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Raleigh proposes $1.77 billion FY2027 budget, seeks 1.7¢ tax increase to shore up public safety and housing investments
Summary
City staff unveiled a $1.765 billion FY2027 operating and capital budget that includes a proposed 1.7¢ property tax increase (about $67 annually for a median homeowner), staffing additions for police and fire, and a plan to place housing and transportation bonds on the November ballot.
Raleigh city officials on Tuesday presented a proposed FY2027 operating budget and five-year capital improvement program totaling $1,765,166,204 and recommended a 1.7¢ increase in the property tax rate to close a projected budget gap and fund targeted investments.
Budget director Sadia Sitar told the council the proposal ‘‘includes the resources necessary to maintain our core services while also committing to long term investments in key priority areas such as public safety, transportation, and affordable housing.’’ The package funds the first year of a staffing plan that would add 23 police officers and 12 firefighters and continues earlier investments in employee compensation.
City staff said the FY2027 proposal began with a $13.1 million shortfall and relied primarily on internal savings, changes to benefit timing, and a mix of revenue adjustments to close the gap before recommending a modest tax-rate increase. The presentation itemized program additions including $11.6 million in pay-go funding for affordable housing, $12 million for street resurfacing and $2 million to support a two-hour free downtown parking pilot.
Staff described the tax increase as targeted: ‘‘Of the 1.7¢ increase, 1.1¢ or 62% goes towards public safety,’’ Sitar said, adding the increase equates to about $67 annually for the median Raleigh household. The budget also includes fee increases for water, stormwater and solid waste that staff estimated would raise a median homeowner’s bill by roughly $122 annually.
Councilors asked staff for follow-up materials on bond breakdowns and neighborhood impacts. Planning and finance staff said the council will receive detailed budget notes and hold a series of work sessions and public hearings before final adoption. The council set Monday work sessions beginning June 1 and a public budget hearing for June 2.
What happens next: the council will consider the budget through June and is scheduled to review specific budget notes and hold public hearings before adopting a final FY2027 budget later this summer.
