NORTH CAROLINA GENERAL ASSEMBLY
1959 SESSION

CHAPTER 696
HOUSE BILL 880

AN ACT CREATING THE DURHAM CITY‑COUNTY CHARTER COMMISSION.

The General Assembly of North Carolina do enact:

Section 1. Durham City‑County Charter Commission Created. There is hereby created the Durham City‑County Charter Commission. The Commission shall have the duty of studying the operations of city and county government to determine whether the effectiveness of local government can be increased through changes in the structure of city and county government, and to submit a plan for changes in the structure of local government to the voters of the City and County of Durham.
Sec. 2. Membership; Terms. There shall be 11 members of the Commission who shall be chosen in the following manner:
(a)	Four members appointed by the board of county commissioners, of whom two shall be members of the board of county commissioners and two shall be citizens selected by the board. The citizens selected by the board may reside either inside or outside the City of Durham.
(b)	Four members appointed by the City Council of the City of Durham, of whom two members shall be members of the City Council. The other two members shall be residents of the City of Durham.
(c)	Three members to be chosen by unanimous vote of the eight members provided under subsections (a) and (b). Such members may have residence either inside or outside the City of Durham. If the eight members chosen under subsections (a) and (b) cannot agree on the three additional members of the Commission, this fact shall be reported to the Resident Superior Court Judge who shall appoint three residents of Durham County to complete the membership of the Commission.
Vacancies in the membership of the Commission shall be filled by the original appointing authority.
Sec. 3. Organization of the Commission.
(a)	On or before October 1, 1959, the chairman of the board of county commissioners and the Mayor of the City of Durham shall call a meeting of the Durham City‑County Charter Commission for the purpose of organization. The Commission shall elect from among its members a chairman and such other officers as it may deem necessary; may adopt such rules and regulations not inconsistent with this Act as it may deem necessary for the proper discharge of its duties; and may establish such committees as the work of the Commission may require.
(b	The Commission shall hold regular meetings at places and dates to be determined by the Commission, but in any event the Commission shall meet at least once monthly until its work is completed. Special meetings may be called by the chairman on his own initiative and must be called by him at the request of three or more members of the Commission. All members of the Commission shall be notified by the chairman in writing of the time and place of special meetings at least three days in advance of such meeting.
(c)	The Commission shall have the power to employ technically trained and/or clerical personnel to assist it or to contract with persons, firms or corporations for special and technical services or studies.
(d)	As soon as possible after its organization, the Commission shall estimate the funds which will be necessary for it to carry out its functions, and shall request appropriations from the City of Durham and from the County of Durham. It is the intent of this Act that the work of the Commission shall be supported equally by the City of Durham and by the County of Durham to the extent that public funds are used. The Commission is also authorized to accept gifts from persons, firms and corporations so long as such gifts are made available to the Commission to be used in its absolute discretion for the purposes of this Act. Appropriations to the Commission may be made from any funds available to the city and county, and an appropriation to this Commission is hereby declared to be for a special purpose within the meaning of Article V, Section 6, of the North Carolina Constitution.
(e)	The City of Durham and the County of Durham shall make available to the Commission any information requested by the Commission, and they are hereby authorized to assist the Commission through gifts of necessary supplies and equipment, and temporary loans of personnel.
(f)	The Commission shall select one of its members as treasurer with authority to collect, deposit, and disburse funds made to the Commission from any source whatsoever. The treasurer of the Commission shall, before entering upon his duties, post a surety bond conditioned upon the faithful discharge of his duties in an amount and form fixed by the Commission. All moneys received for the Commission shall be deposited in a separate bank account, shall be earmarked for the use of the Commission, and shall be paid out on warrants signed by the treasurer and countersigned by the chairman of the Commission: Provided, the countersigning officer shall countersign such warrants only when they are within the amount of appropriations made according to the budget of the Commission.
Sec. 4. Alternatives. The Durham City‑County Charter Commission shall make a thorough study of governmental operations in the city and county, and as a result of their study may, at any time prior to February 1, 1961, submit to the voters of Durham County, according to the procedures set forth in Section 8 of this Act, a plan for reorganization of government in Durham County. Such plan may be based on any one of the alternatives set forth in Sections 5, 6, and 7 of this Act.
Sec. 5. Redefining City and County Responsibilities. The Durham City-County Charter Commission shall have the power to submit a plan of government based on the provisions of this Section if, on the basis of its studies, the Commission makes any one or more of the following findings: (a) That more efficient government will result from performance of a specified function or functions by one governmental unit instead of by both the city and the county governments; (b) That for the health, safety and welfare of the people of the county and/or the more effective coordination of growth and development in the county, any function now performed by the city alone should be made available to all the residents of the county or any power now exercised by the city alone should be exercised countywide; (c) That a fairer distribution of tax burdens will result from performance or financial support by the county of a function now performed and/or financially supported in whole or in part by the city; (d) That a fairer distribution of tax burdens will result from performance or financial support by the city or by a special district of any function or functions now performed and/or financially supported in whole or in part by the county; (e) That for the health, safety and welfare of the residents of areas outside the city, municipal‑type functions should be provided in such areas on a special district basis. Such plan shall be submitted in written form, and may include one or more of the following provisions:
1. Transfer of responsibility for one or more specified functions from the city to the county.
2. Transfer of responsibility for one or more specified functions from the county to the city.
3. Creation of an agency or agencies supported jointly by the city and county with power to perform one or more functions now performed by the city or the county or both.
4. Provision for the financing of all functions of government affected by changes under subsections (1), (2) or (3) of this Section. Upon the transfer of responsibility for a given function of government from the city to the county, the levy of taxes by the county for the financial support of such functions shall be a special purpose within the meaning of Article V, Section 6, of the North Carolina Constitution. Where necessary, the plan shall set forth the basis of financial support for a single agency established to perform functions for both the city and the county, either specifying the amount of support to come from the city and the county or the basis upon which the amount of support to be provided by each unit of government can be calculated.
5. Vesting in the county government any power now exercised by the city, and specifying whether such power is to be exercised county‑wide or county‑wide outside the jurisdiction of the city government.
6. Provision for the creation of special districts within which functions of government may be provided which are not desired county‑wide. The plan shall provide that governmental activities within such districts shall be under the supervision of the county, and shall be financed by property taxes levied within the districts or service charges collected within the districts. The plan shall also provide for approval by the voters of the district of authority for the county commissioners to levy property taxes sufficient to meet the cost of services provided. The plan may provide for the election or appointment of an advisory board of citizens resident within the district to serve as liaison with the board of county commissioners. The plan may also provide for contractual arrangements between the county and the city whereby the city, under contract, shall perform municipal‑type services in such urban districts.
The intent of this Section is to delegate to the Charter Commission the power to submit a plan of government for Durham County that will meet the standards set forth in the first paragraph of this Section. To this end any amendments of general or special laws applying to Durham County or the City of Durham which are found necessary to put any of the provisions of the plan into effect are expressly authorized, so long as the Charter Commission does not include in the plan any provision which is contrary to the Constitution of North Carolina or which vests in either the City of Durham or the County of Durham responsibility for a function of government not now performed by either the City of Durham or the County of Durham. The plan may also include changes in the method of selecting personnel responsible for any of the functions affected by the plan so long as such personnel provisions are not contrary to the provisions of the North Carolina Constitution, and amendments to general and special laws applying to the City of Durham and the County of Durham necessary to put such personnel provisions into effect are expressly authorized.
Sec. 6. A Unified Governing Board. The City‑County Charter Commission shall have the power to submit a plan of government to the voters of Durham County which, in addition to any provision authorized in Section 5 of this Act, may include provisions based on the provisions of this Section, if on the basis of its studies, the Commission shall determine that better coordination of all local governmental activities or of expenditures of public funds in Durham County would result from the creation of a unified governing board which would serve both as the City Council of the City of Durham and as the Board of County Commissioners of the County of Durham without changing the separate corporate status of either the city or the county. Such plan shall be submitted in written form, and shall provide for:
1. Election of a governing board, all of whose members would constitute the governing body for Durham County, and part of whose members would constitute the governing body for the City of Durham. The plan shall fix the number and terms of office for such governing board members, and may provide either for regular or staggered terms of office, so long as the maximum term of office does not exceed six years. The plan shall provide for the election of part of the members of such governing board by the voters of the City of Durham, and such members elected by the voters of the City of Durham shall serve as the City Council of the City of Durham. The plan may provide for the election of such members by the voters of the City of Durham by wards, or at large, or by any combination of wards and at large. The plan shall also provide for election of additional members of the governing board to be elected by either all the voters of the county, or by all the voters of the county outside the city, or by voters from districts established outside the city, or by any combination of such means of election. Such additional members, together with the members elected by the voters of the City of Durham, shall constitute the governing board for the County of Durham.
2. Election of an elected executive and/or an appointed administrator or manager. The plan may provide for election of a county executive, or an appointed administrator or manager, or both. The term of office of an elected executive shall not exceed six years, and he shall be the presiding officer of the governing board. The elected executive may be given any powers now held by the Mayor of the City of Durham and/or the Chairman of the Board of County Commissioners of the County of Durham, or any of the powers now held by either the city manager or the county manager. The appointed manager or administrator may be given any of the powers now held by either the city manager or the county manager.
3. The method of selection of all administrative officers of the City of Durham and the County of Durham. The plan may provide for merger of any or all of the administrative departments, agencies or offices of the county and the city, into single departments, agencies or offices under the supervision of the governing board. The plan shall, in the event of the merger of one or more administrative departments, agencies or offices, provide the extent to which or the basis under which such offices or departments shall be supported by the City of Durham and by the County of Durham.
The intent of this Section is to delegate to the Charter Commission the power to submit a plan for government in Durham County that will meet the standards set forth in the first paragraph of Section 5 and the first paragraph of this Section. To this end any amendments of general or special laws applying to Durham County or the City of Durham which are found necessary to put any of the provisions of the plan into effect are expressly authorized, so long as the Charter Commission does not include in the plan any provision which is contrary to the Constitution of North Carolina or which provides for the performance anywhere in Durham County of a function of government not now performed by either the City of Durham or the County of Durham. The plan may also include changes in the method of selecting personnel responsible for any of the functions, agencies or offices affected by the plan, so that necessary personnel may be selected in accordance with the objectives of the plan, and amends to general or special laws applying either to the City of Durham or the County of Durham which are found necessary to put provisions of the plan into effect are expressly authorized, so long as provisions affecting personnel election or appointments are not contrary to the provisions of the North Carolina Constitution.
Sec. 7. A Unified City‑County Government. The Durham City‑County Charter Commission shall have the power to submit a plan of government based on the provisions of this Section if, on the basis of its studies, the Commission makes the following findings: (a) That more efficient and effective administration of governmental functions will result from performance of all governmental powers and functions by one governmental unit instead of two or more such units; (b) That more effective determination of governmental policy for the residents and taxpayers of Durham County can be made by one governing body on behalf of the entire county than by two or more such governing bodies; (c) That future growth and development in the county can be better coordinated by one governmental unit than by two or more such units; (d) That fairer distribution of tax burdens will result from support of all county‑wide governmental functions by one governmental unit and support of all governmental functions specially required in areas less than county‑wide in jurisdiction by the residents of such areas. Such plan shall be submitted as a written charter setting forth the organization, powers and functions of a unified city-county government, and shall include provisions for the following aspects of organization and administration:
A. Form and Structure of Government.
(1)	Membership and terms of the governing board. The charter shall provide for an elected governing board, shall fix the number of members of such board, shall provide for election of such members either at large or by districts or by any combination of districts and at large, and shall fix the terms of office of such governing board members so long as the maximum term of office does not exceed six years.
(2)	Administration. The charter may provide for an elected executive, or for an appointed administrator or manager, or both. The term of office of an elected executive shall not exceed six years, and he may be given any of the powers presently held by the Mayor of the City of Durham, or by the Chairman of the Board of County Commissioners of the County of Durham, or of the City Manager of the City of Durham, or of the County Manager of the County of Durham. He shall be the presiding officer of the governing board. Responsibility for administration of the city‑county government may be vested in an appointed administrator who may be given any of the powers presently held by the City Manager of the City of Durham or by the County Manager of the County of Durham.
(3)	Organization. The charter shall provide for the organization of all departments of the city‑county government, and shall provide for the appointment or selection of all personnel found necessary to carry out the functions of the city‑county government. Amendments to existing general and special laws which are found necessary to carry out the intent of this Section are expressly authorized, so long as such provisions concerning the organization of city‑county government are not contrary to the provisions of the North Carolina Constitution.
The city‑county government shall be given express responsibility for all functions performed at the time the charter goes into effect by the City of Durham and the County of Durham, and the charter shall provide for employment by the city‑county government at the time the charter goes into effect of every employee and full‑time officer of the City of Durham and the County of Durham on such date at a salary and/or compensation equal to that received by such employee or full‑time officer from the city or county. The intent of this provision is to insure that no employee or full‑time officer of the city or county is deprived of employment as the sole and direct result of adoption of the charter, but shall not be construed to limit the power of the city‑county government under the charter to supervise its employees or to require such government to replace every such employee or full‑time officer once he has resigned or retired or been discharged for valid reasons under personnel powers set forth in the charter.
B. Powers and Responsibilities.
(1)	The charter shall make the city‑county government responsible for all functions presently performed by either the City of Durham or the County of Durham, and may vest in the city‑county government all substantive powers presently vested by general or special law in either the City of Durham or the County of Durham which are necessary to carry out such functions. The charter shall not include any substantive power not held at the time the charter goes into effect by either the City of Durham or the County of Durham. The charter shall vest in the city‑county government all the discretionary powers held at the time the charter goes into effect by either the City of Durham or the County of Durham under the provisions of special Acts or of general laws applying to either municipalities or counties, but the exercise of powers now held only by the City of Durham may be limited to the boundaries of special districts hereinafter provided for if the Charter Commission shall find that such powers are required primarily for the health, safety and welfare of persons and property in congested or rapidly‑growing urban areas or communities.
(2)	The city‑county government shall be deemed a "city" or "town" or "municipality" under the provisions of all general laws granting powers to cities, towns and municipalities in North Carolina. The exercise of all or part of such powers may be limited to the boundaries of districts hereinafter provided for if the Charter Commission shall find that all or any part of such powers are required primarily for the health, safety and welfare of persons and property in congested or rapidly‑growing urban areas or communities. If the creation of a unified city‑county government conflicts with existing general and special laws applying to the City of Durham so that the powers of the city‑county government are not clearly identified, provisions in the charter amending such general and special laws are expressly authorized so long as such provisions resolve such conflicts in a manner which is consistent with the intent of this Act, are not inconsistent with the provisions of the North Carolina Constitution, and are not inconsistent with the substantive provisions of general laws defining the responsibilities of municipalities.
(3)	The charter shall make the city‑county government responsible for all functions vested in counties by general laws, and for all responsibilities vested in the County of Durham by special Act of the General Assembly and not inconsistent with the purpose of a unified city‑county government. The city‑county government shall be deemed a "county" under the provisions of all general laws granting powers to counties or fixing responsibilities for the performance of county functions. If the creation of a unified city‑county government conflicts with existing general or special laws applying to the County of Durham so that the powers of the city‑county government are not clearly identified, provisions in the charter amending such general or special laws and expressly authorized so long as such provisions resolve such conflicts in a manner which is consistent with the intent of this Act, are not inconsistent with the provisions of the North Carolina Constitution, and are not inconsistent with the substantive provisions of general laws defining the responsibilities of counties.
(4)	The purpose of a charter to be submitted to the voters of Durham County under the provisions of this Section is to provide a unified government for Durham County. The General Assembly expressly recognizes that a unified city‑county government is a new approach to the administration of governmental functions at the city and county level and that the drafting of a charter may raise many procedural questions as to the powers and responsibilities of a city‑county government. Charter provisions amending general and special laws applying to the City of Durham and the County of Durham found necessary to accurately define the powers and responsibilities of a unified city‑county government are expressly authorized, so long as such provisions are in accordance with the provisions of the North Carolina Constitution and are not inconsistent with the substantive provisions of general laws defining the responsibilities of cities and counties in North Carolina, and are not inconsistent with the substantive provisions of general and special laws defining the responsibilities of the City of Durham and the County of Durham.
C. Creation of Special Districts.
(1)	The charter may provide for the creation of special districts by the city‑county governing board in any part of the county so long as such districts embrace an area less than the entire county. The charter may provide for the performance within such districts of governmental functions which are not provided on a county‑wide basis so long as such functions are paid for only by taxes levied in or revenues accruing to such districts.
(2)	The charter may provide for the creation of such districts by the city‑county governing board either on the basis of a petition signed by a specific proportion of the property owners in the district or on the basis of an election within the proposed district or on the basis of a finding by the city‑county governing board that creation of the district is necessary for the health, safety and welfare of the residents of the district. The charter may provide either (1) that a separate governing board be elected in each such district with the power to levy taxes and administer functions and services made the responsibility of the district, or (2) that the city-county governing board administer all functions and services made the responsibility of the district and levy taxes for the support of such functions and services within limits fixed in the charter and specifically approved by a vote of the people resident in each such district at the time the charter is adopted or at the time the district is created. In fixing limits on ad valorem property tax rates which may be levied by the city‑county governing board for the support of district functions and services, the charter shall not permit the city‑county governing board to levy a rate in excess of two dollars ($2.00) per one hundred dollars ($100.00) valuation.
(3)	The charter shall make provisions for the organization and administration of such districts to the end that such districts shall have the power and authority necessary to perform the governmental functions and services to be provided in such districts. Charter provisions providing the procedure for the creation of such districts, setting forth the powers and functions of such districts, and providing for the administration of district functions and services are expressly authorized so long as such provisions are not contrary to the provisions of the North Carolina Constitution, and do not grant such districts substantive powers or permit the city‑county governing board to exercise in such districts substantive powers greater than the substantive powers held by either the City of Durham or the County of Durham at the time the charter goes into effect. The charter shall provide for the alteration or extension of the boundaries of such districts in any manner provided by general or special law at the time the charter goes into effect for the extension of the boundaries of special districts or municipalities in the State of North Carolina.
D. Financing City‑County Government.
(1)	The charter shall provide for the financing of the city‑county government in either one of two ways. It may make the city‑county government subject to general legislation governing the financing of counties, and of any special legislation governing the financing of Durham County, and upon the adoption of such a provision, taxes levied for the support of functions formerly performed by the City of Durham and taken over by the city‑county government on a county‑wide basis shall be for a special purpose and shall be a necessary expense for the city‑county government. In the alternative the charter may provide that general and special legislation governing the financing of Durham County at the time the charter is adopted shall apply to the financing by the city‑county government of functions of government the responsibility for which is vested in Durham County by general and special legislation at the time the charter is adopted, while general and special legislation governing the financing of the City of Durham at the time the charter is adopted shall apply to the financing by the city‑county government of functions of government the responsibility for which is vested in the City of Durham at the time the charter is adopted. It is the intent of this Act that effective procedures be established for the financing of a unified city‑county government within the general policies set forth for the financing of city and county governments in North Carolina by general legislation concerning budget‑making, fiscal control, the incurrence of debt and other financial procedures, and charter provisions amending such general laws or special legislation on such procedures applying to either the City of Durham or the County of Durham which are found necessary to more accurately set forth the procedures governing the financing of the city‑county government and to eliminate apparent procedural conflicts with general and special legislation applying to the city and the county are expressly authorized, so long as they are not inconsistent with the provisions of the North Carolina Constitution.
(2)	The charter shall provide for the assumption by the city‑county government of responsibility for all obligations and debts which are presently the responsibility of the City of Durham and the County of Durham. If in the charter a special district is created to include the present boundaries of the City of Durham, the charter shall make the property owners within that district responsible for that part of the outstanding debt or other obligations of the City of Durham which was incurred to provide facilities which are to be used solely for the benefit of, or provision of services to, residents of such district.
(3)	The charter may authorize special districts to contract debt, subject to the approval of the city‑county governing board, in accordance with procedures now applicable to the City of Durham by general or special Act. Where the creation of special districts creates procedural conflicts with such general or special legislation, charter amendments to set forth more accurately the procedures to be followed in incurrence of debt by such districts are specifically authorized, so long as such procedures are consistent with the provisions of the North Carolina Constitution and are consistent with the substantive provisions of such general and special legislation.
(4)	The charter shall specifically set forth the power of the city‑county governing board, and the power of special districts, to levy taxes and raise revenues for all functions of government to be performed by such city‑county government or such special districts. The charter may give the city‑county government all powers vested in the City of Durham by general or special Act at the time the charter is adopted to assess the cost of local improvements such as streets, drainage facilities, and water and sewer lines against abutting property owners, or it may limit the exercise of such powers to the boundaries of special districts if the Commission determines that such improvements are necessary for the health, safety and welfare of the residents of such districts alone. The power of the city‑county government to levy taxes on real and personal property shall not exceed the total powers vested in the City of Durham and the County of Durham at the time the charter is adopted.
(5)	With respect to all general and special legislation providing for a distribution ‑of State revenues to counties, the city‑county government shall be deemed to be a "county". With respect to distributions of revenue now made to municipalities under the provisions of G. S. 105‑213 (intangibles tax) and G. S. 18‑81 (beer and wine tax), special districts created under the provisions of the charter shall be deemed to be "municipalities" or "cities and towns". With respect to distributions of revenues now made to municipalities under the provisions of G. S. 105‑116 and 120, the city-county government shall be deemed to be a "municipality". With respect to distributions of revenue now made to municipalities under the provisions of G. S. 136‑41.2, the city‑county government shall be deemed to be a "municipality" if the charter vests responsibility in the city‑county government for the construction, reconstruction and maintenance of all streets and highways in the county which, under the provisions of Chapter 136 of the General Statutes, are not a part of the State primary highway system or of the State secondary road system within municipalities. If responsibility for the construction, reconstruction and maintenance of non‑State system streets and highways within the City of Durham at the time the charter is adopted is vested in a special district, then such special district shall be a "municipality" within the meaning of G. S. 136‑41.2. With respect to the power of local political subdivisions to levy and collect privilege license taxes, the city‑county government shall be deemed to be a "municipality" or "city or town" within the meaning of G. S. 160‑36 and Article II of Chapter 105.
E. Transition Provisions.
The charter shall fix the effective date on which the new unified city-county government shall go into effect, and shall provide for all transitional steps necessary to transfer all responsibilities, property, revenues and obligations of the present City of Durham and the present County of Durham to the new unified city‑county government and to any district government established under such government.
Sec. 8. Approval of the Plan.
(a)	When the Durham City‑County Charter Commission has completed its study and has prepared its recommendations in the form of either a written plan or a new charter, the Commission shall hold one or more public hearings on its recommended course of action. The notice of public hearings shall (1) fix the date, hour and place of the public hearing or hearings; (2) state the purpose of the hearing and state that the text of the plan or charter will be available at the office of the municipal clerk and at the office of the county manager at least 14 days prior to the date of the public hearing. Such notice shall be given by publication in a newspaper having general circulation in Durham County for at least two successive weeks prior to the date of the first hearing.
(b)	Action prior to hearing. At least 14 days before the date of the public hearing, the City‑County Charter Commission shall deposit the full text of its proposed plan or charter with the municipal clerk of the City of Durham and with the County Manager of the County of Durham and such plan or charter shall be available to the public at such office. In addition the City‑County Charter Commission shall have authority to publish the full plan or charter, or a summary of such plan or charter, for such public distribution as it deems it desirable.
(c)	At the public hearings all persons resident or owning property within Durham County shall be given an opportunity to be heard.
(d)	Following the public hearing, the City‑County Charter Commission shall make whatever changes in the plan or charter that it deems desirable, and shall then forward the plan or charter to the Durham County Board of Elections. Upon receipt of the plan or charter, the Durham County Board of Elections shall fix the date for the voters of the County of Durham to vote for or against the proposed plan or charter. The election may be held on the general election day in November of 1960, or on any other date fixed by the Durham County Board of Elections so long as such election date does not fall within 20 days before or after the general election date of November, 1960 and so long as such election is held prior to February 1, 1961. The election shall be held in accordance with the laws governing general elections in Durham County, and the expenses of such election shall be paid one half by the City of Durham and one half by the County of Durham. The form of the ballot shall be substantially as follows:
[ ]	For Plan (Charter) proposed by Durham City‑County Charter Commission
[ ]	Against Plan (Charter) proposed by Durham City‑County Charter Commission.
Sec. 9. All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 10. Effective Date of Plan or Charter. If the plan or charter is approved by a majority of the voters of the County of Durham voting in the election, then such plan or charter shall be in full force and effect from and after July 1, 1961, and the plan or charter shall call for the changes in governmental structure and organization to go into effect not later than July 1, 1962.
In the General Assembly read three times and ratified, this the 2nd day of June, 1959.