Durham City Council passes $767 million budget, extends data center moratorium

The Durham City Council concluded its fiscal year by approving a $767 million budget and extending a moratorium on data center development by an additional 10 months, resulting in a full-year pause on new approvals. The decision to extend the moratorium was influenced by residents expressing concerns about potential environmental harm and the need for a comprehensive evaluation of data centers' impact, although Sara Young, director of the city-county planning department, assured residents the city was equipped to analyze impacts within the timeframe.

Simultaneously, the council addressed the city's most severe drought conditions in over a century, prompting the announcement of Stage 2 water-use restrictions, including prohibitions on spray irrigation and required water service only upon request in restaurants. Don Greeley, director of Durham’s Department of Water Management, highlighted the unusual nature of the drought, which has impacted local institutions like Duke University in the past.

Notably, the extended moratorium includes exceptions for educational institutions, meaning Duke University's current data center construction, approved before the initial ban, will not be affected. During the same meeting, Mayor Leo Williams oversaw the approval of the city budget, which held the property tax rate flat despite an unprecedented decrease in property tax revenue. The budget faced initial shortfalls due to property tax appeals but ultimately secured emergency funding for nonprofits following community pushback. The council also unanimously approved a resolution to limit the use of surveillance technology for policing.