Raleigh approves $1.43 billion budget, with higher city tax bills for many
Raleigh leaders approved a $1.43 billion budget Monday that raises city workers’ pay, brings back bus fares, and increases many homeowners’ tax bills.
“We’ve done a lot of work in trying to move things forward,” City Council member Corey Branch said. “I think this budget probably accomplishes a lot There’s still ... more work to be done. But we still have a plan. We have a road map to work on things.”
The budget was approved 5 to 2 with Council members Mary Black and Christina Jones voting against it. Mayor Pro Tem Jonathan Melton was excused and absent from the meeting.
Budget at a glance
The total amount: The approved $1.43 billion budget is 11.8% higher than this year’s adopted budget.
The property tax rate: The new tax rate of 35.5 cents per $100 of assessed property value is lower than the current rate of 43.4 cents per $100, but many residents will still see higher tax bills. The new rate is 3.8 cents higher than the revenue-neutral rate, or the tax rate needed to generate the same amount of revenue as before the 2024 Wake County revaluation.
Before the revaluation, the owner of a median-priced home in Raleigh ($257,730) paid $1,115 in city property taxes.
Now, the median home value in Raleigh is $391,705, and the homeowner will pay $1,391 in city property taxes. That’s an increase of $276, or nearly 25%.
Property owners in the city also pay a county tax.
Money from Raleigh’s tax-rate increased will help pay for deferred maintenance and implementing the city’s future pay and classification study.
The budget goes into effect July 1.
Some Raleigh police officers, firefighters and 911 call takers will now get a 10% pay increase, short of the 15% that some, including the Raleigh Police Protective Association, says the city needed to retain employees.
Community response
Much of the conversation Monday was about the city’s decision to not fully fund an alternative response program.
The budget includes:
- $800,000 to replace federal funding in the police unit that focuses on mental health, substance use and homelessness called Addressing Crises through Outreach, Referrals, Networking and Service or ACORNS.
- $380,000 to hire three clinicians to answer 911 calls from 9 a.m. to 5 p.m. five days a week and training for all Emergency Communications Center staff.
- $205,000 to hire a support team to help connect people with housing services and resources to “holistically serve the community.”
Funding was not included for a community response team that would send unarmed mental health workers or social workers to non-violent behavioral health 911 calls. The city said it had to coordinate with Wake County to launch this program.
But this met criticism from several advocates including people who participated in the city’s lengthy community engagement process that specifically called for a community response team, like the HEART program in Durham.
“They’re feeling like there’s a strong lack of trust,” Black said. “And that if this process takes place, the way it’s happening, and how it’s going, it’s going to be ineffective, and people aren’t going to care about it.”
Michele Mallette, chief of staff in the city manager’s office, said the city and county are talking, and there will be an update later this year.
Changes from proposed budget
The budget approved Monday changed only slightly from what staff had proposed to the council earlier this year.
▪ At the request of Council member Jane Harrison, the City Council lowered the proposed tax rate in the Hillsborough Municipal Service District from what property owners there had requested. The district, which provides clean-up and advocacy services for the Hillsborough Street corridor, had asked for a property tax rate of 15 cents per $100, three cents higher than revenue neutral. City leaders lowered it to 13 cents per $100, a smaller property tax increase.
“And I do want to put it out there that we do have a significant tax increase overall,” Harrison said. “And so I have some concerns about raising, by another three pennies, a particular area of town that is home to a lot of students.”
That change was approved unanimously.
▪ Council member Christina Jones made a motion to add fares to the R-Line bus route that circulates downtown. The route was originally added to help get visitors to the Raleigh Convention Center to various parts of town. The city shut it down in 2021 during the COVID-19 pandemic and recently brought it back.
The new budget included bringing back fares for the city’s buses, except for the R-Line, which has never had fares.
“I don’t know that that feels equitable,” Jones said. “That one area of town gets fare free when the rest of the bus routes are charged.”
That change was approved unanimously.
Mayor’s last budget
Mayor Mary-Ann Baldwin is not seeking a third term as mayor, making this her last city budget.
“We know this is your last budget with us, so we also wanted to say thank you to you for your leadership,” said Sadia Sattar, the city’s budget and management services director. “We appreciate it.”
“Yeah, 15 budgets,” Baldwin said laughing, referencing her combined years as mayor and past terms as a council member. “I’m good now.”
This story was originally published June 10, 2024 at 6:02 PM.
