Local Politics

Raleigh budget proposal includes no property tax increase

Posted May 18, 2010

— Raleigh's property tax rate would remain steady in the coming year under a budget proposed Tuesday by City Manager Russell Allen.

Allen's $620.3 million spending plan erases a projected $7.5 million deficit for the 2010-11 fiscal year, which starts in July.

Under the proposal, 24 vacant positions will be eliminated. Also, city workers wouldn't receive a cost-of-living raise during the coming year, and they also would pay more for dependent health insurance coverage.

Property taxes within the city are projected to generate $186.7 million in the coming year, up less than 1 percent from the current tax base of $185.8 million, officials said. Sales tax revenue is expected to increase almost 4 percent, from $61.1 million to $63.4 million, but will remain well below pre-recession levels, they said.

Other moves Allen uses to balance his budget include borrowing $3 million from the city's capital improvements fund, delaying the purchase of two fire engines and 46 replacement police cars and cutting back on maintenance and travel.

The proposal also includes a $5 increase to annual motor vehicle taxes to generate more money for Capital Area Transit.


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  • odiesnitch May 19, 2010


    Suasponte did a pretty good job answering your question. I would like to expand on his/her answer just a bit. First; Raleigh quit calling it a "cost of living" raise years ago. They apparently didn't feel the need to keep up with the actual cost of living. It is now known as a range adjustment, which is not tied to the CPI at all. The 1/2% increase will not offset the increase in dependent health insurance. There is no range adjustment. Regardless of what it is called, it adds up to a loss for city employees at or nearing the top of the pay scale. And this is on the heels of the city doing it's own pay study which indicated members of my department are as much as 18% below the median pay for comparable sized cities.

  • Suasponte May 18, 2010


    Raleigh employees get TWO raises each year. A cost of living AND a merit raise. The COL goes to everyone. It is the lesser of the two and the one employees are not receiving. As I noted below, more slight of hand by Meeker and Allen.

  • Suasponte May 18, 2010

    For those that say "just pay or move", I believe the point people are making is that Meeker and Allen claim they are not raising taxes, which is true in the literal sense. They are failing to mention that they are significantly raising and adding "user fees" to most services that should be paid under the tax base. If you need more money for the buses, raise the bus fee. I nor my car ride the bus. More and more "services" are becoming fee based. Out taxes should be going down.

  • YouAgain May 18, 2010

    No across the board raise? Can you explain that for me please after I saw a merit raise in there and a 1/2% raise for employees that are maxed out

  • SubwayScoundrel May 18, 2010

    Living in Raleigh is not free and costs do go up. If you complaining about $6, them please move away. I also wonder if the people who are complaining even live in Raleigh.

    You should be saying "I live in a great city and thank you city leaders for this"

    Otherwise, you are just a big whinner with no other place to go to complain than GOLO. Now that is a sad life.

  • odiesnitch May 18, 2010

    No across the board raise and increased dependent health insurance costs. And they say "it pays to be a long term employee." It's more like, "you pay to be a long term employee."

  • jahausa May 18, 2010

    If you waste the time to complain about $5, you should have to pay double.

  • Suasponte May 18, 2010

    Looks like you are raising my taxes Mr Allen. Call it what you will. Don't forget that water etc. rates are also going up.

  • cowboyinfv May 18, 2010

    Then the truth is, TAXES ARE GOING UP. If we pay more on Motor Vehicle Taxes then yes we have a rise in some sort of Wake County Tax.

  • Weaker Pelosi May 18, 2010

    Vehicle owners are not going to use the transit, but they are expected to fund it? Five dollars a year isn't much but still.