Proposed Raleigh budget avoids tax increase, cuts July 4th fireworks due to COVID-19
Raleigh City Manager Ruffin Hall recommended a city budget Tuesday with no tax increase and no cuts to city staff.
Balancing a $1.01 billion budget during the coronavirus pandemic has been difficult, he said, but the city has tried to minimize the sacrifices for residents.
“I am really proud of the work of all of our employees in responding to this entire crisis,” Hall said in an interview with The News & Observer.
“I have seen some fabulous examples of creativity, of innovation, of commitment, of personal sacrifice,” he said. “We have even gone through some of our own personal loss and sorrow. And the organization has really stepped up and remained committed to providing our core services to our citizens.“
The proposed budget is 2.2% less than the current year’s adopted budget and calls for a revenue neutral tax rate of 35.52 cents per $100 of assessed property value. The owner of a $300,000 house would pay $1,065.60 in city property tax.
Hall proposed no water or sewer rate increases but did recommend an additional $2 per month charge on recycling fees.
The budget includes about $3.6 million in savings through a city-wide hiring freeze for non-essential positions, and $2.8 million in other department savings like putting off software updates and reducing training and travel. The city would postpone adding seven positions related to a successful 2014 parks and recreation bond.
The budget recommends canceling the Fourth of July fireworks celebration at the N.C. State Fairgrounds to eliminate the large crowd it draws, closing the Moore Square Visitor Center on Mondays and cutting the city’s tackle football program.
It recommends delaying some construction projects, including the city’s planned civic campus off of Nash Square in downtown Raleigh and some transit projects pitched during the 2017 transit bond. Two projects specifically mentioned for delays in the proposed budget include widening Leesville Road from Westgate Road to O’Neal Road and Peace Street Streetscape.
The proposed budget includes a 2% base pay increase for all employees but only if the city meets its financial goals.
More than $6 million is included for affordable housing in the budget and funds are also included for a new Office of Equity and Inclusion using staff already in the city’s Housing and Neighborhoods Department.
Fire and Police
Before COVID-19 struck, city leaders asked how much it would cost to add staff in the police and fire departments. Hall said adding 48 positions would require the equivalent of a 0.69 cent per $100 tax increase.
“As reported to council in February, there are great needs in both departments in the areas of staffing, training and operational support,” according to the budget.
“Given the changes in our economy, the proposed budge does not include this proposal,” the budget states.
A virtual public hearing for the city’s budget is set for June 2. The complete budget proposal can be seen on the city’s website at www.raleighnc.gov.
Wake County Manager David Ellis unveiled his recommended budget Monday. It also didn’t propose a proposed property tax increase.
This story was originally published May 19, 2020 at 3:49 PM.
