mid-year.
"On the revenue side I think we have bottomed out and begun to see some stabilization," Bonfield said before presenting his proposal to the council.
Of the tax increase, .49 cents is dedicated to increased costs for debt service on bonds that voters approved in 2005 and 2007 and .7 cents for the Durham Area Transit Authority to make up for decreased ridership and the end of federal stimulus funding.
"No aspect of the tax increase is going to support any of the [city] operations and core services," Bonfield said.
His proposed tax-rate increase is 1.19 cents per $100 valuation, to 55.19 cents or $1,103.80 on a $200,000 house.