City & County of Durham Knowledge Base

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How is an annual County budget created?

The annual budget process usually starts in December with departments getting pre-budget information from the Budget Office and County Manager. In January the Board of County Commissioners has a "budget retreat" where they are appraised of the County's current financial condition as well as expected revenue trends for the upcoming year. During that retreat the Board begins to outline its goals and direction for the upcoming year to help the County Manager and department heads orient their focus and dollars towards those goals. The actual budget entry system is opened in February and stays open through most of March. After initial department budgets are compiled and compared against available revenues, departments begin to have meetings with the County Manager to provide support for their budget request. The County Manager and General Managers work together to build a balanced budget by cutting or supporting various department requests. Ultimately this produces a Manager's Recommended budget, usually in mid May that is then presented to the Board of County Commissioners. This Recommended budget is changed by the Board as they see fit, either adding additional dollars or cutting additional dollars. To support additions the Board may ask staff to review revenue projections or they may decide to raise the property tax rate to bring in more revenue. Conversely if they decide to reduce the Manager's Recommended tax rate they may ask staff to find more expenditure cuts to offset the reduced revenue. This Board budget deliberation happens through the second half of May and almost all of June, usually in the form of all day budget work-sessions. Sometime late in June (usually), the Board has to decide on a budget and approve an official Budget Ordinance. This ordinance must be in place before July 1st, which is the beginning of the next fiscal year.