Raleigh OKs $1.26 billion budget with tax hike the city warned was coming

Raleigh leaders approved a $1.26 billion budget Monday with a 10% increase in the city’s property tax rate.

“We have tackled a lot in this budget,” Mayor Mary-Ann Baldwin said after the City Council’s 8-0 vote.

“The only increase was the voter-approved increase for the parks bond,” Baldwin said. “And I really commend our team putting that together (for) being sensitive to not adding additional taxes but addressing the issues that are important to us: public safety, parks, affordable housing, transit. There is a lot there.”

The city had previously said last fall’s $275 million bond, Raleigh’s biggest parks and greenways bond, would raise taxes 3 to 4 cents per $100 of assessed property value and cost the average homeowner about $100 more a year.

Some new City Council members said they didn’t anticipate voting on the budget Monday and expressed their frustration with the process.

“I didn’t know today was the day,” said Council member Christina Jones.

“There has been a little bit of frustration on my end on just trying to get all of those (questions answered),” Jones said. “For me, it feels kind of rushed. I know it’s probably not, but being a first- time councilor and being in this position for the first time, I didn’t realize the process.”

The council should discuss how to improve the process next year, said member Megan Patton.

How much are taxes going up?

The 4 cent increase approved Monday raises the city property tax rate to 43.3 cents per $100 valuation.

Wake County’s $1.87 billion budget approved last week includes a 3.75 cent property tax rate increase.

Together, the tax increases will cost the owner of a $350,000 home in Raleigh $131 more in county property tax and $140 more in city taxes each year. The total tax bill will be $3,814.50.

Raleigh’s budget also includes a 4% rate increase in the base water charges, a 1.5% increase in the stormwater charges and a $2.10 fee increase per month for garbage collection.

Do city employees get raises?

Yes. The city has nearly 4,000 employees. The budget includes a 5% merit pay increase for full-time hourly workers and a 3.5% merit raise for full-time salary employees. Some part-timers will see a 1% merit increase.

Raleigh’s lowest-paid city employees will now make a minimum of $40,860.

The city also will contribute 3% into employee retirement funds regardless of employee matching.

How much did the police department get?

The budget includes a $6.5 million increase for the Raleigh Police Department, for a total of $130.9 million.

The department will add three social workers and one social worker supervisor to its Addressing Crises through Outreach, Referrals, Networking and Service (ACORNS) program.

Several members of Refund Raleigh, an organization seeking to end “police violence and economic exploitation,” spoke during the city’s public hearing on the budget.

“I want to believe you are trying to do your best,” said Angaza Laughinghouse. “But when I look at this city budget and I see over the last three years you’ve increased the housing and neighborhood department by just $2 million but the police budget in the past three years has gone up $21 million, it makes me question whether or not you’re really trying or just talking.”

Many of those community members asked that the city take the ACORNS unit out of the police department, like similar programs in Denver and Durham.

Mayor Pro Tem Corey Branch asked the city manager to review what it would take to do that and to report back later this year.

More money for housing?

A penny of the city property tax rate generates $7.9 million, and one penny each is currently dedicated to affordable housing, park maintenance and street resurfacing.

The city will also spend another $11.8 million in housing assistance through the 2020 housing bond.

The penny dedicated to housing provides gap financing for developers seeking tax credits to build affordable housing. Council member Jane Harrison asked the city manager and staff to study how that money could be doubled in next year’s budget.

“One of the issues is we need enough projects in the pipeline to use the additional funds.” she said.

The budget estimates the city will be able to help build 450 affordable rental units, compared to 614 this year.

Raleigh has a goal of helping build 570 affordable housing units each year, and the city needs to trend upward, Harrison said.

What else is in the budget?

• GoRaleigh buses will remain fare free for the next year.

• The Raleigh Fire Department received $1.25 million to “meet demand as a direct response to growth” inside city limits and within the city’s extraterritorial jurisdictions. Fire officials warned city leaders earlier this year the department couldn’t maintain its level of service as the city grew east. Money was included to provide Wi-Fi to all the city’s fire stations.

• $80 million for bus rapid transit projects including implementation of the Southern Corridor.
  
  

• Wifi upgrades for over 50 community centers.

• $189.3 million for Raleigh Water for plant and pump station maintenance, interceptors and other rehabilitation.

Where can I read the budget?

You can find the budget and the presentation to the City Council at budget.raleighnc.gov.