Raleigh property owners could see tax increase to pay for housing, parks upkeep
New City Manager Marchell Adams-David recommended a budget Tuesday that would raise Raleigh’s property tax rate to help build affordable housing and maintain parks.
The $1.07 billion spending plan for the fiscal year beginning July 1 also shows the city recovering from COVID-19’s effects on the current budget. It adds 40 new positions to city government and gives city workers merit pay increases.
“The proposed budget is a clear reflection of our organizational values, our community priorities as well as some of the strategic initiatives of the city council,” Adams-David said.
The proposed property tax rate is 37.30 cents per $100 of assessed property value. That includes a penny increase on the tax rate for critical park needs and an expected 0.78 cent increase to begin paying for the city’s 2020 affordable housing bond.
The 1 cent would cover $38 million in park maintenance over five years. The first improvements would be made at Laurel Hills Park, Pullen Park and the Pope House Museum, the only Black house museum in North Carolina.
Raleigh has over 10,000 acres of park and 118 miles of greenway trails.
As for affordable housing, city voters overwhelmingly approved an $80 million bond last year. That money will help developers build affordable housing; buy land for future affordable housing, primarily around transit lines; and repair aging homes.
Proposed budget details
Total operating budget: $1.07 billion. That’s a nearly $60 million or 5.8% increase.
Proposed tax rate: 37.30 cents per $100 valuation, or a 1.78 cent increase.
Impact on homeowners: The owner of a $250,000 home would pay $932.50 in city property tax, a $44.50 increase. The owner of a $350,000 home would pay $1,305.50, a $62.30 increase.
Fee increases: 1.33% for the average water and sewer residential customer. $1 per month increase for solid waste services to introduce yard waste carts. That makes the monthly fee $20.05. There are no changes to monthly parking rates.
City workers: 2% to 4% merit increases. The city is not proposing increases in monthly health and dental premiums.
New positions: The proposed budget adds 40 new positions. The city has approximately 4,300 staff members.
- Four positions to fill new offices of Community Engagement and Strategy and Innovation.
- Seven positions in the Police Department to create a new greenway safety program. (Nearly $1 million was also budgeted for greenway safety improvements like increased lighting.)
- A dozen positions for Transportation and Engineering Services to support Stormwater operations.
- Seven positions to help expand services and programming related to the 2014 parks and recreation bond.
Other budget highlights:
- $10.75 million to resurface streets and repair bridges and sidewalks
- Cuts made to the current budget due to COVID-19 have been mostly restored including the city’s July 4 fireworks display. However, the city is continuing a hiring freeze for some positions.
- $500,000 for a Minority, Woman and Business Enterprise disparity study to identify contracting disparities.
- Raleigh buses will remain free through at least July 1, 2022.
Public hearing: A public hearing on the budget is set for 7 p.m. June 1. The budget must be adopted by July 1. The complete budget proposal can be seen on the City of Raleigh’s website at www.raleighnc.gov.
This story was originally published May 18, 2021 at 5:03 PM.
