RALEIGH -- In the final budget talks of his 10-year tenure, Mayor Charles Meeker led brisk negotiations Tuesday that produced accord on a $634.9 million spending plan.
The City Council avoided cuts to popular arts and social programs and agreed to give city employees one-time $500 bonuses instead of costlier pay raises.
But the choices carried a tradeoff. To pay for them, city budget-writers pulled $1.45 million from economic reserves - an accounting move likely to mean tough decisions next year when that money must be replenished.
Meeker, known for running ultra-efficient meetings, was typically concise after the 6-2 vote. Council members Bonner Gaylord and John Odom voted no.
"I understand employees are not going to be happy about some of these changes," Meeker said. "That's where the council has come out on things."
Council members couldn't agree on a way to preserve retirement benefits for thecity's 3,200 employees. One approach would have raised solid waste fees by $1 per month, but it didn't get support from a majority.
"Politics is the art of compromise," said Councilwoman Mary-Ann Baldwin, who sought more relief for city employees. "This was the compromise."
Giving one-time bonuses is not a wise use of economic reserves, said Odom, the council's lone Republican.
"We've got some tough times coming up," Odom said. "Next year's budget is going to be even worse. We're putting off the pain."
The city will maintain current funding for arts and human services by pulling $453,000 from an account used for downtown way-finding signs that help visitors get around.
City Manager Russell Allen did not call for a property tax increase. However, customers will see their sewer rates go up by $3.83 on an average monthly bill.
Raleigh officials had to address a $12 million budget gap caused by lingering effects of the recession, said Allen, calling it the most difficult budget cycle of his 30-year career.
"We did the balancing act the best we could amongst eight people trying to balance it their own way," Councilman Russ Stephenson said.
The vote had special meaning for Meeker, who will leave office in December at the end of his fifth term. Seven other council members are preparing to defend their seats in the Oct. 11 election.
