At Tuesday’s Raleigh City Council meeting, city manager Marchell Adams-David presented her 2024-25 $1.43 billion budget proposal, a 12 percent increase over the last fiscal year.
Adams-David emphasized that the growth in city expenditures “continues to outpace the growth in revenues.” Sales revenues, she noted, are leveling off following post-pandemic growth and demand for city services are soaring as services become more costly to provide.
After county property revaluations this year increased home values in Raleigh by 52 percent on average, the city budget will actually reduce the city’s property tax rate from 43.3 cents per every $100 of value to 35.5 cents. But homeowners will still be paying more: the revenue neutral rate is 31.7 cents per $100 in value. On a home worth $391,705, Raleigh’s new median home value, a homeowner can expect to pay an annual tax bill of $1,390.
The budget also increases water rates in the city by $1.58 per month and solid waste services by $1.70 per month. City bus fares could return this summer as well, after they were eliminated during the pandemic years.
Part of the new revenues will pay for salary increases for city workers. The budget makes market rate pay adjustments of five percent for public safety workers including firefighters, police officers, and 911 operators; six percent increases for maintenance and operations specialists and nine percent increases for supervisors in the city’s Solid Waste Services, Transportation, Water, and Parks, Recreation, and Cultural Resources Departments.
All other city workers will receive two percent raises. The budget will also make merit adjustments for public safety officers and raise rates for part-time and starting workers by one percent.
Other budget highlights include:
– an allocation of $800,000 to the city’s police budget for the city’s ACORNS unit, which sends social workers to respond to some 911 calls
– a dedicated one penny of the tax rate to affordable housing initiatives, resulting in an increase of $3.5 million, including $500,000 to assist people in danger of losing their homes
– investment in Dix Park, including new bond-funded positions and $8.66 million in spending from the city’s capital improvement programs as the Gipson Play Plaza opens this year and the city takes over three state-owned buildings
– additional positions for oversight of downtown parks including Moore Square, Nash Square, and Latta University Historic Park
The city will hold a public hearing on the proposed budget on June 4.
Follow Editor-in-Chief Jane Porter on X or send an email to jporter@indyweek.com. Comment on this story at backtalk@indyweek.com.
